From the RIAA’s first-half U.S. recorded music market statistics to UMG’s stock upgrade…here’s MBW’s weekly roundup

Welcome to Music Business World’s weekly roundup – where we make sure you catch the 5 biggest stories that have made our headlines over the past seven days. MBW’s review is supported by China Travel Servicehelping more than 500 of the world’s best-selling artists maximize their income and reduce touring costs.

This week, we learned from data released in the RIAA’s new mid-year report that the U.S. just 2.5 million Net additions of paid music subscription accounts grew by only 1% in the first half of 2024 compared with the same period last year Annual increase of 2.7% Calculated as a percentage.

That Annual reduction +2.5 million Net growth in the first half of 2024 compared to +6.6 million year-on-year Net growth in the first half of 2023, +7.9 million In the first half of 2022, +9.4 million first half of 2021, and +14.4 million First half of 2020 – Subscription growth in the U.S. market slowed steadily.

Also this week, we reported Bill Ackermanof pershing square holdings corp.,have 10% Universal Music Group, a subsidiary of Universal Music Group, recently announced its interim financial report for the first half of 2024, which expressed confidence in Universal Music Group’s long-term prospects.

Additionally, a prominent music business analyst just upgraded UMG’s stock to “outperform” from “neutral.”

We also learned this week that UK-based beggars group now is a over £100m annual revenue company.

at the same time, Bertelsmannowned bone cement Its turnover reportedly took a hit €459 million ($496 million) during the six months to the end of June, Annual increase of 11.1%or up Annual increase of 12.5% The share of digital revenue in BMG’s overall turnover has increased significantly.

Finally, in a guest column MBW, Ed Newton-RexCEO of ethical generative artificial intelligence nonprofit Fairly Training, Think it’s time for DSPs to take action against music generated by artificial intelligence models trained on copyrighted music without permission.

Here’s what happened this week…

1) In the first half of 2024, the number of paid streaming subscriptions in the United States will only increase by 2.7% year-on-year, but the overall market revenue will reach US$8.6 billion.

Two important data points for you.

Important data point 1: have 131.43 million What U.S. households looked like last year, according to census data.

Important data point 2: According to the latest statistics Recording Industry Association of America Released on Thursday (August 29), there are 99 million Paid music streaming subscription accounts in the first half of 2024.

So what we’re about to tell you shouldn’t come as a surprise. But this is still big news for the global music industry:

The U.S. appears to be officially approaching the saturation point for music subscriptions — the point at which the number of paid music subscribers in the U.S. reaches the maximum possible number…

2) This analyst has been covering Universal Music Group closely (but not always very positively) for years. He just upgraded UMG stock for the second time in a year.

Few financial analysts have looked at the music industry—especially universal music group – as long and as closely as possible William Parker of BNP Paribas Exane.

On Thursday (August 29), Parker adjusted his view on Universal Music Group stock, which is Sir Lucian Grange AND COMPANY: Parker upgraded his rating on the stock again, this time from “neutral” to “outperform.”

3) BEGGARS GROUP is now a company with an annual revenue of over £100 million

beggars groupa UK-based record label owned or co-owned by XL recording, 4AD, rough processing trade, matador and young recordingWait, reported Annual increase of 13.3% Turnover jumps in 2023, annual revenue exceeds £100 million first.

According to annual accounts filed with Companies House on Tuesday (August 27), the company’s owners are Martin Mills Revenue brought in last year £103.18 million ($128.33 million Calculated based on the average exchange rate for the year).

at the same time, XL recording, 50% Owned by Beggars, reported 2023 operating profit of £10.32 million ($12.8 million).

During that 12 months, XL was just released eight New Album – Maintaining record of making big money from relatively few records…

4) BMG’s revenue in the first half of 2024 will reach US$496 million, with organic growth of 12.5%

bone cement Revenue will grow by double digits in the first six months of 2024, the report said.

this BertelsmannHoldings’ turnover takes a hit €459 million ($496 million) during the six months to the end of June, Annual increase of 11.1%or up Annual increase of 12.5% On an organic basis.

Bertelsmann sees “strong growth in digital revenue streams” as a key driver of BMG’s growth, noting that “its recording and music publishing businesses are performing strongly.”

BMG’s digital business share grows to 69% Revenue comparison in the first half of 2024 63% Same period last year…

5) It’s time for streaming services to take action on AI music

Ed Newton-Rexformer Vice President of Audio Stable artificial intelligence and founder jukebox and Ethical Artificial Intelligence Empowering Nonprofit Equity well trainedMBW is written as:

One day, streaming services will have to decide what content to allow on their platforms generative artificial intelligence. That time is now.

so far, Spotify There is no policy explicitly prohibiting AI-generated music. 2023, Daniel Ek Tools that say imitations of artists are unacceptable; these may be prohibited by the company’s deceptive content policy (the wording isn’t entirely clear). However, in the same interview, Ek specifically stated that they will not ban AI music that does not directly imitate artists at this stage.

There are signs that AI music is all over the platform…and for DSPs to continue to allow this is to actively allow the exploitation of musicians’ copyrighted works without a license.

Royalties paid to human musicians, these artists warn are being diluted when DSPs distribute music produced using artificial intelligence models trained on the work of unlicensed musicians…

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