7 Summer Takeaways
UMG's Credit Rating, Black Arts Reparations, Concert Merch Conflict, Enter The Yeezyverse.
TAKEAWAYS
Salient statements from this week’s music news.
1. Tips For Concert Merch Bring Revenue — and Tension
Digital point-of-sale terminals have become a boon for the folks working the merch both as fans tap for big tips on top of expensive schwag.
Takeaway: Data shows that average spending is up from last year for every venue size; fans at shows in 500-capacity rooms, for example, are spending an average of $13.92, double what they were spending in 2019.
2. The Weeknd Partners With Binance for ‘First Crypto Powered World Tour’
Recent losses haven’t crushed crypto’s relentless drive into the entertainment space.
Takeaway: The Weeknd’s partnership with Binance follows April’s news of Universal Music Group‘s expansive, long-term partnership with the artist.
3. Gibson Wins Jury Verdict Against Dean Over Guitar Shapes
The iconic SG, Explorer and Flying V designs were all deemed “protected” by the suit, although only $4,000 in damages was rewarded after decades of infringement.
Takeaway: In a key win for Gibson, the jurors rejected arguments by Dean that those designs had become so commonplace that they’re now “generic” and free for all to use.
4. Universal Music Group Gets First Credit Ratings Since Going Public
Two of the big three credit rating agencies blessed the world’s largest music rights holder with a “stable outlook” when taking on both short-term and long-term debt.
Takeaway: Both Moody’s and S&P believe UMG will post a mid-single-digit growth rate in the coming two years (S&P forecasts 6% to 8% annual revenue growth). Both agencies based their rating on the growth coming from increased consumer adoption of on-demand streaming platforms and new licensing opportunities in social media, fitness and gaming.
5. California’s Reparations Task Force Takes on the Historic Theft of Black Art and Culture
The 600-page report points to examples from the music industry, Elvis in particular, in highlighting historical inequity beyond slavery.
Takeaway: The report includes a series of preliminary recommendations for California, encouraging the state to create an “Office of Freedmen Cultural Affairs,” to “compensate individuals who have been deprived of rightful profits” for their creative work, and to prevent further discrimination in arts and entertainment industries through a series of policies and legislation.
6. Kanye West’s Company Files Multiple Yeezus Trademarks, Including for ‘Metaverse Experiences’ and NFT Marketplace
The Yeezyverse could be coming soon.
Takeaway: Potential fields of use listed among the filings include board games, action figures, Christmas tree ornaments, face masks, retail stores, computer goods, plush toys, subscription services, nail polishes, facial makeup, video game software, amusement park rides, and much more.
7. ‘Almost Famous,’ Now a Musical, Will Open on Broadway This Fall
Cameron Crowe’s classic is the latest big-budget jukebox musical to hit Broadway.
Takeaway: The show is being capitalized for up to $18 million, according to a filing with the Securities and Exchange Commission.
