RECAP: MiDiA Research Uncovers Trove of YouTube Intelligence, Guvera Shutters in Australia, WMG & Vevo Close to Deal
Posted by Glen Sears | August 1, 2016 9:40 am | No Comments
Story of the Week
MIDiA Takes A Deep Dive Into YouTube As A Music Business
MIDiA Research has released a report on YouTube and the video platform’s impact on the music economy. With YouTube commanding a massive audience, but still drawing criticism and skepticism from artists and labels, the report adds much-needed data to explain the service’s role.
“Safe Harbour-enabled UGC is no longer the threat it once was, with just 2% of music video views from unofficial uploads,” MIDiA Research says. That statement, backed by research detailed in the report, is an interesting contradiction of some rights-holder complaints that UGC (user-generated content), and the regulation surrounding UGC platforms, do not adequately protect artists, labels, and songwriters.
The report examines several facets of YouTube’s business, including details about the most popular videos and distinct trends in listener behaviors. It revealed that three-quarters of music video views happen through official sources, and a further 76% of those are uploads from distributor Vevo. It also found that audience behaviors are quite sophisticated, with sizable listener groups only listening to the audio or navigating directly to an artist’s channel.
Top Music News Stories
Warner Music Group and Vevo Close to Reaching Content Deal. For Warner Music Group, this comes in a year when the company seems to be focusing its efforts in making more licensing deals, having partnered with Facebook, and signing a deal with social video sharing app musical.ly to let its music be licensed for the platform.
Canadian Music Industry Reaches $66M Settlement With Piracy Site isoHunt. The court found that isoHunt and Fung were liable for $55 million in damages and an additional $10 million in punitive damages, plus another million in court costs.
SOCAN And Audiam Talk Tech, Streaming And 21st-Century PROs. It’s unusual to see a PRO acquiring a music/tech company, let alone two in quick succession; Music Ally spoke to SOCAN chief executive Eric Baptiste and Audiam boss Jeff Price [paywall] to explore its strategy.
Troubled Music Streaming Startup Guvera Closes Up Shop in Australia. “Born and launched into Australia in 2008, we have had the best time bringing all the latest tunes to the ears of our listeners here; unfortunately, and with a heavy heart, the time has come to pull back from our operations in the country.”
SoundCloud Is For Sale, But They’re Having Trouble Finding A Buyer. In June, SoundCloud raised $70 million from Twitter in a $100 million funding round at reported valuation of $700 million — now Soundcloud is for sale.
Our best wishes for a great week! – MediaNet
Music News Recap: Music’s Role in Digital Content Shrinking, FCC Announces Audits, RIAA Wins Piracy Case
Posted by Glen Sears | February 29, 2016 10:11 am | No Comments
Story of the Week
The Role of Music in Digital Content is Small And Shrinking
At this year’s Mobile World Congress in Barcelona, MiDiA Research’s Mark Mulligan focused on digital music and its relation to mobile apps and sources like video in the broader digital content ecosystem. One of the themes of the address was how the streaming music business relies on almost the same model as mobile games like Clash Of Clans—by counting on a very small percentage of the total audience to pay the bills.
The difference of course is the average paying user’s overall contribution. A Clash of Clans “King” user averages $290.41/year while for UMG the annual contribution of a streaming music subscriber is $29.77. Mulligan gives credit to UMG for breaking streaming records, but insists that getting music streaming to scale isn’t enough when only 10% of streaming music users are paying customers.
Yet the most impactful takeaway from the speech is how small digital music’s role is in the broader ecosystem. Digital music (at retail values) will be just 10% of digital content revenue by 2020, down from 16% in 2015. Not only is digital music relatively small, but it will continue to lose market share. Online video, which is at an earlier stage of its development, is already bigger (at retail value) than the entire recorded music business (at trade value), while mobile app revenue is double that of online video.
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