MBW Reacts is a series of analytical articles from Global Music Business written in response to recent major entertainment events or news stories.
Over the past few weeks, Global Music Business has found new details about one of the music business’ most controversial stories: the sale of major rights to by Taylor Swift first six albums, originally recorded for big machine.
In our latest this investigative chapterwe obtained – and published elements from – an unsigned June 2020 NDA that was mutually drafted by Swift’s team at 13 Management And Scooter Braun’s Ithaca Corporation.
This NDA was created to promote negotiations between the parties about the possibility of selling Swift her ‘Big Machine’ masters from Ithaca. It contained what appeared to be a rather explicit clause that prevented each party from speaking publicly about secret deal negotiations (pictured below).
The important thing is this clause Are not seems to contain any restrictions that might prevent it Braun and Swift from making personal comments about each other publicly.
Fast This will be described later NDA such as “statement that I will never say another word about Scooter Braun unless it is positive”, and “a document that will silence me forever before I have a chance to bid on the work mine”.
She added: “My legal team says this is completely NOT normal and they have never seen an NDA like this presented unless it is intended to silence a accuser of assault by pay them.”
Fast further alleges: “[Braun] would never even quote my team” for a deal.
Sources close to Ithaca – and enter into negotiations with 13 Management at that time – vehemently denied this allegation.
They think Braun actually provided by Swift group two solid chances to buy her ‘Big Machine’ masters for a set price: U.S. dollar 300 million USD in November 2019 (with full funding pre-agreed from 23 Capital), and then give 305 million USD in October 2020.
(13 Management And Ithaca Corporation both also signed an earlier, more basic NDA – in November 2019 – that allowed the former company to legally obtain and explore the finances of Ithaca and Big Machine.)
However, all of that is definitely a thing of the past now.
Whether or not there is some element of Fast and her team ‘publicly negotiated’ with Braun through the aforementioned NDA allegations, history will show that, in the end, an agreement was not reached between 13 Management And Ithaca.
Braun will eventually enter into an agreement to sell the ownership rights to by Swift the first six albums The capital Shamrock total 405 million USD IN October 2020.
So what happened next?
That is the focus of this articles – where we reveal the level of success by Taylor Swift So far, ‘Taylor’s Version’ re-records on her Big Machine album, prior to release Speak Now (Taylor’s version) This Friday (July 7).
These ‘Taylor’s Versions’ recordings weren’t just profitable in their own right – they clearly suppressed the popularity of the original versions of these albums, now owned by The capital Shamrock.
Taylor’s version recorded: The initial pessimism
by Taylor Swift her plan to document Big Machine masters – originally announced in a Interview with CBS in August 2019 – caused widespread discussion across the music business.
Reports even suggest that Popular music group (whom Swift has signed with directly since 2019) changed the wording of the artist contract after Swift re-recorded two of her Big Machine LPs as new releases: Not fear (Taylor’s version) released in April 2021 and Red (Taylor’s version) Released in November 2021.
The The Wall Street Journal report in 2201, Universal modified the contract so that their artists were legally restricted from re-recording their UMG albums until seven years after their last delivered LP in a certain label agreement or five years after the end of their contract term – whichever comes later.
Meanwhile, by Swift fellow artists almost unanimously support her decision record her Big Machine mastersalthough there is some uncertainty about how successful this effort will be.
Glenn Tilbrook of Squeeze – their band re-recorded their hits in 2010, but fans continue to play/like the original versions of these more overwhelmingly – speak Rolling Stone in 2019: “My advice to Taylor Swift is that it takes a lot of time, effort, and money to make it. [re-record hits faithfully]and I would question what the intended outcome would be.
“If she does that and gets away with it, of course, I support her efforts 100 percent.”
Tilbrook and his fellow artists need not worry. Fast Not only did she get away with it – she even blew the optimistic predictions out of the water.
Taylor’s Edition: The Numbers of 2022
In one of the previous installments of MBW deep dive about the Ithaca/Big Machine/Swift situation, we note that by Swift the first two albums ‘Taylor’s Edition’ (Not fear And Redreleased in 2021) both greatly reduced the popularity of the original versions of these LPs in the United States:
- During 2022 – the first calendar year with both re-recorded albums – Red (Taylor’s version) was playing a huge number 961.6 million won times in the United States through on-demand audio streaming platforms, according to Luminate data;
- Fearless (Taylor’s Version) played 401.2 million won times in 2022 on these platforms;
- In the same year, the original version of Red bank 254.7 million won U.S. streaming (again, via on-demand audio streaming platforms) – reduced by 41.0% annually (from 432m drama in 2021);
- Meanwhile, the original version of Not fear has been streamed 257.0 million won times in the US in 2022 – reduced by 16.5% annually (from 307.7m released in 2021).
Despite this YoY drop for Not fear And RedHowever, accumulation the number of audio streams in the US driven by Swift’s six original Big Machine albums in 2022 has grown by 6.5% annually ARRIVE 2.46 billion playsaccording to Luminate’s data.
A significant proportion of these streams are made up of (still unrecorded) 1989 album, guaranteed 736.4 million won on-demand audio stream in the US by 2022 (approx 30% about that 2.46 billion threads Total Big Machine portfolio for the year).
The growth in the cumulative flow for by Swift The master of ‘Big Machine’ in 2022 explains how Scooter Braun was able to bag One 45 million USD fee ‘make money’ from The capital Shamrock (take the full price that Shamrock paid to Ithaca Holdings so that the masters 405 million USD).
this supplement 45 million USDto be paid to Braun/Ithaca shareholders in Q1 2023, dependent on continued growth in popularity of Swift’s ‘Big Machine’ masters overall.
However, new data based on the first half of 2023 shows that Braun may have exited the business of owning the big machine owners at the right time.
Taylor’s Versions: The 2023 numbers (with re-recorded Speak Now coming soon)
As you may have read, Taylor Swift having a very big 2023.
She age world travel is likely to go in the right direction more in total 1 billion USDbecame the first global concert to cross this commercial milestone.
Meanwhile, Swift’s most recent studio album – midnight – continue to be a juggler, overcome 1.6 billion won US on-demand audio streams year-to-date, according to Luminate data.
Perhaps no surprise, then, that by Swift six ‘Big Machine’ albums, now owned by Shamrock – special 1989 – is on the rise again in popularity.
During the first 26 weeks (six months) of 2023, according to light data analyzed by MBW, original ‘Big Machine’ albums included 2.14 billion won on-demand audio streams in the United States.
That’s not far from the full volume of the audio stream (2.46 billion won) and six albums secured in full of 2022 (see below).
That’s good news for Shamrock capital, Of course. But there’s another side to this story that could make financial firms sweat a bit.
Remember in 2022, two albums ‘Taylor’s Version’ (Red And Not fear) dominate their original album streams in the United States?
Some might have expected that this was the result of a year-long marketing effort from Popular music groupand the fact that the ‘Taylor’s Edition’ recordings (both released in 2021) are still fresh in the public mind.
If that is true, you would also expect this phenomenon to subside over time – i.e. your listening habits. Fast fans, old and new, will start returning to ‘Big Machine’ recordings and away from ‘Taylor’s Version’ recordings as the years go by.
Take a look at the numbers below: They show that in the first 26 weeks of 2023, both ‘Taylor’s Edition’ Red And Not fear has continued to stream significantly over the original versions of these albums in the United States by approximately 1:3 (Red) and around 1:2 (Not fear).
(That being said, both the original And face value ‘Taylor’s Edition’ Red And Not fear has seen a significant increase in YoY popularity.)
what Capital of Shamrock worst case here?
Not that Fast Re-recording of ‘Taylor’s Version’ released Sayas she’s plan to do this Friday (July 7).
Instead, she ended up dealing with re-records of two of her most enduringly popular songs. big machine album: Reputation and, most obviously, 1989.
In just the first six months of 2023, 1989 was streamed 658.7 million won times on audio platforms in the US, according to Luminate.
That’s more 89% (!) in the total volume of the audio streams 1989 price increase throughout 2022 in the same market.
It also has more threads than either of the two available Taylor’s version album (Red And Not fear) has attracted this year so far.
Obviously, if Fast really wants to test the popularity of her original Big Machine albums – while also making their current owners nervous – there’s an LP, in particular, she’ll need to re-imagine.Global Music Business
