From Harmony’s $468.8m Spherical Hill deal to Common and Deezer’s new artist-centric mannequin… it’s MBW’s Weekly Spherical-Up

Welcome to Music Enterprise Worldwide’s weekly round-up – the place we ensure that you caught the 5 largest tales to hit our headlines over the previous seven days. MBW’s round-up is supported by Centtrip, which helps over 500 of the world’s best-selling artists maximize their earnings and scale back their touring prices.

After a comparatively quiet few weeks within the music enterprise over the summer season, this week was something however.

On Wednesday (September 6), France-based music streaming service Deezer and Common Music Group introduced the launch of what they name the “first complete artist-centric streaming mannequin”.

The mannequin will see Deezer attribute what it says is “a double enhance” [i.e double the stream weighting] to  “skilled artists” who’ve a minimal of 1,000 streams monthly by a minimal of 500 distinctive listeners.

One other key aspect of the mannequin: what Deezer calls “non-artist noise audio” will probably be de-monetized.

In the meantime, right now (September 8), Harmony introduced that it’s set to purchase Spherical Hill’s UK-listed royalty fund in an enormous $468.8 million deal.

Additionally this week, a bombshell report arrived in Sweden from the Svenska Dagbladet newspaper about streaming fraud on Spotify. Based on the newspaper, crime networks with hyperlinks to medicine and lethal violence have for years been utilizing the platform for cash laundering.

Svenska Dagbladet helps these claims by citing protected sources – together with 4 precise prison gang members based mostly in Sweden and an nameless police agent.

Plus, Warner Music Group entered right into a JV with Elliot Grainge‘s 10K Tasks, whereas Exceleration Music introduced its acquisition of impartial distribution/companies firm Redeye.

Right here’s what occurred this week…

1) POPULAR ARTISTS TO GET ‘ROYALTY BOOST’ ON DEEZER AS PLATFORM READIES ‘ARTIST-CENTRIC’ MODEL WITH UNIVERSAL MUSIC GROUP

Common Music Group’s proposed ‘artist-centric’ royalty mannequin for streaming companies has been a giant speaking level for the worldwide business this 12 months – although the finer particulars of what the mannequin may entail hasn’t all the time been clear.

This week, that’s all modified. Deezer and UMG have introduced the launch of what they name the “first complete artist-centric streaming mannequin”, designed, in response to the businesses, “to raised reward the artists, and the music that followers worth essentially the most”.

Deezer will launch the mannequin in France subsequent month (October 2023) with extra markets globally to comply with within the new 12 months…

2) CONCORD SET TO BUY ROUND HILL’S UK-LISTED ROYALTY FUND IN A HUGE $468.8M DEAL

Earlier this summer season, MBW reported that Harmony had over USD $550 million in contemporary capital to spend on acquisitions. The corporate’s CEO, Bob Valentine, advised us with confidence: “There are nonetheless alternatives within the market for sizeable acquisitions.”

Nicely, right now (September 8), Harmony has confirmed that it’s on the verge of pulling off one heck of a sizeable transaction.

Alchemy Copyrights, LLC, buying and selling as Harmony, has agreed phrases on a deal whereby it’s going to purchase the whole thing of Spherical Hill Music Royalty Fund (RHM) – the UK-listed fund operated by Spherical Hill Music.

The deal values your complete issued and to-be-issued share capital of RHM – which at the moment trades on the London Inventory Alternate – at roughly USD $468.8 million, the 2 corporations stated in an announcement right now.

Beneath the phrases of the acquisition, Spherical Hill’s scheme shareholders will obtain USD $1.15 per share in money…

3) MULTIPLE CRIMINAL GANG MEMBERS CONFIRM THEY’VE USED SPOTIFY FOR MONEY LAUNDERING IN BOMBSHELL NEW REPORT IN SWEDEN

It’s no secret that streaming fraud exists. It’s a factor of nice concern for the music enterprise, and an enormous problem (aka recreation of whack-a-mole) for music streaming platforms like Spotify to take care of.

Now, an explosive new report from Svenska Dagbladet in Sweden focuses on the tip function of streaming fraud on Spotify for organized criminals: laundering cash.

Based on the newspaper, crime networks with hyperlinks to medicine and lethal violence have for years been utilizing the platform for this function…

4) ELLIOT GRAINGE JOINS WARNER MUSIC GROUP AS 10K PROJECTS STRIKES JV WITH WMG

Warner Music Group has entered right into a three way partnership with 10K Tasks, the Los Angeles-based label based in 2016 by Elliot Grainge.

10K Tasks will change into a standalone label throughout the WMG ecosystem, bringing its roster and staff into the WMG fold.

It’s understood that Warner will personal barely north of fifty% of 10K Tasks because of the deal, with Grainge sustaining practically half of the corporate…

5) REDEYE, DISTRIBUTION PARTNER OF BEGGARS, DOMINO AND OTHER LEADING INDIE LABELS, ACQUIRED BY EXCELERATION MUSIC

Large information on the planet of distribution. Unbiased digital and bodily distribution/companies firm Redeye has been acquired by Exceleration Music for an undisclosed sum.

Redeye represents a number of of the world’s most important impartial labels, within the US and globally, together with Beggars Group, Domino, New West, Yep Roc, Sundazed, Saddle Creek, Mother+Pop, Kemado/Mexican Summer time, Stones Throw, Warp, Drag Metropolis, Actual Gone, Revolutionary Leisure, Carpark, !K7, Thrill Jockey, Luaka Bop, Partisan, Sargent Home, Ninja Tune, Barsuk, and Daptone, in addition to Exceleration’s personal labels.

Based by Tor Hansen and Glenn Dicker, Redeye is headquartered in North Carolina, with a staff of over 120 throughout 15 areas spanning the US, Canada, Europe, the UK and Australia….

MBW’s Weekly Spherical-Up is supported by Centtrip, which helps over 500 of the world’s best-selling artists maximise their earnings and scale back their touring prices.Music Enterprise Worldwide