Digest: Spotify Nearing WMG Deal and May List Directly, SoundExchange Acquires CMRRA, eMusic Relaunches
Posted by Glen Sears | May 15, 2017 9:28 am | No Comments
Story of the Week
Warner Music Boss Nears Royalty Deal With Spotify
Sources tell On the Money that Warner and Spotify are getting this close to a new royalty agreement and a deal could be signed by June; if inked, Daniel Ek’s Spotify would be on the way to its long-planned IPO — expected in the final quarter of 2017.
Top Music News Headlines
Spotify Valued At $13bn – And Is Pushing Ahead With A Direct Listing. The move would be the biggest test yet for the direct listing process, which for companies willing to list shares without raising capital eliminates the need for a Wall Street bank or broker to underwrite an initial public offering (IPO) along with many associated fees.
SoundExchange Moves Into Publishing Rights By Acquiring Canadian Body CMRRA. The organization has been thriving in recent years, but its business model faces some undeniable threats: SoundExchange’s biggest source of revenues, Pandora, is failing to grow its listener base – and recently inked direct licensing deals for the first time to cover its new three-tiered streaming product.
Pandora Secures At Least $150m Investment But May Still Sell. Pandora’s revenues grew by 6.3% year-on-year to $316m in the first quarter of 2017, however, the company’s net loss increased from $115.1m in Q1 2016 to $132.3m a year later, with a 9.4% hike in content acquisition costs to $187.4m one of the key reasons.
Australian Streaming Guvera Service Has Shut Down. According to CEO Herft’s letter to shareholders, the company will look into selling or commercializing some of its “valuable” intellectual properties in an attempt to get back on its feet.
eMusic Relaunches As Indie-Centric Music Service. The “fully overhauled and upgraded” eMusic is based around a music ownership model rather than an access streaming model and offers users free and discounted downloads, cloud-based storage, universal access on any device and a catalog of 32 million titles exclusively from independent labels.
Smule Raises $54M At $604M Valuation. Social music startup Smule has raised $54 million in a strategic financing round led by Tencent, used to expand the service, which has 54 million monthly active users creating over 20 million songs daily, into Asia.
Google Releases Study Defending YouTube’s Value To Music Biz; Trade Bodies Hit Back. According to a European study carried out by RBB Economics, if music content was removed from YouTube around 85 percent of the time that users spend on the platform would switch to lower value channels, such as TV, radio or internet radio.
iTunes and Apple Music Coming to Microsoft’s Windows Store. Microsoft said that once the app is released to the Windows Store, users of its just-revealed Windows 10 S operating system will get a “complete” iTunes experience, including Apple Music and full support for iPhone syncing.
Universal Music Group Revenue Rises 12.7%, Biggest Q1 In 15 Years. A UMG company spokesman said that the first quarter revenue was its highest first quarter total since UMG reported 1.365 billion euros ($1.48 billion) back in the first quarter of 2002.
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