Welcome to Music Organization Worldwide‘s weekly round-up– where we ensure you captured the 5 most significant stories to strike our headings over the previous 7 days. MBW’s round-up is supported by Centtrip, which assists over 500 of the world’s very popular artists increase their earnings and lower their touring expenses.
Music streaming giant Spotify lastly increased the cost of its flagship Premium membership in the United States today, by $1, to $10.99
The business revealed the brand-new prices on Monday early morning (July 24), likewise revealing boosts in 52 other markets, consisting of the UK, Canada, Brazil, Spain, France, Australia, Indonesia, Israel, Sweden, and Mexico.
The statement showed up a day prior to AREA released its Q2 results, in which it reported that its worldwide Premium Customer base grew to 220 million paying users in the quarter (ended June 30), up 17% year-on-year.
Universal Music Group likewise released its Q2 results today, reporting earnings of EUR EUR2.697 billion (USD $2.93 bn) for the quarter, up 8.8% YoY at continuous currency.
Among the other highlights from UMG’s Q2 was a 13% dive in membership streaming earnings to reach EUR1.068 billion ($ 1.16 bn).
That result, according to UMG, was “driven mostly by the development in worldwide customers in addition to the effect of cost boosts at specific platforms”.
Somewhere else today, Spotify CEO Daniel Ek offered 675,000 Spotify shares worth $100 million, while Reuters reported that United States efficiency rights business BMI remains in restored sale talks.
Here’s what occurred today …
1) UNIVERSAL MUSIC CREATED $2.93 BN IN Q2– ENHANCED BY SALES FROM SUPERSTARS LIKE TAYLOR SWIFT AND KING & & PRINCE
On Tuesday (July 25), the world’s most significant membership music streaming service, Spotify, revealed its Q2 outcomes.
On Wednesday, it was the turn of the world’s biggest music rights business, Universal Music Group, whose monetary outcomes for the 3 months to the end of June and the very first half of the year were released after the close of the Euronext in Amsterdam on Wednesday (July 26).
The heading figure from UMG’s Q2 results: the music business produced earnings of EUR EUR2.697 billion (USD $2.93 bn) throughout the quarter throughout all of its departments (consisting of taped music, publishing and more). That Q2 profits figure was up 8.8% YoY at continuous currency …
2) SPOTIFY IS RAISING ITS RATE IN THE United States AND 52 OTHER MARKETS. JUST HOW MUCH CASH WILL THAT MAKE THE MUSIC MARKET?
As anticipated, on Monday (July 24), Spotify– after 12 long years– lastly revealed a 10% increase in its flagship specific Premium membership cost in the United States, up from USD $9.99 each month to $10.99 each month.
Not just that: Spotify is likewise raising the cost of its other membership strategies in the United States. This includes its Household Strategy, which goes up from $15.99 to $16.99 each month; it’s the 2nd time area has actually upped this specific cost point in the States (the very first remained in 2021), and brings Spotify’s Household Strategy prices in line with that of other services such as Apple Music and YouTube Music
The (much) bigger-picture news?
Spotify isn’t simply increasing its rates in the United States– it’s likewise upping its membership expense (throughout different strategies, consisting of specific Premium) in a massive 52 other markets, consisting of the UK, Canada, Brazil, Spain, France, Australia, Indonesia, Israel, Sweden, and Mexico.
Yet just how much will this brand-new round of cost boosts from Spotify deserve to the business– and to the music rightsholders to whom it pays around 70% of its earnings?
3) BMI ‘IN CONVERSATIONS WITH OUTSIDE CELEBRATIONS’ AFTER SCRAPPING SALE PREPARES IN 2022
Today, Reuters reported that United States efficiency rights business BMI (Broadcast Music Inc.) is “as soon as again checking out choices consisting of a sale”.
The report showed up around a year after BMI ditched prepare for a multi-billion dollar business sale following underwhelming deals.
BMI President & & CEO Mike O’Neill provided a memo to personnel today resolving “press short articles [that] have actually come out today hypothesizing that BMI is thinking about a sale”.
In the memo, acquired by MBW, O’Neill composes that, “Not remarkably, interest in BMI has actually continued because we revealed a year ago that we were no longer thinking about a sale of our business”.
He included: “Ever since, the success of our service design modification and our dedication to purchasing BMI to grow the worth of our affiliates’ music has actually just magnified that outdoors interest …”
4) DANIEL EK OFFERS $100M WORTH OF SPOTIFY SHARES
Spotify CEO Daniel Ek is offering 675,000 Spotify shares worth $100 million. That’s according to an SEC filing that went live on Thursday (July 27).
J.P. Morgan Securities is called in the filing as the broker for the sale.
The filing likewise exposes that these shares are to be offered by D.G.E Investments Limited, an entity indirectly entirely owned by Ek …
5) HAVING ACTUALLY PAID OVER $250M TO ITS MEMBERS TO DATE, BEATSTARS STRIKES TACTICAL COLLABORATION WITH AI MUSIC START-UP LEMONAIDE
BeatStars exposed today that it has actually participated in a tactical alliance with an AI music start-up called Lemonaide, which has actually established an AI-powered plug-in that creates concepts for beats.
BeatStars likewise verified in its newest statement that it has actually now paid over $250 million to its members through its market and publishing services to date (The business struck a collaboration with Sony Music Publishing in 2020) …
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