Welcome to Music Business 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.
Following experiences at the beginning of the week that Spotify was planning to cut back its workforce, on Monday (January 23) the music streaming firm confirmed that it is within the strategy of slashing over 500 jobs worldwide.
The agency confirmed in an SEC submitting that it’s decreasing its worker base by “about 6% throughout the corporate”.
In the identical submitting, Spotify confirmed that Daybreak Ostroff, Chief Content material & Promoting Enterprise Officer, is to go away the corporate.
Spotify CEO Daniel Ek instructed workers in a memo on Monday that, “I take full accountability for the strikes that obtained us right here at the moment.”
In the meantime, information of plenty of music rights offers hit our pages this week. On Tuesday (January 24), for instance, it was confirmed that Justin Bieber has agreed to promote his catalog to Blackstone-backed Hipgnosis Songs Capital (HSC).
Different offers introduced this week included Primary Wave Music’s acquisition of the music rights of Robby Krieger and the late Ray Manzarek of legendary US rock band, The Doorways, whereas Warner Music Group struck what it calls a “milestone deal” with legendary British progressive rock band YES.
Plus, Kobalt introduced that its first-ever worker, Chief Artistic Officer Sas Metcalfe, is stepping down, efficient February 28, 2023.
Right here’s what occurred this week…
1) OVER-SPENDING AND UNDER-PRICING: SPOTIFY’S COMMERCIAL MISSTEPS HAVE COME BACK TO HAUNT IT.
“I take full accountability for the strikes that obtained us right here at the moment.” And so he ought to.
Daniel Ek’s admission that he bears private accountability for yesterday’s information of Spotify slicing over 500 jobs is noble. It’s additionally 100% justified.
For my part, Ek’s loss-making firm has performed with hearth on three key issues these previous few years:
(i) Spending a monstrous sum of money on workers, gross sales, and advertising;
(ii) Spending a monstrous sum of money on Spotify’s podcasting technique, regardless of podcasting burning via Spotify’s funds; and
(ii) Stubbornly refusing to extend the worth of Spotify’s flagship subscription service in its largest market – not even as soon as – over the previous 12 years. Even if doing so would have seemingly made Spotify… a monstrous quantity of income.
These three components have coalesced to squeeze Spotify’s gross margin determine, which missed the corporate’s personal steerage in Q3 2022.
This gross margin wrestle has despatched Wall Road analysts right into a flap these previous few months, and finally contributed to Ek’s resolution this week to chop 6% of Spotify’s world workforce…
2) DONE DEAL: JUSTIN BIEBER SELLS CATALOG TO HIPGNOSIS’ BLACKSTONE FUND
It’s official: Justin Bieber has agreed to promote a career-spanning catalog to Blackstone-backed Hipgnosis Songs Capital (HSC) in a nine-figure deal.
On Tuesday (January 24), Hipgnosis introduced through a media launch that HSC has acquired “Justin Bieber’s 100% curiosity in his Publishing Copyrights (together with the Author’s Share of Efficiency), Grasp Recordings and Neighboring Rights for Bieber’s total again catalog, comprising over 290 titles launched earlier than December 31, 2021”.
[Universal Music Group continues to personal the grasp recordings of Bieber’s again catalog; it seems that Hipgnosis will now obtain Bieber’s artist royalty stream on these masters through Common. UMPG will proceed to manage Bieber’s publishing.]
The Wall Road Journal reported in December that the Hipgnosis/Bieber deal can be price round USD $200 million…
3) PRIMARY WAVE BUYS MUSIC RIGHTS OF ROBBY KRIEGER AND RAY MANZAREK OF THE DOORS, IN ‘MONUMENTAL’ DEAL
Major Wave Music has acquired the music rights of Robby Krieger and the late Ray Manzarek of legendary US rock band, The Doorways.
The corporate says that the “monumental acquisition” consists of Robby Krieger and the property of Ray Manzarek’s pursuits in The Doorways’ music publishing catalog, recordings, logos, and merchandise rights and revenue, amongst different issues.
The worth of the cope with Major Wave has not been disclosed.
The Jim Morrison entities and the band’s drummer John Densmore retain their pursuits individually from Major Wave… (MBW)
4) WARNER STRIKES ‘MILESTONE DEAL’ WITH YES, BUYS RECORDED MUSIC RIGHTS TO BAND’S ATLANTIC RECORDS CATALOG
Warner Music Group has struck what it calls a “milestone deal” with legendary British progressive rock band YES.
The deal sees Warner purchase the recorded music rights and revenue streams from the band’s “full” Atlantic Records period catalog.
The corporate notes that the acquisition continues “a longstanding relationship” between the band and Warner Music, which now spans over a half-century, starting with YES’ self-titled 1969 Atlantic debut album.
Warner calls YES “among the many most enduring, bold, and virtuosic bands in music historical past…”
5) SAS METCALFE TO STEP DOWN AS CHIEF CREATIVE OFFICER OF KOBALT MUSIC
Kobalt has introduced that after greater than 20 years with the corporate, Chief Artistic Officer Sas Metcalfe will probably be stepping down, efficient February 28, 2023.
Metcalfe was Kobalt’s first-ever worker, employed by founder and Chairman Willard Ahdritz, in response to an MBW interview printed in 2015.
Kobalt calls Metcalfe “a real pioneer within the music trade…”
MBW’s Weekly Round-Up is supported by Centtrip, which helps over 500 of the world’s best-selling artists maximise their income and reduce their touring costs.Music Enterprise Worldwide