From Spotify’s $7bn payout in 2021, to the global record industry’s $25.9bn revenues: It’s MBW’s Weekly Round-Up
Welcome to Worldwide music businessweekly recap – where we’re sure you’ve caught the five biggest stories that will make our headlines over the past seven days. MBW’s round-up is powered by Centtriphelping more than 500 of the world’s best-selling artists maximize their income and reduce their touring expenses.
It’s been a big week for the stats this week, with the global music business releasing two key sets of numbers from two popular music organisations.
Yesterday (March 23), Spotify updated Loud & clear website, revealing what artists earned from their services last year.
A headline figure from the update: throughout 2021, Spotify claims to have paid $7 billion (on music publishing and recording) to the music industry’s copyright holders – an increase of about 2 billion dollars on “Over 5 Billion Dollars” which Spotify previously said it would pay for in 2020.
MBW dug a little deeper into Spotify’s new numbers and found some startling statistics, like this one: of the 8 million artists on the Spotify platform, 5.4 million – or just over 2 Three thirds of the artists on the service – have released less than 10 songs to date.
And, of the 2.6 million artists on its platform with more than 10 songs, according to Spotify, just 165,000 won activities are popular enough to also have over 10,000 monthly listeners.
Another set of notable numbers this week comes from the global music organization IFPI, whose Global Music Report reveals that the global record industry has made 25.9 billion dollars last year.
One of the highlights from the latest IFPI report is that annual paid streaming revenue has increased 2.2 billion dollars arrive 12.3 billion dollars last year.
Advertising-sponsored streaming platforms (including video services) are created 4.6 billion dollars in 2021, as calculated by MBW based on IFPI numbers. It’s up thirty first% year per year (compared to 3.5 billion dollars in 2020), representing an annual increase of 1.1 billion dollars.
In a separate development, on Monday, Warner Music Group announced that it has signed an agreement to acquire Middle East and North Africa-focused music distributor Qanawat Music.
The News confirmed a report from MBW last week that Qanawat would be music’s next big money acquisition, with our sources saying Warner Music Group is interested in acquiring the distributor.
Also this week, Mushroom group and AEG Gifts announced a new leadership structure for Frontier Touring, while veteran US music executive Patrick Moxey signed a “global strategic alliance” with Warner Recorded Music for two key record labels in the region. his new corporate group.
See below for what went down this week…
On the latest episode of Worldwide music businessTalking Trends podcast, MBW founder Tim Ingham responds to a new set of statistics released by Spotify on what artists earn from its platform
Those stats, published on Spotify’s Loud & Clear page, reveal that 16,500 artists earned more than $50,000 in royalties from Spotify in 2021.
But Ingham argues that this is not the most revealing piece of data released by Spotify.
Instead, he focused on a number buried at the bottom of Loud & Clear: Spotify estimates that some 200,000 artists on its platform are “professional or have professional ambitions.”
According to the latest IFPI Global Music Report (GMR).
That’s a significantly larger year-over-year increase in global industry revenue than we saw in 2020 (+1.5 billion USD) or in 2019 (also + 1.5 billion USD).
In fact, that’s a larger year-over-year increase than we’ve seen at any point in the past two decades, according to IFPI data.
3) CONFIRMED: QANAWAT MUSIC OF THE MIDDLE EAST CONFIRMED
Last week, MBW reported that music’s next big money acquisition would be Qanawat Music, which operates as a music distributor across the Middle East and North Africa.
Our sources tell us that Warner Music Group is interested in acquiring Qanawat Music.
On Monday (March 21), Warner announced that it had signed an agreement to acquire the distributor.
4) TEAM OF MYSTERIOUS AND AEG PRESENTATE UNVEIL’s NEW LEADERSHIP FOR TRAVEL NOW
Frontier Touring, a concert promoter based in Australia and New Zealand, has revealed a new leadership structure for the company.
Frontier says the new structure was created to “ensure Frontier’s heritage, mission and culture are preserved and nurtured” following the death of founder Michael Gudinski in March 2021.
Founded in 1979 by Michael Gudinski, and part of the Mushroom Group, Frontier Touring is one of the most prominent touring companies in the Southern Hemisphere.
In 2019, Frontier entered into a strategic joint venture with AEG Presents.
5) PATRICK MOXEY LAUNCHES LABEL, GLOBAL STRATEGIC LINKS WITH WARNER FOR HELIX AND PAYDAY PROFILES
Patrick Moxey has formed a new musical group and signed a “global strategic alliance” with Warner Recorded Music for two key record labels.
The deal, which includes Payday Records and the newly created Helix Records, will see Warner Recorded Music handle global digital distribution through its independent service arm ADA Worldwide and include the option to parties co-sign new performances.
This news follows the recent announcement that the group’s music publishing division Awesome music Publishing has agreed to an alliance with Warner Music Group’s Music Warner Chappell.
MBW’s Weekly Round-Up is powered by Centtrip, helping more than 500 of the world’s best-selling artists maximize their earnings and reduce their touring costs.Worldwide music business
