Welcome to Music Business Worldwide’s weekly roundup – where we make sure you’ve caught the five biggest stories that have made headlines over the past seven days. The MBW Roundup is supported by Centtripwhich helps over 500 of the world’s best-selling artists maximize their income and lower their touring costs.
Facebook has been making a lot of headlines lately.
Just last week, we learned that the social platform’s parent company, Meta, was being sued by Epidemic Sound in Sweden for alleged copyright infringement.
Then, days later, MBW confirmed that Kobalt Music Publishing – home to 700,000 songs – is pulling its entire catalog from Facebook and Instagram in the US.
Why? Because, according to an internal memo, the existing US license agreement between Kobalt and Meta has expired and the two parties have failed to reach a new agreement.
It wasn’t all bad news from Zuckerberg’s offices et al this week, however.
On Monday, July 25, Meta revealed that it will now directly share a portion of Facebook’s ad revenue with music rights holders for certain user-generated content videos.
This new system works as follows: video creators who choose to use licensed music in videos longer than 60 seconds on Facebook will receive a 20% share of the advertising revenue generated by their creation.
The rest 80% of this advertising revenue will then be split between the appropriate music rights holders and Meta itself.
Elsewhere in the global music business this week, earnings season was in full swing.
On Wednesday July 27, Spotify released its second quarter results and confirmed that it added 6 million net Premium subscribers to its user base in the second quarter, bringing its total global subscribers to 188 million.
It was bigger than the 5 million subscribers SPOT previously told investors it planned to add in the second quarter.
Meanwhile, also on Wednesday, Universal Music Group released its own second quarter 2022 fiscal results (covering the three months through the end of June).
UMG’s total revenue in recorded music, publishing and other businesses increased by 17.3% over one year at constant exchange rates at 2.535 billion euros (US$2.70 billion) in the quarter.
And today (July 29) we reported that Sony’s global music rights operation – across recorded music and music publishing – generated USD $2.03 billion over the three months to the end of June 2022 (Q2 2022 calendar), up 11.7% year-over-year (compared to calendar Q2 2021) at constant currency converted into US dollars.
Here’s what happened this week…
1) KOBALT REMOVES 700,000 SONGS ON FACEBOOK AND INSTAGRAM. IS THE MUSIC BIZ HEADING FOR A HISTORICAL BUST-UP WITH META?
The other day, MBW jokingly remarked that the global music industry has gotten a bit “comfy” this summer – with a distinct lack of companies (publicly) falling out.
Please, loyal reader, allow us to strike this idea from the record.
On Sunday July 24, MBW confirmed that Kobalt Music Publishing – home to 700,000 songs – is pulling its entire catalog from Facebook and Instagram in the US….
2) FACEBOOK WILL NOW SHARE A PROPORTION OF ADVERTISING REVENUES DIRECTLY WITH MUSIC RIGHTS HOLDERS FOR UGC VIDEOS. YOUR MOVEMENT, TIKTOK…
If you’ve been paying attention to MBW this month, you’ll know there’s a growing debate in the industry about “emerging” social platforms and the different models they use to pay cardholders. music rights.
Major music executives are starting to call on TikTok, Meta and others to exclusively pay publishers and record labels via lump sum licensing advances (or so-called “buy-out” deals) – rather than sharing an agreed proportion revenue for each monetized play/use of music on their platforms.
Monday (July 25), then, was a big day: Meta announced that it was changing the way artists and music rights holders were going to be paid from Facebook – and would now be moving to a ” revenue share” for user-generated video content…
3) ONCE AGAIN, SPOTIFY AVOIDS NETFLIX TROUBLES: MUSIC STREAMER ADDED 6M NET SUBSCRIBERS IN Q2
We can’t talk about streaming subscribers these days without mentioning Netflix.
The video streamer lost nearly a million net subscribers in Q2 (three months to the end of June) – which was better than expected but, after losing 200,000 net subscribers in Q1, it’s obviously not not good news either. So what about Spotify?
Did it suffer from a similar trend in its second quarter numbers? Did her subscribers’ performances send a worrying message to the music industry?
4) UNIVERSAL MUSIC GROUP GENERATED $2.7 BILLION IN Q2; RECORDED MUSIC SUBSCRIPTION STREAMING REVENUES INCREASED 7.0% YEAR
In recent years, the music rights industry has grown accustomed to major music companies posting double-digit growth in streaming subscription revenue every quarter.
On Wednesday, July 27, that narrative changed somewhat, as Universal Music Group, the world’s largest music rights company, released its second quarter 2022 fiscal results (covering the three months through the end of June).…
3) SONY HAS GENERATED MORE THAN $2 BILLION FROM RECORDED MUSIC AND CALENDAR EDITING Q2; RECORDED MUSIC REVENUES INCREASE 11.2% YEAR-ON-YEAR
Sony’s global music rights operation – across recorded music and music publishing – generated $2.03 billion in the three months to the end of June 2022.
That’s according to MBW’s calculations based on Sony Group Corp’s second quarter (fiscal first quarter) 2022 results, as announced by the Japanese company earlier today (July 29).
The $2.03 billion figure was up 11.7% year-over-year (compared to the second quarter 2021 calendar) at constant currency converted to US dollars.
(Understanding Sony’s results at a constant currency level converted to US dollars is particularly important for the timing of the second quarter of 2022, when the strength of the dollar against the Japanese yen – the currency in which Sony reports its earnings – reached highs. historical levels.)…
MBW’s Weekly Roundup is supported by Centtrip, which helps over 500 of the world’s best-selling artists maximize revenue and lower touring costs.
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