A report showed CISAC revenue is on the rise. Also, rumors swirled that EMI publishing is going up for sale. And Bandsintown opened up to venues and festivals.
CISAC Revenue Growing Despite YouTube and Other Threats
The International Confederation of Societies of Authors and Composers (CISAC) said music revenue rose by 6.8 percent in 2016.
According to Billboard, revenue was up to $7.9 billion from $8.435 billion for CISAC, an entity that collects data from 239collection management organizations in 123 countries.
CISAC calculated that overall revenue was $9.65 billion, an increase of almost six percent. The total CISAC revenue for 2016 includes revenue from music, audio visual, literary works, dramatic works and visual arts.
Europe made up $5.29 billion of this revenue, with North America accounting for $2.086 billion. Other regions included in the revenue calculation in order of earnings were Asia Pacific, South America and Africa.
In terms of performance and mechanical royalties last year, TV and radio made up $3.58 billion in revenue, whereas live performances in concert halls and clubs and background music at hotels, retail stores and others made up $2.66 billion. These royalties were up by 2.6 percent.
Digital royalties surged, up 51.9 percent to $995.6 million. In 2015, digital royalties were $655.3 million.
Despite this huge boost, the report from the CISAC indicated that digital growth overall was slightly stalled by lagging revenue from YouTube and other user-generated content video streaming platforms.
Jean-Michel Jarre explained, “Collections are nowhere near the level they should be. Large industries that use creative content are driving down the value of our works … A simple illustration of this is the ‘transfer of value’ in the digital market where platforms such as YouTube are paying mere crumbs to authors. There is no greater priority that we ask from governments today than a solution to the transfer of value.”
Still, even revenue from CDs and videos grew by 9.4 percent.
CISAC director general, Gadi Oron elaborated on the report: “This year’s report shows the system of collective management of creators’ rights is robust, successful and ready for more growth … The big traditional revenue streams, led by broadcast and live performance, remain stable and strong. Digital royalties continue to surge and in some markets already overtake other forms of income. The figures we’re releasing today reflect our societies’ relentless effort to be more efficient and innovative, and drive income growth.”
The U.S. led the world in music collections, taking in $1.85 billion. Japan had the second largest with $904 million, up 12 percent from 2015. Sweden had the largest revenue collection by population with $30.03 per person.
EMI Music Publishing Possibly Approaching a $3 Billion Sale
Industry insiders speculated that EMI Music Publishing may go up for sale soon for a rice of around $3 billion, according to Music Business Worldwide via the Sunday Telegraph.
This comes amidst a number of big music industry deals in 2017, including Round Hill’s purchase of Carlin Music for $250 million and Concord’s purchase of Imagem Music for $500 million plus. Warner also acquired Spinnin’ Records for $100 million, while BMG bought Broken Bow Label Group for the same amount.
If EMI were to sell for several billion, the return on investment to Sony would be around $800 million. Sony bought EMI’s publishing arm for $2.2 billion five years ago.
EMI holds 1.3 million copyrights, such as works from Beyoncé, Drake, Jay-Z, Norah Jones, Alicia Keys, P!nk, Scissor Sisters, Rihanna, Stargate, Usher, Kanye West, Pharrell Williams, Duffy, Arcade Fire and more.
Sony proper does not own a majority stake in EMI Music Publishing, rather just 30 percent. Sony/ATV acquired 10 percent. And 60-percent of the EMI publishing company is owned by a collection of other finance partners.
Sony/ATV has been in charge of administering EMI Music Publishing since the buyout and get 15-percent of Net Publisher Share annually for this function. The company has also cut 60-percent of EMI’s post-acquisition employees, which would make it more appealing to potential buyers.
Sony’s administration agreement will end in 2018, meaning a sale would be possible as early as the end of 2017. Sony Corp acquired the 50-percent of the company not owned by Sony/ATV from the Jackson Estate for $750 million last year.
If Sony wanted to guy out other investors in EMI Music Publishing, it would have to come up with $2.1 billion.
Bandsintown Extending Music Listings to Venues and Festivals
Live music discovery service Bandsintown announced it will open up listings to venues and festivals.
According to Engadget, this will help concert venues better target campaigns to nearby fans. The feature will allow them to set up official pages and change event details as necessary rather than waiting to announce a new gig or make a last-minute change. Fans will also be able to discover gigs they would not otherwise know about just by visiting the venue page.
Currently, Bandsintown only has a little over 500 venues signed up for the beta version of this feature, with the public launch set for December 15.