MediaNet Blog

Pandora CEO May Be Stepping Down, Apple Music Wants Lower Royalty Payments, TuneCore Nears $1B Revenue

Posted by Glen Sears | June 26, 2017 10:56 am | No Comments

tim_20westergren_20code_20media_202.0

Story of the Week

Pandora CEO Tim Westergren May Be Stepping Down, According to a New Report
According to Recode, Pandora hasn’t selected a replacement for Westergren, sources say; he will likely stay on at the company he founded 17 years ago until a new CEO is in place.

Top Music News Highlights

Pandora [P] Stock Up On Report Of CEO Westergren’s Exit. Wall Street seemed to approve of the potential changes at Pandora, with Pandora stock up 2.78% to $8.51 by mid-day trading.

Apple Wants To Reduce Royalty Rate It Pays Record Labels. According to a report from Bloomberg, the Cupertino giant’s long-term licensing deals with the labels for both Apple Music and iTunes are due to expire at the end of this month.

TuneCore Artists Nearing $1 Billion in Revenue. The company said that as of May 31, artists have earned more than $920 million on the strength of over 75 billion streams and downloads.

Elon Musk’s Tesla Looks Set To Launch Its Own Music Streaming Service. Tesla is reportedly looking at launching multiple tiers of pricing, starting with a ‘Pandora-like web radio offering’.

The BPI Has Now Sent 312M Takedowns To Google. In the last month alone, the BPI has requested 11.2m URLs to be removed from Google’s public search listings, with Google’s transparency report revealing that 99.8% of URLS reported by the body are ultimately removed.

Digest: SiriusXM Buys $480M Stake in Pandora, Pandora Unloads Ticketfly, 3 Takeaways from Midem 2017

Posted by Glen Sears | June 12, 2017 10:07 am | No Comments

pandora-may-5-2017-billboard-1548

Story of the Week

SiriusXM to Buy $480M Stake in Pandora
Under the terms of the agreement, a subsidiary of SiriusXM will purchase news convertible preferred stock of Pandora, while SiriusXM has already bought $172.5 million of preferred stock representing a stake of 19 percent in Pandora’s, or a 16 percent stake when converted.

Other Music News Highlights

Pandora Sells Ticketfly To Eventbrite For $200M, A $250M Loss. The Ticketfly transaction is expected to close in the third quarter of 2017 — Eventbrite is funding the acquisition using a combination of $150 million in cash and a $50 million note payable to Pandora.

Analysis: What Pandora’s Ticketfly Sale and SiriusXM Investment Means. The money from the deals, coupled with the $199 million that the company disclosed in 2016 year-end report, gives the company a total of $856 million in cash—buying Pandora time to prove it can build a successful, profitable on-demand music service.

3 Big Takeaways From Midem 2017. Zach Fuller of MiDIA Research shares his top three takeaways from the annual conference addressing the latest developments in the music industry.

YouTube Has A New Label Relations Boss: SoundCloud’s Stephen Bryan. Cohen, Global Head of Music at YouTube, said: “At YouTube, we have over a billion viewers and thousands of label partners and Stephen is going to be the bridge that brings them together.

Taylor Swift’s Catalog Now On Other Streamers As Apple Music Loses Key Exclusive. Recently Spotify eliminated a key Taylor Swift objection to streaming, adding the ability to window releases.

Digest: Pandora & SiriusXM Might Be Back On, Paypal Sues, DOJ Appeals in BMI Case

Posted by Glen Sears | May 22, 2017 10:42 am | No Comments

Story of the Week

SiriusXM’s Pandora Buyout Could Be Back On
That’s according to a new report from the New York Post, which suggests that Sirius recently restarted talks with Pandora’s banks and is currently “discussing the size of a potential offer.”

Top Music News Highlights

Pandora Sued By PayPal For Alleged ‘Harmful’ Logo Infringement. PayPal’s suit, filed on May 19, claims: “The similarities between the logos are striking, obvious, and patently unlawful. Just like the PayPal logo, the Pandora logo is a capital P in block style, sans serif, with no counter, in the same deep-blue color range.”

Merlin Agrees Multi-Year Licensing Deal With HD Music Firm MQA. The partnership will enable the number of independent labels represented by Merlin to encode their master recordings in MQA’s master quality audio technology.

Department of Justice Appeals Consent Decree Ruling, BMI Hits Back. The DOJ claims that BMI is seeking to include a special exception for split works and it notes that while BMI has the right to license some of these split works on a full-works basis, it is asking the court to create an exception for all split works so that it can provide fractional licenses for those songs.

France’s Sacem Posts Record Revenues of $1.5 Billion. Of that total, $1.3 billion was paid out to members and affiliate neighboring rights organizations (up 2% on 2015) with just under $67 million invested in almost 2,000 creative and cultural sustainability projects – including financial support for music venues and festivals – to help “ensure long term growth for the industry.”

The MP3 Is Dead, Long Live The MP3. The last of the patents related to the MP3 format expired (or will very soon), so patent-holder Fraunhofer IIS has nothing left to license.

Digest: Fans More Willing To Pay For Music, Amazon’s Music Plans, Slacker Lays Off Staff

Posted by Glen Sears | April 17, 2017 9:20 am | No Comments

slide-4-graph-4.11.17

Top Music News Story

Fans Have A Growing Willingness To Actually Pay For Music
Music fans are showing a growing willingness to actually pay for music, and that is helping to drive the current growth in the recorded music industry. In fact, the value of those fans grew 11% last year driven by tens of millions of $10 per month on-demand subscriptions, according to MusicWatch’s Annual Music Study.

Read the full story on Hypebot

Other Music News Highlights

“Music Streaming Still Needs To Get A Lot Easier For Consumers.” In an exclusive interview with MBW, Steve Boom discusses Amazon’s ambitions in digital music, streaming’s potential to grow globally, the tricky subject of artist exclusives and free vs. paid- plus the small matter of how we’re all going to listen to music in future.

Slacker Radio Has Laid Off 25% Of Its Staff. “Slacker Radio is laying off approximately 25% of the team as part of our ongoing effort to focus on efficiency and accelerate the path towards profitability.”

Pandora Is Now Talking To Private Equity Firms In Search Of Cash. Pandora is in talks with private equity firms Providence Equity Partners, Silver Lake, KKR and others; tandem talks with other potential partners about strategic investments and even sale are continuing, and Pandora hired Centerview Partners last July to explore strategic options.

TuneCore Now Offers Musicians and Indie Labels Fast, Low Cost Royalty Advances. TuneCore launched TuneCore Direct Advance in collaboration with Lyric Financial — a new service provides U.S.-based TuneCore customers the option of quick, automated advances on their future distribution sales revenue.

U.K. Recorded Music Industry Grew By 5.1% in 2016. Mark Mulligan of MiDIA Research gives his quick take on another streaming music success, and why there may be more to the story.

Digest: Spotify Close To Major Label Deals, Budging on Windowing, UMG Partners For VR Experiences

Posted by Glen Sears | March 20, 2017 9:30 am | No Comments

spotify-video

Top Music News Story

Spotify To Sign New Licensing Deals With Major Labels ‘Within Weeks’?
The Financial Times is reporting optimistic news: it says that “licensing talks have picked up considerably” between the Spotify and Universal Music Group – and even that “deals [with the major labels] could be inked within weeks.”

According to the FT’s sources, Spotify has changed stance on one crucial point: finally agreeing to allow blockbuster album releases to be ‘windowed’ on its premium tier.

Read the full story on Music Business Worldwide.

Other Music News Highlights

Spotify Softens Stance on Windowing New Music In Exchange For Lower Royalty Rates. The concession, which Spotify has long resisted, would reportedly be in exchange for the labels agreeing to reduced royalty fees for songs — the proposed deals are seen as a crucial step as Spotify tries to clear the path for an IPO in 2018.

Drake Has Reportedly Generated More Than $50m On Spotify. A spokesperson said: “Drake continues to break Spotify records, including his own, and is now the number one streamed artist and the first to reach over 10 billion streams.

Universal Inks Deal With MelodyVR For ‘Revolutionary Music VR Experiences.’ MelodyVR says it will be creating experiences with UMG artists including sell-out concerts, live performances, immersive music videos and intimate behind-the-scenes content.

Chance The Rapper Says Apple Music Paid $500,000 For 2 Week “Coloring Book” Exclusive. “I just wanna remain transparent, folks out there without a deal need to know they’re doing everything right just keep at it…I think (an) artist can gain a lot from the streaming wars as long as they remain in control of their own product.”

Pandora Not For Sale, Will Be Profitable This Year, Says Pandora CEO As Stock Falls. Pandora founder and CEO Tom Westergren made some bold claims during a CNBC appearance Monday — Wall Street seemed unimpressed, pushing the stock -6.3% to $11.60 by midday Tuesday.

Performance Rights in Pre-1972 Sound Recordings Kicked to California Supreme Court. The development is the latest in a high-stakes showdown that’s been unraveling since Flo & Eddie of The Turtles brought class actions against Sirius XM and Pandora for broadcasting hits like “Happy Together.”

Ticketmaster Expands ‘Verified Fan’ Program To Combat Bots, Ticket Scalping. Ticketmaster’s Verified Fan uses a combination of expert systems and customer data such as purchasing history in an effort to identify fans purchasing tickets and cut down on automated ticket buying systems or bots.

Digest: Spotify Acquires Sonalytic To Improve Pub Data, Pandora Premium Launching, NMPA Goes To Court

Posted by Glen Sears | March 13, 2017 10:14 am | No Comments

Spotify

Top Music News Story

Spotify Acquires Audio Detection Startup Sonalytic To Improve Publishing Data
Spotify has acquired Sonalytic, a UK based startup that specializes in audio identification that enables us to connect creators and rights-holders to monetization opportunities.

Spotify says it will use Sonalytic audio detection to improve its personalized playlists and to match songs with compositions to improve their publishing data system. Publishing data and subsequent payments have been a source of tension between the music streamer and music publishers and songwriters.

Read the full story on Hypebot.

Other Music News Highlights

Opinion 1: “Spotify Could Use It’s New Acquisition To Take On Shazam.” Hypebot reports that, “in addition to its public intent to use Sonalytic’s audio detection to improve its personalized playlists and to match songs with compositions to improve their publishing data system, Spotify could use it to build its own Shazam.”

Opinion 2: “Could Sonalytic Help Spotify Build, Not Buy SoundCloud?” “If Spotify is so minded, then, it could use Sonalytic’s technology to build its own version of the kind of technology SoundCloud has been developing – and thus open up Spotify’s platform to the kind of mixes, mash-ups and other user-generated content that has been the engine behind SoundCloud’s growth.”

Pandora Premium $9.99 On Demand Streaming To Launch Wednesday. Invites for a free trial will be sent to select users this Wednesday; and an option to upgrade will be available to all listeners over the coming weeks.

Liberty: We’d Buy Pandora… For $1bn Less Than We Offered Last Year. At the Deutsche Bank Media, Internet & Telecom Conference in Florida, Greg Maffei stated that Liberty believes Pandora’s “stock is overvalued. We will not pay the current market price so I think it’s very unlikely we’re going to end up buying them.”

Amazon Is Getting Involved In The Music Festival Business. The plans will involve a “physical festival presence” which could include “on-site food and product delivery, custom tour merchandise for purchase, artist meet and greets, and convenience amenities such as free Wi-Fi, water, charging stations, and restrooms”.

4,000 Songwriters Sign NMPA Petition As Copyright Royalty Rate Hearings Heat Up. The NMPA, in a statement last week, said, “This week the most important trial most people have never heard of will begin in Washington, D.C.”

“I Don’t See A YouTube Value Gap.” Believe boss Denis Ladegaillerie claims his digital distribution and artist services company earns 20% of its overall revenues worldwide from YouTube, and sees it as a vital revenue and promotion tool.

RECAP: Pandora Reportedly Open To SiriusXM Deal, IFPI “Investing In Music” Report, Startups Closing Big Funding

Posted by Glen Sears | December 5, 2016 9:26 am | No Comments

57da8fd65124c95c59abec3c-728

Pandora Shares Spike on Report It’s Open to SiriusXM Deal Talks

Story of the Week
Shares of music-streaming provider Pandora shot up as much as 17% Friday, after CNBC reported the company was open to discussing a sale to satellite-radio service SiriusXM.

Following the CNBC report, Reuters reported that Pandora is not undertaking any new effort to find a buyer, citing an anonymous source. That’s consistent with what Pandora execs said earlier this year, after a New York Times report in February that the company was seeking to sell itself.

According to the CNBC, Pandora has “expressed a willingness to engage” in deal talks with “longtime suitor” SiriusXM, which is majority-owned by John Malone’s Liberty Media. The potential talks between the companies were in “the first inning of the process,” per the report, citing unidentified sources.

Read the full story on Variety

Top Music News Stories

SiriusXM Must Pay Up To $99M In Flo & Eddie Class Action Settlement. The settlement guarantees $25 million payment vs. a 5.5% license for 10 years, which is worth between $45.47 million to $59.2 million, assuming the satelitte streamer plays the other class members at the same play rate as they have in the past.

Record Label A&R Spend Grew By $300m Last Year According to IFPI Report. The figure, along with many others, comes from a new IFPI report “Investing In Music,” co-signed by both the majors and worldwide independent label group WIN.

iHeart Launches Napster-Powered Subscription Service. “Ten times more Americans listen to radio every month than use a subscription service – so the debut of iHeartRadio Plus and iHeartRadio All Access powered by Napster is a unique opportunity to capture these non-music subscribers with an on-demand service built around radio.”

Dubsmash Adds $9.6 Million For Viral Music Video Lip-Sync App. The Berlin-based Dubsmash added $9.6 million in series B funding to expand its viral music video lip-sync app, after having previously raised $6 million.

Music Tech Startup Soundstr Closes $1.1M In Seed Financing. Soundstr’s patent-pending technology offers tracking data to the manner in which venues and businesses pay for the use of music, and songwriters receive royalties.

Warner Music Boss Reportedly Involved In Bid For Publisher Time, Inc. According to sources cited by the New York Post, the trio were offering $18 per share to acquire the media firm, which is a 30% premium on the price the company’s shares were trading at last week.

How Technology Is Powering The Music Industry…In Figures. Midem Blog presents various year-end statistics about the intersection of music and technology, including the massive number of users on QQ Music, “China’s Spotify.”

Our best wishes for a great week! – MediaNet

Follow MediaNet! – Facebook | Twitter | LinkedIn | Medium

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.

RECAP: SoundExchange Wants Major Rate Increases, NMPA Wants Facebook Publishing Deals, Pandora Premium Launch Date,

Posted by Glen Sears | October 31, 2016 10:02 am | No Comments

SE_full_5

SoundExchange Asks U.S. Copyright Royalty Board For Major Rate Increases

Story of the Week
SoundExchange has submitted a new rate proposal and testimony in the SDARS III royalty rate proceeding from which the Copyright Royalty Board (CRB) will set rates for the years 2018-2022 for Sirius XM’s satellite radio service, as well as, cable/satellite TV music services provided by Music Choice and Muzak.

SoundExchange has proposed a rate that is the greater of either 23% of revenue or $2.48 per subscriber per month in 2018 with annual increases. The current rates for Sirius XM are 10.5% of Sirius XM’s “Gross Revenues” in 2016 and 11% in 2017. For Music Choice and Muzak, SoundExchange has proposed a per subscriber per month rate starting at $ 0.019 per subscriber per month with annual increases. The current rate is 8.5% of Gross Revenues in both 2016 and 2017.

The CRB will hold a hearing beginning April 19, 2017, which will last several weeks. After final briefing by the parties, the CRB will issue its rate determination by December 15, 2017.

Read the full story on Hypebot.

Top Music News Stories

Are Higher Royalty Payments Really Coming Soon From Sirius XM? Bobby Owsinski claims “SoundExchange likes to reach for the stars when it comes to proposed rates; though these seem reasonable for everyone involved in the music business, effectively doubling a rate does put any distributor in an immediate financial hole.”

NMPA Calls For Facebook To Sign Music Publishing Deals. “Facebook’s inactivity and unresponsiveness has left publishers no other choice but to attempt to remove the music that amounts to stealing from their songwriters — To aid in this effort, NMPA and our member publishers have sent thousands of takedown requests, but this is merely a drop in the bucket.”

Does The Music Industry Need To Dump Non-Discretionary Pricing? MiDiA Research’s Mark Mulligan claims in a new blog piece that one of streaming music’s top priorities “should be to ensure that European music fans get a fair deal compared to their US peers.”

Pandora Premium Set For January After December Unveiling. “It will have all the features of Plus, so the rewinding, skipping, offline etc — but it will now include the ability to search and play, the ability to build and share playlists, taking everything offline and many, many more Pandora features that we can’t reveal now for competitive purposes,” said CEO Westergren.

Apple Music Revenues Up 22% Despite Device Decline. Despite falling device sales, “App Store revenue continued to skyrocket, while Music revenue grew by 22% thanks to the growing popularity of Apple Music,” CEO Tim Cook told analysts.

Universal Music, Avenged Sevenfold To Launch VRLIVE Virtual Reality Concert Platform. “We are excited about our partnership with Universal Music Group as it gives us the opportunity to provide the viewing audience with unprecedented levels of access,” stated VRLIVE Founder and CEO Heiner Lippman.

Sub Pop’s Founder Launched A Fun Music Remixing App. 8Stem is an extremely slick mobile app for iOS that turns remixing into a simple drag and drop process — Find a song you like (Seattle-based Merge signee Telekinesis jumped out at me), click Remix This, and the app will lay it out, broken down into wave forms and sections.

Our best wishes for a great week! – MediaNet

Follow MediaNet! – Facebook | Twitter | LinkedIn | Medium

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.

RECAP: Pandora Nearing On-Demand Deals, Dubset Inks Deal with Sony/ATV, More News in U.S. Publishing

Posted by Glen Sears | August 22, 2016 9:16 am | No Comments

BN-PL848_PANDOR_P_20160818153948

Story of the Week

Pandora Nears Deals For On-Demand Streaming
Pandora Media Inc. is aiming to start expanding its internet-radio service as soon as next month, offering its hallmark free tier as well as two new monthly subscription options that will mark its foray into on-demand music streaming, said people familiar with the matter.

While the music industry broadly supports the new paid tiers, some record-label executives are still wary of granting Pandora permission to launch its free service in new foreign markets without the ability to control which songs they put on the free tier.

The foreign expansion could jump-start growth for Pandora, which has seen its listenership plateau in recent years at about 80 million active monthly users. Most listeners use Pandora’s free tier, with about 4 million subscribing to an ad-free version of its service, Pandora One, for $5 a month.

Read the full story on The Wall Street Journal

Top Music News Stories

Dubset Inks Deal With Sony/ATV. The Sony/ATV news comes on the heels of Dubset’s landmark rights agreement with the National Music Publishers’ Association (NMPA), giving hundreds of independent songwriters and publishers access to an emerging new royalty system.

Russian Collection Societies Break Ties Amidst Fog of Fraud. Earlier this month, several rights holders registered with RAO called for the organization’s management to be replaced and that fundamental changes to its charter be made, amidst major allegations of embezzlement.

What Is YouTube Red Paying Artists? Digital Music News claims to have been leaked an earnings statement from a “chill electronica catalog” showing the per stream and per-publisher royalty payouts for YouTube Red.

Samsung is shutting down Milk Music in September. Samsung will be shutting down Milk Music on September 22nd, urging its Galaxy and Note smartphone users to switch over to Slacker Radio, which powered the system.

Streaming Music Business Bigger Than Previously Thought. Glenn Peoples from Pandora claims “These adjusted streaming numbers are a good reminder there’s more to the streaming market than on-demand services that dominate the media’s attention.”

“Dept. of Justice’s New Decision Could Wreak Havoc on International Rights.” “When it needs fixing… don’t break it further.” Gadi Oron, the Director General of CISAC, laments the global implications of a new decision.

A Primer for the World of Music Licensing and Its Pricing. To help readers better understand this labyrinthine world, Ed Christman at Billboard put together an explainer, organized from simple to complex.

Our best wishes for a great week! – MediaNet

Follow MediaNet! – Facebook | Twitter | LinkedIn | Medium

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 | May 23, 2016 9:16 am | No Comments

Electric-Jukebox-Infographic-4-700x364

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

Follow MediaNet! – Facebook | Twitter | LinkedIn | Medium

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!

The MediaNet Blog

Insights, News, Announcements, and Updates on MediaNet and the ever-changing world of music, technology, industry, and law.

Get Weekly Music News Updates Directly To Your Inbox!

Recent posts

Spotify and Sony Reach Deal, Amazon Music Grows, Facebook Reveals Music Plans
July 17, 2017
Soundcloud Has A Really Bad Week, Apple and Deezer Show Interest, Concord Grabs ex-Warner Catalog
July 10, 2017
Pandora CEO May Be Stepping Down, Apple Music Wants Lower Royalty Payments, TuneCore Nears $1B Revenue
June 26, 2017

Archive

Categories

Powered by WordPress