Welcome to Music Business Worldwide’s weekly round-up – the place we be sure 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 maximize their revenue and cut back their touring prices.
This week, UK-listed Hipgnosis Songs Fund (HSF) issued a proposal to its shareholders to promote 29 catalogs from its portfolio for USD $440 million to a different Hipgnosis fund – the personal, Blackstone-backed Hipgnosis Songs Capital (HSC).
Hipgnosis Music Fund’s major motivation for promoting the 29 catalogs to HSC, in accordance with an announcement to traders on Thursday (September 14), is that it’s going to act “as a catalyst for a re-rating of [HSF’s] share worth”.
Additionally this week, Paris-headquartered Believe applauded Deezer‘s new ‘artist-centric’ streaming mannequin, created in tandem with Universal Music Group, however questioned the mannequin’s affect on “rising artists”.
Elsewhere, impartial music distributor DistroKid acquired web site internet hosting firm Bandzoogle, which gives numerous e-commerce instruments for musicians.
Plus, a household feud is taking part in out over the rights to the works of Motown songwriter and producer Ron Miller, whereas music royalties buying and selling platform JKBX is now formally stay.
Right here’s what occurred this week…
1) HIPGNOSIS’ BLACKSTONE FUND SET TO SPEND $440M BUYING 29 CATALOGS FROM HIPGNOSIS’ UK-LISTED FUND; COMPETITORS HAVE 40 DAYS TO TRY AND OUTBID ITS OFFER.
As predicted by MBW earlier this yr, UK-listed Hipgnosis Songs Fund (HSF) has issued its shareholders a proposal to promote 29 catalogs from its portfolio for USD $440 million to a different Hipgnosis fund – the personal, Blackstone-backed Hipgnosis Songs Capital (HSC).
In an announcement to its traders this morning, Hipgnosis Songs Fund (aka HSF, aka SONG) makes no bones about one in all its major motivations for promoting the 29 catalogs to HSC: That it’s going to act “as a catalyst for a re-rating of [HSF’s] share worth”.
If the proposed $440 million sale is accomplished, Hipgnosis Songs Fund says it could stay the proprietor of 81% of its present portfolio by Truthful Worth, with an elevated concentrate on older vintages.
Hipgnosis Songs Fund would retain possession of seven of its ten largest catalogs post-the deal, says the corporate.
Hipgnosis Songs Fund has additionally proposed to its shareholders that it promote a second portfolio of catalogs – incorporating 20,000 ‘non-core’ songs – this time to not Hipgnosis Songs Capital, however to a 3rd celebration on the personal market.
The proposed worth for this transaction is USD $25 million, taking the complete quantity of catalog gross sales proposed by HSF this week to $465 million…
2) BELIEVE APPLAUDS DEEZER’S ACTION ON ‘NOISE’ – BUT QUESTIONS NEW ‘ARTIST-CENTRIC’ ROYALTY MODEL’S IMPACT ON ‘RISING ARTISTS’
Final week, Deezer introduced the launch of a brand new ‘artist-centric’ streaming mannequin, created in tandem with Common Music Group. The mannequin is designed, in accordance with Deezer, “to raised reward the artists, and the music that followers worth essentially the most”.
On Monday (September 11), Consider – like Deezer, a Paris-headquartered firm – issued its response to the information.
Consider expresses some applause for the mannequin – but in addition expresses some considerations…
Impartial music distributor DistroKid has acquired web site internet hosting firm Bandzoogle.
Bandzoogle gives numerous e-commerce instruments permitting musicians to market and promote merchandise on to their fanbases.
In response to DistroKid, the Bandzoogle acquisition implies that artists will now be capable to energy digital, bodily and on-demand merch and music gross sales all “throughout the DistroKid ecosystem…”
4) JKBX GOES LIVE, FEATURING LISTINGS TO RESERVE SHARES IN ROYALTIES FROM HITS BY BEYONCÉ, ED SHEERAN AND MORE SUPERSTARS
Music royalties buying and selling platform JKBX is formally stay.
The platform’s arrival within the music enterprise has been talked about so much this yr, with the corporate asserting in a press launch final month that it’s aiming to “develop into a transformative pressure in music and investing”.
The JKBX platform, co-founded by CEO Scott Cohen, (co-founder of The Orchard and previously Chief Innovation Officer at Warner Music Group), will supply its customers the flexibility to spend money on Royalty Shares for compositions and sound recordings of hit songs….
A dramatic household feud is taking part in out over the rights to the works of Motown songwriter and producer Ron Miller – with a music trade publishing big caught within the center.
Miller, identified finest for co-writing For As soon as In My Life – a observe that turned a Scorching 100 hit for Tony Bennett, a No.2 hit for Stevie Marvel, and was additionally recorded by Diana Ross, Frank Sinatra, The Temptations and others – died in 2007, however his heirs have develop into embroiled in an advanced dispute over his royalties.
Now two of Lisa Miller’s half-siblings, additionally kids of Ron Miller, allege that she gained management over these copyrights by illegitimate means, and have gone to court docket over the matter.