Welcome to Music company worldwide‘s weekly roundup – where we make sure you caught the five biggest stories that have made our headlines in the past seven days. MBW’s roundup is supported by: cent trip, enabling more than 500 of the world’s best-selling artists to maximize their income and reduce their tour costs.
Is the popularity of new music declining? Or are we just witnessing a pandemic-driven anomaly?
That’s the big question lingering in MBW’s report this week, as we note two key conclusions from a new semi-annual report from the US by MRC data.
The first of those conclusions shows that “catalog” music in all formats claimed more than 66% of the streaming-plus-sale record market in the United States in the first half of this year — a significant increase in market share over from the same period of 2020. ‘Current’ music has meanwhile taken over barely a third (33.6%) of the market. (Important caveat: ‘Catalogue’ in this context describes music that was released 18 months prior to when it was played or purchased, so we don’t know how much of that 66% is based on the popularity of golden oldies, and how much is more recent hits.)
Our second key conclusion from the MRC Data report concerns the “streaming megahit”. MBW analysis shows that the cumulative popularity of the top 10 largest on-demand audio streaming records in the first half of 2021 was significantly smaller than the equivalent numbers in H1 2020, H1 2019 and H1 2018.
Despite this, overall streaming volume increased by a decent margin. Conclusion: There are more streams in America than last year, but fewer are going to the biggest hits.
Elsewhere this week, MBW broke news that an impending report of a cross-party UK parliamentary inquiry into the economics of music streaming would contain some key recommendations for the UK government that the major music companies probably wouldn’t be fans of.
These suggestions, obtained from MBW sources and later confirmed in the published document, concern granting artists the right to earn from ‘equitable remuneration’ and referencing the so-called “dominance” of the majors to the British Competition and Markets Authority (CMA).
Meanwhile, I2PO, a new Special Purpose Acquisition Company that plans to list on Euronext Paris this week, has successfully raised $325 million and has expressed interest in exploring potential partnerships in the music industry. One to keep an eye on.
Elsewhere, Round Hill’s publicly traded UK fund has just raised $86.5 million in a new equity offering — well above its $50 million minimum target.
Here are MBW’s biggest stories from the past five days…
There were 555.3 billion music streams on audio and video platforms in the United States in the first six months of 2021, an increase of 54.3 billion year-over-year.
But the bigger story for the American music industry isn’t so much about how many people were listening, but more about what they were listening to.
According to MRC Data’s new semi-annual report, catalog music’s share of total US album consumption rose to 66.4% in the six months to the end of June 2021 (with “catalog” reflecting anything more than 18 months before a consumer makes a purchase). did and/or pressed play)…
For decades, the record industry has focused its attention and investment on one thing above all else: the hit record.
But new numbers from the US this week suggest that hits — as in blockbuster, industry-dominant mega-hits — are increasingly becoming a less mottled beast.
Despite millions more people playing music on streaming services each year, the industry’s biggest streaming hit in mid-2021 is significantly smaller than the biggest streaming hit in mid-2020, 2019 and 2018…
In January, MBW watched as a series of British politicians took turns challenging (and laughing at) the big record label bosses in the market live on camera.
They did this in the name of a cross-party British parliamentary inquiry into the economics of music streaming.
According to MBW’s sources, the report of that inquiry, published by the Digital, Culture, Media and Sport (DCMS) Committee, makes two specific recommendations (later confirmed in the published document) to the UK government that major record labels should leave uncomfortably…
There hasn’t been a more talked about acronym in the music industry this year than “SPAC.”
Special purpose acquisitions are everywhere and they spend huge sums, from the long-standing IPO of Neil Jacobson, president of Geffen Records in New York, to Anghami and Reservoirrespective NASDAQ plans through SPAC mergers, to Bill Ackman’s financial vehicle that holds 10% of Universal Music Group.
Now, a new SPAC, launching in Europe, with over $300 million at its disposal, could be a new game-changer for the music industry…
Round Hill’s publicly traded UK fund has raised $86.5 million by listing new shares, well exceeding the minimum target of a $50 million increase.
The news is further proof of the positive investor sentiment around music rights today, as follows: Hipgnosis Songs Fund also exceeded the minimum target for an equity offering earlier this month. (Hipgnosis aimed for $210 million, but ended up at $215 million due to an oversubscribed round.)
In Round Hill’s new share issuance, 86.5 million C-shares will be issued Round Hill Music Royalty Fund Limited (RHM) for $1.00 per share…