Finance

Netflix Adds 8.8 Million Subscribers in Q4, Cites Competition for Lower U.S. Gains

Netflix beat its forecast for overall subscriber additions for the fourth quarter of 2019, while it brought in fewer than expected U.S. streaming customers. “Our low membership growth in [the U.S. and Canada] is probably due to our recent price changes and to U.S. competitive launches,” the company said in its quarterly shareholder letter.

Source: Netflix Adds 8.8 Million Subscribers in Q4, Cites Competition for Lower U.S. Gains

Entertainment Companies Spend $121 Billion on Original Content in 2019

U.S. media and entertainment companies spent over $120 billion on original content, including movies and TV shows, in 2019, per an analysis conducted by Variety Intelligence Platform. It’s a whopping sum fueled by the increasing investment of players including AT&T’s HBO, which expanded its production of original content by 50%, to 150 hours.

Source: Entertainment Companies Spend $121 Billion on Original Content in 2019

Analysis: Tencent’s Move to Buy 10% of UMG Shows the Global Music Business Is In Excellent Health

When looking at the implications of this deal, it is clear to both investors and industry insiders that the big winner here, long term, is Tencent. Tencent and its investors know the global recorded music business has been on an upward trajectory thanks to the adoption of streaming and better digital connectivity in emerging territories.

Source: Tencent’s Move to Buy 10% of Universal Music Group Shows the Global Music Business Is In Excellent Health

Universal Music Group sells 10% stake to Tencent-led Consortium

Tencent Holdings Ltd has today (December 31) informed its shareholders that a Tencent-led Consortium has signed a share purchase agreement with Vivendi to acquire 10% of Universal Music Group. The deal has been struck with UMG holding an enterprise value of €30bn ($33.6bn), meaning that over $3bn will land in Vivendi’s coffers as a result of the acquisition.

Source: Official: Universal Music Group to sell 10% stake, worth over $3bn, to Tencent-led Consortium

Equity Firm Agrees to Buy OverDrive

The private equity firm KKR has signed a definitive agreement to acquire OverDrive in a deal announced on Christmas Eve. KKR bought the leading digital platform that delivers e-books and digital audio to libraries and schools from Rakuten USA, a subsidiary of Japan’s Rakuten Inc. Rakuten bought OverDrive in April 2015 from founder Steve Potash for $410 million.

Source: Equity Firm Agrees to Buy OverDrive

Wyclef Jean’s new company  receives backing from finance firm Sound Royalties

The artist, songwriter, producer, actor and activist is using financing from Sound Royalties to back his music publishing and distribution company focused on creative talent in Africa and other emerging markets. Wyclef Jean’s new company, Carnival World Music Group, provides creative artists with music publishing and distribution resources.

Source: Wyclef Jean’s new company Carnival World Music Group receives backing from finance firm Sound Royalties

Sony Music Entertainment makes strategic investment in podcast production company Neon Hum

Having named the team spearheading its worldwide podcast strategy at the start of the month, Sony Music Entertainment has made another big podcast-related announcement. The company has made a strategic investment in podcast production house Neon Hum, forming a new creative partnership between the two companies to expand their development of original podcast content.

Source: Sony Music Entertainment makes strategic investment in podcast production company Neon Hum

Warner Music, Providence Equity Launch $650 Million Fund to Invest in Song Catalogs

Warner Music Group and Providence Equity Partners today announced plans to invest in world-class recorded music and music publishing catalogs via a newly established platform, Tempo Music Investments, that has raised $650 million. The move is similar in some ways to the launch of Hipgnosis, which launched last year and has raised more than $800 million to acquire full or partial stakes in the catalogs of many songwriters who have enjoyed multiple global hits.

Source: Warner Music, Providence Equity Launch $650 Million Fund to Invest in Song Catalogs

Get the latest RightsTech news and analysis delivered directly in your inbox every week
We respect your privacy.