A handful of variables, including subscriber acquisitions, increased ad revenue and possible rising subscription costs, will create a multiplier effect that far surpasses the small increases in Phonorecords IV royalty rates. The same forces that built today’s music business are widely expected to continue for the foreseeable future. Streaming will expand as download and CD sales trail off.
The startup claims to be the first blockchain music creation platform, allowing creators to compose, collaborate and sell their music on the blockchain. The startup says that it lets musicians “compose and mint their songs as fully on-chain NFTs”. Arpeggi also claims that its Arpeggi Studio is the only on-chain digital audio workstation (DAW).
Speaking at Communacopia on Monday, Cooper suggested that Warner Music Group is investing an “enormous amount of A&R resources” across a bigger number of artists than it once did – including superstars and non-superstars. This, he said, constitutes a “portfolio” strategy that on average results in “mid to high teen [percentage] returns” for WMG.
The Google-owned company plans to let more video creators earn money from the platform, lowering the barriers to entry for its partner program, according to audio from a YouTube all-hands meeting on Thursday. YouTube is expected to make the announcement at an event on Tuesday. It “is the largest expansion we’ve done in several years creating new ways for creators to join the program,” Amjad Hanif, vice president of product management and creator products, said in the staff meeting.
Before NFTs, the next wave of internet musicians was creating music for virality in short video clips. “There is no doubt that artists have been freed creatively by NFTs. They no longer have to write music that will work on a 30-second TikTok video,” says Stern. One example can be seen with NFT musician Sammy Arriaga, who leveraged his internet community on TikTok and Twitter to sell out over 4,000 music NFTs.
Podimo, a Denmark-based podcast and audiobook subscription platform that competes with the likes of Spotify, Apple, and Luminary, has raised €58.6 million ($58.7m). The company says that the funding will go towards market expansion, content, and enhanced investments in tech and product. The latest raise follows Podimo’s $78 million Series B round in November.
Wez Saunders, who was recently announced as the company’s new CEO, has revealed plans to set a 30% minimum for digital royalty rates for any recording artist or producer within the label group. The majority of the electronic music-focused label’s roster already have rates of at least 30% but, according to the new plans, as of this month, a 30% minimum rate has become standard.
Night Capital will focus on “acquiring established consumer-facing companies in partnership with leading talent,” according to a press release. Translation: Night will use its nine-digit war chest to pick up majority stakes in the companies it backs. Then it will connect those entities to creators, who will help guide “the strategic vision and future business growth” of Night Capital’s assets.
If the creator economy is booming, why are some of the most prominent creator-economy companies in the music industry’s orbit laying off staff? It’s a question you can expect to be hearing more often, as the excitement around trends in social media and DIY artistry fails to insulate companies serving these sectors from economic headwinds. Or, indeed, hubris.