Streaming Fraud By The Numbers
Live Nation Cashes In, Spotify Enters The Metaverse,
Salient statements from this week’s music news.
New numbers from Merlin Network peg fraud at 2.5% for ad-supported streams on Spotify (although some insiders says its as high as 10%).
Takeaway: “Even basis points [.01%] of market share being redirected into fraudsters’ hands have a material impact on everyone who shares in music revenue,” says one music industry source with experience fighting faking streams.
The pairing of platform giants will include a “studio” where visitors can collaborate on music in the metaverse.
Takeaway: [This] could lay the groundwork for players’ creating music in-game and then uploading the content directly to Spotify. Widely accessible music-creation platforms have proven popular as of late, with Soundful, which says that it “enables anyone to create incredible music quickly,” having pulled down $3.8 million in funding last month.
The firm is shopping its Tempo Music Investments catalog for $600M, or 20 times its current annual revenue.
Takeaway: Given this, a sale of Providence’s Tempo, which would mark the first private equity exit from the song catalog business, raises concerns that inflation and interest rate hikes are catching up with the hype.
Tons of tours, pent-up demand, higher prices and massive sponsorship checks all add up to record-breaking revenues.
Takeaway: Fans’ demand for live entertainment — and their willingness to pay higher prices — helped deliver a record quarter for Ticketmaster. Compared to the first quarter of 2019, transacted gross ticket value — ticket sales before Ticketmaster takes its cut — was up 39%.
The complex decision ruled that the heirs to the songwriter did not have the authority to terminate the renewal of a 1983 publishing deal they had signed under federal law.
Takeaway: The Second Circuit’s decision came in one of many recent cases over the termination right, which allows creators to take back control of their old music decades after they sell it to a label or publisher. Brian Wilson, Cher, 2 Live Crew, Dwight Yoakam and a slew of others have recently fought termination battles, and two major class actions are seeking to enforce the right en masse against Universal Music Group and Sony Music Entertainment.
UK promoters are using higher prices and limited invites for cis-white males in an attempt to make their parties more BIPOC/LGBTQIA+ friendly.
Takeaway: Outside of club music, Noor said, concession tickets exist for multiple groups—families, children, disabled people—so why is a party any different? This is also a small step towards reversing the economic disadvantage that many marginalised people face.