Ah, another day, another monumental agreement between two corporate giants purportedly designed to "advance artistry." Universal Music Group and Amazon Music's recent announcement is peppered with buzzwords like innovation, artist-centric principles, and authentic engagement. But as an independent music advocate, I can’t help but wonder: who’s this really benefiting? Let’s decode the shiny packaging of Streaming 2.0: "Segmented offerings for superfans": Translation: wealthy fans can pay more, while artists still see pennies. "Artist-centric adjustments": Sounds great, but the fine print seems to favor artists who are already household names over the emerging ones trying to build their careers. "Curbing streaming fraud": Necessary, yes but the conversation conveniently sidesteps addressing the disparity in royalty payouts across the board. Meanwhile, independent artists, who are the lifeblood of innovation and diversity in music, continue to navigate a landscape designed to funnel most of the revenue back to major labels and platforms. Where are the real tools and platforms that empower indie musicians to grow sustainable careers? Genuine innovation would involve reshaping royalty structures, amplifying visibility for new voices, and creating opportunities that aren’t gatekept by the so called "big guys". The most telling line? “UMG artists achieve their commercial potential…” That says it all. It’s about profit, not progress. To all independent artists and smaller labels out there: let’s keep building our own paths. True empowerment doesn’t come wrapped in a corporate press release it comes from prioritizing community, collaboration, and equity. I personally raise my hand to do all the heavy lifting and expect no credit or incentive!
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Who needs a diss track when you can drop a lawsuit instead? Drake is suing Universal Music Group and Spotify over allegations that the two companies conspired to artificially inflate the popularity of Kendrick Lamar’s “Not Like Us.” The filing—in which Drake accuses UMG of launching an illegal “scheme” involving bots, payola and other methods to pump up Lamar’s song which savagely attacked him—isn’t just another chapter in the ongoing feud between two rap titans; it’s potentially a watershed moment for how music is distributed, marketed, and consumed. This is, after all, one of the most high-profile artists of our time accusing his own label of working against him. For the record, Universal denies the claims, saying “no amount of contrived and absurd legal arguments in this pre-action submission can mask the fact that fans choose the music they want to hear.” Yet even if the case doesn’t hold up, the implications are far-reaching. For one, it opens the door for other artists to again question the integrity of the streaming platforms that dominate music discovery as well as their own labels’ promotional strategies. Taylor Swift, has previously faced accusations of gaming the system—releasing waves of album variants to dominate the charts at the expense of other artists. But what Drake is alleging goes deeper: a label’s use of bots to inflate streams, payola to secure favorable playlisting, and even voice assistants misdirecting users to the “wrong” songs. This isn’t just about chart positioning—it’s about everything that streaming represents: in addition to the limited income that it delivers mosts artists and songwriters, streaming drives charts, airplay, brand and promotional opportunities, merchandise, and touring. In many ways, this feels like a natural progression in a streaming-first music landscape. Platforms have commoditised our attention, and labels are tasked with carving out the largest slice of that pie—sometimes at the expense of their own acts. This case could force transparency—or at least the demand for it—around how labels and platforms work together. If alleged payola, bots, and algorithmic favouritism are part of the story, that’s a challenge to the entire infrastructure of modern music. There’s also the question of Drake’s own motives. Perhaps cynical, but could this lawsuit be less about Kendrick and more about resetting the terms of his relationship with Universal? As one of the label’s most valuable assets, Drake wields significant power—and this case could be part of a larger contract negotiation tactic. Irrespective, what does that mean for the artist-label partnership going forward? No matter the outcome, this lawsuit underscores another seismic shift in how artists see themselves within the industry. The case may be the first of its kind at this scale, but it likely won’t be the last.
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So let’s step back up to the mic, now that I’m free from trying to remain neutral in music matters… 🎤 The music industry is broken—and artists are done playing by the rules. Major labels and streaming platforms have had a stranglehold on music for decades, but their grip is slipping. Over the next decade, independent artists and loyal fandoms are going to completely flip the script. 🎧 Here’s why the system is failing artists: Streaming payouts are a joke: Spotify pays artists a measly $0.003–$0.005 per stream (Music Business Worldwide). That’s millions of streams for rent money. In the UK, 82% of artists earned less than £200 annually from streaming (The Ivors Academy). Labels are stuck in the past: Sony Music, one of the biggest players, is still running parts of its backend on outdated servers from the 2000s. How can they lead the future of music when they’re barely keeping up with the present? Success is about algorithms, not talent: Getting visibility today has more to do with luck and playlist placement than hard work. TikTok’s algorithm decides who blows up. Meanwhile, major labels sit back and cherry-pick who they think can scale. 💥 But here’s the truth labels don’t want to admit: Artists who bypass the system and build their own fan communities are winning—big time. Instead of chasing scraps from streaming, they’re making real money by going direct-to-fan. 🎯 Examples like Amanda Palmer (who raised $1.2M on Kickstarter) prove it’s possible. Smaller, loyal audiences on Patreon, Bandcamp, and Discord are turning into high-conversion powerhouses. Independent artists are seeing higher revenue per fan than most major pop acts—because their fans actually care. ⚠️ The industry’s days of squeezing artists dry are numbered. Labels and streaming platforms won’t fix this because they don’t have to. But artists don’t need them anymore. If you can build your own audience, you own your career—and that’s more powerful than any label deal. 🚀 The music industry isn’t collapsing—it’s being rebuilt. Where do you stand? Are major labels putting themselves into obscelence, or will they find a way to adapt? Let’s hear it. 👇 #MusicIndustry #IndependentArtists #StreamingIsBroken #FandomPower #TakeBackControl
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Think streaming supports artists? Think again. Here’s how EVEN is setting things right. Artists today struggle to connect with their fans directly and get paid properly for their work. What if there was a better way? Introducing EVEN. 🎵 Artists sell their music directly to fans before it hits streaming platforms. 🎵 They set their prices, keep more revenue, and build closer relationships with their fanbase. 🤔 What's in it for music fans? Imagine getting early access to your favorite artists' music, exclusive merchandise, and even opportunities for meet-and-greet experiences. The result? ✅ Fairer pay: Artists earn what they deserve. ✅ Full control: Artists own their music and data. ✅ Stronger bonds: Artists connect closely with fans. It’s not about choosing between EVEN and streaming; it’s about leveraging both to maximize impact. 🤔 What makes EVEN so special? ✔️ Artists offer exclusive content. ✔️ Artists receive daily payments. ✔️ Fan relationships grow stronger. ✔️ Financial resources to boost streaming success. In its first month, EVEN helped LaRussell make over $100K—proving its potential. 🤔 Who’s behind it? Mag Rodriguez, founder and CEO of EVEN, has been an innovator in the music industry for over 12 years. He has helped independent artists generate over $5 million in revenue and achieve over 1 billion streams. 🤔 Who’s using it? Over 10,000 artists, including French Montana, Omarion, and Hit-Boy, have joined the platform. With support for 35+ currencies, EVEN is accessible to fans and artists worldwide. 🤔 What does this mean? EVEN is leading the charge for a fairer future that prioritises artists. Where artists and fans are more connected, and everyone benefits. My thoughts? I’ve witnessed firsthand how difficult it is for artists to make a living. And it looks like they have a real opportunity with EVEN to change that. 🤔 Would you support your favourite artist directly if you had the opportunity? Interested to know down below ↓ Follow Pete Madigan and Staar Player Music Group for the latest updates on innovation and music culture.
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While many focus on major platforms' low payouts, emerging artists and independent labels have the opportunity to establish themselves via through platforms like Audiomack, SoundCloud, EVEN and YouTube. These services offer robust infrastructure for artist discovery, community building, and direct fan engagement and monetization – the true foundations of a sustainable music business. #MusicBusiness #MusicIndustry #IndieMusic #ArtistDevelopment
So let’s step back up to the mic, now that I’m free from trying to remain neutral in music matters… 🎤 The music industry is broken—and artists are done playing by the rules. Major labels and streaming platforms have had a stranglehold on music for decades, but their grip is slipping. Over the next decade, independent artists and loyal fandoms are going to completely flip the script. 🎧 Here’s why the system is failing artists: Streaming payouts are a joke: Spotify pays artists a measly $0.003–$0.005 per stream (Music Business Worldwide). That’s millions of streams for rent money. In the UK, 82% of artists earned less than £200 annually from streaming (The Ivors Academy). Labels are stuck in the past: Sony Music, one of the biggest players, is still running parts of its backend on outdated servers from the 2000s. How can they lead the future of music when they’re barely keeping up with the present? Success is about algorithms, not talent: Getting visibility today has more to do with luck and playlist placement than hard work. TikTok’s algorithm decides who blows up. Meanwhile, major labels sit back and cherry-pick who they think can scale. 💥 But here’s the truth labels don’t want to admit: Artists who bypass the system and build their own fan communities are winning—big time. Instead of chasing scraps from streaming, they’re making real money by going direct-to-fan. 🎯 Examples like Amanda Palmer (who raised $1.2M on Kickstarter) prove it’s possible. Smaller, loyal audiences on Patreon, Bandcamp, and Discord are turning into high-conversion powerhouses. Independent artists are seeing higher revenue per fan than most major pop acts—because their fans actually care. ⚠️ The industry’s days of squeezing artists dry are numbered. Labels and streaming platforms won’t fix this because they don’t have to. But artists don’t need them anymore. If you can build your own audience, you own your career—and that’s more powerful than any label deal. 🚀 The music industry isn’t collapsing—it’s being rebuilt. Where do you stand? Are major labels putting themselves into obscelence, or will they find a way to adapt? Let’s hear it. 👇 #MusicIndustry #IndependentArtists #StreamingIsBroken #FandomPower #TakeBackControl
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Universal Music Group published its financial results in late July, and now we have a full set of majors’ figures with quarterly updates yesterday fromSony Music Group’s parent corporation and Warner Music Group. Sony’s music segment reported total revenues up 23% year-on-year to ¥442bn ($3.03bn at current exchange rates) in the second quarter of this year – its fiscal Q1. This included a 26% spike in recorded music revenues to ¥299bn ($2.05bn) and 29% growth for publishing to ¥97bn ($666m). (MBW has its usual analysis of those figures stripping out the mobile games and animation projects that are bundled into Sony’s ‘music’ results: by its reckoning, Sony’s global music rights operation saw revenues grow 11.4% year-on-year to $2.54bn.) WMG’s Q2 numbers saw its revenues actually decline by 1% year-on-year to $1.55bn, including a 2% drop in recorded-music revenue to $1.25bn. Publishing grew 8% to $305m. However, WMG was more profitable last quarter than a year ago, with operating income up 10% to $207m. The big question on the industry’s lips right now is how streaming revenues are faring for the major labels. Read The Full Story Here: https://lnkd.in/deDxsvJQ #musically #musicnews #readmore
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POWER OF DATA IN MUSIC: William Packer sir, a financial analyst at BNP Paribas, has followed Universal Music Group (UMG) closely for years. After downgrading UMG's stock last year due to concerns about AI and TikTok, he now feels more optimistic. Despite weaker-than-expected Q2 2024 streaming revenues, Packer sees UMG’s current stock price as a good investment opportunity. He predicts potential growth if UMG and streaming platforms like Spotify strike a deal to raise subscription prices, benefiting both sides. Packer’s outlook is now more positive, projecting steady streaming revenue growth for UMG over the next few years. Use of Data in the decision-making process. Stock Price and Ratings: The report uses data on UMG's share price and revenue growth to explain why Packer has adjusted his rating. He considered the drop in share price following UMG's Q2 results and believes the lower price now offers an attractive investment opportunity. Forecasts and Growth Rates: Packer's team at BNP Paribas Exane has projected future streaming revenue growth rates for UMG, estimating an average annual growth of 7.6% from 2024 to 2026. They also suggest that if new deals between UMG and streaming services are reached, this growth rate could increase to 9.1%. Market Reactions: The report discusses how the market initially responded negatively to potential threats such as AI but later adjusted its views. It reflects the recovery of UMG's share price, highlighting the influence of investor sentiment and market dynamics on stock valuation. In conclusion, the report combines financial data, market analysis, and forecasts to explain Packer's optimism about Universal Music Group's future despite recent challenges. https://lnkd.in/eDFNZWYA
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Wow, the week isn't even half over and there is so much in the news! I scan the music tech and innovation news across hundreds of outlets, so you don't have to. Skim this list... Music Industry News from this Week _________________________ 💰 INDUSTRY REVENUE🤑💰 ===================== Sony Music Builds Moat with Music and Games as Morningstar Raises Fair Value (Forbes) Spotify India's Ad Revenues Nearly Doubled in 2023 (Music Ally) Omdia Predicts $53.4bn of Global Retail-Music Sales bt 2028 (Music Ally) SiriusXM Share Price Continues to Rise Ahead of Stock merger (Billboard) _________________________ 🖼 🔭 BIG PICTURE 🖼 🔭 🖼 ===================== Music Catalog Giant Hipgnosis Is Sold, and Merck Mercuriadis Exits (New York Times) Lucian Grainge: Artist-Friendly leader of a Music Juggernaut (Los Angeles Times) David Byrne: Why Radio Should Pay Singers Like Beyonce and Willie Nelson (USA Today) Scalpers Reverse-Engineer Ticketmaster's 'Non-Transferable' Tickets (404 Media) Who Wins When There's So Much Music? (Trapital) Amazon, Apple, Spotify File Legal Challenge Agaist Canada's Music Streaming Tax (Music Business Worldwide) Songwriters and Publishers Should Be Seeing a Larger Slice of the Digital Pie (Music Business Worldwide) YouTube's Latest Use for AI: Removing Copyright-Claimed Music (Music Ally) ______________________ 🍭 🍬 FLAVOR 🍭 🍬 🍭 =================== 'Live Music' Feels Different in the Vision Pro (Whistleout) LiveOne and Seekr to Unveil AI-Driven Music Search Platform (Yahoo Finance) 25% of Music Producers Are Now Using AI, Survey Says -- But a Majority Show Strong Resistance (Music Business Worldwide) _________________________ ✨ ⭐ EXTRA CREDIT ⭐ ✨ ===================== Why is ByteDance Considering a Move That Burned So Many Tech Giants? (Variety) Reggie Watts is in the Right Place at the Right Time (Rolling Stone) BPI Unveils 'Scale-Up and Growth' Program for London Music/Tech Firms (Music Ally) Blackstone Wins Shareholder Support to Buy Hipgnosis Fund (Billboard) _____________________ 🌑 🌒 🌓 🌔 🌕 🌖 🌗 🌘 ================== Want to get news like this in your inbox every Friday? Tell me in the comments and I will hook you up!
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Why the recent Universal Music Group & Spotify is a big deal: 𝗜𝘁'𝘀 𝘁𝗵𝗲 𝗳𝗶𝗿𝘀𝘁 𝗗𝗦𝗣 𝗱𝗶𝗿𝗲𝗰𝘁 𝗱𝗲𝗮𝗹 𝗳𝗼𝗿 𝗺𝗲𝗰𝗵𝗮𝗻𝗶𝗰𝗮𝗹 𝗿𝗶𝗴𝗵𝘁𝘀 Until now, mechanical rights rates have been set by the CRB judges. 𝗦𝗽𝗼𝘁𝗶𝗳𝘆 𝗶𝘀 𝗯𝗮𝗰𝗸𝗶𝗻𝗴 𝗼𝗳𝗳 𝗼𝗻 𝘁𝗵𝗲𝗶𝗿 "𝗯𝘂𝗻𝗱𝗹𝗶𝗻𝗴" 𝗰𝗹𝗮𝘂𝘀𝗲 𝗶𝗻𝘁𝗲𝗿𝗽𝗿𝗲𝘁𝗮𝘁𝗶𝗼𝗻 They have bigger ambitions for content - video mostly, and they couldn't get these deals done with their mechanical rights policy in the U.S. 𝗜𝘁'𝘀 𝗽𝗿𝗼𝗼𝗳 𝗗𝗦𝗣𝘀 𝗮𝗿𝗲 𝗰𝗵𝗮𝗻𝗴𝗶𝗻𝗴 The days of "Spotify is just a music streaming service" are over. They want to be a platform for all content - audio, video, anything. This deal allows them to use music across mediums. 𝗜𝘁'𝘀 𝗽𝗿𝗲𝗰𝗲𝗱𝗲𝗻𝘁 𝘀𝗲𝘁𝘁𝗶𝗻𝗴 Other labels & publishers will mirror this deal, which is a win for songwriters and a win for music being used in other cool ways across content. 𝗣𝗵𝗼𝗻𝗼𝗴𝗿𝗮𝗽𝗵 𝗩 𝗻𝗲𝗴𝗼𝘁𝗶𝗮𝘁𝗶𝗼𝗻𝘀 𝘄𝗶𝗹𝗹 𝗯𝗲 𝗮 𝗹𝗼𝘁 𝗲𝗮𝘀𝗶𝗲𝗿 I suspect Spotify weren't feeling great about the next round of CRB negotiations. Their "bundling" clause interpretation was *very* controversial. This gives them some time to repair the damage. What else do you see in this groundbreaking deal? #musicindustry #musicbusiness #streaming #spotify
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FROM CDS TO AI: MEDIA COMPANIES KEEP UNDERVALUING THEIR CONTENT In 2002 the music industry was in a slump. Declining CD sales and rampant piracy had eaten into profits and labels were desperate. Steve Jobs saw an opportunity. Apple had launched the iPod the year prior and he wanted a digital music store to pair with it. So meetings were held with record labels and a deal was struck with the five major labels – Universal, Sony, Warner, EMI, and BMG. But in their piracy panic and desire to get profits back the labels undersold themselves. Firstly, they gave Apple control over the pricing. iTunes could sell songs individually, at $0.99. Users didn’t have to buy the full $9.99 album anymore. But more importantly they simply underestimated how big digital music would become and sold the rights for what in hindsight would be a fraction of their true value. In 2007 a similar story unfolded when Netflix launched their streaming platform. When they went to studios and networks about buying digital rights they were more than pleased to sell them at a low rate. To them it was free money. Streaming was seen as a perpetual secondary market to DVD sales and cable TV. And most of the rights Netflix wanted were for back catalog movies and TV shows. Content that didn’t produce much income anyway. Hollywood made the same mistake the music industry made. They didn’t realise the value of what they had because they underestimated what a new technology – digital streaming – would become. Web publishers are now in a similar position. Their profits have been dwindling for years and they’re searching for new revenue streams. So when the AI companies that had been scooping up their content for free started getting $80 billion valuations the web publishers wanted their piece. Just like the record labels, they wanted the ‘piracy’ – AI web crawlers scooping up anything and everything free of charge – to be stopped. So deals have started being made. The Associated Press, News Corp, reddit, Stack Overflow and Vox and more have all done deals. But the question remains: have they underestimated the value of their content, just as the music industry and Hollywood did before them? It’s tempting to think that with the current mania for AI, a $60 million per year deal might be a win for someone like reddit. But history tells me to doubt it. Media companies rarely value their content accurately in the face of new technologies. My bet is on the AI companies knowing the true worth of this data and the publishers are selling them the very content they need to eventually supersede them. Publishers are giving away the keys to their own kingdom.
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