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APPLE MUSIC FOR ARTISTS LAUNCHES, RIVALLING SPOTIFY’S ANALYTICS TOOLS 

APPLE MUSIC FOR ARTISTS LAUNCHES, RIVALLING SPOTIFY’S ANALYTICS TOOLS

Artists and their managers have long appreciated the royalties they receive from Apple Music – which, on a per-play basis, are reportedly close to double what they get from Spotify. 

Yet Spotify has always won far more praise when it comes to another valuable asset for musicians: data. 

Spotify launched its Spotify For Artists app in 2017 (an evolution of the ‘Fan Insights’ tool it introduced two years earlier) to provide artists and their teams with information pertaining to their popularity on the service. 

Now, Apple is stepping up to the plate.

Guest post by: BY TIM INGHAM of Music Business Worldwide

Today (August 8), Apple Music For Artists (AMFA) is emerging out of Beta and is being made available for every artist on Apple Music. Like Spotify for Artists, the service is available as both a desktop interface and a standalone mobile app (in AMFA’s case, currently only on iOS). 

MBW understands that in the limited industry meetings Apple has had during AMFA’s Beta, it has been confidently telling artists that its app is “the best available” in the market. 

We’ve taken a look at the platform, both on desktop and via the iOS app. As you’d expect, it allows artists to monitor the volume of their streaming plays on Apple Music and album/song sales on iTunes, all within a data set that updates daily. 

Artists can also drill down into how specific songs and/or albums are performing (and how their fans are growing) in specific markets around the world – down to a city-level in over 100 countries. Apple believes this will help artists to plan tours, tailor setlists for fans in each city, and uncover hitherto unknown pockets of popularity around the world.

Artists can also monitor how many plays of a particular song in a given period have been generated by playlists, as opposed to ‘organic’ plays from fans – and what position their track has been placed within these lists. And they can also see how many of their streams are the result of algorithmic radio (i.e. ‘lean-back’) versus active plays. 

This won’t shock you, but it’s a big differentiator: Apple is putting Shazam data front and center within its AMFA app, allowing artists to examine where their music has been most Shazam’d in particular locations and in particular time periods. (Apple fully acquired Shazam for a reported $400m in September last year.) 

In addition, artists can see a basic count of the average number of daily listeners to their music, broken down by country, city or song, while there is a dedicated section breaking out their video plays on Apple Music. 

Plus, Apple has updated its data to cover music industry standard release weeks to enable artists to better monitor week-to-week success. 

And in a feature which reminded us of the much-vaunted artist app from AWAL, acts are automatically alerted when there are meaningful changes to their data, for example: (i) The first week plays of a new release versus their previous week-one plays; (ii) Milestones like ‘1 Million Plays’; (iii) Sudden spikes in streams anywhere around the world; (iv) When they are added to a major Apple Music playlist. 

Unlike some third-party distribution/services companies, Apple does not provide insights on how an act’s streams translate into royalty payouts.

‘MASTERS ARE OWNED BY [THE] ARTIST’: CHANCE THE RAPPER MANAGER PAT CORCORAN INKS ‘UNPRECEDENTED’ DEAL WITH WARNER RECORDS FOR 99 NEIGHBORS 

‘MASTERS ARE OWNED BY [THE] ARTIST’: CHANCE THE RAPPER MANAGER PAT CORCORAN INKS ‘UNPRECEDENTED’ DEAL WITH WARNER RECORDS FOR 99 NEIGHBORS

When is a major label deal not a major label deal? 

If your answer to that question is, “When an artist owns their own masters,” then you might have found the past 12 months a confusing place. 

 Guest post by: BY TIM INGHAM of Music Business Worldwide

First, in November last year, we had Taylor Swift inking a global deal with Republic Records / Universal Music Group – an agreement under which she appears likely to license her music rights to UMG on a relatively short-term basis. “It’s incredibly exciting to know that I’ll own all of my masters from now on,” said Swift on Instagram when announcing that agreement. “It’s really important to me to see eye to eye with a label regarding the future of our industry.” 

Those words, of course, became all the more prescient last month, thanks to Swift’s masters-related public fallout with Scott Borchetta and Scooter Braun.

This week, another major music industry player is stating their joy at having struck a major label deal whereby masters are retained. This time, it’s not an artist doing the celebrating, but Pat Corcoran – the super-manager of Chance The Rapper, and therefore a key architect of one of the most talked about label-free artist campaigns of recent years. 

On behalf of his entertainment company Nice Work, Corcoran has just inked a deal with Warner Records, the company formerly known as Warner Bros Records and run by Tom Corson and Aaron Bay-Schuck out of Los Angeles.

“MASTERS ARE OWNED BY ARTIST, CREATIVE IS OWNED BY ARTIST, PROFIT SHARING OVER ROYALTIES, ALL WITH THE INCREDIBLE SUPPORT AND PLATFORM THAT OUR COLLECTIVE TEAMS PROVIDE.” 

PAT CORCORAN ON NICE WORK / WARNER RECORDS DEAL FOR 99 NEIGHBORS

The Nice Work/ Warner Records deal covers the future releases of 99 Neighbors, a Vermont-based music troupe whose ranks include founding hip-hop vocalists, Sam Paulino and Hanknative, plus producer Somba and a range of photographers, designers and musicians. 

In a press release, Corcoran noted that the Warner partnership would “allow me to work closer to the art while the label group could help amplify the distribution, marketing and promotion”. 

Calling the deal “unprecedented” and “artist-first”, Corcoran further noted: “The strategy allows Nice Work to step fully into what we love and what we feel we do best; bringing artists and fans closer together via innovative marketing, unparalleled artist-first service and unrelenting determination to protect and promote creators who move us with their music.” 

Over on Instagram, however, Corcoran was a little more direct in revealing significant details about the deal. 

He wrote: “Masters are owned by artist, creative is owned by artist, profit sharing over royalties, all with the incredible support and platform that our collective teams provide.” 

Doesn’t this sound like the sort of ‘label services’ agreement more typically offered by the likes of Sony’s The Orchard, Universal’s Caroline or Warner’s own ADA, not to mention a string of independent players, instead of a major record company deal? 

Corcoran added: “Proud to be a part of big changes in the music industry. Proud of the amazing art 99 has coming.” 

Interesting times.

Un-Freaking-Believable! Spotify: We ‘Overpaid’ Songwriters And Their Publishers In 2018, And We Would Like Our Money Back 

Un-Freaking-Believable! Spotify: We ‘Overpaid’ Songwriters And Their Publishers In 2018, And We Would Like Our Money Back

Courtesy of Music Business Worldwide

If you hadn’t noticed, tensions between the music publishing community and Spotify have taken a turn for the sour in recent months. 

This all began in March when Spotify, alongside other music streaming operators like SiriusXM/Pandora, Google and Amazon, lodged an appeal against mandated pay rises for songwriters and publishers in the US.

The headline news about that pay rise, decided by the US Copyright Royalty Board, was that mechanical streaming payouts from the likes of Spotify would rise by 44% or more between 2018 and 2022. 

It turns out, however, that there was some additional and under-reported complexity to the CRB decision concerning Spotify’s student discount offers and its family plan bundles – which allow up to six family members to stream Premium Spotify for a single price of just $14.99 a month. 

“ACCORDING TO THE NEW CRB REGULATIONS, WE OVERPAID MOST PUBLISHERS IN 2018… RATHER THAN COLLECT THE 2018 OVERPAYMENT IMMEDIATELY, WE HAVE OFFERED TO EXTEND THE RECOUPMENT PERIOD THROUGH THE END OF 2019.” 

SPOTIFY SPOKESPERSON

Because of this additional complexity, Spotify has now calculated that, retrospectively, according to the CRB decision, many music publishers actually owe it money for 2018, due to an overpayment based on the prior rates. And guess what? It wants that money back. 

Spotify told the publishers the news this week and, as you can imagine, these companies – already up in arms over Spotify’s CRB appeal – are fuming about it. 

One senior figure in the music publishing industry told MBW: “Spotify is clawing back millions of dollars from publishers in the US based on the new CRB rates that favor the DSPs, while appealing the [wider CRB decision]. This puts some music publishers in a negative position. It’s unbelievable.” 

Spotify isn’t expecting the publishers to hand over the money that it’s owed right away; instead, this negative balance will be treated as an advance by the company, which will be recouped from its 2019 royalty payouts to publishers (and, by association, their songwriters).

“I FIND IT SO HYPOCRITICAL FOR A DIGITAL SERVICE THAT IS APPEALING THE CRB DECISION TO THEN TAKE ADVANTAGE OF THE PARTS OF THAT DECISION THAT BENEFIT IT. I GUESS WE SHOULDN’T BE SURPRISED.” 

DAVID ISRAELITE, NMPA

A spokesperson for Spotify told MBW today (June 21): “According to the new CRB regulations, we overpaid most publishers in 2018. While the appeal of the CRB decision is pending, the rates set by the CRB are current law, and we will abide by them –  not only for 2018, but also for future years in which the amount paid to publishers is set to increase significantly. 

“Rather than collect the 2018 overpayment immediately, we have offered to extend the recoupment period through the end of 2019 in order to minimize the impact of the adjustment on publishing companies.” 

David Israelite, the CEO of the National Music Publishers Association who has consistently and publicly decried Spotify’s CRB appeal, told MBW in response to Spotify’s request for reimbursement from the publishers: “I find it so hypocritical for a digital service that is appealing the CRB decision to then take advantage of the parts of that decision that benefit it. I guess we shouldn’t be surprised.” 

The CRB rules that the annual streaming royalty rate in the States between 2018 and 2022 will be determined by the highest outcome across one of three different models: (i) a percentage of a streaming company’s total revenue; (ii) a percentage of what that streaming service pays to record labels each year; and (iii)  a flat fee per subscriber in the US. 

Within the new CRB-approved regulations for streaming payouts, it says: “A Family Plan shall be treated as 1.5 subscribers per month, prorated in the case of a Family Plan Subscription in effect for only part of a calendar month. A Student Plan shall be treated as 0.50 subscribers per month, prorated in the case of a Student Plan End User who subscribed for only part of a calendar month.” 

The NMPA announced last week that the US music publishing industry generated a record $3.33bn in 2018, up 11.8% year-on-year, and up 55% when compared to 2014.

Spotify Invests $10M In Facebook's Libra Cryptocurrency  

Spotify Invests $10M In Facebook's Libra Cryptocurrency

Spotify has officially joined Facebook's new Libra global cryptocurrency initiative. Spotify stands out as the only music or media company among 28 A-list players ranging from Visa to Uber to Andreessen Horowitz that each invested $10 million. 

Here's of Techcrunch describes Libra: "Facebook wants to make Libra the evolution of PayPal. It’s hoping Libra will become simpler to set up, more ubiquitous as a payment method, more efficient with fewer fees, more accessible to the unbanked, more flexible thanks to developers, and more long-lasting through decentralization." 

All that delivered locally on a global scale and with bitcoin tracking built in, and you get some idea of what a massive project this is. 

Why Spotify? 

For Spotify, Libra offers a chance to more easily receive payments globally, including from the many outside the banking system.  Someday soon, Libra could facilitate payments to artists and rights holders, as well. 

Alex Norström, our Chief Premium Business Officer, explains: 

“One challenge for Spotify and its users around the world has been the lack of easily accessible payment systems – especially for those in financially underserved markets. This creates an enormous barrier to the bonds we work to foster between creators and their fans. In joining the Libra Association, there is an opportunity to better reach Spotify’s total addressable market, eliminate friction and enable payments in mass scale.”

Apple Reportedly Ending iTunes 

Apple Reportedly Ending iTunes

The file organization system you've been finding ways to work around for over a decade is about to be no more. According to a report from Bloomberg, Apple is hoping to phase out iTunes in the near future. Apple CEO Tim Cook is expected to announce the decision to move away from iTunes as part of a push away from the iPhone in coming years. 

Guest Post By Alex Galbraith

Unveiled in 2001, iTunes originally functioned as a music library and marketplace for iPods, iPhones, and Mac computers. As the company shifts its focus to other arms, the iTunes library will be replaced by separate desktop apps: Music, Podcasts and TV. iPhones and iPads already separate out libraries in this manner. 

The company's Worldwide Developers Conference is a closely watched event for fanboys and journalists. At this year's iteration, the company is also expected to announce greater freedom for their Apple Watch, which currently only works if it is connected to an iPhone. 

While the company is looking to roll out a new iPod soon, the move away from iTunes is probably a savvy business move given the recent raft of bad press attached to the brand. The company is currently being sued by users who allege that their iTunes data was sold to third parties who connected the data to personal information to sell to marketers. 

“None of the information pertaining to the music you purchase on your iPhone stays on your iPhone," the $5 million lawsuit alleged, per Billboard. “The data Apple discloses includes the full names and home addresses of its customers, together with the genres and, in some cases, the specific titles of digitally-recorded music that its customers have purchased via the iTunes Store and then stored in their devices.”

Songwriters Urge Users To #CancelSpotify 

#cancelspotify A growing group of songwriters are taking to social media to urge users to #cancelspotify in protest of the streamer's decision to challenge a US Copyright Royalty Board decision to raise streaming payments to songwriters 44% over the next 5 years. 

Yesterday dozens of top songwriters called out Spotify in an an open letter that urged the streamer to reverse course: "Now, we can see the real reason for your songwriter outreach. You have used us and tried to divide us but we stand together." 

While #cancelspotify is far from trending on Twitter, the campaign does appear to be gathering some momentum.

What do you think?

 

Max Martin, UMG, Avid, DDEX, Session Announce the ‘World’s First End-to-End Music Credits Ecosystem’ 

Max Martin, UMG, Avid, DDEX, Session Announce the ‘World’s First End-to-End Music Credits Ecosystem’

Let’s give these artists some credit. 

Guest Post by: Paul Resnikoff

Photo: Session CEO Niclas Molinder (l) with ABBA member and Session co-founder Bjorn Ulvaeus (r) at SXSW.

Last week, a consortium of industry and artist associations banded together to underscore the importance of a “more robust and effective system of digital attribution and credits.” 

In a joint statement, the Artist Rights Alliance, SAG-AFTRA (Screen Actors Guild–American Federation of Television and Radio Artists), RIAA (Recording Industry Association of America ) and A2IM (American Association of Independent Music) urged the industry to double-down on proper artist crediting and metadata. 

“Attribution recognizes artistic achievement, helps creators connect, collaborate, and appreciate each other’s work, opens up new pathways for fans to trace artistic influences, and find new music, and aids accuracy in the digital royalty economy,” the joint statement urged. 

Now, there’s a concrete effort to more seriously address credits, missing metadata, and black box royalty problems. 

At SXSW, a separate consortium has proclaimed the ‘world’s first end-to-end music credits ecosystem’. 

The bold initiative, called Creator Credits, is being led by a heavyweight alliance that includes Max Martin’s MXM Music, Avid Technology, Universal Music Group and DDEX.  Session, led by co-founder (and ABBA member) Bjorn Ulvaeus and CEO Niclas Molinder (pictured above), is corralling the circle of power-players. 

In an announcement at the Hilton Hotel in Austin, TX, Molinder underscored the importance of starting the process of credits immediately.  That would explain the presence of Avid, which owns Pro Tools. 

“I’m convinced that the best way to involve the creators in the data collection is as early as possible in the creation process,” Ulvaeus said during the unveiling.  “Session’s technology performs a short handshake with music society systems to authenticate creators and associate their vital industry identifiers with their account. 

“When a creator walks into a Pro Tools powered studio, their presence will be automatically detected and their identifiers, along with their typical contributions, can be easily added to a song.” 

That approach is a far cry from the typical afterthought afforded to music metadata and royalty credits. 

Instead, Session (formerly named Auddly) is taking a very aggressive approach by starting the credits process during the creation phase itself.  “The proof-of-concept sees Avid embedding Session’s technology into Pro Tools to automatically detect the presence of creators in the studio and allowing the addition of creator credits, contributions and crucial industry identifiers (IPI, IPN and ISNI) to a recording before it leaves the studio,” the company explains. 

“Creator credits can easily be added to a song throughout the production process by automatically associating industry authenticated songwriters, musicians, producers and editors and their contributions.” 

In other words: the credits for a song can be added before the song is finished. 

“With Pro Tools software at the core of many of today’s music production environments around the world, the Avid team shares in the vision that all contributors to a piece of music or any audio work should be clearly identified, recognized and rewarded appropriately throughout the production and distribution process,” said Francois Quereuil, Director of Audio Product Management, AVID. 

“We are particularly excited to enter a technology collaboration with Session and work with key players in the music industry to provide a durable solution to the challenges associated with capturing and recognizing creators’ credits in an increasingly complex digital world.” 

But here’s the really exciting part: these credits aren’t just getting added to a local file. 

Instead, they’re being automatically pushed downstream to managers, labels, music publishers, PROs, distributors and streaming platforms.   That aggressive push is mandatory for proper downstream payments, especially given the spotty distribution of metadata across the fractured music industry ecosystem. 

The presence of Universal Music Group will also add some serious momentum to this initiative.  But Barak Moffitt, EVP of Content Strategy and Operations at UMG, says the two companies have been working together on metadata and credits for a few years.  “In addition to our own efforts, we have been working closely with Bjorn and Niclas for a couple years on the development of this platform as part of our commitment to a robust and effective crediting system for the benefit of the entire music ecosystem,” Moffitt relayed. 

DDEX, the supply chain data standards organization, has also been toiling away on music metadata standards for years — if not more than a decade.   Accordingly, the creator credits metadata will travel downstream to various music industry players in the ‘DDEX RIN’ standard format.  That will include critical industry identifiers for songwriters (IPI) and performing artists (IPN), as well as the emerging ISNI identifier. 

This creator identification information, along with their contributions to the recording and song, are assembled with the ISRC (recording identifier) and ISWC (composition identifier) codes.  That will enable downstream music platforms to improve their matching, payouts and even value-added features. 

The initiative comes at a moment of serious frustration for the music industry. 

With the ink dried on the Music Modernization Act (MMA), the industry is now arguing over an estimated $1.2 billion in unattributed ‘black box’ mechanical royalties being held by the likes of Spotify, Apple Music, and Amazon Music Unlimited.  And that’s just one piece of a gigantic black box whose size is estimated to be in the multi-billions.