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August has been a hot month for the music industry in terms of acquisitions, staff changes and the launch of new services.  While many were on vacation, the industry has been planning for the future.  Def Jam Records named Eminem’s manager Paul Rosenberg as CEO although he won’t take the position until January. Meanwhile, Apple Music is adding video content to its portfolio with James Corden’s Carpool Karaoke and more, and YouTube Red and Google Play Music have decided to merge. But these weren’t the only industry moves this month…

Undisclosed: The amount French independent record company Because Group purchased most of the old London Records catalogue from Warner Music. Warner had agreed to sell most of its catalogue in 2013 in a deal with Merlin, an indie-label digital-rights agency, and IMPALA, an European indie-label trade group. In exchange, the groups vowed not to oppose Warner’s purchase of Parlophone Music Group. London Records was a subsidiary of Polygram, but was sold to Warner in 1998. Because Group has acquired 10 other catalogues recently as part of Warner’s divestment. Source: Complete Music Update

1.9 billion: The number of Facebook’s active users monthly. It’s also the number of potential users of Facebook’s video platform Watch, which it introduced this month. The platform will host short-form series and originals, and will debut August 28 to a limited number of U.S. users.  The service clearly aims to compete with YouTube, and could as such become a major destination for music video content. Source: Billboard

$4.49: The price of VIP access to new streaming site, Joox, which recently launched in South Africa. Joox is a joint venture between South African media group Naspers and China’s Tencent and will showcase both South African and international artists. Joox is available as a smartphone app and allows users to download music to listen to at a later time. It offers three tiers: free, VIP and $2.25 for two weeks access.  Joox enters a highly competitive South African market dominated by  Apple, Deezer, Google, and Simfy. Source:  Tech Central

$1 billion: The amount the largest movie producer in India, Eros Group, is in talks with Apple to sell its music and film library. The sale also might include its over-the-top content service Eros Now. Talks also are in the works with Amazon and Netflix. If Eros Now is included in the deal, it brings 100 million subscribers, 2.9 million which are paid. Eros will continue to own more than half the rights through Dec. 31, 2025. If Apple purchases Eros, iTunes will be direct competition with Indian music service Saavn. Source: Economic Times

$195 million: The amount of digital revenue in the music industry in China, quadruple the amount in 2012. Globally digital revenue is $7.8 billion. China is the world’s most populated nation, so why do the Chinese contribute so little to the industry? This is because of the 600 million Chinese who use streaming music services, only 20 million have paid memberships. The rest access content for free or illegally. Tencent controls more than 70% of the Chinese streaming market, and although pirated music is on the decline, there are many independent artists who get their start with pirated music before moving on to licensing content.  Source: The Economist


Top photo © Dejan_Dundjerski/GettyImages


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About Author

Melina Druga

Melina Druga is an author and freelance journalist. You can follow her on Twitter @MelinaDruga.

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