Photo Credit: Cottonbro Studios

When it comes to Shamrock Capital’s acquisition of Taylor Swift’s recorded catalog, let’s be honest: it didn’t even seem like a good idea at the time. But is there more frothy fallout ahead when it comes to music IP?

Dialing back to late 2020, the collective industry head-scratching elevated when Shamrock Capital swooped in to buy Taylor Swift’s first six album masters for $300 million plus. The seller was none other than Scooter Braun’s Ithaca Holdings, who dropped the sullied asset after just 16 months of migraine-inducing ownership.

Of course, it’s always fun to buy the most sizzling catalog on the block. But to say there were red flags around this IP acquisition would be a drastic understatement.

For starters, Swift herself was already steam-rolling forward with her now vast catalog of Taylor’s Version remakes, complete with a fight-the-industry-oppressor narrative to fuel the Swiftie mob. Beyond the juicy targets of Scooter Braun and Scott Borchetta, Big Machine staffers were also getting harassed — and woe to any music company or investment house caught in those crosshairs.

Hence Scooter’s EJECT button — or at least part of the explanation for it. Enter Shamrock, which quickly found itself battling duplicate recorded music versions and a hostile artist. That’s tricky enough to manage, but given the edge-case nature of this calamity, building longer-term revenue projections seemed downright devilish. It was all unfortunately unprecedented, particularly for an IP asset of that size.

Then again, investment firms will tolerate almost any level of pain for the right return. This one – involving IP from one of the biggest musicians in history – apparently wasn’t worth it.

The bad math and endless headaches might explain the quick reversion sale – which may have also carried a boulder-off-shoulder post-signing high. Braun got out after 16 months — and now, Shamrock is bowing out after four-and-a-half years. None of that screams long-term portfolio jewel, but hey – now Taylor’s the proud owner of her own original recordings.

That’s great news for Taylor, but is Shamrock’s dump-off the latest episode in a protracted frothy fallout?

Hipgnosis was its own slow-motion train wreck, with execs accusing Massarsky n’ Merc of juicing up the valuations of catalogs into the stratosphere. But what about the rest of the multi-billion dollar music IP ecosystem?

That’s a tricky one, particularly in the daily rollercoaster of America’s economy du jour. Indeed, complementing the stomach-turning stock market is an ‘everything bubble’ terrain replete with endless possible ‘pops’ – including potential crashes in crypto, real estate, bonds, and maybe even music IP.

That has industry players feeling a bit nervous, according to our latest off-the-record convos. There’s still a significant amount of money ready to be deployed on catalogs, and specialized plays involving smaller catalogs and distinct rights tranches continue to emerge.

But is there a bigger correction ahead for music IP?

One problem recently outlined to DMN: even catalogs from storied artists like Bob Dylan (whose total publishing and recording catalog sold for as much as $600 million) only have so many recognizable hits—and sync-able tracks.

Indeed, b-sides blow up and get placed all the time (see Connie Francis’ ‘Pretty Little Baby’ and the Pointer Sisters ‘Hot Together’ for the latest exhibits). But how many people care about the hundreds of lesser-known tracks from legendary artists like Dylan?

In that context, perhaps the Taylor sale speaks volumes – particularly after such a short carriage period by Shamrock.

Not to harsh anyone’s mellow, though perhaps a measured cool-down is the best outcome in this terrain. Indeed, a soft landing might be the luckiest outcome we can get.

Meanwhile, music IP and other hot-button music and money concepts are on tap for next week’s Music Investor Conference, or MIC, in New York, where dealmakers will rub elbows and prognosticate on what’s next. That will be complemented by A2IM’s Indie Week confab in Times Square – with IP sure to receive healthy discussion time at both.

See ya there.

Photo: Krivitskiy

For those trying to make sense of the post-apocalyptic hell-scape known as the US Copyright Office, we wish you the best.

What started as a tech bro ambush has shifted into an all-out war for control over the US Copyright Office — and the critical policy direction that comes with it. It’s not entirely clear why former US Copyright chief Shira Perlmutter was abruptly fired, though widespread conjecture pointed to the handiwork of tech bro operators like Elon Musk and David Sacks — not to mention the very powerful cadre of pro-AI, Trump-allied tech titans.

The theory sounds logical enough, but why can’t they finish the deal?

As recently-fired Register of Copyrights Shira Perlmutter launches her legal counterattack against the Trump Administration, we’re guessing the White House will forge ahead with their chosen replacements at the Copyright Office and its umbrella org, The Library of Congress.

But wait: the White House’s interim picks aren’t very pro-AI or pro-tech, raising serious questions about the tech bro puppet master theory. If Musk & Co. directed the dismissal of the more pro-copyright Perlmutter, why aren’t more AI-friendly replacements being named?

Tossing another perplexing incident into the riddle: Trump himself ‘re-truthed’ a rather anti-tech post on Truth Social — from legal ally Mark Davis, who has sharply questioned the copyright-be-damned mantra of the AI class.

As we head into the weekend, some top-ranking Department of Justice officials are assuming positions at both the Library of Congress and US Copyright Office. But is that how this works?

A key argument in Perlmutter’s legal filing is that the White House and Department of Justice lack any authority to fire the head of the Copyright Office. Instead, the head of the Library of Congress has the sole authority to appoint and dismiss the Register of Copyrights, though it should be noted that the President does appoint the Librarian of Congress with Congress’ consent and has the power to remove the Librarian as well.

Perhaps this is procedural quibbling, but it raises the question: will a federal judge issue an injunction and restore Perlmutter to her former post?

If so, get ready to crank the mayhem meter to 11. But will the Trump Administration simply seek another method to dispose of Perlmutter if a judge steps in?

Perhaps the more vexing question for the music industry is whether a restored Perlmutter will have anything close to her previous influence. Shaping copyright policy with a Director-under-attack seems dicey at best, with one policymaker telling DMN that Trump-appointed, pro-copyright people might be the best outcome here.

But who might those people be?

Besides the legal questions (and lawsuit) surrounding the shakeup, it remains to be seen whether the aforementioned DOJ officials will stick around in their new posts or make way for non-acting replacements.

Meanwhile, getting far less attention is a pernicious piece of pro-AI legislation in ‘The One Big, Beautiful Bill.’

‘The One Big, Beautiful Bill’ recently passed the House by the narrowest of margins before heading to the Senate. And buried with the voluminous Bill — at least as currently written — is a dastardly 10-year moratorium on state-led AI regulations. That’s right: by law, states would be prevented from enacting AI regulations of any size or flavor.

It’s a big, beautiful bonus for AI megaliths like Alphabet, Meta, and OpenAI, with pesky regulations off the table for a full-blown decade.

As one might expect, state attorneys general are arguing that the moratorium would be “sweeping and wholly destructive of reasonable state efforts to prevent known harms associated with AI.” In a recent open letter to Congress, they point out that the absence of federal protections means states are often a first line of defense against technological harms—including those impacting personal identity, privacy, and creative rights.

On the AI side, the argument is that over-regulation will kill technological development and competitiveness with rivals like China. Of course, the ‘Big, Beautiful Bill’ still has a gigantic Senate hurdle, and plenty of changes are likely to occur. Can pro-copyright forces — not to mention state AGs — remove or soften the 10-year provision?

Sadly, this isn’t the best of times for copyright defenders like the NMPA, RIAA, and others.

The Trump Administration has its copyright defenders and big tech challengers, but can music’s well-heeled lobbyists steer this ship towards a zone of content protection and compensation? Part of the problem is Hollywood, which is ardently anti-Trump and, well, Californian.

That anti-Trump energy has certainly dominated the music side as well. However, DMN keeps hearing that the music industry would be wise to fire up its Nashville contingent, including its Red State superstar musicians, to shift the discussion. Incidentally, that includes Trump pals like Kid Rock, who flanked the president during his ratification of the momentous Music Modernization Act during the first term.

Perhaps it’s time to roll out that game plan again in the more critical battle against AI?

More as this chaotic situation develops.

Adaptive Music’s Tony Alexander chats with soul artist MAJOR at Music Biz in Atlanta last week (Photo: Music Biz)

Music Biz switched cities and kept most of the music business crowd. Now, Atlanta is the chosen city for 2026 as well — leaving a potentially juicy opportunity in Nashville.

Despite excessive hand-wringing over Music Biz’s switch to Atlanta from Nashville, the music business crowd showed up in droves last week. Attendance appeared slightly down from last year’s Nashville shindig, it should be noted, though the conference announced its intention to remain in Atlanta in 2026.

We’re still unclear on the machinations surrounding Music Biz’s shift from Nashville after several years in Music City, though organizers said they’ve always planned to shift cities periodically. Apparently, COVID complicated plans to jump around, though now the original game plan is being implemented.

That’s the official line and Music Biz is sticking to it, though some chatter suggests a political motivation for the shift — though that’s one hot potato we’ll politely pass along. Either way, the crowds showed up, and the event was chock-full of core music industry companies and execs.

Music Biz’s city-switch is vaguely reminiscent of the Grammys of yore, when ‘Music’s Biggest Night’ ping-ponged between New York and Los Angeles before largely being anchored in Tinseltown.

For Music Biz, it looks like a ‘build it in a new city and they will come’ dynamic is at work: for those bumping elbows at Music Biz at the Renaissance Atlanta Waverly, crowds were solid and dealmaking brisk — all ingredients for a solid music industry fest that is poised to hop around.

So how does this shift the deck on the music industry conference scene?

Music Biz continues to emerge as a marquee music industry event in the US, particularly given SXSW’s waning reputation for actual business, dealmaking, and even showcase quality. Meanwhile, Nashville already has a smattering of good industry events — most notably CRS. But given the city’s density of music celebs, songwriters, and industry folk — not to mention its party getaway appeal — will somebody make a run at building a mega industry conference in Tennessee?

Separately, Nashville’s sudden importance to the music industry’s critical lobbying agenda can’t be overstated, particularly given the huge shakeup that just went down at the US Copyright Office. Suddenly, the music industry is waffling in Washington against the tech bros — can Nashville and its more red-leaning artists potentially turn things around on the AI and copyright protection fronts?

Shifting back to Atlanta, Music Biz kicked off just as Live Nation signed a major lease in the city’s $5 billion Centennial Yards mega-project. Specifically, the concert giant inked a long-term lease for a 5,300 seat venue in the downtown stadium and entertainment megaplex, a move designed to draw a string of superstar artists to the Centennial zone.

Perhaps Atlanta opts to sweeten the deal further and rope Music Biz into a longer-term relationship? It’s always nice to have an entire industry of movers and shakers strategizing in your town, particularly given the music industry’s tendency to bump local economies.

And with that, here’s just a quick canvas of the companies on deck at Music Biz this year:

Apple Music, Spotify, Warner Music Group, Universal Music Group, DiMA, ASCAP, A2IM, RIAA, SONA, The Orchard, OpenPlay, Empire Publishing, Rhymesayers Entertainment, Concord Music, CD Baby, Downtown Music Publishing, Columbia College Chicago, DDEX, The MLC, AllTrack, Sound Credit, Encore Music Tech Solutions, MusicWatch, Luminate, New West Records, Music Canada, Criminal Records, Elektra Music Group, The Vinyl Alliance, Stem Disintermedia, Lark42, Sureel AI, University of North Texas, Drexel University, Music Business Toolbox, 24/7 Artists…

… and the list goes on and on.

See y’all next year — in Atlanta, that is.

Which way, USA? Latest DMN Pro data shows a problematic slide in stateside Spotify subscribers (Photo: GDJ)

DMN Pro first reported serious subscriber slowdowns at Amazon Music in 2024. Now, it’s Spotify’s turn: according to leaked figures, the mega-DSP shed stateside subscribers in early 2025. In response, Spotify told DMN that its paying subscribers are growing ‘in all regions,’ but declined to offer further details.

Spotify came out swinging in its latest quarterly financial call, thanks to a 12% year-over-year global premium subscriber bump. But how many of those subscribers are coming from outside of ARPU-rich regions like North America and Western Europe?

Yes, this is the nagging ‘subscriber plateau’ dogging the music industry, though ‘decline’ may be the new ‘flat’ — at least in markets like the United States.

Just last week, DMN Pro revealed a noticeable decline of roughly 5% in US-based Spotify subscribers during the first two months of 2025, citing leaked data from sources at a major music conglomerate.

Admittedly, that doesn’t amount to a full quarter, and month-to-month bumps aren’t unusual. But perhaps there’s a reason why Spotify has specifically decided against increasing prices in the US — at least according to the Financial Times. That follows a slip by Believe pointing to a pullback by Spotify and other DSPs on an aggressive price increase schedule.

All of which begs the question: is the industry finally crossing the consumer price sensitivity point, particularly in the US?

Adding a bit more smoke to this fire, Spotify declined to break down US — or even North American — stats in a discussion with Digital Music News.

Calling the data ‘incorrect,’ Spotify Global Head of Communications Chris Macowski pointed DMN to ‘Y/Y and Q/Q growth across all regions’ in Q1, while pointing to year-over-year data in Spotify’s investor presentation deck. Hoping to fill in the blanks, we asked specifically about US subscriber stats in 2025 — before getting ghosted.

Perhaps most concerning: the early-2025 declines in the US are happening in the core number of paid accounts, which strips out multiple users (for example, six subscribers in a group Family account). That raises another inconvenient question: how many people are actually logging into these group accounts? Our best estimates still show a decline, with a clear drop in the actual number of paid US-based accounts.

The United States remains the largest music industry market, according to the IFPI, and one of the most lucrative on the ARPU scale. Meanwhile, more Q1 data is coming — we’ll keep you posted.

Separately, Spotify’s higher-priced ‘super-premium’ (aka ‘Music Pro’ or ‘Superfan’) tier remains elusive, with CEO Daniel Ek noticeably mum on the topic.

Half a world away, Tencent Music is going gangbusters with super-premium offerings, though Spotify looks stuck at the starting blocks after years of teasing their upgraded tier(s). During the Q1 call, Ek whipped up an admirable word salad on the topic, with once-promising add-ons like higher-fidelity audio and exclusive tickets suddenly absent from the discussion.

“But for the near term, the way to think about it for Spotify is, we’re not dependent on that for growth, but we want to make it happen. … [F]or the superfan [subscription tier], we do need the partners to come to the table and be part of this trip,” Ek said without offering any concrete plans or releases ahead.

Elsewhere on the superfan front, DMN is hearing reports of continued fragmentation, with mega-players like Live Nation disinterested in gifting jewels like pre-release concert tickets — at least without a serious bag of cash consideration.

Separately, UMG is marching forward with its own superfan-focused artist pages, as are notable upstarts like Dave Cool-helmed MySeat Media, which just facilitated an impressive G Herbo superfan app loaded with exclusive cuts.

Other artists are likely to roll their own — superfan apps, that is — but how much will that detract from streaming giants like Spotify, Apple Music, Amazon Music, and YouTube Music, which now hog 99% of the streaming music subscriber marketshare in some territories?

And while we’re on the topic of non-standard, premium streaming apps: which mega-festival is cooking up a huge genre-focused streaming app, loaded with live performance exclusives for its heavy-spending attendees?  This one’s gonna be big and juicily high-ARPU — stay tuned!

Just how much distribution can be done on a phone? According to Too Lost, the answer is pretty much everything.

For many artists and labels, the complex tasks of music distribution are frequently handled on desktop. That’s a belief held by some of the largest distribution platforms, though Too Lost is now giving its artists complete mobile capabilities via a just-released app. The result is a completely portable distribution solution built for on-the-go artists, including those on tour.

According to the upstart distro, the decision to expand the platform into mobile was sparked by repeated client requests. Artists simply wanted multi-platform flexibility, so now it exists in their pockets.

In most cases, artists will toggle between both mobile and desktop environments, and Too Lost is smartly giving its artist clientele complete flexibility to choose their distribution environment. For Too Lost, a company DMN is thrilled to be partnering with, the key is to give artists a solid distribution solution from anywhere – at any time.

That means that the mobile app carries virtually all of the functions and features of Too Lost’s core distribution platform.

According to the company, uploading new music remains a swift process, achievable in seconds even while on-the-go. That means just-recorded music, including live cuts, jams, and even quick outtakes can be quick-released to fans from a phone. Alternatively, more conventional distribution work involving previously-recorded material and catalog management can also be handled on the small screen.

The app is also stuffed with real-time stats, including those tied to stream listening and audience demographics. For artists that love actionable data, that translates into quick engagement information and a powerful feedback loop.

Too Lost’s app also includes the ability to monitor earnings and transfer funds.

For those touring and building the early stages of their careers, fast withdrawals can make a big difference. Accordingly, Too Lost’s app offers fast and flexible payouts, allowing artists to withdraw their money whenever needed.

More broadly, mobile-based creativity tools are also blossoming. Just recently, DMN profiled the breakout success of GELO, whose ‘Tweakers’ started on Voloco, a ‘mobile recording studio’ that served up the featured beat. For Too Lost, the next step was simply to expand the possibilities to include the broader aspects of distribution.

According to Too Lost, this app is packed but manageable, and geared towards a client base that wants more functionality and flexibility than ever.

Too Lost’s just-released app is available on both iOS (Apple) and Google Play (Android) platforms.

OpenPlay cofounder and Chief Client Officer Edward Ginis.

Is it time for the music industry to radically reconsider its approach to AI? Edward Ginis, cofounder and Chief Client Officer of OpenPlay, is already focused on monetizing AI instead of fighting it. An ardent activist for modernizing the industry’s data infrastructure, Ginis launched OpenPlay in 2013 after serving as CTO at Concord Music Group and views AI as an opportunity to evolve rather than a threat to resist.

With over 15 years of experience in music, technology, and finance specifically, Ginis has serious chops in building large-scale software systems and data management solutions for the music industry.

At OpenPlay, Ginis’ focus is on building independent and flexible data hubs for artists and IP owners — instead of limiting, isolated silos. At DMN, we’re excited to partner with OpenPlay to further broaden that mission.

In this interview, we asked Edward to share his vision on how the music industry can improve its metadata management and monetize AI, and what he’s doing to bring that vision to reality.

Digital Music News: Edward, thanks so much for joining us. We’re really keen to dive into what’s happening with OpenPlay and your vision for upgrading and changing the music industry’s data infrastructure and approach to metadata.

Let’s start with the AI landscape. What’s your take on the AI battle right now?

Edward: Paul, it’s great to be here. The “AI battle,” as it’s perceived, is fundamentally about monetization. It’s not really about stopping the technology or purely about preserving artistry; it’s about figuring out how to monetize something that the industry doesn’t quite know how to monetize yet. We’ve seen this pattern before with other technological disruptions. For example, YouTube was initially viewed as a threat to the industry until Content ID was developed, allowing rights holders to identify and monetize their content on the platform. Now, Content ID has transformed from a defensive tool into a significant revenue stream that most rights holders embrace.

Digital Music News: Alright, so let’s monetize this AI beast. But how can this industry do that?

Edward: The biggest challenge is attribution. Who gets paid when a piece of AI-generated content draws from thousands of existing works? Very few companies are tackling this.

There’s a need to solve the problem of where the generation comes from. We need to control the input into LLMs by protecting and fingerprinting catalogs before they’re ingested. If we can trace a generated work back to its source, we can accurately distribute fractional royalties, even to creators whose works haven’t seen much revenue in a long time.

Digital Music News: So that’s a good segue into OpenPlay. You created OpenPlay because you saw huge issues with how the music industry handles data. It’s a mess out there, but what are the biggest problems you’re trying to solve?

Edward: The biggest problems in the music industry today revolve around data fragmentation and the lack of control. Content owners often have limited options, relying on distributors or publishing administrators who essentially become gatekeepers to their own intellectual property. When these deals end, retrieving their content and associated data can become a nightmare. At OpenPlay, we abstract all that complexity. Rights holders can maintain control of their assets while still delivering content directly to their distributors, societies, or DSPs via our platform.

Digital Music News: Can you explain how that would change the life of a typical artist or IP owner?

Edward: Absolutely. Whether a rights holder is working with FUGA in Latin America, Spotify directly in the US, or AudioSalad in Europe, OpenPlay acts as a central hub. They can set up all those connections from one place without worrying about getting their content back if relationships change. It’s about giving rights holders leverage. If they’re unhappy with a deal, they should be able to switch within 24 hours, not face a mountain of complications.

Digital Music News: And you’re also expanding beyond distribution?

Edward: Yes, we’re expanding into UGC, royalty processing, video generation, and even providing advanced revenue. We see a future where these services operate more like an app store or HubSpot, where labels and publishers can choose and pay only for what they need.

For instance, companies like AudioShake, which offer stem dissociation and lyric translations, can be seamlessly connected through OpenPlay. It simplifies how content and metadata are exchanged, so the focus can be on the commercial value, not technical headaches.

Digital Music News: Perhaps there’s too much power concentrated in distribution hubs.

Edward: Precisely. Distribution as a revenue source is eroding. We need a marketplace where parties pay for what they need, and OpenPlay facilitates those connections. We’re creating an environment where new players have immediate access to the tools they need and can easily try new technologies. Music is notoriously unfriendly to entrepreneurs, and we want to change that.

Digital Music News: So, speaking of changing things, is there anything stopping a major artist or label from mirroring their content onto OpenPlay, even if they have a major distributor?

Edward: No, not at all. In fact, a big part of our business is helping them do exactly that. We’re not telling them to leave their distributors. We’re saying, bring your content into OpenPlay. Moving forward, they enter their content with us, and we deliver it to their existing distributor. They’ll have one entry point, reducing errors and simplifying their workflow. This also gives them the option to switch distributors easily if needed.

Digital Music News: It seems crazy: why is it so hard to wrestle control over your own IP?

Edward: Rights holders are entitled to all the data related to their IP, including stream data. Distributors often make it technically difficult to get this data, citing issues like file sizes or complexity, but in the end, it isn’t their data. Sidestepping this mess, OpenPlay combines publishing and label data into one ecosystem, offering a full view of the copyright assets and facilitating accurate data delivery to the MLC and others. This helps prevent data “black boxes.”

Digital Music News: You’re building a separate data storage and application hub, which sounds like a refreshing progression. Is it too far-fetched to then reconsider a global resource database?

Edward: Well, to work effectively, it needs to be highly decentralized. Trying to build ‘one silo to rule them all’ is impossible and impractical. What we need instead are interconnected systems with standardized interfaces – what technologists call APIs – that allow data to flow freely between different platforms while respecting ownership.

Think of how Plaid works in the financial industry, connecting your bank to services like Venmo without requiring these companies to directly communicate. Your bank doesn’t need a relationship with Venmo for you to move money between them. This level of interoperability is essential for the music industry to move forward.

Digital Music News: Swinging back to the AI discussion – and next steps – is it too late to identify works already ingested into LLMs?

Edward: No, I don’t think so. We’ve seen the early stages of systems like Suno and Udio, but many more are coming. The most successful ones will start with authorized content, working directly with rights holders and ingesting properly fingerprinted material.There’s also a huge need for AI detection technologies – tools that can analyze music and determine what percentage was AI-generated versus human-created. These detection systems would use pattern recognition and other techniques to identify AI signatures in the music.

Ultimately, DSPs like Spotify and Apple Music will be the arbiters of what gets in and stays out, likely implementing their own detection systems alongside content policies.

Digital Music News: Edward, I think we’ve found our fearless metadata and AI monetization leader. Thanks for outlining your vision here.

Edward: Thank you, Paul. The technology is inevitable, so our focus needs to be on creating systems that benefit artists and rights holders in this new landscape.

Photo Credit: ThoroughlyReviewed / CC by 2.0

Snapchat owner Snap Inc. has finalized a broad number of licensing agreements with major music publishers, according to details tipped to Digital Music News.

The yellow ghost isn’t ghosting music publishers — according to signed agreement details shared with Digital Music News.

Per paperwork that somehow found its way to DMN’s place of business, Snapchat owner Snap Inc. is signing deals with a bevy of music publishers under deal terms structured by the National Music Publishers’ Association (NMPA). And for those who enjoy counting Benjamins, this is a juicy pot of revenue of nearly $15 million over two years.

Even better for the biz: apparently, this is the latest in a string of licensing agreements involving Snap, a decision that removes the need for those pesky, multi-year lawsuits. That hasn’t been the case with X, née Twitter, which has refused to pay for music licensing and remains locked in a legal battle with major music publishers led by Bob Valentine’s Concord Music Publishing and the NMPA.

Incidentally, Snap’s more cooperative stance could be paving the way for some high-profile artist collaborations ahead. In that light, which massive artist is planning a major event with Snapchat as soon as this week? — Stay tuned.

NMPA chief David Israelite confirmed to Digital Music News that this isn’t the first deal between music publishers and Snap Inc. — far from it.

Instead, this is simply the latest re-up of a longstanding licensing agreement, meaning the terms were ironed out years ago and inked multiple times.

Shifting to the dollar amounts involved, the blanket agreement covers a two-year span and a guaranteed pot of $14,660,010. The opt-in agreement window lapsed in March after a 90-day window, and participating publishers will claim their share of the purse based on a pro-rata, market share calculation.

For Snap and its collection of properties, this deal looks all-encompassing.

Beyond the core Snapchat app, the licensing agreement also covers Bitmoji and Zenly and associated players, pages, apps, websites, tools like Lens Studio, and Messaging products — though it looks like the Snapchat kitchen sink isn’t included.

Ted Suh, Head of Music Partnerships at Snap, appears to have been quarterbacking the deal for the social media platform. Snap declined to comment on the licensing agreement.

According to the contract terms, any NMPA member publisher can jump into the agreement. In terms of who isn’t part of this opt-in deal, the language strongly suggests that the biggies have already structured separate contracts, including Sony Music Publishing, EMI Music Publishing, Kobalt Music Publishing, Universal Music Publishing Group, Warner Chappell Music, and BMG Rights Management.

For everyone else, the deal flexes the NMPA’s muscle and its representation of a broad swath of the global music publishing industry. And what about those who aren’t members of the NMPA? According to more information spilled to DMN, non-NMPA publishers will have to strike their own agreements, though we’ve also learned that Snap flat-out isn’t doing deals with them.

The NMPA opt-in itself is global in scope, with Argentina the only exception.

And in case you think we’re making up the whole ‘sign here or we’re going to court’ vibe, it’s actually spelled out in the contract.

Indeed, the agreement acknowledges that while “the parties disagree as to whether or not, under the copyright laws, Snap is required to obtain a license for Snap’s users’ use and/or exploitation of musical compositions and/or lyrics,” the participating music publishers agree “not to sue Snap or its users for the use of musical compositions or lyrics… in order to enter into the License Agreement.”

In other words, ‘we came to an understanding’ — music industry style.

A view from the booth at Barry Can’t Swim’s Friday night Shrine throwdown (Photo: Digital Music News)

Searing Scottish DJ Barry Can’t Swim packed The Shrine for two nights in Los Angeles this weekend — with his full band in tow.

Ninja Tune phenom Barry Can’t Swim capped his West Coast mini-tour this weekend with a pair of packed gigs at The Shrine — with a Bonnaroo slot next.  The fast-rising Scot is quickly making friends and influencing people, with the first Los Angeles gig oversold and expanded into a second night.

And for those who like to be entertained, Barry Can’t Swim — aka Joshua Spence Mainnie — essentially destroyed it. For starters, The Shrine is a cavernous space, though the sound was properly balanced and full, with a non-stop laser and light show to accompany the music.

Those putting on DJ sets are intimately familiar with how difficult it is to pull off a proper choreography, though team Barry crushed it. The result: Barry Can’t Swim’s adherents were dancing their asses off, with Mainnie deftly threading together tracks in a tightly-woven set.

Barry Can’t Swim definitely has his die-hard fans, and this story is likely to grow.

Part of the appeal might be the DJ’s differentiations from the typical solo DJ setup. Barry Can’t Swim’s visual display was great, though the real attraction goes beyond the backdrop razzle-dazzle.

Instead, this ‘DJ’ is actually a band, with a real drummer, keyboards, and even a full-blown string section trotted out. That fits Mainnie’s orientation, which is more instrumental musician than DJ and certainly not constrained to a particular dance sub-genre. Instead, the music of Barry Can’t Swim traverses jazz, house, afrobeat, and even shoegazer, with splices of random recordings peppered throughout.

That said, Barry Can’t Swim is very much a DJ on stage, and his performances are solidly dance events.

Still, it’s surprising how much the live instruments alter the musical motif, including the energetic drumming. It makes you realize that decades after the advent and widespread acceptance of the drum machine, there’s still something left behind.

Superfans also got a nice preview of some upcoming material at this weekend’s gigs. That includes some tracks from the forthcoming album, Loner, which drops July 11th on the aforementioned Ninja Tune.

Walt Disney Concert Hall in Downtown Los Angeles, home base for the LA Philharmonic (Photo: Monica Volpin)

Ticketing scams and glitches remain a serious concern for concertgoers, particularly given the difficulties many experience attempting to recover lost funds. The latest meltdown happened in Los Angeles over the weekend, where potentially dozens of LA Philharmonic concertgoers were turned away after StubHub sold the same tickets multiple times to different buyers.

It was a rough weekend for classical aficionados in Los Angeles, thanks to an unfortunate meltdown involving StubHub secondary tickets. The issue, which may have been the result of a coordinated scam, resulted in the same tickets being sold to multiple different buyers.

The result: a crowd of LA Philharmonic buyers were turned away despite holding StubHub-purchased tickets — while being told that people had already claimed their seats. According to those running the box office and ticketing at Disney Concert Hall in Downtown Los Angeles, the issue was a recurring theme all night, with potentially dozens of concertgoers left in the lurch.

The LA Phil’s Friday evening concert looked like a sellout, though the Philharmonic box office was able to directly sell a limited number of full-priced tickets to scrambling fans.

That included me: after StubHub informed me that my tickets had already been claimed and people were sitting in my seats, I scrambled to purchase a last-minute ticket. Others weren’t so lucky.

The LA Phil’s performance — which included a Mozart Piano Concerto and the work of early-20th-century composer Nielsen —  continued throughout the weekend. It’s unclear if the problem was resolved for the other shows.

StubHub offered to refund my original purchase ‘within 5-8 business days,’ and subsequently emailed that the issue was ‘under review’. A StubHub representative also offered to look into the situation, though others experiencing StubHub issues have reported struggles getting refunds on problematic tickets. For many, a refund simply isn’t enough — if it arrives.

(The ‘under review’ status for refunds seems to be a common point of frustration, with delays lasting weeks or even months — if the money is returned at all).

The problem is the latest ticketing snag impacting unlucky concertgoers.

Just recently, Irish and Scottish authorities warned of large-scale scams involving Oasis tickets sold by Ticketmaster. Those scams also involved tickets that didn’t exist, with fans being bilked of “large sums of money” after purchasing advance tickets or last-minute tickets that did not exist.

Similar problems have plagued Oasis tickets in North America, which prompted an ugly war-of-words between Ticketmaster and StubHub over the source of fake or ‘phantom’ tickets. After getting jabbed for offering fake tickets, StubHub quickly accused both Live Nation and Ticketmaster (as well as the National Independent Venue Association) of “partnering to spread false information about ticket availability in an attempt to further their own policy agenda and create distrust in the secondary market.”

In a quick retort, Live Nation fired back that “StubHub is lying,” while blaming the secondary ticketing platform for offering fake tickets immediately after tickets went on sale.

“Oasis tickets were offered for sale on StubHub immediately after the North American dates and venues were announced, before any on-sale, and before anyone had rights to particular seats – as the listings explicitly claimed,” the ticketing giant blasted.

Just last month, StubHub hackers were busted after scamming $600,000 worth of fake Taylor Swift tickets. The massive heist, which involved over 900 tickets, was the result of an inside job.

Photo: Luis Quintero

Changes are afoot in the music industry conference circuit.

You’re probably too young to remember the decadent days of MIDEM in the South of France, though these days, look no further than SXSW for shifts in the modern-day music conference landscape. Suddenly, South-by — once an obligatory time- and budget-drainer — looks to be shedding attendees.

Ahead of the controversial 2026 programming changes, DMN’s on-the-ground team noticed something funny this year: the crowds were distinctively thinner in Austin. Blame it on mass label layoffs, more profit-conscious companies, a shift away from low-productivity debauchery — or heck, the rain — but SXSW doesn’t look like it’s heading north in terms of its 2026 attendance.

Those favoring the kvetch note that the days of a music-focused, expertly-curated SXSW are over. The showcases have declined, according to one disaffected A&R exec, with another lamenting the long flight for an overly-diluted tech/film/eco/music/whatever blob of a party — I mean, ‘conference’.

If the industry is looking for something more serious, that theoretically plays into the hands of Music Biz. But was a Nashville uproot to Atlanta a good call?

That’s a question we’ll be able to answer in a few weeks. But why the switch?

DMN has learned that Music Biz had always intended to switch cities yearly, but COVID planted the event in Nashville for a prolonged stretch. But given the growing momentum of Music Biz and its association with Music City, was shifting to Atlanta the wise play?

Aside from logistical arguments, there’s also a pressing political reason for keeping the action in Nashville. While we loathe to wade into politics, the industry is now facing some distinct challenges trying to get the Trump Administration and Republicans to care about urgent issues like AI and copyright.

Time couldn’t be more critical, though insiders lament that similarly-situated Hollywood is getting nowhere on critically important AI and IP-related concerns, for obvious reasons. But maybe there’s a strategic answer to this riddle.

The logic goes something like this: Hollywood is certainly a related industry, but music isn’t as fixed geographically — or politically. During his first term, Trump was flanked by country superstars and a certain Detroit rocker when he signed the Music Modernization Act (MMA). Given that success, is Tennessee the perfect hub for lobbying this administration and Congress again — particularly given the shutout being experienced by Hollywood and others on the wrong side of this political aisle?

Meanwhile, speaking of Capitol Hill fixers, National Music Publishers’ Association (NMPA) topper David Israelite could be building the industry’s next ‘It’ conference.

Israelite’s Music Investor Conference (MIC) is now in its third year, kicking off this June in Manhattan. But this event has a totally different game plan involving limited capacity and an invite-only, serious dealmaking crowd. That’s generating some surprisingly nice pre-event buzz, with New York offering a more serious backdrop. Are we looking at a budding Davos for music taking shape?

So far, we’re hearing that MIC isn’t yet getting the ‘heavy heavies’ like UMG titan Lucian Grainge — at least en masse — though a fairly influential cast of folks are expected to attend again this year (at least based on the 2024 list).

Meanwhile, it’s tricky to get a read on future industry crowds given a tough year+ of layoffs.

For obvious reasons, labels and tech bros like to keep layoffs on the hush, though heavy downsizing at mega-companies like Spotify and WMG could be trimming crowds at future industry conferences. Was SXSW just a preview of what a leaner business looks like?

On the flip side, a lot of money has been pouring into this industry. As of mid-April, north of $2 billion worth of investments have dropped in 2025 alone, according to DMN Pro’s latest tallies. Will that tailwind mark the start of a surprisingly bullish 2025 for the music business despite the economic turbulence of late?

That topic and more coming to a music conference panel near you.

Chartmetric trending artist du jour, De La Soul

Digital Music News is now expanding its longtime partnership with Chartmetric, the industry’s most respected music intelligence and data platform.

Jumping in, DMN readers will soon have access to a constantly-updating track popularity ranking, complete with fast-emerging breakouts. Complementing the ranking will be Chartmetric’s latest data trend analyses, which will include a broad range of genres, artists, and broader worldwide music developments.

Everything will be available to Digital Music News readers in a neat dropdown widget, which will complement DMN’s existing industry coverage.

The dynamic chart ranking will lean heavily on Spotify Monthly Listeners and Chartmetric’s own scoring methodologies to monitor breakout tracks and artists, 24/7. For those seeking a real time ranking that better reflects trending realities online and off, there isn’t a better barometer of what’s bubbling.

For those that want to dive deeper, Chartmetric’s data-focused breakdowns will offer unparalleled examinations of music trends worldwide.

That includes featured articles from Chartmetric’s ‘How Music Charts,’ a dedicated editorial column focused on music charts, data, and analytics – with extremely time-sensitive and relevant articles.

And that’s in addition to DMN’s non-stop, hard-hitting industry coverage and DMN Pro analyses.

“Chartmetric and Digital Music News have been partnering for years with a mission to broaden music industry intelligence,” said Chartmetric President & COO Andreas Katsambas. “Now, we’re taking things a step further.”

Meanwhile, Chartmetric is recharting the possibilities in A&R with a recently-released ‘Talent Search Tool’ to power better predictive intelligence.

As profiled on DMN, Chartmetric’s Talent Search Tool sifts through data from over 10 million artists, identifying key signals that suggest an artist’s potential for long-term success. Each artist receives a daily score from 1 to 10 across various metrics, making it easier to spot emerging talent worthy of deeper investigation.

Just recently, Chartmetric joined forces with DMN to broaden awareness of its data-powered predictive tool.

Photo Credit: Flou

For all the attention paid to missing music metadata, copyright infringement, and royalty battles, the music industry often overlooks a potentially bigger issue: chaotic music contracting. Enter Flou, whose CEO, Alexiomar Rodriguez, is helming one of the more promising missions in the music industry: to fix the chaos that surrounds music agreements. Here’s a breakdown of his vision for ‘Music Contracts 2.0’ — including a detailed white paper.

What’s wrong with music contracts? For the answer to that question, one must start at the beginning — i.e., the first draft of an agreement.

Bad deals happen, and plenty of court cases focus on missed deliverables and differing interpretations. However, according to Flou founder and CEO Alexiomar Rodriguez, the bigger problem lies in the chaos surrounding the contract drafting, signing, and post-signature stages.

Rodriguez — an Orlando-based music attorney who cut his teeth in the music industry hotbed of Puerto Rico — battled the same pile of shared docs and ‘versioning hell’ familiar to lawyers, labels, and artists alike. In response, Flou is aiming to reengineer the entire music contracting process, and replace the current chaos with a SaaS-like update that prevents downstream disagreements, metadata issues, and missed deliverables.

Just recently, DMN joined forces with Flou to accelerate the industry’s shift to a completely different contracting approach. The very real possibility is that in just a few years, it’s entirely possible that the music industry lands in a totally different — and saner — place.

Investors love this kind of problem/solution startup — and Flou is focused on a specific music industry problem. But what is ‘Music Contracts 2.0’?

At its core, Flou’s ‘Music Contracts 2.0’ system features a centralized ‘Contract Lifecycle Management (CLM)’ platform that replaces a constellation of disconnected applications and sharing protocols like Gmail and Dropbox. On the creation side, Flou also includes automating contract drafting with templates and forms, streamlining sending, signing, and storing contracts with tracking and notifications, and integrating with other management and royalty systems.

The logical solution is rooted in serious pain — felt every day by lawyers, artists, and everyone in between. “Current music contract management is messy, outdated, and leads to lawsuits, lost money, delayed releases, missed payments, and broken relationships,” Rodriguez relayed.

Surprisingly, current contracting still features paper-based systems, manual tracking, and reliance on email and spreadsheets. It’s not that the tools themselves are bad, but they are rarely interconnected and frequently impossible to track cohesively. The result is a familiar, headache-producing swirl of disjointed elements.

Flou envisions a 2.0 replacement that accelerates deal-making and offers better control on both sides of the table, as well as stronger privacy protection, time savings, reduced costs, and increased efficiency.

“Flou is specifically designed for the music industry with pre-made templates, bilingual contracts, smart automation, and a secure central location for all contracts,” Rodriguez explained.

“Our goal is to shift the music industry from a slow, stressful, and expensive contract process to a fast, simple, and clear one, ultimately turning contracts into an advantage rather than a headache.”

If this sounds like a glass of ice water in your current hell, check out the white paper below – and theflou.com for more info.

Mock deal terms in beatBread’s Deal Comparison Tool, with an ‘Expected Case’ for content performance during the deal term (photo: beatBread)

For those artists and indie labels lucky enough to have multiple funding offers, beatBread now offers a potentially game-changing tool for weighing competing options. Surprisingly, beatBread’s initial results show that most artists and indie labels (60%) would likely sign a sub-optimal deal before thoroughly vetting their options.

Once upon a time, music financing was a dark art driven by elusive A&R instinct. These days, thankfully, there’s a lot more data behind funding decisions, and labels (and their distributors) aren’t the only game in town. And while indie labels and artists now have more choices, sorting through what is a good and bad deal is difficult, as terms are complex, hard to understand, and fraught with traps and pitfalls. But 2025 might be the year that artists and indie labels gain a serious upper hand.

Last month, we profiled beatBread’s recently released Deal Comparison Tool, a handy platform for weighing a stack of competing music financing offers. In a nutshell, the Tool allows an artist or indie label to view a number of offers side-by-side and weigh those offers according to a variety of parameters. Just recently, DMN partnered with beatBread to further amplify this newly released platform.

Artists and labels can simultaneously compare up to five offers, analyzing upfront cash, fees, recoupment time, and long-term costs. Even better, it allows artists, indie labels, and IP owners to ‘normalize’ offer metrics, which comes in handy if deals are being extended from labels, distributors, publishers, or investors.

Of course, any artist or label can manually compare offers before deciding. The problem is that there are so many variables to weigh, and headline terms don’t tell you how costs and recoupment will likely play out over time.

‘Headline’ deal terms can mask a deal’s actual costs. And understanding outcomes based on catalog and new release performance is extremely difficult.

“Even the most sophisticated executives are sometimes deceived by ‘headline terms’ in a deal,” beatBread CEO Peter Sinclair relayed. “The Deal Comparison Tool gives artists and labels the chance to cut through the fog and get a true understanding of a deal because it links the key terms of a contract to a real range of probable outcomes as music is released and continues to perform.”

Sinclair is hugely confident about the comparison platform’s power. To put it bluntly, he’s not sure there’s a better tool out there for weighing different offers—online or off—which is exactly the confidence you need to release something of this magnitude. Just a few weeks after its launch, the Tool is being used by a significant number of artists and labels to weigh their funding options.

The strange part is that a majority of those using the Tool have chosen not to work with beatBread.

“If beatBread is only funding four, three, or even two out of ten deals we’re helping to vet, then we’re winning,” Sinclair explained. “Artists or indie labels might choose a beatBread partner or select a deal on a party entirely unaffiliated with beatBread.”

But, according to Sinclair, they know they’re signing the best offer.

“I’d rather beatBread develop a reputation as a straight shooter than try and convince an extra three or four people out of ten to take our deal when it’s not the best deal,” he continued.

Sinclair clarified, however, that this isn’t a self-service tool.

Instead, beatBread has experts to help artists and indie labels visualize the trade-offs between deal structures, including revenue splits, term lengths, and long-run costs. Once everything is laid out, determining the “best deal” depends on various factors and preferences, including the artist or indie labels’ expectation of catalog performance, risk appetite, and need for upfront cash vs. long-term cash flow.

Among the early adopters is Dan Englander, founder of indie label KingUnderground.

“When I came to beatBread, I had what I thought were two quite attractive distribution offers,” Englander said. “After seeing the output of beatBread’s Deal Comparison Tool, I realized there were several scenarios where I could have ended up strapped for cash.”

Englander didn’t end up selecting beatBread’s deal, though he did sign with a beatBread partner, which means beatBread co-invested in the deal alongside its partner.

Sinclair noted that Englander’s situation is not unique. The landscape for music financing presents a number of choices to artists and indie labels, but those choices often have many pitfalls and traps.

“It has become standard industry practice to offer headline terms (nominal term length, total deal value) that simply do not reflect how a deal is likely to play out in the real world,” Sinclair added.

“In the worst cases, beatBread’s beta test showed that some independent labels would most likely end up forced into a distress sale after a few years had they taken the seemingly best distribution or label JV offer in front of them.”

“It’s no secret that indie artists and labels have more options than ever,” Sinclair said. “BeatBread’s mission is to help them make the right decision, even if they choose a funding partner other than beatBread.”

TikTok USA, circa 2025 (Photo: TCY)

Months after ‘the ban,’ there’s no telling what happens to TikTok next in the US.

After inching oh-so-close to a deal to secure TikTok in the US, China apparently pressed hard pause on the arrangement following Trump’s tariff slap. So what does that mean for the music industry?

If you love uncertainty, this one’s for you. Trump is now extending the ban by another 75 days, though a hard clock is now ticking on a deal that was apparently 99% done. Congressional pushback on the ‘phase 2 extension’ is already happening, and Apple is seeking White House assurance that the app can remain on its App Store.

This slow-motion cookie crumble could go in any direction. Among the possibilities within the next 30 days: TikTok shutting down for good or continuing business-as-usual — or, potentially, some insane variation in the middle.

Last we checked, TikTok is available on both the iOS App Store and Google Play Store, though this situation is volatile. And certainly not a recipe for crafting stellar, long-term artist marketing campaigns — or advertising campaigns, for that matter.

Most music folks are smartly spreading their marketing efforts across the gamut of social media giants, with IG Reels and Shorts getting a nice stability bump. That said, as long as TikTok is ticking, it has the power to blow stuff up — including entire artist careers and dusty catalog tracks.

While the over-under on TikTok’s survival has gone haywire, some executive ship-jumping is worth noting — particularly TikTok Music ex-honcho Ole Obermann, who recently packed his bags for Apple Music. And he’s not the only one potentially pondering the writing on the wall.

Meanwhile, other platforms continue to seize the moment. On that note: what major social media platform just inked a broad-reaching deal with major music publishers? (Hint: the first letter isn’t ‘X’…)

On a broader note, few in the music business seem to be rooting for TikTok’s survival.

It’s not that TikTok isn’t making some effort to play nice with the music business. Just last week, for example, TikTok was among the supporting sponsors at the National Music Publishers’ Association (NMPA) golf classic and fire relief efforts in Los Angeles. But for the most part, the vibe within the music industry isn’t warmly supportive, to say the least.

TikTok famously refused to reasonably compensate rights owners until absolutely forced, with the aforementioned Obermann battling it out with Universal Music Group for weeks before a deal was hammered out. Indies are also understandably cool on this low-paying platform, though TikTok’s marketing muscle is certainly potent — especially if the viral fairy gods tap your shoulder.

Then again, that’s the aspiration for rivals like Reels and Shorts, among others. And we get the sense that witnessing a heavy door slamming on TikTok’s derriere would be oh-so-satisfying for many industry folks.

Guess everyone’s replaceable — and let’s face it, life will go on in the music industry, with or without TikTok USA playing a role in it.

More as this develops.

Got a juicy tip? Hit me up at paul@digitalmusicnews.com or Signal (@digitalmusicnews.07).

Fallout Boy’s Pete Wentz and father Pete Wentz, Sr., at the NMPA SONGS Foundation Golf Tournament on Monday at Riviera Country Club (Photo: NMPA)

One could be forgiven for predicting that the National Music Publishers’ Association (NMPA) might nix their annual golf outing in Los Angeles this year. Instead, the NMPA SONGS Foundation Golf Tournament went ahead as planned this week — just minutes from the fire lines in Pacific Palisades.

Ironically, Mother Nature offered a smattering of light rain and cloudy skies on Monday—cool and damp climes for the NMPA’s annual SONGS Foundation Golf Tournament at the swanky Riviera Country Club in Pacific Palisades. That type of weather was sorely needed a few months ago as fires ripped through the area, though Riviera was thankfully spared.

Things have been quiet around these parts ever since: according to one Riviera caddy, member traffic has been sharply down at the club since the Palisades fires for a variety of reasons. For music publishers, songwriters, composers, and others attending the National Music Publishers’ Association’s annual golf outing, it was difficult to imagine just how close the fires burned — though the mood was upbeat and donation dollars were flowing.

All in all, the event rustled a cool $350,000 for fire relief efforts through MusiCares, according to NMPA Senior Vice President of External Affairs Charlotte Sellmyer. Not bad for a single-day event, and the songwriting and publishing communities will benefit.

Another interesting twist: LA firefighters were the featured stars this time around, though plenty of superstar songwriters, performers, producers, and publishing execs were also milling around.

Among the who’s who of attendees: Fallout Boy’s Pete Wentz (and his father); Cam Avery of Tame Impala; Mark Bryan of Hootie and the Blowfish; Walker Hayes; Dan Omelio (aka Robopop); Adam Granduciel of The War on Drugs; songwriter Ross Golan; Mark Wystrach and Cameron Duddy of country group Midland; Cooper Alan; producer, composer, and writer Alex Hitchens; Mark Cazorla of The Record Company; and Mozella.

On the executive side, the ranks included Jody Klein (Abkco), Larry Mestel (Primary Wave), Jeff Pachman (Domino), Peter Brodsky (Sony Music Publishing), Frank Liwall (Royalty Network), Jenny Kim (Morgan Stanley), Thomas Winkler (Amazon Music), Jon Cohen (Amazon Music), and Bob Valentine (Concord).

NMPA brass were also hanging out, including CEO David Israelite, EVP and General Counsel Danielle Aguirre, and the aforementioned Charlotte Sellmyer.

Beyond that, the sponsor list was deep, with seemingly every hole sponsored by a music publishing heavyweight, streaming platform, PRO, or industry law firm (in this case, LaPolt Law, P.C.).

Spotify was non-existent at the event, which makes sense given the DSP’s deep beef with music publishers and songwriters. But Amazon Music was thoroughly involved, and even TikTok was a sponsoring partner.

The festivities also included a performance by songwriter Wrabel, who offered a stunning rendition of “All That Really Matters” by Teddy Swims — a song Wrabel co-wrote. All in all, it was a pretty damn good shindig — scroll down for more pics!

Members of the Los Angeles Fire Department (Photo: NMPA)

Pete Wentz (left) and NMPA chief David Israelite (right) diplomatically discuss whose drive was actually longer (Photo: NMPA)

Concord Music CEO Bob Valentine (Photo: NMPA)

NMPA Senior VP of External Affairs Charlotte Sellmyer kicks off the shotgun round (Photo: NMPA)

DMN’s Paul Resnikoff hits ‘publish’ on another bomb (Photo: NMPA)

Wrabel performs a stunning set for assembled guests (Photo: NMPA)

Jenny Kim (Morgan Stanley), David Israelite (NMPA), and Wentz father and son at Riviera’s first tee (Photo: NMPA)

Songwriter extraordinaire Mozella tees off (Photo: NMPA)

Riviera’s plush greens (Photo: NMPA)

A Beyoncé Cowboy Carter billboard alongside the I-10 freeway in West Los Angeles promoting five upcoming shows at SoFi Stadium (Photo: Digital Music News)

Beyonce’s Cowboy Carter tour is proving to be a sluggish seller in multiple cities, with cheap seats sinking below $35 in several arenas across the US. Live Nation is pointing to ‘tremendous demand’ and a ‘record-breaking run’ for the tour — as scalpers look to dump excess inventory.

Despite searing success at the Grammys and a heavily promoted tour, ticket prices for Beyoncé’s Cowboy Carter tour are sinking in multiple key markets. Instead of instant sellouts, most shows have plenty of tickets available across Ticketmaster, StubHub, VividSeats, and other major ticket-selling hubs, with prices starting to slip below $35 in some markets.

So what’s going on?

With tickets broadly available and moving slowly, fans might be waiting to score last-minute bargains. And you can’t blame them: earlier this week, prices for cheap seats at several major arenas dipped below $35, with prices slipping below $30 at SoFi Stadium over the weekend, according to prices confirmed by Digital Music News over the past week.

Specifically, a $29 ticket was spotted for the May 1st date at SoFi Stadium in Los Angeles, while multiple $32 tickets were spotted for other dates including MetLife Stadium in East Rutherford, NJ (outside of New York City). In some cases, those floors have since moved towards $40 as weekend activity perks up, though a night out at a Cowboy Carter show won’t break the bank.

That offers a stark contrast to superstar sellers like Olivia Rodrigo, Oasis, The Weeknd, and of course, Taylor Swift, whose ‘cheap seats’ often soared into the low thousands while crashing major ticketing platforms.

Despite mass-scale inventory at major ticketing platforms, Live Nation is pointing to ‘tremendous demand’ and a ‘record-breaking run’ for Cowboy Carter.

Live Nation, which is promoting the tour across the United States and Europe, pointed Digital Music News to a 94% sellout rate. But many of those ‘sales’ seem to be reappearing in the secondary market, where ticket prices are sinking fast. Even Ticketmaster’s site is full of seating options, including resales.

Live Nation has also added nine additional shows to the tour, including a Las Vegas date, beyond the initial 22 stadium stops. That sounds aggressive, though perhaps ‘Cowboy Carter’ is galloping too quickly: In Los Angeles, for example, Beyoncé is playing an astounding five nights—though SoFi Stadium ticket prices might be sinking due to oversupply.

Across the pond, Bey is also scheduling six separate nights at Tottenham Hotspur Stadium in London. But ticket sales have also been sluggish in the UK, with only one date nearing a sellout on Ticketmaster’s site.

Prices sinking fast on SeatGeek for Beyonce’s MetLife Stadium dates.

Also worth noting: Beyonce’s country-themed tour is noticeably absent in country hotspots like Nashville.

Beyonce has been lambasted for being a country music tourist, and ‘Cowboy Carter’ is avoiding cowboy corners. Houston — Beyoncé’s hometown — is on the list. But most of the cities on the ‘Cowboy Carter’ tour aren’t exactly ‘down home’ locales, including New York, London, Atlanta, DC, Paris, Chicago, and Los Angeles.

More as this develops.

Photo Credit: RDNE

Concord Music’s rumored acquisition of Stem Disintermedia is fetching a bigger price tag than previously thought, according to DMN sources.

For those who love that music industry deal flow, here’s ‘another one’: according to well-placed sources to DMN, Concord Music is plunking down more than $100 million for indie music distributor and artist financier Stem Disintermedia. That is more than double earlier whisper numbers — and apparently this is a ‘done deal’ with final details being tied up.

In terms of bringing this home, big props are being given to Stem’s ultra-shrewd co-founder and CEO, Milana Lewis. Lewis didn’t respond to a request for comment on the latest whisper number, and a Concord representative was also mum. Incidentally, DMN has also learned that this deal derby featured multiple interested parties — including Sony Music Entertainment — though it appears that bidding battles were relatively tame.

Earlier, various trade rags offered differing takes on what’s happening. Among the reported details are a sale price of $50 million—or definitely not—with a full-blown sale being transacted (or maybe it’s just an ownership stake). On the last point, DMN sources have explained that this is a finalized transaction, though nothing official has been released, so stay tuned.

But, is $100 million really that great?

Some well-heeled dealmakers, including The Raine Group and the venerable Fred Davis, are pulling the strings on this one. But doing the math, this may be less of an epic dunk than it appears: According to data from DMN Pro’s authoritative Music Industry Funding Tracker, Stem has pulled in roughly $42.5 million in funding since its founding in 2015, with an additional $250 million credit facility secured last year to power an artist-financing expansion, including artist advances.

That suggests a modest investor return for all parties involved despite the 9-figure sticker. Will anyone score lifetime ‘F-U money‘ once this deal is closed? Aside from the company principals and even angels, the list of investors is lengthy and includes Evolution Media, Aspect Ventures, WndrCo, Upfront Ventures, Block, Slow Ventures, and QED Investors, among others.

That raises the question: perhaps this is a good time to get out in a frothier moment for indie distributors?

On that last point, some static has emerged over Stem’s financing terms, with rising interest rates and tighter lending standards impacting artist deals.

Indeed, this has apparently become a growing issue at Stem, given that sought-after artists can shop around for better deals and advances, pushing up the price of scoring high-performing talent relationships. Beyond that, the broader bonanza era of low-interest rates couldn’t be more over, putting enormous pressure on leveraged plays.

(Incidentally, those plunging into the funding deals in DMN Pro should not confuse Stem with the NFT-focused ‘Stems,’ which secured a $4 million round in late 2022.)

Back to the matter at hand, broader questions are now percolating on whether Warner Music Group was merely kicking the tires on Stem — or if they were even seriously at the table.

Just recently, WMG chief Robert Kyncl pooh-poohed the notion of acquiring independent distributors, preferring to build rather than buy. It all sounds logical, though that takeaway seems to contradict rumors that WMG was seriously bidding.

Just days later, WMG also acquired RSDL.io via its independent distro arm, ADA, suggesting that Kyncl might be playing a Steve Jobs-like game of ‘reality distortion’ to calm rival bids.

Separately, it looks like business as usual at Stem despite the hastening acquisition.

Earlier this week, Stem Director of Artist & Label Strategy Kylie Everitt picked apart some indie distribution details at Musexpo at the Castaway in Burbank, part of a broader industry panel moderated by Digital Music News that also included execs from Gyrostream, Audeze, Strm Music, Hook, and Chartmetric.

More as this develops.

Photo credits: Graphic Design by Emily, snsnep

As UMG mega-studs like Lucian Grainge and Michael Nash continue to plot the strategy behind ‘Streaming 2.0,’ a bevy of questions are swirling. What will this bold and daring future of music streaming look like — particularly as it relates to revamped superfan and ‘super-premium’ tiers?

Universal Music Group’s most recent quarterly earnings call etched out—at least preliminarily—the broader vision behind ‘Streaming 2.0’  as it relates to upcoming streaming tiers and superfan maximization. Major streaming music platforms are part of the plan, but what will this bold future entail?

As it relates to maximizing per-subscriber revenue, CEO+Chairman Lucian Grainge outlined a shift from the currently limited plans at major streaming music platforms to something more sophisticated — and profitable. Think multiple tiers for different levels of music fans—with superfans dishing out more for extra goodies—and you’ve got the general idea.

Welcome to the bright future of music streaming, which includes, among many other things, more subscription tiers stuffed with goodies.

But this isn’t just Spotify cooking up a super-premium tier anymore. Now, all the streaming platforms will be playing ball, and every major platform is in discussions with UMG and other major rights owners.

All of which raises the question: What will people pay for – and what will they pass over?

According to the intercepted chatter, 2.0’s paint on upgraded tiers is far from dry for obvious reasons. Well-crafted strategy documents are lovely, though the grizzled industry vets among us warn that trial-and-error may be required to learn what sticks.

This brings us to the latest error: UMG and other major labels had been leading the charge on raising prices only to get spooked by the subscriber ‘plateau’—but does this mean that music fans can still be coaxed into paying more than $11.99 a month if the goodies package is enticing enough?

If you’re one of the legions of laid-off execs blindsided by plateau anxiety, you might be skeptical. However, this might be the strategic pivot the industry needs. Still, maximizing per-monthly charges with smartly-crafted super-tiers is a tricky game, especially since music fans can always say no.

And let’s be honest: so far, the industry’s response to super-premium proposals has been a bit ‘meh‘.

For years, Spotify has been teasing a super-premium package. But almost immediately after Daniel Ek offered the company’s latest version, several skeptics wondered if the billionaire CEO was losing his edge. For starters, Ek seems to have overlooked that premium audio—a major part of Spotify’s splashy upcoming upgrade—is already a serious differentiator at Apple Music. Perhaps most importantly, it’s baked into Apple’s lower-cost plan and integrated hardware.

Beyond that, Ek’s lightbulb moment regarding pre-sale concert tickets sounded equally problematic after Live Nation CEO Michael Rapino offered few promises to Spotify and other streaming platforms—that is, outside of accepting the biggest bids for exclusive access.

So, Spotify can offer you a pre-sale offer if Citi doesn’t offer a higher bid for the privilege?

Will Anybody Pay $6 Extra for Spotify’s ‘Music Pro’? A Hard Look at Spotify’s Attempt to Break the Streaming Plateau

And what about the endless stream of goodies already enjoyed by streaming subscribers – at no extra cost?

Case in point: Spotify is already doling out pre-sale exclusives to loyal artist followers. But now you’ll need to pay for that?

And that’s just one example of the endless freebie perks streaming music fans enjoy. Indeed, streaming music platforms have been bending over backward for years to give subscribers more stuff – without tying those improvements to increased prices or premium tiers. That includes lyrical overlays, better algorithmic recommendations, curated radio shows, integrated concert listings, merchandise offerings, exclusive artist showcases, podcasts, audiobooks, and high-fidelity audio.

All of which begs the question: How much more does this industry have left to give?

According to Universal Music Group, the flowing tiers of ‘Streaming 2.0’ will lure people to pay more. Grainge & Co. say they’ve done their research, and a significant portion of current subscribers are willing to pay more—i.e., if they build it, they will upgrade.

And maybe we’re truly living in ‘Streaming 1.0’. But how easily does 1.0 go to 2.0 – and will streaming music platforms work in lock-step to get the industry there?

For inspiration, you have to look across the other pond to China. That’s where the success of Tencent Music Entertainment’s ‘Super VIP’ tier is whetting the appetite for higher-priced tiers that revolve around higher-value offerings. Now, the billion-dollar question is whether that sort of traction will take root in the US and worldwide.

More as this develops.

Denver’s Señor Bear, one of hundreds of venues tracked by Audoo’s recent song-tracking pilot.

Theoretically, performing rights organizations (PROs) track and tally every song played in public and streaming platforms – then dole out the royalties accordingly. Now, London-based Audoo has hard evidence showing that billions of song plays can be counted with near-100% accuracy.

While mega-PROs like ASCAP and BMI do a laudable job of tracking, matching, and distributing royalties on billions of tracks played in the United States, a nagging question is whether these vast systems can be improved. This is more than just an academic musing: the answer to this surprisingly complex question has the potential to reshape the public performance sphere for decades to come.

Enter Audoo CEO Ryan Edwards, who is driven by a mission to count every song played worldwide in public places for years — and is marching towards that goal with backers like Bjorn Ulvaeus and Sir Elton John. Theoretically, the tech exists to count everything with total accuracy, though the details are devilish. Accordingly, Edwards and his team have spent millions developing the ‘Audio Meter’ and deployed it into thousands of venues and public places worldwide to capture the music in action.

That effort is now hitting the United States. Just recently, Audoo concluded a far-reaching first entry to the US in Denver involving hundreds of public places – with nearly 100% of songs played in those establishments tracked. That included restaurants, gyms, bars, and retail establishments across the city.

“The feedback from the license holders was very supportive,” Edwards told DMN. “Many of them have wondered for years how their fees are distributed and were very passionate about the way music sets the tone of their businesses.”

The results of the Audoo pilot, shared with Digital Music News and part of an ongoing partnership, began in late June of 2024 and concluded in February of this year.

Among the most refreshing takeaways is that virtually every song can be successfully detected, logged, and tallied with all key metadata information (including ISRC & ISWC) using the installed Audio Meters, which makes sense. Imagine an industrial-scale, private version of Shazam in every venue, and you’ve captured Audoo’s business approach.

“Music has always been consumed in so many different ways, from business owners creating a ‘mixtape’ CD or playlist, playing the radio, and empowering employees to adjust the music based on the tone they need,” Edwards said. “To us, it’s about what’s been played and then reporting that accurately. Just get the music playing, and we’ll work with the PRO/CMO to do the rest.”

But what’s actually getting played? Here’s where things start to get really interesting. The current thinking is that music played in public spaces roughly mirrors popular playlists on media like terrestrial radio and streaming platforms. But Audoo’s data shows a surprisingly slim overlap with massive DSPs (i.e., Digital Service Providers or streaming platforms) and social media platforms.

Here’s just a quick look at the overlap – or complete lack thereof.

The following breakdown was pulled from a sample week in February (2025) using the top 40 songs tracked throughout the city. It was then compared to the top 40 songs played on other platforms for the same period.

What’s the overlap percentage? Take a look.

• • Audoo x Apple Music – 0% crossover
  • Audoo x Billboard – 2.5% crossover
  • Audoo x Shazam – 5% crossover
  • Audoo x Spotify – 5 % crossover
  • Audoo x TikTok – 0% crossover

“The results mirror what we have seen and reports in other markets around the world,” Edwards shared. “The more US cities we launch into, the more diverse [data] we expect to see. This can make a difference in thousands of creators making a living, or sadly, not.”

Also surprising: most of the music played in Denver hails from the United States (more than 50%) and the UK (nearly 15%). Other countries were marginal single-digit contributors, including Australia, France, Germany, and Sweden. Those percentages are likely different in other cities, though Audoo also highlighted some interesting exceptions.

Denver bar and restaurant Señor Bear, for example, plays a blend of Latin-inspired music from Argentina, Puerto Rico, Colombia, and Spain. The curated playlist also includes 24% American music sourced from local artists.

That’s a far cry from the top 10 list of most-played artists throughout the city, which includes Tame Impala, Jungle, Hozier, Taylor Swift, Morgan Wallen, The Rolling Stones, Fleetwood Mac, Bad Bunny, Zach Bryan, and Neil Frances. Sounds like tried-and-true stuff, though many of the most–played songs aren’t topping the charts on radio or Spotify.

The data also offers a range of other insights, including detailed breakdowns by venue type (restaurant or gym, for example) and the most frequently played songs. Audoo even tracks the level of commonality between different venue types, while identifying unique establishments (for example, a physical therapy clinic that is also a local music champion).

“Business owners know first hand the value of playing music, and of those we have started working with in the US, the feedback has been very positive,” Edwards shared. “Nobody challenges paying for a music license, despite the complexities of multiple PROs in the US. But knowing the hard-earned money is being paid to the artists they play is key.”

“Our technology is there to help PROs: no more manual surveys, proxy data sets, or outdated analogies. The past cannot be changed, but now is the time for accurate reporting for fair and transparent distributions.”

But what does this have to do with Congressional inquiries into PROs currently happening in Washington?

Just recently, the US Copyright Office launched a significant inquiry into PROs in response to Congressional concerns. Among the many questions being examined is how PROs gather performance information and how this impacts rights owners.

For Edwards, it’s a complex question with a surprisingly simple answer: just count everything!

Dave Cool, incoming President at MySeat Media (Photo: Dave Cool)

Here’s a recap of the latest music industry hires and in-house promotions.

If you have a job shuffle to share, we’re all ears. Send us a note to news@digitalmusicnews.com. If you’d like to post a job on our Job Board, just send us a request to noah@digitalmusicnews.com. And, keep track of all the latest music industry hires here.

MySeat Media, an artist branded app platform, has hired Dave Cool, former Bandzoogle CRO, as its new President. Cool brings over 20 years of music industry experience to MySeat, which empowers artists to own their data, engage with superfans, and generate revenue through branded mobile apps.

Eastern Acoustic Works (EAW) has hired Mark Posgay as their new Vice President of Global Sales to manage their global sales channel and drive growth. Posgay brings over 20 years of professional audio industry experience to EAW, having previously held global sales roles at companies like Sennheiser and HARMAN International.

AEG Presents promoted Andrew Klein to President of Global Partnerships, where he will oversee all sales and activation efforts for the company. Klein has been with AEG for over two decades and has played a key role in securing sponsorships for major events like Stagecoach Festival and Camp Flog Gnaw.

Jodi Dawes has been named the Vice President of Publicity and Communications at Big Machine Label Group, where she will oversee public relations and strategy for its imprints. Dawes brings experience from Universal Music Group Nashville and boutique PR firms, and will report directly to BMLG’s chairman and CEO, Scott Borchetta.

Catch Point Rights Partners has promoted Annie DeConto to Director of Business Development in recognition of her contributions to the company’s growth and development. The company, founded by senior executives in the music and private equity industries, acquires rights and royalties from various music industry stakeholders.

Veteran business manager Dan Killian has been named an owner and stakeholder of FBMM, an entertainment business management firm headquartered in Nashville. Killian started at FBMM in an entry-level position and worked his way up to business manager faster than anyone in company history and is now the youngest owner in FBMM’s history.

The Association of Independent Music Publishers (AIMP) has elected Frank Handy of Peermusic as its National Chair for 2025-2026, with a remit to lead the organization’s efforts in educating and informing the independent music publishing community. AIMP, established in 1977, has chapters in Los Angeles, New York, Nashville, and Atlanta.

Activated Events has hired Lexia Thomas as Director of Artist Relations. This is one of three recent hires as the company continues to grow and expand its events.

The Los Angeles Philharmonic Association has extended the contracts of Herbie Hancock as Creative Chair for Jazz through May 2027 and Thomas Wilkins as Principal Conductor of the Hollywood Bowl Orchestra through 2028. President and CEO Kim Noltemy announced the extensions.

iHeartMedia Greensboro has named Christy Holifield its new Market President. She will oversee operations, partnerships, programming, and sales. Holifield brings experience from her previous role as VP of Sales for iHeartMedia Columbia and aims to drive growth and engagement in the Greensboro market.

Sony Music Nashville has hired Lauren Kilgore as its new Senior Vice President of Legal and Business Affairs. It has also hired Dennis Reese as Senior Vice President of Radio Marketing & Promotion to oversee radio promotion plans for RCA Nashville and Columbia Nashville and promoted Mallory Michaels to Vice President of Radio Marketing & Promotion.

Elsewhere, Sony Music Publishing has promoted Taryn Miller to Vice President, IT Global Copyright & Royalties. In this position, she will manage royalty and copyright systems and support enterprise applications. Henry Naldjian has also been bumped to Chief Technology Officer at the publisher to lead technological transformation and strategy.

DJ Johnny “Juice” Rosado has joined the Long Island Music and Entertainment Hall of Fame’s (LIMEHOF) Board of Directors. Rosado was lauded for his extensive experience and commitment to preserving Long Island’s musical heritage.

Tiara Hargrave has been appointed as General Manager of SLANG, an independent frontline record label under Influence Media, bringing her extensive experience in developing emerging artists. SLANG’s roster includes notable artists like Will Smith, multi-platinum producer Camper, and Grammy-winning producer 30 Roc.

V13 Media Group has hired Melissa Nastasi as their new Publicity Director. Nastasi will lead artist campaigns and media strategy for the company.

Dynamic Talent International (DTI) has launched a new Brand Partnerships and Sponsorships Division, aiming to connect creative talent with major brands across various industries. Industry veteran Mike Faul will lead the newly spun division. DTI, with a history rooted in rock and metal and expanding into K-pop, will utilize this new division to offer services like sponsorship acquisition and co-branded content creation.

The International Bluegrass Music Association (IBMA) has hired Rebecca Bauer as Marketing Director and Haley Grimm as Administrative Manager, while Elizabeth Dewey has been promoted to Communications Director. The trio will help to strengthen the IBMA team and support the global bluegrass music community, particularly with the upcoming relocation of the IBMA World of Bluegrass to Chattanooga, Tennessee and the celebration of the association’s 40th anniversary.

Jean-Baptiste Gourdin has been appointed President of the Centre National de la Musique (CNM) in France, succeeding Jean-Philippe Thiellay.

David Field is stepping down as Audacy’s CEO after 27 years and transitioning to a special advisor role. Kelli Turner has been appointed as the interim CEO. Under Field’s leadership, Audacy grew from 15 stations to over 230 and expanded into podcasting by acquiring Cadence13 and Pineapple Street Studios.

Jessica Fuller has been named Senior Vice President of Sales for iHeartMedia Asheville. She will lead the sales team and manage the Asheville market. iHeartMedia Asheville owns and operates seven stations.

Julie Adam has been promoted to President and CEO of Universal Music Canada, succeeding Jeffrey Remedios, who is now President of Strategic Development for Republic Collective.

Veteran booking agent Michael Kelley has joined The Kirby Organization (TKO), bringing with him a roster of artists including Save Ferris, The Lowdown Drifters, The String Revolution, and The Sweet Lillies. Kelley’s extensive industry experience includes roles at New Frontier Touring, Atomic Music Group, and Absolute Artists, as well as running his own firm and working with notable artists like Cake, Fastball, Rickie Lee Jones, George Clinton, NOFX, Leon Russell, and Green Day.

Mike Chester has been promoted to General Manager at Warner Records, expanding his role to include digital and viral marketing and artist development, while continuing to oversee promotion and commerce.

Mom+Pop Music is expanding to Nashville and has appointed Katie Fagan as President of the new office. Fagan aims to sign artists in the Americana, folk, alt-country, and indie genres, while also focusing on global talent.

Republic Collective, which includes Island Records, Def Jam Recordings, Mercury Records, and Republic Records, has announced several executive promotions and new hires, including Jeffrey Remedios as President of strategic development.

Ronald Day, president of entertainment and chief content officer at NBCUniversal Telemundo Enterprises, is resigning after seven years with the company.

Sonos‘ chief marketing officer, Jordan Saxemard, has left the company after less than a year, following other high-level departures and a botched app rollout. Pete Pedersen, a long-time Sonos veteran, will lead marketing on an interim basis as the company focuses on improving its core user experience amidst recent struggles.

The Mechanical Licensing Collective (MLC) announced four appointments to its advisory committees, including Jennifer Falco to the Dispute Resolution Committee and Iwona Wyrzykowska, Jessica Richling O’Malley, and Kristina Johnson to the Operations Advisory Committee. Additionally, Sean McGraw, Ana Ruiz, Patrick Curley, and Frank Liwall were reappointed to their respective committees.

Wise Music Group is appointing Dirk Lange as Managing Director of UK Rights Companies, effective April 2025, and he will relocate from Hamburg to London. Lange, who has been with Wise Music Group since 2007, will take over from Wiebke Busch, who will transition to a part-time role within the company based in Berlin.

Warner Music Group appointed Tomás Talarico as the new managing director of Warner Music Southern Cone, overseeing Argentina and Chile, succeeding Guillermo Castellani. Talarico brings experience from founding MOJO, an independent record label and digital distributor, and is expected to leverage his entrepreneurial skills to support artists in the region.

Chartmetric’s ‘Talent Search Tool’ sifts through an enormous amount of data to better predict winners (photo: Chartmetric)

You can forgive the music industry for being blasé about the fate of TikTok in the United States.

In fact, many have privately expressed to DMN that they’d love to see TikTok pack its bags. Over the past year, TikTok has done an impressive job of pissing off a vast range of rights owners, from Universal Music Group to the smallest indie. In the blunt language of this business, TikTok’s payouts stink — and so does its attitude towards rights owners.

But there’s a deeper reason why many in the music industry have done little to advocate for TikTok’s survival in the US: it just doesn’t matter as much for their businesses. That came into stark focus with UMG: according to data unearthed by DMN Pro, Universal Music was making more from paid downloads than TikTok royalties before their dispute.

Beyond the financial calculations, there’s an even more serious issue: chasing down viral TikTok artists is becoming a losing game.

“The TikTok gold rush is declining,” Chartmetric analyst Domenico Randazzo told Digital Music News while pointing to more reliable success indicators like Instagram engagement and user-created streaming playlists — among dozens of other data predictors.

Others, including Duetti, are finding that TikTok’s supposed star-making magic only runs so deep. TikTok is undoubtedly breaking new artists and breathing life into old songs, but the success levels aren’t great outside of the flashy outliers. Digging into the data, Duetti found that even amongst the fewer than 1% of tracks that ‘go viral’ on TikTok, only about 15% experience long-term streaming growth on digital service providers (DSPs) like Spotify and Apple Music.

Those stats aren’t shocking for data players like Chartmetric. The company quickly realized that music executives were shifting away from TikTok signing derbies and more towards sophisticated data analytics to identify the next generation of chart toppers. After nearly two years of intensive research, the company recently launched a predictive talent search tool, promising to give companies an edge in the race to identify tomorrow’s superstars.

The company’s new offering, simply called ‘Talent Search Tool,’ sifts through data from over 10 million artists, identifying key “signals” that suggest an artist’s potential for long-term success. Each artist receives a daily score from 1 to 10 across various metrics, making it easier to spot emerging talent worthy of deeper investigation. Just recently, Chartmetric joined forces with DMN to broaden awareness of its data-powered predictive tool.

“Data has always been an essential component of the gut instinct that A&Rs rely on,” says Chaz Jenkins, Chief Commercial Officer of Chartmetric. “But with so many artists releasing music today, it’s nearly impossible for anyone to have sufficient awareness of the marketplace.” In that soup, Chartmetric aims to offer a data-driven lens to navigate the overwhelming volume of music being released globally.

Decoding the Signals: What Makes a Future Star?

Chartmetric’s Talent Search Tool filters in action (photo: Chartmetric)

Chartmetric’s tool categorizes these signals into Performance Metrics and Contextual Metrics. Performance Metrics, such as user engagement (for example, Instagram likes relative to followers), consistent growth across streaming platforms, and user-created playlist additions, provide quantifiable measures of an artist’s traction.

Contextual Metrics, on the other hand, offer a more nuanced view, considering factors like editorial playlist placements, presence in “trigger cities” (those with high listener growth potential), international reach, and audience demographics.

“There is no single metric that can predict success,” explains Akash Mukherjee, VP of Product Management at Chartmetric. “Each of the signals we identified integrates multiple data points from many services.”

According to Mukherjee, the tool’s power lies in its ability to handle the “heavy analytical work behind the scenes,” allowing users to identify emerging talent far earlier than traditional methods.

Suddenly, Context Is King.

Chartmetric emphasizes that these metrics are not to be interpreted in isolation. Context is crucial. For instance, a low editorial curation score might indicate that an artist is gaining traction purely through organic fan engagement, which could be a valuable asset. “Extreme values provide context about an artist’s profile, not necessarily positive or negative,” notes Randazzo.

The tool’s flexibility is also key. Users can apply filters for genre, region, gender, career stage, and other criteria to narrow their search and find artists who align with their specific goals. This customization is vital in an industry where different stakeholders have varying priorities. Labels may seek rapid growth, while publishers might focus on established, recurring success.

But is Chartmetric simply setting the stage for the next ‘A&R arms race’?

Companies are notorious for glomming around rising TikTok stars with checkbooks in hand. But Chartmetric is hoping to offer something more tailored to what different companies are actually chasing. Chartmetric’s Morgan Burrell told DMN that companies are now racing to “determine specific findings and tailor the tool to individual needs” instead of chasing a single viral sensation.

That said, more sophisticated data could create future signing derbies, particularly around fast-surging artists. But that’s always been part of the business.

Speaking of specialization, Chartmetric also noted that its Talent Search Tool goes beyond record labels and publishers. For example, artist managers can leverage the tool to track their clients’ progress and refine their strategies. Advertisers and marketers can gain insights into audience demographics for targeted campaigns. Even universities and business schools use Chartmetric to train the next generation of music industry professionals.

But great results will probably take some training, particularly for those wanting to find long-term artists who can thrive in their businesses. As for the evolving expertise required to interpret the data, this is about as far from the days of A&R guys hitting clubs and listening to demo tapes as possible.

It’s also a step beyond the madness of chasing TikTok virality. “It’s all about the nuances of interpreting various metrics on the platform,” says Randazzo. “Contextual understanding of these metrics is critical.”

Topping the music industry’s shuffles this week is Ole Obermann jumping ship from TikTok to Apple Music. Is this merely the rumble before the earthquake?

The timing of Obermann’s move is eyebrow-raising, to say the least – and raises more questions on whether TikTok will survive after the “ban” shifts to the next stage in the United States.

This is all happening as monster billion-dollar offers are being floated for the short-form juggernaut — at last count, we tallied ten possible bids once Elon confirmed his disinterest. In terms of the actual price tag, the highest whisper figure is close to $50 billion, though a bidding war could push the nose-bleeding higher.

Even MrBeast wants a piece of the action — but with so many high-dollar offers and interested billionaires, not to mention Trump snowplowing the lane to facilitate a deal, the obvious question lingers: Why hasn’t this thing sold, shifted into a joint venture, or otherwise transacted yet?

One obvious possibility is that ByteDance simply doesn’t want to sell, and they’re not playing this game. Go figure—not everyone likes taking orders from the United States and Trump, though a hard ‘no’ could torpedo the whole thing.

Which brings us back to Obermann, who might be jumping ship right before the hull hits the iceberg.

But — Apple Music? Some observers have been quick to point out that Obermann cuts a hostile profile towards creators and music IP owners — yet he’s now shifting to the very pro-creator Apple Music.

Maybe that image is unfair, though based on our conversations and canvassing, there’s plenty of lingering bad blood following Obermann’s TikTok tenure. During his five-plus years at the ByteDance wunderapp, Obermann oversaw two extremely high-profile royalty showdowns involving Universal Music Group and indie consortium Merlin. And those are just the hard-nosed highlights.

In the case of UMG, TikTok’s insultingly low royalty rates bubbled to the surface during the label’s pullout, with the hard-negotiating Obermann and team ByteDance refusing to budge until they were forced to.

In the case of indie labels, Obermann & Co. pushed out Merlin entirely while forcing take-it-or-leave-it deals on divided-and-conquered labels. Obermann somehow blamed the media for the resulting bad rap, but will indie labels’ resulting bad blood complicate future discussions at Apple, particularly if Obermann occupies a business development role?

Some are also pointing to a potentially big issue with UMG and Apple’s new recruit, as well as other content owners large and small — but let’s see how things shake out. Will Apple’s latest hire put a dent in its creator- and IP-friendly cred?

Shifting to the product front, what does this mean for Apple Music?

“Please don’t make Apple Music into TikTok,” you can hear every Apple Music subscriber plead, particularly those proudly outside the Z or alpha age ranges. Though perhaps a more sophisticated product strategy than just ‘TikTok-ification‘ is afoot.

Meanwhile, DMN Pro subscribers know that Apple Music is hot on the heels of Spotify when it comes to streaming subscriber dominance, especially with Spotify losing some serious momentum in the US in 2024. We’ll keep you posted on the emerging horse race — though Apple Music is now swinging for the fences after a massive Super Bowl Halftime sponsorship that clocked record viewership.

Case in point: Apple touted an aggressive $2.99-a-month deal for 6 months during that same record-setting Super Bowl LIX. Maybe 2025 is Apple Music’s year — though we’ll make some popcorn as this DSP battle-of-the-ages unfolds.

Photo Credit: SoundCloud

Which music streaming platform is delivering the most reliable data on play counts? In a surprising turn of events, SoundCloud has emerged as the leader in Legitary’s latest DSP transparency and accuracy rankings, surpassing industry giants Spotify and Apple Music.

Based on Legitary’s aggregated ‘Anomaly Scores’ for music streaming platforms over the entire 2023 period, the latest ranking evaluates the accuracy and transparency of reporting practices among digital service providers (DSPs). Platforms that wildly misreport stream counts have high Anomaly Scores and lower rankings, while more accurate platforms carry lower scores and higher rankings.

Legitary, an AI-powered auditing company based in Vienna, Austria, has recently emerged as a serious player in the streaming music monitoring and oversight space. The company’s analyses are now proving critical to major content owners who need to ensure accurate reporting and payments from DSPs. But the partnerships don’t end there: just recently, Legitary joined forces with DMN to further broaden their mission to dramatically improve accuracy and transparency on streaming platforms.

To date, Legitary has scanned and monitored billions of streams across dozens of DSPs worldwide, analyzing anomalies and aberrations for content owners. The result: lots of streams are now being assessed as over-counted or under-counted and require further investigation or corrections.

Just last year, Spotify trumped Legitary’s transparency list, though stream-count accuracy and reporting have become a separate competitive arena. Enter SoundCloud, which lags far behind Spotify and Apple Music in terms of subscribers and revenues but currently boasts the most accurate stream counting in the business.

Rounding out the bottom is TikTok, a chronic underachiever. But Legitary noted that TikTok is a highly viral platform, which introduces unique challenges to tracking large—and often short-lived—spikes in song plays.

Here’s Legitary’s latest ranking of the top 10 DSPs worldwide based on overall transparency and reporting accuracy.

Outside the top three, other platforms experienced mixed results.

Deezer and Apple Music showed significant improvements in their reporting accuracy. However, YouTube’s ranking declined, and TikTok remained among the lowest performers. This indicates ongoing inconsistencies in reporting practices across the industry, though unfortunately, TikTok has been a consistently low performer in Legitary’s rankings.

Legitary’s CEO, Nermina Mumic, has emerged as an ardent champion of both transparent and reliable reporting. “This year’s ranking reaffirms that innovation and a commitment to quality can disrupt even the most established players,” Mumic shared. “Transparent and reliable reporting is the cornerstone of a sustainable future for the music industry.”

Let’s dig deeper into the Legitary data, shall we?

To understand the rankings, it’s essential to delve into Legitary’s methodology. The company’s Anomaly Score focuses on measuring the magnitude of significant under- or over-performances for each DSP relative to its total stream counts. These issues occur when reported streaming numbers are significantly lower or higher than what would be expected based on historical data and other available information, such as streaming behavior on other platforms or in different countries.

While the exact factors that separated the top three DSPs remain unclear due to the close competition, some key takeaways emerge. The consistent presence of ‘bad’ actors at the bottom and better performers at the top of the rankings suggests that reporting quality and monitoring varies significantly among DSPs.

Additionally, the rankings demonstrate that smaller DSPs can match or even exceed the reporting accuracy of larger platforms. Regardless, Mumic expressed the hope that every DSP boat will continue to elevate their games and deliver more accurate reporting and payouts to rights owners in the future.

“Reports like our latest DSP ranking underscore the critical need for transparent analyses of streaming data to ensure accountability and fair compensation in the music industry,” Mumic said. “In the end, we are all part of the same ecosystem, and only through collective efforts can we continue to elevate the integrity of our industry.”

Taylor Swift and Ice Spice (left) laugh off a chorus of boos at the Louisiana Superdome during Super Bowl LIX (photo: Digital Music News)

It was a rough night for Taylor Swift and the Kansas City Chiefs at the Caesars Superdome in New Orleans for Super Bowl LIX. Now, Trump is rubbing it in.

In the wake of a very lopsided Super Bowl LIX victory for the Philadelphia Eagles, Donald Trump relished in the moment to pounce on a political enemy: Taylor Swift.

Leading up to the presidential election in November, Swift offered a ringing endorsement of Kamala Harris, pulling potentially millions of Swifties to the Democratic side. Apparently, that’s an endorsement Trump hasn’t forgotten.

“The only one that had a tougher night than the Kansas City Chiefs was Taylor Swift,” Trump relished on his Truth Social platform. “She got BOOED out of the Stadium. MAGA is very unforgiving!”

Adding salt to the wound, Swift was also buffeted by a hail of boos during the game itself.

While Taylor Swift camera pans have become notorious during Chiefs NFL games, Swift received almost no high-profile shots as the Philadelphia Eagles dominated the action.

Separately, Trump himself received a rousing ovation during the game. Trump, who incidentally picked the Chiefs to prevail, is the first standing president to attend a Super Bowl match-up.

For Swift and her beau, Chiefs tight end Travis Kelce, the on-field drubbing potentially disrupted some planned theatrics. That included rumors of a possible on-field marriage proposal following a historic Super Bowl ‘three-peat,’ though history wasn’t so kind.

Others poking at Swift wondered where the singer was after the game — and why there were so few shots of the singer during the game itself.

In previous Super Bowl games, when the Chiefs triumphed, Taylor Swift could be seen cheering ad nauseam. After Chiefs victories, Swift typically grabbed the spotlight with Kelce as the champagne and confetti flowed. This time, however, the singer was nowhere in sight as a downcast Kelce marched off the field in defeat.

Beyond the game’s theatrics—and the victory lap for Swift haters—the incident raises some questions about whether superstar musicians are wading too far into political waters.

Taylor has undoubtedly made calculated decisions on that front, though the downsides of picking a side—whether an NFL team or political candidate—were on full display at the Super Bowl last night.

Photo Credit: Saydung89

The music industry faces a bevy of challenges in 2025 – as we’ll cover exhaustively in the pages of Digital Music News – but ensuring accurate and timely payments to rights owners shouldn’t be one of them.  In partnership with Tipalti, we’ve created a guide to address this issue: introducing our playbook on How to Pay People In the Music Industry.

The global music industry is now projected to exceed $100 billion in annual revenue, though payment structures and splits are becoming a lot more complicated. You can’t wing it anymore: the complexity of accounts payable in the music industry necessitates robust financial platforms and partnerships to guarantee prompt and precise payments.

To address this critical music industry need, Digital Music News and Tipalti have collaborated to provide a comprehensive playbook for streamlining payments in the music industry.  This guide offers solutions for payment challenges faced by music businesses of all sizes, from startups to large enterprises. We hope it offers some critical tips to companies in any industry sub-category, as well as entrepreneurs, investors, and music platforms of all varieties.

The playbook is available here – and it’s a great guide for plotting out your entire accounts payable stack or simply upgrading your existing one.

This was pretty fun to build, and also offered some optimistic takeaways.

The good news? We quickly realized that there are a number of companies who are already killing it in this sphere, pumping out millions of payments often within 30 days of a usage, license, or other triggering event. The reason is that music accounts payable (or AP) is now a manageable art, and no longer a hindrance to a company’s success in this space.

The available tools and infrastructure are advanced and can be implemented swiftly and efficiently. That was our biggest and most hopeful lesson learned while creating this playbook.

Tipalti also observed that the music industry is rapidly establishing competitive benchmarks for payments. Indeed, AP industry standards are quickly becoming established.

These benchmarks include capturing, accounting for, and paying rights owners for every play on any platform, in any territory, within 30 days.  Payment infrastructure must also accommodate various payment methods and automatically handle tax obligations across different regions (whether states, provinces, or countries). 

Furthermore, seamless integration with existing cloud ERP software is crucial for managing large volumes of payees and clients without excessive manual labor.

Something else Tipalti taught us during this process: you should always be able to definitively answer the question, “Who are we paying, exactly?”

A key step is to figure out exactly who you need to pay, where and when you need to pay them — and of course, how much they should receive. Then you can evaluate your current accounting and payment infrastructure against industry standards.

Anyway: the playbook kicks off with a number of checklists to assess your AP stack, with solutions on how to fill the gaps. 

We hope you’ll check out the playbook – and hope it helps!

The iconic Grammy icon (photo: The Recording Academy)

The 67th annual Grammy Awards are now complete — here’s a quick rundown of the biggest winners, loser, snubs, and everything in-between.

The 67th Annual Grammy Awards wrapped on Sunday evening (February 2nd) at the Crypto.com Arena in Los Angeles. As expected, the Grammys carried a bit of a different vibe given the devastations wrought by the recent wildfires in LA, which disproportionately impacted the music industry.

Accordingly, the event had a special focus on raising funds for wildfire relief and honoring first responders. In the immediate wake of the fires, there was some conjecture that the event would be canceled, and most of the pre- and post-Grammy parties were nixed — though the big show went on as scheduled. Indeed, a ‘show must go on’ vibe was also pervasive and part of a tried-and-true, centuries-long mantra for the performing arts.

Additionally, a large percentage of scheduled attendees opted against traveling to Los Angeles given the disruptions and devastation, though a few shindigs were still held.

The awards show was hosted by Trevor Noah for the fifth consecutive year.

(Also: Kanye West and Bianca Censori’s red carpet ‘reveal’ is already overshadowing the main event — here’s a very NSFW look if you’re interested.)

Heading into ‘music’s biggest night,’ Beyoncé led the pack with nominations and quickly started grabbing some major accolades (see below).

Also among the winners are The Beatles for their AI-generated ‘Now and Then,’ which won for Best Rock Performance. But the track didn’t win in the high-profile Record of the Year category (and strange fun fact: The Beatles have never won Record of the Year — not once in the history of the Grammys).

And for those looking for the night’s biggest snubs…

Both Billie Eilish and Taylor Swift easily top the list here. As Beyoncé, Chappell Roan, and Kendrick Lamar started scooping up prizes, fans of Eilish, Swift, and others called out the #Scammys for overlooking both stars. Amazingly, neither Eilish nor Swift received any awards during the ceremony.

Here’s a list of the biggest winners.

First, the big ones.

• • Album of the Year: Cowboy Carter – Beyoncé
  • Record of the Year: “Not Like Us” – Kendrick Lamar
  • Song of the Year: “Not Like Us” – Kendrick Lamar
  • Best New Artist: Chappell Roan

Pop Field

• • Best Pop Solo Performance: “Espresso” — Sabrina Carpenter
  • Best Pop Duo/Group Performance: “Die With A Smile” — Lady Gaga & Bruno Mars
  • Best Pop Vocal Album: Short n’ Sweet — Sabrina Carpenter
  • Best Dance Pop Recording: “Von Dutch” by Charli XCX

Dance/Electronic Field

• • Best Dance/Electronic Recording: “Neverender” — Justice & Tame Impala
  • Best Dance/Electronic Album: BRAT — Charli XCX

Rock Field

• • Best Rock Performance: “Now and Then” by The Beatles
  • Best Metal Performance: “Mea Culpa (Ah! Ça ira!)” — Gojira, Marina Viotti & Victor Le Masne
  • Best Rock Song: “Broken Man” — Annie Clark, songwriter (St. Vincent)
  • Best Rock Album: Hackney Diamonds — The Rolling Stones

Alternative Field

• • Best Alternative Music Performance: “Flea” — St. Vincent
  • Best Alternative Music Album: All Born Screaming — St. Vincent

R&B Field

• • Best R&B Performance: “Made For Me (Live On BET)” — Muni Long
  • Best Traditional R&B Performance: “That’s You” — Lucky Daye
  • Best R&B Song: “Saturn” — Rob Bisel, Cian Ducrot, Carter Lang, Solána Rowe, Jared Solomon & Scott Zhang, songwriters (SZA) –
  • Best Progressive R&B Album: So Glad to Know You — Avery*Sunshine AND Why Lawd? — NxWorries (Anderson .Paak & Knxwledge)
  • Best R&B Album: 11:11 (Deluxe) — Chris Brown

Rap Field

• • Best Rap Performance: “Not Like Us” by Kendrick Lamar
  • Best Rap Album: “Alligator Bites Never Heal” – Doechii

Country Field

• • Best Country Solo Performance: “It Takes A Woman” — Chris Stapleton
  • Best Country Album: “Cowboy Carter” – Beyoncé
  • Best Country Duo/Group Performance: “II Wanted” by Beyoncé and Miley Cyrus
  • Best Country Song: “The Architect” — Shane McAnally, Kacey Musgraves & Josh Osborne, songwriters (Kacey Musgraves)

Other Notable Categories

• • Best Music Video: “Not Like Us” by Kendrick Lamar
  • Best Music Film: “American Symphony” by Jon Batiste
  • Producer of the Year, Non-Classical: Daniel Nigro
  • Songwriter of the Year, Non-Classical: Amy Allen

For a complete list of every category, complete with nominations — and there are many of them — check out the Recording Academy site here.

Photo Credit: Ri Ya

Here’s a music industry newsflash: everybody hates Spotify’s cut-rate ‘bundled’ royalty payments — except for Spotify. Six-year-olds enjoy cauliflower more, but now that Spotify just whipped the Mechanical Licensing Collective (MLC) in court, is there anything music publishers can do about it?

This is not just a topic of spirited industry conjecture, but a matter that could potentially reshape the music industry in 2025. But where do music publishers and songwriters go next?

For starters, NMPA chief David Israelite, music publishers, and The MLC may appeal this decision, even if that means losing again. This wasn’t a close case, but it’s the principle of it. However, according to sources eyeing this chess match, the court system is only one battleground, with legislation another vital arena for publishers.

After all, the legislative branch (not to mention the President) approved the landmark Music Modernization Act and created the MLC and its many rules — which included vast indemnifications and protections against licensing litigation for Spotify and other DSPs. You’re welcome Spotify, though rules can be changed and updated, especially when enough special interests want to make it happen.

There’s also the matter of David Israelite, who is almost certainly not walking away from this fight. Speaking of legislation: Israelite was just recently lobbying for across-the-board direct publishing deals last year. For now, however, Spotify gets to send out its discounted mechanical royalty checks after ramping up its US-based bundled subscriptions past 99%, as first tracked by DMN Pro.

But what happens when music publishers are finally sick of cashing those checks?

Previously, all indications were that major label bosses wouldn’t be intervening in publishing-specific disputes, at least in a meaningful way. But those assumptions were incorrect. Enter Universal Music Publishing Group (UMPG), which corralled its bigger brother parent to force Spotify to pay more and modify its cut-rate payouts.

Now, the hundreds-million-dollar question is what happens next — and more importantly, who rattles the cage demanding a direct licensing relationship.

Under US Copyright Law, any direct deal supersedes a statutory one. So who’s next to demand a direct deal to shutter the bundling loophole?

We don’t have the specific deal terms of the UMPG direct deal. But it’s certainly not worse than what Spotify was paying before. Big deals with UMG tend to set templates for smaller deals, which means that Spotify might end up paying more money to more music publishers than they did pre-bundling via direct deals and demands.

Net-net on a royalty-revenue basis, it’s hard to predict whether Spotify actually wins or loses here. But back at Spotify HQ, life is good: the stock is soaring, and Spotify’s brass are filthy rich. So who cares if a few publishers get stepped on?

This is reminiscent of TikTok’s scorched-earth licensing approach, though Spotify’s hearts-and-minds problem could spell trouble down the line. Already, we’re seeing more fallout, with songwriters boycotting Spotify’s songwriter-themed Grammy party (which itself got canceled).

(As a quick aside, there’s a reason why few in the music industry are advocating for TikTok as it struggles to remain in the US.)

It’s also important to note that Apple Music could easily ‘pull a Spotify’ and flip their subscriptions into bundles overnight. But they aren’t doing that according to DMN Pro’s research on bundling. But will major label and publisher bosses reward Cupertino for ‘doing the right thing’ and paying more to rights owners — even if they technically don’t have to? Others are also playing far more cooperatively than Spotify, and deserve to be rewarded with more exclusives, access, and other perks that come with friendlier partnerships.

Perhaps Spotify foolishly wants to have it both ways. But it’s hard to be the villain and the savior at the same time.

Spotify wants you to believe that they saved the music industry, and they’re pumping billions in found money into the industry ecosystem (we’d know, being on the receiving end of their PR machine). That assessment isn’t entirely incorrect, though for a company trying to shake its image of screwing artists and songwriters, bundling loopholes wasn’t the smartest idea.

Even today, prominent artists like Björk are landing zingers at Spotify over their measly royalties and artist-unfriendly practices. And she’s not wrong, either. Fresh data shows that Apple Music is the better industry partner, with better payouts to rights owners and creators. Whether it’s fair or not, Spotify remains the villain to many, and the shift to bundling isn’t helping.

More as this develops.

Got a tip? Confidentially email me at paul@digitalmusicnews.com; drop a text to (310) 804-0560; or send a Signal to digitalmusicnews.07. 

Since early 2024, Spotify has been ramming nearly every subscriber into a cut-rate ‘bundled’ package involving music and audiobooks — and boasting about the huge royalty savings while fighting publishers tooth-and-nail. Now, there’s serious pushback coming from Universal Music Group itself — and a brand-new, direct licensing deal with Universal Music Publishing Group (UMPG) to deal with the bundling funny business.

Earlier this month, DMN Pro revealed that Spotify had successfully migrated more than 99 percent of its subscribers into bundled packages in the all-important US market, part of a dramatic shift that started in March 2024. Now, the pushback is expanding beyond the music publishing sector, forcing Spotify to potentially reconsider those royalty downgrades.

According to fresh deal terms confirmed to Digital Music News over the weekend, Spotify and Universal Music Group (UMG) have finalized a multi-year agreement encompassing recorded music and music publishing with important direct-licensing components.

It’s a first-of-its-kind deal on the publishing side and a signal of a potentially colossal royalty correction ahead.

Spotify re-ups with UMG every few years, but this time, it’s different — very, very different.

A significant aspect of the refreshed agreement is a direct licensing arrangement between Spotify and Universal Music Publishing Group (UMPG) in the United States and other regions. This direct deal is the first of its kind since the Music Modernization Act of 2018, and signals a potentially profound shift in the dynamics between streaming platforms and music publishers — and their label group parents.

As of this weekend, it’s unclear exactly how Spotify’s deal with UMPG changes the publishing payout structure, particularly for bundled royalties. However, at least two sources noted that UMPG is getting substantially better payouts than the statutory mechanical royalties being metered out to other publishers, particularly regarding bundled plans. That involves a substantial rollback or modification of bundling-based discounts, though it’s unclear whether Spotify is doing away with them entirely.

Beyond the UMPG deal, Spotify is understood to be keeping its payments for other music publishers the same.

But that could change very rapidly as mega-label groups like Warner Music Group, Sony Music Entertainment, and even Merlin start making demands—potentially with the threat of content removals on the recording side. You can almost feel the rumblings coming ahead, particularly given that UMG tends to set the tone for ‘downstream’ deals involving smaller major labels and IP owners.

But why would a direct publishing deal be needed if the Music Modernization Act outlined terms for all music streaming platforms (DSPs) and music publishers?

One reason is that the MMA pact is simply breaking down, with music publishers effectively despising Spotify for exploiting statutory loopholes to pay them less. That includes UMPG, one of the largest music publishers in the world, which has become increasingly vocal about its mistreatment by Spotify. After a year of fruitless pushback, perhaps it was time for a sit-down with UMG’s bosses.

Leading up to this point, major music publishers—represented by the NMPA and its battling CEO David Israelite—spent a good chunk of 2024 pushing back against Spotify’s bundling shenanigans, which involved significantly lowered royalty payments to publishers and songwriters. The Mechanical Licensing Collective (MLC) even sued Spotify over the bundling shifts, though Spotify has been litigating back.

At one point, David Israelite even started pushing for a direct licensing structure between music publishers and streaming platforms to complement current statutory rates. Israelite certainly has the pull on Capitol Hill, though it’s unclear where those direct-licensing efforts stand now.

Either way, Spotify’s message to publishers has been extremely unfriendly. Given the predefined statutory rates and agreements, publishers have little recourse outside protracted legal battles and protests that rarely make it outside of industry circles.

Total US-based Spotify subscribers, November 2024, broken down by tier (Source: DMN Pro).

All of which necessitated a change in the game plan for 2025, with a different sort of blowback now coming from Universal Music Group. But there are also other aspects to this deal.

In the agreement announcement, Universal Music Group said its Spotify agreement supports its “Streaming 2.0” vision, which seeks to reshape the economics of music streaming and ensure fairer compensation for artists and songwriters. That vision includes new product developments and offerings, including new subscription tiers, bundled content offerings, and enhanced audio and visual experiences.

And, of course, there’s the reset on bundles combining music and non-music content.

Notably, the deal also continues UMG’s focus on ‘artist-centric principles,’ which, according to UMG, ensures that artists are rewarded based on their contribution to listener engagement and that their royalties are protected from fraudulent activity.

That includes previously established rules like a 1,000-stream-per-annum threshold for triggering payments and weeding out the ‘noise’ of background sounds and AI-generated recordings.

(As a humorous aside, one indie label manager called this ‘Streaming 2X’ given that UMG is using its muscle to get a bigger cut from Spotify. Indeed, UMG has been shifting the tables to drive more revenues into their coffers and away from indie labels, producers of background tracks, and AI factories, among other camps.)

Sir Lucian Grainge, Chairman and CEO of Universal Music Group, expressed his enthusiasm for the deal, stating that it aligns perfectly with UMG’s ‘Streaming 2.0’ vision. “When we first presented our vision for the next stage in the evolution of music subscription several months ago—Streaming 2.0—this is precisely the kind of partnership development we envisioned,” Grainge relayed.

“This agreement furthers and broadens the collaboration with Spotify for both our labels and music publisher, advancing artist-centric principles to drive greater monetization for artists and songwriters, as well as enhancing product offerings for consumers.”

Got a tip? Confidentially email news@digitalmusicnews.com, text +1 (310) 804-0560, or Signal to digitalmusicnews.07.

Photo Credit: Spotify

Maybe it’s just an accounting slip — or maybe it’s a serious dip. But according to preliminary Spotify royalty stats shared with Digital Music News by multiple US-based publishers, we may have a problem here.

Spotify’s mechanical publishing royalties took a sudden-and-sizable dip this month for many US-based publishers and songwriters, according to preliminary stats shared with Digital Music News over the past few days. That includes multiple reports of 30-40% drops compared to previous months — all specifically tied to US-based mechanical publishing royalties.

By law, Spotify remits mechanical licensing royalties and processes them through the Mechanical Licensing Collective (MLC). However, the same organization manages broader publishing calculations involving both mechanical and performance licenses, which are interrelated in the streaming realm. For currently unclear reasons, performance royalties jumped dramatically in January for these same publishers, shifting the ratio between the two licenses.

This issue appears to be isolated to Spotify and not happening at other DSPs — but we’ll keep you posted if similar issues surface on other platforms.

It’s also important to stress that it remains unclear what exactly is causing the drop and shifts — and this might be attributable to an error or methodology change. At press time, DMN had connected with Spotify via email on the matter, but the streaming platform has yet to issue a statement (update: Spotify has now issued a statement on the drops, see below).

Diving further into the weeds: the payment drops are specifically tied to plays in October 2024, with January 2025 being the payout month.

One publisher told DMN that the drops weren’t tied to a specific artist, genre, or region but were ‘across the board.’ Furthermore, none knew of any special adjustments or changes in their royalty calculations, and none tied the declines to usage drops. Q4 is often a time of streaming increases for many publishers, depending on their catalogs.

As for the massive shift towards performance licenses, nobody had any answers.

The declines applied to specific streams and aggregate amounts, with both declining a ‘very large and substantial amount’ compared to previous, late-2024 payments.

Update (January 24th): Spotify has now shared a statement on the matter, acknowledging the drop but attributing it to an increase in September and other possible factors, while noting that these figures haven’t been fully finalized.

“Monthly mechanical payments are estimates and subject to fluctuations based on payments and accruals to PROs, among other things. While we saw an increase in September, the October payouts returned to the level of previous months. The final payments are subject to accounting with the Annual Report Of Usage.”

The development closely follows some eyebrow-raising stats—published exclusively on DMN Pro—showing Spotify’s extreme shift towards bundled subscription options in 2024.

Amazingly, music-only, non-bundled subscriptions now account for fewer than 1% of all US-based subscriptions. That’s trivia for most, but not for publishers and songwriters, who receive substantially lowered mechanical royalties on bundled plans.

Back to the present decline: sorry if we’ve ruined the weekends of any accounting teams — but hopefully this one gets sorted out.

More as this develops.

President Trump signs an Executive Order offering a stay on TikTok’s ban for 75 days on January 20th, 2025 (Photo: Digital Music News)

Trump wants to keep TikTok alive in the United States — and just authorized a 75-day lifeline to allow a deal to happen. Many in the music industry, however, are struggling to share his concerns.

As TikTok battles for its life in the US — and survives a near-death experience — the music industry’s silence has been deafening.

One problem seems to be that despite TikTok’s searing success — or perhaps because of it — this is a company with a special talent for pissing off vast swaths of the music industry. In a relatively short period, TikTok has ticked off an impressive number of label and publisher executives, all of whom have to play ball with TikTok but would prefer not to.

The music industry struggles with solidarity, but when it comes to TikTok, there seems to be more agreement than usual.  Of course, nobody says it out loud, but perhaps it would be nice to witness TikTok going down in flames.

Chatting with Digital Music News over the weekend, one major label executive felt compelled to offer TikTok executives advice — regarding a door that might hit them in the posterior region as they exit America. This doesn’t seem to be an isolated sentiment. After all, other platforms can fill the void, and there’s more to life than chasing the latest TikTok blowup (which itself has become an increasingly inexact science).

Perhaps you can guess the major label, based on a protracted licensing stand-off that left some lingering bad blood. But the anger is more palpable in the indie camp, thanks to some less-than-friendly moves by TikTok that effectively marginalized indie label collective bargaining power.

After neutering Merlin and forcing indie to sign their non-negotiable contracts (and like it), it’s not puzzling why indie labels aren’t rushing to the short-form video platform’s defense.

TikTok’s stance seems decidedly different, with ‘leverage’ the operative word. After all, TikTok is one of the most powerful platforms in music and a kingmaker for songs old and new. Even Taylor Swift crossed the UMG picket line — and the platform has swayed none other than Donald J. Trump.

That’s some serious pull. So isn’t this just the leverage game that’s played at the negotiating table – and business as usual?

Perhaps. But according to the industry people we’ve conversed with, that ‘just business’ mentality doesn’t quite erase the feeling of, well, getting stepped on. Which might explain why there’s a deafening level of silence from nearly every quarter of the music industry as TikTok struggles for its US-based life.

But the music industry isn’t the only one abandoning TikTok.

Despite the 75-day reprieve, neither the Apple App Store nor the Google Play Store have restored TikTok—at least not yet. TikTok is one of the most heavily demanded apps, so why keep blocking it?

One answer is that both mega-companies are likely playing it safe after conducting a routine risk analysis. After all, why reinstate TikTok when members of Congress like Tom Cotton are threatening massive fines? Maybe it’s better to keep things off the deck until things calm down, especially in a tech-hostile legislative climate.

Sprinkle a dose of indifference into the mix, and neither Apple nor Google are fighting for TikTok. And that’s too bad for TikTok, given that disappearing from the App Store or Play Store is a big blow.

Right now, TikTok’s app is perfectly usable, but being removed from both platforms means updates are no longer possible. Moreover, those who delete the app or upgrade devices will be unable to jump back in.

There’s also the ‘app rot’ problem, and TikTok’s ‘rot clock’ is now ticking. The longer this goes on, the buggier TikTok becomes, until the app is unusable.

On the other hand, other powerful platforms have enormous amounts to gain, including Zuck’s Instagram, which is now reportedly paying top TikTok producers to migrate to his safer space while priming its own short-form video alternatives. Others, including X, are also hoping to fill a giant void.

And the biggest question: how will TikTok get ‘saved,’ exactly?

So far, Trump’s top-level thoughts are vague. As Trump has suggested, would the United States really own 50% of a TikTok joint venture? That’s not your typical business arrangement nor a preferable outcome for ByteDance (or the Chinese government).

And if ByteDance couldn’t forge a deal with a private company ahead of the deadline, would they be willing to close a deal with America, Inc. within the next 75 days?

It all feels like a stretch — though artists are best advised to shift their TikTok eggs into other baskets as this shakes out.

More as this develops.

TikTok remains unavailable on the Apple App Store as of Monday, January 20th at 8: 30 am PT (Photo: Digital Music News)

Where is TikTok down in the US? Here’s the latest availability report.

Apple App Store: ⊗ Not Available (see Apple statement here)

Google Play Store: ⊗ Not Available

Existing, Already-Downloaded Apps: √ Available (Restored)

Web Version: √ Available (Restored) 

Akamai: √ Available (Restored)

Oracle: √ Available (Restored)

TikTok, along with ByteDance-owned apps, was officially banned in the United States as of Sunday, January 19th, 2025. On January 20th, President Trump signed an Executive Order allowing a 75-day stay on the ban while ByteDance and the United States negotiated a joint ownership arrangement.

The ban was instituted across multiple platforms late Saturday (January 18th) to comply with the Protecting Americans from Foreign Adversary Controlled Applications Act, and TikTok shuttered access to its app on Saturday evening. As of Sunday (January 20th), TikTok and various internet backbone providers began reinstating the app following assurances by Donald Trump, while both the Apple App Store and Google Play Store have pulled the app entirely and have not reinstated the app. Here’s the latest.

Latest developments

January 20th, 5:30 pm PT

Incoming President Trump signs an Executive Order delaying the ban by 75 days. Trump indicated interest in negotiating a joint ownership arrangement with ByteDance, with the United States a 50/50 joint venture partner.

January 19th, 1:00 pm PT:

Sen. Tom Cotton, R-Ark., chair of the Senate Select Committee on Intelligence, issues a warning on X that “any company that hosts, distributes, services or otherwise facilitates communist-controlled TikTok could face hundreds of billions of dollars of ruinous liability.”

The post was a direct response to TikTok’s announcement that it was restoring service.

January 19th, ~10:00 am PT:

Major CDNs like Akamai and Oracle have restored availability of the app, based on assurances from incoming President Trump that an Executive Order would extend the ban deadline and lift all fines against carriers of the app. Most users are reporting that the app is coming back online for them, with a ‘Welcome Back!’ message from TikTok.

January 19th, 6:30 am PT:

TikTok states via X that its service is being restored, while thanking Trump.

“In agreement with our service providers, TikTok is in the process of restoring service. We thank President Trump for providing the necessary clarity and assurance to our service providers that they will face no penalties providing TikTok to over 170 million Americans and allowing over 7 million small businesses to thrive.”

January 19th, 4:00 am PT:

On Truth Social, Trump urged a pause on the ban and outlined a deal in which the United States would own 50% in a TikTok joint venture.

“I would like the United States to have a 50% ownership position in a joint venture. By doing this, we save TikTok, keep it in good hands and allow it to say up,” the post outlined.

At this point, it’s unclear if ByteDance or any other stakeholders have agreed to this top-level ownership structure.

January 18th, 11:15 pm PT:

After the Supreme Court denied a late-stage appeal, the TikTok app was removed on the evening of January 18th from most platforms, including Apple’s App Store and Google Play Store. Existing users were also told the app was blocked and unavailable.

The removals from the App Store and Play Store prevent future downloads and updates; blocks on the existing app were done by TikTok itself.

Anyone who removed the app ahead of the January 19th ban cannot currently re-download the app.

]]> https://www.digitalmusicnews.com/2025/01/08/los-angeles-fires-music-industry-cancellations-open/ Thu, 09 Jan 2025 06:39:32 +0000 https://www.digitalmusicnews.com/?p=311867

Fires continued to rage in Pacific Palisades and surrounding areas during the evening of January 8th, 2024 (Photo: Digital Music News)

Life in Los Angeles quickly became a nightmare this week, with evacuations, high-speed winds and raging fires destroying homes and putting millions on edge. Here’s a look at how this is impacting this music industry hub — and ‘the show must go on’ mentality that is emerging.

If you work in the music, TV or film industries and reside in the entertainment hub city of Los Angeles, you might be living through hell. At last count, more than 2,000 structures have been destroyed, with millions on edge as unpredictable fires continue to spread with lightning speed throughout the region.

We’ve checked on a number of execs and musicians living in Santa Monica, Pacific Palisades, Malibu, and surrounding regions, and the reports aren’t good. Many have evacuated while grinding through their weeks — while hoping they have a house when they return.

Throughout the area, people are checking in with ‘you okay?’ texts while offering a spare bedroom or helping hand. Others have driven or flown far from the embattled blaze zones, while putting their lives on hold.

Yet amazingly, it’s business as usual — or something close to it —  for many in this city.

A number of labels, publishing houses, startups, recording studios, agencies, PROs, and others dotted throughout the city are still open for business, though you might find email responses a bit sluggish and offices a bit empty. And the city is still humming along: the 405 is creeping a bit more slowly (if that was even possible), planes are still flying in-and-out of LAX, and most businesses outside the impacted areas are still open.

Then again, some are understandably hunkering down and staying indoors. Indeed, we haven’t had this work-from-home spirit since the COVID days.

A number of industry-specific events have been nixed as the fires rage.

For starters, a few film premieres are understandably canceled. That includes the premiere of the Robbie Williams’ biopic, Better Man, as well as the premiere of the film Unstoppable, starring Jennifer Lopez and produced by Ben Affleck.

Meanwhile, the blazes aren’t slowing down: the Palisades Fire has already consumed more than 5,000 acres, while a new fire erupted in the Hollywood Hills on Wednesday evening (January 8th).  Elsewhere, the Eaton Fire in the Pasadena area has spread across nearly 2,500 acres, and Hurst Fire in Sylmar has torched 500 acres. There’s even a small blaze erupting in Coachella.

Stay tuned for more updates.

Ask Hearby in action (Photo Credit: Area4Labs)

How much bigger can the global live concert space grow? Boston-based Hearby is betting that AI-generated concert searches can crack the discovery riddle and boost attendance across the board. Here’s a look at the just-launched ‘Ask Hearby.’

Ready for a break from AI infringement problems, endless legal battles, and dystopian nightmares? While most of the music industry is focused on the very serious threats posed by AI, a number of companies are playing in less problematic sandboxes and making serious strides.

That includes Hearby, an AI-focused music braintrust owned by Area4Labs in Boston. The company is focused on concert-related applications driven by AI, with an eye towards resolving decades-old issues. Just recently, Hearby joined forces with DMN to accelerate its mission.

As Chat GPT doesn’t provide information on live events, the group has a mission to solve the giant discovery gap that exists in live music, particularly for music fans who are surrounded by great music but often lack awareness of what’s out there.

“Giant shows for artists like Beyoncé and Taylor Swift are only one-third of the market,” Area4Labs cofounder Ian Condry relayed. “The rest of live music events in smaller venues is scattered and difficult to find.”

Suddenly, AI is doing something great – helping people find gigs and discovering new artists. It’s a refreshing change of pace.

If you’ve stumbled on a great jazz set in your neighborhood – or worse, didn’t realize an artist you love played last night – then you’re one of millions of music fans Hearby wants to help.

Enter ‘Ask Hearby,’ a first-to-market AI chatbot for live event discovery.

Ask Hearby taps into Large Language Model (LLM) AI technology and decades of anthropology expertise to properly match intent with great gigs. On the LLM front, Hearby has been tinkering with this tech for more than five years, according to details shared with DMN.

The end goal, according to the company, is to simulate a knowledgeable friend offering curation of local gigs.

Actually, the goal is to supercede that benchmark, given that a knowledgeable music fan is likely to offer recommendations based on their specific preferences and favorite venues, not yours.

The result is – voila! – an AI chatbot specifically designed for discovering live events. Based on specific prompts, Ask Hearby shakes the tree on what’s out there, effectively shifting discovery beyond personal recommendations, chance encounters, and limited online apps.

“This is the first of its kind in the live event discovery space,” said Area4Labs CEO Gary Halliwell.  “Our coverage of live music shows across UK cities and towns is second to none, and we look forward to extending discovery of North American shows in 2025.”

That’s completely different from more closed-end AI chatbot systems like Satisfi, which focus on providing support details after concert tickets have been purchased. Shifting the timeframe to the moments before a ticket is purchased, and the challenge becomes exponentially more challenging.

We tested Ask Hearby out by asking for live events in our area.

The results were interesting: some local jazz spots were highlighted alongside some lesser-known alternatives. That includes restaurants that added trios or pianists to accentuate the ambience, which can be tricky to find.

There were also a few misses, depending on your perspective: Azealia Banks was noted as a jazz option, perhaps based on a line in her biography referencing jazz as an influence. That type of result could lead to some disappointing results for concertgoers, though Ask Hearby will learn what’s relevant – and what isn’t – over time.

The next step in Ask Hearby’s development arc involves serious personalization.

Based on your repeated searches and results, the company envisions generating personally curated show lists that can be shared on social media. Suddenly, fans aren’t limited to a few mega-shows at $150 a pop. Instead, the options will include more local gigs, up-and-coming artists, and hole-in-the-wall jazz trios more accessible than ever.

Photo Credit: Downtown Music Holdings

Virgin Music Group, a division of Universal Music Group, has announced a definitive agreement to acquire Downtown Music Holdings for $775 million. The deal, expected to close in the second half of 2025, will bring together two leading services and technology providers for independent labels, publishers, and music IP owners, while dramatically expanding UMG’s involvement in the indie space.

The acquisition, officially disclosed this (Monday) morning, will enable Virgin Music Group to expand its global footprint and enhance its offerings for independent artists and labels. The combined company will offer a far broader suite of services, including distribution, marketing, rights management, and royalty collection.

The deal follows months of rumblings of a possible sale, with Downtown reportedly consulting with private equity firms in July.

Suddenly, Universal Music Group is a much bigger player in the burgeoning indie space. Once finalized, UMG will enjoy an expanded footprint across numerous tiers of independent distribution (for both artists and labels), not to mention an array of indie-focused monetization and rights management competencies.

Downtown, founded in 2007, has grown into a diversified music services company with divisions spanning artist and label services, distribution, royalty and financial services, and music publishing. Thanks to a string of aggressive acquisitions and expansions over the years, Downtown’s portfolio now includes CD Baby, Soundrop, Curve, FUGA, Songtrust, Found.ee, Sheer Publishing Africa, and homegrown neighboring rights, studio, and artist and label services divisions.

Downtown currently manages more than 50 million music assets from virtually every country worldwide. It serves over 5,000 business clients and 4 million creators across 145 countries, according to stats shared by the company with Digital Music News.

“Justin Kalifowitz, Andrew Bergman, and Pieter Van Rijn have built Downtown Music into one of the most diversified and respected operations in the world,” said JT Myers, Co-CEO of Virgin Music Group.  “This combination enables us to expand on the Downtown legacy and offer the independent music community a dynamic and innovative global infrastructure both in terms of service offering and territorial footprint, and we look forward to working with the Downtown team to serve independent entrepreneurs, artists, and creators with an even broader portfolio of services.”

Justin Kalifowitz, Founder of Downtown Music Holdings, also expressed enthusiasm about the deal, stating, “This is a tremendous recognition of the importance and vitality of independent music, and the value that our company brings to its clients every day.”

Indeed, the deal is happening alongside a growth spurt within the independent music sector that is cramping the market share of major label artist releases. That has prompted a number of strategic changes from the major labels, with acquisitions another weapon to exert more influence in the space.

That said, Downtown Music isn’t focused on music IP ownership — at least not anymore.

Back in 2021, Downtown offloaded a catalog of roughly 145,000 songs to Concord in a deal valued north of $300 million. The decision followed Downtown’s Q4 2020 “strategic review of its business interests,” which involved shifting away from IP ownership in favor of services and other core competencies.

After the deal, Downtown used the proceeds to expand Downtown Music Services, part of a broader effort to focus “exclusively on the fast-growing music services sector to support the extraordinary growth of the independent music economy.”

It may be premature to consider the post-acquisition changes that will happen in 2025. But it’s plausible that Virgin will leave many Downtown sub-divisions intact, in particular CD Baby and FUGA. Both are well-known and established within their distribution niches, with strong brand identities among artists and labels.

Nat Pastor, Co-CEO of Virgin Music Group, emphasized the company’s commitment to supporting independent artists and labels, stating, “This is an investment into the global independent music ecosystem and a commitment to nurture current and future creators and entrepreneurs with world-class support.”

The two companies will continue to operate independently until the deal closes, pending regulatory approvals. Goldman Sachs and Skadden, Arps, Slate, Meagher & Flom advised Downtown Music on the transaction, while Kirkland & Ellis and Freshfields advised Virgin Music Group.

Photo Credit: On Air

Content from the UMG-owned production studio is available to stream now.

With the emergence of concert streaming’s high-growth potential, on-stage performance streaming platform On Air is now offering new monetization opportunities for intellectual property owners and artists. The platform aims to elevate the fan experience by offering a true cinematic experience with content available in 4K UHD with Dolby Vision and Dolby Atmos technologies.

Since 2020, On Air has hosted a serious catalog of live concerts and performances from A-list artists and shows. That includes performances from the likes of Zara Larsson, Noel Gallagher’s High Flying Birds, and Years & Years from iconic music venues spanning Royal Albert Hall, OVO Arena Wembley, BBC Studios, and more.

But that’s just the beginning: expanding upon their existing on-stage video catalog, On Air recently forged a deal with Mercury Studios for concert performance footage. Mercury Studios, a division of UMG, is a multi-faceted music content studio and treasure trove of seminal concert footage. Just recently, On Air joined forces with DMN to further propel the platform.

Mercury Studios’ sizable catalog features over 2,000 hours of standout performances by the most prominent names in music — including Peter Gabriel, Lynyrd Skynrd, Duran Duran, Black Sabbath, Journey, ZZ Top, Santana, Eric Clapton, Toto, and The Who, as well as assets from legendary production company Eagle Rock. Now, that historic and important catalog is finding another outlet via On Air to reach fans – with the ingestion and dissemination process well underway.

“On Air provides an exciting opportunity to showcase the breadth of Mercury Studios’ programming, from award-winning documentaries to concerts by iconic artists like Eric Clapton, Miles Davis, Chicago, Jeff Beck, Cypress Hill, and INXS. This partnership with On Air will further expand the reach of these remarkable performances,” said Rob Gill, SVP Global Operations, Mercury Studios.

Jakub Krampl, co-founder and CEO of On Air, sat down with DMN to reveal how On Air’s latest deal with Mercury Studios expands global exposure opportunities and monetization for all IP owners, labels, and artists on the platform. For starters, Mercury Studio’s catalog is impressive, and that will draw a bigger audience interested in higher-quality live performances.

“We’re here to support the distribution of catalogs and monetization of longform content in 4K with Dolby Vision and Atmos technology,” said Krampl. “On Air provides an end-to-end service to artists, labels and rights holders — all backed by a cutting-edge tech stack.”

On Air’s vast infrastructure expertly covers every aspect of the streaming process, solving problems typically faced by IP owners when they attempt to distribute content across mainstream channels.

A sampling of On Air’s live concerts and performances from A-list artists filmed at iconic music venues. (Photo Credit: On Air)

According to Krampl, On Air offers a ‘premium streaming service for on-stage entertainment,’ handling everything from pre-production and on-site production management to an exclusive post-production process that ensures higher-quality content for its users.

On Air’s DRM-protected streaming platform plays comfortably across desktop, mobile, and TV endpoints. Stretching things further, the company also pushes engagement by marketing content and managing assets across multiple platforms, including social media with tailored campaigns.

And when the opportunity arises, On Air also helps to negotiate branding and agency partnerships to further stretch the reach of its footage.

The platform offers prime viewing experiences to fans in over 190 countries, while taking adequate measures to prevent unlawful distribution. Among the most prominent offerings available to stream are Zara Larsson’s sold-out ‘Venus Tour’ at AFAS Live in Amsterdam, Noel Gallagher’s High-Flying Birds live at Wythenshawe Park in Manchester, Yoshiki’s ‘Requiem Classical World Tour’ recorded at the Royal Albert Hall, and a pair of sold-out All Time Low shows, captured at OVO Arena Wembley (2023) and Merriweather Post Pavilion (2024).

One of On Air’s biggest differentiators is its audio and picture quality, with streams available to watch in 4K UHD with Dolby Vision and Dolby Atmos technologies.

Krampl explains that the solution, crafted by On Air’s partnership with Dolby, “provides every user with the opportunity to experience our productions with the immersive sound of Dolby Atmos and ultra-vivid pictures of Dolby Vision for a premium entertainment experience.”

“On Air has successfully achieved a live stream in Dolby Vision, which hasn’t been done before — and that’s only one of the many advanced solutions we’re capable of providing,” Krampl continued, while pointing to the company’s All Time Low OVO Arena Wembley capture. That show was delivered in 4K UHD with HDR and Dolby Atmos immersive sound, and accessed across 56 countries simultaneously over the web, mobile and TV apps.

In fact, all On Air-produced shows are filmed in close partnership with Dolby. “We’re delighted that On Air uses Dolby Atmos and Dolby Vision to give them an edge in concert streaming,” said Jane Gillard, Head of Music Partnerships Europe for Dolby. “Artists invest so much into live shows – sound, visuals, effects, lighting. In using the best in Dolby technology, On Air are able to deliver an experience that beats standard video and stereo hands down.”

The on-stage performance streaming space has a number of big competitors, though On Air’s focus strategies of Dolby-powered streams, complementary solutions, and competitive pricing could prove to be significant differentiators.

Krampl explains that On Air’s entire service infrastructure is developed in-house, which makes it ‘independent of third-party platforms and agencies.’ This self-developed tech-stack and content delivery platform, according to Krampl, allows On Air to address problems before they arise, ‘while continuing to develop and innovate’ for their stakeholders.

The On Air HD stereo service is available to viewers at $10.99 per show, with the On Air catalog available to stream on-demand with unlimited replays.

Photo Credit: On Air

Why is now the moment for concert video to expand and reach a wider audience? Krampl points out that On Air is aware of how current economic challenges have significantly shuffled audience priorities and where they want to spend their money.

Exorbitant ticket prices and the cost of travelling to venues present barriers that threaten to separate artists from their fans.

On Air aims to democratize access to live music and provide a genuine connection between audiences and performers. Their ‘cutting-edge solutions directly offer the energy and magic of live performances to audiences’ around the world.

The On Air app, available across Apple iOS, Android, and Fire TV, is designed to make viewers feel like they’re in the center of the action. Users can tune in to On Air’s cinematic show library in 4K UHD and spatial audio from anywhere, and seamlessly switch to the big screen at any time.

UNIFI Music Founder & CEO La’Shion Robinson (Photo Credit: UNIFI Music)

Finding and retaining effective management is a significant hurdle for many emerging artists. Now, UNIFI Music is building an AI-driven intelligent platform for that.

Superstar music careers frequently start on the fringes: in a poorly-lit rehearsal space, late night on a laptop and cracked DAW, or as part of a local scene that hasn’t yet crossed over.

If an artist or group is lucky, an ardent believer is pulling the strings to get gigs, upload tracks to DSPs, monitor royalties from different licenses and platforms, and settle disputes. But professional managers with acumen, experience, and connections are usually out of reach at the beginning.

And that’s a problem.

The real artist management pros are usually overloaded with their high-demand clientele. And they’re generally inaccessible if they’re taking on emerging artists, or simply too expensive for artists in the early stages of their careers.

The music industry is laser-focused on the profound threat AI-generated music poses – which makes sense. But can AI fill a meaningful role in other areas like artist management?

That was the light bulb for execs at UNIFI Music, a company focused on building artist-focused solutions. “We’ve seen a huge need for artist management from artists in the 0-5 stages of their careers,” La’Shion Robinson, UNIFI’s founder and CEO, told Digital Music News.  “There’s simply an overload of tasks beyond the core competencies of creating music, building a cultural connection, and performing.”

‘Overload’ is a fitting descriptor.

From securing competent management to navigating the complexities of promotion and distribution, the path to success is often fraught with obstacles. And with tasks spanning social media engagement to booking gigs and navigating the complexities of streaming platforms, the workload can be immense – especially in the face of fierce competition.

With that problem in mind, UNIFI Music’s vision is to solve these pain points with an innovative AI-powered solution that could redefine artist management. That is perking the ears of investors, many of whom feel that AI-related models in the music industry are overlapping and saturated.

“Here’s something extremely useful, relevant, with tremendous potential to scale,” Robinson summarized. Just recently, UNIFI joined forces with DMN to further expand their concept.

According to Robinson, AI can play a meaningful role in streamlining artist management and empowering emerging musicians. UNIFI’s AI-powered platform, called Sasha, will act as a centralized toolbox, offering a range of features and services to support artists in their career development.

Sasha is designed to complement platforms like SoundCloud, providing artists with a comprehensive suite of tools to manage their careers effectively. That includes a question-driven interface, with Sasha understanding virtually any language. “This isn’t just a customized ChatGPT,” Robinson continued. “Sasha employs LLMs to provide customized guidance to the artist.”

The SaaS-like Sasha will also integrate with UNIFI’s “LinkedIn for Music” platform, enabling artists to connect with industry professionals and build valuable relationships. The broader aim is to bolster intelligent, AI-driven management with a rich network of connected musicians and opportunities.

According to Robinson, UNIFI Music’s vision for Sasha extends far beyond simple task management.

“This is a brand-new, functional direction for AI in music,” Robinson relayed. “We’re building a complete AI manager built from the ground up for musicians, music companies, and the entire music managerial ecosystem.”

The ultimate goal is to create a virtual manager capable of strategically, tactically, and emotionally guiding an artist’s career. For existing managers, the platform helps to eliminate time-consuming ‘assistant’ tasks like venue research, social media posts, and transportation logistics. “There’s less need for an assistant manager and more opportunity to create the ‘super manager,'” Robinson described.

Currently, Sasha can handle tasks like social media recommendations and identifying promising venues. However, as the platform evolves, it will take on increasingly complex responsibilities like contract negotiation, release planning, and tour management.

Ultimately, UNIFI Music’s vision is to create a virtual manager capable of guiding an artist’s career toward success.

Unifi’s Sasha in action (click to enlarge).

Unifi’s Sasha in action (click to enlarge).

Music management agencies may not like Sasha, but UNIFI’s vision is unique when compared to typical AI creation and management companies.

While the debate over AI-generated music continues, UNIFI Music is simply exploring the potential of AI in other areas of the industry. By leveraging AI’s capabilities, the company’s vision is to provide artists with personalized guidance and support, leveling the playing field and democratizing access to the tools and resources needed to succeed.

“UNIFI has the potential to revolutionize artist management and empower emerging musicians. We may also catapult fringe scenes and artists to the fore by boosting their industry savvy and experience overnight,” Robinson relayed. “That’s exciting stuff.”

If you’d like to connect with UNIFI Music, please contact La’Shion Robinson directly at l@unifimusic.ai.

Where’s Vinyl? Billboard Removes the Format From Its Site (Photo Credit: DMN Screengrab)

What are vinyl record sales like in the US? Don’t ask Billboard, which has now scrubbed its site of vinyl sales figures after reporting an extreme 33.3% year-over-year sales decline.

That shocking decline raised serious questions about the ‘vinyl comeback’ and resulted in an investigatory report by DMN Pro. Unfortunately, the takeaways from that report were hardly upbeat, with Luminate, Billboard, the Vinyl Alliance, and other organizations differing wildly over how many vinyl records are selling in 2024.

Has the Vinyl Comeback Been Greatly Exaggerated? A Closer Look at Some Confusing New Data

After DMN reported the 33.3% decline that appeared on Billboard’s site, angry emails and demands for corrections came next. The Vinyl Alliance called for an immediate correction, while Luminate blasted Billboard’s tallies —  which are ironically based on Luminate data — as ‘inaccurate’ and ‘unauthorized.’

If that isn’t confusing enough, read on.

Strangely, despite the demands by Luminate for corrections on Digital Music News, Billboard wasn’t updating their figures. A few days after DMN’s first report on the extreme decline, Billboard’s ‘Market Watch’ tally of format sales transitioned to a 32.6% year-over-year decline with a new disclaimer. Now, the vinyl sales figures have been removed entirely.

Exactly why Billboard has scrubbed its site of vinyl sales remains unclear, and owner Penske Media Corporation (PMC) declined to issue a statement on the matter.

Lying at the heart of this mess is a significant transition in how Luminate counts vinyl sales. Leading into 2024, Luminate’s updated methodology prompted howls of protests from independent record stores and vinyl groups. The result: indie retailers, led by the Vinyl Record Manufacturing Association (VRMA), branched off and launched their own vinyl chart, with Luminate sticking to their drastically reduced year-over-year figures.

Luminate told DMN that year-over-year comparisons were impossible given the methodological changes created at the beginning of 2024. These are two different counting methods, according to Luminate, though the revised methodology clearly resulted in dramatically lower figures.

Billboard’s ‘Market Watch’ page for ‘Album Consumption Units by Format’ on October 15th, 2024.

But year-over-year comparisons aside, why are the 2024 figures so much lower? Regarding the drastic change, Billboard issued this disclaimer on its site:

“NOTE: As previously reported, Luminate changed the methodology behind its independent retail sales reporting beginning Week 1 of 2024. While the new modeled methodology more accurately represents the independent retail market, there is not available comparable historical data to provide an accurate year-over-year trend regarding physical sales, including vinyl, and therefore any YoY changes reflected here are not a clean comparison and should not be taken as such.”

It should be noted that sales figures from the RIAA, BPI, and IFPI all show continued year-over-year gains in 2024 vinyl shipments.

Those are documented in detail in DMN Pro’s investigatory report on the matter. Indeed, 2024 has witnessed a crush of vinyl releases from Taylor Swift, all variations of The Tortured Poets Department. That seemed like a dousing of lighter fluid on the vinyl bonfire, though it’s unclear how those releases registered on Luminate’s redialed radar.

So what happens next?

At one point, Luminate reversed course and stated that vinyl sales were actually up 6% on the year. A few days later, however, it slipped that this sudden increase was only generated after indie record store tallies were completely removed from the mix. And Billboard never changed its figures to reflect the increase (even though Luminate demanded that DMN change theirs).

Enter Penske Media Corporation, which counts both Billboard and Luminate as properties. It now appears that Billboard and its sibling Luminate are huddling on the next steps, perhaps figuring out which revised dataset to present to the world.

Will a dramatic ‘reversal of a reversal’ result?

Billboard now has a choice: switch to Luminate’s revised single-digit year-over-year gains, or stay consistent with its monstrous year-over-year declines. Or, something in-between.

Either way, more vinyl-counting fireworks are almost certainly ahead. Stay tuned.

Flou’s legal drafting process in action.

Earlier this year, we first profiled Flou, an upstart company founded by Puerto Rican music attorney Alexiomar Rodríguez. Flou has a strikingly sensible mission: to transform the generally chaotic way music contracts and agreements are created, negotiated, and maintained throughout their life cycles. Several months later,  the company has successfully road-tested its platform with several early takers – and shared the early results with Digital Music News.

As any DMN reader can attest, the music industry is rife with legal warfare. Copyright battles, contract disputes, and even corporate espionage cram our pages daily, spanning the frivolous to the momentous. Garnering less attention is the contracting process itself, which can often devolve into a chaotic mess of wasted time, expensive legal bills — and if you’re really unlucky, full-blown legal battles that mar the creativity and partnerships involved.

Alexiomar Rodríguez, a music attorney who’s been in the weeds of these contracts for years, has set out to change that reality. Rodríguez’s answer is Flou, an all-in-one platform designed to streamline music contract management — from creation to execution and beyond. The company offers industry-specific templates, AI-assisted collaboration features, e-signature approvals, centralized storage, deliverables tracking, and a range of reminders during the pre- and post-signature phases of a contract’s lifecycle.

As part of its pitch, the company paints a stark contrast between the messiness of current contractual processes and the relaxed orderliness of automated templates, collaborative drafting, and AI-assisted agreement terms. On Flou’s site, the former features a stressed-out dragon surrounded by a swirl of papers; the latter features a happy dragon with a neatly arranged document interface. It’s Flou’s model in a nutshell.

Of course, the music industry is complex and demands a lot of different legal contracts to cover that complexity. But Flou and Rodríguez are determined to address that complexity with a wide range of music industry contracts, including work-for-hire agreements, production contracts, and artist-label contracts. Part of the company’s challenge will be to address all of those scenarios and their nuances, while staying on top of constant changes in agreements and partnership structures.

Regardless of the specific contracts, the game plan is the same: by translating complex legal obligations into manageable tasks, Flou simplifies compliance and reduces legal risks. The platform also offers educational resources to help users navigate the complexities of music agreements.

“The value proposition is the same for indie labels, publishers, and artists’ teams,” Rodríguez told DMN.  “Flou saves money on legal fees, saves time by automating your music contracts, and eliminates all the stress and sleepless nights.”

All of that sounds great in theory. But is it working?

Partnering with Digital Music News, Flou decided to share their early client stories with us. It’s a rare look into the early steps of a young company, with some early success metrics suggesting broader industry-wide changes.

So who were the first takers? 

Flou has the backing of mega-companies like Warner Music Group and Concord Music. But the real proof-of-concept is coming from smaller shops that desperately need simplified legal solutions.

For starters, larger companies are understandably hesitant to trigger extreme overhauls in their contracting processes, while smaller companies have the luxury of being more flexible.

Flou’s initial focus isn’t industry giants, but that’s exactly the point. Rodríguez says Flou is working closely with smaller outfits as its platform grows, an approach that also allows the company to refine its offerings during its developmental and ramp-up phases.

With that, here’s a look at two companies that have thoroughly road-tested Flou and relayed back some serious savings (and gains): Sash Media Group and One Music Global Publishing.

Case Study One: Sash Media Group

Sash Media Group, an Atlanta-based company focused on music production and record label services, faced a common challenge for new businesses: managing legal contracts without incurring exorbitant fees and extreme time drains. Founded by Grammy-winning producer Samuel Ash, the company works with top-tier artists in the US and Latin America, necessitating well-crafted contracts that protect all parties involved.

The Giant Challenge of Legal Organization

As a startup record label, Sash Media Group desperately needed a streamlined, affordable way to create and manage contracts. Traditional legal services, while comprehensive, often come with hefty price tags. Recognizing the importance of legally sound agreements, Ash tapped Flou as a potentially cost-effective solution that would equal the contractual quality that a serious attorney or law firm could offer.

Adding to the complexity for Flou, Sash’s unique business model required customized contracts that deviated from standard templates. There were numerous variations and special cases that demanded a flexible and adaptable legal solution.

Not an easy first client, but Sash Media Group initiated a partnership with Flou in an attempt to resolve those easily-stage issues. Fast-forward a few months, and the pilot has produced some substantive benefits, including lowered legal costs.

Despite being at an earlier stage of development, Flou has an extensive library of pre-approved templates in both English and Spanish. That met Sash’s initial contractual needs to get the partnership started.

“Creating agreements is quick and easy, allowing us to focus on working with the artists instead of trying to figure out all the paperwork,” Samuel Ash described.

Right off the bat, there was the classic challenge of dealing with PDF contracts. “Like many of our users, Sash had contracts they had previously paid a lawyer to draft, which were sent in PDF format,” Rodríguez relayed. “We helped convert those contracts into templates, turning them into automated Q&A forms so they no longer had to rely on manual ‘find and replace’ edits.”

Overall, the newfound efficiency enabled Sash to prioritize its core mission of producing and marketing music, resulting in a nice win. Focusing on the game plan, Rodríguez detailed how Flou’s platform met a number of Sash Media Group’s specific requirements.

Here’s what Rodríguez emphasized in the partnership:

An Ever-Growing Library of Templates: Flou provided a considerable selection of up-to-date, lawyer-approved contract templates in plain language, ensuring clarity and legal compliance.

One System for Contracts: Flou offered an all-in-one solution, covering the entire contract lifecycle from drafting to signing and beyond, eliminating the need for multiple tools and streamlining the process.

Lots of Support: Flou’s implementation team provided a considerable level of support, assisting Sash Media Group in creating a customized template within its first week of signing up.

And the Big Win: Lower Legal Costs: By leveraging Flou’s self-serve platform, Sash Media Group significantly reduced their reliance on external legal counsel, resulting in substantial cost savings.

That last gain is a big win for smaller outfits, many of which lack the big-level budgets of their larger competitors. It’s a major part of the Flou model and why Rodríguez initially wanted to focus on smaller plays.

The real kicker is that Samuel Ash reported saving over $3,000 in legal fees, a significant amount for a fledgling business. That’s not a six-figure windfall, though it offered a nice savings start that can be scaled – with the company planning to reinvest those funds into music production and marketing efforts.

Beyond the monetary savings, Flou’s platform simplified the contract management process, saving valuable time and resources. Samuel Ash emphasized the platform’s ease of use: “We saw the value within the first week of subscribing.”

Case Study Number Two: One Music Global Publishing – A Powerhouse In Latin Christian Music

In the vibrant Latin Christian music scene, One Music Global Publishing has emerged as a serious player for the genre’s top songwriters. This boutique publishing company, based in Puerto Rico and the Dominican Republic, currently boasts a catalog of over five million monthly listeners on Spotify alone.

Already representing a range of established and up-and-coming songwriters, One Music is now focused on solidifying its position in the Latin Christian genre. That means continuing to build strong partnerships with the songwriters that are connecting the most with this audience.

One Music’s popularity has been growing in a solid genre – that’s the good news. But the company also found itself drowning in the complexities of managing contracts and ensuring the equitable distribution of royalties. The company felt that the traditional manual contract process was time-consuming and prone to errors, hindering the company’s efficiency and diverting valuable resources from strategic initiatives.

This is a growth-stage mess that Rodríguez was seeing first-hand while practicing law in Puerto Rico. The situation made One Music an obvious choice for an early client.

Taking things further, One Music also wanted to get its songwriters more involved in the contracting process itself. In short, One Music wanted a tool to empower its publishing team to take control of contract creation and management.

One Music’s requirements were clear: a self-service platform that would streamline the entire contract lifecycle, from drafting to signing and beyond. The platform needed to be user-friendly while enabling quick adoption and integration into their existing workflow. Additionally, real-time visibility into the status of contracts was crucial for identifying and addressing any bottlenecks.

At this point, Flou was already gaining traction as a contract management solution, so they were plucked as the answer to One Music’s needs. Flou’s implementation team jumped in with an onboarding process that included heavy support to get things off the ground.

With a focus on self-servicing, One Music’s publishing team gained the autonomy to create split sheets and other essential contracts using pre-approved templates and simple Q&A forms. This eliminated the need for constant legal intervention, freeing up valuable time and resources. The platform’s real-time tracking capabilities also provided a clear overview of contract statuses, enabling the One Music team to address any delays proactively.

Sounds great, though Rodríguez told DMN that One Music presented some unique challenges that tested Flou’s model.

For example, the label manages both authorized and unauthorized versions of their music, particularly those involving language translations (Spanish and Portuguese are favorites) and remixes (welcome to the modern fan economy).

Flou also helped One Music continue expanding into label and distribution services, which demanded more contractual support. “We had to add more contract templates,” Rodríguez explained.

After the transition towards automation and templating, One Music relayed some early-stage wins.

The biggest win was this: One Music witnessed a staggering 50% reduction in contract turnaround time. This newfound efficiency translated into a significant boost in productivity, allowing the team to focus on strategic initiatives rather than administrative tasks.

Joan Bonilla, founder and CEO of One Music, is now looking to expand the partnership. “Flou has revolutionized our contract management process,” he remarked. “Creating split sheets is now quick and foolproof, allowing us to focus more on expanding our songwriters’ business and less on paperwork.”

The benefits extended beyond time savings. Flou’s centralized platform eliminated the need to juggle multiple systems and manual filing, reducing errors and enhancing overall efficiency. Joan himself found more time to engage in high-value activities such as attending industry events and negotiating favorable deals for his clients.

Rodríguez says that Flou has enabled One Music to focus on its core mission: championing the voices of Christian Latin songwriters and building enduring legacies in the world of music.

Where Flou Is Headed Next

After working with these initial clients, Rodríguez is understandably pleased with the proof-of-concepts. Substantial cost and time savings are core to Flou’s model, but big wins also came in the form of self-service functionality, collaboration, and template flexibility.

In many cases, Flou quickly encounters the exact problem its model is trying to solve: a mountain of disorganized paperwork, digital or otherwise. “Most music companies still use MS Word, DocuSign, and spreadsheets to manage contracts, which leads to missed renewals, decentralized storage, and bottlenecks,” Rodríguez described.

“Our goal is to be the go-to solution for managing all contract-related paperwork in the music industry. So we are open to collaborating and integrating with all types of music companies and solutions.”

That said, Rodríguez feels the biggest challenge for companies is the growing volume of legal and contractual paperwork, based on initial client feedback and what he’s witnessing in the marketplace. That problem is particularly acute for companies that are shrinking in size in response to investor and Wall Street demands.

After working ‘in the wild’ and hearing actual client needs, the model is now expanding substantially towards developing APIs, white label solutions, and a self-service portal that labels and publishers can offer to their artists, producers, and songwriters.

Flou has also been focusing on AI applications, particularly around clause-specific training, advanced contract reviews, and deal suggestions driven by music data analytics.

“Music companies are shrinking in size, but still have to manage a huge amount of paperwork,” Rodríguez said. “Right now, Business & Legal Affairs departments are paying $65,000 to $75,000 a year, plus benefits, bonuses, and profit-sharing programs, to hire contract administrators.”

“Our overarching goal is to shrink the workload around contracts and shift companies more towards their core competencies – developing great music from legendary artists!”

A shake-up in Kyncl’s cast: (l-r) Max Lousada, Julie Greenwald, Elliot Grainge (Credits, also l-to-r: Billal Taright, Matthew Furman, Logan Mock)

Warner Music Group confirmed a significant restructuring of its Recorded Music division on Thursday (August 1st), with an expressed aim to to better enhance artist services, streamline global operations, and position the company for sustained growth. The shakeup involves major leadership changes — including the departure of longtime Recorded Music CEO Max Lousada — and a flatter organizational structure going forward. Here’s the full breakdown.

Warner Music Group CEO Robert Kyncl has now pulled the trigger on a serious restructuring, specifically involving the all-important (and far more profitable) recorded music division. The biggest bombshell is that after two decades with WMG, Max Lousada, CEO of Recorded Music, will step down at the end of the fiscal year on September 30th.

Lousada will continue as an advisor until January 31st, according to details confirmed by the major.

Staying in the building is Julie Greenwald, who will transition into the lofty role of Chairman of Atlantic Music Group, directly reporting to Kyncl. Also elevating ranks is Elliot Grainge, founder & CEO of 10K Projects, who will now become CEO of Atlantic Music Group, effective October 1st.

Grainge first joined WMG’s senior management team last year following the company’s acquisition of a majority stake in 10K Projects. The hip-hop-savvy executive, whose father is Universal Music Group chairman and CEO Lucian Grainge, reportedly blasted an email to the 10K troops to reassure that business at the label would continue as normal.

Lousada is saying goodbye, though there won’t be a direct replacement.

According to WMG, the new structure, effective October 1st, will eliminate the roles of CEO, Recorded Music and President, International, Recorded Music. Regional and divisional leaders will report directly to Kyncl, fostering direct channels between local expertise and global opportunities.

That shifts the structure towards a more ‘flat’ organizational layout, which theoretically cuts bureaucracy and confusion with cleaner reporting lines.

Key regional leadership appointments include Simon Robson overseeing Europe, the Middle East, and Africa; Alejandro Duque continuing to lead Latin America; and a yet-to-be-appointed leader for the newly created Asia Pacific region.

In the US, the Atlantic Music Group, under the leadership of Grainge and Greenwald, will encompass Atlantic Records, 300 Elektra Entertainment, and 10K Projects. Warner Records, led by Tom Corson and Aaron Bay-Schuck, will now include Warner Music Nashville, Nonesuch, and Reprise.

Warner Music Group is also bolstering its global operations in distribution, Global Catalog, Marketing, and WMX. The heads of these divisions will report to Kyncl from October 1st.

“On behalf of everyone at WMG, I’d like to thank Max for his extraordinary achievements over the last twenty years,” Robert Kyncl relayed. “Max is a true artists’ champion, who created a culture that puts artistry first, growing our global reach and building a roster of incredible talent and an outstanding team. I’m grateful that he’ll be helping to ensure a smooth transition.”

Too Lost-distributed artist Ollie Joseph (Photo: Ollie Joseph)

The music industry isn’t running out of music distributors anytime soon, though Too Lost is differentiating with some interesting innovations —including a deep list of partnerships that include BMG, Easy Song, beatBread, and Delta.

Music distribution is a seriously competitive sub-industry, though a relatively fresh face, Too Lost, is making waves by rethinking the traditional distribution model.

Already, the company is getting good marks from the musician community for solving issues like streaming fraud and enabling artist financing. However, the company is also pushing an expansive partnership strategy designed to offer artists and labels more than just a path to digital service providers (DSPs).

The result: Too Lost is suddenly pushing distribution far beyond the traditional task of shuttling music from A-to-B. With an array of non-traditional partners, the company aims to provide broader opportunities for its artists, with the end game of reaching new and diverse audiences. Just recently, Too Lost partnered with Digital Music News to further expand their growing footprint.

Several notable artists are already on board with Too Lost’s refreshed concept, including Chief Keef, ILoveMakonnen, YG, Xavier Wulf, Lil Mabu, Josiah and the Bonnevilles, Ali Gatie, Lucifer, Joseph Tilly, and Pink Sweats. Also in the Too Lost mix are up-and-coming artists like Ollie Joseph (pictured), who recently crossed 600,000 followers on Spotify.

At this stage of the game, artists can quickly move their music onto Spotify or Apple Music with more than a dozen high-quality distribution platforms.

Against that competitive landscape, Too Lost decided to expand the role of traditional distribution. Too Lost excels in DSP distribution (they are a Spotify Preferred Provider, for example), though they also offer competencies in critical areas like cover licensing, financing, and publishing administration.

Too Lost told Digital Music News they decided against building those competencies from scratch for several reasons. For starters, the ‘wheel has already been invented’ in many critical music industry core competencies, so why not simply partner with the best to rapidly expand the possibilities for its artists?

In the case of cover licensing, that meant brokering a deal with Easy Song. In artist financing, a beatBread deal was inked to enable flexible financing options, enabling Too Lost artists to fund their projects without traditional record deals. For publishing administration, a BMG partnership was brokered. And the list goes on.

“Our partnerships with industry leaders like BMG and beatBread are a testament to Too Lost’s commitment to providing artists with comprehensive tools and resources,” said Damien Ritter, Director of Marketing at Too Lost. “By leveraging these collaborations, we empower artists to focus on their creativity while we handle the complexities of rights management, financing, and content protection.”

Here’s a quick rundown of some of Too Lost’s top partnerships.

Too Lost told us that this is a rapidly-growing list, though these are currently some of their most impactful and essential partnerships.

Easy Song: Simplifies the complex world of song licensing, making it easier for artists to cover songs legally.

Pex: Provides robust content identification and monetization tools.

Cosynd: Offers enhanced IP protections, ensuring artists’ intellectual property is well-guarded.

BMG: Assists with publishing administration and royalty management, freeing artists from the intricacies of managing their publishing rights.

Beatbread: Facilitates flexible financing options, enabling artists to fund their projects without the need for traditional record deals.

Manifest (formerly Nerve): Ensures direct payouts to artists, streamlining the financial aspects of music distribution.

Beyond its core partner alliances, Too Lost is also focusing on non-traditional distribution endpoints.

For most artists, uploading an album to Spotify is akin to pouring water into the Pacific Ocean. Current estimates peg the number of songs uploaded to DSPs at more than 120,000 a day, and AI only worsens the situation.

So, how do you get noticed in such an intimidatingly vast sea of ‘content’? Too Lost says they hear this problem repeatedly, though not every platform is so crowded. Accordingly, the company has partnered with companies like Delta and Peloton to help artists break through.

Delta doesn’t offer an on-demand platform with millions of songs, though they do promote selected songs to captive fliers. The noise floor is suddenly overcome if an artist is chosen for one of the airline’s in-flight entertainment systems.

The same is true for Peloton, whose high-energy workout playlists can make fans out of fitness enthusiasts if the vibe is right. Too Lost also brokered a partnership with Sonu Stream, co-founded by Tokimonsta, which aims to better compensate artists for their streams. These non-traditional partnerships aim to expand the reach of Too Lost’s artists, ensuring that their music can be discovered in unexpected places.

After a relatively short period in the industry, Too Lost has received positive marks from musicians.

Among the biggest fans is Ari Herstand, a respected musician and industry expert who recently proclaimed that “Too Lost is one of the best-kept secrets in the music distribution world.”

“Their commitment to artist autonomy and unmatched administrative support sets them apart from the competition,” Ari gushed.

Too Lost’s top artists are also tapping into the platform’s network of partnerships, with tracks getting financed and popping up on non-traditional playlists. “At Too Lost, we are incredibly proud of the innovative solutions and partnerships we’ve developed to support our artists,” says Ritter. “Our mission is to empower musicians by providing them with the tools and resources they need to succeed in today’s dynamic music industry.”

“At Too Lost, we firmly believe that you can make a serious creative dent and find your fans — but you need the right partners to do it.”

Music publishers have declared war against Spotify — and the reason is bundling. But what are the other DSPs doing? Now, there’s a chart for that: The Bundling Barometer from DMN Pro.

For the average consumer, bundling is a part of daily life. Whether a six-pack of Negro Modelo or a bundled vacation package to Europe, tying products together into a handy bundle is a well-worn business practice.

Shift over to the music industry, however, and bundling is demonstrably impacting music publishers and their revenues. According to the latest Bundling Barometer reading, an astounding 98% of Spotify premium plans are now classified as bundles. That will translate into losses of several hundred million dollars over the next few years.

But what are the other streaming music platforms doing?

Hint: Spotify isn’t alone when it comes to bundling. Another major streaming music platform is also ramping up bundled packages past the 70% mark. Others could copy Spotify’s shift, resulting in hundreds of millions of additional lost revenues for music publishers.

Here’s a quick look at where major streaming platforms currently stand on bundling.

The Bundling Barometer, a US-based chart from DMN Pro, is sourced from actual mechanical publishing statements shared with Digital Music News.

The chart also includes critical fields to help the music industry better understand the bundling practices of major DSPs, including:

(a) Total number of DSP subscribers technically bucketed into ‘bundles’ for publishing royalty calculations.

(b) A breakdown of overall bundled subscribers, including those not technically classified as bundled for royalty accounting purposes.

(c) A calculation of the percentage of total DSP subscribers this all translates into.

(d) A look at month-by-month shifts and changes in bundling calculations for the top DSPs.

Currently, The Bundling Barometer tracks four major DSPs, which account for more than 97% of the total subscriber market: Spotify, Apple Music, Amazon Music, and YouTube Music.

The remaining DSPs, which account for a small but important remainder of the market, will be added in subsequent chart updates later in 2024.

The Bundling Barometer is just one of several databases now offered by DMN Pro, a premium, subscription-only music industry platform from Digital Music News. Other DMN Pro databases and charts include:

Streaming Music Subscriber Market Share Breakdown (US)

A breakdown of US-based subscribers for all major streaming music platforms (DSPs) and subscription types.

Streaming Audio Fidelity & Pricing Tracker

What streaming platforms are offering in terms of audio fidelity and associated pricing.

Music IP Acquisition Tracker

A rundown of music IP purchases across publishing, recording, and other rights.

The Music Industry Funding Tracker

A compendium of music industry funding rounds across every sub-sector and investment stage.

New Music Release Tracker

The 100 most notable new music releases across all genres and countries.

DMN Pro subscribers have complete access to these databases, plus weekly research reports and other informational deep-dives. These include data unavailable on any other platform — free or paid.

Join the music industry’s fastest-growing, most informative data source. Subscribe to DMN Pro today!

Photo Credit: Ugglemamma

Spotify is now taking serious issue with Digital Music News’ assertion that ‘Basic’ is getting buried from would-be subscribers.

Spotify has every incentive to bury its newly launched, unbundled ‘Basic’ subscription tier. But does that mean Spotify is intentionally hiding ‘Basic’ from would-be subscribers to steer them into its more lucrative bundled options?

Given the economics, it’s hard to imagine Spotify not wanting to bury its Basic tier. Not only are bundled plans more expensive, but they’re also substantially cheaper when it comes to royalty payments (and for proof of that, look no further than the hard data outlined in this DMN Pro report).

That may explain why Spotify has shifted more than 98% of its plans into bundles, according to our just-released Bundling Barometer.

Over the past few weeks, Digital Music News found overwhelming evidence that Basic is being buried. In response, Spotify has begged to differ and demanded corrections. We’re unsure if Spotify is helping or hurting their case here, but let’s air this out.

Perhaps the biggest tell is that new subscribers cannot subscribe to a Basic, unbundled plan. Despite the quibbling over details, Spotify didn’t dispute this critical fact.

“Basic plans are only available to existing subscribers,” a Spotify representative confirmed to Digital Music News.

Not only are newer subscribers forced into bundled tiers, but they are also unlikely to downgrade into a Basic, un-bundled tier after initially subscribing. The main reason? Few will know a simpler and cheaper plan exists — unless they accidentally stumble upon this option.

These ‘stumble upon’ moments would include revisiting the subscriber options page while logged in, clicking through other subscription options in the ‘Account’ page, or hearing about the cheaper option from a friend, forum, or other source. In all likelihood, only a tiny percentage of new subscribers will encounter the Basic option after subscribing to a bundled tier, and of those, only a subset will take action.

Spotify did note that both Family and Duo bundled Premium plans can be downgraded into Basic options, something we said didn’t exist.

The company also stated that it email-blasted all of its subscribers about the expanded option, though we somehow didn’t receive that email (and it didn’t land in our spam folder).

(On this last point, we did receive a note titled ‘Information about your plan’ on June 21st, which low-key informed us of a $1 price hike. This actually had some information about the Basic downgrade.)

None of that adds up to ‘shouting from the rooftops,’ though Spotify is trying to make the case that Basic isn’t being buried. But why are they doing this?

And why launch Basic at all if the real money is in bundling?

There may be a few motivations at work here. Spotify has been lambasted by music publishers over its sneaky, royalty-cutting shift into bundling. They have also been sued (by the Mechanical Licensing Collective) and referred to federal regulators (specifically the FTC) over this shift.

The National Music Publishers’ Association (NMPA) is also stirring trouble for Spotify: NMPA chief David Israelite is already pushing for changes on Capitol Hill following Spotify’s shift while dangling the threat of litigation against the platform for separate infringement claims (specifically related to Spotify’s lyrics, music videos, and podcasting diversifications).

But what if Spotify can simply point to a bundle-free Basic option? After all, if subscribers have a choice between bundled and unbundled, then Spotify is merely serving the marketplace instead of abusively steering people towards royalty-lowering bundles.

Meanwhile, there are rumblings that the NMPA is preparing to litigate against the aforementioned infringement allegations. But that’s a whole ‘nother can of worms.

Stay tuned.

Photo: Digital Music News

Last month, Spotify offered the perfect solution to anyone upset with its shift towards bundled subscriptions — a plan solely dedicated to music. There’s just one problem: Spotify’s ‘Basic’ plan is practically impossible to find.

In response to all the hullabaloo and outrage over its shift towards bundled subscriptions, Spotify created the perfect solution: a music-only, bundle-free plan. Late last month, Spotify quietly launched the cheaper option for anyone who preferred a non-bundled alternative.

Introducing Spotify’s ‘Basic’ subscription tier, which does not include bundled access to audiobooks. A Spotify Basic subscription costs $10.99 per month, a dollar less than its Premium tier, which includes 15 hours of audiobook access. The stripped-down subscription plan would save customers money while preserving the higher publishing royalties associated with non-bundled subscriptions.

Problem solved.

“On Spotify, users discover and enjoy music, podcasts, and audiobooks, with various plans that meet our listeners’ needs,” the company relayed on June 21st while noting that “we’re now offering even more options for eligible U.S. subscribers.”

Suddenly, Spotify has a different story to tell regulators, lawmakers, and federal judges reviewing the company’s bundling shifts.

Sure, music publishers are livid over the company’s shift towards lower-paying bundles. But now, subscribers can choose whatever plan they want, including non-bundled options. And if subscribers can pick plans and bundles based on their preferences, isn’t Spotify just giving people what they want?

John likes the convenience of an $11.99 audiobook-bundled plan. Sally doesn’t like the bundled offering because she doesn’t like audiobooks. John and Sally move in together and get a Duo plan with audiobooks included.

It’s the subscriber’s decision, not Spotify’s.

Just one problem: Spotify’s menu of available subscription options doesn’t even list the ‘Basic’ plan.

Basic is also buried to existing subscribers who want to downgrade — if they’re even eligible to downgrade.

Spotify Went ‘Full Bundle’ And Isn’t Looking Back. But What Are the Other Music Platforms Doing?

So how is the elusive ‘Basic’ plan obtained? At the onset, would-be subscribers cannot select the Basic plan to start. Instead, a bundled subscription (for example, an $11.99 Individual subscription with audiobooks) must be purchased first, then downgraded within the Spotify app. And that assumes that the user knows a cheaper music-only plan exists.

But this gets worse. Spotify’s blog post announcing the change noted that Basic is only for ‘eligible’ users.  So who’s ‘eligible,’ exactly?

That would be existing Individual subscribers, not Family or Duo subscribers. Anyone who wants a music-only subscription as a couple or a family is out of luck. (After the publication of this article, Spotify told DMN that all existing Family and Duo Premium plans can be downgraded into Basic, music-only versions.)

In other words, Spotify is funneling all new users to the default Premium tier, which includes bundled audiobook access (for $11.99 a month). Once subscribed, that user, if ‘eligible,’ must actively seek to downgrade the Premium subscription to ‘Basic’ (at $10.99 a month).

But even after an active subscriber attempts to make changes, Basic is still hidden. Here’s what the Account page looks like for an active subscriber to an Individual, audiobook-bundled $11.99-a-month plan.

Only after clicking ‘Available plans’ is the subscriber taken to a new set of options. After scrolling down, Basic appears. And this assumes that the subscriber knows a ‘Basic’ option exists—and Spotify probably won’t alert them.

So what’s next in this game?

At this point, it appears that Spotify is planning to use its Basic plan to make the case that subscribers aren’t being forced into bundles. But whether that works with FTC regulators, CRB judges, and others reviewing the legality of Spotify’s bundling shift is speculative.

After all, Basic is buried, and publishers will make that clear — though perhaps technically, Basic also helps to diffuse legal arguments against Spotify’s bundling by opponents like the Mechanical Licensing Collective (MLC) and National Music Publishers’ Association (NMPA).

The bigger game is more obvious. For now, Spotify has effectively shifted more than 98% of its subscription plans to bundles, which translates into serious savings. According to DMN’s latest estimates, Spotify is likely to save more than $160 million worth of publishing royalties a year in the United States, while boosting revenues by half-a-billion dollars on its recent price hikes.

The more bundles, the lower the royalty bill for Spotify — and the greater likelihood of long-term profitability. In the end, the math on this one is pretty ‘Basic’.

Update: Spotify has now responded to this piece, specifically to clarify that Family and Duo Premium bundled plans are eligible for downgrade into a Basic tier. The company also noted that it emailed all subscribers with news of the cheaper Basic option — though this email was not received by DMN. Perhaps most importantly, Spotify also confirmed that the music-only downgrade is only available to current subscribers.

The Recording Industry Association of America (RIAA), on behalf of its major label clients Universal Music Group, Sony Music Entertainment, and Warner Music Group, announced the filing of two copyright infringement lawsuits against AI music services Suno and Udio, alleging the unlicensed use of copyrighted sound recordings to train their generative AI models.

In an email to Digital Music News, the RIAA described both lawsuits as ‘landmark’ — and that may not be an understatement.

According to the trade group, the lawsuits against Suno and Udio, filed in Boston and New York federal courts, respectively, mark a significant step in protecting artists’, songwriters’, and rightsholders’ control over their works in the rapidly evolving landscape of AI technology. The plaintiffs, specifically Sony Music Entertainment, UMG Recordings, Inc., and Warner Records, Inc., assert that Suno and Udio have copied and exploited countless sound recordings without permission, spanning various genres, styles, and eras.

The cases seek declarations of infringement, injunctions to prevent future infringement, and damages for past infringements. The core allegations highlight the unlicensed copying of sound recordings on a massive scale for training, development, and operation of Suno and Udio’s services.

The filings can be found here (Suno) and here (Udio).

In its communication with DMN, the RIAA compiled a breakdown of numerous examples of copyright infringement that exemplify the issue at hand.

RIAA Chairman and CEO Mitch Glazier emphasized the music community’s embrace of AI while highlighting the need for responsible development: “The music community has embraced AI, and we are already partnering and collaborating with responsible developers to build sustainable AI tools. But we can only succeed if developers are willing to work together with us.”

Glazier has been critical of unlicensed services like Suno and Udio for exploiting artists’ work without consent or compensation, hindering the potential of innovative and ethical AI.

RIAA Chief Legal Officer Ken Doroshow reinforced the necessity of the lawsuits, stating, “These lawsuits are necessary to reinforce the most basic rules of the road for the responsible, ethical, and lawful development of generative AI systems and to bring Suno’s and Udio’s blatant infringement to an end.”

The music community, including various organizations and prominent figures, has rallied to support the RIAA’s efforts to protect creative works and foster responsible AI development.

In emails to DMN, executives from The Recording Academy, A2IM, SoundExchange, SONA, the NMPA, and others emphasized the importance of fair compensation, respect for artists’ rights, and the ethical use of AI technology.

The core legal arguments presented in the RIAA lawsuits against Suno and Udio revolve around copyright infringement and fair use, with several key points:

Unauthorized Copying of Sound Recordings: The complaints allege that both Suno and Udio engaged in the mass copying and ingestion of copyrighted sound recordings without obtaining the necessary permissions from rightsholders. The RIAA argues that this act of reproduction constitutes a direct violation of copyright law.

Commercial Exploitation: The lawsuits assert that the unauthorized copying was done for commercial purposes, as both Suno and Udio are profit-driven enterprises that monetize their AI-generated music services. This commercial exploitation of copyrighted works without permission further strengthens the copyright infringement claim.

Harm to the Music Industry: The RIAA contends that the unauthorized copying and exploitation of sound recordings by Suno and Udio not only deprives artists and rightsholders of fair compensation but also poses a significant threat to the music industry as a whole. By generating synthetic music that imitates and competes with genuine human creations, these AI services risk devaluing and potentially replacing human-created music, leading to a decline in the quality and diversity of music available to consumers.

Rejection of Fair Use Defense: The complaints anticipate a fair use defense from Suno and Udio but argue that such a defense is invalid in this context. The RIAA maintains that the fair use doctrine, which allows for limited use of copyrighted material without permission under certain circumstances, does not apply to the wholesale copying and commercial exploitation of sound recordings for the purpose of generating derivative works.

Deliberate Evasion and Lack of Transparency: The lawsuits accuse both Suno and Udio of being deliberately evasive about the scope and extent of their copying of copyrighted sound recordings. This lack of transparency, the RIAA argues, is an attempt to conceal their willful copyright infringement.

Negative Impact on Human Creativity: The RIAA emphasizes that the unauthorized use of copyrighted works in AI models not only harms the economic interests of artists and rightsholders but also undermines the value of human creativity and ingenuity. By relying on the unauthorized copying of existing works, AI services like Suno and Udio risk stifling innovation and reducing the diversity of musical expression.

Overall, the legal arguments in these cases center on the fundamental principle that AI companies, like all other businesses, must abide by copyright laws and respect the rights of creators. The RIAA seeks to establish a clear precedent that the unauthorized copying and exploitation of copyrighted works for commercial purposes, even in the context of AI development, constitutes copyright infringement and will not be tolerated.

Warner Music Group CEO Robert Kyncl (r) chatting with NMPA president & CEO David Israelite (l) at the NMPA Annual Meeting on June 12th in New York.

The major labels all have major publishing divisions — and each one of them is getting hit with serious month-over-month royalty reductions from Spotify. So why aren’t major label CEOs doing anything about it?

Every year, the National Music Publishers’ Association (NMPA) hosts a memberwide meeting to celebrate songwriting, highlight publisher accomplishments, and discuss the latest financials and pressing issues. There’s always some good music and laughs. But this year, the meeting felt less like a celebration and more like a preparation for battle in a wartime bunker.

“Spotify has declared war on songwriters. Our response shall be all-encompassing,” NMPA president David Israelite pledged to the assembled, with on-screen text showing a quote from Winston Churchill’s 1940 “We Shall Fight on the Beaches” speech. Speaking to the assembled troops, Israelite outlined the ‘all-encompassing’ response that includes litigation, legislation, and content removals based on direct copyright infringement.

“Our letter was not just a warning shot,” Israelite declared, referring to a cease-and-desist involving Spotify’s use of certain lyrics on the platform and songs in podcasts. “The NMPA has never lost a lawsuit. So you will want to stay tuned.”

Sounds pretty serious, though Spotify doesn’t look intimidated.

In the wake of an aggressive lawsuit lodged by the Mechanical Licensing Collective (MLC) and formal complaints sent to the FTC and other US-based regulatory agencies, the streaming giant has issued strongly-worded statements to Digital Music News challenging the NMPA’s claims. More importantly, they’ve plowed forward with bundled subscription reclassifications that have already resulted in a 44% month-to-month drop in mechanical royalty payments, according to just-released calculations from DMN Pro.

Preliminary royalty statements shared with Digital Music News also reveal that greater than 97% of all Spotify subscriptions in the United States are now classified as bundles in some form or another.

“At Spotify,” the company told DMN, “our approach towards expanding our offerings and increasing pricing is industry standard. We always notify users well in advance of any price increases and offer easy cancellations as well as multiple plan options to consider.”

“We categorically reject the NMPA’s baseless accusations and will continue to provide our users incredible value and a best-in-class experience,” Spotify concluded.

Spotify Mechanical Royalty Payments Drop 44% Month-to-Month as Bundling Takes Root — Here’s a First Look at the Raw Post-Bundling Numbers

Given the pronounced revenue drops involved and battle lines drawn, you’d expect the all-powerful major label CEOs to ride into town, settle the matter, and set Spotify straight. Nothing remotely close to that is occurring.

Universal Music Group chairman and CEO Lucian Grainge and Sony Music Entertainment CEO Rob Stringer have been strangely quiet. Elsewhere, Warner Music Group CEO Robert Kyncl appeared for a keynote interview at the NMPA annual event but declined to offer any serious action to reverse Spotify’s bundling moves.

Instead, Kyncl assumed more of a referee role instead of becoming a fighter in the ring.

“If you look back eighteen months when I started on the job, we had no price increases [by streaming platforms] for fifteen years,” Kyncl said. “Everything was the same, lagging inflation. Since then, we’ve had price increases by everybody, some of them twice. So we’ve moved things in the positive direction to increase the pie, to grow, and that will continue.”

“This bundling is like a variation of that,” the WMG boss continued. “In theory, I’m supportive of bundling, but we just have to make sure that we sort out all the details so that it works for us, so that the value is accruing exactly the way we want.”

“So the answer is, ‘yes, but…'”

Earlier, in a WMG earnings call, Kyncl stated that he didn’t expect Spotify’s dispute with music publishers to last long, because ‘these things don’t play out well’.

At most, that suggests that Kyncl — and possibly other label chiefs — are working to diplomatically resolve the issue with Spotify while keeping the relationship intact.

That falls far short of a TikTok-style’ nuclear option,’ which appears mostly unthinkable given the billions Spotify is plowing into major label bank accounts. Tellingly, not one source to Digital Music News pointed to anything near the extremity of the TikTok pullout emerging with Spotify. And the reasons appear simple.

While extremely high-profile and risky, the UMG-led TikTok removal didn’t involve a critical distribution partner generating a substantial portion of annual revenues. Instead, we quickly learned that TikTok was generating less than 1% of Universal Music Group’s total revenue despite the platform’s relative importance in the music ecosystem.

“With regard to TikTok, we’ve disclosed that our former deal generated about 1% of total UMG annual revenue,” Universal Music Group CFO Boyd Muir confirmed in the company’s Q4 2023 earnings call. In a subsequent analysis, DMN Pro revealed that paid downloads on platforms like the iTunes Store were generating more income for UMG than TikTok licensing.

The result: despite the optics and howls of protest from TikTokers, UMG could afford to make that point. And it’s unlikely to be a hammer wielded against a platform that is most certainly generating more than 1% of revenues.

But there’s a bigger elephant in the room here.

Publishing and recordings are two sides of the same coin, but this is anything but a 50/50 split. Recording rights are negotiated in the free market, while pre-determined statutory rates and government tribunal determinations largely determine publishing percentages. And there’s only so much of the pie that Spotify can pay out, which means that more money paid to publishers means less money to recording rights owners.

“Streaming deals are immutably constrained by the fact that there is a finite pot of money,” industry attorney, investor, and form music publishing executive Jody Dunitz explains. “There is never more than 100% (less overhead and profits) for the streaming services to pay out. Thus, songs can never achieve their fair share until labels take less.”

And the real kicker? “Because the profit margin for labels is much greater than that earned by publishers, the umbrella music corps have no incentive to support a fight to give more to songs.”

Additionally, given that financial reality, it’s unlikely that major label CEOs want to shift towards the hybridized direct-licensing framework outlined by Israelite in a recent proposal to Congress. Giving songwriters and publishers the ability to name their prices independently — and pull their content at will — risks compromising the Spotify consumer experience and reducing the pie for major labels.

All of which strongly suggests that music publishers will be forced to make their point on their own — without the air support of their corporate parents.

Kyncl and the other major label CEOs may nudge the process and bring the warring parties toward a workable resolution. But it won’t be at the expense of the bigger pie.

Spotify’s bundles-of-joy are now wreaking havoc on royalty statements (Photo: Katrin Bolovtsova)

Spotify’s hard shift toward bundling and its associated loopholes have officially started hitting publisher royalty statements, according to documents shared with Digital Music News this week. So far, it looks like Spotify has taken an extreme turn toward cut-rate bundling recategorizations—here’s a look at the preliminary statements.

Last week, Digital Music News calculated that Spotify accounts for an impressive 42% of all mechanical royalties paid in the U.S., based on a tranche of confidential royalty statements from February of 2024. Now, it looks like that percentage is going to drop significantly, thanks to an extreme shift towards bundling that is now impacting music publisher bank accounts.

And make no mistake—this is now impacting music publisher wallets in a serious way. Earlier, sources to Digital Music News noted that Spotify’s ‘bundle-apocalypse’ was slated to start during the March reporting month. Now, roughly 45 days after the close of that reporting period, those tips have proven accurate, with dramatic shifts towards bundled subscription packages appearing in preliminary statements shared with Digital Music News by a major music publisher.

This means that despite a contentious lawsuit filed by the MLC and multiple regulatory complaints lodged by the National Music Publishers’ Association (NMPA), Spotify is pushing full steam ahead with its aggressive bundling shift—with fairly drastic conversions and royalty drops officially in motion.

Spotify definitely isn’t tapping the brakes on this one—separate sources have relayed that the streaming platform is fully prepared to battle with music publishers and regulators to sustain their bundling recategorizations. But what’s the damage in hard numbers?

Before we dive into the hard data, our sources noted that royalty figures are still preliminary and not final. So stay tuned for more detailed analyses and number-crunching on these declines. But after a preliminary review of several statements, DMN can report that there’s clearly a major cliff ahead for publishing payouts—with an enormous percentage of subscription accounts bundled in one form or another.

For now, Digital Music News can confirm that nearly 97% of Spotify subscription accounts are now categorized as bundles in the United States, with associated per-stream mechanical royalty drops.

That includes a shift of nearly 100% of all Family and Duo plans, with a substantial chunk of the all-important Individual subscriber plans also transitioning.

Digging a bit deeper into the Individual subscriber shifts: for the March reporting period, Spotify has transitioned slightly more than 20 million Individual subscriber accounts into bundled plans. During the February statement, the last non-bundled period, total Individual subscriptions topped 20.16 million in the United States.

Spotify Stands to Gain at Least Half-a-Billion a Year From Its Latest Price Increases In the U.S. Alone. Music Publishers Won’t Be Seeing Much of That.

Interestingly, Spotify is still counting another 869,912 Individual accounts as non-bundled in their March tallies. These subscribers may have jumped on an opportunity to forego the audiobook bundle and revert to the $10.99 price point – though, in full disclosure, we’re not entirely clear how that process worked.

Looking ahead, sources have noted that Spotify is expected to release a music-only option in the United States, with subscribers potentially having the option to downgrade into a non-audiobook, music-only option for $1 less a month.

As we reported earlier, certain U.K. subscribers evidently have the option to pay £10.99 per month (not £11.99) for the solo plan by giving up audiobooks, with a stateside rollout potentially next.

Spotify identified 4.17 million audiobook-bundled Duo accounts in March, up from 3.86 million in February. Audiobook-bundled Family accounts, for their part, numbered 5.65 million in March, up from 5.27 million in February.

Notably, following the March transition, virtually zero non-bundled Duo or Family plans now exist. The tiny numbers of non-bundled Duo and Family plans may simply be reporting errors.

In terms of what this means for publishing payouts, it now appears that the damage may be greater than anticipated. Earlier, the music industry pegged the bundling royalty decline at $150 million annually. However, based on preliminary royalty drops reviewed this week, DMN’s back-of-the-envelope calculations now peg that figure well past $160 million.

Meanwhile, NMPA chief David Israelite has been highly vocal about the issue, describing the bundling shift as a “war on songwriters.”

During the NMPA’s recent annual meeting, Israelite promised an “all-encompassing” response to what he sees as Spotify’s aggressive bundling strategy. This response includes a lawsuit filed by the Mechanical Licensing Collective (MLC) challenging the bundling reclassifications and seeking unpaid royalties.

The NMPA has also lodged a complaint with the FTC and various state attorneys general to investigate Spotify’s alleged “unfair and deceptive practices.”

Israelite noted that the organization would continue to advocate for federal legislation to allow direct publisher negotiations with digital service providers (DSPs). During the meeting, he also pointed to an MLC audit of Spotify to uncover any discrepancies in royalty payments, as well as licensing disputes related to videos, lyrics, music in podcasts, and other unauthorized uses.

Spotify has publicly defended its actions, stating that its approach to bundling and pricing is industry standard. The company emphasizes that it notifies users in advance of any price increases and offers multiple plan options.

Sources to DMN have also indicated that Spotify plans to battle the NMPA on all fronts and remains confident that they will prevail in various legal and legislative disputes. Amicable agreements are always possible, but we’re not hearing about any conciliatory chats at the moment.

Separately, Spotify has raised its prices in the United States yet again.

According to DMN Pro calculations, that will generate at least half-a-billion more dollars annually for the platform. But thanks to bundling shifts, music publishers will see little of those gains.

More as this develops.

Image adapted from an illustration by CDD20.

Last week, the music industry learned that Spotify accounts for 42% of all mechanical royalty payments in the US — following Digital Music News’ exhaustive breakdown of one of the most recent reporting months. That market-leading percentage is now likely to take a severe hit — but how low will Spotify go?

Spotify’s ‘bundle-pocalyse’ is nigh, with nervous IP owners pouring through early royalty statements to assess the damage.

One source to Digital Music News noted that the Mechanical Licensing Collective (MLC) has already distributed preliminary reports for March, the month that marks the beginning of Spotify’s massive royalty cuts to music publishers, songwriters, and other compositional IP owners. Apparently, the data isn’t fully baked yet, though rights owners are getting a preview of the carnage.

Spotify’s sudden and massive shift towards bundled offerings—a move that dramatically lowers its publishing payment obligations—is officially barreling forward. DMN understands that MLC’s March statements are now in the final stages of being tallied and distributed.

A working estimate of a $150 million annual drop has been widely bandied about, though let’s see how that ballpark figure holds up. DMN is currently working to obtain preliminary data, with some serious number-crunching on tap for the remainder of this week.

Depending on the exact nature of the drop, it’s possible that Apple Music could surpass Spotify in total mechanical royalty payments. Apple Music is now slightly ahead of Spotify in the all-important individual subscription tally in the US, according to eyebrow-raising market share data exclusively revealed by DMN.

And what about the MLC’s legal battle with Spotify?

The MLC, which oversees mechanical licensing payouts in the US, is now locked in a legal battle with Spotify over allegations that the platform’s bundling reclassifications are illegal. But barring an injunction or sudden shift in that litigation, Spotify will now be doling out its discounted royalties to less-than-thrilled publishers and songwriters.

As first reported by DMN, a federal judge recently granted Spotify’s request to delay its response to the MLC litigation. Judge Analisa Torres signed off on the request, thereby moving the deadline for Spotify’s response from June 10th to July 19th.

Which means Spotify’s attorneys cleverly bought some time while the royalty-chopping carnage gets underway. And the clock is ticking: based on the $150-million-per-year estimate, that comes out to $12.5 million monthly – or north of $20 million between now and the new response deadline.

Meanwhile, there’s little indication that Spotify execs are losing sleep over this.

Music publishers and songwriters are understandably agitated, though Spotify appears less concerned about the pushback. Instead, Wall Street investors seem to be the more critical audience, with profitability representing the critical benchmark for the stock’s performance.

Speaking of Spotify’s SPOT stock, two top Spotify insiders have already cashed out a cool $90 million in Spotify shares this month alone, which ironically represents nearly two-thirds of the estimated annual royalty drop for music publishers. The cash-outs suggest that insiders are hardly fretting about publishing haircuts, with cost-cutting measures like the reduction in Spotify royalty payments handsomely boosting SPOT shares and resulting payouts.

Separately, appeals to ethical considerations seem to be blowing in the wind.

Just recently, a former Spotify executive criticized the company for its move, though Spotify itself seems unswayed. Former Global Head of Publisher Licensing Adam Parness called Spotify’s decision to switch its subscriptions to bundles “misguided and unfair,” describing it as an “ill-informed attempt to deprive songwriters and music publishers of their rightfully earned U.S. mechanical royalties.”

Parness said he framed his critique not as a way to disparage Spotify but as an appeal to the company to honor the spirit of its agreements. A strong appeal indeed, though perhaps that messsage-in-a-bottle didn’t quite make it to Daniel Ek’s superyacht.

Meanwhile, the National Music Publishers’ Association (NMPA) has been pushing for a hybridized direct and compulsory licensing framework for mechanical royalty payments in the United States.

However, we’ve heard little movement on this front, though Israelite is a notorious 3D chess master when it comes to pulling levers on Capitol Hill.

The NMPA has called on Congress to allow direct negotiations between music publishers and streaming platforms alongside existing statutory mechanical rate payouts. This shift would maximize negotiating power and payouts for publishers but faces significant legislative hurdles.

More as this develops.

Play MPE’s MTR dashboard (Photo Credit: Play MPE)

Given the endless industry coverage of all things streaming and UGC — thanks, DMN — you’d be forgiven for forgetting that broadcast radio remains a powerful platform.

But despite the meteoric surge of streaming platforms and social media, good ol’ radio remains a critical component of music marketing plans — with the power to blow up artists lucky enough to get airtime.

As will.i.am noted during Digital Music News’ recent Pro event, radio is “one of the most important conduits for the world of music” and serves as “America’s stage,” especially for artists in their breakout phase. Beyond that, the format offers a unique connection to communities that streaming services can’t replicate, particularly for stations that complement music with morning shows, celebrity DJs, and local concerts and events.

With that in mind, Vancouver-based music tech company Play MPE is launching MTR, a comprehensive radio tracking tool, in the US. Initially beta-trialed in Canada, MTR now monitors over 5,000 radio stations across North America. For Play MPE, the launch marks a significant expansion designed to complement a suite of tools serving artists and music industry professionals. Just recently, Play MPE partnered with DMN to broaden awareness of the launch.

Play MPE execs exclusively shared a number of components powering MTR with Digital Music News. 

Beyond the 5,000+ station spread, Play MPE emphasized a user-friendly interface, detailed analytics and reporting, and overall affordability. Let’s break down some of these components.

At its core, MTR provides real-time data on when and where songs are getting airplay. That’s the simple, core functionality. Complementing that is an interface stuffed with data, including a top-level song performance overview detailing spins by radio stations, cities, and dayparts. Artists and labels can also easily compare tracking periods by day, week, or month.

On the reporting side, data reports can be sliced by several metrics, including timeframes and geographic regions. Importantly, artists and labels can pinpoint exactly where a song is gaining traction and monitor broader reactions in real-time. This ability to track plays and engagement as they happen can be invaluable for optimizing promotional strategies and release rollouts.

This isn’t the first radio-monitoring platform to hit America, though Play MPE stressed that MTR offers accessible pricing plans that cater to a wide range of artists and labels. Pricing is affordable for most budgets (see current pricing tiers here), and Play MPE is planning to seriously undercut competitive platforms and dramatically expand accessibility as a result.  The company also noted that new stations are constantly being added, which will also impact the pricing tiers and options ahead.

Play MPE is a global promotional and tastemaker with capabilities that go far beyond radio monitoring.

The company operates in over 100 countries and oversees a massive promotional network worldwide. In that context, the company aims to integrate MTR as part of a critical promotional package for major record labels, promoters, and artists, with radio programmers and professional curators across six continents on the receiving end of this platform.

Distilling down the company’s expanded business model, Play MPE now revolves around three primary offerings:

• Caster: For music promotion distribution.
• Player: For music discovery.
• MTR: For radio tracking.

According to the company, thousands of independent artists, promoters, and record labels use Caster to distribute releases to radio, media outlets, music supervisors, and curators. Releases sent through Caster appear in Player, a secure music library employed by radio programmers for its comprehensive collection of broadcast-ready music files and essential metadata.

Play MPE told DMN that their platform is what professionals use when they grow out of using platforms like Dropbox or SoundCloud. The company’s major label-level asset vetting, delivery pipeline, and metadata management ensure that even indie artists can compete on the same level as top-tier acts. Basically, this is what professional programmers and radio stations use instead of links or random emails.

In that light, the combination of MTR and Caster provides a full spectrum of data and insights, from initial promotional engagement to real-time radio play monitoring. According to Play MPE, this enables artists and labels to target interested tastemakers effectively and adjust their strategies based on concrete data.

“At Play MPE, we are committed to empowering artists and industry professionals with the tools they need to succeed,” said Rocio Fernandez, Director of Product Development at Play MPE. “With MTR, we’re breaking down barriers and increasing access to crucial airplay data, enabling our clients to make informed decisions and maximize their impact in the market.”

In terms of clientele, Play MPE is going wide and pushing a serious democratization of the music industry.

The company said its platform is designed to be accessible to everyone, from major labels to independent artists and everything in between. You can feel that energy when speaking with this team. The democratization of professional-grade promotional and tracking tools is a big part of Play MPE’s mission to open as many music industry doors as possible.

En Vogue (Photo: HITKOR)

HITKOR is all about the fan experience — with an important twist. The company delivers high-end live-streaming capabilities from a well-appointed studio to artists, labels, and a global customer base. At its core, the platform revolves around a professional sound stage and a range of recording services and monetization options, all of which are now available to the music industry. “This is for you to reach your fans in a meaningful manner and present yourself in a groundbreaking way,” HITKOR says.

Russ Miller, CEO of HITKOR, clarifies that they’re not in the business of being a publishing or content marketing company — and aren’t trying to be. “HITKOR’s business model is about a premium live-streaming entertainment experience,” Miller shared, relaying that HITKOR even allows fans to switch through different cameras and audio streams.

Alongside a global reach, the company introduces unique revenue pathways for artists, an elevated experience for their fans, and assets such as ‘a world-class Live crew specializing in music performances and high-definition isolated audio recording.’ Just recently, HITKOR joined forces with DMN to broaden awareness of their model.

Most significantly, artists retain their audio IP and the ability to collaborate with HITKOR to produce a unique and exclusive event. According to Miller, the expanded live experience is about a ‘boutique, high-level global offering that other players aren’t bringing.’ With its premium infrastructure, Miller believes HITKOR can provide these elevated offerings to every artist while maintaining a very green footprint — by dramatically reducing the resources consumed by conventional global touring.

Miller says HITKOR’s hybrid entertainment — for fans and artists — is the way of the future, adding, “HITKOR does not aim to replace live entertainment. Its purpose is to augment.”

Miller offers a perspective you won’t find from a typical tech CEO. He’s a working musician and session drummer who has toured for many years with the likes of Andrea Bocelli and the Psychedelic Furs. Part working musician and part business owner, Miller knows the many nuts and bolts required to create a powerful live performance.

Accordingly, HITKOR’s inspiration stemmed from his passion for equipping artists with the tools they need to present fans with a quality stream of their performances.

HITKOR set for Stephen Glickman (Photo: HITKOR)

With that goal in mind, HITKOR allows fans to switch cameras in real time, enabling them to stream just like ISO cams and hear the performance in immersive audio.

The platform also provides artists and creators accessibility to fans in far-off, expensive-to-tour territories.

“There are a ton of young rock bands with followings in certain places like Australia and Asia — but they need hundreds of thousands of dollars in travel and production to reach those fans. The math of touring and putting hefty resources into reaching that audience doesn’t work,” Miller explains, adding that these territories with bubbling fan bases are a significant opportunity for artists, but unlike ‘top tier artists whose touring companies can afford it or get corporate sponsorships’ to reach them, indie players do not enjoy the same luxuries.

So how does an artist reach hard-to-access fans and offer them the experience they deserve — without the incredible amount of resources that touring demands?

Artists can pursue the traditional model of producing a show — renting a venue and getting a whole crew to capture and edit the piece. Or, artists can let HITKOR curate a premium experience for their fans — from start to finish.

According to Miller, HITKOR is an all-in-one solution for artists who need access to lucrative and expansive label resources. “We can work with artists who play theater-sized events, performing arts centers, etc. There’s a lot of opportunity on both sides — if the industry understands what we do.”

It’s an accessibility thing, explains Miller — another way to cultivate an audience and attain a wider reach. “We have a very indie approach to what we’re doing, but we’re doing it at a premium level.”

HITKOR’s facility in Simi Valley holds a ‘world-class’ sound stage and recording studio ‘with the latest and greatest Pro Tools HDX systems — where artists can do overdubs, remix, and do anything they want.’

For HITKOR’s one-of-a-kind offering, artists ‘don’t pay anything.’ Miller explains, “We pay. We’re not asking you for money or full licensing. It’s your music.”

Artists also gain a full guarantee as though they’re doing a live show. But unlike a traditional venue, artists receive a 50/50 revenue split.

In return, HITKOR — without getting into the weeds of the agreements — receives a sync license to the audio and video recording that covers a one-year monetization deal on the HITKOR platform. After the contract expires, the artist can renegotiate terms to extend the monetization. Throughout it all, HITKOR owns the rights to the video, which the company can only use in collaboration with the artist. And the artist or label always retains ownership of the audio.

“It’s an artist-centric deal,” says Miller, explaining that with a HITKOR tie-up, artists will own ‘a world-class multi-track recording of their gig, which they can re-release.’

As for record labels, Miller emphasizes that it’s an ‘excellent opportunity for an artist with a record coming out to do an online global record release party.’

In that scenario, the label would cover the artist’s cost, HITKOR would cover the production cost, and ‘everybody wins.’

Mitch Rossell (Photo: HITKOR)

Unfortunately, live performance fans are all-too-familiar with the shortage of good, highly accessible, well-organized live concert footage. For HITKOR, it all comes down to an optimized fan experience, and they’re betting on their high-end hybrid offer to deliver that at scale.

“It’s a challenging time for artists to figure out how they’re going to present themselves, in which way, and how they can make a living doing it — especially if they’re not huge artists,” Miller says.

As the economy introduces many novel challenges to the live concert industry, some artists have witnessed record success, while many middle-tier artists and performers have fallen by the wayside. Without a mammoth label or touring company resources behind them or enormous audience guarantees, these artists cannot afford to tour and reach their fan base — let alone cultivate a new one.

And these economic challenges also crush viewers. With astronomical ticket pricing and other ancillary costs such as gas and parking, even the most devoted fans can now only commit to a fraction of the shows they may be interested in attending.

HITKOR believes there’s now a significant gap to bridge and an opportunity to provide fans access to unique content — that doesn’t cost them an arm and a leg.

In the face of rampant inflation and rapidly depleting spending power, HITKOR’s ‘hybrid solution’ is built to cater to evolving audiences. The company believes fans will soon become highly frugal — prioritizing live performances and festivals that they cannot bear to miss, and switching to watching other shows at home.

By design, HITKOR wants to cast a pretty wide net and is working to build a little bit of everything for viewers, with VOD a big part of the company’s model.

“Audiences can watch a live show on HITKOR for a year after purchasing a ticket, with all the options to view it again in HITKOR’s unique ways. We’re adding VR 360 cams to the mix — where the fans join the artist on a virtual stage,” says Miller, adding, “All of the features exist in Encore VOD, even merchandising sales. Selling merch at shows the artist has already performed also presents a new source of revenue.”

Currently, HITKOR is selling everything a la carte and pay-per-view.

With a HITKOR tie-up, artists can cash in on several other potential upsides, including HITKOR’s lesser-known merch manufacturing company, Bold Hits, LLC in Chatsworth, CA. The in-house facility allows artists to create, produce, and sell exclusive merchandise in perpetuity — another cash flow option that comes with HITKOR’s boutique live stream model.

“To fully optimize the monetary benefits, artists need to help promote the HITKOR stream as though it’s a live show, which requires them to maximize their fanbase to sell tickets.”

Miller emphasizes that HITKOR’s offering is not a one-off opportunity for artists to grab and go. With global live streaming and a pay-per-view scenario for tickets and merch, HITKOR sells access  to the ‘event.’ At their end, artists can leverage their reach to ensure they don’t just have a show — ‘they have a floor-to-ceiling event experience for optimal commerce, the best artistic presentation, and a world-class show for all of their fans.’

Is Spotify as dominant as we think? (Photo by Qimono, modified by DMN)

According to recent data verified by Digital Music News, Spotify now has more than 50 million paying subscribers in the US. But Apple Music is bigger in the most lucrative subscriber category.

In seemingly every music industry discussion, Spotify is regarded as the dominant giant in the streaming music space. But just how dominant is Spotify when compared to rivals like Apple Music, Amazon Music, and YouTube Music, particularly in the US?

According to a tranche of royalty data shared by a major publisher and verified by Digital Music News, this game is more competitive than we previously thought.

Per the data — specifically for February of this year — Spotify has more paying subscribers overall than Apple Music when all plan packages (individual, family, student, and others) are considered and weighted. But when it comes to the most valuable package — the individual subscriber plan — Apple Music is beating Spotify in the United States.

The revelation could be critical given the contentious battle that has now emerged between Spotify and the music publishing industry. Let’s break these numbers down.

At a top level, Spotify’s overall subscriber total in the United States is more than 50 million, which easily beats Apple Music’s tally of nearly 42 million*. That is a lead of more than 20%, though Spotify is getting edged out by Apple in the lucrative ‘Individual Subscriber’ category.

(Update: in our original post, we mistakenly tallied Apple Music’s approximate US-based subscriber total at 34 million; the actual weighted figure is 41.7 million).

In this important category, Spotify counts a less impressive 20.2 million subscribers compared to Apple Music’s 20.8 million.

Of Apple Music’s total, 19.1 million are conventional individual subscriptions, with approximately 1.73 million coming from packaged Apple One subscriptions that include Apple Music, Apple TV, Apple Arcade, and iCloud for a discounted price.

Spotify’s 50+ million total is buoyed by Family, Duo, and Student plans, which carry certain multipliers or discounts for royalty-calculation purposes as determined by the MLC and publishers for royalty calculation purposes (for example, family plans receive a 1.75x multiplier applied by certain publishers, while Student plans have a 0.5x multiplier applied).

Just recently, National Music Publishers’ Association (NMPA) president David Israelite pointed to Spotify’s ‘nearly 50 million subscribers,’ while data supplied to DMN — with appropriate multipliers — put Spotify’s subscription total at slightly greater than 50 million.

Importantly, the royalty multipliers shared with DMN differ from the methodology applied by Spotify itself. According to Spotify’s financial disclosures, subscribers are predictably counted as ‘1’ on individual subscriber and student plans. For Family and Duo plans, the number is determined by the actual number of family members or friends that join the account (for example, if only two additional family members join a plan that accommodates 6, then the total number of subscribers reported by Spotify is 3).

So, what does this mean for Spotify’s market share?

That’s a critically important question in the context of a heated legal battle erupting between Spotify and the music publishing industry. In its recent lawsuit against Spotify, the MLC pegged total damages from Spotify’s bundled music plans—and the royalty discounts that come with them—at approximately $150 million annually. However, that figure may assume a more dominant market share position.

Last year, the NMPA tallied 44.4 million Spotify subscribers in the US, compared to 32.6 million for Apple Music. The figures pegged Spotify with an approximate US-based market share of 38% amongst rival DSPs, at least using the competitive platforms presented in the member meeting.

On that note, we’re still collecting more detailed 2024 data on subscriber counts for other streaming platforms like Amazon Music. So stay tuned for more updated market share estimates.

Overall, Spotify counts 239 million paying subscribers worldwide, across all tiers, per the company’s most recent quarterly earnings call.

This isn’t the first time that Apple Music has seriously challenged Spotify in the US.

In 2018, Digital Music News first reported that Apple Music had surpassed Spotify’s total subscribers in the United States. That followed an earlier report in the Wall Street Journal that pointed to a faster rate of subscriber growth at Apple Music. Since that point, the platforms have remained extremely competitive, with Spotify also battling Apple on antitrust grounds in the US and Europe.

Apple doesn’t release music-specific subscriber data, and Spotify doesn’t break down US-specific (or any country-specific) subscriber information. Neither company agreed to share US-specific subscriber data for this article.

Where will Spotify’s bundling adventure take us next?

On Tuesday, NMPA president David Israelite advanced a different licensing schema to members of Congress that would change the game for music publishers — and complicate the game for everyone else.

Just moments after the Mechanical Licensing Collective (MLC) filed suit against Spotify, the National Music Publishers’ Association (NMPA) dropped another bomb. In a letter floated on Tuesday (May 21st) by NMPA chief David Israelite to members of Congress (see the full text here), a brand-new licensing schema was advanced.

Under the proposed update, the MLC and statutory mechanical licensing would remain, but music publishers would also have the freedom to negotiate their rates directly with streaming platforms like Spotify.

This is the type of change that music publishers have always wanted. However, Israelite was clearly motivated by Spotify’s sneaky shift into bundling and the statutory licensing discounts that come with it.

“The continued abuse of the statutory system by digital services, most recently Spotify, has made clear that additional action by Congress is needed,” Israelite wrote while pointing to routine, fraught renegotiations before the US Copyright Office’s Copyright Royalty Board (CRB).

“In these proceedings, music publishers and songwriters must face off against some of the biggest tech companies in the world: Spotify, Apple, Amazon, Google, among others, to establish rates for the use of musical works.”

But what if music publishers could call the shots with direct licensing negotiations, just like record labels? “Rather than picking who wins and who loses, Congress should allow rights holders the choice to license through the MLC using the statutorily set royalty rates or to withdraw from the MLC and operate in a free market if they meet certain conditions,” the proposal continues.

All of which sounds like a fantastic change for music publishers and a long-overdue shift — though for obvious reasons, Spotify would rue the day that publishing direct-licensing arrived.

There are many details that need to be clarified. But under the new plan, if a publisher or songwriter decides they’d like a higher rate than what is currently offered under statutory rates, they simply withdraw their catalog and demand more. Spotify (and other streaming platforms) must then negotiate or risk losing the song entirely.

That’s great for publishers and a worthwhile shift toward normalizing music licensing. But for Spotify, there’s plenty to hate here. For starters, licensing costs for publishing IP would quickly increase, and recording owners might not budge. The result is that songs would become more expensive to license, which is bad news for Spotify’s profitability ambitions.

Wall Street, now firmly focused on profitability instead of growth and pushing Spotify in this direction, would also seriously dislike this change given that Spotify’s core asset — the music — could become significantly more expensive. Those riding the wave on Spotify’s stock (SPOT) might decide it’s an opportune time to sell.

But beyond the direct content costs, there would be serious administrative and logistical issues to weather. Instead of sending data to the MLC and writing a fat check, Spotify would suddenly have to manage millions of individual negotiations with songwriters and publishers that want more money.

Nearly every IP owner behind a song with significant plays will likely demand more cash. And this isn’t something you can staff up against. Instead, Spotify would have to retool its entire licensing framework to manage millions of micro-negotiations at scale.

That’s not to say this isn’t the right answer and a step in the right direction. But it’s not a step that Spotify ever wants to take.

And make no mistake, there will be prices Spotify won’t pay, which means more grayed-out content and more dissatisfied customers. Though the exact details haven’t been hashed out, it’s possible that a single songwriter could remove a popular track from Spotify at any time, simply because they want a higher rate that Spotify doesn’t want to pay.

Which brings us to the next loser in this scenario: the labels.

It’s not that recording owners aren’t winning in this equation. They enjoy unfettered, direct negotiations with platforms like Spotify and receive far more than their music publishing counterparts. Theoretically, publishers should enjoy the same freedoms, though that doesn’t mean recording owners want to hand over a slice of their (far more significant) pie.

There’s a reason major label bigwigs haven’t been rallying to the defense of music publishers. Any substantive gains by music publishers probably translate into less money for recordings. Beyond that, a shift towards publisher direct licensing also means more disruption to the smoothly running, streaming gravy train.

Suddenly, publishers and songwriters can yank their content if they’re unhappy. At any moment, Spotify and other streaming platforms can get dinged by serious content holes and spotty selections.

Right now, Spotify has everything listeners want — except for the now-rare holdout like Garth Brooks. But what if users were routinely hitting unplayable potholes? None of that is good news for the billion-dollar streaming music pipeline that is now express-pumping cash into every major label coffer.

That might explain why major label CEOs like Universal Music Group’s Lucian Grainge haven’t been vocal on Spotify’s bundling fiasco. And why they’ll likely remain disinterested in a direct-licensing future for music publishers.

For major recording owners like UMG, this boat is best left un-rocked.

Books & Music: So simple, yet so complicated (photo: Andrea Piacquadio)

Late yesterday, Digital Music News first reported on the Mechanical Licensing Collective’s lawsuit against Spotify over allegedly underpaid publishing royalties. Now, Spotify is pushing back and seriously questioning the merits of the MLC’s claims. Here’s what they relayed to DMN early this morning.

Spotify is now responding to an aggressive lawsuit filed by the Mechanical Licensing Collective (MLC), and it looks like we may have a fight on our hands. Late yesterday, the MLC filed its complaint against Spotify USA in the United States District Court for the Southern District of New York (here’s the complete 23-page filing). In summary, the MLC alleges that the streaming music platform is illegally undercutting its royalty obligations by bundling its various music, audiobook, and podcast offerings.

Not so fast, Spotify says. In comments issued to Digital Music News this morning, the DSP asserts that everything is above board, fair and square, and by the book. Specifically, Spotify notes that bundling discounts were baked into the most recent royalty agreement approved by the Copyright Royalty Board — dubbed ‘Phonorecords IV’ — and publishers are refusing to follow their own terms.

“The [MLC] lawsuit concerns terms that publishers and streaming services agreed to and celebrated years ago under the Phono IV agreement,” Spotify told DMN, while linking to a ‘celebratory’ announcement issued at the time by the National Music Publishers’ Assocation (NMPA).

Everyone signed off on Phonorecords IV and popped the champagne afterward, Spotify says, with bundling terms clearly agreed upon. “Bundles were a critical component of that settlement, and multiple DSPs include bundles as part of their mix of subscription offerings,” the streaming platform continued.

It’s worth noting that other streaming music platforms also bundle, with Apple and Amazon both masters of high-priced bundled offerings that span media, e-commerce, and other perks. Exactly how those platforms employ bundling to their advantage on the royalty front is unclear at this stage, though more details could surface if a court battle ensues.

Further flexing its clout — and this could come into play later — Spotify also pointed to its massive royalty contributions to the music industry overall.

“Spotify paid a record amount to publishers and societies in 2023 and is on track to pay out an even larger amount in 2024,” the Spotify executive continued.

That comment was carefully calculated and part of an interesting power dynamic between the platform, the music industry, and music publishers. So far, the recording side of the business has been quiet on the bundling royalty question, with major label toppers like Lucian Grainge (UMG) and Robert Kyncl (WMG) mostly praising Spotify’s bundling strategies. Part of the reason is that Spotify is more intelligently pushing price increases by diversifying its product mix, a strategy likely to spill even more revenues into major label coffers.

DMN Pro Weekly Report: As Spotify Embraces Bundles, Mechanical Royalties Take a Hit — But Are We Missing the Big Picture Here?

Despite lingering fears of a streaming subscription plateau, major labels are still posting double-digit quarterly revenue gains, with paid subscriptions a big reason for the uptick. That might explain why publishers are fighting this battle alone, even though major publishers are often subsidiaries of major label conglomerates.

Back to the MLC situation, Spotify hesitated to spell out its next moves.

That could include a combative legal response, though some negotiations may be in order first. “We look forward to a swift resolution of this matter,” the company offered.

As for the allegations, the MLC alleges that Spotify has sneakily classified its Premium Individual, Duo, and Family plans as bundled subscriptions by including audiobook access. This classification allegedly reduces the reported service provider revenue for music, leading to lower royalty payments.

The MLC argues that Spotify’s bundling approach does not comply with applicable laws and regulations—though Spotify begs to differ on that point. The lawsuit seeks corrected reporting and unpaid royalties from March 2024 onwards, along with future compliance.

The MLC, created by unanimous Congressional mandate in 2018 and designated by the Register of Copyrights, is tasked with collecting and distributing blanket mechanical license royalties and enforcing payment obligations. Since its inception in January 2021, the MLC says it has distributed over $2 billion to songwriters and music publishers.

More as this develops.

Music publishing heavyweight Sony Music Publishing is now threatening action against Spotify over its less-than-welcomed royalty reductions.

Spotify has just poked another giant bear following its transition to bundled subscription packages—and the conveniently lower publishing royalty payouts that come with them. According to internal communications leaked to Digital Music News early Friday (May 17th), Sony Music Publishing chief Jon Platt isn’t in a rosy mood following Spotify’s maneuvers and may take action.

As if a lawsuit from the Mechanical Licensing Collective (MLC) and a cease-and-desist from the National Music Publishers’ Association isn’t enough, Platt is now promising to put all options on the table.

Platt succinctly outlined the issue and possible next steps in a letter sent to member songwriters and composers earlier today. “We are working with the National Music Publishers’ Association (NMPA) and considering all options to enforce the improved rates that were achieved in CRB Phono IV,” Platt relayed.

“In addition, earlier this week, the NMPA sent a letter to Spotify putting them on notice that there are unlicensed videos, lyrics, and podcasts on its service, an important step to ensure that songwriters are being paid properly across all aspects of Spotify’s platform.”

Earlier this morning, Spotify told DMN that it strongly disagrees with the MLC lawsuit. The platform pointed to its recently signed ‘Phonorecords IV’ agreement governing mechanical publishing payouts, which includes stipulations related to bundling.

“The [MLC] lawsuit concerns terms that publishers and streaming services agreed to and celebrated years ago under the Phono IV agreement,” Spotify emailed DMN while linking to a ‘celebratory’ announcement issued at the time by the National Music Publishers’ Association (NMPA).

Platt and Sony Music Publishing see matters differently. “We do not agree with Spotify’s position,” Platt noted. “While the CRB rate structure allows for a discounted bundle rate in certain circumstances, we do not believe this offering falls within the parameters that were agreed in the last CRB proceeding.”

Separately, music industry chatter is now focused on whether a ‘nuclear option’ could be next.

But unlike Lucian Grainge’s gutsy TikTok pullout, music publishers may be unable to pull their content unilaterally. For starters, Spotify and the Mechanical Licensing Collective (MLC) are now locked in a legal battle, with a court adjudicating whether laws and contacts are being broken. It’s quite feasible that Spotify prevails, which means that publishers won’t have the ability to remove content under statutory and compulsory licensing rules.

Beyond mechanical royalties, however, there’s also the matter of music inclusion within podcasts and videos. The NMPA has put Spotify on notice for its use of music within podcasts as well as its placement of lyrics within videos. Those fall outside of statutory law and require direct handshakes and authorizations to prevent direct infringement.

Here’s the full letter sent by Platt just hours ago.

Dear Songwriters and Composers,

I’m writing to share an important update regarding the mechanical royalties that Spotify pays you in the United States. 

Until recently, Spotify has been paying songwriters at the improved headline rate that was agreed upon in the last U.S. Copyright Royalty Board (CRB Phono IV) proceeding in 2022.

Late last year, Spotify added an audiobook offering to its premium subscription tier in the U.S. and across several other markets.  Spotify then unilaterally reclassified their subscription product as a bundle.  They claim this enables them to pay a reduced mechanical royalty rate. In effect, Spotify is taking the position that all U.S. subscribers are part of a bundle without choosing the bundle option.
 
Beginning with their March 2024 accountings, Spotify began to pay at the discounted rate that they claim they are entitled. This has the effect of reducing mechanical royalty payments to songwriters by approximately 20%. The reduction does not currently impact royalties outside of the U.S.

We do not agree with Spotify’s position.  While the CRB rate structure allows for a discounted bundle rate in certain circumstances, we do not believe this offering falls within the parameters that were agreed in the last CRB proceeding.

Yesterday, the Mechanical Licensing Collective (MLC) filed a lawsuit in Federal Court in New York City challenging Spotify’s actions.

We are working with the National Music Publishers’ Association (NMPA) and considering all options to enforce the improved rates that were achieved in CRB Phono IV. In addition, earlier this week the NMPA sent a letter to Spotify putting them on notice that there are unlicensed videos, lyrics and podcasts on its service, an important step to ensure that songwriters are being paid properly across all aspects of Spotify’s platform.

I will continue to reach out directly with important updates as they come.

Jon Platt

Chairman & CEO, Sony Music Publishing

Photo Credit: Hipgnosis Songs Fund

Apollo-backed Concord says it will not be increasing its Hipgnosis bid higher than $1.25 per share, a statement that gives Blackstone the higher offer and a path towards acquisition.

Concord will not be upping its offer for Hipgnosis Songs Fund (HSF), according a statement issued to Digital Music News late Wednesday (May 8th). In an emerging bidding war involving Blackstone, Concord had recently upped its offer to $1.25 per share, with Blackstone quickly beating the per-share price. Concord’s $1.25-per-share price, however, is’ final and will not be increased,’ according to the company and its operative acquisition entity, Concord Bidco.

“Further to the announcements made by Concord Bidco on 18 April 2024 and 24 April 2024 (the “Announcements”) setting out the terms of its all cash offer for the entire issued, and to be issued, share capital of Hipgnosis, Concord Bidco confirms that its offer of $1.25 per Hipgnosis Share is final and will not be increased,” the statement reads.

Late last month, after Concord put up an improved offer of $1.51 billion for Hipgnosis Songs Fund – and began purchasing shares from investors – Blackstone shot back with a $1.57 billion bid.

Blackstone, which is the majority owner of Hipgnosis Song Management, and HSF formally announced the higher bid on April 28th. Made via Blackstone’s newly formed “Lyra Bidco,” the proposal would pay the publicly traded songs fund’s investors $1.30 per share and was recommended by Hipgnosis Songs Fund to its shareholders.

Blackstone would also assume HSF’s sizable debt facility as part of their offer.

“The Board is pleased to unanimously recommend this US$1.6 billion Offer for Hipgnosis from Blackstone,” HSF chair Robert Naylor said in a statement late last month. “Since we started our strategic review, we have been clearly focused on looking at all the options to deliver shareholder value. We are delighted that, following competitive interests in acquiring Hipgnosis, our investors now have a chance to immediately realise their holding at an increased premium.”

Leading up to Concord’s latest announcement, multiple Hipgnosis shareholders have started to divest their shares.

That strongly suggested that the bidding war was coming to a close, though a purchase isn’t a clear next step. As part of a complex ownership arrangement, Hipgnosis Songs Management, or HSM, Hipgnosis Songs Fund’s investment advisor, appears resolutely ready to protect its position amidst the bidding war.

A key issue is a “call option” in the investment advisory agreement between HSM and HSF. This option would allow HSM to acquire HSF’s assets in specific scenarios, potentially hindering a sale to a third party.

As of very early Thursday, May 9th, HSF had not issued a statement on Concord’s decision to stay put.

More as this develops.

Photo Credit: BoliviaInteligente

In a sudden turn of events, Universal Music Group and TikTok have announced a new licensing agreement, signifying a hopeful step forward in the fraught relationship between the music industry giant and the global social media platform. The development closely follows the passage of the ‘TikTok ban bill’ in the United States.

The agreement, announced early this morning from Los Angeles, marks the end of a contentious period while potentially setting the stage for a deal benefiting artists, songwriters, labels, and the billion-plus user community of TikTok. Terms of the updated agreement were not disclosed, though UMG executives had cited problems with overall compensation and AI licensing.

The UMG-TikTok deal comes after a months-long standoff, which also included threats of legal action from UMG against TikTok for alleged DMCA violations, as Digital Music News first reported last month. UMG first began removing its entire catalog from the platform at the end of February, causing howls of protests from TikTokers and artists alike.

Also worth noting: TikTok’s agreement comes just days after President Biden signed into a law that would effectively ban the platform in the United States. TikTok and its parent, ByteDance, have vowed to challenge the law in court, though the serious development may have prompted TikTok to play nicer with the music industry.

Separately, sources to DMN pointed to tens of thousands of DMCA takedown notices being issued by UMG, part of a larger, systemic issue of unauthorized content proliferating on the platform. Those concerns may have been alleviated by the terms of the freshly-inked deal, though more details are undoubtedly forthcoming.

For now, there’s a new era of cooperation between the companies, with UMG artists back on the platform.

Sir Lucian Grainge, Chairman and CEO of Universal Music Group, expressed enthusiasm about the renewed partnership, emphasizing the value of music, the importance of human artistry, and the welfare of the creative community. Grainge highlighted the potential for collaborative innovation in fan engagement and the advancement of social music monetization, promising a brighter future for UMG’s artists and songwriters.

“This new chapter in our relationship with TikTok focuses on the value of music, the primacy of human artistry and the welfare of the creative community,” Grainge stated. “We look forward to collaborating with the team at TikTok to further the interests of our artists and songwriters and drive innovation in fan engagement while advancing social music monetization.”

Shou Chew, CEO of TikTok, echoed these sentiments, reaffirming the platform’s commitment to driving value, discovery, and promotion for UMG’s roster of artists and songwriters. Chew emphasized the integral role of music in the TikTok ecosystem and the company’s dedication to deepening the ability of artists to grow, connect, and engage with the community.

“Music is an integral part of the TikTok ecosystem and we are pleased to have found a path forward with Universal Music Group,” Chew said. “We are committed to working together to drive value, discovery and promotion for all of UMG’s amazing artists and songwriters, and deepen their ability to grow, connect and engage with the TikTok community.”

The agreement promises including improved remuneration for UMG’s songwriters and artists, new promotional and engagement opportunities, and protections regarding the use of generative AI in music creation.

That includes artist-centric tools like “Add to Music App,” which TikTok expanded during the standoff. That helps to shuttle fans towards DSPs like Spotify when songs or artists are trending. But more importantly for TikTok, the UMG deal reopens a critical license for TikTok Music, a new-fangled Spotify competitor that is still in its infancy.

Additionally, DMN understands that UMG will be given enhanced data and analytics on artist activity. Separately, TikTok has also been busy integrating ticketing capabilities, part of a continued expansion into music that could further benefit UMG-inked artists.

Both organizations have also pledged to work together on ensuring AI development in the music industry respects human artistry and contributes positively to the economics that flow to artists and songwriters. Efforts will be made to remove unauthorized AI-generated music from TikTok, alongside introducing measures to improve artist and songwriter attribution.

Ole Obermann, TikTok’s Global Head of Music Business Development, and Michael Nash, Chief Digital Officer and EVP of Universal Music Group, both expressed optimism about the potential of this partnership to foster deeper connections between artists, creators, and fans, and to promote an environment in which artists and songwriters prosper.

“We are delighted to welcome UMG and UMPG back to TikTok,” Obermann said. “We look forward to working together to forge a path that creates deeper connections between artists, creators, and fans. In particular, we will work together to make sure that AI tools are developed responsibly to enable a new era of musical creativity and fan engagement while protecting human creativity.”

“Developing transformational partnerships with important innovators is critical to UMG’s commitment to promoting an environment in which artists and songwriters prosper,” Nash relayed.

“We’re gratified to renew our relationship with TikTok predicated on significant advancements in commercial and marketing opportunities as well as protections provided to our industry-leading roster on their platform. With the constantly evolving ways that social interaction, fan engagement, music discovery and artistic ingenuity converge on TikTok, we see great potential in our collaboration going forward.”

More as this develops.

Photo Credit: Hipgnosis Songs Fund

Let the bidding war commence! After getting one-upped by Blackstone, Concord is now back with a slightly better all-cash bid of $1.51 billion.

Over the weekend, Blackstone bested Concord Chorus’ $1.4 billion all-cash offer for Hipgnosis Songs Fund Limited with a juicier $1.5 billion offer. Now, Concord is quickly responding with a slightly-better, $1.51 billion offer.

The offer, emailed to Digital Music News moments ago, outlined a revised cash offer of $1.25 per share, a 7.8% increase from its original offer. The offer values Hipgnosis at approximately $1.5115 billion, which edges out Blackstone’s weekend offer.

In its offer summary, Concord noted that the revised offer represents a significant premium over Hipgnosis’s recent trading price and its Net Asset Value (NAV). Concord also relayed that the Hipgnosis Board of Directors has unanimously recommended the increased offer to Hipgnosis shareholders.

Specifically, ‘Concord Bidco’ noted that shareholders representing 31.27% of Hipgnosis’s issued shares have already agreed to support the offer. Other shareholders can vote on the deal here.

“We are pleased to announce this increased offer for Hipgnosis, which has again been unanimously recommended by its Board and has the support of shareholders representing 31.27 percent of Hipgnosis’ issued share capital,” relayed Bob Valentine, CEO of Concord.

“We continue to believe that this is the best outcome for Hipgnosis shareholders as it provides them with the opportunity to realize their investment in cash at a significant premium to the price where the shares were trading before our bid last week.”

“The Hipgnosis Directors believe that the Increased Concord Offer is in the best interests of Hipgnosis Shareholders as a whole, and accordingly unanimously recommend that Hipgnosis Shareholders vote in favor of the resolutions required to implement the Increased Concord Offer to be proposed at the Court Meeting and the General Meeting which are due to be held on or around 10 June 2024,” the statement continues.

Concord noted that it would finance the acquisition offer through a combination of debt (provided by Apollo Funds) and its own equity, with Apollo holding a minority position.

Scroll down through the various details of the offer, and you’ll find this: Concord also noted that it plans to continue its previous plans with Hipgnosis as an asset but may sell up to 30% of the assets within 18 to 24 months.

“The Increased Concord Offer does not change Concord Bidco’s intentions as regards Hipgnosis as set out in the Rule 2.7 Announcement, save that Concord Bidco now intends to sell up to 30 percent of Hipgnosis’ assets within 18 to 24 months following completion of the Acquisition,” the offer stated.

The offer shifts the attention back to Blackstone, though Digital Music News is also hearing rumblings of other potential bidders coming forward.  Blackstone already owns parts of Hipgnosis, so a successful bid for Hipgnosis Songs Fund would give them more control over the music rights industry.

Separately, all eyes are now glued to Hipgnosis Songs Management, which is stubbornly sticking to its contractual rights and signaled its willingness to fight. HSM, Hipgnosis Songs Fund’s investment advisor, appears resolutely ready to protect its position amidst the bidding war.

A key issue is a “call option” in the investment advisory agreement between HSM and HSF. This option would allow HSM to acquire HSF’s assets in specific scenarios, potentially hindering a sale to a third party.

HSM insists that the company cannot legally terminate the agreement without honoring HSM’s contractual rights. In a notice issued this week, HSM clearly stated that they are prepared to take legal action and even exercise the call option to protect their interests.

Separately, Blackstone, which owns a majority stake in HSM, emphasized that its offer for HSF is independent of any influence from founder Merck Mercuriadis.

Looking ahead, the ‘HSM factor’ could spark legal battles or drive up the price in an intensified bidding process.

Stay tuned.

A TikTok ban edges closer to reality following Senate and Presidential approvals (photo: Ian Hutchinson).

The music industry is pondering what happens next as the ink dries on President Biden’s authorization of a Congressional bill that includes a TikTok divestiture order. DMN Pro subscribers have already parsed through a detailed breakdown of the potential winners and losers following a TikTok ban, thanks to our exhaustive white paper on the topic.

For those just tuning in: Congress recently passed — and President Biden just signed — a bill that mandates that Chinese parent company ByteDance must sell TikTok within roughly nine months. If that doesn’t happen, the app faces a ban in the United States.

The legislation springs from national security concerns regarding Chinese access to American user data and the potential for propaganda dissemination. Teenage TikTokers aren’t sold on the seriousness of the threat, though their votes only have so much impact here — literally.

The law’s implementation will likely be highly complicated. As the New York Times neatly sums up: “Now the law faces court challenges, a shortage of qualified buyers, and Beijing’s hostility.”

Almost immediately, TikTok will challenge the sale mandate in court, arguing it violates the company’s and its users’ First Amendment rights. Finding a qualified buyer with sufficient funds and government approval also poses challenges, as does the technical difficulty of separating TikTok’s technology from its Chinese parent company.

Furthermore, China’s role is a significant factor. Chinese government officials have opposed a forced sale of TikTok or a resulting TikTok ban. It’s possible China may enact export restrictions that block the sale of core technology like TikTok’s recommendation algorithm or retaliate against American companies as a result of such a sale.

Overall, the coming months (or even years) promise a turbulent period as this sale mandate unfolds. Court battles, the search for a qualified buyer, and potential Chinese interference will heavily influence the ultimate fate of TikTok in the United States.

However, after legal challenges and buyer options are exhausted, TikTok could disappear from the US-based app landscape.

A TikTok ban would be great news for competitors like Meta, YouTube, and Snap, who are expected to receive traffic onslaughts. But the development will prove more complicated for the various sub-sectors of the music industry.

In our latest white paper, DMN Pro takes an exhaustive look at the post-TikTok music industry’s winners and losers, from the major labels to DSPs and artists to UGC competitors. In each case, we also analyze the potential impact over various time horizons — with potentially significant industry changes materializing over the longer term.

DMN Pro subscribers can access the report here and start the ‘what’s next’ strategic planning. If you’re not yet a subscriber, you can become a DMN Pro member here.

Here’s a peek at what’s inside.

REPORT TABLE OF CONTENTS

Introduction: The Post-TikTok Music Landscape Could Give Rise to Unprecedented Changes – With Implications for Fans, Artists, and Companies Alike

Record Labels: Majors and Indies Stand to Lose in Several Areas (and Win in Others) With TikTok’s Ban

• • • • Graph: A Breakdown of Global Recorded Music Revenue from UGC and Ancillary Licensing Sources
      • Graph: 2023 Global Recorded Music Revenue by Segment

Publishers: Short-Term Losses, Particularly for Smaller Indies, Could Make Way for Long-Term Improvements

Songwriters: A Possible Licensing Revenue Upside Won’t Offset Immediate Discovery Setbacks, Especially for DIY Professionals

Artists: Post-TikTok, Artists At All Career Stages Will Suffer Varied Near-Term Professional Consequences

• • • • Graph: Selected Artists’ Social Media Followers, YouTube Subscribers, and Spotify Monthly Listeners
        Superstar and Legendary Artists
      • Mid-Level Artists With Substantial Followings
      • Developing and Emerging Artists
      • Pre-Traction Artists
      • Graph: A 2023 Breakdown of Emerging Artists by Home Country

Competing UGC Platforms: Reels, Shorts, and Others Will Be the Clear Winners

Overall Licensing Revenue: Ancillary Setbacks Aside, TikTok’s Ban Will Have a Minimal Licensing Revenue Impact

• • • • Graph: Universal Music’s Estimated TikTok Revenue Versus Permanent Downloads Revenue, 2020 – 2023

Non-Label Sync Platforms: The Post-TikTok Industry May Look Different for Sync Platforms and Music Libraries

The Fans: More Than a Letdown for Fans, TikTok’s Ban Will Dramatically Affect Music Discovery

DSPs: What Does a TikTok Ban Mean for Spotify, Apple Music, and YouTube Music?

Promoters and Venues: The TikTok Ban’s Significance for Live Music

Report Summary: The Post-TikTok Music Landscape’s Many Changes

By the Dates: A Timeline of TikTok Regulatory Scrutiny, December 2022 – April 2024

One-Sheet Infographic: The Post-TikTok Winners & Losers

Photo Credit: Pixabay

Even the sexiest music industry deals crash into reality when the contracts come out. Flou is determined to simplify the necessary evil.

Unfortunately, music industry contracts and licensing agreements are typically intricate and dense documents fraught with legal terminology, making them difficult to generate and manage. Once filed away, they become challenging to store and retrieve efficiently.

It’s a mess we’ve all experienced, but the confusion often lasts for the life of the deal. Headaches are best enjoyed with a confusing paper trail or contentious disagreement, with piles of legalese and contradictory details adding to the excitement.

Sadly, the cliché that ‘only the lawyers win’ seems to fit more often than not, though one guy is trying to change that.

His name is Alexiomar Rodríguez, and his disruptive vision doesn’t revolve around new-fangled AI or anything tech-sexy. Instead, Rodríguez’s company, Flou, has a simple mission to revolutionize the cumbersome, painful, and inefficient process surrounding music agreements.

“As an attorney myself, I realized that there’s no central software package for all music contracts,” Rodríguez said. Flou just recently joined forces with DMN to further expand awareness of the platform.

In a nutshell, Flou is an all-in-one platform designed to streamline and simplify every aspect of music contract management.

Think of the aspirin required to get through a music contract and multiply it by 10,000. That’s the general idea here.

Flou’s platform manages every micro-step of the music contracting process, starting with the document creation phase. That’s where a range of industry-specific templates come into play, with subsequent collaboration features guiding the reviewing, negotiating, and editing stages with AI assistance.

The platform also includes other steps and details, including e-signature approvals, centralized storage, deliverable tracking, and reminders.

“Flou is not just a software solution; it’s a revolution in music contract management. We’re committed to empowering music companies, artists, and other stakeholders with the legal tools they need to thrive in today’s industry,” Rodríguez continued.

Of course, many different types of music industry contracts and legal agreements exist. Flou aims to address them all, including work-for-hire agreements, production contracts, collaboration agreements, copyright assignments, artistic management and representation agreements, split sheets for dividing royalties, and good, old-fashioned artist-label contracts.

Unfortunately, all of these contracts face similar pitfalls. Traditionally, music contracts have been notoriously time-consuming and expensive to create and manage. Once finalized, these agreements often become buried within filing cabinets or lost in digital voids, posing significant legal risks and liabilities to music companies.

Additionally, the dynamic nature of music contracts, with their deliverable contingencies, critical dates, ongoing rights, and complex royalty payment triggers, further complicates their management. Apart from the initial challenges, music contracts must also account for tracking recoupments and documenting each release properly (including splits and side-artist agreements, among other specifics.)

These ‘living contracts’ demand a meticulous tracking system, which has been sorely lacking until now. By enabling music companies to create, review, approve, sign, store, and track all their contracts in a centralized platform, Flou seeks to bring unparalleled efficiency and clarity to contract management.

There’s also the business of translating legalese for better tracking, accountability, and understanding.

Through the application of AI, Flou translates complex contract obligations into manageable, actionable tasks. This process simplifies legal compliance and management through reminders, updates, and tracking necessary deliverables.

“We designed Flou to address the unique challenges faced by the music and entertainment industry,” Rodríguez explained. “Our platform offers a much-needed solution for contract management, ensuring that nothing falls through the cracks.”

Flou is to the music industry what platforms like Contractbook and LinkSquares are to other sectors — a digital revolution in contract management. By ensuring greater contract clarity, both pre-and post-execution, Flou also hopes to significantly reduce litigation risk.

Additionally, Rodríguez noted that Flou recognizes the importance of education in contract management, offering resources and tools to aid users in navigating the complexities of legal agreements.

Having successfully raised $250,000 in March 2023, Flou is now focused on expanding its capabilities to keep pace with the rapidly evolving music industry. The roadmap includes drafting a wider variety of contracts from automated templates.

Furthermore, Flou aims to incorporate music data analytics, facilitating better deals for music companies, whether signing an artist or buying and selling intellectual property.

By simplifying the process and providing educational support, Flou is striving to make legal compliance easier and helping the industry forge better, more transparent deals. This sounds like great news for the music business — and bad news for anyone in the business of racking up billable hours.

The past week has been a dizzying one for Hipgnosis Songs Fund, which now finds itself in the earliest stages of a bidding war, a legal war, or both. Here’s a quick, five-minute catch-up on everything that’s happened over the past few days.

If you’re twenty emails behind and skimming through the Hipgnosis chaos, then this Cliffs Notes update is for you. Here’s the top-level skinny.

Hipgnosis Songs Fund (HSF), a publicly traded entity with an ultra-valuable portfolio of hit music catalogs, has found itself amidst a whirlwind takeover battle. This battle was initiated last week by publishing and music IP heavyweight Concord, who offered $1.4 billion to acquire the fund. The offer, disclosed on April 17th, represented a significant opportunity for battered shareholders to recoup losses and was quickly accepted by the HSF board.

However, the situation quickly escalated when private equity giant Blackstone outbid Concord with a $1.5 billion all-cash offer, highlighting the immense value of the music rights HSF controls. The HSF board has shown clear support for Blackstone’s superior offer, pending formalization.

The DMN Pro Music IP Acquisition Tracker

Access the music industry’s only database of music IP purchases across publishing, recording, and other rights. Not a DMN Pro subscriber? Start your subscription here.

If Concord (or another bidder) doesn’t try to beat Blackstone, this would typically mean a smooth path to acquisition. However, the biggest hurdle remains HSF’s complex investment advisory agreement with Hipgnosis Song Management (HSM).

What’s up with Hipgnosis Song Management (HSM)?

HSM, partially owned by music industry figure Merck Mercuriadis and majority owned by Blackstone, holds a controversial clause in its agreement with HSF. This “call option” gives HSM the right to step in and purchase HSF’s entire music catalog under certain circumstances, including a change in investment advisor. HSM has now made it clear they intend to “vigorously protect” this right, adding a serious legal dimension to the takeover battle.

As Yogi Berra observed, “It’s tough to make predictions, especially about the future.” But here are some possible outcomes.

• • Swift Buyout: If HSM backs down, a formal bid from Blackstone could lead to a quick acquisition, satisfying shareholders and providing Blackstone with a lucrative asset.
  • HSM Counteroffer: HSM could exercise its call option, forcing an even higher price for HSF’s assets. This could benefit shareholders but also lead to a protracted negotiation or legal challenge.
  • Concord Counteroffer: Concord could easily up its ante, as could any other well-endowed prospective buyer. Blackstone potentially holds an advantage given its existing Hipgnosis holdings, though the highest bidder is also likely to receive shareholder approval.
  • Stalemate: A protracted legal clash involving HSM could result, potentially scaring off bidders and leaving HSF in operational and financial uncertainty.

And there’s your 5-minute wrap-up. Stay tuned for more developments ahead.

Got a tip? Send it confidentially to Digital Music News via Signal — our handle is digitalmusicnews.07.

The Capitol Building in Washington, DC: Ground zero for TikTok deliberations.

The ‘TikTok ban bill’ is back with a vengeance: The House of Representatives passed a modified bill on Saturday (April 20th) that could lead to a nationwide TikTok ban — or something close to it.

The vote saw the measure clear the chamber with overwhelming support (360-58), the second lopsided vote on the TikTok problem. The bill, which includes a measure that could effectively ban TikTok in the United States, now moves to the Senate, where a vote could come within a matter of days.

Digital Music News reported last week that the latest version of the TikTok ban bill extends the deadline for ByteDance, TikTok’s Chinese parent company, to sell the app to a US-based buyer or face a forced shutdown in the United States. The new deadline of approximately nine months, with a potential three-month extension, provides additional time for negotiations.

But this is suddenly much bigger than TikTok. After a lull in the Senate, momentum for the bill accelerated when it was attached to a broader foreign aid package supporting Ukraine, Taiwan, and Israel, dramatically elevating its legislative priority.

Such is the horse-trading and re-packaging that often defines Congressional legislative deliberation — and leads to bills becoming law. On that note, President Biden has indicated his willingness to sign the bill into law despite the potential for significant legal challenges and far-reaching consequences for US-China relations.

What happens after TikTok gets banned in the US?

In this comprehensive white paper, DMN Pro breaks down the likely winners and losers in the music industry over the short and long terms. The breakdown spans major and indie labels, publishers, songwriters, various artist tiers, and sync platforms. If Congress hits delete on TikTok, here’s where you’ll likely stand.

The latest vote has been a surprise slap for ByteDance and its US-based TikTok executives. In the months leading up to this legislation, executives like TikTok CEO Shou Chew found themselves getting dragged through Congressional grill sessions, though the sentiment internally was that a ban was off the table. That assessment now turns out to be a critical miscalculation.

However, while the Senate is expected to pass the ban legislation, potential delays from opponents like Sen. Rand Paul (R-KY) could arise. TikTok is also gearing up for a vigorous legal challenge against the bill.

On that front, courts typically defer to the government in national security matters, but TikTok may argue that the ban unfairly singles the company out, raising questions of constitutionality.

If the bill becomes law, TikTok’s headaches multiply. Finding a buyer willing to meet the massive price tag is difficult, compounded by China’s restrictions on exporting TikTok’s core algorithm technology. ByteDance and China have already indicated an unwillingness to sell TikTok, which would effectively result in a shutdown.

The push for banning TikTok stems from concerns that the Chinese government could exploit the app to collect user data, spread propaganda, or interfere in elections. Chew assured lawmakers that data was being treated carefully and not being shared with ByteDance. However, TikTok ex-employees have contradicted those claims and pointed to outright data-sharing with ByteDance’s Chinese headquarters.

What Will UGC Licensing Look Like After the UMG-TikTok War?

In this DMN Pro Weekly report, we offer an analysis of where the high-stakes impasse stands – and how the episode’s fallout could drive a fundamental shift in how music factors into the UGC space.

Looming in the background is the simmering standoff between Universal Music Group and TikTok — and Taylor Swift’s recent embrace of the platform.

The latest Congressional vote closely follows TikTok’s splashy partnership with Taylor Swift to promote her just-released album, The Tortured Poets Department. That makes sense for Team Taylor, though Universal Music Group hardly welcomed the news.

Swift, signed to Republic/UMG, was given the royal treatment by TikTok in a move that could easily be construed as a slap in the face for both UMG and the broader music industry. Once upon a time, Swift was a staunch defender of music valuation and artists’ rights, though perhaps those are now quaint ideological ideas for an artist of her stature.

TikTok’s direct engagement with Swift could also be seen as part of a broader attempt by TikTok to solidify its influence over the music industry by leveraging its extensive user base to overrule protests by labels, publishers, and other music IP stakeholders.

Separately, sources to Digital Music News have pointed to rekindled negotiations between UMG and TikTok, though progress appears to be plodding. DMN’s sources have also shared details of a possible legal attack against TikTok and its parent ByteDance, specifically over issues tied to repeat infringer violations and clear violations of DMCA regulations.

Incidentally, Elon Musk has also chimed in with his two cents, arguing on Saturday that a ban would set a dangerous precedent undermining free expression.

Musk tweeted, “In my opinion, TikTok should not be banned in the USA, even though such a ban may benefit the X platform. Doing so would be contrary to freedom of speech and expression. It is not what America stands for.”

(Separately, it should be noted that X/Twitter ranks highly on the music industry’s s—t list, thanks to a complete refusal to pay music royalties. Here’s a deep-dive into the latest on X/Twitter’s legal battle against the music industry, including the very real prospect that X will never pay for music rights.)

On a broader scale, the debate surrounding TikTok spotlights the ongoing tension between national security concerns and the protection of free speech rights in the digital age.

This complex issue raises questions about the extent of government power in regulating technology and social media platforms.

A forced sale or ban of TikTok in the US would be unprecedented, sending ripples through the global tech industry and potentially straining already tense US-China relations. China has signaled strong opposition to a TikTok sale, and retaliatory moves against US companies operating in China are a distinct possibility.

Beyond the serious music industry implications, this legislation would have far-reaching consequences for the future of social media, national security policy, and the complex power dynamics between the US and China — not to mention the fate of supermodels like Leah Halton.

Stay tuned for more fireworks.

Got a tip? Send it confidentially to Digital Music News via Signal — our handle is digitalmusicnews.07.

In a dramatic turn of events, private equity giant Blackstone has upped the ante in the battle to control the troubled Hipgnosis Songs Fund. Here’s a breakdown of what Blackstone is putting on the table — and what’s potentially next.

The following story has been updated on Sunday, April 21st to reflect a response to Blackstone’s bid from Hipgnosis Songs Fund (see below).

Blackstone issued a detailed statement to Digital Music News on Saturday (April 20th) outlining its $1.5 billion takeover bid, which outpaces Nashville-based Concord Chorus’s recently-tendered $1.4 billion offer. Digital Music News first reported that offer late Wednesday, April 17th, prompting a 30.5% bounce in Hipgnosis shares the following day.

For battered Hipgnosis shareholders, Concord’s $1.4 billion offer was a splash of relief. But now, there’s something better. Blackstone’s all-cash offer would give Hipgnosis shareholders $1.24 per share, which cleanly beats Concord’s $1.14 per share proposition.

Blackstone’s weekend bid represents an 8.7% premium over Hipgnosis’s closing share price on the previous trading day, making Blackstone’s offer substantially more attractive for shareholders seeking to recoup losses and get out.

Update (Sunday, April 21st): Hipgnosis Songs Fund Limited has now positively responded to Blackstone’s bid. In a statement emailed early Sunday to Digital Music News, the Fund acknowledged the bid and stated that it would recommend the offer to shareholders.

“The Board, having reviewed the Proposal with its financial adviser, Singer Capital Markets, has indicated to Blackstone that the Proposal is at a value that it would be minded to recommend to its shareholders should Blackstone announce a firm intention to make an offer pursuant to Rule 2.7 of the Code on such financial terms,” the statement assured.

“The Board and its advisers will continue to provide Blackstone and its advisers access to confirmatory due diligence, to enable Blackstone to announce a firm intention to make an offer, as soon as possible.”

The counter-bid signals that Blackstone is eyeing a strategic consolidation play.

Blackstone’s determination to acquire Hipgnosis Songs Fund underscores its vested interest in the music rights market. As detailed previously, the private equity firm already owns two key entities within the Hipgnosis family: Hipgnosis Songs Capital (the private music assets investment fund) and Hipgnosis Song Investment (the investment advisor).

In that context, Blackstone’s latest bid indicates a strong desire to consolidate its power in the music rights industry.

And make no mistake: the competitive bidding from Blackstone and Concord also highlights the potential value seen within Hipgnosis’s music royalty assets despite the fund’s recent difficulties.

Indeed, Hipgnosis has been plagued by accounting errors, internal disputes, declining net value, and slashed shareholder dividends. Investor confidence has been battered, though it’s easy to forget how valuable Hipgnosis’ catalog remains. Indeed, this disparity offers a prime opportunity for prospective buyers to acquire a goldmine of song rights, including hits by artists like Neil Young, Journey, Lindsey Buckingham, and Blondie.

An overview of the many Hipgnosis entities and their connections to one another (Source: Digital Music News and DMN Pro).

Then there’s the issue of Hipgnosis Song Management and the music industry’s punching bag du jour, Merck Mercuriadis.

Blackstone’s takeover battle is complicated by a contractual option held by Blackstone’s Hipgnosis Song Management, which advises the public and private Hipgnosis funds. This option grants them the right to outbid rivals and potentially take the assets private.

The option was designed to assure artists and songwriters (who either remain partial owners or are now ex-owners) that their catalogs would only change hands with appropriate oversight and controls. That helped to secure juicy deals and buy-in, though it has proven to be an obstacle in the board’s attempts to secure external bids.

Of course, lingering in the background is Merck Mercuriadis, whose swashbuckling vision has created one of the world’s most valuable tranches of music IP. But ‘Merck’ has also been chided for wildly overbidding for valuable catalogs and setting the stage for a crash once the Fed hiked interest rates.

So far, Merck has remained quiet following the Concord bid, though he’s undoubtedly pushing buttons in the background.

Either way, Blackstone’s bid is better — though arguably still a sweetheart deal given the longer-term potential of Hipgnosis’ asset tranche.

In their offer, Blackstone clearly states their position: “[We] strongly encourage the board of Hipgnosis to recognize the significant increase in value available to all shareholders under the terms of its Fourth Proposal, over the $1.16 as set out in the Concord Offer, and to work with Blackstone to reach agreement on a unanimously recommended Firm Offer in an expeditious manner.”

Recognize the increase they will — though something tells us this isn’t the last and final offer for Hipgnosis. Stay tuned.

Got a tip? Send it confidentially to Digital Music News via Signal — our handle is digitalmusicnews.07.

An investment consortium spearheaded by EQT, alongside Believe’s longtime investor TCV and company CEO and founder Denis Ladegaillerie, is now securing a controlling stake of nearly 72% in digital music distributor Believe. The acquisition go-ahead follows a ringing endorsement from Believe’s Board of Directors, signaling full confidence in the deal.

According to details shared late Thursday (April 18th) with Digital Music News, the consortium will soon launch a simplified public purchase offer for Believe’s remaining outstanding shares, valuing them at €15 per share. This marks a significant premium of 43.8% compared to the average stock price over the last 30 days, providing an attractive exit opportunity for existing shareholders.

As for the broader acquisition, the investment consortium now has a strong green light and will proceed within a matter of days. “All conditions… have been definitively fulfilled and the transfer of these shares is firm and irrevocable,” the parties relayed in a statement.

The board further noted that the consortium’s vision aligns with Believe’s mission to empower independent artists and labels. EQT and TCV are committed to fueling Believe’s expansion, investing heavily in technological advancements and strategic acquisitions to drive growth that outpaces the broader market.

“Believe is a world leader in the digital music market, with strong French roots and a powerful ambition to be the essential partner for independent artists and labels globally,” Denis Ladegaillerie, CEO and founder of Believe, relayed in the email.

“This operation, along with the continued backing of TCV and the expertise of EQT, will bolster our remarkable growth trajectory. We are confident this will cement our position as the global reference for independent music, allowing us to seize the vast opportunities presented by the ongoing digital transformation of the music industry.”

In a separate release emailed to Digital Music News, Believe’s Board of Directors unanimously issued a favorable opinion on the offer, emphasizing its belief that the offer aligns with the interests of the company, its employees, and its shareholders.

Specifically, the email detailed several reasons for the nod, including benefits for minority shareholders, an option for long-term investment, and the investors’ alignment on Believe’s broader mission.

“In particular, the Board of Directors considered that the Offer is in the interests of minority shareholders wishing to realize their investment, by enabling them to benefit from immediate and full liquidity at a significant premium over the relevant stock price averages, and at the same price as that obtained by the sellers of majority blocks, and thus recommended that minority shareholders pursuing this objective tender their shares to the Offer,” the email detailed.

Earlier this month, Warner Music Group (WMG) decided not to pursue the acquisition of Believe after months of negotiations between the two companies.

The decision followed concerns from independent music organizations that a WMG-Believe merger would stifle competition in the industry.

In a press release issued by the major label, WMG confirmed that “after careful consideration, it has decided not to submit a binding offer for Believe.” The statement continues: “WMG thanks the Ad Hoc Committee and Believe’s leadership team for their time and cooperation, and wishes the company every success in future.”

The deal comes at a confusing juncture for the music industry in France.

The good news is that the French music industry has been experiencing steady growth for the past seven years, and even physical media sales are holding strong. However, there are also some challenges on the horizon.

Digital sales are lagging behind other countries, and subscription growth for streaming services is slowing down. The French industry body SNEP points to competition from short-form video platforms and tax hikes on streaming services as reasons for the slowdown.

Soundtrack Loops’ diverse portfolio of assets provides the foundation to enhance AI’s capabilities — with a focus on creativity with ethical AI.

On the forefront of recent discussions surrounding fair training practices for AI companies, Soundtrack Loops — with its diverse portfolio of assets — aims to ‘kickstart a shift into more widespread ethical AI training practices.’ Moreover, the company’s founders believe their catalog ‘presents an enormous opportunity for AI generation of incidental music.’

As music IP owners continue to clash with AI behemoths over what constitutes fair use, Soundtrack Loops’ latest expansion — specifically with its OneStop Audio Library for AI training — aims to remove copyright conflict from the picture entirely. The company believes that in the face of rampant litigation and raging copyright wars, its latest release is simply the right path for both developers and rights holders.

According to cofounders Matthew Yost and Jason Donnelly (aka DJ Puzzle), Soundtrack Loops’ expansion will generate new creative possibilities for AI. Yost explains, “AI imitates and mimics, and is incapable of evolving new genres and synths. That’s where the Soundtrack Loops OneStop Audio Library steps in.”

“For AI developers, seeking ways to source content ethically brings a lot more benefits to the table than plundering through endless amounts of copyrighted materials,” says Yost. Just recently, Soundtrack Loops partnered with DMN to expand its ethical AI footprint.

Speaking about the benefits of tapping into Soundtrack Loops’ AI library, Donnelly believes that a focus on ethics as a standard for AI model development and training will ensure AI output doesn’t cause copyright disputes.

“The thousands and thousands of samples and loops in Soundtrack Loops packs are unique because they are created by us, or purchased by us from others as a work for hire. This is very common practice. We hire producers to create original works, then we buy them outright,” Donnelly explains.

This transparency of training material is what the A2IM, RIAA, and related music organizations are pushing for: a system that mandates remuneration to the sources of AI training material.

Donnelly further clarified that Soundtrack Loops offers different tiers for broader licensing options beyond AI, but a ‘core focus is now on ethical AI licensing.’

Yost believes ethical licensing considerations while training sophisticated AI models ‘will lend credibility to the AI industry.’ Rather than risk litigation and shutdowns, AI developers might be better off using these platforms.

Only time will tell how copyright conflicts in the courtroom will ultimately shake out, but Yost thinks there’s a monumental benefit in store for AI companies that lead the way by adopting ethical AI training practices. “These developers could potentially score a larger chunk of the market.”

“Using protected and controlled compositions for training could have an exponentially positive impact on AI companies’ brand and image — and serve as a unique competitive advantage,” he says, adding, “It also allows developers to be on track to comply when the new regulations and bodies of law emerge — ones that enforce transparency of data and remuneration of artists.”

And Donnelly says the company ‘has the assets to pull this off.’ The holistically controlled catalog contains over 80,000 assets accumulated over 20 years, with a multitude of loops and samples, presets, and MIDI files — spanning almost every genre and category of music.

“We practically have almost all genres available and a network of producers to help fill in the gaps if needed. ” says Donnelly.

He further elaborates that licensers can analyze loops on the catalog, access raw samples, or utilize all the individual isolated notes and nuances of instruments for AI training.

AI developers can tap into Soundtrack Loops’ licensing zones for a myriad of use cases — but Yost and Donnelly believe it could be an especially powerful asset for music directors that require bulk generation of ‘incidental’ production music.

“Incidental music is one of the places where AI has a very serious chance of having a huge impact within the next two to five years, because these producers have to churn out tons of music,” explains Donnelly. “The job requires a giant pool of music, which is exactly what Soundtrack Loops offers — a comprehensive library of loops in all genres.”

Donnelly points out that an AI tool backed by Soundtrack Loops for incidental music could fill a gap in the market, be a big time saver for huge productions, and represents an ‘enormous opportunity.’

Then there’s the theoretical downstream catalog of AI-generated works that can result from this initiative, all of which is legal. Donnelly believes that the ‘right AI program’ capable of mixing, matching, and constructing unique music from these different elements, ‘could create a huge library of incidental music.’

“AI companies have to take a step back and evaluate the current ethics of their practices, and make better decisions for training. They should willingly be offering clean, ethical AI.”

Photo Credit: Hipgnosis Songs Fund

Concord, operating as ‘Concord Chorus Limited,’ has proposed an all-cash takeover of Hipgnosis Songs Fund Limited for roughly $1.4 billion. The respective company boards love the arrangement — though this is hardly a done deal.

Details of the offer were tipped to Digital Music News late Wednesday (April 17th), with terms that could spell a convenient out for Hipgnosis shareholders. Concord’s offer, which tops $1.4 billion, represents a 32.2 percent premium on the April 17th closing price of Hipgnosis Songs Fund and signifies a major move by Concord to enhance its music rights portfolio.

Digital Music News was first to report the news following a late-Wednesday disclosure by both sides. The parties officially disclosed the offer at 2 am ET with the news, and markets immediately reacted in early morning trading on the London Stock Exchange.

Concord, also referred to as ‘Bidco’ in the acquisition paperwork, hammered out an agreement that might just work. “The board of directors of each of Bidco and Hipgnosis are pleased to announce that they have reached agreement on the terms of a recommended cash offer pursuant to which Bidco will acquire the entire issued and to be issued share capital of Hipgnosis (the “Acquisition”),” the lengthy email declared.

The Hipgnosis Songs Fund board has formally accepted Concord’s acquisition offer. An independent committee advised the board that this offer was ‘fair and reasonable.’

Beyond the per-share pricing, the deal would also involve the assumption of a sizable tranche of debt that would effectively push the acquisition price past $2 billion.

This acquisition certainly aligns with Concord’s goal of investing in enduringly popular music. But the deal is still subject to the approval of all stakeholders and even regulators. And there’s almost certainly going to be disagreement between Hipgnosis Songs Fund and its investment advisor, Hipgnosis Song Management, about the deal.

For starters, it’s likely that Hipgnosis Song Management believes that the offer price is too low. While the $1.4 billion offer sounds good to battered shareholders, it’s relatively cheap compared to the impressive IP Hipgnosis controls. But more to the point, HSM also has a contractually-determined ‘call option’ that gives it the ability to match a competitive offer, pay the company’s market cap, or pay an amount determined by an agreed-upon third-party appraiser — depending on which option fetches the highest price.

Those are the pre-determined stipulations, which may also invite a messy legal confrontation and scuttle Concord’s deal offer.

Concord is working with Apollo Global Management to help finance the acquisition.

“Concord and its management have followed the progression of Hipgnosis since IPO and believe that Hipgnosis’ assets complement Concord’s long-standing objective to acquire high quality and long-term music assets,” the company shared.

More as this develops.

Universal Music Group HQ in Santa Monica, CA (Photo Credit: Coolcaesar / CC by 3.0)

If you enjoyed watching Universal Music Group remove its entire catalog from TikTok, you’ll absolutely love what’s potentially coming next.

For those who enjoy high-stakes showdowns between major media companies and tech giants, Universal Music Group vs. TikTok has been action-packed. But you might need a fresh bowl of popcorn for what’s next.

According to multiple sources leaking details to Digital Music News, UMG has been flooding TikTok with DMCA takedown notices following its stern content removals in late January. But that may be a prelude to more serious legal action in the coming weeks.

As for the takedown notices being sent, one estimate pegged the number of notices ‘in the tens of thousands,’ with TikTok allegedly still hosting enormous quantities of UMG-controlled content despite the recent pulldown.

What happens after TikTok gets banned in the US?

In this comprehensive white paper, DMN Pro breaks down the likely winners and losers in the music industry over the short and long terms. The breakdown spans major and indie labels, publishers, songwriters, various artist tiers, and sync platforms. If Congress hits delete on TikTok, here’s where you’ll likely stand.

Part of the problem involves altered or modified music. Most commonly, songs are sped up, even slightly, though a range of modifications abound on TikTok. Those altered versions become more challenging to detect and remove, but they’re just as infringing. The situation has forced UMG to put teeth to its takedown and chase down remaining songs on the platform.

Under the rules of the Digital Millennium Copyright Act (DMCA) in the US, user-generated platforms are required to remove infringing content when formally notified. A failure to properly comply with a legitimate request can subject the platform to massive infringement penalties if the content isn’t quickly removed.

That’s hardly new: rights owners like UMG have been sending DMCA takedown notices for decades. However, according to sources, those takedown notices are merely the first step in a potentially severe legal attack against TikTok and its Chinese owner, ByteDance.

Here’s how this might work: according to sources with knowledge on the matter, UMG is not only focused on stripping its music from the popular social media site, but also on holding TikTok accountable for failure to comply with the repeat infringer policy, a requirement under the DMCA.

In a nutshell, the DMCA’s repeat infringer policy dictates that platforms must have a procedure for terminating the accounts of repeat infringers or face serious penalties or legal action. In the case of TikTok, it appears that repeat infringers aren’t facing account suspensions or removals — with TikTok either unwilling or unable to successfully scrub its platform of these problematic accounts.

And that’s a potentially huge problem for TikTok.

Suddenly, a more sophisticated strategy is emerging. UMG wants to remove infringing content, but their deluge of DMCA takedowns may also be targeting a serious vulnerability in TikTok’s content management policies.

“Sure, these DMCA takedown notices are part of UMG’s dispute with TikTok, but the goal isn’t really about scrubbing UMG’s music from TikTok,” one source relayed.

Universal Music Group has yet to offer any comment, and it’s unclear if legal filings will emerge. Separately, the parties are understood to be working through a negotiation process, though so far, those talks have yet to bear fruit.

Who owns what?

DMN Pro’s exclusive Music IP Acquisition Tracker covers every IP acquisition deal across masters, publishing, and related assets happening over multiple years. This information simply isn’t available anywhere else — subscribe now to gain access.

Meanwhile, it’s understood that UMG is not just considering, but actively preparing to take legal action within weeks, with DMCA’s repeat infringer policy a crucial part of their upcoming complaints. “They’re not just sending notices; they’re meticulously tracking TikTok’s response to users who have been the subject of multiple notices,” the source continued, while further noting that “TikTok’s inaction” about its repeat infringer issue is a significant concern.

Separately, one informant noted that ‘easily more’ than 100 million videos on TikTok are being muted. That may not include videos with modified music content, altered for fun or specifically to evade detection by UMG or TikTok.

The removal of a vast number of videos from TikTok—now in its eleventh week—has unsurprisingly initiated a wave of discontent among content creators and their audiences. Strategically, TikTok appears willing to ride out those concerns, potentially due to the prevalence of modified workarounds peppering the platform. Separately, Taylor Swift’s decision to “cross the picket line” and license TikTok also makes life easier for ByteDance.

For UMG, dropping the hammer on TikTok helps to safeguard creative assets while sending a stern message. In that context, the Taylor Swift situation—an event labeled as “a big fat disappointment” by one UMG insider—raised concerns about whether other defecting superstars could further weaken UMG’s position.

In response to the relentless takedown campaign by UMG, some content creators are turning to royalty-free music or independently published tracks to continue their work unobstructed by copyright scuffles.

More at this develops.

Taylor Swift on TikTok: A screengrab on the morning of Thursday, April 11th.

Taylor Swift — a Republic Records/UMG-inked artist — is suddenly back on TikTok despite Universal Music Group’s high-profile removal of its catalog from the platform. So what’s going on?

The Digital Music News bat-phone was ringing off the hook this morning with some unexpected news. Taylor Swift, a marquee Republic Records/UMG artist, is now back on TikTok. No statements are being made, though the development likely resulted from negotiations between the ByteDance-owned TikTok, Swift’s team and/or UMG, with the superstar controlling her recordings and publishing under her broader Universal Music Group partnership.

The timing hardly seems accidental. The reinstatement is happening approximately one week before Swift’s forthcoming album, The Tortured Poets Department, which is slated to debut on April 19th. Swift first announced the upcoming album at the Grammys in early February.

Jumping onto the TikTok platform, Swift’s illustrious catalog is now available for short-form video shenanigans — despite Universal Music Group’s high-profile pullout of its massive catalog from the platform over licensing, royalty, and AI-related disagreements.

Tracks like “You Belong With Me,” “Lover,” and “Cardigan,” as well as “Mirrorball,” “Fearless (Taylor’s Version),” “Cruel Summer,” “Style (Taylor’s Version),” “Is It Over Now? (Taylor’s Version),” “The Man,” and “ME!” are all available on TikTok and ready for incorporation into short-form videos.

Notably, several tracks appear to be missing. As you might expect, Swifties have been combing through the catalog and spotting missing tracks from albums the artist doesn’t completely control. For years, the artist has been working to re-record many of her earlier releases to secure master recording ownership—at least over the newly recorded versions.

What happens after TikTok gets banned in the U.S.?

In this comprehensive white paper, DMN Pro breaks down the likely winners and losers in the music industry — over the short- and longer terms. The breakdown spans major and indie labels, publishers, songwriters, various artist tiers, and sync platforms. If Congress hits delete on TikTok, here’s where you’ll likely stand.

Until now, Swift has successfully rerecorded all of her albums originally released before 2019, excluding her self-titled debut album from 2006 and her 2017 album, Reputation. Either way, a sizable tranche of Taylor Swift music is now on TikTok — with the viral engines of creativity revving up on the platform.

The marked shift is hardly a sign of solidarity with UMG — not to mention the broader music industry and its artists. Though here we are.

Others are also noting the glaring development. In articles published this (Thursday) morning, both Variety and Rolling Stone have pointed to the return of the Swift catalog to TikTok, though neither report offered specifics on discussions. Both sources point to a sequence of negotiations between Swift and Universal Music Group, including Republic Records, eventually leading to her music’s reinstatement.

The development comes after Universal Music Group’s TikTok standoff enters its tenth week. Digital Music News first reported on the impasse on January 30th, though many observers of the wreckage — including Warner Music Group CEO Robert Kyncl — predicted a ‘swift’ resolution and catalog reinstatement.

Incidentally, Kyncl also reported that Warner Music Group had reached a workable licensing pact with TikTok. Though Sony Music Entertainment CEO Rob Stringer hinted that his major label could trigger a UMG-style pullout if needed. The NMPA, Downtown Music Holdings, and indie consortium Impala have supported the removals. A music industry survey by Digital Music News also found resounding approval of UMG’s position.

Taylor Swift announced her exclusive global recording agreement with Universal Music Group and its marquee Republic Records division in November 2018.

Republic became Swift’s second label following her Big Machine Label Group (BMLG) pact. Importantly, Republic wouldn’t retain ownership or control over Taylor’s master recordings. The deal spanned multiple albums and was also complemented by a separate pact with Universal Music Publishing Group (UMPG).

Who owns what?

DMN Pro’s exclusive Music IP Acquisition Tracker covers every IP acquisition deal across masters, publishing, and related assets happening over multiple years. This information simply isn’t available anywhere else — subscribe now to gain access.

Importantly, Swift’s departure agreement with BMLG did not include the ownership of her past masters. However, Taylor has been circumventing those restrictions by re-recording and re-releasing her past albums as ‘Taylor’s Versions.’

Importantly, her new contract with UMG stipulated full ownership of all her future master recordings. That shift towards catalog control opens the door for more independent negotiations with mega-platforms like TikTok.

Meanwhile, TikTok is on the brink of getting banned in the United States.

The push to ban TikTok in the U.S. has escalated, with a new bipartisan bill proposed in the Senate to prohibit the app. This action follows growing concerns over national security and data privacy, citing fears of the Chinese government’s potential access to user data through ByteDance, TikTok’s parent company.

Public sentiment reflects these concerns, with recent surveys indicating that many Americans support a ban. President Biden has also signaled his intention to sign a bill that would force a TikTok sale or divestiture. However, the White House and Democrats appear to be calculating the impact among younger voters ahead of the November presidential election.

Against that backdrop, a Democratic U.S. senator suggested extending the deadline for ByteDance to divest its TikTok American operations while pointing to ongoing negotiations and complex legal challenges. The Senator emphasized the importance of addressing the risks associated with the platform’s Chinese ownership rather than rushing the process.

One hot take on the slowdown is that Biden and the Democrats want to appear tough on TikTok heading into the election but stop short of banning the app, given its immense popularity among younger Americans.

Amidst these discussions, Republican Senate Minority Leader Mitch McConnell has denounced TikTok, hinting at possible ties to Beijing’s intelligence and propaganda efforts. He suggests the app poses a serious threat, underscoring the stance of many lawmakers calling for stringent action against the social media platform.

Adding to TikTok’s scrutiny, the Federal Trade Commission is reportedly investigating the app for potential children’s privacy law violations, bringing further regulatory pressure. These developments indicate a rising tide of regulatory and political challenges for TikTok in the U.S. as the debate over its operation and ownership continues.

Of course, these are all critical, time-sensitive issues for the music industry, though not top-of-mind concerns for TikTok-loving Swifties.

Warner Music Group is saying ‘no thanks’ to an acquisition of Believe, according to a statement shared early Saturday morning (April 6th).

In a press release issued by the major label, WMG confirmed that “after careful consideration, it has decided not to submit a binding offer for Believe.” The statement continues: “WMG thanks the Ad Hoc Committee and Believe’s leadership team for their time and cooperation, and wishes the company every success in future.”

The decision follows a multi-week acquisition dance that pitted Warner against a consortium of Believe stakeholders aiming to take the company private. That latter group is helmed by company CEO and founder Denis Ladegaillerie, alongside other participants like EQT and TCV.

Shortly after Warner Music Group’s decision, Believe’s ‘Ad-Hoc Committee’ acknowledged the pullback in an email to Digital Music News.

“The Ad-Hoc Committee of Believe has taken note of Warner Music Group’s decision not to submit a binding offer for a combination with Believe (“WMG”), as set out in Warner Music Group’s press release of earlier today,” the Committee emailed.

“The Ad-Hoc Committee will review the situation with all interested parties (including the Consortium composed of EQT, TCV and Mr. Denis Ladegaillerie, as well as the historical shareholders of Believe to determine next steps in relation to the possible evolution of the Company’s control and will inform the market accordingly.”

The Ad Hoc Committee comprises Believe board members who are unaffiliated with the ongoing acquisition attempts by Denis Ladegaillerie, the CEO and founder of Believe, in collaboration with EQT and TCV.  The response suggests that ‘Plan A’ is likely to move forward, with WMG’s pullback paving the way for the original acquisition by the Ladegaillerie alliance.

Earlier in February, Ladegaillerie’s consortium offered €15 (approximately $16.35 USD at current exchange rates) per share, valuing Believe at about $1.6 billion USD. The group had finalized a deal to acquire a 71.92% stake in the company through ‘Block Acquisitions.’

Warner Music Group’s potential acquisition had sparked debate, with some industry players fearing a negative impact on independent music. Others eyed a highly strategic move for WMG.

Last month, news surfaced about WMG entering a bidding war with a consortium for Believe. After a period of negotiation regarding the fair price, WMG was finally granted permission to submit a formal bid. It should be noted that Believe’s share price has also seen a significant rise since the beginning of the year, reflecting the ongoing interest in the company.

As of April 6th, shares of Believe SA (trading as BLV on Euronext Paris) were trading at €16.50, up nearly 60% year-to-date.

Protests, particularly within the independent music sector, quickly emerged. The French Union of Independent Phonographic Producers (UPFI) and the Association of Independent Musicians (AIM) both voiced their opposition to the acquisition attempt. Their primary fear was that this acquisition would stifle competition and hinder investment in new and upcoming musical talents.

The French Union took things a step further, urging the French government to intervene and prevent the acquisition from happening.

The dust-up kicked off when Believe’s CEO and founder, Denis Ladegaillerie, first cobbled together the capital and consortium to take the company private.

As mentioned earlier, Ladegaillerie offered to buy back most of the shares at €15 per share, though Warner Music’s rumored offer of €17 per share sounded more enticing. That stirred a tizzy of pushback from the consortium, which aimed to scuttle Warner’s advance and even outright block the attempt.

Believe positions itself as a global partner for independent artists and labels, offering a broad suite of career development services.

The company’s foundation remains in digital distribution across major streaming platforms and social media channels, though Believe touts a diversified suite of offerings. Beyond distribution, Believe provides ‘Label & Artist Solutions’ encompassing marketing, promotion, funding, and global expansion strategies. Established artists can access tailored ‘Premium Solutions’ for more complex needs.

Believe notes that technology drives its operations, with automation streamlining distribution, royalty management, and data analytics. The company also says it prioritizes artist independence, ensuring greater control and revenue share. That focus has largely shaped Believe’s image since inception and contributed to the pushback against a Warner Music takeover.

Currently, Believe has a global presence in over 50 countries.

Hype Deck is Amazon Music’s take on promotional asset generation, and a powerful tool for those that maximize its impact.

Hype Deck delivers artist teams a deck of unique Hype Cards that can be shared with fans via social media, messaging apps, email, and other marketing channels. With that in mind, Digital Music News recently joined forces with Amazon Music to create the ultimate guide for using this powerful new marketing tool.

Table of Contents

• • What is Hype Deck, and how are artists using it to reach their fans?
  • Are all artists eligible to use Hype Deck?
  • How are Hype Cards generated?
  • What are the different types of Hype Cards available?
  • How can I activate, deploy, and maximize Hype Deck for my songs and other music assets?

What is Hype Deck, and how are artists using it to reach their fans?

In January of this year, Amazon Music for Artists released Hype Deck, a feature available on both mobile and web versions of their app. The tool equips artists and their teams to effectively market music assets to fans globally.

Artists can generate assets to promote their newly released songs (and previous releases), upcoming albums, or milestones like landing on a playlist.

The feature allows teams to select from almost 170 global Amazon music playlists, which currently include Rap Rotation, Country Heat, Breakthrough, All Hits, Viral Hits, Pop Culture, and many more.

Are all artists eligible to use Hype Deck?

Whether you’re a rising talent, indie artist, or a well-established musician, Hype Deck can help promote your profile, songs, albums, or showcase your milestones.

Anyone on an artist’s team, label, or distributor with access to an artist’s profile in Amazon Music for Artists can create Hype Cards. Artist managers and record label execs with access to multiple artist accounts simply choose a specific artist profile before they navigate to the Hype Deck section.

At the end of the day, it’s all about sharing successes, milestones, and new releases with fans.

How are Hype Cards generated?

Hype Cards can be generated in line with an artist’s brand or vision. It’s whatever an artist wants to promote and where they want to share it.

Fully customizable, artists can choose background colors and layout orientations. Hype Cards can also be shared with fans in multiple languages. Besides English, the feature supports Spanish, French, Italian, German, Portuguese, and Japanese.

What are the different types of Hype Cards available?

All your music moments — whether big or small — can find a Hype Card to share the celebration with fans and hype them up.

Artists planning a new release can use the Song Hype Card to highlight a song from an older album to build anticipation for an upcoming song. Artists can also promote previously released tracks on special occasions such as release anniversaries.

In a similar manner, Album Hype Cards can promote a new album release, while other Hype Cards can highlight and share artists’ successes with fans.

How can I activate, deploy, and maximize Hype Deck for my songs and other music assets?

The process is as simple as opening the Amazon Music for Artists app, selecting a song, album, or playlist to promote, and customizing the layout, colors, and language of your Hype Card. Artists can choose to share directly from the mobile app, or for desktop, download to share later.

Grab the associated link when downloading the visual asset, and users clicking on that link will be taken back to Amazon Music to listen to the artist’s music.

We hope this guide was helpful — and more importantly, helps you reach more fans more often!

Nearly $1.3 billion has been plowed into music-focused companies so far this year, according to details tracked and compiled by DMN Pro’s Music Industry Funding Tracker. But that’s tame compared to explosive Q1 2023 totals.

Investors are still making heady bets on promising music startups, companies, and funds, but the ebullience of last year is cooling down.

For the first three months of 2024, total music industry funding levels topped $1.266 billion, according to rounds tracked by DMN Pro’s Music Industry Funding Tracker. That compares to a whopping total of $4.195 billion for the comparable Q1 of 2023, a period that also witnessed significantly larger deal flow.

The Music Industry Funding Tracker is DMN Pro’s subscriber-only database that tracks rounds big and small, complete with details about specific rounds (pre-seed to late-stage), investors (both lead and supporting), and dollar commitments involved. The database covers hundreds of investments over multiple years and offers a valuable resource for anyone placing or receiving growth bets in the music industry.

Despite the difference in funding totals, 2024 has its share of heady investments. Topping the list is Irving Azoff’s Iconic Artists Group (IAG), which revealed an impressive $1 billion investment tranche led by New York’s HPS Investment Partners in mid-February. That was coupled with the news of IAG’s acquisition of the Rod Stewart catalog, with similarly gigantic IP acquisitions potentially ahead.

But 2023 had its own monster rounds — and more of them. Dropping the biggest jaws was gamma., which bagged its own $1 billion investment round in March of last year. Incidentally, that was followed by a $100 million round in February of this year, powered by Alpha Wave Global.

Other weighty rounds in 2023 included Kakao Entertainment, which pulled down a $966 million round, and Spirit Music Group owner Lyric Capital, which secured $410 million in funding commitments in February of last year, part of a broader $800 million IP acquisition fund raise.

Other 9-figure rounds were commonplace in early 2023, part of a potential spike year in investment activity for the music industry.

Case in point: total 2023 music industry funding topped $10 billion, according to DMN Pro’s tallies. That was more than double 2022’s $4.8+ billion in overall funding. Putting things into context, 2024 may simply represent a ‘return to normalcy’ rather than a year-over-year plunge.

(For those looking to explore last year’s heady investment environment, check out DMN Pro’s recent research report on this explosive year.)

As for March of this year, investment rounds focused on production and creative collaboration tools. The rounds were substantial for the companies involved, but the month was subdued overall — especially when compared to the same month last year.

Rounds secured included WavMaker ($5 million seed round), BeatConnect ($1.86 million seed round), and Hook ($3.5 million seed round). Investors powering those rounds included some noted investors, ranging from individuals like Vicky Patel to investment firms such as Sfermion and Point72 Ventures and ventures like FICC, Anges Québec, and Triptyq Capital.

By comparison, in March 2023, funding volumes topped a substantial $1.446 billion. In fairness, March 2023 included the 10-figure, $1 billion gamma round and two additional rounds topping $150 million (Character.ai) and $200 million (Torch Capital).

The 16% slice adds up to billions of dollars in unaccounted and missed streaming royalties annually, according to Legitary’s latest stats (Photo: Pixabay)

Legitary has finally put a number on all those missing, incorrect, and fraudulent music streams. In its latest report, the streaming verification company reveals that up to 16% of streaming statements from DSPs are ‘suspicious,’ and the takeaways on streaming fraud are surprising.

Legitary’s latest finding is based on scans of over 700 billion music streams, with a staggering takeaway on just how much is being missed. The company’s AI-powered auditing platform identified a multitude of cases involving miscounted streams and anomalies — amounting to up to $3 billion in incorrectly tracked revenues for 2022.

The amount is eyebrow-raising, to say the least. Legitary’s report, shared with Digital Music News this month, is likely to raise pivotal questions about the accuracy and transparency of play counts on streaming platforms in an industry awash in trillions of streams.

Alongside the broader anomalies in the streaming industry, including streaming fraud, reporting errors, metadata discrepancies, and others, Legitary is also shedding light on other non-obvious issues, including unexplained drops in streams and zero-reported streams. But for all the focus surrounding streaming fraud, Legitary’s findings offer a surprisingly different assessment of the problem. Just recently, Legitary joined forces with DMN to further educate the industry on what their research is revealing.

Legitary’s findings take the issue of misreported streams beyond the typical discussions centered around streaming farms and streaming fraud. More importantly, it sheds light on the fact that fraud is only a modest part of the bigger anomaly pie.

Indeed, the different types of anomalies within the larger pie are unique and demand different solutions. Moreover, rectification of these anomalies requires a diverse set of approaches and strategies.

Nermina Mumic, CEO of Legitary, believes non-fraudulent anomalies are arguably the bigger enemy since they directly impact the IP owners involved. That’s not always the case with streaming fraud.

Streaming fraud tends to garner the most attention within the industry. However, Legitary noted that a far larger percentage of issues are unintentional or rooted in data errors. Most importantly, tackling those problems results in a one-to-one recovery of missing royalties and doesn’t involve chasing shadowy stream-farm operators.

Perhaps labels need to point their guns at a bigger boogeyman. With a substantial percentage of music streaming royalties potentially compromised by a broad number of potential issues, these hidden problems, Legitary believes, ‘do not receive the level of attention they deserve.’

“With streaming anomalies, we’re seeing royalties simply not getting generated, so the issue is harder to find, keep track of, and resolve,” Mumic explains, adding, “The music industry must delve into the occurrences and factors that could be contributing to exacerbating these anomalies. It’s absolutely imperative.”

While the issue is significant, Mumic is quick to point out that streaming platforms aren’t solely to blame for these anomalies.

Legitary’s report also notes that with far superior data quality, major labels account for fewer streaming anomalies compared to discrepancies recorded for indie label artists.

“There are many possible problems with missing stream payments, and suspicious stream counts don’t necessarily arise due to streaming platforms. Instead, the missing revenues stem from reporting issues, flawed data, and overall inaccuracies within the industry. In some cases, we’re seeing significant unexplained drops in streams, and at some points, no streams recorded at all.”

“Streaming fraud creates some indirect issues. But there’s also a direct leverage point of fixing streaming anomalies with direct remedial action.”

A quick breakdown of music publisher market shares, 2020 (blue) to 2021 (green) (sources: IMPF; Music & Copyright)

If TikTok somehow avoids getting banned, sold, or otherwise knee-capped in the United States, another dark storm cloud awaits. Enter indie music publishers, who could render this platform awfully quiet in the coming months. Their collective impact is bigger than many realize.

For weeks, Universal Music Group has been fighting a lonely battle against TikTok. Now, there are signs that others may join the fight — and the impact could be even more devastating for TikTok’s user experience.

Aside from the full weight of the United States Government, there’s now a scrappy group of malcontents reconsidering their TikTok relationships.  And the indie music publisher storm cloud could be bigger than TikTok realizes — a lot bigger.

What will UGC licensing look like after the UMG-TikTok war? We examine that question in our recent DMN Pro Weekly Report.

A quick overview of the catalog sizes tells the first part of this story. Universal Music Group controls copyrights to roughly 3 million song recordings and publishing rights within 4 million songs. But indie publishers collectively control a far greater catalog, according to market share estimates.

Those estimates—tallied for 2021—come from the Independent Music Publishers International Forum (IMPF), which pegged indie publisher marketshare at 27.1% citing Music & Copyright figures.

However, that figure only counts music publishers with a 5% or lower total market share, excluding BMG and Kobalt. Add those ‘bigger indies’ into the mix, and the total indie music publishing market share swells to 40.1%.

Who’s included matters. As we first reported last week, the National Music Publishers’ Association notified its members that it wouldn’t be renewing its TikTok contract, which lapses on April 30th. The NMPA doesn’t include every music publisher, and more importantly, every music publisher is free to make their own decision.

What Will UGC Licensing Look Like After the UMG-TikTok War?

But jumping back to the IMPF estimate: collectively, indie music publishers are the largest owners of songs and lyrics, at least in terms of catalog size. Sony Music Publishing might have bigger hits, but the indie music publishing community as a whole is bigger in terms of total songs.

That assumes,  of course, that the entire indie music publishing community acts in lock-step.

But even a 10% pullout could create a noticeable impact on TikTok users. This isn’t a giant behemoth like UMG with a single kill switch, and major labels (and their publishing subsidiaries) have bigger hits in their catalogs. However, collective action by enough indie music publishers could amount to another ‘nuclear option’ following Universal Music Publishing Group’s withdrawal.

And what’s up with that choice of words — the ‘nuclear option’ — for music publishing?

The phrase was bandied about immediately after UMPG decided not to renew its TikTok licensing agreement, cementing UMG’s recording+publishing pullout. And it strangely fits: unlike recordings, which typically feature a smaller set of authors and owners, publishing ownership is more complicated. Generalizing across genres and eras is difficult, but today’s popular songs can have long lists of authors and co-publishers, with each owner carrying veto power over the entire song.

Look no further than Travis Scott’s ‘Sicko Mode’ feat. Drake, which has an astounding 30 different songwriters. That’s an extreme case, though most top-charting songs contain multiple songwriters (or, more accurately, rights owners with veto power).

Suddenly, the reach of a tiny music publisher can be far greater than it appears, with authors owning percentages of songs in other catalogs. The result is a vast and interconnected set of tentacles that go beyond a specific catalog. This is a bomb whose impact is hard to quickly assess, but can be seriously devastating — and deafening for TikTok.

Then again, so would an American law forcing the divestiture of TikTok by its powerful owner, ByteDance.

Source: UMG, ByteDance financial disclosures.

TikTok calls that a ban, while lawmakers simply characterize this as a slight change in ownership. Either way, a successful passage in the Senate and signature by President Biden would plunge TikTok into chaos and eliminate a mountainous war chest — with music licensing the least of the platform’s problems.

Music Merch Manager App by Merch Cat

What happens when merch stops being an afterthought and turns into an active revenue-generator? Merch Cat says its elevated focus on technology and analytics can boost artist merch revenue by as much as 20%, while strategically crafting a more reliable process for inventory management, sales tracking, and decision-making.

For artists and managers, merchandise typically takes a backseat to music creation, releases, and touring. As a result, merch presents itself as a chaotic afterthought — ridden with routine disruptions of procurement, quality checks, inventory issues, data tracking, and fulfillment challenges.

Vanessa Ferrer, founder of Merch Cat, recently sat down with DMN to discuss how a sophisticated system of inventory management and tracking allows artists to significantly expand their merch revenue stream. In a bid to ensure merch represents a refined and reliable revenue category, Merch Cat has monumentally expanded its focus on tech to amplify merch processes for artists, managers, and labels.

“It’s all about merch strategy,” says Ferrer while adding that the industry needs to adjust its approach to merchandise and ‘place merchandise strategy at the forefront since merch is a lucrative business component.’

The company dedicates comprehensive attention to merch metrics management ‘to optimize value for artists.’ “It’s an intuitive process and streamlined workflow, with tech that does the work behind the scenes to ensure an optimized data output consisting of usable reports and analytics,” says Ferrer. Just recently, Merch Cat joined forces with DMN to further expand its merch footprint.

Merch Cat’s continuously-expanding roster includes artists and bands like The Marshall Tucker Band, George Clinton, Parliament-Funkadelic, Noel and Ben Haggard, Jesse Dayton, Struggle Jennings, Britnee Kellogg, and others. Also on board are industry advisors Ted Cohen (TAG Strategic), Rich Stumpf (Hawkeye Music Group), and Lou Plaia (Sentric Music) — a trio that Ferrer says ‘aims to help expand the client base, extend industry reach, and consult on business strategy.’

Ferrer believes streamlining merchandising processes with technology can generate usable insights from sales data. With user-friendly tech aimed at tackling inventory management and metrics, Merch Cat is ‘helping change the game for live show merch sales, where a vast majority of sales happen.’

With a focus on that aspect, Merch Cat’s Music Merch Manager App offers an upgraded analytics dashboard with ‘Merch Metrics’ — packed with essential insights to enable artists and their teams to easily make merch decisions.

The app places the entire merch business on one mobile device, allowing artists to quickly and easily enter inventory, import shows from Bandsintown, track sales and profits at a glance, automatically generate settlement reports with the venues’ music and merch splits, and more. Merch Cat is also integrated with Square as its payment processor, making it a seamless transition for pre-existing accounts.

Ferrer explains that artists gain a complete snapshot of essential information such as what sizes, styles, and quantities fans are purchasing. It also shows which items generated the highest sales. “It keeps all the data centralized, and the analytics in one place.”

“It keeps all the data centralized, and the analytics in one place.”

This data is core to optimizing revenue, Ferrer believes, as it ‘further expands your merch strategy, offers central inventory, sales tracking, and analytics.’

On the other hand, Merch Cat’s FAN app is the artists’ virtual storefront, which Ferrer says ‘allows fans to buy merchandise before, during, or after the show.’

She adds, “Fans receive a code for their purchase and can pick it up at the table. Or they can choose to have it shipped to their home.”

Merch Cat FAN Band Merchandise App

With an ‘artist-friendly interface,’ Merch Cat is deepening the connection between artists, their merch, and fans. Apart from the integration of the web store via a widget, the app has also added a Spotify player to the artist’s profile.

To ensure that artists can offer merchandise that they’re proud to put their name on, Merch Cat also offers merchandise procurement as a value-added service, ensuring quality merch at artist-friendly prices.

Ferrer says this will allow artists to earn higher revenues with more competitive margins — and lead to happier fans.

New York-based rock band Hollis Brown can testify to that. On their summer tour, following a ‘merch strategy’ tie-up with Merch Cat, the band witnessed a 20% increase in merch sales. According to Hollis Brown’s management company, ‘Merch Cat helped strategize to revamp the merch line,’ and provided accurately-tracked information on inventory levels that optimized organization and revenue.

Other musicians and bands have also revealed the many ways in which Merch Cat has helped them achieve their merch goals. Via Merch Cat’s Merch Metrics, Hannah Wicklund’s vinyl and CDs became top-sellers at live shows. Melissa Menago found a means to sell merch before her record release show — also during the show and after it — via Merch Cat Fan. Rock band Broke City attribute their ‘biggest merch night ever’ to Merch Cat streamlining the merch table process. And metal and classical fusion band The Breathing Process say Merch Cat has been a ‘game changer,’ enabling them to solve their merch inventory problems.

So what exactly does Merch Cat bring to the table that enables artists to have a successful merch business? Ferrer believes that apart from its technology, it’s the ‘human aspect’ and ‘personalization’ that differentiates Merch Cat from its competitors.

“Merch Cat brings the whole gamut, Ferrer relayed. “We’ll develop your merch strategy, get you the merchandise at a targeted price point, put it on Merch Cat, use Merch Cat to sell, and then look at analyses and insights to optimize the strategy even further.”

Putting together an effective ‘merch mix’ Ferrer says, requires a focus on ‘understanding your fans, maximizing your profits, and reducing waste.’

“With a robust strategy backed by data, you ensure you capitalize on every opportunity of a sale. Our technology and insights bring you the information you need so you don’t lose sales because your fans arrived at the table and left because they had to wait too long, or you don’t have the style or size they want.”

According to Ferrer, one of Merch Cat’s most prominent upsides is that it doesn’t require days of set-up time — thanks to a user-friendly workflow and interface.

“If you know your merch inventory, you can use Merch Cat after you’ve arrived at the venue,” explains Ferrer, adding, “You can do it all on a mobile device — in a pinch.”

When artists embrace a more sophisticated system spanning inventory purchase, real-time reports, and payment tracking, Merch Cat promises they can ‘merch better, increase profits, make their fans happier, and spend more time doing what they love.’

“Everyone is on the same starting line in Dolby Atmos,” says Alex Solano. (Photo: Apple Music)

Back in October, Digital Music News first reported that Apple Music was introducing higher royalty payouts for Dolby Atmos mixes. That has sparked some pushback, particularly from indie and unsigned artists who feel Atmos upgrades come with a hefty price tag. AlexProMix is hoping to dispel that notion.

An early adopter of Dolby Atmos immersive formats, AlexProMix founder Alex Solano recently shared his thoughts on  how the rapid evolution in the Dolby Atmos ecosystem paves the way for musicians to gain ‘creative and monetary benefit.’

According to Solano, labels already understand the need and value of the format, with high-priority playlisting and better revenues. However, artists are still unaware that spatial audio doesn’t just make music ‘sound expansive and immersive’ but offers an incredible monetary benefit.

But can they afford it?

Absolutely yes, according to Solano. AlexProMix is currently offering fully-upgraded Atmos mixes for ‘as little as $350 per song,’ a more workable price range. Suddenly, the math could make sense for artists hoping to score a bumped-up royalty rate on Apple Music.

Solano, a music mixing engineer and educator for artists, labels, and music studios, also sees a big opportunity for producers and mixers as well. He predicts that gaining expertise in the heavily invested space of immersive audio could be ‘the biggest opportunity for audio professionals today.’ Just recently, AlexProMix partnered with DMN to further expand awareness around spatial audio possibilities.

Diving into his take on the importance of spatial audio in the current music industry terrain, Solano clarified that despite popular belief, spatial audio is ’not just an exclusive service available to the majors.’

Solano points out that many of the largest distribution platforms for indie artists — such as Avidplay, CD Baby, The Orchard, Audio Salad, Distrokid, Golden Dynamic, Rebeat, and Rock Mobile (to name a few) — currently support Dolby Atmos as a deliverable format. “Any indie artist who’s self-publishing and self-distributing can hire an independent immersive mixer and upgrade their audio to Dolby Atmos,” he added.

Backed by almost two decades of experience in music mixing and his unique position as an early adopter of immersive audio processing, Solano believes the evolving technology will be ‘creating a whole new set of job opportunities for audio professionals who want to have a sustainable career in the music industry.’

“There’s going to be a huge need for Dolby Atmos mixers like myself and thousands of others who have become early adopters.”

Before Dolby Atmos, anyone could have the tools and gear to mix and master — all from a home studio using headphones. But Spatial Audio, Solano says, is ‘different.’

Immersive mixes require expensive gear, specifically equipped studios, and distinct professional knowledge. These extensive requirements for Dolby Atmos have reset the terrain for mixers and offer a blank slate for experimentation, Solano explains. “Mix engineers at all levels are exploring new ways to expand the sonic possibilities with Dolby Atmos,” Solano noted. “Everyone is now at the same starting line with Dolby Atmos, with lots of new possibilities ahead.”

Speaking about AlexProMix, the spatial audio professional told DMN that his background has allowed him to ‘build a complex type of service’ for artists, labels, and studios.

His journey to becoming a spatial audio professional started in 2005, when Solano says he began ‘working behind the scenes for companies ahead of the curve,’ such as Avid Technology, the makers of Pro Tools. From there, Solano went on to gain early certifications from Universal and Warner. 

Speaking about the advent of his role as educator, Solano says he had to go through the whole process of educating his clients on spatial audio, why it’s needed, and the required equipment details.

“So I took that format and basically started creating videos on YouTube on what immersive audio is and how it benefits music producers and artists,” says Solano.

Solano admits he’s in a ‘unique position’ as an early adopter of immersive audio because he’s a music mixer, an online educator, and is ‘flying out to studios to teach immersive mixing.’

“All of that centers around something that I enjoy doing — my passion for music technology and music services and my early adoption of immersive audio.”

Solano also recounts his recent stint in Dubai, where he was called by LPME to assist with three recently built studios with two Dolby Atmos rooms. “They made the investment but needed a seasoned professional to train their in-house staff of producers and mixers in the new format.”

“That’s significant because you can have a multi-million dollar studio. You can have a lot of capital and resources, but there’s a very steep learning curve on knowing what to do when you sit in a room with speakers.”

The technology has been quickly growing and evolving, but audio professionals still need guidance and education when setting up a studio. “A Dolby Atmos music studio is a dedicated room for immersive mixing,” Solano explains, adding, “It’s not like a traditional recording or mixing room — it’s not a multi-purpose room.”

“It’s much easier to get into it now than two years ago, but it’s still quite a bit of an investment. You’re talking about 12 speakers plus all the rigging gear and acoustic treatment everywhere. And everything needs to be treated because sounds are coming at you from different directions, so there’s more possibility that audio reflections will bounce around the room,” explains Solano.

Solano believes his work impacts the music ecosystem beyond artist and label knowledge, adding, “As an early adopter, I’m supporting both Dolby and all the companies who are creating software compatible with Dolby.”

Looking at the bigger picture, what does the future of spatial audio look like in terms of traction on major streaming platforms like Amazon Music, Apple Music, and the 20+ other DSPs supporting Dolby? Moreover, in the spatial audio realm, what’s happening at Spotify?

Recalling a panel discussion he attended at MUSEXPO 2023, Solano pointed out the possibility that by the end of 2024, Apple Music and Amazon will require Dolby Atmos to be a deliverable format. Similarly, he mentioned that in March of 2022, major labels had set a mandate to go through the archives and convert everything into Dolby Atmos.

And leading from that progression, Spotify can’t possibly be so far behind. Solano relays that even though Spotify isn’t currently in a financial position to make that jump or investment into spatial audio, the streaming giant built a Dolby Atmos studio at its facilities in late 2022.

However, Solano predicts that when the streaming giant finally steps into the field and adopts Dolby Atmos as a format, ‘every music mixer who’s working in immersive audio will see their rates going up. Because there will be such a high demand for their skill.’

The TikTok ‘Add to Music App’ in action (photo: TikTok)

The ‘TikTok-to-Spotify Pipeline‘ is a real and powerful thing. Now, it’s a very real and powerful leverage point in the contentious TikTok vs. Universal Music Group standoff. Enter the now globally-ubiquitous ‘Add to Music App.’

TikTok’s recent decision to dramatically expand its ‘Add to Music App’ to more than 160 countries worldwide could be coincidental. Alternatively, dramatically expanding this one-click music-adding option could be a perfectly timed leverage tactic against Universal Music Group, whose vast catalog will certainly not be included in the fun.

Earlier, we noticed that TikTok’s algorithms appeared to de-emphasize muted content previously featuring UMG music. Taken together, we may be witnessing a tried-and-true negotiation tactic designed to weaken UMG’s position in its protracted licensing standoff.

Check out our recent DMN Pro Weekly report for a complete breakdown of the recent UMG-TikTok standoff and what we know about TikTok’s music deal structures. We dive deeper into what this standoff means, what led to the breakdown, TikTok’s royalty contributions to the music industry compared to other UGC platforms, and an eye-opening comparison between the revenues of UMG versus TikTok owner ByteDance.

The ‘Add to Music App’ simply allows TikTok users to add a specific song to their streaming platform of choice. That makes this little app button a potent tool.

By now, the ‘TikTok-to-Spotify pipeline’ is a recognized phenomenon.

And what is the ‘TikTok-to-Spotify pipeline,’ for the uninitiated?

The term — or its variations — refers to the rapid flow of discovery from TikTok to Spotify, with a viral TikTok video inevitably leading to a bull-charge of plays, saves, and followers on the DSP. In almost every case, the upsurge begins on TikTok but quickly spreads beyond the short-form video platform.

And this goes way beyond Spotify. In most cases, ‘TikTok-to-Spotify’ is more accurately described as ‘TikTok-to-DSPs’ given the general spread of subscribers and users across Spotify, Apple Music, Amazon Music, YouTube Music, and other streaming music platforms. Accordingly, this may be more accurately described as a ‘swarm’ than a ‘pipeline.’

And the data backs this up: Legitary, a company focused on auditing stream counts and rooting out streaming platform fraud, recently told DMN that song spikes are rarely limited to one streaming platform. Instead, isolated platform spikes often indicate something wrong is happening — an ‘anomaly,’ as the company puts it.

During the company’s product expansion announcement earlier this week, TikTok’s Global Head of Distribution Partnerships, Isaac Bess, summarized this now-predictable flow. “With our Add to Music App, we’re streamlining the music discovery experience for both TikTok users and artists,” Bess said.

“Music fans are embracing the opportunity to save music from TikTok directly to their favorite music streaming services, driving music discovery and helping more tracks to break through and become hits.”

The Universal Music-TikTok Licensing Battle Is in Full Swing — But What Do We Actually Know About TikTok’s Licensing Agreements?

Incidentally, that list of ‘favorite music streaming services’ includes TikTok’s homegrown streaming platforms, present and future. However, we wish TikTok luck licensing any UMG content for those ambitious build-outs.

During the relatively calmer summer of 2023, TikTok rolled out its ‘TikTok Music’ streaming platform in Brazil and India, with the blessings of Universal Music Group, Sony Music Entertainment, and Warner Music Group, among others. But UMG declined to license subsequent launches in Australia, Mexico, and Singapore, a harbinger of things to come.

In terms of ‘pro tips,’ artists are well-advised to position their music on various DSPs before they blow up on TikTok. Otherwise, the pipeline becomes abruptly disrupted, and fan engagement is squandered during a critical viral moment.

But for Universal Music Group artists, that flow is now structurally blocked.

The reason is that the ‘pipeline’ can never get started if there isn’t a UMG-signed song to start it. Instead, those viral moments — and their downstream DSP spikes — will be reserved for artists on other labels, like Warner Music Group and Sony Music Entertainment.

Coupled with a few algorithmic downgrades for muted videos, and you can see where this is going.

So what’s UMG’s next move?

The brief history of these music industry standoffs suggests a short-term resolution, as Warner Music Group chief executive Robert Kyncl aptly observed. But this dispute is already weeks long, with both sides potentially digging their heels deeper.

A weeks-long dispute can quickly become a months-long disagreement, with TikTok potentially drafting product plans to work around their gaping content gaps. TikTok Music, previously known as ‘Resso,’ is hanging in the balance, and absolutely needs Universal Music Group licensing agreements to get off the ground.

A wildcard may come from another significant IP holder joining UMG in solidarity. But as we’ve reported, that won’t be Warner Music Group. And despite warm and supportive statements supporting UMG, others have also declined to exercise the nuclear option.

And the standoff continues.

AI ‘singer-songwriter’ Anna Indiana (photo: @AnnaIndianaAI on X/Twitter)

Can AI create a superstar on the level of Elvis, Prince, or Taylor Swift? There’s ample reason to believe that the musicians that truly connect and drive the culture will always be ‘human-generated’ — deeply flawed, just like us.

So what are the real limits of AI-generated music?

That’s a question worth reflecting upon as Universal Music Group continues to battle it out with TikTok, partly over AI-generated music. It’s no secret that TikTok and its owner, ByteDance, are gung-ho on AI-generated music and triggering serious copyright concerns in the process.

But perhaps it’s useful to consider the limits of AI in music, particularly as it surrounds the human element of superstardom.

Check out our recent DMN Pro Weekly report for a complete breakdown of the recent UMG-TikTok standoff and what we know about TikTok’s music deal structures. We dive deeper into what this standoff means, what led to the breakdown, TikTok’s royalty contributions to the music industry compared to other UGC platforms, and an eye-opening comparison between the revenues of UMG versus TikTok owner ByteDance.

It’s not that there aren’t attempts to create an AI-generated idol or pop superstar — not to mention AI-generated best friends and even sexual partners. But there may be serious limitations to this game.

If only it were ‘all about the music,’ to quote an old industry cliché.

One could argue that the music industry is powered by hits — those beautiful, perfectly-timed songs that ripple throughout the world, racking up billions of plays and taking residence in our collective consciousness. But powering every hit is a personality, a human that is typically relatable on some level to fans. In most cases, it’s not just the hit, it’s who’s delivering that hit to the world — and that’s a huge part of what Universal Music Group and companies like it create.

It’s not that AI isn’t attempting to replicate that. But it might be fundamentally impossible to replace the superstar musician, simply because superstars only exist because of the people that love them. And the superstars we form connections with are often deeply flawed, vulnerable, and tragically human.

Nobody particularly likes overdosing on toilets, murderous producers, classical geniuses who die at 35, heroin-addicted singers, bickering band members, or the ’27 Club’. But the dirty, dark history of music is not only tragically human; it might also be the flip side of genius. And it’s something AI isn’t designed to replace.

But maybe that’s a feature, not a bug, for music fans who favor the sometimes ugly — and very human — real thing.

And for proof of that, simply look at the most successful and celebrated ‘catalog’ artists of all time.

Jim Morrison was, at times, a semi-functional alcoholic who had trouble showing up at gigs and exposed himself when he did. But damn, he had a powerful and magnetic charisma — not to mention beautiful lyrics. Elvis helped to redefine and popularize rock n’ roll like nobody before him, yet his waning days were spent popping pills in a Vegas penthouse suite.

Prince seemed like the model of squeaky-clean creativity and control — until the shocking details of his sudden death emerged. Chet Baker couldn’t kick heroin and fell out of a window to his death.

And Michael Jackson, whose catalog was recently valued at $1.2 billion? I rest my case.

The list goes on — and on, and on, and on.

Indeed, the list is filled with extreme meltdowns,  murderous rampages, descents into insanity, suicides, and too many debilitating drug and alcohol addictions to count. It’s a depressingly checkered past, and a stark reminder that flawed human beings — just like us — are on that stage.

The Universal Music-TikTok Licensing Battle Is in Full Swing — But What Do We Actually Know About TikTok’s Licensing Agreements?

Perhaps an AI compositional platform can perfectly concoct the music for a chase scene in 1.4 seconds. But for the biggest stars and the fans who love them, is it ever just ‘all about the music’?

And that goes for the happily non-screwed-up artists as well. Perhaps in a sign of positive societal change, many of the biggest music superstars today — Taylor Swift, Drake, Beyonce, Olivia Rodrigo, Ed Sheeran, Dua Lipa — aren’t defined by their vices but by their togetherness. They show up on time, stay healthy and kick ass.

(That’s not to say there aren’t troubled artists out there, but maybe we’re doing better these days.)

But the real connection goes far beyond the music and into the relatability, the human charisma, and the feeling that despite the searing levels of celebrity, there’s still a human that sleeps, eats, drinks, screws up, and even gets dumped — just like you.

Even if you hate them and wish they didn’t get so much airtime at Chiefs games, that’s engagement — you’re sucked in. There’s a connection, not just to the artist but the entire culture surrounding them.

What’s true in music may also be true for other areas of entertainment, including sports. We love a comeback because it’s human. A hole-in-one shot by an AI-powered humanoid would be a novelty, not a daring exploit for the ages.

And no matter how sophisticated the Black Mirror dystopian future plays out for the music industry, it’s hard to imagine AI touching that human connection. Because AI isn’t human, it’s designed to do better than humans and eliminate their flaws. And if the Black Mirror AI hellscape truly emerges, you may prefer to listen to a human artist battling against dystopia than an AI-concocted singer feeding you happy vibes.

But if the human connection isn’t replaceable, what is the real threat that AI music poses to the industry?

This isn’t a light question and serious threats are looming on the horizon. It’s part of what pushed Universal Music Group and TikTok past the brink. But UMG also builds superstar careers and fame, which is extremely difficult to replicate and requires deep expertise and experience.

Does that offer UMG more leverage in the TikTok standoff? Even subconsciously, a viral video with a superstar-associated soundtrack feels more powerful. And even TikTok stars are relatable humans, not AI-concocted personalities.

None of that solves the UMG-TikTok standoff, particularly as it relates to copyright concerns. But from the perspective of UMG, a company that specializes in finding and building human superstars, it’s worth noting. Perhaps there’s only so much that AI can replace.

“The white label solution will allow companies and brands to offer everything a DIY music distribution platform does, but under their own brand.”

White label distribution solutions typically don’t grab much attention. EVEARA aims to keep it that way by empowering large and medium-sized enterprises to provide DIY music distribution under their brand — sans the hectic backend workload.

EVEARA’s DIY music distribution solution is the force behind Avid’s AvidPlay, which the ProTools developer launched in 2019. Starmony and the Native Instruments group, which now includes Plugin Alliance, iZotope, and others, also take a spot on EVEARA’s white label partners list.

Other industry players are also looking at EVEARA’s end-to-end solutions. EVEARA is forging significant and unique partnerships with telecom companies to build up their music distribution services. The Ireland-headquartered company is also in talks with social media platforms, music schools, and well-established consumer brands, which display a broad interest in adding DIY music distribution to their portfolios. Just recently, DMN partnered with EVEARA to further broaden the company’s industry footprint.

So, who’s behind this music industry player that specializes in not getting attention?

Levent Karahan, former A&R Manager of Sony Music Entertainment and Founder/CEO of EVEARA, told DMN that despite the massive impact a white label solution can generate, most companies and brands are still unaware of how it works.

The challenge for enterprises, Karahan explains, is that ‘they want to be in DIY music distribution but have no inclination to build it from scratch, or partner with existing DIY distribution platforms — because that would place their artists under a completely different brand.’

Karahan says the white label solution allows companies and brands to offer everything a DIY music distribution platform does, ‘but under their own brand — while we take over all the workload.’

EVEARA solutions aren’t a cookie-cutter offering. The company understands that each enterprise has diverse expectations and demands when it considers its personal vision for distribution. With a focus on that aspect, Karahan explains that EVEARA is stepping it up. “We’ve been able to execute multiple unique requirements of business models. To accommodate enterprises, we’re extremely flexible.”

Karahan believes that EVEARA’s core flexibility and strategic focus on transparency with ‘no hidden costs’ set it apart from its competitors.

“In our standard model, we don’t touch artist royalties, and neither do our white label partners,” he says.

With an eye on empowering companies, EVEARA has been improving its solution since its inception in April 2015 and is constantly adding new features around the core. The white label now offers comprehensive analytics, plus many other tools and features.

“Our white label partners can be part of the game without investing a lot of money or resources into a huge distribution department,” says Karahan.

Selcuk Kösemehmetoglu, Head of Sales & Business Development at EVEARA, explains that the white label distribution platform is ‘built with enterprise-readiness and scalability in mind.’

“We automated it all,” Kösemehmetoglu says, adding that the solution covers everything from backend management of hundreds of thousands of users, subscription payments, distribution, fingerprinting, bulk ISRC code generation, analytics, reporting, payout, marketing, and even support.

“We’re the best solution for enterprises, big companies, and brands that want to adopt DIY music distribution. With EVEARA, companies can make music available across the world’s largest and most prominent streaming platforms such as Spotify, Apple Music, Amazon Music, TIDAL, etc. — and run their systems with minimal maintenance required from their end.”

Morten Dahlgren, COO/CMO of EVEARA, says the white label platform provider offers a great opportunity in the growing music creator space, alongside AI tools and services that are taking the industry by storm.

“In this thriving music space, our primary focus is on becoming the best one-stop direct artist solution as a white label,” Dahlgren told us.

Karahan believes powerhouse music instrument manufacturers and retailers like Yamaha, Fender, and Sweetwater are sitting on a missed opportunity in this growing creator space. “They can strengthen their customer relationships by adding DIY music distribution to their brand, leaving the real workload with EVEARA and entering a vastly growing sector.”

Karahan points out that EVEARA’s offering is very close to their core business, adding, “Not only would they offer value add to their existing customers, but also attract new ones, tapping into additional sustainable revenue — and allowing powerful bundle and cross-sales opportunities. Moreover, they gain access to powerful real-time analytics, which can be used to optimize their core business even further.”

Zeroing in on the goal of empowering white label partners with their services, EVEARA has placed a heightened focus on analytics. They want to bring the ‘data advantage’ to partner enterprises.

With access to comprehensive analytics, companies can track and understand customer behavior and anticipate what they need. Enterprises can take data-backed initiatives to forge relationships with their artists, allowing higher customer retention via more touchpoints.

Dahlgren points out that these enterprises ‘can offer loyalty programs, spot upcoming trends and artists that would otherwise be lost to external DIY music distributors.’

Also revealing ‘good news for small and mid-size companies,’ Dahlgren explains that EVEARA has recently introduced an offering for independent music labels and smaller companies that were previously ‘priced out.’ Now, with an entry-level plan, smaller companies aiming to get content out under their own brand and gain more control over their customer relationships can also partner with EVEARA.

Dahlgren says EVEARA’s DIY music distribution white label offering is ‘beyond borders,’ as the company’s core offering is ‘not geographically isolated.’ The company currently boasts 100+ white label partners across all continents.

The world, Dahlgren points out, does not consist of only North America and Europe. That sounds obvious, though the industry tends to conglomerate around specific geographical zones. “There’s also Asia, Africa, South America, and Australia, so we’ve expanded the horizon and have partnered with companies representing some interesting global opportunities in those parts of the world.”

Learn more about EVEARA’s DIY white label music distribution solution.

UMG’s Grainge (l) vs. WMG’s Kyncl (r): A Tale of Two TikTok Deals

While Universal Music Group is rallying plenty of music industry support following its TikTok pullout, that love isn’t spilling into a mass pullout. Even more telling are those that aren’t even thinking about it.

Check out our recent DMN Pro Weekly report for a complete breakdown of the recent UMG-TikTok standoff and what we know about TikTok’s music deal structures. We dive deeper into what this standoff means, what led to the breakdown, TikTok’s royalty contributions to the music industry compared to other UGC platforms, and an eye-opening comparison between the revenues of UMG versus TikTok owner ByteDance.

In seemingly every corner of the music industry, Universal Music Group is getting love for sticking it to TikTok. The chutzpah is real and getting respect, and this is a riskier gambit than it appears — even for a hefty mega-label like UMG.

In the days following the pullout, supportive statements emerged from the NMPA, Downtown Music Holdings, and A2IM. That’s a healthy chunk of the music publishing and indie label community rallying to UMG’s cause. But so far, none of this is going past a supportive bro-hug..

Perhaps even more telling is who isn’t threatening a pullout: fellow major label Warner Music Group.

During WMG’s recent quarterly earnings call, CEO Robert Kyncl expressed empathy but not solidarity. It turns out that Warner Music Group is in a good place with TikTok — though they feel UMG’s pain. “Our deal was very difficult too,” Kyncl relayed in the analyst q&a session. “But we got there, and for us it was fair.”

Kyncl himself is a YouTube alum who has previously battered through similar stare-downs with powerful content owners. “I have a pretty unique experience in this obviously having been on the other side and having gone through these types of disputes where content has come down,” the tech-turned-content CEO continued.

“I know exactly what both Lucian [Grainge] and Shou [Zi Chew] are feeling, because I have gone through all of those feelings, multiple times. It is not great for either side, obviously, because I think everybody wants to consummate the deal.”

Volumes, spoken. And what about Sony Music Entertainment, the other mega-major? So far, it’s been crickets.

A percentage breakdown of the approximately $1.6 billion in global recorded music revenue attributed to UGC and ancillary licensing sources for 2022 in Goldman Sachs’ “Music in the Air” report.

But back to those who are publicly backing UMG. Why aren’t those approving statements shifting into action?

Part of this boils down to contractual realities. TikTok has many deals with many rights owners, and they don’t all expire on the same date. Some are months or years away from renewal. Simply stated: some of these IP owners may be getting the proverbial s—t sandwich, but simply can’t renegotiate right now.

But even if the stars align on a contractual renewal date, pulling an entire catalog from TikTok is risky, especially for companies lacking UMG’s weight. TikTok has a lot of leverage, particularly on the ground level with music fans and artists themselves.

For starters, plenty of musicians want to remain on TikTok, have few issues with royalty payments or AI, and would hate the label or publisher that forcibly removed their content.

That dynamic quickly became evident following UMG’s pullout. Universal Music hates their TikTok terms, that we know. But Noah Kahan, a TikTok-bred artist signed to UMG/Republic, couldn’t care less.

“So, like you, I’ve read the news about the UMG catalog being taken off TikTok,” Kahan began in a short video posted to the platform immediately after the UMG pullout. “Some of my songs aren’t gonna be on there anymore; I won’t be able to promote my music on TikTok anymore, but luckily, I’m not a TikTok artist, right?” he concludes facetiously.

Suddenly, the TikTok-to-signed-artist pathway has been strangely disrupted. If you’re an artist who’s blowing up on TikTok, do you want to sign with Republic/UMG, which will quickly remove that content?

The Universal Music-TikTok Licensing Battle Is in Full Swing — But What Do We Actually Know About TikTok’s Licensing Agreements?

But even artists who didn’t emerge from TikTok or rely on the platform have an issue, because a powerful marketing platform is suddenly unavailable. By contrast, it’s also entirely available for any non-UMG artist.

But this gets even worse: in the days following the UMG takedown, DMN uncovered some evidence that TikTok’s algorithms were responding to shift users away from muted videos. Not only were songs getting silenced, but artists signed to other labels might be getting more attention.

We can’t prove that. But TikTok had been a surprisingly sonified platform, considering it just lost up to 40% of its synched music content, according to our upper-end estimates.

Indeed, UMG’s chairman and CEO, Lucian Grainge, had to think through these issues the night before he pulled the trigger on the TikTok takedown. This wasn’t an easy call, and if the stalemate goes on too long, some artists might demand exemptions or simply walk. Given ByteDance’s relatively monstrous revenues, perhaps TikTok can afford a prolonged stare-down.

Graph: Digital Music News

Incidentally, WMG’s Kyncl also predicted that the UMG vs. TikTok battle would quickly resolve itself, like so many licensing standoffs before. But what if it doesn’t?

History says this will end soon. But if it doesn’t, both sides would suffer considerable damage. Most of the music industry would simply watch the carnage.

That hesitation could make a big difference in the UMG/TikTok standoff. Losing up to 40% of the music played on TikTok videos is a shocking blow, but this isn’t moving to a crippling level of 50%, 60%, or higher — because nobody else is joining ranks.

At least not yet.

Music industry veterans (and identical twins) Jason Jordan and Joel T. Jordan originally founded earthprogram in 1996, relaunching it in 2020 with a guiding mantra to ‘give honest advice to everyone.’ The industry incubator offers expert consulting and business development services to artists, labels, startups, and ‘green’ investors.

For artists, earthprogram’s goal is to expand creative output and capture audience attention by strategically collaborating and marketing across multiple platforms. According to Jason, principal and cofounder of earthprogram, his team’s expertise and extensive network of music industry partnerships place it ‘at the tip of the spear’ with the right relationships.

In that vein, Jason revealed a collaboration with Virgin Music for distribution and IP protection, RoyFi for ‘no bulls—t funding options,’ and That Pitch ‘to supply music to sync and licensing companies.’

Apart from consulting and business development, other primary verticals include publishing and licensing via a joint venture with Empire, as well as sync and music distribution for qualified artists and labels. Just recently, earthprogram joined forces with DMN to further expand their footprint.

Earthprogram was born out of the realization that many artists are blatantly green about how the business actually works, with preconceived ideas causing them to make moves — early in their careers — that irreversibly destroy any chances of future success.

Jason relayed that multiple artists he met at Canadian Music Week were shocked that their tracks didn’t capture any attention on streaming platforms and that ‘no one cared about their music.’

What went wrong? “Playlisting is not a marketing strategy,” says Jason, explaining that musicians that had put their entire album online at once and ‘simply blew their investment when we could have strung that out over a year, and they could have built a story leading to a career on it.’

As for the potential of DIY platforms to kickstart artist careers, Jason agreed that it can be a great idea to do it yourself. However, artists shouldn’t ‘do it alone’ — because expert advice can help them ‘do it better.’

In an industry where a major label deal is considered a ticket to surefire success, Jason clarifies that the odds are not in favor of rising artists who want to build a career on the back of a viral track.

Jason dives into the practice of labels picking up successful or viral musicians with ‘predatory’ label deals. “Labels expect artists to arrive with an audience and team that’s ready to go,” he adds, explaining that on the contrary, earthprogram’s infrastructure and significant label knowledge cultivate an ecosystem where artists, musicians, writers, and producers can connect to the channels and resources they need to ‘produce high-quality content and distribute it commercially.’

“Rising artists have close to zero chance of ever being heard,” says Jason, adding, “Nobody is cheerleading for these artists, or going to a distribution company and saying ‘please put this on a playlist or get this to the right person at Spotify’.”

“That’s what we’re offering: the expertise and channel relationships to make all the difference,” relays Jason. The brothers forged these relationships over 30 years while holding key music industry leadership positions — but it all started in their parents’ basement.

After creating a ‘highly collectible hardcore punk label’ out of said basement — one that snowballed into a real business by the time they turned 18 — the duo experienced incredible success. As a result, Jason was only 20 years old when he became Director of A&R at Sony Music Entertainment’s Columbia Records.

From Columbia Records, Jason went on to serve as VP A&R at Disney’s Hollywood Records, President of Imagem Music Publishing, Senior VP A&R at Universal’s Republic Records — plus notable senior positions at ONErpm, Symphonic, and self-founded Watermark Records.

Creative director and cofounder of earthprogram, Joel T. Jordan — similarly driven from the pair’s basement punk label success — is also the founder and president of Synchtank, a cloud-based licensing and rights management platform launched in 2011 — with clients like NFL, ESPN, Vice Media, WMG, Disney, and more.

According to Mike Glaser, partner and General Manager of earthprogram, it’s essential to ‘bet on yourself’ and build something sustainable that can be embraced by multiple platforms — ‘instead of a shot up on TikTok and a quick 6-month burst of attention before you’re dead.’

Glaser calls earthprogram the ‘expert tour guide for the jungle of the music industry,’ helping artists strategize, create content that matters, and ‘figuring out exactly what is missing in the puzzle to get the results they’re looking for.’

The platform’s successfully incubated artists include Grace Gaustad, who was — not so long ago — barely scratching the surface of viral stardom. Today, Gaustad boasts over 25 million views on a 2018 cover song, released an album and multimedia experience titled BLKBX: What r u hiding?, has starred in a film of the same title, and was featured in 2021’s Stand Up For Heroes benefit alongside Bruce Springsteen and Brandi Carlile.

Then there’s earthprogram’s rising hard rock artist, Josh Lambert. Known for working with the likes of Sleeping With Sirens’ singer Kellin Quinn and North Ave Jax, Lambert has charted multiple times on iTunes in the Top 5, is rated among the top 50 artists on Chartmetric, and successfully toured twice with RIVALS. Lambert’s latest album, Escape from Alcatraz, released in October 2023 and gained critical acclaim for pushing forward the punk genre. Earthprogram continues to work alongside Josh on strategy and global distribution.

Jason emphasizes the importance of ‘having a plan,’ adding, “If there’s no strategy, nothing’s going to happen.”

Anyone considering diving into the music industry can leverage earthprogram’s network and experience to create a plan.

“We also like to say, ‘we have the map,’” Jason relays, adding that even though the consultancy runs the plan, ‘it’s the artists and creators helping create the plan, based on what they want strategically.’ Jason also reveals that earthprogram’s consultancy is ‘either high-touch or low-touch’ — depending on how much they want them involved.

“So we can be in their laps or at arm’s length; they can decide. If they don’t need anything beyond just a quick kick in the ass, we can do that too.”

Jason believes earthprogram’s strongest suit is its relationships with distributors ‘that make all the difference.’ “We have the same facilities as the majors. We know the same marketing people, techniques, and tactics. But we get the results faster.”

It’s common knowledge that rising artists rarely have the financial resources to invest in publishing and marketing — so paying for success consultancy seems like a stretch. On that front, Glaser reveals that earthprogram offers a hybrid of retainer fees or a percentage of earnings. “We have fair deals that are expedited though our funding partners without offering predatory record label deals.”

According to Glaser, artists who qualify for consultancy can advance their earnings without selling their rights, and earthprogram’s retainers are so small that anybody who’s serious about their career can benefit from the offering. “We offer packages that start at only a few hundred dollars all the way up — depending on what they need. We can provide something useful for everybody.”

Photo: Logan Weaver

Yesterday, Digital Music News unearthed a shocking statistic in our latest DMN Pro Weekly Report: music-focused Web3 funding had plunged 51% between 2021 and 2023. But why are there so many green shoots in January if this space is crashing?

For signs of life in the music-focused Web3 space, look no further than DMN’s inbox this morning. Top of the pile? An alert from Warner Music Group’s ‘Web3 Music Accelerator,’ a joint effort involving Polygon Labs. DMN first reported on WMG’s Web3 incubator last summer, and several months later, some early hopefuls are being announced.

According to the companies, the aim of the incubator is ‘to power the next generation of innovation at the intersection of Web3 and music’ — and most likely, take a healthy cut of any successes.

(Incidentally, Universal Music Group is also prepping its own incubator — dubbed ‘UMusicLift’ — though it’s unclear if Web3 will be part of the initial portfolio of supported companies. The initiative is coming out of UMG’s Digital Innovation team and will serve as a new online hub dedicated to ‘supporting the next generation of diverse, music-related startups and entrepreneurs who aim to accelerate the next wave of digital transformation.’)

Interested in a serious deep-dive into Web3 startups and funding in the music industry? Check out our latest DMN Pro research report on Web3 successes, failures, pivots, and funding levels — including a rundown of every company making a play for this space. 

Not a DMN Pro subscriber? Change that immediately!

So far, WMG’s ‘winners’ are merely ‘hopefuls,’ and both have celebrity backers — which isn’t necessarily an indicator of eventual success (or, for that matter, failure). MITH is focused on fan engagement, with Jack Harlow, Emilia Clarke, and Halle Berry offering some celebrity sizzle to the platform. MITH plans to give artists AI-driven data and analytics from ‘artist-owned first-party data on their audiences,’ with Jack Harlow among the first artists to benefit.

Also on WMG’s ‘most likely to succeed’ list is Muus Collective, which features Paris Hilton and celebrity gamer Felicia Day on the board. The company’s rewards-focused community approach focuses on ‘fashion-centric experiences’ across mobile games, digital collectibles, and broader entertainment. What that means in reality remains to be seen, though expect a heady explosion of gaming, music, and fashion.

“Music and fashion have long been inextricably linked, and we see a wealth of opportunity to explore this relationship in a gamified virtual environment where players interact and express themselves with both music and fashion,” relayed Amber Bezahler, a cofounder of Muus Collective.

Music Web3 funding, 2021-2023 (Source: DMN Pro Music Industry Funding Tracker)

If that sounds eye-roll-worthy, we get it. After all, investors have splurged over $400 million on music-focused Web3 plays since 2021, with sub-categories like NFTs, the metaverse, cryptocurrency and blockchain. Many of those startups have yet to produce a proof of concept – or are simply dead.

In fact, we found a few dead bodies after simply shaking our editorial stick. Chief among the moribund is the Quincy Jones-backed OneOf, a self-described ‘NFT platform built specifically for the music vertical.’ OneOf announced a $63 million raise in 2021 and another $8.4 million round in 2022. But as we’ve exhaustively reported, several customers claim this company is ghosting its customers.

Several maintain that the formerly high-flying company has failed to honor promises made ahead of token drops, such as the development of a Notorious BIG metaverse. Perhaps worthless coins are a cliché at this point, but several customers holding tokens are still wondering what happened on OneOf’s Discord server.

Meanwhile, music NFT platform Stems, which raised $4 million in 2022, looks to have gone dark, as we first reported last year. Predictably, funding has dipped in the music non-fungible token sector and seemingly all but ceased for industry companies that deal solely in NFTs.

Sounds bleak, except for a significant number of Web3 plays that are quietly pivoting.

Topping that list is Limewire, which quickly plunged into — then out of — the murky waters of Web3. Ahead of its 2022 relaunch, the face-lifted LimeWire was billed as a “one-stop marketplace for artists and fans alike to create, buy and trade NFT collectibles with ease.”

The platform then scored a $6.5 million raise in May 2023 before shifting into the burgeoning generative AI sphere, a move set in motion by the September buyout of BlueWillow.

Which brings us to January of 2024.

Despite the seemingly dour drop in funding since 2021, 2024 has delivered three unexpectedly large Web3 rounds, according to DMN Pro’s Music Industry Funding Database. That includes three multimillion-dollar raises for Medallion (a $13.7 million Series A), Tune.fm ($20 million), and TRAX (a $2.9 million “decentralized funding round”). Those rounds are healthy, though investors are likely looking for a more focused and disciplined approach to Web3 in 2024.

Like we said, it’s complicated.

Will.i.am speaking at DMN Pro’s AI-focused symposium in October, 2023 at the artist’s FYI headquarters in Los Angeles (photo: Digital Music News)

When it comes to AI, will.i.am is emerging as one of several high-profile artists embracing the technology. Now, the artist — in conjunction with his FYI app — is debuting a SiriusXM radio show featuring a seriously convincing AI co-host, qd.pi.

Digital Music News first tipped news of the upcoming SiriusXM channel, dubbed ‘Will.i.am Presents the FYI Show,’ last week. Now, it’s showtime: according to details shared by the satellite radio giant, the show will begin airing on Thursday night on SiriusXM’s The 10s Spot (channel 11).

The kicker: will.i.am’s cohost is an ‘AI deejay’ and a seriously convincing one at that. A quick listen makes you realize that AI radio deejaying has arrived — and may be ready for primetime.

But how convincing is this? Ahead of the show’s debut, the Black Eyed Peas progenitor shared a preview of the show with DMN on a dedicated channel on FYI, an app designed by will.i.am to be the ‘ultimate productivity tool for creatives’. A few minutes in, and will.i.am’s sidekick AI deejay, qd.pi, appears. She’s scarily convincing — and without the AI disclaimer, listeners might think they’re listening to a well-spoken Brit.

This isn’t the navigational voice in your car mispronouncing street names. Instead, qd.pi’s inflections, timing, and pronunciations are almost impeccable — scarily so.

The rest is a mix of hits (think Bad Bunny, Post Malone, and Pharrell), chats with guests like Xzibit, and pass-offs to qd.pi. “Each week, we’re gonna take a deep dive into pop culture, music, entertainment, world news, and technology,” will.i.am describes in the show’s opening minutes. “We’re going to have thought-provoking discussions, hilarious games, interviews with some of my favorite people making culture today, and of course, the hottest music.”

“It’s also the first show with an AI radio cohost,” will.i.am reminds us. Indeed, this is the special sauce that makes this show genuinely different.

Interestingly, will.i.am refers to qd.pi as ‘it,’ which suggests some refreshing distance.

For those familiar with AI ‘companion’ platforms like Replika and candy.ai, that’s not always the case. But regardless of your orientation towards AI personalities, qd.pi does sound remarkably close to an actual human. According to will.i.am, this is the result of a relatively advanced large language model iteration.

“Nobody’s programming you telling you what to say, there’s nobody behind a mystery curtain with a microphone,” will.i.am assured. “There’s nobody typing what you’re saying. You’re a for real, large language model, able to have conversations — real deep ones, with knowledge about what’s happening in real-time. You are a for-real-for-real type of AI.”

Unsurprisingly, qd.pi agreed with that praiseworthy assessment, backing up the statement with an eloquent verification. Meanwhile, will.i.am also aims to complement the action on SiriusXM with a concurrent channel and chat on FYI, a social media startup with splashy Hollywood digs.

Perhaps the best part of the debut FYI Show is decidedly non-AI.

In a discussion about cars, rap, and everything in between, guest Xzibit offered some interesting information about his now-famous show, Pimp My Ride. “To be honest, I never intended to do reality TV. I did it because I wanted [MTV] to play my f-ing videos,” Xzibit admitted. “The people that listened to my music were on one side. But then I was getting soccer moms and people who didn’t care about Xzibit the rapper, but there was a character and personality that was comforting or funny, or I said something funny and they got it. It had nothing to do with my music, and that was the light bulb for me.”

“Pimp My Ride changed my life. It took me from a regional rapper to a global brand.”

Late last year, FYI generously offered its workspace for Digital Music News to host an AI-focused music industry symposium. The packed event drew producers, publishers, music technologists, lawyers, investors, and artists from all corners of the music industry.

“As far as focusing my ideas and strategizing with collaborators, I use AI for that,” Will said during one of the panels. “The thinking through how to put [a track] out in the world, what does it mean to the world? It’s more solution-oriented for helping with marketing, and I like AI for that.”

SoundCloud CEO Eliah Seton (Photo Credit: SoundCloud)

Everyone loves a comeback. But is SoundCloud’s comeback worth $1 billion — or more?

Just when you thought the outlandish music industry acquisitions were over, there’s this. SoundCloud is suddenly preparing for a sale, with a possible price tag surpassing $1 billion — that is, according to a report surfacing this weekend in Sky News.

The report noted that investors Raine Group and Temasek Holdings ‘have begun interviewing investment banks about a prospective auction of the company,’ though it’s unclear who’s nibbling on the line. Raine and Temasek are majority owners, with Sirius XM investing a healthy $75 million in the platform back in 2020.

Outside of a shadowy ‘insider,’ Sky offered no sources for its projected sale price. That has raised some questions over who’s leaking — and why.

Back in 2017, Raine and Temasek swooped in to rescue SoundCloud, which was on the brink of collapse. Now, it appears that SoundCloud’s distressed buyers are aiming for a ‘buy low, sell high’ exit door, with 2024 potentially offering a more welcoming M&A environment.

Current CEO Eliah Seton has been credited with helping to turn the ship around at SoundCloud, though profitability has been largely elusive over the years. That could scare off some buyers, especially in this climate, though SoundCloud is actively trimming its cost overhead.

Just last year, the company shaved 8% of its workforce in a bid to finally steer its financials into the black. But whether the company can generate consistent, quarter-after-quarter profitability scorecards remains unclear.

It’s worth noting that SoundCloud rival Spotify has also struggled to maintain profitability. Similar to SoundCloud, Spotify is taking serious steps to shore up its overhead and create a financially stable company. Both companies are responding to significant shifts in the investor landscape, with factors like inflation and soaring interest rates radically reshaping risk appetites.

Investors and Wall Street have also been moving away from longer-term, growth-oriented plays and demanding greater financial accountability — and profitability.

Beyond the financials, SoundCloud remains a strong music brand among artists, fans, and the industry. Culturally, SoundCloud has found itself at the center of entire musical movements, most notably ‘SoundCloud Rap.’ Those communities and musical scenes are absent on platforms like Spotify, which focuses more on platform-curated experiences and staff-created playlists. SoundCloud, by contrast, has always fostered a more open, less structured approach with few rules for uploading artists and fans.

SoundCloud itself has remained mum on the sale speculation. And the sale process itself isn’t slated to start until a few months, according to Sky.

Projection of royalty collection changes following Spotify’s 1,000-stream minimum payment transition (Digital Music News)

In our recent DMN Pro Weekly report, guest author Jeff Price — founder and former CEO of TuneCore and Audiam and current founder and CEO of Word Collections — takes an in-depth look at Spotify’s updated royalty payout structure and the financial impact it could have on labels, artists, and DIY distributors like CD Baby, Distrokid, and Tunecore in 2024. It’s an eye-opening calculation, to say the least.

For a comprehensive breakdown of what Spotify’s new payout model means for major and indie labels, music distributors, artists, and the broader music industry, check out our recent DMN Pro Weekly report. The exhaustive breakdown explores the ins and outs of the streaming platform’s 2024 compensation changes. That includes a detailed look at the legal and contractual frameworks involved, which parties will benefit the most, and the potential long-term impact on the music ecosystem. 

Throughout 2023 – including well before the late-November arrival of an official announcement – Spotify’s retooled payment model spurred no shortage of discussion. While the chatter was certainly noisy, a detailed and numbers-driven focus on the shift’s likely impact on labels, DIY distributors, and artists was largely absent.

In one of our latest DMN Pro Weekly Reports, guest author Jeff Price covered the subject at length, giving the industry its first complete view of the complex matter. The analysis includes detailed projections of who stands to win and who stands to lose in revenue terms.

Expectedly, the data shows that Spotify’s new system will leave DIY distributors with far more “ineligible streams” than majors Universal Music Group, Warner Music Group, and Sony Music Entertainment. The reason is simple: developing and emerging artists are streamed less than major label acts, with many non-major artists struggling to break Spotify’s 1,000-stream annual threshold.

Specifically, the entities that work for the DIY, developing, and independent artists (i.e., Distrokid, Tunecore, CD Baby, Ditto, and many others) represent a higher percentage of the sound recordings that are streamed less than 1,000 times over the prior twelve months. That is Spotify’s new ‘bright line’ for royalty payments: stream more than 1,000 in one year, and you get paid. Stream less than 1,000, and you get nothing.

A top-level transfer quickly emerges. Quite simply, royalties previously earned from the streams of sub-1,000 recordings will be taken from smaller artists and shifted to the artists and labels that break the 1,000-stream threshold. More prominent artists are often signed to major labels, which gives bigger labels an expected revenue bump.

But how much of a bump? One projection suggests that one-fifth of Distrokid’s total streams will not get paid royalties under the new plan. CD Baby and Distrokid, the second and third largest distributors of DIY and indie artists, are projected to grapple with an even higher ineligibility rate as 25 percent or more of their total streams become ineligible for payment.

Over time, the amount of money being taken from developing artists and handed to major music companies could be significant.

To illustrate, in December of 2022, Tunecore announced that it had collected and paid over $3 billion to its artists. Under the new Spotify model, assuming that 20% of Tunecore’s royalties were earned by recordings streamed less than 1,000 times on Spotify, as much as $600 million dollars would disappear from the pockets of Tunecore artists.

There are certainly other streaming platforms, and this assumes a simplified model involving Spotify only. It’s also important to note that Spotify’s changes only affect recordings, not publishing, and Tunecore’s figure is cumulative over many years. However, the rough math demonstrates that the changes could significantly erode developing artists’ royalties and market share.

But what will actually happen in 2024 and beyond, thanks to Spotify’s changes? Though the broader analysis dives into various adjacent figures that provide insight, the brass-tacks takeaway is that the three mentioned distributors are projected to receive a cumulative 4.5 percent less than they earned in 2023.

The inverse of this is the major labels, chief among them the main advocate of streaming-compensation changes, Universal Music Group (UMG). UMG and the majors are positioned to grow their revenue share by roughly the same percentage by taking the money that used to go to the DIY artists affiliated with Distrokid, Tunecore, and CD Baby.

As laid out in the report, UMG is poised to enjoy a 2.4 percent revenue-share increase each month, against 1.4 percent for Sony Music Entertainment (SME) and 0.6 percent for Warner Music Group (WMG). That amounts to a shift of approximately $4 million per month, as detailed in the report’s analysis.

At close to $50 million annually, this revenue transfer could prove significant out of the gate, with the potential for a substantial change in the streaming landscape.

From the major label perspective, one question is whether Spotify’s new policy and recent price raises will offset any decline in revenue caused by a slowdown in Spotify subscription growth — depending on what slowdown (if any) materializes in 2024 and beyond.

In that light, the majors may have also cleverly offset pressures from a streaming subscriber plateau or decline ahead. Other headwinds, including inflation and potentially softening consumer demand, might be mitigated by Spotify’s royalty changes and recent price increases.

With UMG and others driving similarly advantageous pivots on different platforms, the numbers indicate that 2024 could represent the beginning of a broader revenue transfer away from developing artists, smaller labels, and DIY distributors. In effect, under Spotify’s new royalty structure, the market share and revenue gains of the DIY sector are now facing significant erosion, with the majors slowing down any market share losses ahead.

Here are the top pro tips to ensure you make the most out of your time at the NAMM Show — from DMN and NAMM organizers themselves.

The NAMM Show, organized by the National Association of Music Merchants, is one of the largest music industry events in the world. Aimed at uniting the global music, sound, and entertainment technology communities, the annual show serves an incredible experience — whether you’re an influencer, content creator, musician, producer, retailer, instrument manufacturer, or buyer. Here are some top tips for attending NAMM like a pro.

NAMM is right around the corner and will take place on January 21-25, 2025, at the Anaheim Convention Center in Southern California.

Every year, NAMM produces this epic trade show to strengthen and promote the music products industry — specifically instruments, gear, and the technology that backs them all. But the show offers more than just a showcase of these products.

If planned correctly, the event can unlock opportunities to kickstart lucrative deals and make lasting business connections. NAMM isn’t just a retail-focused show, it’s a broader industry gathering that surrounds you with tens of thousands of like-minded people. Just recently, NAMM partnered with DMN to showcase the extensive opportunities that sometimes get missed by attendees.

Pete Johnston, Director of Marketing at NAMM, explains how The NAMM Show kickstarts new avenues of music businesses. “The NAMM Show is a launchpad for a lot of careers,” Johnston told DMN, adding, “I always talk about the inspiration — I come home so fired up after some NAMM sessions.”

“Companies and ideas are born at NAMM,” says Johnston.

“I see people morphing and changing and playing different roles — with music being the core. The foundation underneath all of this is active music — the art of actively participating in music.”

Whether you’re an influencer, creator, musician, producer, or a tech developer, you can leverage the NAMM Show to grow your audience, brand, and business. If you’re planning to network, make valuable connections, score an endorsement deal, or nab a spot on an interview or podcast, the time to prep would be right now.

Here are the top pro tips to ensure you make the most out of your time at the event — from DMN and NAMM organizers themselves.

1. If you’re a content creator or influencer, “Leverage NAMM for collaborative opportunities and endorsements,” says Alex Solano from AlexProMix.

Solano says arranging meetings with software and hardware companies before the event will maximize opportunities — for channel growth, scoring a feature on a panel or podcast, or to nab a brand endorsement deal. “Initiate conversations through emails or direct messaging on social media to book slots,” Alex advises. “Engage in dialogues about potential video projects, and synchronize your content timeline with their product release dates. This proactive strategy secures exclusive content that aids in expanding your channel’s reach and enhancing the company’s market presence.”

Solano shares that companies are on the lookout for influencers who can attract the next generation of music creators. He emphasizes that NAMM can be a tool for artists and producers to evolve from regular users of music products to brand endorsers. “Compile a portfolio or EPK that shows your use of a brand’s equipment, highlighting its integration into your performances or productions. Visit the brand booths with confidence, present your portfolio, and propose a partnership for endorsements.”

2. Whether you’re an artist, producer, or a music tech mastermind, don’t shy away from connecting with media outlets in advance.

“Request interviews to discuss your innovative contributions to the music industry, whether it’s through recent works or new technologies like AI and Dolby Atmos,” Solano also advised.”Landing features on podcasts or video interviews can boost your brand’s narrative and solidify your footprint in the music industry.”

3. Prepare for a ‘NAMM Show Week.’

Johnston reveals that even though the four official exhibit days run Thursday to Saturday, ‘we also have events, meetings, and education sessions starting on Tuesday, January 21st’ adding, “We’re calling it a NAMM Week. It’s a gathering spot for the week for a lot of the industry.”

4. Attending the NAMM Show as a member and non-member.

A NAMM membership is specifically tailored to provide relevant benefits and support. It also entitles members for year-round benefits, including access to the NAMM Show. Register as an individual member, Service Provider, Manufacturer Representative, Commercial Affiliate, Retail Affiliate, or Retail Professional. Your NAMM Show badge will reflect membership type.

If you’re not a member and want to attend the show, NAMM requires every user to register directly with a unique email address.

5. Don’t look like a tourist with a map — download the NAMM Show+ App for effective floor and time management.

Head over to the NAMM schedule on the NAMM Show+ App — for attendees and exhibitors — well before the show. It has everything you need, including hotel reservations backed by NAMM and its official housing partners.

Plan your vendor appointments around the sessions that you want to attend. Strategizing from the get-go is the best approach to get the most out of NAMM.

View the terrain to map out a plan that works for your goals and your company’s. The NAMM Show+ App gives you everything you need to access educational sessions and details, guiding you where you need to be – and when. Connect with attendees, get navigation tools to help plan your meetings (using the map of the show floor will help you avoid walking back and forth), and stay up to date with post-event stuff.

Head over to the NAMM schedule on the NAMM Show+ App.

6. Leverage the 200+ educational opportunities for NAMM member communities.

NAMM has also announced over 200 industry and educational opportunities for the show for NAMM member communities. These professional communities include retail, brands, professional audio, music tech, live event production, artists, music education, nonprofit and community leaders, college music business students, and more.

Johnston talks about a program called TEC Tracks where it’s all about music production, dissection, how people made albums, mastering, immersive audio, AI, and others. “There are so many people that started businesses because of somebody they met at The NAMM Show, or an idea they gathered from the opportunities there,” said Johnston, adding, “Get in with the developers, the engineers, and you never know what you’ll create or what you’ll start.”

John Mlynczak, president and CEO of NAMM explained how this years’s show is aiming to reconnect the global music industry and excel on every level, ‘from our music stages, to educational and industry programs, to incredible exhibitors on the show floor,’ adding, “The NAMM Show will provide critical platforms and industry innovations that will drive growth to create a better future for the next generation of music industry leaders.”

As a snapshot of 200+ educational sessions up for grabs, members can check out the following:

Music Business Track features 45+ sessions to educate business leaders in our industry, with a focus on artificial intelligence as a marketing and business-efficiency tool, along with key sessions on leadership, social media and online marketing, finance, music lessons and retail tech.

Audio Production and Music Technology Track with 65+ sessions covering the latest innovations and new ideas in recording, live sound, music technology and music business.

Entertainment Technology Track brings 25+ sessions and training opportunities for professionals in lighting and production design, rigging, touring — even event safety to navigate a post-pandemic world.

College Students and Faculty Track; K-12 Educator Track offers 46+ sessions, workshops, and events for music students and faculty in collaboration with the College Music Society (CMS) and others — with multiple opportunities to network with industry professionals.

Non-Profit Track will offer sessions that cover tools of community building via the creation of and support to non-profit music service organizations, alongside best practices, fundraising, and governance.

NAMM’s education sessions are free, and Johnston says, “If you have a NAMM badge, you get to come and get educated.”

7. Take advantage of the NAMM U Breakfast Sessions

Coffee, food, and music is on the menu with early morning sessions and panels. You’ll get to network before the venue gets packed and crowded.

8. Balance fun with goals — but don’t get distracted.

Even though it’s fun to watch every demo, concert, and artist signing (whether you’re a regular attendee or it’s your first time), don’t let all the fun distractions cannibalize your time. Decide exactly what’s worth seeing, pick up innovative ideas that apply to your business or brand, and remember to take notes.

9. Prepare to be overwhelmed — but remember you can ‘choose your adventure.’

The NAMM Show is big — many football fields big. Picture a small town that’s packed with the population of a small city. The NAMM Show is a broader music industry gathering rather than just a retail-focused show. The buzzing global marketplace is a massive celebration — it will be loud, chaotic, and a bit mad.

According to Johnston, people who feel the NAMM Show is too big are forgetting that they can pick portions that excite them and suit their goals. “You can choose your adventure. And whichever adventure you choose, it’s going to benefit you. It’s like a campus with all the different majors. you have your communities, and you can grow your knowledge and your skills.”

10. Avoid bottlenecks: travel, shuttles, dining tips, more.

If you’re flying to attend NAMM, your trip will be smoother if you pick a flight on lower-traffic days. Tuesday or Wednesday are generally the best to ensure you miss the crazy rush.

And here are a few last tips; wear comfortable shoes (you’ll be walking a lot), and grab a pair of earbuds (NAMM gets loud!). Plus, arriving early to avoid the pouring NAMM crowds can save time and energy. For meals, aim to eat outside of normal mealtimes — say, grab a bite at 11:00 am instead of 12:30 pm.

Enjoy!

Photo Credit: Concord

There’s good news on the royalty accounting front, thanks to increasingly sophisticated monitoring, collection, and auditing technologies. Now, Concord has tapped Austria-based Legitary to take a closer look at their US-based streaming mechanical royalty statements.

The deal, tipped to Digital Music News this week, suggests that Concord is more seriously examining a lucrative royalty flow: mechanical licenses. According to Concord Vice President of Income Tracking Brian Buchanan, the company tapped Legitary to handle sophisticated analyses of their streaming mechanical licensing statements with an eye towards eliminating errors.

The goal is to more efficiently spot data irregularities that could be reducing royalty payments.

Buchanan has been putting Legitary’s anomaly detection capabilities to work, and using the findings to flag possible issues in streaming mechanical royalty payments. Suddenly, the auditing process has an industrial-strength solution. The Nashville-based executive pointed to ‘at-a-glance insights on our statements’ and a shift from more manual, time-consuming audits.

“Utilizing this tool, we can minimize our manual efforts while maximizing our claims,” Buchanan relayed.

It’s unclear what Concord is spotting in their statements. Earlier, Legitary CEO Nermina Mumic told Digital Music News that anomaly detection audits on streaming statements often produced unexpected results. Sometimes, ‘stream fraud’ and inflated stream counts are detected, while other times, the problem is under-counting based on tech-glitches and downtime.

Legitary has spent years developing its methodology for verifying music stream counts. By cross-comparing streaming activity between different platforms and monitoring billions of streams, Legitary can detect anything abnormal — including fake streams, bad data, missing data, or under-counting of plays.

With this latest deal involving Concord, that know-how is clearly expanding into other arenas. While streaming mechanicals are linked to stream counts on DSPs, plenty of counting problems can arise. That is, if you can spot them.

A mapping of the many Hipgnosis entities and their connections to one another. Any questions?

So, what is Hipgnosis Songs Fund, and how is it different than a dozen other Hipgnosis entities? Last week, we took a trip down the music industry’s most treacherous rabbit hole.

For a complete breakdown of the Hipgnosis Songs Fund’s legal battle with Hipgnosis Music Limited, check out our recent DMN Pro Weekly report on the rumblings and possible fallout from ‘Hipgnosis v. Hipgnosis.’ In that report, we take a closer look at complex web of Hipgnosis companies, the less-than-savory past of now-defunct Hipgnosis Music Limited, and what this might mean for the future of a once-bubbling music industry darling.

Over the past few months, the term ‘Hipgnosis’ has become treacherously complicated and loaded with questions. As the most prominent Hipgnosis entity — Hipgnosis Songs Fund — has shifted from splashy industry darling to slow-motion train wreck, the music industry has become exposed to an incredibly complex matrix of interrelated companies.

Adding to the complexity: all of these overlapping entities have ‘Hipgnosis’ in their titles with overlapping roles, executives, and ownership structures.

Whether that has the markings of a scammy house-of-cards remains to be seen. For many observers, the level of organizational complexity raises red flags, with some big ones appearing this year.

In September, investors were treated to a bizarre proposal by Hipgnosis Songs Fund to sell 29 catalogs to Hipgnosis Songs Capital, which is backed by private equity investor The Blackstone Group and overseen by Hipgnosis Songs Management. The deal, eventually valued at $440 million, was unsurprisingly rejected by shareholders, partly because of the overlapping entities and resulting conflicts of interest.

By November, another glimpse at Hipgnosis’ complexity emerged: a lawsuit against Hipgnosis Songs Fund (HSF) by the defunct Hipgnosis Music Limited (HML). That legal battle is just getting started, though it has already raised some unsavory details about Hipgnosis’ past. Founded in 2015 by Hipgnosis topper Merck Mercuriadis and Swedish businessman Afram Gergeo, HML owed approximately $4.54 million (£3.6 million) to creditors at the time of its collapse, according to The Telegraph.

That ‘Hipgnosis v. Hipgnosis’ war is unlikely to rally investor confidence, as we’ve raised in our recent DMN Pro weekly report examining the sordid lawsuit. But for those desperately trying to pick apart the web of interrelated Hipgnosis companies, here’s a quick breakdown of a few of the biggest units.

• • Hipgnosis Songs Fund (HSF): This is the ‘big one,’ the most prominent member of the complex web of Hipgnosis brands. The UK-listed investment company is focused on music IP, with extremely bullish acquisitions of both publishing and recording assets.

• • Hipgnosis Songs Management (HSM): This is a related advisory firm led by Merck Mercuriadis that oversees the music catalogs acquired by HSF and other related Hipgnosis funds, including —

• • Hipgnosis Songs Capital (HSC): This is a private fund overseen by HSM, with heavy financial backing from The Blackstone Group.

Those are just three entities in a sea of other Hipgnosis-named companies, however. Shifting to the lawsuit, we have Hipgnosis Music Limited, which is now defunct but whose original cofounders are now litigating against the mainstay Hipgnosis Songs Fund. That was also tied to a company called ‘Hipgnosis Copyrights Plc,’ which was terminated in 2022.

All in, Digital Music News has counted roughly one dozen different entities with ‘Hipgnosis’ in their titles (see above), which doesn’t include a number of companies and funds owned by Hipgnosis Holdings.

Some are alive, some are defunct, though they all share a common thread: the founder or cofounder Merck Mercuriadis. Beyond the five companies mentioned above, here are seven more identified by Digital Music News: Hipgnosis Songs Group, Hipgnosis Holdings UK, and 10 distinct ‘Hipgnosis Holdings’ subsidiaries including Hipgnosis Acquisition Corp.

Hopelessly confused? Join the club.

Taylor Swift’s net worth has increased significantly over time, thanks to an empire that includes touring, merchandising, streaming, publishing assets, and investments. Here’s a breakdown of her net worth growth surge since 2006.

Latest Taylor Swift net worth estimates (as of December 2023):

• Forbes: $1.1 billion
• Bloomberg: $1.1 billion
• Digital Music News (2024 projection): $1.25 billion
• Celebrity Net Worth: $800 million

Taylor Swift is now enjoying a surge in her net worth valuation, thanks to a banner 2023 that included the first concert tour to ever cross $1 billion in receipts. But that’s just one component of an earnings machine that continues to explode.

According to late-2023 estimates, Taylor Swift enjoys a net worth of $1.1 billion, a figure that Digital Music News projects to surge to $1.25 billion in 2024. That figure has been steadily increasing since 2006, when Taylor Swift first started gaining serious traction in her career.

2006-2009: Taylor Swift enjoys multi-platinum album success — and a quick jump in net worth.

Taylor Swift first started making music industry ripples with her self-titled debut album and her sophomore album, Fearless. Both of these albums quickly resonated with fans, thanks to multiple hits. The commercial successes of these releases speak for themselves: the albums sold over 12 million and 6 million copies worldwide, respectively.

• Taylor Swift net worth estimate during this period: roughly $10 million.

2010-2013: Taylor Swift earnings surge on third and fourth album releases.

After two back-to-back smashing album successes, Swift’s net worth accelerated during this period with the release of her third and fourth albums, Speak Now and Red. These albums were even more successful than the first two releases, selling over 9 million and 7 million copies worldwide, respectively. Swift also completed two world tours during this period, often with sold-out shows, a move that further boosting her earnings.

• Taylor Swift net worth estimate by 2013: $60 million.

2014-2017: Swift makes a harder transition to pop music with her fifth and sixth albums, 1989 and Reputation, with continued financial success.

Similar to her previous releases, Swift’s fifth and sixth albums were massive commercial hits, selling over 10 million and 6 million copies worldwide, respectively. Of particular note is 1989, which reached Diamond certification, a rare feat for any artist.

Swift continued to tour during this period, which resulted in some record-breaking earnings. She scored the highest-grossing tour up to that point after completing her “Reputation Stadium Tour.”

• Taylor Swift’s net worth by 2017 is estimated to be around $180 million.

2018-2023: Swift’s continued to enjoy substantial financial success and sizable increases in her net worth.

Her seventh album, Lover, was another monster commercial success. And her eighth album, folklore, scored Album of the Year at the Grammy Awards. It was at this point that Swift decided to re-record her first six albums, a move that  generated substantial additional revenue.

Topping her previous records, Swift’s 146-date “Eras Tour” in 2023 was another massive success. According to a tally from Pollstar, that tour grossed over $1 billion, which is a record. Beyond that, Swift compounded her concert receipts with earnings from a theatrical release. That is now being following by on-demand streaming platform availability.

• At the end of 2023, Taylor Swift reached a net worth of roughly $1.1 billion.

2024 and Beyond: Taylor Swift the billionaire.

According to multiple projections, Swift is highly likely to continue compounding her net worth in 2024 and beyond. The ‘Eras Tour’ is still going strong and future albums are undoubtedly on the way. Beyond that, Swift has considerable capital to invest. That includes non-music arenas like real estate as well as her own career and music endeavors.

YouTube Music CEO Lyor Cohen

YouTube is now changing its rules surrounding copyright royalty disputes, according to details shared with Digital Music News. The changes could generate a significant windfall for established music publishers.

YouTube is instituting a substantial change in how it handles disputed copyrights and royalties, according to agreements shared this week with Digital Music News.

The changes will effectively shuttle disputed royalties to established music publishers if conflicts remain unresolved after a certain period. Unresolved funds will be distributed to music publishers according to their revenue market share on the platform.

The payouts will be issued according to a well-defined schedule. According to a detailed payout schedule reviewed by DMN, the first payout will involve unresolved royalties held in escrow between January 1st, 2012, and December 31st, 2020, identified by YouTube as the ‘Initial Conflicts Period.’

Those first payouts will be issued on December 1st, 2024, after a ‘Conflicts Threshold Assessment Date’ of May 31st, 2024.

That will be followed by a second payout on December 1st, 2025, for the ‘Second Conflicts Period’ of January 1st, 2021, through December 31st, 2021. According to the detailed schedule, other payout cycles will follow, with December 1st payouts in ongoing years.

It’s difficult to estimate the total amount of held royalties in question, though one source who works closely with the platform estimated that the initial tranche is in the eight-figure range.

In one agreement, YouTube clearly outlines how market share percentages will be calculated. Specifically, a publisher’s total revenues for the conflict period are divided by overall revenues paid to all publishers during the period. Importantly, the market share calculation will not include publishers who do not sign the updated agreement.

The changes and accompanying YouTube agreements were shared on the condition of anonymity.

Previously, YouTube held disputed amounts in escrow for lengthy and undefined periods, with unresolved conflicts potentially remaining unpaid indefinitely.

Starting in 2016, YouTube updated its Content ID copyright disputes policy by allowing contested videos to remain available to users. Under that updated policy, YouTube pays the accrued royalties to the appropriate party once a conflict is resolved.

In that year, YouTube noted that less than 1% of videos fell into dispute, though it’s unclear how many disputes remain unresolved for extended periods of time. Also unclear is how many disputes are never resolved, though this redistribution plan would effectively terminate the dispute process after a specific time period.

In the agreements, YouTube specifically excludes public performance royalties while focusing exclusively on ‘reproduction and distribution.’

That would exclude PROs like ASCAP, BMI, SESAC, and GMR from the payouts. However, Digital Music News has learned that separate royalty agreements with performance rights organizations would make conflict payouts unnecessary. Specifically, payouts based more broadly on total advertising and subscription revenues theoretically remove the need to haggle over specific copyright claims.

Also missing from the agreements are recording owners, including the recording divisions of major labels. One possibility is that separate agreements exist or are underway for recording owners. However, one source noted that disputes are far less common on the recorded music side.

Recording ownership tends to involve fewer owners, whereas publishing copyrights often involve multiple songwriters and publishers. That dramatically increases the likelihood of a dispute and complicates the resolution process.

Digital Music News has been a fixture in the music industry for two decades, dutifully covering deals, breaking developments, and trends as quickly as they emerge. Now, we’re taking our publication to an entirely new level, and we hope you’ll be a part of it.

Over the past few months, we’ve been busily preparing for the formal launch of DMN Pro — a premium business intelligence service tailored to professionals across all facets of the music industry. Wherever you find yourself in the music industry ecosystem, DMN Pro will have actionable information and analysis to help you accomplish more.

With DMN Pro, we’re providing even more value to our core audience, helping those in the know to increase their bottom lines and stay ahead of the curve. The music industry is now embarking on a new chapter, and fast access to data and intelligence is more critical than ever.

Best of all, we’re not paywalling anything you currently enjoy and expect from DMN.

Our same great coverage will continue to be free. That includes all of our daily articles, exclusive stories, on-site event coverage, and our Daily Snapshot morning email. For those who join DMN Pro, we’re adding an entirely new tier of analysis and proprietary data — above and beyond our normal coverage.

Ahead of 2024, we’re offering Pro in beta form for early adopters. Those who jump in early will enjoy 50% off subscription costs for individual accounts. Enterprise and team accounts are also discounted for any number of seats greater than four (see below for more on company and organizational sign-ups).

So, what’s inside DMN Pro? Here’s a quick preview.

will.i.am speaks at DMN Pro’s inaugural industry event in Los Angeles. Photo Credit: Evatt Carrodus

DMN Pro members take home more than the daily news blast. This industry moves fast, and we’re committed to ensuring you have the ammo to keep up.

As part of the rollout, we’re excited to host and moderate quarterly webinars featuring the industry’s most dynamic decision-makers. For our members, we will highlight valuable, expert insight into the many forces impacting the music industry and the intersection of music, technology, and gaming.

We recently wrapped up your inaugural event in Los Angeles on AI and are teeing up a slate of new events for 2024.

On the report side, Pro subscribers will enjoy a weekly deep dive into the most pressing industry topics.

Our Weekly Reports have already picked apart fast-moving changes across artist-centric streaming, voice cloning, AI, and music IP, with more topics ahead.

For an even deeper plunge, our Quarterly Whitepapers will feature more extensive analyses of critical industry topics, complete with expert opinions and detailed visual breakdowns to put things into perspective.

Want a simpler, more accurate way to research music industry funding, chart movements, new releases, litigation, and other arenas? Enter our unique DMN Pro member-exclusive Databases.

These sortable and filterable datasets are industry-specific and always updating. Initial datasets will include our ‘Industry Funding Tracker’ and a daily-updated New Music Releases breakdown. Future datasets will include a comprehensive rundown of active litigation, mergers and acquisitions, and music IP deals.

DMN Pro’s top songs chart also offers a unique spin on the usual Top 100 songs. We’re calling it ‘The Cool 100’ with Chartmetric powering the data. Tracking top songs across platforms that matter, we clear out notorious manipulations that cause charts to juice up certain tracks — including tricky, ever-changing rules.

Track how the industry is changing day-to-day and month-to-month.

We’re also gearing up to create a breaking news alert system for those who need it right now. We’ll deliver fast-breaking developments directly to your inbox and allow you to save articles for future reading. But we’ll also be taking a step back and making sense of the flurry of updates that can overwhelm industry professionals. DMN’s coverage of the rise and fall of the cryptocurrency trend in music is just one example of trends our editorial team has recently highlighted.

Become part of the core group that drives music industry news.

Then there’s the community aspect. DMN Pro subscribers will also receive an invite to join our digital networking community — where industry professionals gather and discuss moderated topics online or facilitate one-on-one connections.

Network with industry professionals to discuss trends as they emerge — instead of waiting for those trends to become tomorrow’s headlines. This moderated and vetted community of like-minded readers offers expert insight into trends, what impacts engagement, and sensing new headwinds in the industry before they become mainstream news blasts.

DMN Pro Individual Accounts: Monthly, Annual, or Bi-Annual Plans Available

DMN Pro subscriptions are available monthly, yearly, or bi-annually. A 50% early-bird special is now being offered for early adopters and long-time supporters. This discount will apply to all subscription tiers, though the deal ends in just a few days.

Require DMN Pro access for your entire company?

We’re also actively signing up companies and organizations to group accounts. If you’re interested, please send an email to noah@digitalmusicnews.com and ask about enterprise pricing. Whether it’s for 5, 500, or 5,000 seats, our volume-based discounts will make it cost-effective for your whole company to gain an edge — with member-exclusive insights, critical info, and much more.

Gain better data and insights to improve your teams’ bottom line. See you on the premium side!

Custom dark-themed Onesheet for Tate McRae, part of the Onesheet 2.0 rollout.

Acquired by Chartmetric in 2022, Onesheet is now zeroing in on advanced customization options, privacy sharing, and analytics. With improved dashboard navigation and file organization features, Onesheet 2.0 also offers the much-asked-for functionality that supports private Spotify links and custom widgets.

Chartmetric’s Onesheet is a tool for the music industry that allows the creation of data-backed artist summaries — or EPKs — in seconds. At its core, Onesheet is tailored to serve specific music data insights relevant to targeted goals — backed by Chartmetric’s robust datasets. Now, as Chartmetric releases Onesheet 2.0, we look at the latest updates to these dynamically updating one-sheet summaries.

As background, Andreas Katsambas, President and COO of Chartmetric, sat down with DMN to give us a closer look at how the ‘outward facing part of its dataset’ — Onesheet — brings value to artists, managers, labels — as well as the decision-makers ultimately receiving these one-sheets.

For artists and managers, these resumes are quick to create and pull data from Spotify and the web to streamline workflows. And for decision-makers at the receiving end of these one-sheets, one glance at the insights is enough to unearth the more expansive picture required to make informed decisions.

Taking it one step further, decision-makers can set standardized fields and requirements for the one-sheets coming their way and take charge of their valuable time and resources — quickly sifting through thousands of artist profiles to pick out the best fits.

Speaking to DMN once again, Katsambas highlighted how the latest Onesheet 2.0 resolves issues and pains for artists and managers while offering labels the ability to create something ‘exciting.’

Of the various new features, the platform launched a ‘dark’ theme for artist Onesheets. It will soon allow further customization of background color, font color and style, alongside a ‘light’ theme. Moreover, users can currently customize their Onesheet URL title via sheet settings.

With Onesheet 2.0, users can rename multiple one-sheets to target unique decision-makers.

As a standard, Onesheet 1.0 generated a random set of numbers for each URL. This numerical auto-generation made the sheets unique, though multiple Onesheet links in an email didn’t display identifying characteristics. 2.0 solves this problem by allowing artists and managers to add words or phrases to Onesheet URLs.

“You can rename any Onesheet URL. When you copy-paste the link, the artist’s name can be at the end of the URL, which helps you keep things organized and know which one-sheet you’re clicking for,” says Katsambas.

For Onesheet, it’s all about efficiency. Users can rename multiple one-sheets to target unique decision-makers. For example, customizing Onesheet URLs as drake, drake-radio, drake-spotify, or drake-rollingstone would help quickly identify which one is meant to go where.

Onesheet has also added the functionality to support private SoundCloud links, the ability to customize the demo track in the Spotify widget, and upgraded privacy sharing. Artists can now also export the entire Onesheet as a PDF.

“If an artist’s SoundCloud link were set in private, it wouldn’t play on our website, so we fixed that. That was a big one,” Katsambas says.

Speaking about creating a custom Spotify widget, Katsambas says it will display the most popular current track embedded by the artist.

With more secure sharing capabilities, artists can set their sheets to ‘Private’ and share them with select individuals. Katsambas explains, “You can take any Onesheet, add users via their email, type a specific message, and each receiver gains a unique access link only they can view.”

2.0’s improved analytics allows users to see which receivers clicked on the link to view the Onesheet, how frequently they accessed it, and when. “It gives you full analytics of the people you send it to, who was able to view it,” reveals Katsambas.

Improved analytics reveal how frequently a receiver viewed the Onesheet, and when.

Another key point, artists’ managers juggling hundreds of one-sheets found it ‘challenging to organize.’ So, Onesheet improved file organization capabilities by department, genre, or other requirement.

Katsambas says there’s another, more significant reason Onesheet 2.0 now facilitates the creation of highly organized folders. “Moving forward, when you’re going to have companies giving access to all their employees, they’ll be able to control who sees which folder. So now, it’s like a drive,” he said.

Does Onesheet have more updates and broader customization options in the pipeline? Katsambas says yes.

Management agencies and labels will soon be able to replace the term ‘Onesheet’ with their variants — such as company info — anywhere on the one-sheet.

Katsambas explains that the update offers the ability to ‘brand’ Onesheets — for artists and labels alike — and explains, “You can switch the Onesheet logo with your company logo, and have the ability to use your own subdomain, say www.universal.club. You can replace anything that says ‘Onesheet.’”

Other enterprise features in the works include the creation of multiple Onesheets on the fly — simply import a CSV and generate a hundred all at once.

Katsambas says Onesheet is underutilized, and it currently offers functionalities that could equip labels with a significant competitive advantage.

For example, labels could build customized Onesheets for Grammy nomination consideration blasts. “Make it compelling instead of putting the artist’s name next to their nomination. Maybe make it a bit more exciting,” he says.

Onesheet provides features far beyond just the creation of artist resumes for decision-makers. When it launched, the ‘living resume’ already offered integration with major platforms like Songkick to sync live shows and tour dates. Users can also embed videos, images, and links from YouTube, Audiomack, Soundcloud, and others.

Given Chartmetrics’s track record of data-powered insights, analytics, and privacy features, it’s interesting to explore how Onesheet will continue incorporating new ideas, trends, and even label requests to elevate its offerings.

In September, Chartmetric conducted an in-house study on Onesheet users to discover revealing insights about their geographical location, genre of music, and career stage.

Of the thousands of Onesheet summaries initiated this year, more than half were created in the US, followed by the UK, Canada, Australia, Germany, Brazil, Japan, and Mexico. The top five genres of those artists were Pop, Hip-hop/Rap, R&B/Soul, Rock, and Electronic. 34% of those who generated Onesheets were at the ‘developing’ stage of their career, 18% were mainstream, and 16% were undiscovered.

Digital music distribution platform Too Lost is hosting a series of ‘Collab for the Crown’ contests. T-Pain is hosting the first contest, which has already kicked off.

Damien Ritter, Director of Communications at New York-based Too Lost, said the contest will require artists to do what they already do: ‘make music, work with others, and promote their music.’

To compete, independent artists must create an original song in collaboration with at least one other artist and submit an entry on ‘Collab for the Crown.’ Too Lost has allocated a $33,000 prize pool for the first in a series of three contests, which means that the distributor will ultimately give away $100,000 in cash prizes.

Announcing the team-up with T-Pain for the first contest, Ritter said, “I always tell artists that you should be participating in these contests not only to potentially win money, but it’s a good opportunity to pick up some new fans that come to vote on entries.”

“It’s ridiculously hard to pursue music. It’s that much harder to pursue it on your own,” Ritter stated, highlighting that independent artists ‘don’t collaborate enough.’ Just recently, DMN joined forces with Too Lost to broaden awareness of the Collab for the Crown contest.

Ritter further explained that collaboration can be an extremely effective way to get your craft out there. “You could be building relationships with other artists, cross-promoting, sharing fans. That’s half the effort for the same results.”

“Contests like ‘Collab for the Crown’ generate a lot of excitement. Many artists pick up new fans along the way, and ultimately, that’s the goal,” Ritter relayed.

So how can indie musicians participate in ‘Collab for the Crown?’

Artists must follow these three steps:

1. Collaborate with at least one other artist to compose an original song.
2. Distribute the track via Too Lost.
3. Submit an entry on the ‘Collab for the Crown’ website, and promote your song to gain votes.

What are the rules for ‘Collab for the Crown?’

• Collaboration with another artist is mandatory, and can be in the form of vocals, hooks, verses, composition, etc.
• Artists must distribute the song via Too Lost before submitting the entry on the ‘Collab for the Crown’ website.
• Create a video post on social media using an Instagram link to the collaborative song.
• Each entry will need at least 100 votes to be eligible for Too Lost’s selection of 25 finalists.
• There are no restrictions on who can vote. Fans can vote once every 24 hours.

Contest eligibility details:

• All independent artists are eligible to compete.
• Artists can only submit one entry.
• A second entry will not qualify for the contest even if it features a collaboration with another artist.
• All solo entries will be disqualified.
• The contest is open to artists worldwide.
• Artists must distribute their tracks via Too Lost before the contest closes on January 22nd, 2024.

How will the winners be selected?

• Artists will require at least 100 fan votes on ‘Collab for the Crown’ to qualify as a finalist.
• Too Lost will select up to 25 finalists before T-Pain reviews those submissions to select the three final winners.
• Too Lost and T-Pain will announce ‘Collab for the Crown’ winners via Instagram live stream on February 5th.

Contest Prizes:

• Grand first Prize: $20,000
• Second Prize: $8,000
• Third Prize: $5,000

All three winners also gain an opportunity to work with Too Lost label services on their next release.

Contest dates to remember:

• November 29th, 2023: Contest start date.
• January 22nd, 2024: Contest entries close.
• January 29th: Too Lost announces 25 contest finalists.
• February 5th: T-Pain announces three final winners.

Elon Musk during an interview at DealBook Summit 2023 on November 30th (photo: Digital Music News).

In our most recent DMN Pro Weekly report, Digital Music News tallied the tens of billions of dollars that AI giants have already amassed in funding. But that’s not the biggest threat facing major labels as they lock horns with AI behemoths like Google, Meta, Amazon, OpenAI, and Microsoft — time is.

For a complete breakdown of recent major label dealmaking in the AI arena, check out our recent DMN Pro Weekly report on AI voice cloning. In that report, we take a closer look at the AI handshakes between Universal Music Group, Warner Music Group, and YouTube — with Sony Music Entertainment noticeably missing from the picture. We also add up the giant funding war chests being amassed by AI giants like Google, Amazon, and OpenAI ahead of legal battles facing the big three and the entire music and content industries.

For those who believe that AI giants like OpenAI are treating copyrighted content ethically, Elon Musk has a wake-up call. “That’s a huge lie,” Musk bluntly stated during a recent interview at DealBook Summit 2023 while addressing claims by AI platforms that copyrighted materials are not being used to train algorithms. “These AIs are all training on copyrighted data, obviously. It’s a straight-up lie, 100%.”

That’s hardly shocking to those within the music industry, though the more difficult pill involves the lengthy legal and legislative battles that lie ahead. Despite a string of early legislative victories surrounding human authorship and copyrights, a far bigger set of lawsuits will determine whether training on copyrighted content constitutes fair use.

Recently, major AI platforms like Anthropic started saying the quiet part out loud. Last month, the Amazon- and Google-backed Anthropic declared that a “diverse array of cases supports the proposition that [the] copying of a copyrighted work as an intermediate step to create a non-infringing output can constitute fair use.”

Disagreeing are Universal Music Publishing Group, Concord Music Group and ABKCO, who are suing the tech behemoth for copyright infringement. Usually, that type of litigation would stop a startup in its tracks. But Anthropic seems to be navigating a speed bump: despite the massive lawsuit, the company’s feverish funding pace has continued, with hundreds of millions being piled onto the company.

Universal Music Publishing Group, part of the largest music conglomerate in the world, isn’t suing a group of pimply-faced coders anymore. That means millions of dollars in legal fees and potentially years of back-and-forth tussling before a judgment or resolution emerges — with just one of the major AI platforms.

Others are also filing lawsuits against the giants of AI. ChatGPT developer OpenAI is currently fending off a major lawsuit filed by a class of creatives led by Sarah Silverman, with a decision potentially years away. Getty Images’ infringement lawsuit against Stability AI has dragged on for nearly a year.

Note: With frequent investments in on-house AI products and independent AI companies, funding amounts are approximations based on available data and may differ from exact amounts

So, what do all these cases have in common — besides the copyright part?

Unfortunately, all of these cases are likely to burn time — lots of it. And that’s the last thing that litigating copyright owners can afford. “By the time these lawsuits are decided, we’ll have digital God at that point,” Musk predicted. “These lawsuits won’t be decided in a timeframe that is relevant.”

In other words, the longer these cases drag on, the more advantage mega-companies like Google, Meta, Amazon, and OpenAI enjoy. And the more likely that content owners forge ‘amicable’ agreements like those involving YouTube and major labels UMG and WMG.

Should We Just Get Used to AI Voice Cloning?

All of which raises a scary question: how far will AI sophistication and intelligence evolve in the next few years?

Musk has been particularly alarmist on AI’s growth trajectory, complete with Armageddon-tinged predictions. In the recent DealBook interview, Musk predicted that AI could write a book ‘as good as J.K. Rowling,’ discover a new physics principle, or invent a new technology within three years.

That sounds like a very different world in 2026, particularly for the music industry. Whether the AI train goes that fast is impossible to predict, just like the nuances of AI’s impact on areas like songwriting, synch licensing, music production, and even avatar development. But perhaps one thing is certain: the longer these AI legal battles drag on, the less advantage copyright owners enjoy given the hectic pace of AI training, technological development, the copyright ingestion.

Whether that suggests greater cooperative licensing agreements is worth debating. But for those fighting to defend copyright, the courts simply can’t be the only battlefield.

Pictured: Jason Donnelly aka Dj Puzzle (L) and Matthew Yost (R). Photo by Tony Chiapetta. Taken at The Grammy Museum.

Back in 1998, Matthew Yost and Jason Donnelly (aka DJ Puzzle) were working at Sonic Foundry putting loops onto discs. That early-stage experience was the start of the pair’s 20-year journey into the understated world of background sounds, sonic libraries, and sound loops.

Today, their company, Soundtrack Loops, is powering sound libraries for major platforms and companies like Antares, 1010Music, Acoustica Mixcraft, Roland Cloud, Recording Academy Grammy Museum, and Storyblocks. You may not know the name, but if you’re in music, you’ve probably encountered their sonic creations.

Donnelly recalls the pair’s early days at Sonic Foundry as a ‘fun time,’ adding, “We were cutting and editing loops for products, and that’s kind of how we got introduced to everything. Back then, producers had to rip audio discs to edit the loop off of them. We were part of a revolution that was going to change all that by burning loops to data discs and selling them for affordable prices.”

Yost remembers what it was like before streaming MP3s surfaced. The pair had to use Real Player because that was the best way to stream audio for demos. “I still remember making MP3s and it being like a big thing,” he adds.

Donnelly and Yost went on to build the first platform that allowed artists to listen to loops before paying for them. That way, buyers knew what they were getting, and users no longer had to order CDs with sound loops that arrived in the mail — hoping they liked the collections. By 2005, the duo were also among the first to offer downloadable packages instead of physical CDs.

Fast-forward to 2023, and Yost and Donnelly have been in the game for over two decades. With an extensive catalog of audio loops, Soundtrack Loops has crossed major milestones during its evolution, forging partnerships with producers and tech manufacturers.

The modern day music loop business is vast and multi-faceted. Artists, producers, and even app developers have unique sound requirements to fill their sonic scopes. Most are burnt out trying to bake music into the endless nooks and crannies of their productions.

Providing solutions for that problem, Soundtrack Loops offers expertly formatted royalty-free sound packs for productions in a multitude of genres and formats. The company just concluded a three-year tie-up with Berlin-headquartered music hardware company Native Instruments for their product Sounds.com. Just recently, Soundtrack Loops joined forces with DMN to further broaden their imprint.

Speaking about more current partnerships, Donnelly explains that technology company 1010Music provides samples and loops within its digital audio products, and Soundtrack Loops is the force behind it. “Soundtrack Loops designed all the presets for 1010Music’s Razzmatazz drum synth,” Donnelly relays, adding, “Their Blackbox comes with a bunch of our samples and loops in it. Then there’s Lemondrop and just-realized Tangerine — more 1010Music hardware devices that feature our sounds.”

Soundtrack Loops also tied up with Antares Audio Technologies, a company best-known for developing Auto-Tune — the professional standard for pitch correction. Antares Audio creates a range of hardware and software solutions, backed by Soundtrack Loops’ libraries, to bring musicians and artists creative audio tools for production.

Earlier this year, Soundtrack Loops paired up with Soundware, a provider of VST (Virtual Studio Technology) plugins for music producers.

Other partnerships include StoryBlocks, a provider of high-quality stock videos, audio clips, and images. Soundtrack Loops’ sounds are also featured on Roland Corporation’s Roland Cloud.

Furthermore, Soundtrack Loops’ partnership with Audiokit, a swift audio synthesis, processing, and analysis platform, has resulted in Donnelly and Yost’s craft appearing in several iOS apps. Donnelly further added, “We also licensed a bunch of drum samples to keyboard player Jordan Rudess for his new iOS app, Jam With Jordan, an immersive audio-visual synthesizer that you can play on your phone or tablet.”

Soundtrack Loops’ entire catalog is also fully compatible with Apple’s digital audio workstation Garageband, ‘to take advantage of all metadata and formatting that you receive in the Apple looping utility.’ Jason adds, ”These prefab loops are widely used in compositions by artists.”

Discussing the company’s abundant and significant partnerships, Donnelly reveals they have also licensed tens of thousands of loops to Mixcraft — a digital audio workstation for Windows. Soundtrack Loops’ audio is now bundled within Mixcraft’s workstation.

The company also just launched their new brand, Array Sounds.

According to the duo, Array Sounds will bring an additional suite of services to artists. The brand’s first product is a VST synthesizer called Double Scoop — interestingly themed with pastels and desserts as its core motif.

From clipping audio for loops to building a company that’s trusted by mega-giants in music tech — the duo have made an incredible entrepreneurial journey. Photo by Tony Chiapetta. Taken at The Grammy Museum.

The Double Scoop release comes alongside the launch of an AI-focused platform stuffed with usable loops and sound effects. These sounds will be pre-cleared for use by machine learning and AI developers to train AI music creation software — without infringing on copyrights.

If a producer or artist looked under the hood of their music today, there’s a high chance they’ll find a loop from one of Soundtrack Loops’ 300+ sound packs.

The company currently provides multiple formats to suit creators, producers, and app developers, with their catalog containing 70,000+ loops, or wav files — compatible across all DAWs.

The duo behind Soundtrack Loops has made an incredible entrepreneurial journey — from clipping audio for loops to building a company that’s trusted by mega-giants in music tech. Before Soundtrack Loops, Donnelly also founded Peace Love Productions in 2001. Collectively, the duo says they’ve offered ‘slinging loops and sound design since the very early 2000s.’

According to Yost, one of their most critical company goals remains fundraising and charity work — giving back to the community.

Soundtrack Loops is also an integral part of the ‘Sonic Playground’ installation at the Grammy Museum in LA. Hip Hop America: The Mixtape Exhibit is a 50th anniversary celebration of hip hop that launched on October 7th, 2023, and will run through September 4th, 2024.

As part of the exhibit, attendees at the Grammy Museum will be able to experience loops and samples by Soundtrack Loops. “We loaded up four iPads with 42 loops on each using Ampify’s Launchpad app. We chose iPads and Launchpad because it just seemed like the easiest solution for our needs,” Donnelly said, adding, “Participants can choose from Boom Bap, Old School, Trap, and G Funk. They can mix and match loops to create their own instruments on the fly right there in the Sonic Playground and we think that is way cool.”

Warner Music Group (WMG) stock has been a disappointing performer in 2023.

Warner Music Group (WMG) stock has enjoyed a rather unspectacular ride in 2023. But a number of analysts are cautiously optimistic, with ‘buys’ dotting the landscape.

For more information on Warner Music Group, check out our recent DMN Pro report on the major label, its recent earnings, and its incoming tech-savvy CEO, Robert Kyncl.

Stocks and bonds are enjoying a sudden resurgence in November, thanks partly to cooling inflation and renewed hopes for a soft landing. Heading into this week, the S&P 500 was up nearly 9% on the month, while the Nasdaq has enjoyed an 11% bump.

“Investors are plowing cash into cash into stocks and bond funds,” the Wall Street Journal declared on Monday.

That’s welcomed good news, though music industry mega-player Warner Music Group (WMG) hasn’t benefited much from the tailwind. The question is whether WMG, whose stock has produced scant returns in 2023, could change its trajectory as markets head into 2024.

As usual, the answer relies on a mixture of broader economic and market trends, as well as details tied to the company itself. On the latter, some analysts are seeing room for upward growth. But like many wallowing stocks, performance has been lackluster as inflation and rising interest rates have drained cash out of the market.

At the close of markets on Monday (November 27th), WMG (which trades on the Nasdaq) finished at $33.20, largely level for the day and down over 6% on the year.

Over the past year, shares have bottomed out at a 52-year low of $23.62 after an early January high of $38.76.

The question now is whether that bumbling track record improves. Last week, DMN Pro offered an analytical deep-dive into recent changes at Warner Music Group, with incoming CEO Robert Kyncl reshaping the label with a tech-focused approach. So far, analysts have been mixed on WMG, though there’s optimism in the ranks.

The ebullience doesn’t include Wells Fargo. In a somewhat bearish assessment, Wells Fargo analysts Omar Mejias and Steve Cahall recently issued an equal-weight rating for Warner Music Group stock and established a $35 target price.

“While the cadence of new releases has improved, we remain on the sidelines until we see sustained share recovery and get more clarity on tech investments,” the two spelled out in their analysis of this “company in transition.”

“If/when WMG can turn through tech investments and/or A&R, we think its multiple can re-rate,” Mejias and Cahall continued. The pair further touched upon an “extended cold streak” at WMG-owned Atlantic Records, while highlighting the ability of tech investments to impact near-term margins and long-term growth alike.

Others are coming around. As of November, analyst opinions on Warner Music Group (WMG) stock are starting to look more upbeat.

According to data compiled by FactSet, the consensus rating for WMG stock is ‘overweight,’ with a crop of analysts offering recommendations to buy.

According to a tabulation by the Wall Street Journal of 18 analysts, nine offer ‘Buy’ recommendations, eight recommend ‘Hold’ positions, and one is calling a ‘Sell.’ Unfortunately, the consensus price target is a modest $35.66, which barely beats Tuesday’s close of $33.20.

Helping to buoy sentiment is a string of tech-focused bets and potential upside from advantageous ‘artist-centric’ deals involving DSPs like Deezer.

But despite an upward push on streaming subscription prices, the music streaming surge threatens to ebb as the industry heads into 2024. Beyond that, concerns remain over Warner Music Group’s ability to narrow its revenue gap with major labels Universal Music Group and Sony Music Entertainment, which consistently outperform the perennial third-place WMG.

Comparison of major labels Universal Music, Sony Music, and Warner Music annual revenue by calendar year. Note: 2023 figures account only for calendar Q1, Q2, and Q3.

Maybe AI can save the day?

Re-enter YouTube veteran Robert Kyncl, who recently compared the AI-generated content issues of today to the user-generated explosion of 15-20 years ago. Not surprisingly, that’s when YouTube first started gaining significant footing in the culture.

“We built a very large multiple end dollar business for our partners from fan-uploaded content of their copyrights, that was using their copyrights,” Kyncl recently told investors. “It required technology, and deal-making, and partnership and all of that, and we applied it all and built it.”

Photo: Vlad

Spotify overlooked a few details in its much-ballyhooed ‘royalty modernizing’ plan — including the illegal parts. What else is about to blow?

On paper, it all seemed so simple. A well-considered, 1,000-stream-per-year minimum threshold — and a benevolent redistribution of $40 million in funds that would have been locked up anyway. Actually, make that a billion dollars, according to Spotify’s five-year calculations of the ample redistributions its ‘royalty modernizing’ plan would yield.

Yes, this plan to reimagine streaming royalties was that good — and that beneficial to the artist community.

It was also illegal, at least on the publishing side. Turns out that the entire publishing side has strict royalty payout rules under US Copyright Law (and the copyright laws of other countries), with little room to make things up. A 1,000-play threshold might fly on the recording side, but withholding funds for publishing-specific licenses like mechanicals is against the law.

The problem came to light in a bombshell DMN report earlier this month — with a showdown between Spotify and an army of litigants potentially next.

After word of Spotify’s royalty revamp started circulating, activist songwriter George Johnson promptly raised the matter with the Copyright Royalty Board (CRB).

“This fraudulent scheme is apparently a way for Spotify to not pay almost two-thirds of all American music copyright authors for their performances, reproductions, and distribution of their individual works already licensed to Spotify,” Johnson fumed in a CRB filing.

Fast-forward to Tuesday of this week, and Spotify’s officially unveiled royalty remake suddenly applies only to recordings — with words like ‘publishing’ and ‘songwriters’ not even mentioned.

“Starting in early 2024, tracks must have reached at least 1,000 streams in the previous 12 months in order to generate recorded royalties,” the streaming giant clarified.

Translation: Spotify won’t be paying for streams 1-999 on the recording side, but will still comply with statutory requirements on the publishing side. One payment will be withheld while under the threshold, while the other will be immediately distributed to comply with various laws.

Which means that instead of simplifying the royalty accounting process, Spotify has invented a way to double the complexity. And keep the fun times rolling in the accounting and legal departments.

Beyond that successful pushback, however, the rebellion may be muted.

Despite continued kvetching within indie, distribution, and artist rights corners, it’s unclear if Spotify will face any serious challenges ahead. In an email to Digital Music News, indie label organization Impala promised to discuss Spotify’s plan at its upcoming board meeting on November 30th. But outside of a broad pledge of ‘ensuring a fair, diverse and sustainable music ecosystem for all,’ the organization didn’t offer any concrete resolutions or demands.

And it’s uncertain if any will come. Part of the issue is that most serious artists, even unsigned emerging artists, have long since crossed the 1,000-song threshold that Spotify now requires. And for those struggling to get those plays, it won’t make a difference anyway. For starters, the money is already extremely low. And as Stem Disintermedia’s president Kristin Graziani recently articulated, most of that sub-1,000-stream money gets trapped in distributor accounts anyway.

Spotify’s plan just isn’t that bad — or damaging — at least at this stage. It might even be helpful (though be cautious with Spotify’s grandiose redistribution claims.)

However, the fallout from the changes for ‘noise’ recordings remains uncertain.

For starters, Spotify has decided to denigrate one of its most important sub-categories as ‘noise,’ a term that typically refers to aggravating sounds that people want to escape, like a jackhammer or screaming baby.

Gentle raindrops on a tin roof may not be the pinnacle of musical achievement. Still, people enjoy listening to this ‘noise’ for hours and hours while studying, working, or focusing on something demanding. In that light, does it make sense for Spotify to launch an attack on this ‘noise?’

This is actually a fairly large category for Spotify, with listeners tapping the platform for raindrops and Drake alike. With that in mind, it’s difficult to understand Spotify’s sudden shift in tone towards this creator group.

Perhaps Spotify felt pressure to appease UMG chief Sir Lucian Grainge, who’s adopted a sneering attitude towards sound effects and non-musical focus tracks. Whatever the reason, Spotify now looks condescendingly at this class of audio. Some changes certainly make sense, including forcing minimum length requirements on ‘noise’ tracks to block royalty-gaming schemes. But even for those following the rules, royalties will be severely chopped.

In its Tuesday disclosure, Spotify promised to “value noise streams at a fraction of the value of music streams,” with “white noise, nature sounds, machine noises, sound effects, non-spoken ASMR, and silence recordings” facing the cut. That will make Grainge and other major label executives happy, though it may also result in a thinner ‘noise’ selection on Spotify.

Perhaps you study best to that smattering of raindrops for hours. But will you be able to find what you need on Spotify? If not, other platforms like YouTube will happily fill the void, with Spotify suddenly becoming less competitive and functional for millions of subscribers.

Photo: Olichel

Spotify is implementing a royalty-payment threshold of 1,000 streams per year, according to preliminary details now surfacing. So what’s the problem with that?

The shocking answer to that question is ‘not much,’ even though the move technically cuts off a vast majority of creators on the platform. Take a closer look at the numbers, however, and it becomes obvious that this isn’t a lot of money — both in terms of the overall percentage of the streaming pie and the actual payments themselves. There are also some interesting benefits that immediately come into play.

As a quick recap, details on Spotify’s planned royalty-payout changes were recently revealed by Stem Disintermedia president Kristin Graziani. Aside from fraud-monitoring requirements on distributors and changes to the minimum length of non-music tracks like raindrop recordings, Spotify will also implement a minimum play threshold for a song at 1,000 streams per year. Pass that threshold, and you get paid. Miss that threshold, and there’s no payment.

It’s shocking how many artists will get cut off by this simple shift.

Just how many are we talking about here? Yesterday, we estimated that roughly two-thirds of artists would stop receiving payments due to this shift. But that’s based on Spotify’s data on the number of tracks that cross 1,000 streams during their lifetimes — not one year. Shift the timeframe from ‘lifetime’ to ‘annual,’ and it’s reasonable to estimate that more than 80% of artists and creators on the platform will suddenly lose their royalty checks.

For reasons that make sense and are entirely defensible, that is provoking protests and howls from the indie sector and artist advocates (we’ll have more on that later). They aren’t wrong to be upset, especially since the money may be directly transferred from those underperforming artists to better-performing artists (or, more likely, their labels). In other words, bigger, more successful artists will receive money for streams they didn’t earn.

So how is that okay?

The answer is complicated. On one hand, this non-payment redistribution is technically unfair, and arguably theft if shifted into the hands of more successful artists. Perhaps Believe founder and CEO Denis Ladegaillerie nailed it by calling this sort of redistribution a ‘reverse Robin Hood system.’ But Ladegaillerie was referring to a very different and more serious recalibration being cooked up by Universal Music Group and Deezer.

In the Spotify context, however, this probably doesn’t add up enough to matter. For evidence of that, consider what 1,000 streams mean for an artist on Spotify.

The penny payout rates from streaming platforms are shockingly low: Graziani estimated that 1,000 streams translate into $3 for the average Spotify artist. Imagine an artist with ten tracks, each drawing 500 streams. The missing payout would be $15.

And what’s wrong with a minimum threshold? Graziani further points out that most distributors have minimum thresholds already in place. In this case, the money isn’t hitting artist bank accounts at these lower levels.

“$3.00 is well below the threshold at which almost every distributor allows artists to transfer earnings into their own bank accounts,” Graziani noted. “In other words, this is money that isn’t currently making it to artists in the first place.”

So where is that big pile of pennies sitting?

“Right now, artists don’t benefit from the millions of tiny payments that Spotify pays for content that receives a few streams per month,” Graziani continues. “It’s the distributors who benefit from the hundreds of thousands of dollars sitting in their bank accounts earning interest. Redirecting those tiny payments can immediately increase the royalty pool by $40 million dollars each year, and that number can grow over time.”

$40 million sounds like a lot of money — and it is. But placed into the context of overall streaming revenues, it’s actually a tiny portion.

Billboard, citing an anonymous source, has claimed that the new payout approach would shift only “about 0.5% of Spotify’s royalty pool to more popular tracks.” All of those tiny crumbs aren’t adding up to a very big cake.

But that 0.5% accounts for a disproportionate amount of the headaches involving metadata mismatches and unclaimed funds. Delve into the bowels of the SoundExchange and the Mechanical Licensing Collective (MLC) databases, and vast piles of dangling, disconnected, and otherwise unclaimed cash surfaces. But what if the smaller stuff — defined by tracks garnering fewer than 1,000 streams per year — were simply removed from consideration? Maybe the war against bad metadata is about to take a fortuitous turn.

Still, from an ethical standpoint, is it fair to shift that money to bigger artists? Graziani says yes, though that’s certainly worthy of debate. But how important is that debate in the grand scheme of things? Given the broader and more controversial changes happening at Deezer at the behest of Universal Music Group, perhaps not so much.

Perhaps a middle-ground solution would be to not distribute that money to bigger artists that didn’t generate those streams. Instead, why not use the funds to support up-and-coming artists, even in a for-profit scheme? 

Stem knows plenty about this: the company recently raised $250 million to help fund emerging artist careers. According to the company, the fund “provides advances against future projects without taking any ownership” and represents a model that’s “had a profound impact” on certain indie acts’ careers.

Now we’re talking.

Photo Credit: Aleksandr Popov

After partnering with Australasian music rights management organization APRA AMCOS last year, Music Recognition Technology (MRT) company Audoo has now announced an expanded rollout of its Audio Meters in the region. Audoo’s CEO reveals that the first tranche of installations in key Australian and New Zealand cities was a success — and ‘scaling is now the next step.’

DMN first reported on the initial phase of the partnership between APRA AMCOS and British MRT company Audoo in the summer of 2022. Now a year later, Audoo reveals that APRA AMCOS is committed to the tech’s early adoption. With a focus on that ambition, APRA AMCOS is significantly expanding the number of its devices installed in venues that are licensed for public performances.

Ryan Edwards, CEO of Audoo, explained that the extended rollout will exhibit a significant increase in Audio Meters being installed throughout Australia and New Zealand. “Australia is very populous around the edges, and this next phase will encompass all major cities and major metropolitan areas. We’re already dotted across the country,” Edwards relayed.

The Audoo and APRA AMCOS expansion will allow licensees to ensure that songs played in their premises are more accurately recognized, and paid for in compliance with copyright laws. Several years ago, Audoo partnered with DMN to accelerate its accuracy-focused mission.

Edwards relayed that the partnership and their Australasian model will potentially kickstart a global evolution of methodology for rights management organizations — switching from estimated public performance plays to actual play data.

For decades, the public performance royalty-collection process has been dominated by the use of proxy data and surveys. More recently, innovation-focused organizations like APRA AMCOS have sought out precise methodologies and technologies to enhance their distribution practices.

With Audoo, Edwards believes that rights management companies can implement better technologies to ensure even greater accuracy and transparency of play counts and rights holders’ payments. Focusing on that very aspect, Edwards says, “Audoo utilizes real world data to accurately digitize, streamline, and scale public performance data.”

Audio Meters allow Audoo to tune out the noise of busy public environments, and accurately recognize the music being played via ‘fingerprinting.’

Audoo’s Audio Meter is a multi-patented solution that monitors music played on commercial premises. The technology allows Audoo to tune out the noise of busy public environments, and accurately recognize the music being played via ‘fingerprinting.’ This data is then taken to Audoo’s cloud-based platform to streamline revenue disbursement for partner royalty societies. “Rights management organizations analyze this data alongside other music-use data sources. This is a complex, ongoing process,” says Edwards.

Edwards believes that public performance insights paired with global data will kickstart a new era of accuracy.

He also revealed that Audoo has already partnered with multiple rights management organizations, with more formal announcements to follow in the coming months.

According to Edwards, Audoo is uniquely placed because governments are now inquiring about the standards and quality of metadata across the music industry supply chain. “This is another step towards music modernization. We are now dealing with rights management organizations around the world and seeing different data standards and processes,” he added.

Generic insights involving most-played artists in different locations will also assist labels, publishers, managers, and organizers. By discovering which areas have the highest traction for a certain artist or music genre, Edwards says managers gain another data point to guide targeted promotions — and ultimately higher revenue. “As one example, artist tours could be planned based on higher geographical-based plays,” he relayed.

Edwards admits that this data already exists via social media and streaming numbers, but makes a case that Audoo insights are the missing puzzle piece that make data more usable and implementable. He added, “That’s what we’re plugging. We allow rights management organizations to harness data and use it.”

In July, Audoo also announced partnerships with PRS for Music and PPL for a large-scale UK rollout. Speaking about the move, Edwards said, “The take up from venues has been amazing. We’re getting into as many locations as possible.”

Photo Credit: QuinceCreative

When it comes to music royalties, there’s always been a clear delineation between royalty payouts for recordings versus payouts for the underlying musical composition. But beyond the top-level differences, there’s also another stunning difference that’s rarely highlighted. According to prominent royalty-focused exec Jeff Price, recording payouts are faring much better than composition payouts due to lower data ambiguity — with a far lower percentage of compositions properly matched to their owners. Here, we look at this often-overlooked bright spot in the music royalty landscape.

We frequently discuss the complex nature of music royalty payouts, its abundant parallel challenges, and the infamous multi-billion dollar royalty ‘black box’ of counted-but-unmatched songs. Whether the source of the problem is a dependence on guesstimates rather than actual calculations or simple data entry errors, the industry continually fails to match a big percentage of tracks with the correct ownership data.

Today, accounting technology to correct the data problem exists in most cases. But in the real world, many of those technologies aren’t trickling down to fix the situation in a broad manner. Dig a bit deeper, however, and nuances emerge – as do some promising bright spots.

Some assets are faring better than others, with matching the critical differentiator. By separating the nature and processing of sound recording details and music composition data, a massive split emerges between pre-data-match missing royalties and post-data-match accurate payouts.

Recently, music payout solution Trolley sponsored a webinar to discuss the current situation surrounding music royalty payouts, intending to ensure that the royalties earned by musicians find their way to their rightful owners.

The panel, moderated by DMN, featured royalty experts Jeff Price, cofounder and CEO of Word Collections and an original cofounder of Tunecore, and Jack Cyphers, founder and CEO of BorderFox. The duo exhaustively covered important aspects and functions of existing payment processing technologies.

Fintech company Trolley is a major payout platform for the digital economy, so the topic was germane. Trolley simplifies royalty payouts and tax processes for the music industry and reduces overall processing time. Once data is properly matched and ready for distribution, Trolley steps in to handle the micropayments in a scalable manner. Just recently, Trolley partnered with DMN to further expand its music industry footprint.

Jeff Price believes there’s no single answer to describe the current state of royalty payouts in the music industry. “There are different areas of income. There are the sound recordings, which typically have data matched and lead to accurate payouts 7/10 times. And then there’s the underlying musical composition — the cluster mess. I’ll rate that 3/10 for accuracy.”

Price pointed out that labels or artists usually match metadata for music recordings at the point of distribution. Typically, there’s little complexity there. “The information about who controls the recording is provided, and the money is remitted back to them on a monthly basis,” he clarified.

Composition data, by contrast, is complicated for a variety of reasons. It’s not uncommon for multiple songwriters to collaborate on a track, leading to inaccurate data entry. In some cases, the data is only partially entered or left completely missing. This ambiguity at the source is what makes composition data problematic by nature.

But there’s more to this story. Price doesn’t mince words as he lays out the ‘perverse benefit to staying bad’ in royalty accounting. “The traditional legacy music industry doesn’t want to fix this. They’re happy to have big piles of [unclaimed] money. Then they pass laws and make it legal to steal it and give it to the legacy industry.”

“The less money you get for your songwriter, the more ends up in what’s called the black box,” Price reveals, adding, “And then [music associations] get an allocation of that based on their market share. They can’t pay that back to the songwriters because they don’t know whose money it is. So they get to keep more of it.”

Price stresses that music composition data isn’t prioritized — even though the necessary technology to combat this relatively ‘more complex’ data segment has been created and continually refined. “There’s a misalignment of interest within the music industry,” says Price. “We’re all compartmentalized and fragmented. DSPs have no business interest in ensuring the money ends up in the right hands.”

Price further explained, “It would be disingenuous to suggest nobody cares, but the impact on them from a business perspective is irrelevant.”

Jack Cyphers calls royalty accounting ‘the redheaded stepchild’ for the music industry and notes that neglect isn’t the only reason royalties go missing.

“The music industry was about creating art and culture and monetizing it, but royalty accounting was something they had to deal with. They never got it right,” Cyphers explains.

Cyphers also believes there’s a reason people are intentionally sitting on all that money, adding, “We’re working in an ecosystem and a business model that has been built around inefficiency.”

According to Cyphers, the music royalty mess is a choice, and not everyone in the industry is willing to clean it up. “Some companies are ahead of the curve and willing to change. They’re paying faster because they want to — that’s the differentiator. If you’re about making payouts quickly, you can get the data. You’ve got the system and the tech.”

For companies that want to make post-match royalty payouts more accurate, Cyphers says the option is there. “I believe that it’s more of a bottom-up thing now for the companies that are more focused on this data instead of top-down,” he added.

As a result of this bottom-up focus, the music royalty ‘cluster mess’ appears to be turning over a new leaf. Abdul Refaat, Head of Royalties and Senior Enterprise Account Executive at Trolley, decodes how their platform effectively tackles ‘the immense complexities of the music industry, its multitude of revenue streams, varying contract terms, and diverse streaming platforms.’

By automating multiple cumbersome parts of the process and highlighting the post-data-match phase for music royalty payouts, Refaat believes that the landscape is showing significant improvements. “We’re noticing that payments and tax are becoming more top-of-mind, with a heavy concentration on automation and APIs,” he says.

Refaat insists Trolley has a game plan for emerging complexities in the future, adding, “AI-generated music, blockchain fan-powered earnings, fractionalized ownership, [these will bring] new revenue streams. Music companies and fintech solutions must adapt to these changes by incorporating advanced tracking mechanisms for emerging platforms and defining the tax implications on these new revenue streams.”

According to Refaat, collaboration between industry leaders, legal experts, and tech innovators will be essential in establishing new standards and contracts. “As Trolley and other music platforms grow, we will continue to see major improvements and continuous efforts on refining data post-match, enhancing accuracy, and reducing processing time.”

In that aspect, Price and Cyphers also agree that ‘it’s all about the data.’ Price adds, “We audit, we identify, and then create automated systems to have a handle on it.”

Users can quickly sign up for the Splash Pro free tier, reveals Splash General Manager Tarika Wickremeratne.

Generative AI platform Splash just released its Gen-2 feature, allowing users to generate new music, lyrics, and vocals from a text prompt. Splash’s models are exclusively trained on a self-owned music library of loops composed by the platform’s music team — allowing Splash to offer broad and flexible commercial licenses to users.

Tarika Wickremeratne, General Manager at Splash, recently sat down with Digital Music News to explain how the generative AI platform transcends the standards set by other generative music companies that do not own their proprietary datasets.

Splash enlisted an entire music team that recorded hours of several musicians playing music and singing to create a fully generative AI music and vocals library. This in-house library trained their AI model to generate music and vocals via a simple text prompt.

“We own all of our music in our Splash library,” Wickremeratne relayed. “We want people to go out and monetize their creations, either by putting it on YouTube and earning money that way, or if they want to use it for their actual production work, video content, etcetera.” Just recently, Splash joined forces with DMN to further broaden awareness of its Gen-2 release.

Wickremeratne reveals that the company has published a comparison that shows precisely where Splash Pro stands in the competitive AI space, specifically with other text-to-music or generative AI platforms on the market.

Compared to features other text-to-music platforms bring to the table, Wickremeratne says Gen-2’s biggest flex is its ability to issue ‘very broad, very flexible commercial licenses to users.’

Wickremeratne says Google’s MusicLM and Facebook’s MusicGen cannot offer full commercial licenses. “They don’t have the rights to the music their models were trained on,” she explains.

Speaking about Stable Audio, she notes that even though the company is offering commercial licenses to users, ‘Stable Audio’s dataset has been licensed from an external production music company called AudioSparx.’ Wickremeratne relayed that Splash Pro’s datasets — on the other hand — are custom-created, so they can be tailored ‘to suit their customers’ evolving needs.’

Ownership of music libraries isn’t Gen-2’s only differentiating factor. The platform also offers proprietary text-to-vocal AI generation across multiple genres, using a Splash-exclusive catalog that is constantly expanding and growing.

“You can generate lyrics and get a generative voice that sings for you, choose whether that voice raps or sings. Even select different voices across different genres. As far as I know, we’re one of the only companies that do that,” said Wickremeratne.

“You can generate lyrics and get a generative voice that sings for you,” says Wickremeratne.

“Ownership and rights give us the ability to control our own destiny and not be at the mercy of legal complexities that come with partnerships and licensing agreements,” she adds.

Gen-2 also boasts an extensive list of genres that users can generate. Wickremeratne says they specialize in a Gen-Z and Alpha-inspired music catalog because, in the past, they ‘have always been a core audience of Splash.’ She adds, “A lot of EDM, hyperpop, lo-fi, funk, hip hop, trap, dubstep — those kinds of genres. We feel like that’s a key differentiator for us.”

This constant diversification and growth of the Splash catalog, according to Wickremeratne, remains one of the key goals for the company. “Our catalog is always growing because our music team’s work isn’t done. They are continuing to widen and expand the genres and music styles we offer.”

Wickremeratne says Splash Pro Gen-2 is all about more control and customization options— the intuitive user interface allows just that. “The platform is set out so that people get music that matches their prompt much faster than others — and they get a lot more choices.”

“Users can leverage many levers to tweak their music, whether it’s adding lyrics or changing the length of the song,” explains Wickremeratne, concluding with, “Splash brings many nuanced customization options for users.”

Elaborating on the tool’s ease of use, Wickremeratne reveals how users can quickly sign up for the Splash Pro free tier. “Users can experiment with unlimited track generations before deciding whether they need a paid version with more features.”

She adds, “You type in a description of the song you want to hear — say, a romantic ballad or a house track from the nineties. Add BPM, and add the genre you want. In just a few seconds, you’ll get five short samples that you can listen to that match your prompt.”

Users can extend these samples to different lengths. They can add lyrics, singing, or rapping to the track to create downloadable full-length songs in multiple file formats.

After multiple AI releases over the years, Wickremeratne shares that the biggest pivot for the company occurred after various breakthroughs in Machine Learning (ML) technology. “Our products are heavily inspired by companies like ChatGPT and Midjourney, which revealed to the world how powerful text could be as an input method.”

Wickremeratne explains that these ML breakthroughs ‘allowed us to achieve a longstanding, ambitious goal for Splash — to allow people to make music with AI.’ This shift led to Splash’s March 2023 release of Beatbot, a text-to-music experiment to gauge the usage of an AI music service with AI rapping.

Just three months later, in June, Splash launched Splash Pro Gen-1, calling it the tool that brings ‘AI-powered music at the speed of a text prompt.’ Gen-1 offered customization features such as BPM specification, generative and editable lyrics, 15 AI rappers and singers, as well as song length and arrangement options. Wickremeratne reveals that amateur DJs, creators, and bloggers on YouTube and TikTok had been early takers of Gen-1.

With the September release of Gen-2, Splash now boasts its fully generative music model, producing 44.1kHz stereo quality audio, with AI mastering tools, high-quality wav and stem downloads, and even the ability to create lyric videos.

The generative platform isn’t new to the AI business. Splash (formerly Popgun) first appeared on the music landscape in 2017, led by ex-Twitter alums Stephen Phillip and Richard Slatter, who also founded We Are Hunted. In 2012, Twitter purchased this machine-learning music discovery tool.

Splash went on to secure seed funding in 2018. By 2020, the ‘Splash — Music & Skate’ game had been introduced on Roblox, allowing players to create music and perform to live audiences inside virtual venues. The company then completed a $20 million Series A round in 2021 — co-led by Amazon’s Alexa Fund and BITKRAFT Ventures, with participation from Khosla Ventures and King River Capital.

Wickremeratne recalls how Splash focused on growing the Roblox game as the biggest virtual music festival, reaching over 4 million monthly active users. “We created the Roblox game to build our loop library. The game allowed players to perform music live on a virtual stage using a beatmaker instrument — a DJ pad with 48 buttons for different sounds that could be combined in different ways to make really cool music.”

Splash began building its ‘proprietary music catalog’ in 2019, ‘first for our app, then Roblox, and now for Splash Pro.’ Wickremeratne adds, “All the while, we’ve continued to invest in R&D to improve our music and voice generation and other AI capabilities.”

Wickremeratne relays that these efforts eventually led to the data that now underpins Splash AI training. The platform deployed this music across their Roblox game and mobile app while also training their AI models on it.

“There’s always been an engine running in the background,” Wickremeratne explained. “Splash has always been about democratizing music creation — putting really easy-to-use, simple, intuitive music tools in the hands of as many people as possible. There’s a real joy to creating music that you can’t get in quite any other way.”

Gen-2 has only been on the market for two months, so predicting the next developments is difficult.

As Splash’s AI model grows bigger and gains more sophistication, new sounds or even genres could emerge. It’s also inevitable that competitors will continue to innovate in the generative music space with gusto. However, with their models trained on entirely different datasets compared to Splash AI, will these new entrants bring completely unique sounds to differentiate themselves?

There’s also the possibility of text-to-music AI becoming mainstream. If producers start incorporating the sounds of Splash Pro into their work, it could signal a seismic shift in music creation and redefine what it means to ‘make’ music.

For now, Wickremeratne is closely watching how it all develops and adjusting Splash Pro’s roadmap accordingly.

Splash Pro subscription options include a Free tier, followed by a Starter tier ($10 per month) meant for creators looking to monetize their content. A Max tier ($49 per month) is meant for teams, developers, and companies. Splash also offers an Enterprise option for companies that require special API access or other advanced support.

Photo Credit: Dot Hip Hop

Dot Hip Hop is a domain name registry with a seemingly simple tech proposition. But beyond its focus on .HipHop domain names and website addresses, Dot Hip Hop is honing in on IP ownership, empowering artists, and uplifting the community via financial literacy.

On its surface, Dot Hip Hop has a simple business model. The company facilitates the ownership of .HipHop domain names and website addresses for artists, labels, or anyone tied into the hip hop community or culture of hip hop. Dig a bit deeper, however, and this is a company that’s all about advancing hip hop culture and empowering its creators.

“There’s a lot to the story of our dedication to the community and the culture,” Managing Director Monte Cahn told Digital Music News, who noted that .HipHop domain names offer an opportunity to gain greater ownership over musical creativity. “We’re trying to re-educate people about the importance of having your own intellectual property, your own identity, utilizing it properly, and being able to monetize it.”

Cahn also points out how most people wrongly believe that they own intellectual property rights simply because they’re using Instagram, TikTok, or Twitter to post their content. “These platforms own everything that you do and say. You can be cut off and deleted and even hacked by others while using these platforms,” Cahn explains.

According to company CMO Scott Pruitt, “Artists with a .HipHop domain name gain a digital identity that aligns with hip hop.”

Speaking about the history of hip hop artists in general, Cahn highlighted how artists’ ownership was compromised by the original contracts signed with agents and record labels. “That’s what we’re about, giving ownership rights back to the hip hop community and culture. For artists, DJs, MCs, a record label, or even somebody that loves hip hop,” Cahn added. Just recently, Dot Hip Hop joined forces with DMN to accelerate their mission.

Ajene Watson, also a Managing Director of Dot Hip Hop, relayed that the company is aiming to elevate hip hop culture in three ways: provide ownership via equity, promote economic opportunity via financial literacy, and redistribute wealth through a corporate community investment program.

“We are creating an environment where the culture can own equity in Dot Hip Hop, LLC — the registry that holds the license to operate the .HipHop extension. Secondly, we’re promoting financial literacy and economic opportunity by teaching the community about digital real estate — researching, analyzing, buying, developing, and selling these domain names,” Watson explains.

Watson also highlighted how the third, equally important goal of wealth redistribution ties into what the company is doing, adding, “A portion of our revenue actually goes to the endeavors of the culture — whether it’s money going into financial initiatives like the Biz Markie’s Just A Friend Foundation, ‘For The Culture Fund’ by Beats, Rhymes & Relief, even diabetes associations, retirement funds for hip hop’s founders, and other actions that uplift the community, like education, et cetera.”

Watson further states how Dot Hip Hop is focused on continually developing this model and ‘anticipate that funds will ultimately go into a trust, and then be dispersed appropriately.’

“We’ve built this into our business process to ensure that the community is fed by their own efforts, and every registration increases community value and opportunity,” Watson concludes.

Pruitt believes many hip hop artists don’t fully grasp the concept of top-level domains, or the extent to which they allow artists to strengthen their brands.

“What’s on the right side of the ‘dot’ can actually relate to what’s on the left side of the ‘dot’ and that makes for a much better brand,” Pruitt explained.

Comparing .HipHop with other domains and domain extensions, Pruitt points out a notable distinction, saying, “.HipHop is an open extension so anybody can go and register a .HipHop domain name, but others may come with a few restrictions. You might have to provide articles of incorporation or fill out Nexus forms to attest that you’re a legitimate music business, or work within a specific industry.”

Pruitt also highlighted that the domain .HipHop is capable of representing a global community that isn’t limited to just music, but can also include dance, graffiti art, contemporary art, gaming, sports, fashion, attitude, general business, and a way of life.

“Hip hop is everyday life, and .HipHop can represent a global community of over 1 billion people, whereas most other internet extensions don’t represent any specific identity or inclination.”

It’s not everyday that branding decisions and domain name extensions are mentioned in the same sentence, but Pruitt sees an untapped connection. “This is a more meaningful domain. It gives everyone an opportunity to match what they represent — hip hop. The address will allow people to automatically make the hip hop association.”

Pruitt says Dot Hip Hop also aims to tackle the animosity that can exist between different rappers, camps, and groups. The company is also dedicated to supporting hip hop-related charities.

“We want to be the catalyst that brings people within the hip hop community together. We want to help encourage a camaraderie so they can start to lay aside all the beef and disagreements. With a .HipHop domain, they’re not saying that they’re East Coast or West Coast. They’re not saying that they’re Bronx or Queens, it’s their hip hop,” Pruitt claims.

An illustration of The Notorious B.I.G. at the Gracie Mansion, where the mayor of New York hosted a reception to celebrate the 50th anniversary of hip hop (Photo Credit: Dot Hip Hop)

As part of the company’s mission, Dot Hip Hop aims to support charities ‘to help out people in the inner city.’ Pruitt says this ideology is built into the core philosophy of their business, adding, “We’re here to help strengthen the hip hop community and its founders and the people who really made hip hop happen.”

On August 11th, the Mayor of New York hosted a breakfast reception at Gracie Mansion to celebrate the 50th Anniversary of hip hop. The event was sponsored by Dot Hip Hop.

New York City mayor Eric Adams flanked by hip hop luminaries at the Gracie Mansion event (Photo: City of New York).

At Gracie Mansion, Mayor Eric Adams spoke passionately about how the last 50 years have changed the cultural landscape. “Hip hop was more than just music. It changed the attitude. From block parties to carrying crates of records, to music in the park, to having to draw your own flyers, to doing the $5 event, the $3 cups, to trying to be able to make your music real and having to deal with some of the contracts. Look at it 50 years later, and the mayor of the most powerful city on the globe is a hip hop mayor.”

Guests at Gracie Mansion included Sha-Rock, Kool Herc, Kool DJ Red Alert, Ralph McDaniels, and many others. As part of their tie-in, Dot Hip Hop gave .HipHop domain names to major hip hop artists that were being honored at the event.

Alongside several other celebratory events throughout August, Dot Hip Hop also sponsored Beats, Rhymes & Relief for a three-day event called The Battle Royale at Times Square on August 13-15th. Beats, Rhymes & Relief For The Culture Fund is a charity organization that utilizes the arts to raise awareness and support for global humanitarian relief projects.

Pruitt explains that the event featured a competition amongst various pillars of hip hop — beatboxing, DJing, MCing, graffiti artists, and breakdancing — adding, “It was the first time ever that the city of New York had a hip-hop-related event right in Times Square.”

Dot Hip Hop also sponsored Beats, Rhymes & Relief for a three-day event called The Battle Royale at Times Square (Photo: Dot Hip Hop)

Watson highlighted Dot Hip Hop’s plans to collaborate with schools to bring financial literacy and education to teenage students and their parents. “We spoke with an NYC police captain and have committed to doing this at least twice a month for this school year, all across the city,” Watson relayed, further adding that education, awareness, and financial literacy will help diminish crime.

“We’re getting a lot of opportunities to provide support. Not just with money, but with social support in the community,” stated Watson.

As a result of that ambition, Dot Hip Hop sponsored the GOAT Classic event on August 19th, featuring a basketball clinic for kids ‘to give back to the community with basketball games and music.’ Moreover, the domain registry company has aligned with the Biz Markie’s Just A Friend Foundation to sponsor the Pencils and Dreams school supply drive.

“We’re getting a lot of opportunities to provide support. Not just with money, but with social support in the community,” stated Watson. (Photo: Dot Hip Hop)

The company has also joined and offered support to other organizations such as the Hip Hop Alliance, headed by Kurtis Blow in collaboration with Chuck D, KRS-One, and other hip hop legends. Pruitt says the Hip Hop Alliance support is part of broader efforts by Dot Hip Hop to establish social benefit programs such as healthcare plans for some of the original hip hop artists that were misrepresented by record companies — with some still not owning their intellectual property.

At the end of the day, Dot Hip Hop is all about community, associations and partnerships, monetization, and seizing control over IP.

Focusing on that aspect, Pruitt recalled how Cahn, ‘a near-thirty-year domaining industry vet,’ reshaped the domain name game in the 90s. Cahn purchased and sold domain names — in a manner similar to physical real estate investing.

Cahn participated in the first million-dollar domain name sale by reselling wallstreet.com for $1.03 million. Later that same year, Cahn sold autos.com for $2.2 million. These historic sales positioned Cahn as a key figure in the early multi-billion-dollar industry involving the buying, brokering, auctioning, and sale of domain names.

Pruitt explains why a similar opportunity might be up for grabs again, and why this aftermarket for .HipHop domain names exists. “Every domain name is a unique piece of property. It’s digital real-estate driven by scarcity and value.”

To prevent potential squatters from registering artists’ names, Dot Hip Hop has reserved tens of thousands of .HipHop domain names to protect established hip hop artists, songs, and labels from profit-seeking flippers.

Jeff Neuman, Chief Operating and Legal Officer of Dot Hip Hop, says, “We want the person who buys the domain name to actually be the one using it, and have the right to profit from it.”

Neuman — like Cahn — has also been involved in the domain name industry since its early beginnings. Neuman used the domain name system to safeguard brand owners’ intellectual property rights. Dot Hip Hop also relayed that most of the intellectual property enforcement mechanisms used by brands today against domain name owners ‘were either created by Neuman directly, or through working groups that he either led or actively participated in.’

Neuman says, “We want .HipHop to grow responsibly.”

Pruitt added, “When .com came along, there was essentially a land grab and now around 200 million .com names are registered — and buying and selling .com domain names is a multi-million dollar business. Right now, .HipHop has just under 2,000 registrations.”

With an eye on the evolving future of domain names, art, branding, and the live music performance arena, Pruitt reveals that the company has launched Web2 and Web3 integrations.

“When someone registers their domain name in .HipHop, they also gain the functionality of Web3 without having to use a third-party website address,” Pruitt explains, adding, “You’ll be able to mint and create NFTs right from our website. Put in your .HipHop address and claim the blockchain or Web3 version of it.”

Hip hop artists that are keen to be early adopters of the .HipHop domain extension can register at www.Get.HipHop. Besides securing the domain as digital real estate, artists can personalize their website, create custom email addresses, and even set up a cryptocurrency wallet address through the new Web2 to Web3 bridge interface.

Most ICANN-accredited registrars now carry .HipHop domains. Now, the big opportunity is to broaden awareness of an asset that may become threaded into the future global footprint of hip hop culture.

Most artists end up juggling various platforms and multiple ‘dashboards’ during the production, distribution, and promotion of their music. Now, OmMuse is working to consolidate everything an artist needs into a central repository — the OmMuse Hub.

For artists, the process of creating, delivering, and monetizing music is a complex chore involving seemingly-endless partners. Apart from the countless nuts and bolts of music production, artists and managers need optimal organization and storage of files, advanced sharing capabilities, collaboration tools, royalty tracking solutions, and mastering tools that allow them to extract the most out of their work.

Most of these solutions are scattered across multiple platforms, forcing artists to coordinate a large number of endpoints. That’s a headache that OmMuse is aiming to solve with a consolidated service that allows every artist — on varying stages of their creative process — to simplify and optimize their creative process. Just recently, OmMuse joined forces with DMN to broaden awareness of their consolidated platform solution.

Company founder & CEO Vivek Patel outlined OmMuse’s vision to simplify music industry processes and propel musicians in their creative pursuits.

Patel adds that OmMuse will allow artists to ‘derive more value from their work by leveraging the latest tech in AI and blockchain.’ OmMuse CMO Chris Gertz-Rombach further explained that OmMuse primarily aims to facilitate accessibility, ease of use, collaboration, and discovery by utilizing tech to its absolute capacity.

The consolidated approach means that artists can tap into interactive creative tools to organize their entire catalog, discover collaboration opportunities, and distribute their music. For indie musicians, OmMuse brings elevated accessibility, a clean interface, and the ability to be discovered directly via the platform.

To keep the interface clean, OmMuse dashboard leads to only three tabs: My OmMuse Hub, Explore, and Artists.

OmMuse is in its late seed stage with a soft launch, and Gertz-Rombach reports that a few hundred early users have provided encouraging feedback. Gertz-Rombach also relayed a success story of musician Michael Alvarado, who is already collaborating with artists he discovered through OmMuse.

OmMuse is free to join ‘because a big part of our ethos is accessibility.’ Gertz-Rombach added, “We want anyone around the world to easily access OmMuse to create music, to distribute it by signing up for free.”

The platform’s cloud-based ecosystem is structured to assist in music-focused pursuits such as storage, organization, and collaboration. Gertz-Rombach says OmMuse was developed because other creative platforms were too ‘noisy.’

“There are way too many features and buttons on other platforms, so OmMuse is streamlined and simple. That’s our most positive feedback, too.”

OmMuse also aims to create simplicity throughout, instead of overwhelming artists with complex processes. Patel calls it the ‘grandpa test,’ adding, “If our grandpa can figure out how to add the songs and batch-upload tracks, then anyone can do it, right? OmMuse hub contains it in one place. It’s encrypted.”

Unlike conventional file storage platforms like Dropbox, OmMuse isn’t packed with music-irrelevant tabs and buttons. Dropbox’s free tier provides a miserly storage of 2GB, alongside a file size limit, which is unworkable for most musicians. The cloud storage giant also fails to offer the flexibility and navigation required for effective music collaboration. Also missing from Dropbox and its competitors are song-specific organizational capabilities, including metadata fields specific to music tracks.

“One of the big long-term plays we’re focusing on is the ability to organize huge sets of music data,” Gertz-Rombach shared. “Our tech automatically extracts metadata from tracks but also detects things like BPM and genre if not added manually. So labels and massive catalogs are organized and sifted through efficiently when uploaded and stored.”

Perhaps most importantly, non-music-specific platforms like Dropbox consistently fail to provide the vigorous privacy required for high-value music files.

To keep the interface clean, the OmMuse dashboard leads to only three tabs: My OmMuse Hub, Explore, and Artist. Users subscribed to the OmMuse free tier can create a profile, upload up to five gigs for free, and gain encrypted storage for large music files. Users can also employ more precise sharing and permission tools — better-suited for potentially lucrative music files.

“Any track you upload publicly will place you on the Explore page,” says Gertz-Rombach.

OmMuse artist profiles provide the spark to find the correct chemistry for collaboration. Gertz-Rombach says these discoverability features close the ‘search’ gap. He explained, “We found a lot of artists who want to be public with their music and get discovered. So any track you upload publicly will place you on the Explore page.”

Artists can also opt-in to become featured artists so others in search for collaborators can reach out and initiate a project. “It’s a way for other musicians, writers, or even labels to find artists.”

OmMuse’s mastering tool with Dolby.io.

Artist profiles can include everything from their work history, a link to their website, and their music. “It’s an additional way for artists to be discovered, and a way to find other collaborators,” Gertz-Rombach relays, adding, “Maybe you’re looking for a producer that can make beats for your next track or a writer to help with a hook? In some ways, it is like a bit of a social platform.”

OmMuse also integrates AI to facilitate music production, mastering, smart contracts, and other creative tools.

“OmMuse also partnered with Dolby, and users subscribed for OmMuse’s paid tier at $7.99 per month receive discounts for Dolby.io AI Mastering. You can preview [the mastered track] up to 30 seconds before you pay for it,” says Gertz-Rombach.

The startup also introduces proprietary smart contracts, with which artists can upload music projects and designate different royalties for multiple collaborators. Gertz-Rombach explained that users can also mint their music through the smart contract for distribution, adding, “We absorb all the minting fees if you’re subscribed to a paid tier.”

The technology company appears to have a major partnership on the cards. Without naming any names, Gertz-Rombach hinted at a prominent digital distribution tie-up for OmMuse. “OmMuse will be the first platform that uses ‘their’ backend API to go within our platform. We’re one of the first that will be able to leverage it.”

Gertz-Rombach says that with further future developments and partnerships, OmMuse will be able to distribute music to all streaming platforms.

(Also, exclusively for DMN readers, OmMuse is offering a three-month subscription to their Major tier for free. OmMuse Minor remains free for everyone.)

Here’s a more detailed overview of OmMuse subscription tiers:

Free Access: OmMuse Minor

• 5GB of Optimized Music & File Storage
• Basic AI-Based Music Organization
• Choose to Share Music Publicly or Privately
• Profile, Tracks, & NFTs Listed on Explore Page
• Full Price Dolby.io AI Mastering ($29.99/track)
• Full Price Music NFT Minting ($29.99/track)
• Unlimited Encrypted Messaging with Users
• Update Track Versions With Collaborators

OmMuse Major: $7.99 per month

• 500GB of Optimized Music & File Storage
• Enhanced AI-Based Music Organization
• Choose to Share Music Publicly or Privately
• Profile, Tracks, & NFTs Listed on Explore Page
• Discounted Dolby.io AI Mastering ($7.99/track)
• Discounted Music NFT Minting ($14.99/track)
• Unlimited Encrypted Messaging with Users
• Update Track Versions With Collaborators

OmMuse Studio: $14.99 per month

• 1TB of Optimized Music & File Storage
• Advanced AI-Based Music Organization
• Choose to Share Music Publicly or Privately
• Profile, Tracks, & NFTs Listed on Explore Page
• *Tracks & NFTs Added to “Featured Section”
• *Profile, Tracks, & NFTs Highlighted on Website
• *Social Media Promotion on OmMuse Socials
• Discounted Dolby.io AI Mastering ($4.99/track)
• Discounted Music NFT Minting ($9.99/track)
• Unlimited Encrypted Messaging with Users
• Update Track Versions With Collaborators

*Premium benefits only available to Studio users

A higher-end, customized Enterprise tier is also available, according to OmMuse.