This website uses cookies to give you an incredible experience. By using this website you agree to the terms This website uses cookies, learn more ×

Label Worx

Top

 

NEWS NEWS

NEWS

Spotify Profit Payouts: What's the fairest way to recompense artists?
Posted By : Alex Powell
|
Posted Date : September 4th, 2018
The following blog comes from the CEO of the UK-based Music Managers Forum, Annabella Coldrick (pictured). She dissects the different ways that major and independent labels are distributing proceeds from Spotify share sales - and ponders what it all might mean for the lump sum coming from Facebook.

For the artist and management community, the most controversial element of Spotify's transition to a publicly traded company was how (and if) the three majors and Merlin-member labels would share the proceeds from sale of their equity holdings.

These stakes were agreed as far back as 2008. At the time, music streaming was in the earliest stage of adoption (Spotify gets a mere two mentions in the IFPI's 2009 Digital Music Report) and, although there were sensible rationale for the largest rights holders to demand equity, a lack of transparency surrounded these arrangements and the basis on which they were agreed.

We now inhabit a different world. Streaming has evolved into the record industry's dominant revenue stream (IFPI reported a 41.1% increase in streaming revenue in 2017) and Spotify the dominant global service.

The Music Managers Forum has consistently argued that, if the combined value of all repertoire/market share was used as a means to secure equity stakes, then morally it should be shared with all artists regardless of previous commercial arrangements.

In other words, the ideal scenario would be to treat these divestments as a one-off payment - from which all artists would gain. This is not, of course, a process without challenges. Essentially, we're talking about making the unattributed attributable. There's a lot to untangle.

At the MMF we understand that equity payouts are not that easy to calculate, particularly if artists and labels have changed business partners over the term the equity was held. In practice, it will likely be impossible to make distributions to everyone's agreement.

We also think it's important to manage expectations. Although the overall sums are large, when divided between thousands of artists they are unlikely to constitute a retirement fund.

However, if these deals were made on a broad-brush basis of 'market share' then, arguably, they should be returned to the widest cross-section of artists - regardless of whether they're still signed to a label, or whether they're signed to a label distributed by another label. That would seem fair to those whose music was traded for equity in the first place.

Since April, a clearer picture is now emerging of what's likely to happen. Or at least a little clearer.

So, what do we know?

Sony wrote to artist and managers in June saying they would also be sharing net proceeds of the $750m equity they have divested so far (half their holding) minus the actual costs related to acquisition and sale on a royalty basis, using an illustration of their US standard 16% royalty with deducted producer royalties.

They also employed an allocation methodology equally weighing the overall revenue and Spotify revenue to give recognition to artists on their current roster and in catalogue at the time the equity was obtained. This resulted in an allocation to nearly 100,000 eligible artists and participants with payouts beginning August 2018, and will continue as further equity is sold.

The positive news is SME won't treat this payout against recoupment and will share with all currently distributed labels (e.g. through the Orchard) who should then pass onto the artists they work with.

However, they will not pay out to labels they are no longer in business with, so will retain 100% this income. Artists signed to these labels will not receive anything.

Warner has sold their entire stake of Spotify equity for $404m and will be sharing $126m of the proceeds with artists according to their contractual terms. That means some will receive significantly more than 25%, and some a lot less - based on individual royalty rates.

Warners' calculations are based on actual consumption on Spotify over the term of the deal from October 2008-March 2018 (from not all catalogue).

WMG wrote to artists representatives in August with more detail, stating the proceeds will be credited to artists' account for the period to June 2018 as 'equity proceeds'.

However, as the share is against recoupment, much of this will go to the bottom line and remain with the label. They also are sharing payments with distributed labels, but only if this is part of the contract - so if an artist is signed to a distributed label through ADA they are likely to get nothing.

It is also unclear what then happens to the money that's not being distributed out of the artists' section of the pot when catalogues have moved on and if this is included in the $126m artist payout or not.

Universal also publicly committed to share payments in March 2018, announcing that 'consistent with UMG's approach to artist compensation, artists would share in the proceeds of a [Spotify] equity sale.' No further information has come into the public domain and it is understood none of their shares have yet been cashed in.

Merlin announced in May that it had sold 100% of its equity (estimated at over $100m). All labels that are part of the Merlin deal are seeing the equity paid across based on actual consumption on Spotify over the length of the deal.

Merlin labels can decide their own policy within the scope of WIN's Fair Digital Deals Declaration.

Beggars, Secretly and Domino have pledged to share as a minimum 50/50 of the equity proceeds with artists against recoupment - or more where the contractual split is higher.

AWAL/Kobalt are treating the equity as income like any other and paying across as a revenue share (whilst retaining 15%) based on actual consumption on Spotify during the term of their Merlin deal.

With all of these, we understand income will start to come through this autumn.

So yes, the process is complex - but it's also important, and for two important long-term reasons.

Firstly, trust.

Relationships between labels and artists, historically rather fractious, are now in the process of being realigned. Artists and managers are increasingly business partners with labels, not simply at the end of a supply chain where they sign over copyright for life. That was the old world; we're now in the new.

The majority of labels are becoming closer to service companies, while many managers now run their artist's own labels. We are frequently much closer due to these shared interests - but that also needs a shift in communication. Nobody wants to fall back into bad habits. As business partners, artists and managers should not learn of new deals via the trade press. They need information in advance.

And secondly, Facebook.

It would be easy to see Spotify as a one-off; as the last deal of its type before streaming altered the balance of the recorded business, but other unattributable deals are still being agreed. Facebook is the biggest, with over $1bn being paid for the use of music for the next two years.

Many labels are privately committing to share with artists, but again using different methodology - some using YouTube consumption, or YouTube+Spotify, as a proxy to payout in theory from this autumn.

Managers are not involved in these discussions about how this will work (even with the indies) and if we're lucky will get an email at the time statements go out explaining how the calculations have been made. Again, the policy is being decided on old-world principles of record labels being rights owners and artists and their team as content suppliers with no stake in the shape of the industry.

In the new world, we're increasingly rights partners. Artists and managers should be treated as such, with far more engagement as to how these decisions are taken and a greater understanding of what they mean
www.musicbusinessworldwide.com

 

Next Article : Former Amsterdam prison to be converted in to event space for ADE

Do you have questions?

Our team of specialists are on hand to answer all of your questions so please don't hesitate to get in contact.

GET IN TOUCH

Join Label Worx today

Signing up is quick and easy using our online form. Complete this and one of our Account Managers will be in touch.

SIGN UP TODAY

More News

New DSP : SoundCloud Premier

Our News   /   September 6th, 2018

New DSP : SoundCloud Premier

SoundCloud are the world's largest open audio platform and announced earlier in the year of their expansion of its monetization and development program for creators, SoundCloud Premier. Since its inception, SoundCloud Premier has empowered creators to control their careers by offering a leading revenue sharing rate, and direct access to their audience to promote tracks and connect with fans worldwide in real-time.

SoundCloud announces integration with the Official Charts Company for UK & Ireland charts

Industry News   /   September 16th, 2018

SoundCloud announces integration with the Official Charts Company for UK & Ireland charts

SoundCloud has announced that SoundCloud On-Demand plays in the UK & Ireland will now be included in the data that informs the Official Charts in the UK & Ireland. Chart inclusion will be effective as of September 14th, 2018. (impacting the Official Charts from September 21st, 2018). On-demand plays represent streams from both the SoundCloud Go+ and Go subscriptions, along with streams of official, identified tracks for monetization in the ad-supported tier. SoundCloud's On-Demand streams will now be part of: The Official Singles chart The Official Albums chart The Official Independent Singles In addition to a number of genre charts including Urban, Dance, R&B, Rock & Metal and more.

How Does Facebook & Instagram Use My Content

Our News   /   September 6th, 2018

How Does Facebook & Instagram Use My Content

We have entered into a deal with Facebook to work with, develop and implement a rights management and royalty payment/reporting system. We are currently delivering all content to Facebooks Audio Library. The Audio Library is the central hub which Facebook will be exploring many different ways to bring music to the Facebook community. So far these include; Share Videos with Music on Facebook Facebook is working to enable people around the world to include music in their videos on Facebook, opening up more options for creativity and sharing memories with friends and family. Facebook is testing this in several markets currently. Lip Sync Live Facebook is starting to roll out Lip Sync Live, which lets you lip sync to songs. To try it out, choose the Lip Sync Live option when starting your Live video. After selecting a song from the song list, you can also add a description and customise your video with masks or a background. When broadcasting with Lip Sync Live, friends will see the artist and song highlighted on the video and can tap to follow the artist on Facebook. Instagram Music Stories Similar to adding emojis/GIFs, users will now have the option to add music by tapping on the sticker icon - searching/browsing for a song, selecting the best segment to match their story - and posting. When friends watch the story, they'll hear the clip the user chose playing over their photo or video. They'll also see a sticker with the song title and artist name. IMPORTANT Facebook are rolling out these features out over a period of time - starting with iOS, with Android following. Additionally, they will be adding more songs on a regular basis and, as such, you may not see your titles included right now. Facebook has assured us that they are working hard to activate Audio Library feeds and match recordings with publishing data, prioritising top performing content. There is no defined timeline, however, more content will be made available in the near future as this product is rolled out further.

Former Amsterdam prison to be converted in to event space for ADE

Industry News   /   September 4th, 2018

Former Amsterdam prison to be converted in to event space for ADE

Bijlmerbajes prison, a sinister and defunct penitentiary located near Amsterdam's Amstel railway station, will be converted into a massive party location during Amsterdam Dance Event (ADE) this year. Organized by Audio Obscura, the famous prison - which was officially closed in 2016 - will host three parties between Thursday, October 18 and Saturday, October 20. The first night will host the beloved North American selectors Seth Troxler and Honey Dijon, who will bring the uplifting flair of Chicago and Detroit house to the daring location alongside the fantastic New York talent, Carista. On Friday, October 19, the event takes a darker turn, promising to showcase 'techno in its finest form' with Electric Deluxe's head-honcho Speedy J,Rodhad, Jon Hester and the British Clouds. The final show of the three-day run will be headlined than none other than Mixmag's 2017 DJ of the year Nina Kravitz, who will bring her label to soundtrack the last night of this unprecedented prison riot. Tickets for these three events will go on sale on September 5 at 12pm CEST.

Police struggled to shut down a UK rave that lasted for 17 hours.

Industry News   /   August 28th, 2018

Police struggled to shut down a UK rave that lasted for 17 hours.

An illegal rave taking place in Bevercotes Colliery near Ollerton over the Summer bank holiday weekend continued for a total 17 hours before police finally managed to disperse the gathering. Due to the size of the rave, the authorities tasked with shutting down the event sent in a helicopter and extra officers to deal with the situation. Nottinghamshire Police's force control room told the UK publication Lincolnshire Live that storming in and immediately shut down of the event would be a bad idea since dispersing a large gathering such as this one needs 'careful time and planning.' Police set up a perimeter around the event to ensure that those leaving the location were not driving under the influence. Hundreds of residents complained about the excessive noise coming from the event, many saying that the music could be heard from 'seven miles away.' Despite this, a huge number of locals voiced their support for the revelers via the Retford Times Facebook page, saying they are 'not causing any trouble' and wishing them 'a cracking good time.' As the weather turned and heavy rain started to fall on the spontaneous gathering, the crowd gradually began to disperse on their own before police moved in to clear out the event. Check out a short clip of the rave below. Last weekend, police allowed an illegal forest rave in the Thetford Forest to continue on for hours since there was 'no disturbance.'

Fake MJ? This is going to take some unpacking

Industry News   /   August 27th, 2018

Fake MJ? This is going to take some unpacking

To bring you up to speed as quickly as possible: there is, allegedly, a chance that three tracks on Michael Jackson's 2010 posthumous album, Michael, were, in fact, recorded by a Michael Jackson impersonator. This accusation is lodged within the US court system as you read this, and, despite interesting evidence in its favour, may turn out to be true or untrue. We'll come back to this because, even if it's faintly accurate, it's an incredible Netflix documentary waiting to be made. What really matters today, however, is this: Sony Music has stated that it did not confirm, early last week, that these tracks were indeed recorded by a fake MJ. If it did, it would make this story ten times more interesting. But, says the company, it just didn't happen - and logic is on its side. To sufficiently explain why we need to start at the start. In 2014, an MJ megafan - Vera Serova - filed a class action lawsuit after she became suspicious that three songs from Michael - 'Breaking News,' 'Keep Your Head Up,' and the 50 Cent collaboration 'Monster' - weren't actually sung by her idol. Whether or not she was correct in her belief is still being debated. (Serova presented research from forensic audiologist Dr. George Papcun to back her claims. Papcun concluded in a 41-page, peer-reviewed report that the vocal on the tracks were not likely to have been recorded by the King Of Pop.) Sony has, for some time, argued that if - and it's a very big if - the three tracks in question were recorded, as Serova suggests, by an MJ impersonator, then it couldn't have possibly known. That's because, according to Sony, it received the recordings in good faith from a production unit - which in this case, would mean Angelikson Productions LLC. Angelikson Productions is owned by Jackson's long time friend Eddie Cascio, and was one of the parties targeted by Serova's initial class action. Fast forward to last Tuesday (August 21), in a Californian court of appeals. The purpose of this hearing wasn't actually whether Jackson recorded the vocals or otherwise. It was, in basic terms, to determine whether legally-punishable injury may have been caused to members of the public who bought the record believing Jackson recorded every track. As such, a lawyer representing both Sony and the Jackson Estate argued where and how legal repercussions should land if - and, again, it's a very big if - the vocals on the three tracks weren't recorded by Jackson. This appears to have been misinterpreted by some as Sony 'confirming' that the vocals on the songs were indeed not recorded by Jackson. As a result of this misinterpretation, all hell broke loose: headlines appeared in a multitude of powerful publications, from The Sun to Vibe, Spin, Fortune, Vulture and Fox News, suggesting that Sony had indeed 'owned up' to the fake Jackson vocals. A subsequent joint statement on behalf Sony and the Jackson Estate, however, rubbished this idea: 'No one has conceded that Michael Jackson did not sing on the songs. The hearing Tuesday was about whether the First Amendment protects Sony Music and the Estate and there has been no ruling on the issue of whose voice is on the recordings.' There are two strands to this drama worth considering. The first is the stunning power of 'fake news' to spread like wildfire in the modern age, seemingly without basic due consideration. Just think this one through for a second: remember that Sony is denying any culpability over the possibility that Jackson didn't record the songs. Its key argument in order to do so is pretty much this: we don't know who recorded those songs, because we trusted the production company/companies managing the studio process to deliver authentic masters. Would it not rather destroy Sony's wider argument to then turn around and say, 'Actually, changed our minds: it's definitely not him!' Sadly, as the old adage goes: 'A lie gets halfway around the world before the truth has got its boots on.' The bigger story here, though - the one which should get eyes lighting up at Netflix, and the one to keep focused on in the coming months and years - is the David vs. Goliath narrative. Vera Serova, a UCLA law student, believes someone representing Michael Jackson defrauded his fans following his death with the 2010 album Michael. In 2014, she started a class action, backed by expert testimony, to fight for that fact. Her accusations remain unproven. but they're being taken very seriously at the highest level.

Calvin Harris says he's 'too old for touring'.

Artist News   /   August 21st, 2018

Calvin Harris says he's 'too old for touring'.

Calvin Harris - the highest paid DJ in the world - has said he is 'too old' to go on tour. In a recent appearance with Sam Smith on Scotland's Forth 1 show, Boogie & Arlene, the EDM superstar (34) spoke about how he much prefers studio work to playing live and explained that he has no intention of going on tour anytime soon. You can listen to the interview below. 'I've done tours before but for me, I think my personal strength is in the studio,' he said. 'It's what I enjoy the most.' 'But a tour? No way. I can't do tours any more. I'm too old.' Harris and Smith were on the show to promote their new collaborative single, 'Promises'. Earlier this year it was announced that Calvin Harris would extend his Las Vegas residency with the Hakkasan group until 2020. The contract, which Harris plays in a casino nightclub once a week, is worth $1 million per gig. This isn't the first time the DJ - who recently was turned into a wax model in New York's Madame Tussauds - has spoken about his displeasure with touring festival stages in comparison with his residency shows. 'Standing up there and it's the fireworks and all that stuff, but you've got no connection with anyone,' he told Zane Lowe in February. 'I want to spend more time in studio and it's been that way for a couple of years,' he added at the time. 'I haven't done any meaningful festivals for years.' Despite all that though, Harris has been booked for one other string of gigs this year, a three-date Pacha Ibiza series. He played the first of those shows last week on 14th August, will play the next tomorrow (21st August) and will play one more next Tuesday (28th August).

Introducing Kwettr: Monetizing Social Media Channels

Industry News   /   August 15th, 2018

Introducing Kwettr: Monetizing Social Media Channels

All labels and artists can relate to the following: social media fanbase on one hand and portals such as Spotify on the other hand. The most important question: how do we turn our followers into customers? Kwettr uses relationship marketing, direct communications and artificial intelligence to answer that question. Kwettr specializes in making social payment systems: pay with a tweet, like, snap, selfie or Spotify follow for content. Spotify, Beatport, Apple Music and Amazon promotional campaigns to boost revenue.

Warner Music Group sells it's Spotify Stake.

Industry News   /   August 8th, 2018

Warner Music Group sells it's Spotify Stake.

Warner Music Group has sold all of its shares in Spotify for more than half a billion dollars. Warner is allocating 25% of this money to its artists, but, unlike Sony, it's not ignoring unrecouped balances when it does so - meaning that a significant proportion of this cash will actually remain at WMG. Warner today (August 7) confirmed it was no longer a stakeholder in Spotify, which floated on the New York Stock Exchange on April 3. WMG CEO Steve Cooper (pictured) told investors on an earnings call that Warner realized $504m in proceeds from selling 100% of its Spotify stock in the quarter ending June 2018. 'I'm pleased to say that, in connection with the sale of our Spotify equity, an estimated $126 million will be credited to artist accounts on their June 30 royalty statements which are issued around the world in August and September,' said Cooper. That $126m equates to exactly a quarter of the $504m. MBW understands the $126m includes payments to Warner/ADA-distributed labels, but these make up a small proportion of the money. Warner, as previously announced, is only sharing Spotify proceeds with its partner labels when obligated to do so by individual contracts. MBW revealed earlier this year how Sony Music will be paying its artists and partner labels from its Spotify stock proceeds. In a surprise move, the Rob Stringer-led major will ignore unrecouped balances when it pays its acts a chunk of its windfall - via checks that are scheduled to arrive with performers by the end of August. Unlike Warner, Sony will also be sharing these Spotify share profits will all of its eligible partner labels. According to MBW's analysis, Warner was granted a 4% equity stake in Spotify as part of licensing deals first signed in 2008. Due to dilution of stock from additional investors, we estimate, Warner ended up with approximately 2% of Spotify by the time the company floated in April. Warner Music Group's total revenues grew 1.9% year-on-year at constant currency in its fiscal Q3 (calendar Q2), with a quarterly haul of $958m.Music Business Worldwide

Dirtybird announces line-up for The Birdhouse festival in Chicago.

Label News   /   August 7th, 2018

Dirtybird announces line-up for The Birdhouse festival in Chicago.

Dirtybird has revealed the line-up for its inaugural Chicago-based event, The Birdhouse Festival. The festival will combine classic American carnival nostalgia with Dirtybird's carefree and jumping sound system stylings for what is being described as 'a cotton-candy fueled outdoor ride.' Dirtybird regulars will be taking over the decks for this imaginative event, including Will Clarke, J. Phlip - who will join Chicago legend Gene Farris for a special b2b session - and Christian Martin who will join forces with his brother in arms, Ardalan. Chicago locals ZDS, Fancy Fux and Teknicoz will also join the festivities and attendees will be treated to a surprise set from another local Chicago legend as well. Dirtybird leader Claude VonStroke will headline the festival and plans to bring his 'juke and footwork inspired house vibes back to the midwest' following his memorable headline set at Detroit's Movement Festival in May. The event will also feature games, prizes, classic carnival grub, and of course, big electronic tunes that are bound to send off the summer with a bang.

Introducing I AM POP. A new way of storytelling in chat.

Industry News   /   August 1st, 2018

Introducing I AM POP. A new way of storytelling in chat.

Telling and sharing stories has been at the heart of the internet since day one. And it's especially alive on today's dominant platform: messaging. Even though messaging apps are bigger than social networks, most businesses still rely on news feeds for attention, but this is becoming increasingly difficult. Newsfeeds are overloaded with content and algorithms are required to prioritize friends and family over businesses. As a result, only 2% of your audience will see your updates in their newsfeed, with an even smaller percentage engaging. However, on messaging apps, the conversation is one-on-one. Chat has very high attention rates and new forms of storytelling open up a lot of possibilities.

Airport Etiquette: How to behave En Route to your Rave Holiday.

Industry News   /   July 30th, 2018

Airport Etiquette: How to behave En Route to your Rave Holiday.

Look, we know a trip abroad - whether it's to Ibiza, Croatia, Berlin or Amsterdam - is a reason for excitement. The thought of boozing in the sun for a week, partying in open-air clubs or being on the dancefloor for hours on end is enough to zap any raver into a child at 5am on Christmas Day. The problem for some, though, is that excitement often turns into over-excitement and over-excitement sometimes turns into misbehaviour. That, when in an airport on a flight, means you're going to annoy and anger a shit-load of people, whether it's flight attendants, fellow passengers or even your better behaved mates. This summer we reported on a story of how one flight from Belfast to Ibiza had to be diverted to France because of someone's rowdy behaviour, while the Balearic governement wants to limit passengers' alcohol intake at airports and on flights to Ibiza and Mallorca. UK airline Ryanair noticed there was a problem and proposed a two-drink limit for passengers before banning duty-free booze on its flights. That means that gigantic bottle of vodka you bought in the airport won't be able to be opened until you touch down on foreign land. We'd hate to assume that you're a source of wrongdoing when travelling, but felt it was needed to give some pointers on airport and flying etiquette. Check out the below for a reminder of how to behave ahead of that trip away.

The Green Room (August)

Our News   /   July 26th, 2018

The Green Room (August)

It's approaching that time of the month again and the August edition of The Green Room will be sent on the first Thursday of the month.

Label Worx - Online Abuse Statement

Our News   /   July 19th, 2018

Label Worx - Online Abuse Statement

Following a recent escalation in online abuse directed at a number of our staff, family members and customers by a certain individual, Label Worx would like to make the following statement. In 2017 it came to our attention that an individual using the Label Worx service was acting fraudulently, by passing off other people's work as their own. The individual concerned owned a number of accounts and labels, and was downloading tracks from third party Soundcloud accounts, changing the artist and title and submitting as original material via their own artist, label profiles and a number of fake profiles. We carried out an investigation after a receiving a number of complaints, and the individual's accounts were closed. In the months that followed the individual in question opened more accounts using assumed identities and continued to steal tracks from other Soundcloud users. When confronted they admitted to using fake profiles with us and Symphonic Distribution, but asserted that we owed them royalty payments regardless. As these royalties are legally due to the artists that owned the original tracks, we refused to pay due to the breach of our terms and conditions. We have liaised with Symphonic Distribution and they are supportive of our actions and are dealing with this individual as per their terms and conditions. After further demands for payment, the individual has become increasingly threatening, sending threats via email and social media, and harassing some of our staff's family members. We do not want to go into details about the nature of these threats, but they have escalated to the point that the individual has now been reported to the police, and they are building a case against them. Label Worx will never tolerate threats against our staff, and in this instance we would advise any of our clients who have received messages from this individual not to engage with them. We would also like to reiterate that Label Worx will not be keeping any of the royalties that have been paid as a result of these illegally obtained tracks. We will do our best endeavors to pay the original creators of the music, and anything left in our account will be donated to anti-cyber cullying charity www.cybersmile.org via our GoFundMe page: Donate We would like to thank our clients for their support, and hope that this unfortunate situation is swiftly resolved. Label Worx

Is Instagram about to become the music industries best friend?

Industry News   /   July 17th, 2018

Is Instagram about to become the music industries best friend?

Jaden Smith last week quietly dropped Electric, a surprise five-track project. This particular news unsurprisingly didn't generate endless headlines like other major out-of-nowhere album releases, but the method of release should've grabbed some more attention. The project was an exclusive, but not to Apple Music, Spotify, Amazon Music, or even Tidal. No, instead Smith's music could only be heard on Instagram. Last month through a series of announcements, Instagram, the Facebook owned photo-sharing app, emerged ready to become a new monetary force within the music industry, as streaming continues to become the dominant mode of music consumption and revenue. On June 20, Instagram announced IGTV, the company's attempt to compete with YouTube and distinguish itself with vertical video content. Their presentation included former Vine star, Lele Pons, prolific Twitch Fortnite streamer Ninja, while the New York City press event included an intimate live performance by the pop singer Alessia Cara. YouTube might've just launched YouTube Music to better compete in the streaming music marketplace, but Instagram is vying to become to the new dedicated home for all content creators. The fate of IGTV remains to be seen, but according a report by Digiday early experiments by restaurant and retail brands shows a rather loose approach in navigating this new platform - Netflix updated an hour long video loop of a Stranger Things actor eating a burger and got over 600,000 views. Right now there are no advertisements or direct ways to monetize but their arrival is certainly a when, not an if, question. IGTV wasn't the only new feature that Instagram introduced that should excite the music industry. On June 28, Instagram announced that users will have the ability to add stickers to their Stories that play officially licensed music. Earlier this year, Ole Obermann, the Chief Digital Officer of Warner Music Group, said of the deal between the label and Facebook: 'Our partnership with Facebook will help expand the universe of music streaming and create supplementary revenue for artists. Fan-created video is one of the most personal, social and often viral ways that music is enjoyed, but its commercial potential is largely untapped.' This announcement is an even more direct shot at YouTube's role within the music ecosystem. YouTube's content ID system allows for artists to monetize videos on the platform, which feature their work even if they didn't have a hand in its creation. Instagram's music stickers formalizes the creative ways users already interact with music on the platform. The previously organic behavior of recording a video and listening to one's favorite song now holds the potential to compensate their favorite artists. Two years ago, NBA MVP Russell Westbrook uploaded a Twitter video listening to Lil Uzi Vert's 'Do What I Want' and the viral video eventually became the peg for a Nike campaign. Facebook partnered with all of the major labels, Merlin, and other publishing groups to allow for monetization of previously niche direct to follower communication. While services like Pandora and Spotify would like to provide an endless soundtrack to one's day; Instagram's aim is to monetize the parts of the day that your choose to broadcast. One shouldn't overlook that Instagram stories is currently used by over 400 million people, which is double its closest competitor of Snapchat (191 million) and even Spotify (170 million). The proposition for artists is now to give fans a reason to stream one's music but also use Instagram Stories to heighten visible public displays of affection. If streaming severed the connection of fans from physical goods; Instagram discovered a way for Facebook and labels to secure profit from previously genuine sharing of content. The music industry, unlike like other media industries - journalism - never completely relied on Facebook. Though a strong presence on the platform provided a great way to reach fans, as the algorithm shifted, page promotion started to increase in cost, and other digital methods of communication opened up the value proposition of Facebook started to wane. A manager I recently spoke with said that for their biggest artist focus shifted away from Facebook as their audience appears increasingly disengaged. Part of the reason Facebook isn't quite as dominant is because of Facebook's own company: Instagram. The social media giant recently announced that Instagram is now home to over a billion users and these recent moves continues to show meaningful ways of seeking expansion. Instagram is often a place where artists telegraph when a new album cycle is starting: See Miley Cyrus's now empty Instagram page. However, others are experimenting with the form. The rapper Tierra Whack (allegedly signed to Interscope) uploaded her all fifteen videos for her 15 minute-long video onto her Instagram. The novel approach showed that Instagram can offer wholly unique ways of music distribution that aren't being offered by Apple, Spotify, or even YouTube. The platform doesn't have the catalog of YouTube, but it holds nearly endless content of people singing and semi-privately sharing their favourite songs with friends. IGTV will continue to grow, but the addition of music to Instagram Stories opens up a new path for untapped monetization. Instagram has transformed a platform for marketing into a platform where marketing could actually return a profit.Music Business Worldwide

Spotify is now worth more than $33bn as stock prices hit an all time high.

Industry News   /   July 15th, 2018

Spotify is now worth more than $33bn as stock prices hit an all time high.

It's been just over three months since Spotify floated on the New York Stock Exchange. and things have got a little crazy.

Pig&Dan's ELEVATE celebrates it's 100th release.

Label News   /   July 5th, 2018

Pig&Dan's ELEVATE celebrates it's 100th release.

ELEVATE - a label started by Pig&Dan focuses on releasing music to make the listener feel just that - 'elevated'. Since its inception in 2012, its seen a stream of hits climb the Beatport charts, featuring artists including Amelie Lens, Monika Kruse and Julian Jeweil. Not forgetting the smash hit No.1 techno track from Aitor Ronda with 'Tweezer' in 2017, which helped firmly put ELEVATE on the map in terms of the labels to watch out for going into 2018. Mark Reeve collaborated with the guys back in 2015 and this June we see the second project come to form with their 'Give' EP which stands as the labels landmark 100th release.

New DSP : Facebook & Instagram

Our News   /   July 4th, 2018

New DSP : Facebook & Instagram

A few months ago we announced we had entered into a deal with Facebook to work with, develop and implement a rights management and royalty payment/reporting system. We are now entering the next phase of this deal and will commencing deliveries to Facebooks Audio Library. The Audio Library is the central hub which Facebook will be exploring many different ways to bring music to the Facebook community. So far these include; Share Videos with Music on Facebook Facebook are working to enable people around the world to include music in their videos on Facebook, opening up more options for creativity and sharing memories with friends and family. Facebook are testing this in several markets currently. Lip Sync Live Facebook are starting to roll out Lip Sync Live, which lets you lip sync to songs.To try it out, choose the Lip Sync Live option when starting your Live video. After selecting a song from the song list, you can also add a description and customise your video with masks or a background. When broadcasting with Lip Sync Live, friends will see the artist and song highlighted on the video and can tap to follow the artist on Facebook. Instagram Music Stories Similar to adding emojis/GIFs, users will now have the option to add music by tapping on the sticker icon - searching/browsing for a song, selecting the best segment to match their story - and posting. When friends watch the story, they'll hear the clip the user chose playing over their photo or video. They'll also see a sticker with the song title and artist name. IMPORTANT Facebook are rolling out these features out over a period of time - starting with iOS, with Android following in the coming weeks. Additionally, they will be adding more songs on a regular basis and, as such, you may not see your titles included right now. Facebook have assured us that they are working hard to activate Audio Library feeds and match recordings with publishing data, prioritising top performing content. There is no defined time-line, however, more content will be made available in the near-future as this product is rolled out further. For more information please contact the Label Worx team.

 

afemaudiolockdj-voicelwaprimestemstonedenyour-edmyoutube