Organizer | Yang Huyi Edit | Fan Zhihui
02.06-02.12
Weekly report at a glance
Large companies
>> 65th Annual Grammy Awards Announced, Ratings Up 30% Year-on-Year
>> Big Four Record Companies Drop Market Share on Spotify to 75%
>> Startups JKBX has a strategic partnership with GTS
>> TikTok's SoundOn restricts music from major labels
>> Tencent Music is listed on the Billboard global official website
>> Believe digital music sales reached 1 billion euros last year
>> Ingrooves signs an exclusive distribution agreement with the independent label Teamwrk
>> African streaming platform Mdundo has 23.4 million active users
Data control
>> Reservoir's revenue for the fourth quarter of 2022 was $29.9 million, up 16% year-over-year
>> Warner Music's fourth-quarter revenue was $1.48 billion, down 2.7% year-over-year
capital market
>> Goldman Sachs invests $110 million in live entertainment technology company Fever
>> Warner Music acquires a majority stake in Divo
>> Utopia sold data platform ROSTR to the founders
> Songtradr will acquire music technology company 7digital for $23.4 million
>> HYBE acquires American hip-hop label QC Music
>> HYBE officially announced its participation in the acquisition of SM Entertainment
>> MusicBird receives a $100 million loan to acquire music rights
Artist Dynamics
>> Grammy winner Tobias Jesso Jr.s sold the songwriting rights to Hipgnosi
>> Michael Jackson Estate Management is ready to sell its music library for $800 million
>> Zach Bryan signed a songwriting rights agreement with WCM
>> Tan Dun, an internationally renowned composer and conductor, signed with Deca Records, a subsidiary of Universal Music
>> Black Panther lead singer Zhang Qi flew solo
Live entertainment
>> The first 10,000-person rock outdoor concert was finalized
>> Chen Chusheng Graffiti Forest Tour set sail
>> Neon Garden's overseas tour officially announced
>> Clockenflap Festival announces the full lineup
Music variety
>> the first recording of "Endless Sound, Treasure Island Season", the guest lineup was confirmed
>> Migu and Xinhuanet produce the cultural and creative variety show "Looking for Voice"
Push song this week
Large companies
>> 65th Annual Grammy Awards Announced, Ratings Up 30% Year-on-Year
On February 6, the 65th Annual Grammy Awards were announced.
The album of the year is Harry Styles, "Harry's House", and the song of the year is Bonnie Raitt's "Just Like That".
The production of the year was Lizzo's "About Damn Time" and Best Newcomer was Samara Joy. Beyoncé won 4 awards including Best Dance/Electronic Album, and with 32 Grammy gramophones, he became the most Grammy-winning artist in history.
According to statistics, the 2023 Grammy Awards ceremony live TV and video streaming attracted more than 12.4 million viewers, setting a new record in viewership in the past three years, a year-on-year increase of 30%. The last time the Grammy Awards set a record was in 2020, when it attracted 18.69 million viewers.
>> Big Four Record Companies Drop Market Share on Spotify to 75%
On February 7, the four major record labels (in this case, Universal Music, Sony Music, Warner Music and independent music label Merlin) lost 12% of Spotify's market share in the past five years.
This data comes to light in Spotify's new annual investor report, which shows that 75% of the music songs played on Spotify last year were released by the big four major record labels.
Obviously, this means that a quarter (25%) of music traffic on Spotify last year was distributed by companies unrelated to mainstream music companies or Merlin. These companies include TuneCore (and its parent company Believe), UnitedMasters, and other distribution platforms for independent musicians.
However, according to Spotify's previous financial report, the market share of the four major record companies in Spotify reached 87% in 2017, and this number has gradually declined since then. Obviously, it has become an indisputable fact that mainstream companies have diluted their share of the streaming market.
There are now 100,000 new songs coming to music platforms like Spotify and Apple Music every day, and only a small fraction of them are released by mainstream companies.
In addition, the adoption of a dominant "pro-ratarate" royalty payment model by Spotify and others has led to a decline in market share for mainstream music companies' playbacks, while also affecting their share of revenue from the platform.
>> Startup JKBX has entered into a strategic partnership with GTS
On February 7, a new platform called JKBX (Jukebox) is under development that plans to provide fans, retail investors and music lovers with the opportunity to invest in music rights.
As a start-up by music industry veteran Scott Cohen, JKBX claims that its platform will "transform the music industry" by offering a share of music royalties from hit songs and pop artists on its platform.
Meanwhile, JKBX announced that it is partnering with electronic market maker GTS Securities LLC. The two companies signed a memorandum of understanding to establish a strategic partnership and combine JKBX's music industry expertise with GTS's financial markets, trading and technology expertise.
JKBX said it currently has more than $1.7 billion in exclusive music rights and expects to have more than $4 billion by the end of 2023, aiming to securitize and decentralize music royalties and allow retail investors to trade.
In 1997, Cohen co-founded Orchard, a music distribution and services company with partner Richard Gottehrer, who previously served as chief creative officer of Warner Music Group.
>> TikTok's SoundOn restricts music from major labels
On February 7, TikTok's independent distribution platform SoundOn has been restricting music from the three major labels as part of user testing after its launch in Australia.
Since its launch in March last year, SoundOn has gone live in the UK, US, Brazil and Indonesia. The platform allows musicians to upload their music directly to TikTok and Resso, as well as distribute music to platforms like Spotify, Apple music, and Instagram.
Last year, TuneCore, a digital distribution platform owned by Believe, a rival to a major record label, was selected as SoundOn's distribution partner.
The SoundOn platform pays 100% royalties to music creators for the first year and 90% thereafter, and offers a range of promotional tools and support.
>> Tencent Music is listed on the Billboard global official website
On February 8, the English version of Tencent Music officially landed on the Billboard global official website, allowing overseas users to view the hottest music content in the Chinese music scene.
As the only Chinese music chart in Chinese mainland to land on Billboard's global official website, the list always insists on witnessing true popularity with data, covering the music playback data of radio stations. It is hoped that through this cooperation, more excellent Chinese music will be heard by the world.
>> Believe digital music sales reached 1 billion euros last year
On February 8, music distribution and services company Believe reported that its digital music sales (DMS) reached the €1 billion milestone by 2022.
Believe says DMS is revenue generated by its digital store partners and social media platforms before royalties are paid to artists and labels.
Two months ago, Believe announced its results for the third quarter of 2022, with revenue of €197 million, up 36.9% year-on-year. In November, the company said it expected full-year 2022 revenue to exceed €750 million, up more than a third from 2021.
>> Ingrooves signs an exclusive distribution agreement with the independent label Teamwrk
On February 9, Ingrooves Music Group signed a global exclusive distribution cooperation agreement with the Australian independent label Teamwrk.
Ingrooves will serve all of Teamwrk's musicians, including returning rapper Masked Wolf, who released his new single, Never The Same, on February 10. This is the first global single released by Ingrooves and Teamwrk in collaboration.
Previously, Teamwrk and ADA/Warner Music Australia announced a collaboration in February 2021 to release Masked Wolf's albums in Australia and New Zealand.
Masked Wolf is best known for the global hit "Astronaut in the Ocean," which has amassed more than 1 billion views on Spotify to date and peaked at number six on the 2018 Billboard Hot 100.
>> African streaming platform Mdundo has 23.4 million active users
On February 9, African music streaming platform Mdundo added a net 10 million users in 2022, reaching 23.4 million monthly active users by the end of the year.
In the second half of last year alone, the company's unique active users grew by 15%. As an established player in the African music streaming space, Mdundo will reach its goal of reaching 50 million monthly active users by 2025.
In its year-end forecast, MDUNDO said subscription revenue is expected to account for 40% of total revenue over several years, as paying user revenue accounts for about 33% of total revenue from July to December 2022. Mdundo's advertising revenue grew by a whopping 89%, from $2.3 million in 2021 to $4.3 million in 2022.
More than 140,000 copyright holders have directly uploaded nearly 500,000 African songs on the Mdundo platform, a 32% increase from the end of 2021.
Data control
>> Reservoir's revenue for the fourth quarter of 2022 was $29.9 million, up 16% year-over-year
On February 8, Reservoir Media's revenue for the fourth quarter of 2022 (third quarter of fiscal 2023) was $29.9 million, an increase of 16% year-over-year from $25.8 million in revenue in the year-ago quarter.
The increase in revenue was primarily due to a 14% year-over-year increase in music rights revenue to $20.2 million. Strong performance in the company's Digital Licensing, Performance Rights and Sync Rights sub-segments drove growth, up 29%, 28% and 51%, respectively.
In addition, total recorded music revenue was $7.6 million, up 1% year-over-year. The increase was mainly driven by digital and neighboring rights revenue, which increased by 17% and 43%, respectively; Physical record revenue decreased 12% year-over-year.
In terms of profitability, Reservoir reported fourth-quarter operating income of $4.6 million, up 71% year-over-year.
>> Warner Music's fourth-quarter revenue was $1.48 billion, down 2.7% year-over-year
On February 9, Warner Music Group (WMG) announced its financial results for the fourth quarter of 2022 (first quarter of fiscal 2023) for the three months ended December.
According to the financial report, in the fourth quarter, WMG's total revenue (including recorded music, songwriting rights management, etc.) reached US$1.48 billion, down 2.7% year-on-year at constant exchange rates.
In the fourth quarter, recorded music revenue declined 5.6% year-over-year to $1,239 million in constant currency. Warner Music said the decline was due to lower revenue from digital music, physical sales, artist services and derivative rights.
In constant currency terms, streaming revenue declined 2.6% year-over-year to $780 million, physical record revenue declined 26.5% to $133 million, and artist services and derivative rights revenue declined 4.2% to $206 million.
In the company's other recorded music businesses, licensing revenue increased 16.9 percent to $97 million, driven by increases in broadcast fees, synchronization rights and other third-party licensing.
This quarter, the best-selling artists included Red Hot Chili Peppers, Zach Bryan, Lizz and Ed Sheeran.
Meanwhile, WMG's songwriting rights company Warner Chappell Music (WCM) generated $250 million in revenue, up 14.2 percent year-over-year in constant currency, reflecting what the company calls "continued growth in the streaming business and timing of new digital partnerships."
In the fourth quarter, WMG's net income was $124 million, compared to $188 million in the year-ago quarter; Quarterly adjusted OIBDA of $335 million, flat at constant currency; Its adjusted EBITDA declined 4% to $350 million, compared to $389 million in the year-ago quarter.
capital market
>> Goldman Sachs invests $110 million in live entertainment technology company Fever
On Feb. 6, live entertainment technology company Fever received $110 million in new investment valued at $1.8 billion.
The main investor is Goldman Sachs Group, with participants including Eurazeo, Convivialité Ventures, Goodwater Capital, Alignment Growth, Vitruvian Partners and Smash Capital.
A year ago, Goldman Sachs also led a $227 million funding round, valuing the company at more than $1 billion.
Headquartered in New York, Fever is a live entertainment technology company. Operate in more than 100 cities around the world by hosting exclusive events and directing its users to restaurants, concerts, nightlife, sporting events, fashion shows, pop-up shops, and more.
The company reaches more than 125 million viewers worldwide, with some successful examples including the candlelit concert attended by more than 3 million viewers, "Stranger Things Experience" co-produced with Netflix and "Van Gogh Immersive Experience."
>> Warner Music acquires a majority stake in Divo
On February 8, Warner Music India (WMI) expanded its presence in the Indian entertainment sector by acquiring a majority stake in digital media and music company Divo.
Divo operates in four South Indian music markets, with a significant share of the Tamil music market and a significant share of the Kannada, Malayalam and Telegu music industries.
Founded in 2012 and led by Shahir Muneer, Divo is a digital media company that provides online video, music distribution, publishing, digital and marketing services to brands, celebrities and films. In 2022, the company released more than 30,000 songs.
>> Utopia sold data platform ROSTR to the founders
On February 8, Swiss fintech company Utopia has decided to sell its data platform ROSTR to its founders Mark Williamson and Adam Watson.
About three months ago, Utopia confirmed that it had made multiple layoffs. Utopia said the company is changing its internal structure to optimize the business.
Utopia's acquisition of US-based ROSTR and Austria-based music data analytics platform ForTunes in December 2021 paved the way for the creation of Utopia's creator services division in 2022.
Utopia's sale of ROSTR is part of a broader strategic restructuring, and Utopia said it will now focus on serving creators through third parties and leveraging its B2B offerings. The company did not say whether it would also spin off music data analytics platform ForTunes.
>> Songtradr will acquire music technology company 7digital for $23.4 million
On February 8, B2B music rights company Songtradr announced the acquisition of music technology company 7digital.
The transaction, which is expected to close in the first quarter of 2023, is an all-cash acquisition of 7digital's entire issued share capital for approximately £19.4 million (approximately US$23.4 million).
Songtradr said that with the deal, it will provide comprehensive music and technology solutions for digital platforms and music rights holders.
7digital offers a library of more than 80 million licensed songs and API services to support music in apps such as fitness, social, radio, gaming, and background music.
>> HYBE acquires American hip-hop label QC Music
On February 9, HYBE acquired Atlanta-based rap label Quality Control Music.
The company did not disclose the size of the acquisition, but Variety reported that the deal was worth $320 million in stock and cash.
QC Music's artists include hip-hop groups Migos, Lil Baby, Lil Yatti and so on. It was founded in February 2013 by CEO Pierre Thomas and COO Kevin Lee.
The acquisition was led by American record executive and manager Scooter Braun, who joined HYBE in 2021 while selling Ithaca Holdings to HYBE for $1.05 billion.
For HYBE, the merger will allow it to further expand and diversify its global entertainment business and mark another major move to expand its music genre.
>> HYBE was involved in the acquisition of SM Entertainment
On February 9, according to the investment banking (IB) industry, HYBE decided to acquire 14.8% SM shares held by Lee Soo-man, the founder and largest shareholder of SM, for a total of 428.8 billion won (approximately US$334.5 million) per share.
Before the transaction, Li Xiuman was the company's largest shareholder, holding 18.46% of SM Entertainment's shares.
Two days ago, Kakao Entertainment and SM jointly retained 9.05% of the shares, becoming the second largest shareholder, but HYBE surpassed Kakao Entertainment through this transaction to become the largest shareholder in one fell swoop.
In addition, HYBE plans to carry out a public acquisition at the same price by the 1st of next month, securing an additional 25% of the shares and up to 40% of the shares. If the public acquisition is successful, the acquisition amount will be well over 700 billion won.
Fang Shihyuk, chairman of HYBE, said in a statement that he "fully agrees with Lee Xiuman's strategic plan, including the metaverse, multi-label system and sustainable vision". It is reported that Li Xiuman will also continue to hold about 3% of SM's shares, and together with Fang Shihyuk, he reached a consensus to find solutions to expand his global business.
The change in the company's shareholding has reportedly led to tensions between SM Entertainment's management and founder Lee Xiuman, who plans to file a lawsuit against the company earlier this week following the Kakao Entertainment deal. Reuters said that HYBE's investment in the company by acquiring Li Xiuman's shares was also criticized by SM Entertainment's leadership.
On February 10, 25 co-representative directors, including SMTOWN representatives Lee Sung-so and Toh Young-joon, expressed their stance: "Oppose all radical external takeovers, including HYBE." ”
>> MusicBird received a $100 million loan to acquire music rights
On Feb. 9, Swiss Ququ Investment Company MusicBird has signed a so-called "major financing agreement" with Mitsubishi UFJ Financial Group (MUFG), giving MusicBird a loan of up to $100 million to increase its cash reserves for music rights deals.
MusicBird entered the rights acquisition space in 2021 and has since acquired songwriter J.R. Rotem's songwriting rights (including rights to Rihanna, Jason Derulo, Fall Out Boy, Iyaz and Sean Kingston) and some of Grammy-winning Shaggy's hits (including songs such as It Wasn't Me, Angel and Boombastic).
MusicBird says it aims to build an evergreen song group from different genres and regions.
MusicBird is led by recently appointed CEO Paul Brown, who previously served as vice president of global content and platforms and general manager of Europe at HTC. He also served as senior vice president at The Disney Company and Spotify, and as international managing director at Pandora.
Artist Dynamics
>> Grammy winner Tobias Jesso Jr.s sold the songwriting rights to Hipgnosis
On February 8, Hipgnosis Song Management acquired the songwriting rights to Tobias Jesso Jr., who won Songwriter of the Year in the new category of the Grammy Awards this year.
Hipgnosis said it has acquired 100% songwriting rights (including the author's share of performances) for about 40 songs released by Tobias Jesso Jr.s between 2015 and 2020.
His songs have been viewed more than 4 billion, including Adele's hit "When We Were Young", which has exceeded 1 billion views on Spotify; and "Boyfriends" from Harry Styles' album Harry's House, which won the Grammy Award for Album of the Year.
This is the third deal Hipgnosis has struck in the last month, after acquiring TMS's music library rights last week and Justin Bieber's music rights two weeks ago.
>> Michael Jackson Estate Management is ready to sell its music library for $800 million
On Feb. 7, sources confirmed to Variety that Michael Jackson Estate Management is selling a 50 percent stake in the legendary singer's music library for between $800 million and $900 million.
While details are unclear, news has emerged that Sony Music and a potential financial partner are in talks to acquire a 50 percent interest in Jackson's estate, including songwriting rights, recorded music rights, Broadway "MJ: The Musical," upcoming biopic "Michael" and more.
If the deal goes through, it would be the largest music library acquisition in the music market to date.
>> Zach Bryan signed a songwriting rights agreement with WCM
On February 8, Warner Chappell Music has signed a songwriting rights deal with Grammy-nominated country singer and songwriter Zach Bryan.
His RIAA Multi-Platinum hit single "Something in the Orange" is Taylor Swift's first single-author song to be written by a single author after Taylor Swift's Love Story (Taylor's Version). The song also topped the Billboard Hot Country Songs chart and was his first song to enter the TOP 10.
He also recently broke the record for number one on the Billboard Country Songwriters chart. In 2022, the artist's first studio album American Heartbreak debuted at the top of the Billboard Best Country Albums chart and reached number five on the US Billboard Top 200.
>> Tan Dun, an internationally renowned composer and conductor, signed with Deca Records, a subsidiary of Universal Music
On February 9, internationally renowned composer and conductor Tan Dun announced a signing with Decca Classics, a classical music label under Universal Music Group.
On March 3 this year, Tan Dun is about to release a new EP "Five Souls", and he said that the collaboration with Decca Classics will start with this new work.
On September 23 this year, another album by Tan Dun, "The Tears of Nature", will also be released.
Tan Dun is a UNESCO Global Goodwill Ambassador and has won an Oscar, BAFTA and Grammy Award for the soundtrack of Crouching Tiger, Hidden Dragon, becoming a world-renowned composer. He has scored global moments such as Hong Kong's handover, the celebration of the millennium and the Beijing Olympics, composed music industry luminaries such as Lang Lang and many of the world's leading orchestras, and was the first composer commissioned by Google/YouTube.
>> Black Panther lead singer Zhang Qi flew solo
On February 9, Black Panther lead singer Zhang Qi flew solo, and Black Panther recruited a new lead singer.
Dou Wei, one of the earliest lead singers of the Black Panther Band, established his position in the rock circle through "Black Panther" and "Nothing but Nothing". In 1991, Dou Wei left Black Panther, and the lead singer was played by keyboardist Luan Shu. In 1994, after Luan Shu withdrew, Qin Yong joined and served as the lead singer; In 2005, Luan Shu left Black Panther, and Zhang Kepeng joined the band and served as the lead singer. Zhang Qi is the 10th lead singer of Black Panther.
Live performances
>> The first 10,000-person rock outdoor concert was finalized
On February 6th, the outdoor tour of the band "The World Will Get Better" was officially announced! The first stop will be held on March 25 at the "Spring Cocoon" Stadium of Shenzhen Bay Sports Center, which is their first outdoor concert of 10,000 people rock.
>> Chen Chusheng Graffiti Forest Tour set sail
On February 8, Chen Chusheng's 2023 Graffiti Forest Tour was officially announced. Stations include 2/18 Wuhan, 2/26 Changsha, 3/10 Xi'an, 3/12 Chengdu.
>> Neon Garden's overseas tour officially announced
On February 9, the Neon Garden 2023 overseas tour was officially announced, and it will land in Tokyo, Melbourne, Sydney and other cities from April, and there are more overseas cities to be unlocked.
>> Clockenflap Festival announces the full lineup
On February 11, Hong Kong's Clockenflap Festival announced the latest complete lineup for 2023.
Music variety
>> the first recording of "Endless Sound, Treasure Island Season", the guest lineup was confirmed
On February 8, the first recording of "Endless Sound Treasure Island Season" will be carried out, and the program will set up the main venue in Changsha and the Taipei branch venue.
The recording guests include Zhang Xinzhe, Na Ying, Yang Zongwei, Zhang Shaohan, Wei Ruxuan, Hua Chenyu, Zhang Jie, Ma Jiaqi, Ai Yiliang, Chen Gran, Chen Zhuoxuan, Chen Linong, Bad Special, Summer Invasion Project and other 14 groups of singers.
>> Migu and Xinhuanet produce the cultural and creative variety show "Looking for Voice"
On February 10, Migu and Xinhuanet, jointly produced by the travel music reality show "Looking for Sound", announced that it will premiere on Migu Video, Migu Music, Migu Cloud Bookstore and Xinhuanet on February 14.
In the form of urban sound sampling songs, the show takes the audience on this journey of exploration about sound.
Push song this week
On February 6, Sun Nan's new song "That Light" was launched, with lyrics by Zhang Shouzeng, music composed by Leng Fangfang, and released on the singing network.
On February 6, GAI Zhou Yan released the single "Chaotianmen", GAI Zhou Yan composed lyrics and music, and Huasheng Times - Energy Yuedong was released.
On February 6, SEVENTEEN's first squad BBS released a new album "SECOND WIND", containing a total of 3 songs, and PLEDIS Entertainment released it.
February 6, Japan Yorushika 发布全新单曲《Algernon (阿尔吉侬)》, composed by n-buna, 环球音乐发行.
On February 7, Wang Leehom released a new single "ONE One (Live Version)", composed by Wang Leehom, lyrics by Li Zhuoxiong, and released by Kuanyu International.
On February 10, the ending song "Micro World" sung by Liu Yuning "Daming's Silk Case under the Microscope" was launched, with lyrics and music composed by Ding Shuang, and Shao Shu Music was released.
On February 10, the promotional song "Light of Dawn" sung by Phoenix Legend for the mobile game "Dawn Awakening: Life" was launched, with lyrics by Tang Tian, music by Liu Tao, and released by Tencent.
On February 10, Xiao Jingteng released the bloody single "The World Is Waiting for You", with lyrics by Cui Daoning, music by Xiao Jingteng, and Warner Records released.
On February 10, Qinglian released the single "Cruise", written and composed by Qingli, and released by Bai Mifan.
On February 10, Hu Xia's sixth solo album "MORE Hu Xia" released new songs again, releasing five new works at a time, with "Wish You" as the third wave of the main hit, and the heavy rain culture was released.
On February 10th, the Fish Ding Ito Remastery Project Vol . 4 Special single "Loneliness (Fish Version)" was officially launched, with lyrics and music composed by Shi Junwei, and released by Yu Dingmi.
On February 10, Universal Records' new project "REMEMBRANCE Leslie" regained the style of superstar Leslie Cheung, and the second wave of the main song "Love is Enough" was launched, with lyrics by Yuan Qiongqiong, music by Ma Zhaojun, and Universal Music released.
On February 10, FANTASTICS Seiji Kameda and emerging producer MATZ co-created "PANORAMA JET" was launched, with lyrics by ZERO, music by Seiji Kameda, and AVEX release.
On February 10, Lizzo teamed up with SZA to release the single "Special (feat. SZA) (Explicit)", written and composed by Lizzo and released by Warner Records.
On February 10, in order to commemorate the 20th anniversary of the release of the second album "Meteora", LinkinPark unveiled a reissue of the first new single "Lost", written and composed by Brad Delson, and released by Warner Records.
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