welcome to The music industry around the worldWeekly Recap – where we make sure you’ve caught the five biggest stories that have made headlines in the past seven days. The MBW Roundup is supported by Centtripwhich helps over 500 of the world’s best-selling artists maximize their income and lower their touring costs.
A serious new player in the music industry was launched this week by Larry Jackson, the US-based A&R impresario and former global creative director at Apple.
Jackson’s new company, gamma, has a list of high profile financial backers, including Todd Boehly’s Eldridge Industries, as well as his former employer – Apple – plus A24.
Gamma’s first acquisition was also named this week as a distribution and services company founded by Roy LaManna, Vydia, which has previously worked with artists such as Akon, Kanye West, Mr Eazi and Anuel AA.
Jackson’s gamma also has partnerships with Snoop Dogg and Death Row Records, as well as Rick Ross, Naomi Campbell and The Shade Room.
Also this week, the Recording Industry Association of America (RIAA) released its 2022 year-end report on Thursday, March 9, which tells us that, on a retail basis, U.S. recorded music revenue (money spent on streaming subscriptions, as well as physical and digital music), grew 6.1% year-over-year to $15.9 billion in 2022.
Streaming (including paid subscriptions, ad-supported services, digital and personalized radio, social media platforms, digital fitness apps and others) generated the majority ($13.3 billion) of these annual income.
RIAA data also shows that retail revenues from paid subscription services grew 8% to $10.2 billion in 2022, surpassing the $10 billion per year mark for the first time.
Somewhere else, Spotify revealed on Wednesday (March 8) that as of 2022, its absolute payouts to the music industry approach $40 billion (including recording and publishing royalties).
More, Elijah Seton was named CEO of SoundCloudwhile Shamrock Capital reportedly acquired part of Metro Boomin’s publishing catalog for nearly $70 million.
Here’s what happened this week…
1) LARRY JACKSON’S $1 BILLION GAMMA IS GONE: ELDRIDGE AND APPLE-FUNDED FIRM ACQUIRES VYDIA, HIRES IKE YOUSSEF, BEN COOK
The music industry rumor mill has been bubbling for some time over what’s next for Larry Jackson – the US-based A&R impresario and former global creative director at Apple Muslc.
Now the envelopes have been removed from Jackson’s new project, gamma (lowercase ‘g’).
According to a well-placed MBW source: “Larry raised a billion dollars for this thing. He doesn’t play games…”
2) U.S. RECORDED MUSIC REVENUES FROM PAID SUBSCRIPTIONS EXCEED $10 BILLION A YEAR FOR THE FIRST TIME IN 2022
The US recorded music industry generated US$15.9 billion in 2022.
That’s the headline stat from the Recording Industry Association of America’s (RIAA) 2022 Year-End Report, which, released Thursday, March 9, shows that, on a retail basis, recorded music revenues in US (money spent on streaming subscriptions, as well as physical and digital music), grew 6.1% year-over-year, the seventh consecutive year of market growth.
Streaming (including paid subscriptions, ad-supported services, digital and personalized radio, social media platforms, digital fitness apps and others) generated the lion’s share of this overall revenue.
Streaming grew 7.3% to a record $13.3 billion in revenue and collectively accounts for 84% of total US recorded music revenue, up slightly from 83% in 202..1.
SoundCloud has announced that Eliah Seton has been named General Manager, effective immediately.
Seton succeeds Michael Weissman who joined SoundCloud in 2017, has been CEO since 2021 and is “leaving for a new opportunity,” according to the company.
Seton joined SoundCloud in 2021 as President, overseeing the Creator and Roster operating divisions as well as strategy, mergers and acquisitions, content partnerships, business development, and artist and distribution partnerships.
4) SPOTIFY APPROACHES UNPRECEDENTED $40 BILLION PAYMENT TO THE MUSIC INDUSTRY
Spotify held its second Stream On event in Los Angeles on Wednesday, March 8, to announce new product updates and tools for artists.
The company also updated its annual music royalty report, Loud & Clear, in which it released a wealth of statistics on what artists and rights holders earn from music on the platform.
Spotify claims that “nearly 70%” of every dollar it generates from music “is returned as royalties to rightsholders, who then pay artists and songwriters, based on agreed terms.”
These rights holders include record labels, publishers, independent distributors, performing rights organizations and collecting societies.
The headline stat released by Spotify on Wednesday is that as of 2022, Spotify’s all-time payments to the music industry approach $40 billion (including recording and publishing royalties)…
5) SHAMROCK ACQUIRES PART OF METRO BOOMIN’S PUBLISHING CATALOG FOR NEARLY $70M (REPORT)
Los Angeles-based investment firm Shamrock Capital has acquired part of American record producer, songwriter and DJ Metro Boomin’s existing publishing catalog for nearly $70 million.
The acquisition was first reported by Billboard Tuesday, March 7, citing “sources close to the deal.”
Shamrock is best known for buying master rights to Taylor Swift’s first six studio albums from great machine in November 2020 for over $300 million.
The reported acquisition comes just a month after Shamrock raised more than $600 million in commitments for its third content strategy equity fund. The fundraising exceeded the company’s $500 million goal….
MBW’s Weekly Roundup is supported by Centtrip, which helps over 500 of the world’s best-selling artists maximize revenue and lower touring costs.The music industry around the world
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