SONGS Music Publishing on Sale for $160+ Million – The indie music publishing is home to popular songwriters Lorde, the Weeknd, and Diplo among others. SONGS produced $8 million in net publishing royalties, which in typical times would carry a 12x multiple, equal to 95 million. In today’s red-hot market however, music catalogs are achieving a 15x multiple, illustrating the increasing market value for music copyrights.
China’s Two Largest Tech Companies Sign Deal For Western Music – China’s two largest tech companies , Tencent and Alibaba, announced a deal centered around the world’s largest catalogs of music. Tencent has over 800 million streaming users in addition to 960 million WeChat users and recently announced a $10 Billion IPO financing for Tencent Music Entertainment. Tencent is the master distribution and licensing partner with exclusive rights to distribute music from Universal, Sony and Warner to the Chinese marketplace. The agreement between Tencent and Alibaba further illustrates the importance of music in the eyes of global technology conglomerates.
Jay-Z’s Tidal Now 3rd in App Store Revenue for Music Apps – Tidal, the music streaming platform everyone loved to hate is now the 27th top-grossing app in the Apple iOS App Store and the 3rd highest-grossing music streaming service. Sprint acquired 33% of Tidal for $200 million in January 2017, valuing the music streaming platform at $600 million.
BROKEN RECORD – Independents Real Winners From Streaming Renaissance – Digital platforms have helped independent labels compete better than ever before on the global stage. The digitization of the music industry has been pivotal to bringing independent music to ears all over the world. The independent markets have seen some great traction in non-traditional countries, where up until now only the major labels have managed to gain traction. Physical distribution (CDs, vinyl, cassettes, etc.) was a tremendous barrier-to-entry for independent music. Streaming is now the preferred consumer choice for music consumption and this allows independent labels to reach consumers more efficiently than ever and this will contribute to the overall growth of the music industry.
Today’s Awesome Quote!
“I try to make music with emotion and integrity. And authenticity. You can feel when something’s authentic, and you can feel when it’s not: you know when someone’s trying to make the club record, or trying to make the girl record, or trying to make the thug record. It’s none of that. It’s just my emotions.” – Jay-Z