Daily Mail publisher DMG Media has made a “significant investment” in Prorata.ai, a generative artificial intelligence platform that plans to share revenue with publishers each time their content is used to answer a user query. The deal gives Prorata access to DMG Media’s content, which includes the archives of the Mail, Mail Online, Metro, the i and New Scientist.
Source: DMG Media invests in publisher-friendly generative AI start-up Prorata
Promise says it will produce films and TV shows and “pioneer new formats, empowering both gen AI artists and established Hollywood talent to bring ambitious, creative visions to life.” A key piece of the startup’s business model is proprietary software that will facilitate “a reimagined production process.” The company’s trio of founders have digital-media bona fides.
Spotify cranked up the volume with another strong quarter, packing on 6 million paying subscribers globally in Q3 and issuing an upbeat forecast for the year-end quarter. Spotify gained 14 million total monthly active users (free and paid) to stand at 640 million at the end of Q3. Premium subs stood at 252 million, with growth in the quarter across all regions and “outperformance” led by Europe and Latin America, the company said.
Source: Spotify Tops Q3 Forecasts, Reaches 252 Million Premium Subscribers as Revenue Climbs 19%
Blackstone’s Hipgnosis has successfully completed a $1.47 billion music rights asset-backed securities transaction (i.e. bond offering). The ABS deal, referred to as Lyra 24-2, sees investment giant Blackstone raise $1.47 billion in debt financing backed by royalties from the 45,000-song Hipgnosis Songs Fund portfolio it acquired in July. Blackstone acquired Hipgnosis Songs Fund‘s assets from HSF’s then-public shareholders in a transaction worth USD $1.584 billion.
Source: Blackstone’s Hipgnosis closes $1.47bn asset-backed securities transaction
Perplexity is finalizing a new funding round that would value it at $9 billion—triple its valuation from just a few months ago—the latest sign of continued investor excitement for artificial intelligence startups. The funding round would turn Perplexity into one of the most valuable young AI startups to emerge out of the generative AI boom. It was valued at just $520 million at the start of this year.
Source: AI Startup Perplexity to Triple Valuation to $9 Billion in New Funding Round
While Shamrock doesn’t confirm that it will be looking to make acquisitions in the music industry specifically via the new funds, it did say that it will focus on “buyout and later-stage growth equity investments in middle market companies” across its target sectors. Shamrock’s target sectors include: media, entertainment, content, communication, sports, marketing, and education.
Startups need to understand (and respect) music and music’s value more, but equally copyright owners need to stop putting unnecessary obstacles. The startup world is predicated on the most terrifying failure rates. Even if they raise money, they are often handing over too much equity and will hand over even more to raise the next funding round; and if they need to license music, the deals are always in the labels’ and publishers’ favour and can be pulled when the short licensing terms expire.
Source: Merlin CEO Jeremy Sirota: “Licensing has always been too restrictive”
In a quarterly earnings call that was overwhelmingly about AI and Meta’s plans for it, Zuckerberg said that new, AI-generated feeds are likely to come to Facebook and other Meta platforms. Zuckerberg said he is excited for the “opportunity for AI to help people create content that just makes people’s feed experiences better.”
Source: Zuckerberg: The AI Slop Will Continue Until Morale Improves
A report from Enders Analysis has argued that generative artificial intelligence “will not alter the fundamental commercial reality for the news” as the shift online did previously. The research firm cautioned publishers to be “realistic” about the productivity and revenue gains possible from AI, but added that ignoring AI would be “a mistake”.
Source: How publishers use AI to boost productivity: From audio editions to exploiting archives
The company said on Monday (October 28) that the transaction would “fuel strategic growth and acquisition[s]” and that it underscores its “ongoing effort to strategically grow and monetize its music assets and position the company as a consequential force in the music industry”. Concord’s ABS transaction is securitized by royalties from its catalog of over one million compositions, master recordings, and related assets.
Source: Concord closes $850m Asset-Backed Securities transaction to ‘fuel strategic growth and acquisitions’