Welcome to Music Business Worldwide’s weekly round-up – where we make sure you caught the five biggest stories to hit our headlines over the past seven days. MBW’s round-up is supported by Centtrip, which helps over 500 of the world’s best-selling artists maximize their income and reduce their touring costs.
Create Music Group has been a company to watch for several years now, all the more so following a funding round earlier this year that gave it the status of unicorn: A $1 billion valuation. Create continued its acquisition and investment streak this week, taking a 50% stake in London-headquartered EDM label and publisher Enhanced.
Also this week, MBW reported that Sony Music pulled its entire catalog from Africa-focused streaming service Boomplay, including music distributed by The Orchard and AWAL. It appears other rightsholders are also concerned about late royalty payments from the platform.
Meanwhile, the saga of the United States versus TikTok continued this week, with the social media platform filing for an emergency motion to delay the January 19 deadline when the app must be divested from Chinese parent company ByteDance. The government responded to that filing, urging the court to reject TikTok’s motion.
Also this week, MBW published an interview with UnitedMasters Founder and CEO Steve Stoute, following last week’s news that Gata Only, released independently via UnitedMasters, was the most popular track globally on TikTok this year. Half of the Top 10 biggest tracks globally on TikTok in 2024 were handled via independent (i.e. non-major) distribution, while four of the Top five biggest tracks on the platform this year were independently distributed.
Finally, MBW founder Tim Ingham dug into Drake’s legal action against Universal Music Group (UMG) over Kendrick Lamar’s diss track Not Like Us.
Here’s what happened this week…
Pic: Lucy Moir/Enhanced
1) $1BN-VALUED CREATE MUSIC GROUP ACQUIRES 50% STAKE IN UK LABEL AND PUBLISHER ENHANCED
It’s been a busy year for California-headquartered Create Music Group.
In June, it closed a USD $165 million investment round led by private equity firm Flexpoint Ford, which valued Create at $1 billion.
Soon thereafter, it announced the acquisition of Manchester, UK-based label and publisher Ostereo.
Now the company is making another investment into a UK label and publisher, with a 50% stake in London-headquartered Enhanced…
2) SONY MUSIC PULLS CATALOG FROM AFRICA-FOCUSED MUSIC STREAMING SERVICE BOOMPLAY
It’s long been touted as one of the most exciting music streaming platforms in Africa – with over 98 million monthly active users as of the end of 2023 and a steep growth trajectory.
But now Boomplay’s relationship with music’s leading global rightsholders is looking precarious.
MBW has confirmed that Sony Music has this week pulled its full catalog from the service, including titles distributed by The Orchard and AWAL.
Meanwhile, sources tell MBW that concerns have been growing at other rightsholders over late royalty payments from the platform…
Credit: Ascannio/Shuttterstock
3) US GOVERNMENT ASKS COURT TO REJECT TIKTOK’S MOTION TO DELAY LAW THAT COULD SEE ITS APP BANNED IN THE MARKET
The US government has asked the court to reject TikTok’s emergency request to delay a law that could ban the app in the US unless its China-based owners sell the platform by January 19.
A federal appeals court rejected TikTok’s lawsuit challenging the law last Friday (December 6). TikTok has said it will appeal the decision in the Supreme Court.
On Monday (December 9) TikTok and its parent company ByteDance filed an emergency motion asking for a temporary injunction to delay the law, arguing that “the Supreme Court should have an opportunity, as the only court with appellate jurisdiction over this action, to decide whether to review this exceptionally important case…”
4) Steve Stoute talks independence, emerging markets and how UnitedMasters artist FloyyMenor scored TikTok’s biggest song of 2024
Indie distribution nibbling into the majors’ streaming market share is one of the modern industry’s biggest conversation-starters.
The success of FloyyMenor and Cris Mj’s Gata Only is a prime example of how the balance of power is shifting.
TikTok confirmed last week that the viral hit from Chile, released through independent distribution company UnitedMasters, was the most popular track globally on its platform this year… (MBW)
5) ON… DRAKE, DISGUST, AND DISCOVERY MODE.
Pic: Sam Kovak/Alamy
Well, I’m disgusted.
Seven years ago, I uploaded my musical masterpiece, Pinky Hue, to streaming sites.
You may have assumed that Pinky Hue was merely a cheap journalistic stunt; a tool for Music Business Worldwide to prove how simple it was to buy streams on Spotify.
If so, shame on you. Pinky Hue was actually my Bohemian Rhapsody.
Yet other than the 10,000 streams I purchased (easy peasy!), Spotify’s users completely ignored it.
No one listened. No one cared…
MBW’s Weekly Round-Up is supported by Centtrip, which helps over 500 of the world’s best-selling artists maximise their income and reduce their touring costs.Music Business Worldwide
