This week, we noticed a strong focus on artists’ role within the music industry. We’ll explore how they interact with these key players, the impact of major labels, and the influence of various platforms on their success. Let’s dive in:
#1. Universal Music Group Ambitions For 2028
Despite moderate subscription streaming growth in Q2 2023, Universal Music Group (UMG) aims to reassure its investors by outlining new financial targets for the next five years. During its recent Capital Markets Day event in London, UMG announced its expectation for an annual revenue growth of 7% or more, and adjusted EBITDA growth of 10% or more by 2028. Not too shabby.
UMG is betting on the expansion of subscription revenues, superfan monetization, and increasing cash flow, with the hopes of significant streaming subscription growth for the next few years. These projections are intended to regain the attention of financial markets, following a shy period after Q2 results fell slightly below analyst expectations.
#2. TikTok Drives Over a Quarter of Germany’s Top 100 Singles in 2022
A recent study by TikTok reveals that more than one in four (actually 27%) of Germany’s Top 100 singles in 2022 went viral on the platform before rising up in the actual charts. According to the TikTok Marketing Science Global TikTok as a Discovery Engine Study 2023, these tracks were featured on TikTok’s Hot 50 chart an average of 12 days before entering the official German singles chart.
German artists like Ayliva, Luciano, and Nina Chuba saw early success on TikTok, alongside global stars like Miley Cyrus and Harry Styles. TikTok’s influence has reshaped music discovery, offering a platform for both newcomers and established acts to reach new audiences.
#3. Festivals as a not-to-be-missed opportunity for emerging artists
Music festivals offer emerging artists crucial opportunities to showcase their talent, gain industry recognition, and expand their fanbase. Festival slots often serve as pivotal moments in artists' careers, leading to wider exposure and, in some cases, stardom.
Case and point: the Arctic Monkeys' rise to fame, for instance, was accelerated by their performance at the 2005 Reading and Leeds Festival, leading to their chart-topping single “I Bet You Look Good on the Dancefloor.” Chappell Roan’s festival appearances, including at Coachella and Boston Calling, have also driven her rapid ascent in the pop scene, growing her fanbase and streaming numbers.
Festival stages can propel emerging artists to new levels of success, making them an invaluable opportunity for career growth and maybe replacing the smaller venues that were a strong discoverability lead.
#4. The Music Industry Wants Protections Against AI
The Human Artistry Campaign, supported by prominent artists like Cardi B, Billy Idol, and Mary J. Blige, is ramping up efforts to pass the No Fakes Act, a federal law aimed at protecting individuals' voices and likenesses from unauthorized AI use. This bill, introduced in Congress in October 2023, seeks to create legal safeguards for artists against AI-generated imitations.
Backed by major industry groups like the RIAA and A2IM, the No Fakes Act has gained momentum, especially following California's new AI laws. However, it has faced opposition from free expression advocates, who argue that the legislation could stifle creativity.
Despite challenges, many in the music and broadcasting industries are calling for its swift passage, viewing it as essential to safeguarding artists' rights in an increasingly AI-driven world.
#5. U.S. Court Questions TikTok’s Challenge to Potential Ban
During recent oral arguments, a three-judge panel of the U.S. Court of Appeals for the District of Columbia Circuit scrutinized TikTok’s challenge to the legislation. The court considered whether this move aligns with constitutional precedents concerning foreign ownership and national security.
The U.S. government contends that TikTok’s Chinese ownership poses a significant security threat, potentially allowing China to use the app for surveillance or information warfare. In response, TikTok argues that the law, which would ban the app from U.S. mobile stores if ByteDance does not sell it, violates the First Amendment by targeting a specific foreign entity and its U.S. users.
Judges questioned whether less severe measures, such as increased transparency about TikTok’s algorithm, could address security concerns without a full divestiture. TikTok’s legal team claimed that the government’s evidence of Chinese influence remains largely classified and has not demonstrated direct manipulation of content or access to U.S. user data.
The court’s decision is awaited with potential implications for TikTok’s operation in the U.S., as well as broader concerns about foreign influence and data privacy.
