Deezer is shifting from targeting small and emerging territories to renewing its focus on large and established music markets, where consumers are more willing to pay for subscriptions. CEO Jeronimo Folgueira calls the RTL tie-up a “transformative” deal that gives Deezer the scale it needs to break into Germany, the world’s fourth-biggest recorded-music market, with revenue of $1.6 billion in 2021, up 12.6% from 2020, according to IFPI.
Finance
YouTube Music and Premium surpass 80m paid subscribers
YouTube has surpassed the milestone of80 million paid YouTube Music and Premium subscribers worldwide. That subscriber figure, which YouTube says includes triallists, marks a 30 million(or 60%), increase on the last subscriber figure to be publicly announced for YouTube Music, which was 50 million, just 13 months ago.
Source: YouTube Music and Premium surpass 80m paid subscribers
Meta to Lay Off 11,000 Staffers, Cuts Workforce by 13%, ‘Reduces Perks’
In a company-wide memo that was all posted on the company’s public pages, Zuckerberg blamed the pandemic, saying that the digital growth and “surge of e-commerce” experienced during the early days of COVID-19 — when lockdowns meant people were stuck at home — seemed as though it would become a “permanent acceleration that would continue even after the pandemic ended.”
Source: Meta to Lay Off 11,000 Staffers, Cuts Workforce by 13%, ‘Reduces Perks’
Disney profits take hit despite increase in Disney+ subscribers
Walt Disney said Tuesday its marquee streaming service, Disney+, gained more subscribers than Wall Street had expected, but investment costs dragged quarterly earnings below analysts’ targets. The entertainment company is spending billions to compete with Netflix and others for streaming television customers as traditional TV declines in popularity. Disney+ reported 164.2 million subscribers in the fiscal fourth quarter, surpassing Factset estimates of 161 million.
Source: Disney profits take hit despite increase in Disney+ subscribers
In Written Opinion, Judge Florence Pan Delivers Knockout Blow to PRH, S&S Merger
In the judge’s economical 80-page decision, Pan found the U.S. Department of Justice easily showed the proposed merger would likely “lessen competition” in the market for book rights in violation of Section 7 of the Clayton Act. “The government has presented a compelling case that predicts substantial harm to competition as a result of the proposed merger of PRH and S&S,” Pan concluded.
Source: In Written Opinion, Judge Florence Pan Delivers Knockout Blow to PRH, S&S Merger
Sharing the Wealth: Opening the Music-Rights Investment Game to the Masses
EXTRA From housing to securities to precious metals, many asset markets around the world are reeling in the face of persistent inflation, rising interest rates and fears of recession. While capital has continued to flow into the market for for rights-based assets, including music publishing catalogs, those waters, too, have shown some choppiness of late as well.
Former MoviePass Execs Indicted on Securities Fraud Charges
Two former leaders of MoviePass have been indicted on securities fraud charges for allegedly deceiving investors about the company’s business model and sustainability. Theodore Farnsworth, the former CEO of parent company Helios & Matheson, and Mitchell Lowe, the former CEO of MoviePass, were each charged with one count of securities fraud and three counts of wire fraud.
Source: Former MoviePass Execs Indicted on Securities Fraud Charges
Penguin Seeks Simon & Schuster’s Support to Fight for Imperiled Book Merger
Source: WSJ News Exclusive | Penguin Seeks Simon & Schuster’s Support to Fight for Imperiled Book Merger
Domain Capital closes new $700m+ fund
Domain and its subsidiary, Domain Capital Advisors (DCA), have just announced that they have closed more than $700 million of equity commitments for a new entertainment fund and co-investment vehicle focused on film, television, and music. In a press release announcing the news, Atlanta-based Domain says that it has already deployed more than $170 million of this new fund for deals across entertainment media.
Paramount Sees Q3 Profit Slump on Content Investments
Shares of Paramount Global fell more than 10% in early trading Wednesday after the New York owner of the CBS broadcast network and Paramount movie studio said third-quarter net income fell due to investments in content for streaming and declines in its main business of securing revenue from advertisers and affilates.