March, 2021

The jungle of music rights acquisitions has become a crowded and expensive place. But the game just changed again – as an 800-pound gorilla enters the fray. BMG and investment giant KKR have announced an alliance that will see them team up to acquire and manage music copyrights.

Source: A new catalog acquisition juggernaut is born, as BMG and KKR strike deal to jointly buy music copyrights

When the major music companies publish their quarterly figures, analysts all too often take a blinkered view – exclusively assessing the impact of streaming and duly limiting their focus to revenue from recorded music. This is plain wrong: streaming services pay record labels, but they also pay CMOs who in turn also pay other licensors.

Source: The Global Value of Music Copyright reached a record high of $31.6bn in 2019, up $2.1bn on prior year. Streaming makes up 47%. — Tarzan Economics

SVODs have for years ignored beyond-family password sharing, viewing it as a variation on sampling that ultimately pays off in sufficient conversions. But facing intensifying competition and near saturation in the U.S. market, Netflix has recently begun testing methods to deter unauthorized password sharing, including some offers that include a 30-day trial.

Source: Video Insider: Password Sharing ‘Costs’ Streamers $25B Per Year In Potential Revenue, $6B for Netflix: Analyst

From June through Friday, some 29,800 NFTs involving musicians have generated $42.5 million in primary sales, with an average per-unit transaction value of $1,427, according to a database compiled by music-technology researcher Cherie Hu. So far, most buyers are crypto-savvy speculators helping send prices soaring. The music business is hoping the market will develop for real fan participation—at fan-accessible valuations.

Source: Musicians Turn to NFTs to Make Up for Lost Revenue

Authors have made it abundantly clear that they fear the fallout if the deal goes ahead. When it was first announced last November, the Authors Guild in the US was quick to register its objections. The acquisition would “creat[e] a huge imbalance in the US publishing industry”, it warned, calling on the US justice department to step in.

Source: Authors fear the worst if Penguin owner takes over Simon & Schuster