business
The Ledger: Inside Universal Music’s 2021 Annual Report
The Ledger is a weekly newsletter about the economics of the music business sent to Billboard Pro subscribers. An abbreviated version of the newsletter is published online. Universal Music Group’s first-ever annual report, released Thursday, offers an exhaustive look at the company’s finances and operations as well as environmental, social and governance initiatives. If you want to know how many metric tons of paper was purchased for internal use (24) or the number of megawatt hours of electricity from renewable sources (7,982), it’s in there. In terms of dollars and cents behind investments and catalogs, the annual report has a few things worth highlighting. UMG sold Alamo Records for 102 million euros ($112.7 million) for a gain of 98 million euros ($108.3 million). Sony Music reportedly...
Spotify CEO Daniel Ek to Be Deposed in Eminem Copyright Infringement Suit
A federal judge says Spotify CEO Daniel Ek must sit for depositions in a copyright lawsuit over Eminem’s music, rejecting the streamer’s arguments that he’s not personally involved in “day-to-day” licensing operations or that he’s too busy to participate in the case. Spotify claimed that Ek had little information to offer about the lawsuit and that Eight Mile Style was trying to drag him into a deposition simply to “harass and annoy” him. But U.S. Magistrate Judge Jeffery S. Frensley ruled Thursday (March 31) that the executive would need to find the time. “Undoubtedly Mr. Ek has a full schedule [and] the Court credits Spotify’s assertion that he is very busy indeed,” Judge Frensley wrote. “Yet, the issue of proper licensing relationships with the artists whose work comprises the entirety ...
UMPG Wants More of Its Songwriters Working in Podcasts
Universal Music Publishing Group has announced a new partnership with narrative-focused podcast creator Audio Up, opening up new opportunities for their songwriters to write original music for the company’s programs. According to the announcement, UMPG writers can be “signed” by Audio Up to make these themes and scores. Additionally, UMPG signed the company’s CEO, “Jingle Jared” Gutstadt, to an exclusive global publishing deal. With a background in writing and producing for production and contemporary music, Gutstadt is the rare example of a working musician and music business entrepreneur. He founded both Audio Up and music production agency Jingle Punks, which sold to Anthem Entertainment (formerly known as Ole) in 2015. Audio Up productions are supported by SiriusXM and Audible, and the...
Blockchain.com’s valuation hits $14BN following newly reported raise
The exchange has completed four financing rounds since the start of 2021 Blockchain.com has a customer base of 37 million users and has processed more than $1 trillion in transactions UK-based cryptocurrency exchange Blockchain.com has reportedly concluded a funding round led by one of its previous investors, Lightspeed Ventures Partners, as per a Thursday report from Bloomberg. Independent investment management firm Baillie Gifford had heavy involvement in the raise, which comes at a $14 billion market valuation – more than double the valuation during the previous financing round completed by the exchange. The report didn’t feature details of the sum raised, and neither party involved has made any official communication. In addition to running a platform for trading crypto ass...
TikTok ‘Deeply Concerned’ by Facebook’s Paid Campaign to Promote Negative Coverage of Social App
TikTok said Wednesday it was “deeply concerned” by a campaign paid for by Meta, the parent company of Facebook, to promote negative coverage of the shortform social platform in local media coverage. As reported by The Washington Post, Meta has paid a “right of center” marketing firm, Targeted Victory, to lead a campaign that has included placing op-eds and letters to the editor in local papers to promote anti-TikTok sentiment, especially when it comes to children using the app. Targeted Victory allegedly worked with local operatives to promote the negative coverage around purported trends on TikTok harming children to compel lawmakers to take action; the firm also sought to promote positive coverage about Meta and use the anti-TikTok pieces to deflect from government antitrust and privacy ...
Could Austin Be the Model for How to Save a Music Scene?
Austin’s success in the last decade as the so-called Live Music Capital of the World has come with a major drawback – the artists who call the city home have been the first ones priced out of the market. That paradigm might begin to change thanks to a non-profit group organized by Austin venue owners along the city’s famed Red River Street. On March 18, members of the National Independent Venue Association flocked to one of those venues for a special happy hour toasting their survival and return to Austin after a two-year closure. Their host for the day, Empire Control Room owner and NIVA cofounder Stephen Sternschein and longtime colleague Cody Cowan, executive director of the Red River Cultural District, were on hand catching up with friends and discussing recent improvements to the area...
FAIR Act Bill to Repeal California’s ‘Seven-Year Statute’ Amendment Wins First Committee Vote
The Free Artists From Industry Restrictions (FAIR) Act passed out of the California State Assembly’s Labor & Employment Committee on Wednesday (March 30) after a 4-2 vote in favor of the legislation. The bill now moves to the Assembly’s Committee on Arts, Entertainment, Sports, Tourism and Internet Media for an April 19 hearing and vote. Introduced by Assemblymember Ash Kalra (D-San Jose) in February, the FAIR Act — also known as Assembly Bill 2926 — would repeal a 1987 amendment to California’s “Seven-Year Statue” (a.k.a. California Labor Code Section 2855) that allows record labels to sue artists for damages if they leave after seven years but before delivering the required number of albums in their contract. The Seven-Year Statute, which limits personal services contracts for state ...
The 9.1 Cent Mechanical Royalty Rate Ditched in New CRB Ruling
The longstanding 9.1 cent mechanical royalty songwriters and publishers earn for every song sold may be a thing of the past. On Tuesday (March 29), the Copyright Royalty Board agreed to abandon that mechanical settlement between music publishers, record labels and digital services for the sale of songs for the upcoming 2023-2027 rate period, giving way to a new battle over what the rate should be for physical and download sales. The CRB judges’ decision came after receiving the settlement from interested parties in a motion to adopt it, as part of the overall rate-setting process, which also determines royalty rates for on-demand streaming. While the on-demand streaming rates are hard fought between digital services and publishers, with both sides racking up millions of dollars of litigati...
Warner Chappell Signs Morat Singer-Songwriters to Global Publishing Deal
Juan Pablo Isaza and Juan Pablo Villamil, Morat‘s lead singers and main songwriters, have signed a worldwide publishing deal with Warner Chappell Music. According to the publishing company, the deal covers future works as well as the pair’s entire back catalogue. “We’re delighted to partner with Warner Chappell Music and are proud to have them represent our catalogue,” Isaza and Villamil said in a statement. “They have an incredible global roster and we’re looking forward to getting the opportunity to collaborate with some of them in the future.” The deal with Isaza and Villamil was led by Santiago Menéndez-Pidal, president of Warner Chappell Music South Europe; Gustavo Menéndez, president of Warner Chappell Music Latin; Javier Dean and Carmen Picado, A&R director and A&R manager f...
MicroStrategy subsidiary will purchase Bitcoin after closing $205M crypto-collateralized loan
MacroStrategy, a subsidiary of business intelligence firm MicroStrategy, said it will purchase Bitcoin after obtaining a multimillion dollar loan from Silvergate Bank. In a Tuesday announcement, MicroStrategy said Silvergate issued a $205 million loan “secured by certain Bitcoin held in MacroStrategy’s collateral account.” The firm’s subsidiary MacroStrategy will be using the proceeds of the loan to purchase Bitcoin (BTC), pay fees and interest related to the loan and handle general corporate expenses. “The SEN Leverage loan gives us an opportunity to further our position as the leading public company investor in Bitcoin,” said MicroStrategy CEO Michael Saylor. “Using the capital from the loan, we’ve effectively turned our Bitcoin into productive collateral, which allows us to furthe...
Bybit and Crypto.com exchanges follow FTX and Binance into Dubai
Bybit exchange, based in Singapore, has announced it is relocating its headquarters to the UAE Crypto.com, on the other hand, is looking to establish a regional office in Dubai Thanks to a fast-growing and friendly environment, the United Arab Emirates has been pulling big names in the cryptocurrency industry lately. A fortnight ago, FTX exchange shared news that it had been granted approval to provide regulated trading and clearing services to users in Dubai. Less than 24 hours later, Binance announced that it was looking to set up shop and carry out regional operations in Dubai after securing a virtual asset licence. Now, Bybit and Crypto.com have joined the two in establishing a presence in the Persian Gulf region. Crypto.com, which shares a native home in Singapore, revealed in a Monda...
MacroStrategy obtains $205M BTC collateralised loan to buy more Bitcoin
MacroStrategy’s parent firm MicroStrategy already has a sizeable Bitcoin chest of more than 124,390 coins The interest-only term was provided by Silvergate, which specialises in FinTech and cryptocurrency, through the Silvergate Exchange Network leverage program. MacroStrategy, a subsidiary of the mobile software and cloud-based services provider MicroStrategy, has today been granted a $205 million loan to continue with its Bitcoin acquisition mission. In a press release published a few hours ago, MicroStrategy explained that the loan was collateralised by a fraction of the Bitcoins its unit owns – now in a collateral account under the custody of the two. Though specifics of the amount involved were not included in the press release, an SEC filing released last Wednesday shows that t...
