Welcome to Music Business Worldwide’s Weekly Roundup. Here are his five biggest stories that made headlines in the last seven days. MBW Roundup is st triphelps maximize income and reduce touring costs for over 500 of the world’s best-selling artists.
We are one week into the new year. The music business is picking up pace again after a well-deserved holiday OOO and ZZZ.
In the M&A space, Downtown acquired Curve Loose Systems, a London-based music technology company.
Meanwhile, Round Hill acquired a catalog of producer royalties and related rights from legendary rock producer Steve Lillywhite.
Elsewhere, Grammy-winning hip-hop trio De La Soul’s past catalog will roll out to the digital streaming service for the first time on March 3 through a new partnership with Reservoir Media and Reservoir-owned Chrysalis Records. announced that it will .
Also this week, we learned about hip-hop duo Black Sheep, best known for their 1991 album. wolf in sheep’s clothingis suing Universal Music Group over its ownership of Spotify shares in a class action lawsuit.
Meanwhile, TikTok rival Triller, which did not go public in the fourth quarter of 2022, is reportedly being sued by Universal over unpaid license fees.
Additionally, MBW explored five stats that set the scene for some of the standouts, tensions and hopes for the music business in 2023.
What happened this week…
1) 5 numbers that will define the music business in 2023
here we go again. After a much-needed holiday break, the music business is quietly back in action.
But what will 2023 be like for the industry and its key players?
I honestly don’t know exactly. What should I do?
(That’s one of the major flaws in this great industry, isn’t it? The music business has proven time and time again to be one of the most unpredictable things in the world of commerce.)
Anyway, here’s what we know. We know the following five stats really set the scene for some of the music business’s standouts, tensions, and hopes for 2023.
And we know that once we understand why each one is so important, we’ll probably be better prepared for whatever impact this year has on the music rights industry…
2) Universal Music Group sued by artists over Spotify stake in class action lawsuit
it’s not commont Global expansion of the music business It has cited itself in significant lawsuits in the music business, and that is the case today.
Hip-hop duo Black Sheep, best known for their 1991 album A Wolf in Sheep’s Clothing, are suing Universal Music Group in a class action lawsuit filed yesterday (January 4) in New York.
New York-based Andres Titus and William McLean have three main allegations through their attorneys:
(i) Black Sheep and other artists signed to Universal should have been paid 50% of their royalties by Spotify since 2011 under the terms of their agreements regarding “net income”;
(ii) UMG agreed to accept a lower royalty rate from Spotify in 2008 in exchange for receiving shares in the streaming service;When
(iii) Black Sheep and other artists should have also received 50% of UMG’s Spotify stake (or its value); That’s because, according to the duo’s lawsuit, this is “proportionate” to the royalty agreement.
Black Sheep alleges that Universal and other artists owed approximately $750 million in unpaid royalties as a result of these three claims.
Universal called Titus and McLean’s claims that they accepted a low royalty rate in exchange for Spotify’s stake “clearly false and ludicrous.” In a statement, UMG added, “We have a solid track record of fighting for our artists’ pay…”
3) U2, The Killers Producer Steve Lillywhite Sells Round Hill Music Rights
The music rights space kicked off this week with the news that Round Hill Music acquired a catalog of producer royalties and related rights from legendary rock producer Steve Lillywhite.
According to the company, Lillywhite’s production includes “some of the most successful songs and albums of all time,” from U2, The Killers and Morrissey to Talking Heads and The Rolling Stones.
Round Hill announced the deal this week, just weeks after MBW reported spending more than $200 million on 40 acquisitions in 2022.
Round Hill didn’t disclose the size of the deal with Lillywhite, but industry sources estimate the price was likely around $10 million, based on annual royalty income…
4) TRILLER did not complete its IPO in 2022. Currently being sued by Universal Music Group.
Triller was sued by Universal Music Group over unpaid license fees.
On Thursday (January 5), UMG filed a lawsuit against its US-based TikTok rival, alleging that it failed to pay licensing fees for the past three quarters.
The lawsuit also alleges that the company did not provide quarterly usage reports outlining Major’s use of music on the Triller app.
The news was first reported by Variety, which reports that UMG said in its complaint that it had also terminated its contract with Triller.
5) DOWNTOWN MUSIC HOLDINGS ACQUIRES CURVE ROYALTY SYSTEMS
Downtown Music Holdings has acquired Curb Loyalty Systems, a music technology company headquartered in London.
The latter company was founded in 2019 by Tom Allen, Richard Leach and Ray Bush. These are all veterans of music companies like Cooking Vinyl, Essential Music, and ADA.
Curve is the latest in a series of strategic acquisitions Downtown has made in recent years.
In addition to Curve, New York-based Downtown has acquired companies such as B2B music technology and services platform FUGA and indie distributor CD Baby. Downtown has also invested in the likes of Beatbread and Vampr.
MBW’s Weekly Round-Up is supported by Centtrip, which helps over 500 of the world’s best-selling artists maximize their income and reduce touring costs.global music business