welcome to Music Business Worldwide– where we make sure you’ve caught the five biggest stories hitting headlines over the last seven days. The MBW roundup is supported by Centtripwhich helps over 500 of the world’s top-selling artists maximize their income and reduce their touring costs.
This week saw two significant developments in the area of music rights mergers and acquisitions.
Wednesday (November 1), Kobalt announced a new partnership with investment funds managed by Morgan Stanley Tactical Value to invest more than 700 million US dollars to acquire music copyrights over the next few years.
Yesterday (November 2), Concord announced that it had finalized the acquisition of the British music fund Round Hill, Round Hill music Royalty Fund (RHM), after the RHM Board of Directors approved the company’s proposal USD $468.8 million sale in Concord last month.
In a statement released Thursday, Concord said the deal highlights its own “continued growth and overall confidence in the copyright market.”
Also this week, Thomas CoesfeldCEO of BMGconfirmed to staff that the company is reorganizing its overall structure in pursuit of its strategic objective of the company becoming “more efficient and effective”.
Furthermore, MBW explained that DeezerGoogle’s ‘artist-centric’ streaming model now has a new ‘user-centric’ element, while HYBE announced its third-quarter revenue was up. 20.7% over one year to more than 400 million dollars.
Here’s what happened this week…
1) MORGAN STANLEY INVESTS MORE THAN $700 MILLION TO BUY MUSIC RIGHTS IN PARTNERSHIP WITH KOBALT
This week, Kobalt announced a new partnership with investment funds managed by Morgan Stanley Tactical Value to invest more than US$700 million in acquiring music copyrights over the next few years.
As part of this venture, Kobalt will manage copyright creation, synchronization, licensing, administration and investment services.
“Kobalt is a pioneer in investing in music, increasing the value of copyrights and creating music as a viable asset class,” said Laurent HubertCEO of Kobalt.
“Morgan Stanley Tactical Value’s confidence in Kobalt is a testament to our platform and leadership in the music industry. We are proud to form this unique partnership…”
As expected, Concord has acquired Round Hill’s UK-listed music fund, Round Hill Music Royalty Fund (RHM).
Concord confirmed the news on Thursday (November 2), noting that the deal includes more than 150,000 songs and 51 catalogs, including works by The Beatles, Alice In Chains, The Offspring and hits recorded by Elvis Presley, Meatloaf, James Brown and Billie . Vacation.
It also includes a stake in the Carlin catalog, which includes hits made famous by artists such as Johnny Cash, Aretha Franklin, Ella Fitzgerald, Elvis Presley, Peggy Lee and George Harrison.
Thomas Coesfeld, CEO of BMG since July, has made a major new decision at Bertelsmanncompany owned by.
MBW revealed in September that, under CoesfeldBMG was taking digital distribution of its music in-house, bringing its long-standing distribution agreement with Warner Music Group/ADA until the end. (BMG has since confirmed that, while keeping digital distribution in-house, it has signed a deal with Universal music group to manage his physical distribution activity.)
NOW, Coesfeld implements another set of significant changes at BMG, which job A Operating EBITDA of 90 million euros ($97 million)up 22.6% over one yearduring the first six months of 2023….
South Korea-based entertainment giant HYBE generated revenue of 537.85 billion South Korean won in the third quarter.
That quarterly revenue for HYBE’s third quarter (the three months through the end of September) is approximately $404 million and rising. 20.7% over one year.
The company’s adjusted EBITDA in the third quarter was 90.77 billion South Korean won ($68.22 million), up. 13.1% over one year…
We’re heading towards Halloween, aka the last day of October, aka the last day of the month in which Deezer a highly controversial new “artist-centric” royalty model should be launched in France.
This launch is expected to impact payments to artists signed to recorded music companies (including Universal music group And independent label Wagram) who registered for the “artist-centered” program on Deezer platform.
The three fundamental pillars of Deezer “artist-centered” model, such as announcement with Universal last month?
- Artists who attract more than 1,000 listens per month (from more than 500 unique listeners) on Deezer get a “double boost” in their streams on the service;
- This “double boost” then doubles again if a play of said artist’s music was actively sought by listeners instead of being served to them algorithmically;
- Deezer’s plan to “replace non-artist noisy content” on its platform with its own “functional music space content” created by Deezer. Deezer will then completely demonetize all “noise” content.
Except now there’s a new fourth entrance on Deezer’s “artist-centric” menu changes to the royalty model – and that requires some explanation.
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