MediaNet Blog

RECAP: Music Piracy Costs Hundreds of Millions, SOCAN Releases New APIs, Spotify Gets Millions of DJ Mixes

Posted by Glen Sears, Editorial Content Manager | May 31, 2016 9:38 am | No Comments

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Story of the Week

Music Piracy Costs Europe $190 Million a Year, EU Study Estimates
Music piracy has taken a small but noticeable bite out of potential profits for the recording industry throughout Europe, according to a new study by the European Union Intellectual Property Office. The report places an estimate on lost music sales in 19 EU states as a result of piracy in 2014, and comes up with a total of €170 million ($190 million), or 5.2 percent of all sales.

When broken down, that amounts to €113 million ($126 million) in lost digital sales and €57m ($63.5 million) in lost physical sales, the report finds. That’s the equivalent of 5.2 percent of the sector’s revenues from both physical and digital sales.

Two member states, Germany and the U.K., account for more than half of those losses. Europe’s biggest market, Germany lost €40 million ($44.5 million) in sales due to piracy, while the U.K. lost €49 million ($54.6 million). In France, where physical sales make up two-thirds of music sales, about €26.4 ($29 million) remained on the floor. And in the land of Spotify — Sweden — €8.9 million of the €9.1 million ($10 million) total lost was in digital formats.

Read the full story on Billboard

Top Music News Stories

SOCAN Launches APIs to Drive Music Royalties Innovation. The first two APIs announced today are “Song Registration” and “Concert Notification,” which enable writers to use new workflow apps and software to register their songs more accurately with their music publishers, labels, digital services, and SOCAN.

Spotify Cuts Dubset Deal To Add Millions Of Mixes. The MixBANK deal makes it possible for DJs to upload and legally stream their mixes and single track remixes, and enable Spotify listeners to stream radio shows and other user generated mixes that have not been previously legally available to music fans.

Global Electronic Music Industry, Worth $7.1 Billion Last Year, Sees Growth Slow. While growth in the sector is slowing — up just 3.5 percent year-over-year, the smallest chunk of a 59 percent increase over the past three — the electronic field is echoing the larger trends of the global recorded music industry as reported by the IFPI earlier this year.

David Lowery and Melissa Ferrick’s Lawsuits Against Spotify Get Combined. The suits were essentially the same in purpose and aim, and now Judge Beverly Reid O’Connell of the Central District of California has granted a motion for them to be consolidated.

Pandora Stock Up 32% On Sale Rumors. No specific suitors have been named, but Pandora has said that it is open to the right merger or acquisition — Pandora’s market cap is currently $2.61 billion.

iHeartMedia Wins Court Case Over Stock Shuffle Designed to Deal with Its Massive Debt. As the San Antonio Express-News reports, Judge Cathleen Stryker ruled in favor of the media company, which was brought to court on the transfer of 100 million shares — valued at over $500 million — from Clear Channel Outdoor Holdings to another subsidiary, Broader Media, LLC.

Spotify’s Discover Weekly Logs 40M Listeners, 5B Tracks Streamed. Discover Weekly is also proving good for artists, with 8,000+ artists having added more than half of their listeners in the last month from Discover Weekly alone.

The Two Spotify Charts You Need To See. Rights and associated costs accounted for 83% of Spotify’s 2015 revenue, up from 81% in 2014, and this resulted in a dramatic fall in Spotify’s gross margin per user: down from $4.20 in 2013 to $3.45 in 2015.

Shamrock Capital Advisors Close $250 Million Fund To Invest In Music Publishing, Record Masters, Other Intellectual Property. Shamrock Capital Advisors today announced the final closing of Entertainment IP Fund (EIP), a $250 million fund focused on acquiring or financing entertainment intellectual property rights including music publishing, recorded music masters, tv, film video games and other entertainment content.

Our best wishes for a great week! – MediaNet

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Have questions about how Medianet can help your digital music business? Ask us here. Want a topic or insight published on this blog? Ask us here. Other questions or comments? Let us know!

RECAP: New Streaming Research Drops, Dubset Opens to NMPA Members, Rhapsody Launches VR

Posted by Glen Sears, Editorial Content Manager | May 23, 2016 9:16 am | No Comments

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Story of the Week

New Research Claims Streaming ‘Black Hole’ Beyond Millennials
A new survey of British consumers suggests that people older than 35 may be being “left out in the cold” by music-streaming services. And while there’s a caveat here – the research was commissioned by Electric Jukebox, which is launching a streaming service aimed at exactly that demographic – YouGov’s 2,000-person survey still throws up some talking points.

The study claims that 16% of millennials – defined as 14-34 year-olds in this case – have music-streaming subscriptions, compared to 6% of Generation X consumers (35-55 year-olds) and 3% of Baby Boomers (over-55s). “Our research finds the older you are, the less likely you are to stream music and that if you’re over 35 you’re very unlikely to be a subscriber,” said CEO Rob Lewis.

Read the full story on Music Ally.

Top Music News Stories

Dubset/NMPA Deal Means New Income For Indie Artists, Publishers. Just weeks after groundbreaking deals with Apple Music and SoundCloud, Dubset has extended its MixBANK monetization platform to indie songrwriters and publishers that belong to the National Music Publishers’ Association.

SoundCloud Says Reports of DJ Mixes Being Pulled Are Wrong. Despite a report claiming the platform would be pulling down this type of content frequently in the wake of its deals with Universal Music Group and Sony Music, the company tells Billboard that “the story has no truth to it.”

YouTube Adopting New Tool For Faster, More Accurate Royalty Payments. It looks as though the service will soon be implementing a new data standardization tool which will help artists get clearer information regarding views and payments, as well as providing more accurate and efficient royalty accounting.

Pandora’s Biggest Shareholder Urges Sale of Company. In a cage-rattling letter to Pandora’s board of directors, Keith Meister said that Cortex now owns 9.9 percent and urged the streaming company to curb plans to diversify beyond ad-supported radio and explore a sale.

Is Terrestrial Radio Facing Its Judgment Day With Fierce Digital Competition? During a panel discussion at the Worldwide Radio Summit in Los Angeles on April 15, the moderator asked veteran programmer Jim McGuinn, formerly of modern-rock station WPLY (Y100) Philadelphia, why FM was no longer relevant to listeners in their 20s.

Rhapsody/Napster Launches First Virtual Reality Music App. At launch, Rhapsody VR features live performances of Talib Kweli performing his classic “Get By” and Flatbush Zombies performing “Bath Salt” and “Bounce.” There are also performances by The Blind Shake, Low Cut Connie, Sweet Spirit, Eli “Paperboy” Reed and Shannon and The Clams.

Universal Music Appeals Ruling Against VKontakte. Universal was one of the three international majors that filed a lawsuit against VKontake over copyright infringement back in 2014. The others, Sony Music and Warner Music Group, have since signed agreements with the social network.

Our best wishes for a great week! – MediaNet

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RECAP: ASCAP Settles With DOJ, SOCAN Acquires MediaNet, U.K. Announces Safe Harbor Review

Posted by Glen Sears, Editorial Content Manager | May 16, 2016 9:27 am | No Comments

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Story of the Week

ASCAP Pays $1.75 Million To Settle DoJ Investigation
The U.S. Department of Justice announced on Thursday that the American Society of Composers, Authors and Publishers (ASCAP) has agreed to pay $1.75 million to settle allegations that they had engaged in anti-competitive practices in violation of a court order. According to DoJ, ASCAP signed contracts with approximately 150 songwriters and publisher members that made ASCAP the exclusive licensor of their performance rights, despite provisions in a court order prohibiting ASCAP from interfering with its members’ ability to directly license their songs.

As part of the settlement, ASCAP has also promised not to enter into further exclusive contracts and agreed to reform its licensing practices to remove music publishers from overseeing ASCAP’s licensing.

“Settling this matter was the right thing to do for our members,” said ASCAP CEO Elizabeth Matthews in a statement announcing the settlement. “With these issues resolved, we continue our focus on leading the way towards a more efficient, effective and transparent music licensing system and advocating for key reforms to the laws that govern music creator compensation.”

Read the full story on Hypebot.

Top Music News Stories

SOCAN Predicts Dramatic YouTube Revenue Uplift As It Acquires Medianet. Canada-based collection society SOCAN has acquired B2B music tech provider Medianet in a bid to ‘ensure that creators and music publishers, including artists and all relevant rights owners, are properly compensated for their work.’

Medianet, SOCAN, YouTube And The Kobalt Effect. “SOCAN has seized the initiative with the Medianet acquisition, setting out its stall as a rights society that puts tech innovation, effective reporting and accountability at the centre of what it does for its members.” says Mark Mulligan, “It has also positioned itself as a contender for global successor of the GRD—consider this the first major repercussion of the innovation and transparency agenda that Kobalt set in motion.”

U.K. Government Announces Anti-Piracy Strategy, Safe Harbor Review. Published today, the “Protecting Creativity, Supporting Innovation: IP Enforcement 2020” policy paper sets out its four year strategy “to address the multiple and growing challenges posed by IP infringement and counterfeiting” across multiple creative and retail industries.

$300 Million – $600 Million US IPO Planned For China Based Streaming Music Service. China Music Corp, which is backed by Chinese Internet giant Tencent Holdings and operates Chinese digital music services Kugou and Kuwo, has hired Goldman Sachs and Morgan Stanley to prep a US IPO that could take place later this year, sources are telling the Wall Street Journal.

Facebook Working with WMG on ’Slideshows’ Music Feature. Within the past few weeks, the social network has quietly initiated talks with music labels about licensing a limited amount of songs that users can upload to, say, summer vacation videos or birthday parties, sources said.

Beatport Suspends Auction and Shuts Down Streaming, News and Events Divisions. “Beatport has made a strategic decision to return to its roots, focusing its efforts on its flagship Beatport Store, the leading global source of electronic music for DJs and consumers,” SFX wrote in a statement provided to Billboard.

Irving Azoff Pens An Open Letter To YouTube: ‘The Root Of The Problem Here Is You.’ “You have built a business that works really well for you and for Google, but it doesn’t work well for artists. If you think it is just the labels and publishers who are complaining, you are wrong. The music community is traditionally a very fractured one, but on this we are united.”

Amazon Launches a New Rival for YouTube. Amazon Video Direct, which kicked off Tuesday, shares money with video creators through the method they choose: ads, subscriptions, rentals, or simply by the number of hours streamed to tens of millions of subscribers of Amazon Prime, its two-day shipping service.

Apple Music Set To Receive A Facelift. Although the service has certainly been picking up users, Apple Music has received some complaints about its less-than-stellar interface. It looks like this is about to change, however, with Apple set to give its streaming service a much needed facelift, in hopes of catching up with Spotify.

Our best wishes for a great week! – MediaNet

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Have questions about how Medianet can help your digital music business? Ask us here. Want a topic or insight published on this blog? Ask us here. Other questions or comments? Let us know!

MediaNet Has Been Acquired By SOCAN

Posted by Glen Sears, Editorial Content Manager | May 12, 2016 9:15 am | No Comments

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We are thrilled to announce that, effective Tuesday, May 10, MediaNet has been acquired by SOCAN, Canada’s premier performing rights organization. This is very exciting for us as a company and enables us to develop exciting new technologies that will benefit the entire digital music industry. Today at 9 AM PT a press release was issued announcing the transaction. It can be found here and is also reproduced in its entirety below:


TORONTO and SEATTLE, May 12, 2016 /PRNewswire/ – SOCAN, the member-based organization that represents the performing rights of more than four-million music creators and publishers, has purchased Seattle-based MediaNet. The addition of this pioneer business-to-business music technology provider offers 360-degree music rights administration to SOCAN members.

MediaNet is the creator of powerful music and metadata delivery technologies that work with streaming services, download providers, media search, and other media discovery tools to provide an exhaustive catalog of music, while ensuring that creators and music publishers, including artists and all relevant rights owners, are properly compensated for their work.

The MediaNet acquisition will have immediate benefits for SOCAN members’ digital performances, as the potential for increased matching on radio, TV and in areas such as nightclub performances is substantial. With MediaNet, SOCAN will be able to identify digital performances from around the world in real-time, with access to granular performance data to make better decisions, identify trends and increase revenue for members. This comes with a level of data accuracy and transparency that few, if any, music rights organizations in the world can provide.

With more than 51 million sound recordings in its database, each containing a unique audio identifier, MediaNet will provide SOCAN with authoritative information pertaining to master rights (sound recordings), and will augment already strong matching capabilities for all kinds of performances and reproductions of music on radio, digital, live, satellite, film and TV and other delivery of music to public audiences.

In keeping with SOCAN’s vision to lead the global transformation of music rights, the acquisition and integration of MediaNet’s technology will make SOCAN the leader in accurate matching of music data, one of the most significant challenges facing the digital music ecosystem worldwide. The benefit of robust, accurate matching of repertoire to rights-owners is significant to SOCAN’s existing and future members, and will especially increase revenue streams for all whose music is played on digital platforms such as YouTube, Facebook, SoundCloud and other services relying on uploads.

“The music ecosystem is in need of data and accuracy and, with MediaNet, SOCAN is the first major music collective to meet this need,” said SOCAN CEO Eric Baptiste. “The expanded family of MediaNet and SOCAN creates an unbeatable combination that will help drive proper compensation for SOCAN’s membership base of songwriters, composers and music publishers and potentially for all parties involved in the music value chain.”

For SOCAN’s more than 135,000 members the acquisition of MediaNet brings immediate dramatic improvement in digital match-rates and the speed of distribution of digital royalties. For digital service providers this means a new dimension of accuracy for matching musical works with rich ownership data.

MediaNet will continue to operate under its current name, with all of its 34 employees continuing at the organization’s Seattleoffices. MediaNet CEO Frank Johnson and the company’s leadership team will remain in place.

“SOCAN is a leader in ushering the transition from physical to digital through a commitment to data and artist advocacy,” said MediaNet CEO Frank Johnson. “We are thrilled to join the SOCAN family and realize our shared goal of pioneering high-scale technology solutions that ensure fair and accurate royalty administration.”

The acquisition was completed in May 2016, the terms of which are undisclosed.

Headwaters MB acted as financial advisor and Reitler Kailas & Rosenblatt LLC as legal counsel to MediaNet in this transaction. Venable LLP, Gowling WLG and KPMG advised SOCAN on the matter.

About MediaNet
MediaNet maintains one of the largest B2B rights-managed, global music catalogs of more than 51 million tracks and a database of over 4.1 million rights holders and their respective works. MediaNet’s database of rights holders encompasses composers, publishers, administrators, PROs, collection societies, performers, labels, and distributors. MediaNet leads the music industry by hosting the only commercially available catalog of sound recordings connected directly to a comprehensive database of rights, ownership, and songwriting splits. MediaNet enables accurate royalty administration for streaming music apps, subscription services, and download stores. MediaNet has powered many popular digital music services worldwide including Beats Music, Pulselocker, CÜR Music, Songza, Target, and Univision.

About SOCAN
SOCAN is a member-based organization that represents the Canadian performing rights of more than four-million Canadian and international music creators and publishers. SOCAN is proud to play a leading role in supporting the long-term success of its more than 135,000 Canadian members, and the Canadian music ecosystem overall. SOCAN licenses more than 125,000 businesses in Canada, and distributes royalties to its members and music rights organizations around the world. SOCAN also distributes royalties to its members for the use of their music internationally in collaboration with its peer societies.

(via PRNewswire)

Tuncore Bats for NMPA, PRS and WMG Win Big, The War on YouTube Continues

Posted by Glen Sears, Editorial Content Manager | May 9, 2016 10:05 am | No Comments

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Story of the Week

TuneCore Encourages Members To Opt-In To $25M Spotify NMPA Settement, Artist Advocates Cry Foul
Spotify and the NMPA are contacting artists and publishers encouraging them to sign on to the $25 million settlement they negotiated over unreported and unpaid royalties for unlicensed streams. This week, TuneCore reached out to the artists using their music publishing platform encouraging them to opt-in.

TuneCore sent an email this week to the tens of thousands of independent songwriters that use its Publishing Administration services, encouraging them to opt-in to a $25 million settlement with Spotify over the use of unlicensed tracks negotiated by the NMPA. The email has drawn fire from artists advocates including former TuneCore CEO and founder Jeff Price and musician David Lowery, who has filed a lawsuit against Spotify.

Musician and outspoken industry critic David Lowery, who has filed a lawsuit against Spotify and is seeking class action status to include other artists and publishers, is equally incensed.

Read the full story on Hypebot.

Top Music News Stories

PRS for Music Reports Record Revenues for 2015, Leaders Chide the ‘Value Gap.’ “It’s been an exceptional year for us, revenue was up in all our main revenue streams — online, international, public performance and broadcast — and the growth strategy that we have been pursuing for a number of years is now really beginning to pay off.”

Digital Music Firm Omnifone Placed Into Administration. B2B digital-music firm Omnifone has been placed into administration, resulting in the layoff of up to 70 staff as it seeks a buyer for the company’s technology assets—it is unclear at the present time what the administration means for their services.

Streaming Now Top Recorded Revenue Source for Warner Music. The label group’s streaming income has now overtaken both its physical revenues and its downloads sales – streaming actually overhauled the latter in the first quarter of 2015, so a year later it has now also surpassed physical.


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Old Music Is Selling More Than New Music. Nielsen’s latest music report is out and, as always, it’s very revealing about what we listen to in the U.S. Perhaps it’s biggest revelation is that, for the first time, old music (known as catalog sales) outsold new music in 2015.

Apple Music Reportedly Set for Major Overhaul. Apple is planning sweeping changes to its year-old music streaming service after the first iteration of the product was met with tepid reviews and several executives brought in to revive the company’s music strategy departed.

‘It’s a System That Is Rigged Against the Artists’: The War Against YouTube. Most label executives aren’t ­expecting YouTube to have a change of heart — they’re trying to change the law under which it operates.

vKontakte Launches A (Licensed!) Music-Streaming AppThe company has courted controversy – and lawsuits – within the music industry in the past with the widespread availability of user-uploaded copyrighted music on its platform — however, having signed agreements with Sony Music and Warner Music as well as some Russian publishers, vKontakte is trying to go legit.

Our best wishes for a great week! – MediaNet

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Have questions about how Medianet can help your digital music business? Ask us here. Want a topic or insight published on this blog? Ask us here. Other questions or comments? Let us know!

4 Reasons to Use MediaNet for Developing Your Digital Music Product

Posted by Glen Sears, Editorial Content Manager | May 4, 2016 3:58 pm | No Comments

(Additional contribution by Dan Charlson)

Many people ask us, “Why should I use MediaNet? Building a digital music product can’t be that difficult or expensive.” After 15 years in the digital music industry, there’s one thing we know for sure—building a digital music product alone is that difficult and expensive.

Music licensing is deeply complex. Multi-format file distribution requires massive server resources. Most importantly, paying royalties accurately to the law requires a content library that intelligently tracks ownership information for labels and publishers. Only MediaNet has a library like that, available through our MN Open API or Enterprise solutions.

There are four major areas MediaNet offers product teams and developers the tools they need:

  1. Catalog and Label Relationships (Majors, Indies, Aggregators)
  2. Content Fulfillment and Delivery (API, Download/Streaming Servers, CDN)
  3. Rights & Royalty Reporting and Administration (Labels, Publishers, PROs)
  4. Data Access & Management (XML Feeds, Metadata, Trending, Analytics)

Complications in digital music arise when data must be sent between providers for different services. Some companies offer APIs for catalog and metadata, others can administer royalty payments. MediaNet is the company can do it all under one roof, with full transparency at a time when the music industry is turning against the black box.

Sign up for MN Open Now!

Beyond accountability and convenience, the MediaNet Platform is dependable and up-to-date, with rock-solid servers. MediaNet has powered the world’s best-loved music apps. Diverse services like Beats Music, MOG, Google Play, Songza, Yahoo! Music, AOL Music, MTV Urge, Turntable.fm, and so many more. Those services have enjoyed deployment in nine territories—US, Canada, UK, France, Germany, Ireland, India, Australia, and South Africa.

In short, startups and enterprise clients use MediaNet because we:

  • Manage the most complicated digital music installations in the world. If it’s complicated, we get the call.
  • Are pure B2B; we have no consumer-facing product.
  • Are the only company with the tools to ensure all rights holders are paid for every play.
  • Are prepared for the scale of any start-up’s growth; if you go viral, our system won’t even hiccup.

Think of your music service like an iceberg. The visible parts of your service are your focus: user interface, client applications, marketing, ecommerce, and customer support. Everything else? MediaNet does the invisible work, operating out of sight to power your service. We’ve built the tools, systems, and processes to power these services simultaneously, at scale and with maximum availability.

Our music catalog is always growing. MediaNet processes 200,000 new tracks, and 1-2 million updates to our library, per week. We add an average of 5M tracks every year to our catalog. We manage over 2 petabytes of physical storage for these files in 11 formats. Despite the availability of scalable cloud storage, our methodology is more stable and costs less over the long term than using a cloud service.

Contact us about an Enterprise solution!

Growth at this level requires a dizzying amount of data management. Content deliveries (assets, art, XML feeds addressing metadata, rights, and pricing) in multiple formats being delivered from 1000’s of sources that cover over 50 territories and currencies—all while maintaining proper ownership chains for every track so rights owners can be paid.

Additionally, we work with global Content Distribution Network (CDN) partners to deliver an optimal streaming experience to end users everywhere. Akamai, Level3, Verizon-EdgeCast, and Limelight CDN technology ensure that our massive library of groomed content is delivered at better speeds and lower cost than individual services can achieve. We pass 100% of those savings onto our partners (that’s you).

MediaNet is a unique company. We’re the only B2B digital music platform on the planet with a digital content library that intelligently understands the entire ownership structure of each track. We process data at levels only search giants like Google and Facebook can. We have one foot in technology, and the other foot in the music industry.

MediaNet offers the only available digital music platform that can license, distribute, report, and pay under one roof. Call or email us to find out exactly what we can do for you.

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RECAP: Apple Music Hits New Milestone, Universal Metadata Standards, ASCAP has Another $1Bn Year

Posted by Glen Sears, Editorial Content Manager | May 2, 2016 9:36 am | No Comments

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Story of the Week

Apple Music Grows to 13 Million Subscribers
Apple Music has surpassed 13 million subscribers, Apple CEO Tim Cook revealed Tuesday. That represents growth of 2 million subscribers since the company last disclosed numbers in February.

Apple announced the growth in Apple Music subscribers as part of its fiscal second-quarter earnings release, during which it reported its first revenue declines since 2003.

But, the Cupertino, Calif.-based tech giant still has a ways to go before it catches up to streaming heavyweight Spotify. The company boasts 30 million paying subscribers as of March.

Read more on Apple Insider.

Top Music News Stories

Spotify Denies Security Breach After Report of Stolen Passwords, Addresses. According to a report at TechCrunch, some users’ email addresses, passwords and other account information appeared on the Pastebin website.

Future Of Music Coalition CEO Casey Rae On The Value Of Universal Data Standards. Let’s commit to universally deployed data standards on both sides of the music copyright, common database environments for expedient matching and resolution of discrepancies, along with a protocol for universal information updates when additional data is modified by authorized parties.”

A Surprisingly Interesting Dive Into Classical Music Metadata. Breaking down how such metadata works, and what standards need to be followed in order to ensure that DSP’s classical content remains up to snuff.

Pandora’s First Quarter Financials: Ad Revenue Jumps Along With Music Costs. With revenue jumping 29 percent from nearly $231 million in the corresponding quarter in the prior year, Pandora continues its growth story—but its losses also widened, to $115.7 million from the $48.3 million loss it had in the corresponding quarter in the prior year.

ASCAP Reports $1 Billion in Revenue, Again. Within that, domestic receipts grew to $716.8 million, up 9.3 percent from the prior year’s total of $655.8 million. ASCAP also increased domestic distribution by 6.2 percent, to $573.5 million.

YouTube Changes Content ID to Allow Money Collection During Rights Investigations. Internet video giant YouTube has made a change in its Content ID evaluation process that will benefit creators whose work has been improperly challenged by a rights holder.

Regulatory Filing Reveals UMG’s Massive Effort To Block Pirates. A Universal Music Group filing with the U.S. Copyright office designed to bolster the case that Safe Harbor standards need an overhaul, reveals the lengths that the company went to limit piracy on Taylor Swift’s 2014 release ‘1989.’

Our best wishes for a great week! – MediaNet

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RECAP: David Lowery Motion Claims Songwriters Being “Misled”, TIDAL Gets Beyonce Exclusive, UMG Wins Big

Posted by Glen Sears, Editorial Content Manager | April 25, 2016 10:38 am | No Comments

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Story of the Week

David Lowery Files Motion To Stop Spotify, NMPA From “Misleading” Songwriters
Songwriters are being “misled” by being encouraged to sign onto a settlement it made with the National Music Publishers Association, according to a motion filed by attorneys representing David Lowery, who is suing the music streamer for use of his songs without a license.

The NMPA and Spotify had reached a settlement for music publishers and songwriters to receive royalties for “unmatched” compositions used on Spotify in the U.S. from a $25 million fund. In addition to identifying the rightful recipients of the royalties, the agreement establishes a bonus compensation fund reported to add $5 million to the settlement.

According to the filings, Lowery’s team alleges that Spotify is misleading songwriters to encourage them to sign the NMPA brokered agreement. They are demanding copies of all communications between Spotify, publishers and songwriters related to the deal, along with additional payments for damages.

Read more on Hypebot.

Top Music News Stories

$84M Class Action Suit Filed Against Kanye West, Jay Z Over Tidal Album Release. A fan of Kanye West fan is suing the star and and the streaming music service Tidal saying that the falsely lured users into subscriptions based on the promise that it would be the exclusive outlet for his latest album, “The Life Of Pablo.”

Beyoncé Releases Surprise Album ‘Lemonade,’ Will Stream Exclusively On TIDAL Forever. Saturday night Beyoncé became the latest superstar TIDAL artist-owner to release their new album exclusively on the platform, following Kanye West and Rhianna–the much anticipated 12 track album sent fans into a frenzy on social media.

Universal Wins Big Ruling in Copyright Lawsuit Over In-Flight Music. Universal Music and Capitol Records have navigated the complexities of international air travel to score a summary judgment ruling that when it gets to a jury next month to decide damages, could be worth hundreds of millions of dollars.

“Compulsory Licenses Must Require Display Of Songwriter Credits.” Chris Castle argues that the U.S. government should require that digital music services provide proper attribution to songwriters when compulsory licenses relating to said artist are obtained.

Facebook Launches Its Version Of Content ID. Following complaints from content creators that their YouTube videos have been appearing on Facebook after being posted without the creator’s consent, the social network has released its own version of YouTube’s fabled Content ID.

YouTube Defends Content ID Following Music Labels’ Criticism. It represents the latest front in the war of words between YouTube and the music industry at a time when the service is preparing to negotiate new licensing deals – and also when reviews of safe-harbour legislation are underway on both sides of the Atlantic.

‘Alibaba Planet’ is China’s Latest Music Platform. “Music fans can use their smartphones to follow their favourite stars, participate in fan activities, purchase related merchandise and watch live shows of cyber celebrities and popular singers, in addition to listening to streaming songs,” says the internet giant.

Prince Fans Pay Tribute, Buying 1M Tracks, 240K Albums In U.S. On Day Of His Death. The unprecedented stats were compiled by BuzzAngle Music, a sales & streaming tracking service of music technology company Border City Media.

Rhapsody Names Its First-Ever CEO. Streaming service Rhapsody and its international version Napster have been operating without a full-time leader at the top, until now, as the Seattle-based parent company Rhapsody International has announced it has hired Mike Davis as the company’s new — and first — CEO.

Our best wishes for a great week! – MediaNet

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Have questions about how Medianet can help your digital music business? Ask us here. Want a topic or insight published on this blog? Ask us here. Other questions or comments? Let us know!

Recap: IFPI 2016 Global Music Report, Soundcloud Hits Europe, Facebook Tackles ‘Freebooting’

Posted by Glen Sears, Editorial Content Manager | April 18, 2016 9:44 am | No Comments

IFPI releases its 2016 Global Music Report

Story of the Week

IFPI 2016 Global Music Report: Digital Revenues Surpass Physical for the First Time
The global recorded music business reached an important tipping point in 2015: Digital services now account for 45 percent of recorded music revenue and outstripped physical revenue for the first time, according to numbers released Wednesday by the global trade body IFPI.

The global snapshot is equally positive. Low single-digit revenue growth was registered by North America (+1.4 percent) and Europe (+2.3 percent) while Asia improved 5.7 percent and Latin America rose 11.8 percent behind 80.4-percent growth in streaming revenue.

The most momentum happened with subscription services. Subscription revenue, excluding revenue from some services’ free tiers, jumped $58.9 million to $2 billion. The number of subscribers grew 66 percent to 68 million. The number of new subscribers, 27 million, was twice the 28-million subscriber gain in 2014 and over three times the growth in 2013.

Read the full story on Billboard.

Top Music News Stories

Analyst Mark Mulligan Dives Into IFPI’s GM2016 Report, Surfaces Surprising Takeaways. “Revenue was flat, downloads and physical are both still falling, streaming growth accelerated, ad supported revenue fell, and streaming ARPU is up but subscription ARPU is down.

War of Words: Labels and Trade Groups Target YouTube’s ‘Value Gap.’ Labels define this “value gap” as the difference between what YouTube actually pays and what they believe it should pay. Labels argue that safe harbor “distorts” the market by giving services leverage in negotiations.

SoundCloud and Sony/ATV Announce Licensing Deal in Europe. SoundCloud wants to take its GO paid subscription service global; and a new deal with Sony/ATV, who has had a deal with SoundCloud in the U.S. since the 2014 launch of its monetization efforts, extends the partnership to Europe.

The Launch Of SoundCloud Go Leaves Unanswered Questions. Nicole Daley, speaking about Soundcloud Go, says “although the service has interesting potential, there remain several unanswered questions regarding things like how artists will get paid, or how royalties are being calculated.”

Facebook Tackles ‘Freebooting’ With Rights Manager Tool. The social media giant has launched Rights Manager, an admin tool which is intended to curb the dubious practice where Business Pages and celebs can rip videos from elsewhere, repost the copyrighted content on Facebook and grow their brands while robbing the content creators of views.

CÜR Media Raises $2M To Pay Labels, Launch Streaming Service Aimed At Casual Music Fans. CÜR Media has announced the completion of $2 million in financing led by Intuitive Venture Partners and Katalyst Securities. CÜR Music, currently in public beta, is a streaming music service aimed at more casual music fans with tiers beginning at $1.99 per month after a 14-day free trial.

ASACP Sues 10 Venues That Refuse To Pay To Use Music. Over the past two years, and in many cases longer, ASCAP says it made numerous attempts to offer to license these venues and educate the owners about their obligations under federal law.

Our best wishes for a great week! – MediaNet

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Recap: Sony Accuses Rdio of Fraud, TuneCore Arrives in Germany, Streaming Hits New Milestone

Posted by Glen Sears, Editorial Content Manager | April 11, 2016 10:02 am | No Comments

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Story of the Week

Sony Music Files Fraud Lawsuit Against Rdio Executives Over Pandora Deal
In a new lawsuit, Sony Music alleges it was defrauded of millions when the on-demand service Rdio came to agreement with Pandora and subsequently filed for Chapter 11 bankruptcy last November.

The complaint states: “Unbeknownst to SME, at the same time that Rdio was negotiating the amendment to its Content Agreement with SME, it was simultaneously negotiating its deal with Pandora — under which Rdio would file for bankruptcy; Pandora would buy Rdio’s assets out of bankruptcy; defendant Bay (as part-owner, executive officer, and director of Rdio’s secured creditor) would expect to be first in line to receive proceeds of the Pandora deal; and SME (as an unsecured creditor) would receive pennies on the dollar for the amounts owed to it under the amended Content Agreement.”

Sony says that Rdio purposely kept its Pandora negotiations and impending bankruptcy secret so as to hold back Sony from demanding immediate payment of the $5.5 million and “inducing” extensions and a restructuring of payment obligations.
Read more on Billboard.

Top Music News Stories

TuneCore Launches In Germany. This marks the fifth international expansion for the company which added the UK and Australian markets in 2015.

Rhapsody, Napster Launch The Listener Network Designed To Make Music More Social. Powered by its patent-pending Music Intelligence Engine, The Listener Network connects Rhapsody and Napster users globally to form communities of music lovers with similar tastes to share and discover new music.

Streaming Hits 67.5 Million Subscribers But Identity Crisis Looms. “17% of music buyers account for 61% of spending…The question the music industry must now answer is how seriously does it want to treat the opportunity represented by these [remaining] consumers?”

iHeartMedia Gets More Time To Resolve Its Massive Debt Problems. Interest on the debt is a drag on earnings; in spite of generating $6.5 billion in revenues in 2015, iHeart paid $1.8 billion in interest expense and ended with a total net loss of $651 million.

Bandcamp Has Paid Artists $150M in 8 Years. Amidst the current streaming wars, Bandcamp has largely stayed above the fray without directly competing with the biggest players but serving as an alternative favored in large part by independent artists and labels.

3 Major Players That Could Disrupt The Streaming Music Industry. According to Hugh McIntyre of Forbes, Amazon, Samsung, and Soundcloud have enough leverage and resources to potentially be considered viable challengers.

SFX Bankruptcy Court Allocates $15 Million In Payments To Artists. The judge overseeing the SFX bankruptcy gave top tier EDM artists and their agents reason to celebrate this week with the allocation of $15 million to be paid to artists performing at the beleaguered promoter’s festivals this summer.

Our best wishes for a great week! – MediaNet

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Have questions about how Medianet can help your digital music business? Ask us here. Want a topic or insight published on this blog? Ask us here. Other questions or comments? Let us know!

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