Tencent and Spotify Talk Equity Swap – Big moves in music tech! Tencent Music Entertainment and Spotify are in talks to acquire 10% of each other in a strategic maneuver, as both companies plan to go public soon. The advantages of this potential deal are tremendous. Each company gains a foothold in a new untapped market and together they are stronger when entering licensing negotiations with music labels and publishers. The move shows the importance of the Chinese market to Spotify and follows a pattern of investments for Tencent. The company has made similar investments in Tesla, Snap and even tried to buy Spotify in 2015. Tencent is on a mission to become the world’s largest company and music is at the core of the growth strategy.
Warner Music Revenues Soar Above $3 Billion – Warner Music music revenues exceed $3 Billion for the first time in over 10 years. Revenue is up 10.4% year-over-year and is the largest full-year haul since the major label was sold by Time Warner in 2004. Revenue is up 32% since 2012 when Warner was acquired by Billionaire Len Blavatnik. As with all the major labels, the engine driving the revenue growth for Warner is music streaming.
Music Publishing Royalties Grow to $8.4 Billion – Data collected from 239 royalty collection organizations from 123 countries, shows that music publishing revenue grew 6.8% to $8.4 Billion. Digital royalties presented the strongest percentage increase, growing 51.9%. The shift from physical to digital distribution is powering the resurgence of the music industry and is driving revenue growth.
55% of 2018 Grammy Nominations go to Indie Artists – This is an extremely important trend that we expect to greatly benefit TuneGO! Independent music accounts for 37% of U.S. recorded music sales, but made up 55% of all 2018 Grammy nominations. Independent music is doing better than ever with a record global market according to Billboard. We all know timing is everything! TuneGO was built for the independent artist community! More evidence TuneGO is cutting-edge, forward-thinking and ahead of its time!
Today’s Awesome Quote! “The music-tech industry has been heating up for some time, now it’s boiling hot and still getting hotter.” – Stacy Haitsuka, TuneGO Chief Technology Officer