Welcome to Music Enterprise Worldwide’s weekly round-up – the place we be certain that you caught the 5 largest tales to hit our headlines over the previous seven days. MBW’s round-up is supported by Centtrip, which helps over 500 of the world’s best-selling artists maximise their revenue and cut back their touring prices.
The Q3 earnings cycle continued this week with Spotify and Common publishing their outcomes for the three months to finish of September.
On Thursday (October 27), Common Music Group posted Q3 revenues of EUR €2.664 billion (USD $2.68bn) throughout all of its divisions (together with recorded music, publishing and extra).
Streaming and merch revenues have been two of the quarter’s largest highlights for UMG.
Common’s subscription streaming revenues particularly grew 8.7% YoY at fixed forex to €991 million ($998m) in Q3, pushed, in accordance with UMG, “by the continued wholesome development in music subscribers”.
UMG’s merch revenues grew by a whopping 101.1% YoY at fixed forex to €189 million ($190.32m) in Q3.
In the meantime, Spotify reported that it added 7 million web Premium subscribers to its consumer base in Q3, taking its complete international paying subs viewers to 195 million.
By way of funds, Spotify generated EUR €3.036 billion (USD $3.06bn) in quarterly revenues in Q3, up +12% YoY at fixed forex. Subscriber/Premium revenues weighed in at €2.651 billion ($2.70bn) in Q3, up +13% YoY at fixed forex.
SPOT CEO Daniel Ek additionally advised traders through the firm’s earnings name this week that Spotify will contemplate elevating its costs within the US, following latest worth hikes by rivals Apple Music and YouTube.
A person Apple Music subscription has gone up by $1 to $10.99 monthly, whereas YouTube upped the value of its Premium Household Plan by 28% to $22.99.
Additionally this week, blank-check firm The Music Acquisition Company wrote to its stockholders to hunt approval, by way of a vote, to liquidate early, whereas CISAC reported that international music collections hit EUR €8.48 billion in 2021 (USD $10.02 bn).
Right here’s what occurred this week.
1) UNIVERSAL GENERATED NEARLY $1 BILLION FROM SUBSCRIPTION STREAMING IN Q3, AS OVERALL REVENUES GREW 13.3% YOY
Over the summer time, Invoice Ackman’s Pershing Sq. predicted that Common Music Group “can develop revenues at an annual price of 10% or so for greater than a decade”.
Proper now, Common is assembly that problem.
UMG revealed its monetary outcomes for the three months to finish of September on Thursday (October 27). The corporate posted Q3 revenues of EUR €2.664 billion (USD $2.68bn) throughout all of its divisions (together with recorded music, publishing and extra)…
2) SPOTIFY ADDED 7M PREMIUM SUBSCRIBERS IN Q3 – AND HAS ADDED 15M IN 2022 TO DATE
Doomsday analysts carry on concluding that leisure subscriptions are in for a tough trip in 2022 resulting from macroeconomic pressures. Spotify retains on defying them.
In Q3 2022 (the three months to finish of September), Spotify added one other 7 million web Premium subscribers to its consumer base, taking its complete international paying subs viewers to 195 million.
That determine was revealed on Tuesday (October 25) by way of the announcement of Spotify’s official Q3 outcomes.
SPOT’s 195 million subs base is a full 15 million subscribers forward of the place Spotify was on the shut of 2021 (180m).
The 7 million development in Q3 subs was forward of Spotify’s personal steering of +6 million…
3) GLOBAL SONGWRITER ROYALTY COLLECTIONS TOPPED $10BN IN 2021, BUT WERE STILL BELOW PRE-PANDEMIC LEVELS
Writer and songwriter royalties collected by their societies globally hit EUR €8.48 billion in 2021 (USD $10.02 bn).
Though that complete royalties haul represented a 7.2% rise versus 2020, it remained beneath pre-COVID ranges, highlighting the impression of lockdowns on dwell performances.
That’s in accordance with CISAC‘s International Collections Report 2021, revealed Thursday (October 27).
4) APPLE MUSIC JUST RAISED ITS SUBSCRIPTION PRICE TO $10.99 IN THE US. WILL SPOTIFY BE NEXT?
Apple is rising the pricing for Apple TV+, Apple One, and Apple Music worldwide.
Within the US, ranging from Monday (October 24), a person Apple Music subscription will go up by $1, from the present $9.99 worth level to $10.99 monthly.
In an announcement supplied to MBW, Apple stated that the change in its Apple Music pricing “is because of a rise in licensing prices” and that, “in flip, artists and songwriters will earn extra for the streaming of their music…”
5) $200M SPAC, THE MUSIC ACQUISITION CORP, FILES TO LIQUIDATE EARLY AND DELIST SHARES FROM NYSE
Over the previous couple of years, we’ve seen quite a few big-money SPACs launch and merge with music firms to take their chosen targets public.
One such SPAC emerged again in January 2021, when Music Enterprise Worldwide revealed that long-time Geffen Data President Neil Jacobson was plotting a flotation of a brand new music firm within the US.
Jacobson’s blank-check firm, The Music Acquisition Company (TMAC), floated on the New York Inventory Alternate in February final 12 months underneath the ticker image TMAC.U, elevating $230 million within the course of.
TMAC.U, fashioned particularly to impact a merger/acquisition within the worlds of each music rights and music tech has been largely quiet since then – one thing that now doesn’t look more likely to change within the close to future.
In response to a brand new submitting with the Securities Alternate Fee (SEC) within the US, Jacobson’s SPAC has written to its stockholders to hunt approval, by way of a vote, to liquidate early…
MBW’s Weekly Spherical-Up is supported by Centtrip, which helps over 500 of the world’s best-selling artists maximise their revenue and cut back their touring prices.
Music Enterprise Worldwide