Major record companies release around 3,900 tracks every day. Their problem? That's a drop in the ocean

 

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Music Business Worldwide: Newsletter

Major record companies release around 3,900 tracks every day. Their problem? That's a drop in the ocean. On paper, last week wasn't a bad one for the three major music companies: Universal Music Group, Sony Music Group, and Warner Music Group. On Tuesday (March 21), global trade body IFPI announced, via its Global Music Report, the official worldwide revenue figures for the recorded music industry in 2022. These reflected double-digit annual growth in two crucial areas: Subscription streaming revenues (+10.3% YoY) and overall streaming revenues (+11.5% YoY). The following day, more good news: Guggenheim Partners announced it was upgrading its stock ranking for both Warner Music Group (WMG) and Spotify (from 'Neutral' to 'Buy'), and its positive sentiment went far beyond just those two companies. A research note from Guggenheim's Michael Morris and team stated: "We believe that the global music industry – including labels, platforms and artists – has the potential for market-leading financial growth for an extended period." Meanwhile, Morgan Wallen, signed to Big Loud but releasing under license to UMG's Mercury/Republic Records, was busy reminding everyone of the power of megastars – and of major label distribution. Wallen's new album, One Thing At A Time, released March 3, sold 501,000 equivalent copies in the States in its first week (calculated via streaming plus sales), and will blast beyond 'million seller' status in the US by the end of this month (per Billboard/Luminate data). So: are the heads of the major music companies happy? A little, sure. For now. But on one particular subject, perhaps more than any other, they remain vocally perturbed: the superabundance of music releases hitting streaming services every 24 hours... (MBW Explains)

MBW Newsletter Sponsors Primary Wave: The Home of Legends. The world's leading independent publisher of iconic music CMS, CRM, Playlists, Royalty Accounting, Analytics: your music business all in one place The next generation label transforming viral moments into long term music careers.  Centtrip: The award-winning account for music payments, royalties, foreign exchange and touring expenses Viberate: Get premium music data analytics at an unbeatable price – $9.90/month! BandLab: Home to 60M creators making and sharing music without limits Voly Music The Bespoke Financial Management Platform for the Music Industry Rights & Royalties Done Right. Drive more revenue with Vistex Music Cloud. Technology + Infrastructure + Methodology ➡️ Execution = Results Want your brand here? Contact Rebecca through this link...   Primary Wave buys artist royalties of Lynyrd Skynyrd drummer and founding member, Bob Burns Primary Wave Music has acquired the artist royalties of Bob Burns, best known as the original drummer and founding member of iconic southern rock band Lynyrd Skynyrd. Described by Primary Wave as a “multi-million-dollar deal”, the acquisition encompasses all recordings from the band’s debut album (Pronounced ‘Lĕh-‘nérd ‘Skin-‘nérd), as well as their sophomore album, Second Helping. The news marks Primary Wave’s latest multi-million deal, after announcing an agreement with singer, songwriter, and producer Stevie Van Zandt at the beginning of February... (MBW) Kakao launched a new virtual K-Pop group called MAVE, and the first single has already generated 20m streams on Spotify Kakao Entertainment, the entertainment division of South Korean internet company Kakao Corp., is doubling down on its metaverse push with the launch of a new four-member virtual K-Pop girl group called MAVE. Kakao launched MAVE in January through its Metaverse Entertainment joint venture with South Korean mobile game developer Netmarble. Metaverse Entertainment was founded in August 2021. Reuters reports that Kakao has invested 12 billion South Korean won (approx. USD $9.2 million) in Metaverse Entertainment... (MBW) Disney closes Metaverse division The Wall Street Journal reports that the Walt Disney Co. has “eliminated” the division where it develops metaverse strategies. Citing people familiar with the situation, the WSJ reports that the closure of the division forms “part of a broader restructuring”. Disney is making 7,000 layoffs across the company as part of a $5.5bn cost-cutting plan...  (MBW)

MBW'S QUOTE OF THE DAY "There is a problem with streaming that we must solve urgently. Platforms must find a fairer way of distribution that helps professional and quality artists [receive] a decent income for their work."   In the following feature, Nando Luaces, founder and CEO of Madrid-based distributor and Latin Music specialist Altafonte, offers an insight into the growth of the Iberian and Latin music industry, what differentiates his company from other players in the market, and why Altafonte still "thinks like a tech startup...." (World Leaders supported by PPL)

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Don't miss: Believe has 'firepower' for 2023 acquisitions. What's it going to buy? On March 15, Believe published its second full-year financial results since becoming a publicly traded entity. Key highlights for Believe, which also owns DIY distributor TuneCore, included annual revenues of €760.8 million in FY 2022. That converts to just above USD $800 million (at average annual exchange rates as per the IRS). That €760.8 million annual revenue figure for 2022 was up by €183.6 million YoY, or 31.8%, which marked an acceleration in growth versus the prior year for Believe. Perhaps the most important change from Believe’s 2021 vs. its 2022? Within the company’s earnings release for FY 2022, Believe reported that it achieved positive free cash flow of €52.0 million. In the prior year, it posted negative annual (-€30.7m) free cash flow. This new free cash flow, according to Believe, has boosted its “firepower for M&A” in the subsequent 12 months. So where can we expect Believe to direct its acquisition strategy in 2023? Its activity in the final few months of 2022 gives us a good indication... (MBW) Don't miss: HYBE to sell $435m stake in SM Entertainment Three of the South Korean music industry's biggest players, HYBE, Kakao Corp and SM Entertainment, were embroiled in a corporate battle for control of the latter company for several weeks. That battle officially came to an end on Friday (March 24) with the news that HYBE is selling its entire stake in SM worth $435 million. As reported by Reuters, HYBE said in a filing on Friday that it plans to offload its entire 15.78% stake in SM for 564 billion South Korea Won (approx $435m)... (MBW)

JOB OF THE WEEK DC9 Nightclub is seeking experienced Talent Buyers in Washington, DC. Must have strong relationships with talent agencies and 2+ years' experience as a talent buyer, booking agent or related position in the music industry... [Click here to find out more]

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