MediaNet Blog

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

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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.

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

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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

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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

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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

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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.

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