Welcome to Music Enterprise 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 revenue and cut back their touring prices.
Live Nation printed its Q2 outcomes this week, and it was stuffed with spectacular stats.
Along with producing revenues of $4.4 billion throughout the quarter throughout all divisions, the corporate revealed that it has already offered 100 million tickets for live shows in 2022.
That’s greater than Live Nation offered in the entire of 2019.
Live Nation President and CEO Michael Rapino, claimed: “The second quarter confirmed that the stay leisure business is again globally and greater than ever.”
Elsewhere within the information this week, Concord revealed that it has acquired music publishing firm Native Tongue, marking its growth in Australia & New Zealand. Trusted sources near the deal in Australia inform MBW that Concord spent an eight-figure US greenback sum on the acquisition.
Consequent to the acquisition, Concord is launching Concord Music Publishing ANZ, which might be based mostly in Melbourne, with workers in Sydney and Auckland.
We additionally realized this week that SoundCloud is lowering its international workforce by roughly 20%.
Referencing the information on LinkedIn on Wednesday (August 3), SoundCloud CEO, Michael Weissman, wrote: “Making adjustments that have an effect on folks is extremely laborious. However it’s one that’s obligatory to make sure SoundCloud’s long-term success given the difficult financial local weather and monetary market headwinds.”
In the meantime, a $500 million-backed firm referred to as Litmus Music launched to purchase music rights, whereas Imagine launched its H1 2022 outcomes, and elevated its FY income forecast for 2022.
Right here’s what occurred this week…
1) LIVE NATION HAS ALREADY SOLD 100M TICKETS FOR CONCERTS IN 2022 – MORE THAN IT SOLD IN THE WHOLE OF 2019
In accordance with Live Nation’s investor submitting for the quarter ended June 30, 2022, the stay occasions large has offered 100 million tickets for live shows in 2022 thus far, which, it says, is already greater than what it offered for the entire 12 months in 2019.
Providing its prediction for the total 12 months, the corporate claims that “2022 is on observe to be the most important 12 months in stay music historical past”.
In his letter to shareholders, Live Nation President & CEO Michael Rapino claimed that “the second quarter confirmed that the stay leisure business is again globally and greater than ever” and instructed additional that “Live Nation led this return”.
2) CONCORD BUYS NATIVE TONGUE IN EIGHT-FIGURE ACQUISITION, EXPANDS IN AUSTRALIA AND NEW ZEALAND
Bear in mind when it appeared the whole music business was whispering about whether or not Concord would promote as much as a significant music firm?
The reality about that narrative squeaked out again in April after we realized that, sure, Concord had explored the potential for a sale – however, no, it wasn’t prepared to do a deal for lower than an “extraordinary-plus” value. Particularly: at the least USD $6 billion.
(Bloomberg precisely reported in April that Concord and its majority dad or mum – pension fund Michigan Retirement Methods – had rejected two separate acquisition bids value $4.5 billion and $5 billion, respectively.)
That each one left Concord closing the chapter on its consideration of a possible sale ($5 billion was evidently not deemed “extrordinary-plus”!), and dealing with the long run as a well-funded impartial.
But having gained a status for being an aggressive music rights acquirer itself – and having spent a whopping USD $400 million shopping for Downtown‘s portfolio of copyrights final 12 months – would Concord shortly snap again into M&A mode, or go quiet?… (MBW)
3) SOUNDCLOUD SLASHES A FIFTH OF ITS GLOBAL WORKFORCE, BLAMING ‘CHALLENGING ECONOMIC CLIMATE’
SoundCloud has began the method of lowering its international workforce by roughly 20%.
SoundCloud CEO, Michael Weissman, referenced the information on LinkedIn on Wednesday (August 3), including: “Making adjustments that have an effect on folks is extremely laborious. However it’s one that’s obligatory to make sure SoundCloud’s long-term success given the difficult financial local weather and monetary market headwinds.
“For these impacted by this choice, I need to thanks personally to your ardour and contributions to SoundCloud and the artist communities we serve. You’ve got all made an unbelievable impression on the music business and on artists’ lives…”
4) SOME MUSIC COMPANIES ARE NERVOUS ABOUT A ‘CHALLENGING ECONOMIC CLIMATE’. BELIEVE JUST INCREASED ITS FY REVENUE FORECAST FOR 2022.
The most important music biz story of Wednesday (August 3) will in all probability endlessly be regarded upon because the shock information from SoundCloud that it’s slashing a fifth of its international workforce in response to the “monetary market headwinds” and “difficult financial local weather” of 2022.
SoundCloud, in fact, isn’t alone as a music firm in getting nervous in regards to the impression that macro-economic components might have on its enterprise within the second half of this 12 months.
But there’s one other facet to this story, and it comes from Paris.
This week, Imagine, the France-born distribution and providers firm (and proprietor of labels similar to Nuclear Blast), launched its H1 2022 outcomes (for the six months to finish of June).
These outcomes make for good-looking studying…
5) $500M-BACKED LITMUS MUSIC LAUNCHES TO BUY PUBLISHING AND RECORDING RIGHTS
A well-funded new participant simply entered the music rights acquisition area.
Music business veterans Hank Forsyth and Dan McCarroll are teaming up with Carlyle International Credit score to launch a enterprise referred to as Litmus Music.
New York-based Litmus says that it’s going to give attention to buying and managing each publishing and recorded music rights, with Carlyle International Credit score committing an preliminary $500 million to take action.
Carlyle International Credit score, which has $143 billion in belongings beneath administration, is investing capital into Litmus from what it calls its “Credit score Alternatives technique”, which, it says, has already deployed $2.2 billion in and across the media and leisure area since 2018.
Carlyle International Credit score is certainly one of three platforms (alongside International Non-public Fairness and International Funding Options), operated by funding agency Carlyle, which had $376 billion of belongings beneath administration as of June 30, 2022….
MBW’s Weekly Round-Up is supported by Centtrip, which helps over 500 of the world’s best-selling artists maximise their revenue and cut back their touring prices.
Music Enterprise Worldwide