From the unmissable Universal Music Group / Believe to music streaming platforms’ latest news on their new features, we had a strong week! See for yourselves!
#1. Dispute of the week: UMG vs Believe
Universal Music Group has filed a $500 million lawsuit against Believe and its TuneCore platform, alleging widespread copyright infringement and unauthorized distribution of altered popular tracks, including works from Kendrick Lamar and Lady Gaga. UMG claims Believe’s practices have allowed the unauthorized distribution of modified and remixed versions of copyrighted songs on major streaming services without proper licensing. The lawsuit also accuses Believe of using YouTube’s Content ID to claim ownership of UMG-owned tracks, allegedly forcing UMG to contest these claims repeatedly. Believe denies the allegations and pledges to challenge UMG in court, asserting its commitment to copyright compliance.
#2. Investments to come for the Music and Entertainment industry
Shamrock Capital, known for acquiring Taylor Swift's masters and other high-profile music rights, has raised $1.6 billion for two new funds: the Growth Fund VI and the Clover Fund I. While Shamrock hasn't confirmed music industry-specific investments, the firm will target sectors like media, entertainment, content, and communication, positioning itself as a major player for buyout and growth equity investments across dynamic markets. The new funds, which were oversubscribed, will allow Shamrock to continue expanding its content strategy, which already includes over 1,000 films, 3,000 hours of TV, and 20,000 musical compositions.
#3. The current part of independents in the music industry
A new report from MIDiA Research reveals that independent labels and self-releasing artists—collectively termed ‘non-majors’—now control 46.7% of the global recorded music market by ownership, totaling $14.3 billion in 2023 revenue. Despite representing a 34.2% share on a distribution basis, non-majors are expanding their market influence as smaller labels sustain a healthy revenue share despite the "long tail" effect. Notably, only a small fraction of the nearly 13,000 independent labels drive a significant portion of this revenue, showcasing the diverse but impactful role of independents in the streaming-dominated landscape.
#4. The infamous 1,000 monthly streams, updates
A recent analysis by Luminate shows that only 20% of artists on Spotify achieve 1,000 monthly streams, a threshold significantly affecting their earnings under Spotify’s updated royalty policy. This policy, which withholds payment until an artist hits 1,000 streams in a 12-month period, aims to avoid excessive bank fees on small payments but highlights a tough reality: 86.2% of tracks receive fewer than 1,000 plays, and 45.6 million tracks go unplayed entirely. As streaming opens music to global competition across genres, artists face heightened challenges to reach sustainable streaming numbers and income.
#5. TIDAL’s latest news
Tidal has announced another wave of layoffs, with owner Jack Dorsey telling employees the company needs to “build like a startup again.” This restructuring will affect teams across product management, marketing, and design, potentially impacting up to 25% of staff, as Dorsey prioritizes engineering and design to enhance the platform’s artist-focused initiatives. This is Tidal's second round of layoffs within a year, highlighting ongoing struggles to compete against streaming giants like Spotify and Apple Music, which control 97% of the U.S. market.
