Welcome to Music Enterprise Worldwide’s weekly round-up – the place we ensure you caught the 5 greatest 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 revenue and scale back their touring prices.
This week, Epidemic Sound – a ‘unicorn’ Swedish music firm, valued at over $1 billion – filed a lawsuit towards Mark Zuckerberg‘s tech large Meta (p.okay.a Fb) in america.
This has the potential to rapidly snowball into a serious story for the worldwide enterprise.
In that lawsuit, Epidemic Sound accuses each Fb and Instagram of internet hosting content material that has infringed the copyrights of 1000’s of Epidemic-owned tracks.
The whole damages being sought by Epidemic are “no much less” than USD $142 million.
Says Epidemic within the swimsuit: “Meta has refused to enter right into a license with Epidemic, although Meta has finished so with many different rights holders.
“Maybe Meta is hoping to get away with it for so long as doable. Maybe Meta is hoping that it’s going to intimidate an organization like Epidemic into bowing to Meta somewhat than incurring the disruption and expense of a lawsuit. Meta is flawed.”
That wasn’t the one story on MBW’s pages to say Epidemic Sound this week.
On Tuesday (July 19), we reported that EQT – a long-time investor in Epidemic – had acquired a minority stake in expertise company UTA.
Elsewhere, SoundCloud struck a deal to deliver ‘Fan-Powered Royalties’ to Warner Music Group artists. (MBW puzzled aloud if different main music corporations – particularly Common Music Group – may show extra of a problem to draw to the mannequin.)
Plus, MBW reported on Luminate knowledge exhibiting that ‘new’ music in america didn’t simply lose market share to ‘catalog’ music in H1 2022… it truly shrunk in recognition.
Right here’s a few of our greatest tales from the previous 5 days…
1) Epidemic Sound hits Meta with $142m lawsuit for alleged copyright infringement on Fb and Instagram
Sweden-headquartered manufacturing music home Epidemic Sound has hit Fb father or mother firm Meta with a multi-million greenback lawsuit for the alleged “theft” of “1000’s” of its works.
In a lawsuit filed in California on Wednesday (July 20), Epidemic Sound claimed that its authorized motion seeks “to cease the theft of music created by a whole lot of musicians, songwriters, producers and vocalists, theft occurring knowingly, deliberately and openly by Meta on its Fb and Instagram social media platforms every day”.
2) It’s official: New music is SHRINKING in recognition in america
Some will blame a scarcity of blockbuster data being made in the course of the pandemic. Some will blame a scarcity of emergent fashionable superstars. And a few (hello Merck!) will blame the truth that younger individuals – as evinced by Kate Bush’s present world-beating recognition – are merely having fun with ‘outdated’ music as if it had been ‘new’ music.
However information is information: ‘Present’ music in america isn’t simply dropping market share. It’s truly getting statistically much less standard.
3) Epidemic Sound investor EQT buys minority stake in UTA
Every thing’s acquired a bit cozy this summer time.
We haven’t had a correct public falling out within the music business for a while now. However, up steps Triller.
This week, the US-based social video firm printed an open letter from its CEO Mahi de Silva, calling for “each American” to delete its rival TikTok.
The letter, during which Triller’s CEO “calls for each American to delete TikTok at the moment and the US Authorities to take direct and overdue motion to ban TikTok”, echoes safety considerations raised by officers within the US.
4) On SoundCloud’s New Cope with Warner Music…
Warner Music Group has agreed to undertake ‘Fan-Powered Royalties’ for its artists on SoundCloud.
Credit score is because of the SoundCloud workforce (significantly, we’re guessing, its President and ex-Warner/ADA higher-up, Eliah Seton) for efficiently negotiating such an necessary check case for the adoption of FPR.
It’s undoubtedly a giant win for SoundCloud, and for its pro-FPR argument.
Nevertheless, nagging questions stay about what occurs subsequent…
5) Imagine CEO accuses main document corporations of lobbying streaming platforms to decrease royalty charges for DIY artists
Are the key document corporations making an attempt to strain music streaming companies to pay DIY artists decrease royalty charges than these obtained by established superstars?
In keeping with Imagine boss Denis Ladegaillerie, sure, they’re.
He claims that sure majors are pushing for this variation as a result of “they’ve been constantly dropping market share for the previous 5 years” because of the quantity of releases popping out through DIY platforms.
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