Takeaway Takeover - Jan 2024
After an always-quiet December, January kicks off a new round of news that needs to be takin’ away.
TAKEAWAYS
Salient statements from this week’s music news.
1. UMG’s Next Artist-Centric Step is ‘Superfan Experiences and Products’
After delivering sweeping royalty reform in just 12 months, Sir Lucien Grangie’s plans for 2024 could be equally impactful.
Takeaway: Grainge said that UMG plans to invest more in its in-house tools for artists to “create experiential, commerce and content offerings for their fans” which he described as “the blueprint for the labels of the future”.
2. SoundCloud Is Reportedly Looking To Sell for $1B USD
The streamer predicted its first-ever profitable year following several rounds of layoffs.
Takeaway: SoundCloud’s alleged plans to sell are perhaps indicative of a larger, downward trend of independent music streaming platforms. In September 2023, Bandcamp was sold to its third owner in 18 months, along with laying off roughly half of its workforce.
3. Music Industry Applauds Introduction of ‘No AI Fraud Act’ in U.S. Congress
The bill aims to battle deep fakes, one of several fronts where machine music might overtake human creation.
Takeaway: A right of publicity is an intellectual property right that protects against the unauthorized use of a person’s likeness, voice or other aspects of their identity. Unlike many other intellectual property rights, the right of publicity isn’t consistently recognized in laws around the world, or even within the US.
4. Developer of Las Vegas-Style Sphere in East London Withdraws Plans
The UK version of the Vegas Sphere has been put out to pasture due to conflicts between London’s warring political parties.
Takeaway: People living near the proposed development site had reportedly said they were “insulted” after MSG allegedly offered blackout blinds as a way of mitigating the glow from the images emitting from the orb-like structure.
Spotify Scales Back Ticketing Ambitions After Job Cuts
Podcasts weren’t the only once-promising revenue source to be soured after a year of layoffs.
Takeaway: Despite continued user growth, adding 6 million net subscribers in the third quarter of 2023 alone to 226 million paying users, Spotify’s path to consistent profitability remains challenging.
6. TikTok Is Reportedly Enlisting LVMH To Help Combat Fake Goods
The company’s commitment to increasing its in-app sales “tenfold” won’t be at the expense of becoming an online flea market for fakes.
Takeaway: The app is seemingly concerned that faux items will dissuade customers from shopping there. It also appears to be differentiating itself from other online shopping platforms based in China, such as Alibaba
7. Pusha T Got One Coke Rap Into This Corporate Ad Track About Saving for Retirement
The MC joined Wyclef, Lola Brooke, Flau'jae, and Capella Grey on "Paper Right" for the financial services giant TIAA
Takeaway: Early on in his career, Pusha famously helped co-write the McDonald’s “I’m Lovin’ It” jingle but claimed he only got paid a one-time fee. A couple of decades later, he got back in the fast food commercial game on behalf of Arby’s, even dropping a couple of McDonald’s diss tracks.
