Welcome to Music Business Worldwide’s weekly round-up – the place we be certain you caught the 5 greatest 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 scale back their touring prices.
Some extra of ’em wealthy males north of Richmond are headed for the music business.
That’s what the enterprise has been whispering in MBW’s ear this week, anyway – with sturdy rumors that NYC-based non-public fairness agency, New Mountain Capital, is in superior talks to probably purchase the (now for-profit) BMI (Broadcast Music Rights Inc).
New Mountain Capital at present has over $40 billion in belongings underneath administration, together with an funding in Citrin Cooperman, dwelling to the workforce beforehand often called Massarsky Consulting – a number one valuer of music rights.
Elsewhere this week, YouTube and Common Music Group collectively introduced that they’re working collectively to construct AI instruments for the music business that don’t screw over artists and rightsholders.
Plus, two established entrepreneurs/traders within the fashionable music biz – SONGS founder Matt Pincus, plus Kobalt founder Willard Ahdritz – each joined a $65 million funding spherical into dwell music biz disruptor, DICE.
All of this and extra pinged across the pages of MBW this week. Listed below are our 5 greatest tales of the previous 5 days…
1) YOUTUBE AND UNIVERSAL MUSIC GROUP PARTNER TO DEVELOP AI MUSIC TOOLS – COMPLETE WITH ‘PROTECTIONS’ FOR ARTISTS AND RIGHTSHOLDERS
Are you nervous concerning the type of generative AI instruments that Alphabet/Google/YouTube may be capable to produce within the years forward?
Do you worry a future the place a bazillion tracks from ‘pretend Drakes’, constructed on Google expertise, are uploaded to streaming companies every day – with none compensation going to the musicians/music rightsholders whose work ‘impressed’ this AI output?
In that case, Monday (August 21) introduced some information which may simply ship you a extra restful night time’s sleep: YouTube and Universal Music Group have shaped an alliance that they are saying will collectively develop AI instruments that provide “protected, accountable and worthwhile” alternatives to music rightsholders.
Different music business gamers are being invited to get entangled.
2) SONGWRITERS ARE WORRIED ABOUT BMI’S PRIVATE EQUITY SALE – AND IF IT WILL HURT THEIR ROYALTIES. WHAT HAPPENS NOW?
The on-again, off-again sale of US-headquartered performing rights group BMI seems to be on once more, and this time round, songwriters are asking pointed questions on what BMI’s sale might imply for his or her royalties.
BMI, one of many two principal music rights assortment organizations within the US, has put itself up on the market for the second time in lower than a 12 months, and simply 10 months after it introduced it was switching from working as a non-profit to being a for-profit enterprise.
MBW has heard rumors from senior music biz figures that BMI has explored talks with numerous potential backers/suitors, with the newest identify on the lips of the enterprise being New Mountain Capital, an NYC-headquartered non-public fairness agency with mixture belongings underneath administration of over USD $40 billion.
One senior music publishing supply informed MBW that New Mountain Capital had just lately begun a due diligence course of on BMI. (MBW has contacted spokespeople for each NMC and BMI for remark.)
Sources recommend that New Mountain and BMI have agreed a transaction in precept for the previous firm to accumulate the latter for roughly USD $1.7 billion. Different sources recommend, nonetheless, it’s not but a accomplished deal.
3) DICE RAISES $65M FROM INVESTORS INCLUDING MATT PINCUS, WILLARD AHDRITZ AND MORE
UK-born cell ticketing platform DICE has raised $65 million in a brand new funding spherical led by MUSIC, the funding firm co-founded by Matt Pincus and LionTree.
Pincus, MUSIC’s CEO, may also be part of the DICE Board of Administrators.
Different traders on this new funding spherical embrace Structural Capital and Ahdritz Holding LLC, the funding car for Willard Ahdritz, founder and chairman of Kobalt Music; with comply with on investments from Exor Ventures and Mirabaud Way of life Fund.
4) ASHLEY GORLEY’S TAPE ROOM MUSIC TO SELL OVER 350 SONGS TO RED LIGHT VENTURES AND FIREBIRD MUSIC UNDER NEW PARTNERSHIP
Nashville-based Tape Room Music will promote “over 350 exploited songs” from its catalog to Crimson Mild Ventures and Firebird Music as a part of a brand new strategic partnership.
Tape Room Music, a publishing and artist growth firm, was established by songwriter Ashley Gorley.
The songs embrace Sam Hunt’s Physique Like A Backroad, Luke Bryan’s Dawn, Sunburn, Sundown, Do I Make Ya Wanna by Billy Currington, Lee Brice’s One Of Them Women, Pondering ‘Bout You by Dustin Lynch and MacKenzie Porter, and extra.
5) ANGHAMI WELCOMES $5M INVESTMENT FROM SRMG VENTURES
In November final 12 months, rumors started rumoring that MENA-based streaming service Anghami might probably be acquired by Spotify.
That concept by no means turned a actuality. In the meantime, in the identical month, Anghami diminished its world headcount by 22% because of the “influence of difficult macroeconomic situations”.
This week introduced one other chapter in Anghami’s ongoing story – with a robust new investor approaching board on the firm.
SRMG Ventures has made its third funding with a USD $5 million funding in Anghami.
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