From UMG’s 13.3% YoY income progress within the third quarter to Spotify’s 7 million new subscribers… that is MBW’s weekly roundup
welcome to The music trade all over the worldWeekly Recap – the place we ensure you’ve caught the 5 greatest tales which have made headlines up to now seven days. The MBW Roundup is supported by Centtripwhich helps over 500 of the world’s best-selling artists maximize their earnings and decrease their touring prices.
The third quarter earnings cycle continued this week with Spotify and Common reporting their outcomes for the three months to the top of September.
Thursday (October 27), Common Music Group posted third-quarter income of two.664 billion euros ($2.68 billion) throughout all of its divisions (together with recorded music, publishing, and many others.).
Streaming and merchandising income had been two of the principle highlights of the quarter for UMG.
Common subscription streaming income particularly elevated 8.7% over one yr at fixed change charge at €991 million($998 million) within the third quarter, pushed, in response to UMG, “by continued good progress in music subscribers”.
UMG Merchandising Revenues Soared 101.1% yr over yr at fixed change charge at €189 million ($190.32 million) at T3.
In the meantime, Spotify reported that it had added 7 million internet Premium subscribers to its consumer base within the third quarter, bringing its complete international paid subscriber viewers to 195 million.
When it comes to funds, Spotify generated €3.036 billion ($3.06 billion) in quarterly income in Q3, up +12% yr over yr at fixed foreign money. Subscriber/Premium revenues represented €2.651 billion ($2.70 billion) within the third quarter, up +13% over one yr at fixed foreign money.
CEO of SPOT Daniel Eck additionally advised traders in the course of the firm’s earnings name this week that Spotify will take into account elevating its costs in the USA, following latest worth will increase by its rivals Apple Music and Youtube.
A person Apple Music subscription elevated by $1 to $10.99 monthly, whereas Youtube elevated the worth of its Premium household plan by 28% to $22.99.
Additionally this week, clean test agency The Music Acquisition Company wrote to its shareholders searching for approval, by vote, for an early liquidation, whereas CISAC reported that international music collections reached €8.48 billion in 2021 ($10.02 billion).
Over the summer season, Invoice Ackman’s Pershing Sq. predicted that Common Music Group “can develop income at an annual charge of about 10% for greater than a decade.”
Proper now, Common is taking on that problem.
UMG revealed its monetary outcomes for the three months to the top of September on Thursday, October 27. The corporate posted third-quarter income of two.664 billion euros ($2.68 billion) throughout all of its divisions (together with recorded music, publishing, and many others.)…
Doomsday analysts proceed to conclude that leisure subscriptions will take a beating in 2022 as a result of macroeconomic pressures. Spotify continues to problem them.
In Q3 2022 (the three months ending September), Spotify added a further 7 million internet Premium subscribers to its consumer base, bringing its complete international paid subscription viewers to 195 million.
This determine was revealed on Tuesday, October 25 by way of Spotify’s official third quarter earnings announcement.
SPOT’s 195 million subscriber base is 15 million subscribers forward of Spotify on the finish of 2021 (180 million).
The expansion of seven million subscribers within the third quarter was greater than Spotify’s personal forecast of +6 million…
Royalties from publishers and songwriters collected by their firms totaled €8.48 billion in 2021 ($10.02 billion).
Whereas this royalty complete represented a 7.2% enhance over 2020, it remained beneath pre-COVID ranges, underscoring the affect of lockdowns on dwell efficiency.
That is in response to CISAC’s World Collections Report 2021, revealed on Thursday 27 October.
Apple will increase the costs of Apple TV+, Apple One and Apple Music worldwide.
Within the US, beginning Monday (October 24), a person Apple Music subscription will enhance by $1 from the present worth of $9.99 to $10.99 monthly.
In an announcement supplied to MBW, Apple stated the change in its Apple Music pricing “is because of elevated licensing prices” and that, “in flip, artists and songwriters will earn extra for streaming music.” their music… “
Over the previous two years, we have seen quite a few big-budget SPACs bounce in and merge with music firms to publicize their chosen targets.
One such SPAC surfaced in January 2021, when Music Enterprise Worldwide revealed that longtime Geffen Data chairman Neil Jacobson was getting ready to IPO a brand new music firm in the USA.
Jacobson’s clean test firm, The Music Acquisition Company (TMAC), floated on the New York Inventory Trade in February final yr beneath the image TMAC.U, elevating $230 million within the course of.
TMAC.U, shaped particularly to carry out a merger/acquisition on this planet of music rights and music expertise, has remained largely silent since then – one thing that does not appear prone to change any longer within the close to future.
In response to a brand new submitting with the Securities Trade Fee (SEC) in the USA, Jacobson’s SPAC has written to its shareholders searching for approval, by way of a vote, to early liquidate…
