New issue of Music & Copyright with UK country report

The latest issue of Music & Copyright is now available for subscribers to download. Here are some of the highlights.

SPECIAL FOCUS: NMPA turns up the heat on Spotify in the US with letter to the FTC
The US National Music Publishers’ Association (NMPA) has written to the US Federal Trade Commission (FTC), calling on the agency to review Spotify’s recent practice of reclassifying its Premium service offerings as bundles. The service made the change earlier this year so it could pay lower mechanical royalty rates. Spotify has claimed that because its plans contain music and audiobooks, it should pay a reduced royalty rate as permitted under US compulsory blanket licensing rules on bundling. The Mechanical Licensing Collective (The MLC) has already filed a legal action against Spotify for making the unilateral royalty switch. However, the NMPA has turned up the heat on the streaming service with its FTC complaint, with more action set to follow if Spotify does not switch back to its non-bundle royalty rates. (View in full)

NEWS FEATURE: Digital takes the lead for TONO in record year for Norwegian collections and distributions
Norwegian authors’ society TONO has reported a third consecutive annual rise in collections and a second straight year of growth for distributions. Digital hit a new record high and became the single biggest income stream for local authors and publishers. The previous leader, broadcasting, registered a modest rise, although TONO said the result was in line with expectations given the competition to radio and linear TV from audio and video streaming. After returning to prepandemic levels in 2022, both concert and background music receipts registered growth last year. However, despite two years of higher collections for cinema, the income source is yet to beat the pre-COVID-19 high. Overseas revenue was up year-on-year, with GEMA providing the biggest share of international payments. (View in full)

SECTOR ANALYSIS: Megabucks for rights acquisitions are doing little good for the music ecosystem
Music catalogs continue to attract buyers prepared to pay many millions of dollars for tracks from leading artists and authors. The latest name in the mix is Queen, with reports suggesting the sale of the band’s catalog could fetch upward of $1bn. Increasingly, the headline deals are being driven by deep-pocketed financial institutions who see recorded-music as providing the opportunity to deliver significant monetary gains. However, these profits are destined to leave the recorded-music sector with nonmusic companies reaping the rewards. What is needed are innovative ways of leveraging the value of rights to help develop music’s creative and entrepreneurial talent. (View in full)

COUNTRY REPORT: The UK
In addition to the usual set of music industry statistics and news briefs, the latest issue of Music & Copyright includes a detailed UK music industry report. The UK is the world’s third-largest recorded-music market. Earlier this year, the IFPI said the country maintained its global ranking, with a trade sales growth rate exceeding that of fourth-placed Germany and the leading markets of the US and China. In common with most other developed markets around the world that suffered from the impact of the COVID-19 global pandemic, certain parts of the UK music industry were badly affected. Live music was the hardest hit, with the sector forced into an 18-month hiatus. Performance-based rights collections also took a tumble. However, both sectors have recovered. The live industry is overflowing with artists wanting to perform, and rights collections are breaking records. Last year, recorded-music sales benefited from higher subscription sales along with an increase in spending on vinyl and CDs. Performance rights collections also registered a new record high. UMG extended its distribution lead over second-placed SME for the second consecutive year. Spending on tickets to live music events returned to prepandemic levels, but many smaller grassroots venues have been forced to close due to tough operating conditions. (View in full)

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