The music industry saw a few major changes this week on rights and marketing. Let’s dive into the main topics of these last few days!
#1. Hipgnosis Songs Fund Sells to Blackstone
After six years of drama, Hipgnosis Songs Fund shareholders have approved its $1.6 billion sale to Blackstone. The decisive votes, with 99.97% approval, mark the end of Hipgnosis' public trading. The transaction, pending final court approval on July 26th, will see Hipgnosis delist from the market by the end of July, with shareholder payments expected by August 12th.
Despite this sale, Blackstone plans to continue operating the Hipgnosis brand. The sale concludes a significant chapter in music-IP investment, which has reshaped the industry landscape, paving the way for major deals, including Sony Music's reported $1.3 billion bid for Queen's catalog.
#2. US Copyright Office Confirms Termination Rights for Streaming Royalties
So the US Copyright Office has clarified how termination rights apply to streaming royalties under the Music Modernization Act (MMA). What does that mean?
The ruling confirms that songwriters can collect mechanical royalties from streaming platforms like Spotify and Apple Music after reclaiming their rights from publishers. This decision dismisses the "derivative works exception" and mandates the Mechanical Licensing Collective (MLC) to adjust and retroactively correct previous royalty payments.
Effective August 8, 2024, this ruling ensures fair compensation for creators reclaiming their copyrights, marking a significant precedent in copyright law for the digital age. Music industry advocacy groups have widely praised the decision as a crucial step in protecting songwriters' rights.
#3. The Vital Growth of Neighboring Rights
Laurence Oxenbury, Director of International at PPL, underscores the rising importance of neighboring rights as a crucial revenue stream for recording rights-holders. Indeed, in 2023, neighboring rights income reached $2.7 billion, marking a significant 9.5% of the global recorded music market.
With emerging markets like Indonesia, the Philippines, and China showing substantial growth potential, and Africa witnessing rapid expansion, the global landscape is evolving. Effective data management and regulatory support are essential to harness this growth.
Oxenbury emphasizes that neighboring rights are no longer peripheral but a key revenue source for the music industry, promising further economic benefits for rights-holders worldwide.
#4. Powerful Marketing Tools for the Music Industry
The music industry is increasingly leveraging platforms like Fortnite and Roblox for innovative marketing strategies, moving beyond virtual concerts to create immersive experiences that promote new releases. This shift is exemplified by rapper Don Toliver's custom Fortnite game, designed to support his album "Hardstone Psycho," and Metallica's recent Fortnite integrations.
Additionally, the Rolling Stones launched a presence in Roblox's "Beat Galaxy," offering interactive music experiences. These platforms enable artists to engage deeply with fans, transforming passive listening into active discovery and creating new revenue streams for musicians and rights holders.
#5. YouTube Music Pilots AI-Generated Radio Stations
YouTube Music is testing a new AI-driven feature called "music any way you like," which creates personalized radio stations based on user prompts. Users can request specific music styles, such as "catchy pop choruses" or "epic soundtracks," through a chat interface. This experimental feature aims to enhance music discovery and personalization, challenging competitors like Spotify. Although still in early testing, this initiative reflects YouTube Music's strategic move to leverage AI for a more tailored listening experience.
