Iindependent-labels-reach-digital-tipping-point-driven-by-streaming

Merlin, the global digital rights agency representing 20,000 independent labels including the likes of Beggars Group, Cooking Vinyl, Domino, Epitaph, Kobalt Label Services, Merge, Ninja Tune, [PIAS], Secretly Group and Warp Records, has released its annual report.

The document, a selection of slides from which you can see below, highlights four clear trends from Merlin members – who make up around 10% of the global market:

• Independent labels have crossed a digital tipping point. For the first time, more than half of respondents report that income from digital services accounts for over 50% of their overall business revenues. For one in three, digital income accounts for over 75% of their overall revenues.
  
• Streaming/subscription income is driving digital growth. One in three respondents report that income from audio streaming & subscription services now accounts for over 50% of their digital revenue – up from one in five in 2014.
• Total digital revenues increased in 2014 for almost 75% of respondents.17% reported their overall digital revenues increased by over 50%.
• The majority of Merlin members report overall business growth. Despite a fall in download sales, 65% of respondents reported an increase in overall business revenues in 2014 (compared to 62% in 2013). Only 16% of respondents reported a decrease in overall 2014 business revenues, compared to 18% the previous year.

Merlin also reveals that it saw a 43% increase in year-on-year revenues (April 2014-March 2015) to $137.8m.

In March 2015 alone, audio tracks by Merlinmembers were streamed more than 2.5bn times – an increase of over 1bn from the same period last year. 

Significantly, analysing over 9 billion audio streams (January-April 2015) usage ofMerlinmembers’ repertoire on audio streaming and subscription services was 35% higher on paid tiers compared to free ad-funded tiers.

86.6% of respondents stated that Merlinmembership was important to their business.

SOUNDCLOUD BRACING FOR MASSIVE COPYRIGHT INFRINGEMENT LAWSUITS

by: Paul Resnikoff -Digital Music News

Grooveshark said it wouldn’t happen to them, either.  But according to multiple executives close to the situation, Universal Music Group, Sony Music Entertainment, and the Recording Industry Association of America (RIAA) will soon be filing lawsuits against SoundCloud for ‘massive copyright infringement’.

The move comes ahead of an anticipated premium subscription launch… or not.  “They don’t like SoundCloud’s attitude, they don’t like the pace of the talks,” one source flatly told DMN, with particular reference to SoundCloud’s CEO, Alexander Ljung.

“I’m not saying this is another ‘legal jihad,’ but lawsuits will be filed.”

And what is SoundCloud’s ‘tude, exactly?  One issue is Ljung’s insistence on maintaining a free tier, similar to the ‘freemium funnel’ created by Spotify.  “There are 3 billion people online, you’re never going to all get those into subscription, it’s just not going happen,” Ljung flatly stated recently at Midem.  “Some people will come through ads, some through subscription.”

“That’s why I’m choosing to have both.”

But from the standpoint of mega-labels like UMG, that’s not necessarily his choice to make.   And neither are the terms of their contracts.

Meanwhile, uploading DJs are finding their content blocked based on stepped-up copyright claims from companies like Sony, a situation that spells more than inconvenience.  “The DJs are getting strikes for infringement, and that’s affecting their accounts,” one source noted.  “They’re trying to avoid that and thinking about other places to upload.”

The news comes just as indie label consortium Merlin has inked a significant deal with SoundCloud, a pact the ushers in potentially 20,000 label participants.  “I’m excited to announce our largest independent label partnership to date with Merlin, the global rights agency for the independent label sector,” Ljung said.

Sounds positive, though it’s not clear that Merlin signed a solid deal.  After all, this is the same consortium that signed a deal with Grooveshark, essentially validating the company right to the bitter end.

But wait: isn’t SoundCloud already signing major label deals?  Well, they have signed one deal with Warner Music Group, but that deal is already being written off as a “special case one-off” scenario driven by SoundCloud SVP of Business Development and Strategy Stephen Bryan, who recently worked at Warner Music Group.  That deal handed WMG a 5 percent share, which apparently just isn’t good enough.

Drake and Pharrell are about to get some nice checks courtesy of Apple

Drake and Pharrell are about to get some nice checks courtesy of Apple. When the Tidal press conference was held and the two artists were missing it seemed odd as Jay-Z has a good relationship with both men, especially Pharrell. The reason for their absence is now making sense.

While the exact roles of the two are still murky, New York Post reports that one role for the two will be that of guest DJ on iTunes radio. This move shows Apple really means business and are gunning for that number one spot by taking on Spotify, Pandora, and Tidal. Apple Music is also looking to offer a free three-month trial and that their subscription fee with be $10. Also they report that there may be a section where users can upload their own content, like YouTube.

The music streaming business has boomed as of late. With Apple’s 2015 WorldWide Developer’s Conference next week, June 8th through the 12th, expect all the details to be cleared up along with some surprises. How Apple plans to change the market is going to be compelling to see as they missed their earlier launch date in March.

Will Apple Music make a major dent in the market or just become another Tidal?