Here we go again! This week, interesting intakes on the valuation of music, the latest on AI regulations, and the main reasons behind the fact independent labels are still more attractive to artists.
#1. Blackstone takes even more space in the music valuation space
In a major development for the music industry's M&A landscape, Blackstone has acquired a majority stake in Citrin Cooperman (CC), valuing the New York-based advisory firm at over $2 billion. Previously owned by New Mountain Capital, CC is a key player in music rights valuation, housing experts like Barry Massarsky, known for overseeing deals worth billions with companies such as Sony Music Publishing, Universal Music Publishing, and Warner Chappell Music.
This acquisition follows Blackstone's recent moves in the music sector, including its $1.58 billion take-private deal for Hipgnosis Songs Fund and ownership of SESAC Music Group. As CC enters a new growth phase under Blackstone, industry observers are curious about how this might reshape the competitive landscape in music rights valuation.
#2. Copyright guardrails set on Anthropic
Anthropic has agreed to maintain copyright guardrails on its AI tools to prevent reproducing or infringing on copyrighted content, a significant development in its legal battle with music publishers. This agreement stems from a lawsuit filed in 2023 and a preliminary injunction motion in 2024.
The AI company, which had argued its use of copyrighted material for training constituted "fair use," will now ensure its systems avoid generating content derived from copyrighted works, including song lyrics. Future models and updates will also adhere to these standards. Music publishers retain the right to report potential violations, and Anthropic is obligated to respond promptly and investigate claims.
While this agreement doesn’t resolve all disputes—especially around past training practices—it marks a step forward in balancing AI innovation and copyright protection in the music industry.
#3. Vinyl and streaming are pushing the UK music market
The UK music industry reached a 20-year high in 2024, surpassing the peak of the CD era, driven by booming streaming numbers and a vinyl renaissance. According to ERA’s annual report, music consumption hit the equivalent of 201.4 million albums, with streaming accounting for 178 million of those. Music revenues climbed 7.4% year-over-year to £2.38 billion, breaking records previously set in 2001.
Vinyl sales grew by 10.5% to £196 million, while CD sales remained steady. Taylor Swift’s The Tortured Poets Department led album sales, with over 111,000 vinyl copies sold.
ERA CEO Kim Bayley celebrated the industry's comeback, crediting the synergy of physical and digital formats for sustained growth. As Bayley put it, “Music is back,” marking a resounding success for the sector’s diverse distribution ecosystem.
#4. Independent record labels remain more attractive to artists
Indie record labels are having a moment, drawing in more artists with promises of creative freedom, better royalties, and a collaborative community. Recent reports highlight a 16% global revenue growth for independent music in 2023, outpacing major labels and capturing 31.5% of the market. This trend is supported by platforms like Spotify, where indies claimed half of the $9 billion paid to rights holders in 2024.
Indie labels often provide artist-friendly contracts, including higher royalty percentages (up to 50%), shorter terms, and rights reversion—a stark contrast to the complex and profit-driven agreements of major labels. Advances in technology, social media, and affordable music creation tools have also leveled the playing field, empowering indies to thrive without massive budgets.
Success stories from artists like Bon Iver, Arctic Monkeys, and Chance the Rapper demonstrate the appeal and viability of the indie path, even as majors continue to acquire or partner with indie imprints to stay relevant. For artists prioritizing autonomy and fairness, indies seem to be the future.
#5. Music documentaries to accompany January
You may remember that a few weeks back, we talked about music documentaries and biopics being all the rage and even becoming marketing strategies as a whole. Well, we’re far from seeing the end of it; the LA Times just released the list of the 20 music documentaries to watch! So allow the major figures of Music to accompany you during January!
