The latest issue of Music & Copyright is now available for subscribers to download. Here are some of the highlights.
Pressing vinyl problems need tech solutions
There’s no sign yet of a collapse of the vinyl revival, and audience demand for the format is in sharp contrast to that of its onetime nemesis, the CD. The segment does face challenges, however, as supply problems continue to dog record companies – while there are no hard numbers available, there are plenty of reports to suggest that long wait times for orders tend to be the norm. The answer would normally be increased capex to build big plants and boost capacity, but that is not likely to happen. Rather, the pressing sector is increasingly characterized by small operations owned and run by audiophiles. The solution, then, is to increase productivity, and that means investing in technologically innovative production facilities that finally do away with antiquated machinery.
Apple issues its response to Spotify’s claims of discrimination
In March Spotify filed a complaint against Apple with the European Commission (EC), complaining that the US tech giant has introduced rules to the App Store that purposely limit choice and stifle innovation at the expense of the user experience. Spotify accused Apple of acting as both player and referee to deliberately disadvantage other app developers. The company also said that after trying unsuccessfully to resolve the issues directly with Apple, it had made the request to the EC for action to be taken to ensure fair competition. The following day, Apple published a statement refuting the Swedish streaming service’s claims. Apple also accused Spotify of suing music creators following a decision by the US Copyright Royalty Board to increase royalty payments to authors and publishers over the next five years.
Tencent Music Entertainment publishes the first financial results since its December IPO
Chinese music giant Tencent Music Entertainment (TME) has published its first financial results since the company’s IPO in December 2018. Although TME’s move to go public involved the publication of documents detailing historic financial and operating details, the latest results provide a good indication of how the company is currently performing. Moreover, the dominance of TME in the music subscription space also illustrates how China as a country is shaping up in the face of considerable expectation from both local and international record companies. Revenue for TME last year was up along with net profits. The number of monthly active users of the company’s music and entertainment services also increased, as did the number of paying users. The popularity of music was confirmed by the publication of the latest China Internet Network Information Center (CNNIC) report on the use of different services by online and mobile users in the country.
Indonesia country report
In addition to the usual set of music industry statistics and news briefs, the latest issue of Music & Copyright includes a detailed Indonesia music industry report. Indonesia is one of a number of countries in Asia that is considered by music companies to offer real prospects for future growth. Although the success of music subscription services in developed markets has turned around the fortunes of recorded-music sales, in most cases sales are slowing, and the likelihood is that there won’t be a return to the record years of the late 1990s. So, continued expansion at a global level beyond the next five years or so must come from the so-called emerging markets, and Indonesia has the potential to be front and center in this future growth.
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