From Spotify vs. songwriters to Adele vs. our feelings: It’s MBW’s Weekly Round-up

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Welcome to Music Business Worldwide’s weekly round-up – the place we be sure that you caught the 5 largest tales to hit our headlines over the previous seven days. MBW’s round-up is supported by Centtrip, which helps over 500 of the world’s best-selling artists maximise their earnings and cut back their touring prices.


Happy Adele Day!

Well, we are saying glad. We, little doubt such as you, went by way of an eerily acquainted cycle this morning because the British star’s first new monitor in six years – Easy On Me – was unleashed.

Listen 1: *Sneers* Well, it’s no ‘Hello’, that’s for positive. Is there even a correct hook on this track? It’s doing nothing for me.

Listen 5: Okay that is truly fairly nice.

Listen 15: *Forehead resting softly on the steering wheel, eyes dewy, mumbled whispers scurrying out over a quivering backside lip* It’s simply, life appears actually exhausting typically. I’m attempting to maintain my head up excessive, be a very good individual, however I’m not excellent *sniffs*. Who is, although, Adele? Who is?!

You know the drill.

Something else that made our eyes water this week: The colossal dimension of deal-making at the moment happening within the music rights enterprise.

Exhibit A: Hipgnosis and Merck Mercuriadis placing a new agreement with Blackstone for an preliminary billion-dollar funding – cash that might be spent on large buys of huge songs – with the potential for additional billions to observe.

Exhibit B: Spirit Music Group’s guardian, Lyric Capital, inking a $500 million deal with Northleaf Capital Partners that can see funds managed by the latter agency purchase an curiosity in sure Spirit-associated music royalty catalogs.

A billion-and-a-half {dollars} flying across the music trade, similar to that.

Smug-face alert: Last week, in MBW’s weekly podcast, Talking Trends, we predicted that three issues would possibly quickly occur on this area: (i) KKR could be making an all-new, huge music acquisition play; (ii) Kobalt Capital could be promoting up one among its managed copyright portfolios for a billion {dollars}; (iii) A significant possession change was coming to Spirit Music Group’s catalog.

All three now seem to be coming good, with KKR reportedly funding a $1.1 billion acquisition of Kobalt Music Royalty Fund II through the household workplace of former Goldman Sachs associate Stephen Hendel.


The different large information story of the previous few days was, sadly, somewhat much less deserving of high-fives at MBW Towers.

According to the National Music Publishers Association (NMPA), digital service homeowners resembling Amazon, Spotify, Apple, Pandora and Google are “proposing the lowest royalty rates in history” for songwriters within the US.

They are allegedly doing in order a part of the CRB IV, a authorized course of that can set songwriter streaming royalties within the US for the 2023-2027 interval.

This is taking part in out, keep in mind, as Spotify and others (not together with Apple) are within the technique of interesting a streaming charge rise for songwriters for the 2018-2022 interval (CRB III).

We haven’t truly seen the digital companies’ proposals in relation to the CRB IV course of but (they’re but to file publicly) – however NMPA chief David Israelite has, and he’s fuming.

Ominously for these eager on music enterprise concord – although pleasingly for many who need songwriters to get extra wedge – Israelite says: “This fight has just begun.”

See beneath for 5 of the largest tales to grace MBW’s digital pages up to now week…


1) WHAT DO BLACKSTONE’S BILLIONS MEAN FOR MERCK MERCURIADIS’ MISSION FOR SONGWRITERS?

As MBW reported Tuesday (October 12), Blackstone – one of many world’s largest different funding homes – is pumping a billion {dollars} into a brand new personal fund, Hipgnosis Songs Capital.

In addition, Blackstone is investing an undisclosed quantity into Merck Mercuriadis’ Hipgnosis Song Management, the funding adviser that in the end chooses how to deploy the cash in Hipgnosis Songs Fund… and now, in Hipgnosis Songs Capital, too.

MBW not too long ago sat down with Mercuriadis and the person who struck the Blackstone cope with him, Qasim Abbas, to quiz them on the brand new music biz alliance that’s bought all people speaking….


2) SPOTIFY AND OTHER STREAMING SERVICES PROPOSE ‘LOWEST ROYALTY RATES IN HISTORY’ FOR SONGWRITERS

Music streaming service homeowners together with Spotify, Apple, Amazon, Pandora and Google have all filed paperwork with the US Copyright Royalty Board (CRB) this week to inform them what they assume they need to pay songwriters for the 5 years between 2023 and 2027.

Speaking to MBW forward of the filings this week, David Israelite, President & CEO of the National Music Publishers Association (NMPA) defined that the trial “has momentous consequences for songwriters and music publishers”.

The filings, and their contents, haven’t been made public but, however in accordance to Israelite, “Amazon, Spotify, Apple, Pandora and Google have proposed the lowest royalty rates in history”…


3) ANOTHER MASSIVE MUSIC DEAL, AS SPIRIT MUSIC GROUP PARENT STRIKES $500M ALLIANCE WITH NORTHLEAF CAPITAL PARTNERS

Spirit Music Group proprietor Lyric Capital Group and international funding agency Northleaf Capital Partners have struck a strategic alliance, by way of which funds managed by Northleaf maintain an curiosity in sure music royalty catalogs managed by Lyric, led by Jon Singer, Managing Partner, and Ross Cameron, Partner.

Northleaf led the USD $500 million funding through which international funding group Caisse de dépôt et placement du Québec (CDPQ) was a big co-investor.

Toronto-based Northleaf, whose portfolio contains greater than 400 energetic investments in 40 international locations, has greater than $18 billion in personal fairness, personal credit score and infrastructure commitments beneath administration…


4) ADELE’S BACK… BUT WHAT ARE WE EXPECTING?

In this episode of MBW podcast Talking Trends, we talk about the return of Adele along with her new album 30, now confirmed for launch on Friday, November 19.

We’re already seeing sturdy proof of the British famous person “doing things her way” when it comes to the document, and the technique round it.


5) KOBALT IS SELLING A MUSIC CATALOG FOR $1 BILLION – AND KKR IS IN PRIME POSITION TO BUY IT

Kobalt is reportedly wanting to promote its Kobalt Music Royalty Fund II for a price-tag within the area of $1 billion… and that the agency is within the ultimate phases of a negotiation with a bunch of buyers that features KKR.

Kobalt Capital has managed two funds down the years.

The second and bigger of those funds, Kobalt Music Royalty Fund II, was established in 2017 with $600 million to spend, backed by the likes of UK pension scheme Railpen, together with different institutional buyers.


MBW’s Weekly Round-Up is supported by Centtrip, which helps over 500 of the world’s best-selling artists maximise their income and reduce their touring costs.Music Business Worldwide

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