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From the songwriters’ winnings for streaming royalty to Deezer’s listing… this is MBW’s weekly summary…

From the songwriters’ winnings for streaming royalty to Deezer’s listing… this is MBW’s weekly summary…

Welcome to Music Business Worldwide’s weekly summary – where we make sure you’ve got the top five stories of our headlines over the last seven days. MBW’s summary is supported by Centtripwhich helps over 500 of the world’s best-selling artists maximize revenue and reduce tour costs.


Songwriters took a big victory in the United States seven days ago.

Back in January 2018, the Copyright Royalty Board (CRB) decided that royalty rates for US songwriters / publishers for streaming on demand (and other uses) should increase from 10.5% to 15.1% between 2018 and 2022.

You may remember that Spotify, Amazon and Google / Alphabet later launched a legal appeal against the new prices.

But on July 1, the CRB upheld its decision to increase the headline rate paid to songwriters in the United States to 15.1%.

Also this week, the French-born Spotify rival Deezer debuted at Euronext Paris, after combining its business with I2PO, a Special Purpose Acquisition Company (SPAC) based in France.

Deezer became 2022’s last music streaming service to go public via a SPAC merger, following the MENA – focused Anghams IPO on NASDAQ in New York.

In the meantime, have Financial Times reported this week that TikTok has scrapped the expansion of its TikTok Shop function to Europe and the United States.

Launched in the UK in December 2021, TikTok Shop allows creators to sell products directly on TikTok through feed videos and live broadcasts. Last year, in an interview with MBW, TikTok’s global music director Ole Obermann discussed plans for e-commerce features for artists in his app.

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MBW contacted TikTok to clarify whether the requirements were reported by FT would have some impact on TikTok’s music-related e-commerce plans outlined by Obermann.

Elsewhere, music veteran Irv Gotti sold a stake in his Murder Inc. master recordings to Iconoclast as part of a $ 300 million deal, while Universal Music Group entered into a licensing agreement with the African music service Mdundo …


1) SONG WRITERS, ENJOY: SPOTIFY APPLE CANNOT STOP COMPONENTS FROM IMPROVING 15.1% STREAMING ROYALTY RATE IN US

The saga is over.

On July 1, the Copyright Royalty Board (CRB) upheld its decision to increase the headline rate paid to songwriters in the United States from streaming services on demand between 2018 and 2022.

To refresh the memory: In January 2018, songwriters enjoyed a big victory when CRB decided that royalty rates for songwriters / publishers for streaming and other mechanical use should increase significantly in the US.

That ruling centered on an increase in the total percentage of streaming services’ U.S. revenue that must legally be paid by the likes of Spotify to songwriters.

CRB decided to move this percentage up from 10.5% to 15.1% over the five years between 2018 and 2022. It was the largest interest rate increase in CRB’s history.

However, Spotify and other companies, including Amazon and Google / Alphabet – but NOT Apple – later launched a legal appeal against the new prices, claiming they were unjustified.

Now CRB has made its final decision – and the 15.1% rate goes nowhere …


2) DEEZER GOES PUBLIC: SPOTIFY RIVAL MAKES STOCK MARKET DEBUT ON EURONEXT PARIS

Spotify rival Deezer is officially a listed company.

The music streaming service made its stock exchange debut in its home country France on Euronext Paris on Tuesday (July 5), after combining its operations with I2PO, a Special Purpose Acquisition Company (SPAC) based in France.

The company’s listing comes seven years after the plug was pulled on its previous attempt at a listing.

Deezer will be the last music streaming service of the year to become a listed company via a SPAC merger, following MENA-focused Anghami’s recent listing on NASDAQ in New York …


3) TIKTOK: MUSIC E-COMMERCE PLANS WILL NOT BE SUBJECT TO THE AVAILABILITY OF TIKTOK STORE

Last year, in an interview with MBW, TikTok’s global music director Ole Obermann discussed plans for e-commerce features for artists in his app.

He noted that TikTok “recently conducted some tests in the United States where we worked with artists with big names to enable them to sell physical products outside of their TikTok accounts”.

Obermann quoted artists including Lizzo and Billie Eilish who were involved in these tests, and told MBW at the time that “the numbers were huge” and added: “It blew us away”.

An article published by the Financial Times this week left big questions hanging over the future of these e-commerce plans for artists on the platform …


Photo credit: Giorgio Trovato

4) MUSIC VETERAN IRV GOTTI SELLS ASSETS IN MURDER INC. MASTER RECORDINGS TO ICONOCLAST AS PART OF AGREEMENT OF $ 300 MILLION

Veteran music director and producer Irv Gotti (Irving Lorenzo), the founder of rap company Murder Inc, has sold a stake in his master recordings to Olivier Chastan’s acquisition car, Iconoclast.

The music director has announced that the deal is worth $ 300 million, and according to a media report, “he sees him selling his 50% stake in his masters, with additional funding for various film and TV projects” …


5) UNIVERSAL MUSIC GROUP BREAKS LICENSE AGREEMENT WITH AFRICAN MUSIC SERVICE MDUNDO

The African music service Mdundo, which was listed on the Danish stock exchange (Nasdaq First North Growth Market) in September 2020, has entered into a licensing agreement with Universal Music Group (UMG).

UMG says that the new agreement covers important African territories.

Mdundo reports having 17 million active monthly users across Africa, which means the service has added 10 million since February 2021 …


MBW’s Weekly Round-Up is supported by Centtrip, which helps over 500 of the world’s best-selling artists maximize revenue and reduce tour costs.

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