Finance

Reservoir Media posted a double-digit revenue hike during Q2 2022 as sync and digital turned in material year-over-year gains.  Per the breakdown, the aforementioned $24.3 million in total revenue marks a 46 percent YoY boost when also factoring for income from acquisitions Reservoir’s made in the interim; the business is said to possess some 140,000 copyrights and 36,000 masters.

Source: Reservoir Media Posts 46% Q2 ’22 Revenue Jump As Sync Thrives

Music industry veterans Hank Forsyth and Dan McCarroll are teaming up with Carlyle Global Credit to launch a venture called Litmus Music. New York-based Litmus says that it will focus on acquiring and managing both publishing and recorded music rights, with Carlyle Global Credit committing an initial $500 million to do so.

Source: $500m-backed Litmus Music launches to buy publishing and recording rights

Warner Bros. Discovery  is exploring launching a free, ad-supported streaming service, its chief executive said, the latest effort by a streaming giant to reach a broader audience as the competition for users intensifies. The free service would cater to cost-conscious consumers and serve “as an entry point to our premium service,” he said.

Source: Warner Bros. Discovery Weighs Free Ad-Supported Streaming Plan

MUSO, a London-based data company that tracks global piracy and unlicensed media consumption, has received a £3.2 million ($3.9m) investment from UK-based Puma Private Equity. MUSO’s services are used by the likes of Amazon Studios, National Association of Theatre Owners (NATO), NOS, Lionsgate, MNRK (formally eOne Music), Sony Interactive Entertainment Europe, and more.

Source: Piracy tracking startup MUSO raises $3.9m from Puma Private Equity

Universal Music Group signed a fresh licensing agreement with Meta in Q2, has concerns over the user-centric (‘Fan Powered’) streaming payout model – and thinks it “inevitable” that rising interest rates are going to drive down valuations of music catalogs. Those were some of the key takeaways from UMG boss, Sir Lucian Grainge, and his senior management team’s discussion with analysts on Universal Music Group’s Q2 earnings call last Wednesday.

Source: Sir Lucian Grainge on Universal’s new deal with Meta – and his belief that investment banks don’t ‘have the skill-sets or ability to exploit music rights’

Attorneys for the Justice Department and Penguin Random House squared off on Monday in the first day of an antitrust trial, as the government challenges the publishing giant’s proposed $2.2 billion acquisition of Simon & Schuster. “This proposed merger must be stopped,” John Read, the Justice Department’s attorney, said in opening arguments.

Source: Penguin Random House-Simon & Schuster Merger Won’t Drive Down Author Advances And They Will “Continue To Go Up,” Publisher’s Attorney Says At Opening Of Antitrust Trial — Update

Web3 company and NFT marketplace OneOf has raised over $8 million in new strategic funding. The firm says the round will accelerate the development of what it calls its “environmentally sustainable NFT marketplace”. In May 2021, OneOf raised $63 million in a seed round from prominent tech and music industry veterans.

Source: Quincy Jones-backed NFT platform OneOf closes $8m funding round

Lyrics-providing platform Musixmatch has secured a significant investment from TPG Growth, “the middle market and growth equity platform” of the asset management firm TPG. The strategic partnership advances Musixmatch’s goal of providing lyrical content, enriched metadata, tools, and services while expanding its offerings internationally.  Musixmatch has provided metadata to many digital service providers (DSPs), including Amazon Music, Apple Music, Google, Instagram, Spotify, and Tidal. 

Source: Lyrics Platform Musixmatch Announces Investment From TPG

Sony’s global music rights operation – across recorded music and music publishing – generated USD $2.03 billion in the three months to end of June 2022. The $2.03 billion figure was up 11.7% year-on-year (vs. calendar Q2 2021) at US dollar-converted constant currency. In monetary terms, Sony’s overall music rights operation (recorded music plus music publishing) generated approximately $212 million more in calendar Q2 2022 than in the prior-year quarter.

Source: Sony generated over $2bn from recorded music and publishing in calendar Q2; recorded music revenues were up 11.2% YoY

The Big Three record label unveiled its second-quarter showing – and its continued streaming growth – this afternoon. In total, Universal Music Group said that it had pulled down €2.54 billion (the dollar and the euro were nearly even at the time of writing) during Q2 2022, which reflects the initially mentioned 25.4 percent YoY boost as well as a 17.3 percent gain in constant currency (CC).

Source: Universal Music Group Revenue Jumps Amid Streaming Growth