Finance

According to Reservoir founder and CEO, Golnar Khosrowshahi, Reservoir’s upcoming pipeline of potential deals “remains robust”. Khosrowshahi added that her company expects to “deploy over $100 million in new capital in fiscal 2023 that will help us broaden and further diversify our portfolio”.

Source: Reservoir generated $107.8m in its first year as a public company – and spent over $224m across 110 deals

The National Music Publishers’ Association has claimed that the major labels took in a staggering 58.6 percent of 2021’s $9.8 billion in total streaming royalties – while continuing to tout its close ties with the Big Three, thereby raising renewed questions about the precise extent of their pull. This and other interesting datapoints came to light during NMPA head David Israelite’s recent speech in New York City, delivered as part of his organization’s annual meeting.

Source: Major Labels Took In 58.6% of Streaming Royalties In 2021, NMPA Says

Spotify closed the deal to acquire audiobook distributor Findaway, touting a “substantial market opportunity” in audiobooks. The company operates AudioEngine, a business-to-business audiobooks marketplace, and self-publishing platform Findaway Voices. According to Spotify, Findaway’s technology gives the company access to the growing audiobooks market — which Spotify execs said is expected to grow from $3.3 billion today to $15 billion by 2027.

Source: Spotify Closes Acquisition of Findaway, Mounting Challenge to Audible in Audiobooks

The startup says that its new fund, backed by investment firm Preserver Partners, will see selected indie artists receive financial support as well a being assigned “a team, infrastructure, and resources comparable to major labels while maintaining ownership of their music.” Preserver, also based in Memphis, is headed by President and Chief Investment Officer Floyd Tyler, and has nearly $300 million in assets under management.

Source: Connect Music Group launches $10m indie artist fund backed by investment firm Preserver Partners

There are more than 550 million paying music subscribers worldwide, according to estimates from MIDIA Research. Of that, Spotify claims 182 million, according to the company’s latest disclosures. But how many more paying subscribers are out there? According to Hipgnosis Songs founder and CEO Merck Mercuriadis, more than 1.5 billion people have yet to initiate paid music streaming accounts.

Source: Music Streaming Isn’t Plateauing One Bit, According to Hipgnosis CEO

Spotify wants to make audiobooks the next pillar of its business. On Wednesday, company executives pitched the audiobooks business to investors as their next target for industry domination. When they launch the audiobooks vertical (which is TBD), it could have huge ramifications not only for Spotify’s own business, but for the publishing industry as well.

Source: Spotify comes for audiobooks

Seoul-based Beyond Music, a company calling itself “the Korean version of Hipgnosis“, has been splashing cash in the music rights market in Asia, and says that it now wants “to conquer the global music IP market.” Beyond Music claims to be Asia’s largest single music IP asset management company, with current operating assets of approximately 300 billion South Korea Won (USD $200m).

Source: After raising $200m and buying up rights in Asia, Korea’s Beyond Music wants ‘to conquer the global music IP market’

On Songistry’s website, the company describes itself as “a frictionless discovery and licensing engine that democratizes access to tv/ film, advertising and gaming licensing opportunities for music creators.” It adds that its “workflows allow licensee’s to identify music with precision and accuracy using proprietary AI.”

Source: AI-based music licensing startup Songistry raises $5m

In a clear reference to Netflix’s disappointing Q1 performance – and forecast that it will lose 2 million more net subscribers in Q2 – Ek said: “I personally look at what’s happened in the video streaming business and I wonder to myself if that industry didn’t get ahead of itself. Because frankly, yes, it did increase prices, but it’s also now finding itself in a position where it’s harder and harder to find future growth.”

Source: Music’s biggest companies are waiting for a Spotify price rise. For now, Spotify isn’t budging.

Since launching in November 2020, beatBread claims to have made advances to almost 400 artists and labels “across multiple genres, six continents, and a broad range of career stages”. The company says it is working with artists across more than 30 different distributors including Ingrooves, The Orchard, DistroKid, United Masters, Symphonic, Horus Music and Too Lost.

Source: After raising $34m, beatBread closes ‘seven figure artist financing deal’ with singer-songwriter Elley Duhe