WMG makes recorded-music market share gains, while indies extend publishing lead

The annual survey by Ovum publication Music & Copyright of the recorded music and music publishing sectors has revealed the changes in global market share for the three major music groups and the independent sector. For the second consecutive year, recorded-music leader UMG lost market share, while smaller major WMG closed the gap on second-placed SME. Sony remained the leader in terms of corporate control of music publishing, though its share has fallen for two straight years. Little change in share for second-placed UMPG meant the company narrowed the gap with Sony. The collective shares of the independent publishing sector registered the biggest publishing share increase.

Shifting market shares, but majors still dominate
According to Music & Copyright, UMG had a 32.8% share of combined physical and digital recorded-music trade revenue last year, down from 33.7% in 2015. For physical revenue only, UMG’s share stood at 30.2%, while its digital share was 34.6%.

Record companies’ physical- and digital-revenue market shares, 2015 and 2016

Source: Music & Copyright

SME was the second-largest music company, with a combined physical/digital market share of 22.2%, down from 22.6% in 2015. SME registered a year-on-year fall in both physical and digital market shares. The company’s share of all recorded-music trade revenue, which includes licensing and other revenue as well as income from physical and digital music sales, was also down, to 22.4%, from 22.8%. The smallest of the majors, WMG, was the only one of the three to register share increases last year. The company’s share of revenue from physical recorded-music sales stood at 17% in 2016, up from 16.3% in 2015. For digital, the share grew to 18.9%, from 18.2%. WMG’s combined physical/digital share increased, to 18.1%, from 17.3%.

The independent record companies’ share of combined physical/digital revenue was up in 2016, to 26.9%, from 26.4%. Although the company sector increased its share of both physical and digital revenue, independents’ share of physical formats remained higher than their digital share.

Warner Chappell and indie sector register share gains
Sony maintained its leading position in the publishing sector last year despite a second consecutive dip in market share. The company accounted for 27% of global publishing revenue, down from 28.3% in 2015. Sony took the top spot in 2013, following the purchase of EMI Music Publishing by a Sony-led consortium in 2012. In addition to revenue from EMI MP repertoire administered by Sony, the company’s publishing share includes Sony/ATV earnings as well as income from Sony Music Publishing Japan.

Music-publishing companies’ revenue shares, 2015 and 2016

Source: Music & Copyright

It is worth noting that based on a more comprehensive assessment of the publishing sector, we have restated the previously published 2015 figures. Although some shares have been changed, none of the publishers’ annual performances has been affected.

UMPG was the second-largest music publisher last year and closed the gap with Sony, though its share edged down slightly, to 19.8%, from 20% in 2015. Third-placed Warner Chappell was the only major publisher to register an increase last year, with the company’s share rising to 12%, from 11.4%.

Independent music publishers have long dominated music publishing and continue to compete well with the majors for major artists’ attention. Last year proved to be no exception. Music & Copyright estimates that independent companies accounted for 41.2% of publishing revenue, compared with 40.3% in 2015.

If you want to know more about Music & Copyright then follow the below links.

Music & Copyright is published by Ovum.

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New issue of Music & Copyright with Finland country report

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

WMG makes recorded-music market share gains, while indies extend publishing lead
Music & Copyright’s annual survey of the recorded-music and music-publishing sectors has revealed the changes in global market share for the three major music groups and the independent sector. For the second consecutive year, recorded-music leader UMG lost market share, while smaller major WMG closed the gap on second-placed SME. Increased granularity of published music company data meant for the first time the annual survey contained market share figures for music streaming. Sony remained the leader in terms of corporate control of music publishing, though its share has fallen for two straight years. Little change in share for second-placed UMPG meant the company narrowed the gap with Sony. The collective shares of the independent publishing sector registered the biggest publishing share increase, with leading indies BMG and Kobalt both making market share gains.

Domestic collection growth for SENA, but lower US income hits overall total
SENA, the Dutch collection society representing performers and producers (record companies), has reported a fall in total licensing income for 2016. Although domestic receipts were up year on year, lower income from the US meant international collections were down sharply. Similarly, total domestic invoiced licensing revenue registered growth, but overseas invoiced revenue fell. Distributions in the Netherlands and abroad were also down last year. General licensing was the biggest collection source for SENA members, ahead of broadcasting. SENA noted in its annual report that a joint-venture service center created with the authors’ society BUMA began dealing with its individual and collective licensing agreements from the beginning of last year. The aim of the venture is to create efficiency savings for the two societies.

ECJ backs Stichting Brein in media player copyright case
The European Court of Justice (ECJ) has sided with the Dutch antipiracy group Stichting Brein in a case concerning the sale of a multimedia player that enables copyright-protected audiovisual content to be viewed for free. The defendant in the case is an online retailer of a multimedia player that contained open source software that enabled video files to be played through an interface. The court decided that the multimedia player enabled a communication to the public of audiovisual content as described in the 2001 European Copyright Directive and so breached European law. The court also ruled that temporary acts of reproduction as carried out by the multimedia player of a copyright-protected work obtained by streaming on a website belonging to a third party was not exempt from legislation covering the right of reproduction.

Finland country report
In addition to the usual set of music industry statistics and news briefs, the latest issue of Music & Copyright includes a detailed Finland music industry report. Finland is just outside of the global top 20 in terms of trade revenue from recorded music. But, despite its small size, the country is a market leader with regards to progress in the digital transition from ownership to access. Subscription services already account for around two-thirds of recorded-music trade earnings in the country, and this share is expected to rise further as the previous reliance on physical formats slips away and sales of downloads disappear. UMG took the top spot in market share terms last year, replacing WMG, which had been the leader for several years. Royalty earnings were positive, with collections from music use maintaining a well-established growth trend. The country’s live sector also registered a good year despite attendance at festivals suffering from poor weather conditions.

If you want to know more about Music & Copyright then follow the below links.

Music & Copyright is published by Ovum.

New issue of Music & Copyright with Germany country report

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

ASCAP collections top $1bn for the second consecutive year
US performing rights organization ASCAP has reported a new record for royalty collections with revenue exceeding $1bn for the second year running. The growth came solely from domestic collections with all the major revenue sources recording an increase. Overseas collections were down with distributions to ASCAP members also suffering a decline. ASCAP’s operating expense ratio edged down while the number of performances tracked, matched, and processed for payment rose sharply. Last year ASCAP became the first performing rights organization (PRO) in the US to provide share ownership information in its publicly available online database for the 10 million–plus musical compositions in its repertory.

PRS for Music reports record year for performance royalties
UK authors’ society PRS for Music has reported a record year for performance royalty collections with all the main income sources registering a year-on-year rise. International royalties, the authors’ society’s biggest income source, returned to growth after a dip in 2014 with collections boosted by a number of exceptional payments, cable settlements, and higher broadcasting revenue. Distributions were also up last year compared with 2014 along with net distributable income. However, costs rose sharply, largely because of certain exceptional costs and one-off expenses associated with litigation and planned investments. As a result, the cost-to-income ratio increased year on year.

Big quarter for WMG as streaming takes the recorded music lead
WMG has reported details of the second quarter of its current financial year ending September 2016. Revenue in the January to March period was up at both current and constant exchange rates compared with the first three months of 2015. Notably, revenue from streaming has overtaken that of physical formats to become the biggest source of income for recorded music. Revenue from artist services and expanded rights also increased along with digital and synchronization earnings for the publishing division Warner Chappell. WMG noted that the fall in recorded music licensing earnings was mostly down to the impact of a large initial distribution of PLG neighboring rights income in the second quarter of the previous financial year.

Germany country report
In addition to the usual set of music industry statistics and news briefs, the latest issue of Music & Copyright includes a detailed Germany music industry profile. Retail sales of recorded music in Germany are on something of a roll at the moment. Trade association BVMI reported a third consecutive year of growth in January thanks to a big jump in revenue from subscriptions and streaming fully offsetting the falls in spending on CD albums and music downloads. Although revenue from access services now accounts for the biggest share of digital music income, CD albums remain the most popular format for German consumers. Authors’ society GEMA has also registered three straight years of revenue growth with total collections last year just edging past the previous year’s record total. Germany’s live industry, the biggest in Europe, is in good shape. The setting up of a Live Nation office in the country has heightened competition in an already competitive sector.

If you want to know more about Music & Copyright then follow the below links.

Music & Copyright is published by Ovum.

New issue of Music & Copyright with Australia country report

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

Sony/ATV and Pandora sign second direct licensing deal
Music publisher Sony/ATV has signed a direct licensing deal with online radio service Pandora. Described by both companies as a “win-win,” the deal will see increased performance royalty rates payable by the digital music service to the publisher, while Pandora will benefit from greater rate certainty and the ability to add new flexibility to its product offering over time. The deal is the second direct agreement between the two: The first was signed in 2013 after Sony/ATV withdrew certain digital licensing rights licensing from the US performance rights organizations ASCAP and BMI. However, that deal was declared invalid by a rate court judge, who ruled that authors organizations’ partial withdrawals of licensing rights was not allowed under the consent decree and that blanket licenses offered by ASCAP and BMI music include all repertoire.

Report on Spotify’s revenue-neutral status raises more questions than it answers
A new report published by the European Commission’s Joint Research Centre has examined how the rise of music subscription service Spotify has affected sales of downloads and the popularity of unlicensed online music distribution. The report found that the use of Spotify does impact on download sales and goes some way to displacing music piracy. However, the report notes that losses from displaced sales are roughly outweighed by the gains in streaming revenue, meaning that Spotify is effectively revenue-neutral for the recorded music industry. Although the report’s conclusions are limited, given that Spotify was the only service used to measure the wider impact of streaming, it raises questions over the wider distribution of streaming revenue to the different rights holder groups and why, if streaming is revenue-neutral, are so many artists unhappy with their royalty payments.

Rightscorp and the high costs of copyright enforcement
US-based copyright enforcement company Rightscorp keeps making headlines, mostly for the wrong reasons. The firm may be able to count a handful of leading music publishers on its roster but it has yet to demonstrate that it can make its anti-piracy system work for its bottom line. In addition, Rightscorp has come under fire for alleged harassment of those it considers to be copyright infringers and is fighting a number of lawsuits. It is also in dispute with leading US ISPs Cox Communication and Comcast, the kinds of companies it needs to have on it is side if it is to be a commercial success. In short, Rightscorp seems to be having difficulties making friends right now.

Australia country report
In addition to the usual set of music industry statistics and news briefs, the latest issue of Music & Copyright includes a detailed Australia music industry profile. The Australian recorded music industry has endured a long period of falling sales. Although consumer interest in music subscriptions is strong, spending on music access services has not been able to offset declines elsewhere. The country looked to have turned the corner in 2012 with record company income from digital sales fully countering the drop in CD album sales. However, trade revenue contracted in 2013 and 2014 and prospects for future growth are not so good. In contrast to the recorded music sector, Australia’s live music industry has registered two years of rising ticket sales and attendance. Authors’ society APRA AMCOS is also experiencing its best years, with strong gains in digital income boosting total collections to record levels.

If you want to know more about Music & Copyright then follow the below links.

Music & Copyright is published by Ovum.

New issue of Music & Copyright with China country report

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

European Commission sets out its 16-point plan for the Digital Single Market
The European Commission has published details of how it intends to create a Digital Single Market in the region. The new plan sets out a number of targeted actions to be delivered by the end of 2016. The plan is separated into three specific areas aimed at providing better access for consumers and businesses to digital goods and services across Europe, creating the right conditions for digital networks and services to flourish, and maximizing the growth potential of the digital economy. Of particular interest to the music industry are the Commission’s plans to end geoblocking and its legislative proposals for a new copyright law aimed at reducing the differences between national copyright regimes. Continue reading “New issue of Music & Copyright with China country report”

Recorded music market share gains for WMG in 2014, Sony/ATV is the publishing leader

The annual survey by Ovum publication Music & Copyright of the recorded music and music publishing sectors has revealed that recorded-music leader UMG lost market share in 2014, mainly as a result of the sale of the Parlophone Label Group (PLG) to WMG in 2013, which formed part of EMI Recorded Music acquisition requirements. UMG’s loss was WMG’s gain and the smallest of the three majors narrowed the gap on second-placed SME. Sony/ATV held its lead in music publishing, but the collective share of the independent publishing sector was the highest overall.

Majors cede a little recorded-music market share to the independents
Following two years of consolidation in the recorded-music and music-publishing sectors after the breakup of EMI Music Group and the subsequent sales of EMI’s record and publishing divisions, restructuring and company selloffs have had an impact on the market share figures for the major music groups in 2014.
UMG acquired EMI Recorded Music and a Sony-led consortium of companies bought EMI Music Publishing in 2012. National and regulatory approval required a number of company sales, which were completed with the sale of the PLG in July 2013. The timing of the sale meant year-on-year market-share comparisons for UMG and WMG this year and in 2013 were affected. Moreover, at the time of the PLG acquisition by WMG, the major said it would sell some of the PLG assets, or their equivalent value of owned assets, to independent companies. Strong interest by the independent sector has delayed the asset sales with more than 140 companies reported to have bid for around 11,000 artist catalogs. Should the selloffs be completed this year, WMG’s 2015 market share may well be negatively affected.

UMG is the recorded-music leader despite a market share dip
According to Music & Copyright’s annual survey of the music industry, UMG had a 34.1% share of the combined physical and digital recorded music trade revenue last year, down from 36.7% in 2013. For physical revenue only, UMG’s share stood at 32.3%, while its digital share was 36.1%. SME was the second-largest music company, with a virtually unchanged combined physical/digital market share of 22.5%.

Record companies, physical and digital revenue market shares, 2012–14
Recorded shares 2014
Source: Music & Copyright

The smallest of the three majors, WMG, was the only company to experience an increase in both physical and digital shares: Its share of revenue from physical recorded music sales was 15.7% in 2014, up from 14.8% in 2013, while the share gain was slightly lower for digital, rising to 17.7%, from 17.1%. WMG’s combined physical/digital share grew, to 16.7%, from 15.8%.
The independent record companies’ share of combined physical/digital revenue also rose last year, to 26.7%, from 25.1% in 2013. The sector increased its share of both physical and digital revenue. However, the independents’ share of physical formats is still higher than its digital share.

A healthy year for music publishing
Music & Copyright has calculated that global music publishing revenue grew 2.5% in 2014, to $4.05bn, from $3.95bn in 2013. Despite a virtually unchanged market share in 2014 of 29.5%, Sony/ATV, the joint venture between Sony and the Michael Jackson Estate, remained the global publishing leader. Although Sony/ATV and EMI MP are still separate companies, with EMI MP repertoire administered by Sony/ATV, Music & Copyright has combined the companies’ shares. EMI MP is the larger of the two companies in terms of tracks owned and administered, with a publishing catalog of around 2 million tracks, compared with 1.6 million for Sony/ATV.

Music publishing companies, revenue market shares, 2012–14
Publishing shares
Source: Music & Copyright

UMPG is the second-largest music publisher. The company’s market share edged up slightly last year, to 23.0%, from 22.6% in 2013. Warner Chappell was the only major music publisher to suffer a fall in share in 2014.

Independent companies hold the lead
Independent music publishers have long dominated music publishing and compete well with the majors for major artists’ attention. Last year, the independent music publishing sector experienced a small increase in share: Music & Copyright estimates that independent companies accounted for 35.0% of global publishing revenue, compared with 34.8% in 2013.
BMG Rights Management is the biggest of the independent music publishers and has gained share consistently through a mixture of company acquisitions and administration deals. Music & Copyright estimates that BMG’s share of global music publishing revenue was 5.4% in 2014, up from 5.1% in 2013.
Kobalt has also made gains in the last few years, although increased revenue for the company has come from organic growth rather than through company acquisition. Music & Copyright estimates that Kobalt’s share of global publishing revenue increased to 3.9% last year, from 3.5% in 2013.

If you want to know more about Music & Copyright then follow the below links.

Music & Copyright is published by Ovum.

New issue of Music & Copyright with global market share details

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

Recorded music market share gains for WMG in 2014, Sony/ATV is the publishing leader
The annual survey by Ovum publication Music & Copyright of the recorded music and music publishing sectors has revealed changes in global market shares of the three major music groups. Recorded music leader UMG lost market share in 2014, mainly as a result of the sale of the Parlophone Label Group (PLG) to WMG in 2013, which formed part of EMI Recorded Music acquisition requirements. UMG’s loss was WMG’s gain and the smallest of the three majors narrowed the gap on second-placed SME. Sony/ATV held its lead in music publishing, but the collective share of the independent publishing sector was the highest overall. Continue reading “New issue of Music & Copyright with global market share details”