Welcome to Music Business Worldwide’s weekly round-up – where we make sure you caught the five biggest stories to hit our headlines over the past seven days. MBW’s round-up is supported by Centtrip, which helps over 500 of the world’s best-selling artists maximize their income and reduce their touring costs.
On Wednesday (September 20), MBW predicted that new music streaming price rises would be with us by the end of the year.
Less than 24 hours after we issued that forecast, it came true.
Elsewhere this week, on Monday (September 18), Katy Perry sold a bundle of music rights to $500 million-backed Litmus Music. Litmus’ deal with Katy Perry, which industry sources suggest was worth around $225 million, marks this year’s biggest catalog deal with a single artist.
We also learned on Wednesday that all seven members of megastar K-pop group BTS are renewing their contracts with South Korea-based entertainment giant HYBE and its Big Hit Music subsidiary.
Plus, BMG is taking its digital/streaming distribution business in-house, while recorded music industry revenues hit $8.4 billion in the US in H1.
Here’s what happened this week…
1) DEEZER RAISES PRICES FOR SECOND TIME IN 12 MONTHS: INDIVIDUAL SUBSCRIPTION NOW €11.99 PER MONTH IN FRANCE, SPAIN, AS FAMILY PLAN BALLOONS TO £19.99 PER MONTH IN UK
On Wednesday (September 20), MBW predicted that new price rises in the world of music streaming would be with us by the end of 2023. It took less than 24 hours for that forecast to come true.
Yesterday (September 21), Deezer, the Paris-headquartered rival to the likes of Spotify and Apple Music, quietly announced that its prices are increasing yet again.
In a short statement posted on its website, Deezer wrote: “From September 21st, 2023, prices are adjusted for all new premium and/or family subscriptions in France, UK, Spain, Italy and the Netherlands. For our current premium and family subscribers in these countries, the changes in pricing will become effective at the earliest on the first billing period after October 24th, 2023.”
Katy Perry has sold a bundle of music rights to $500 million-backed Litmus Music.
The deal spans Perry’s five studio albums recorded for Capitol Records, including the Grammy-nominated Teenage Dream.
Litmus now owns the artist’s stake in her master royalty income and her publishing rights to the albums One of the Boys, Teenage Dream, PRISM, Witness and Smile – all released between 2008 and 2020.
Universal Music Group continues to own and/or control the master rights to the Capitol albums…
Just two months after taking charge of BMG as its worldwide CEO, Thomas Coesfeld’s first major move as the head of the music company is nearly upon us.
Two well-placed industry sources have indicated to MBW that BMG’s seven-year recorded music distribution relationship with Warner Music Group / ADA is coming to an end.
Subsequently, we’re told, BMG is taking its digital/streaming distribution business in-house…
Big news from BTS and HYBE: All seven members of the megastar K-pop group have renewed their contracts with the South Korea-based entertainment giant and its Big Hit Music subsidiary.
HYBE revealed the news in a regulatory filing on Wednesday (September 20), in which it stated: “Our company has completed the Board of Directors’ resolution to renew the exclusive contracts of seven BTS members”.
The company added in the filing that “this fact was judged to be a management matter that could affect the company’s financial status and investor decision-making, and was therefore disclosed…”
5) Recorded music industry revenues hit $8.4bn in the US in H1 – but paid streaming account growth slowed again
The US recorded music industry generated USD $8.4 billion in gross revenues in the first six months of 2023.
That’s the headline stat from the Recording Industry Association of America’s (RIAA) Mid-Year 2023 Report, which, published Monday (September 18), shows that on a retail basis, recorded music revenues in the US (money spent on streaming subscriptions, as well as physical and digital music), grew 9.3% YoY.
On a wholesale basis – i.e. the money that makes its way back to record labels, distributors and ultimately artists – the entire US recorded music industry generated $5.3 billion in H1 2023.
According to the RIAA data, that was up by 8.3% YoY…