Exploration Weekly - Spotify Launches Noteable / TikTok and UMG Ink Global Licensing Deal / Music Biz Generates Additional 50 Cents for US Economy

“Sometimes it may seem dark, but the absence of the light is a necessary part.”

Jason Mraz, Love Is a Four Letter Word

Spotify is set to launch a new site called Noteable, dedicated for writers and composers to receive news updates on relevant products and services as well as chances to connect. The company created a songwriters hub last December on its service and provided publishing analytics and songwriter profile pages to its Instagram video series over the last couple of years.

After striking deals with Sony Music in November and Warner Music Group in December, video app TikTok announced a global licensing deal with Universal Music Group (UMG) this week. As a result, TikTok users will now be able to incorporate clips from UMG’s full catalog of music. The news immediately follows Universal pulling its catalog from TikTok’s biggest rival, Triller.

According to a new economic impact report released this week by the RIAA, the US music industry’s total impact on the country’s economy grew to $170 billion in 2018, generating an additional 50 cents of revenue on every dollar earned for adjacent industries such as tourism, hospitality and marketing. It “charts a course for state and federal policymakers to leverage music’s ability to produce strong economic growth and high-paying domestic jobs,” said Josh Friedlander, senior vp research and economics at the RIAA.

In this newsletter:

Spotify Launches Noteable Website Gathering Songwriting Resources
TikTok and Universal Music Group Sign Global Licensing Deal
Every Dollar Earned by Music Biz Generates Another 50 Cents for US Economy: Study
As Streaming Dominates the Music World, Is Radio’s Signal Fading?
Vaccine Boosts Demand for In-Person Shows: Five Key Insights from New COVID-19 MRC Data Report

Now, the details...
Compiled by Heidi Seo

Exploration Weekly - February 12, 2021

Spotify Launches Noteable Website Gathering Songwriting Resources

Spotify is launching a dedicated site, called Noteable, for writers and composers to “get the latest news — whether it’s updates on relevant products and services, new programs or video resources, or just chances to connect”. The site comes with its own newsletter and social accounts, and is a way to tie together the various strands of work Spotify’s songwriter and publishing relations team has been doing over the last couple of years, from publishing analytics and songwriter profile pages to its songwriter-focused video series on Instagram. Last December, the company launched a songwriters hub on its service, gathering playlists and podcasts by or about the songwriting community.

TikTok and Universal Music Group Sign Global Licensing Deal

ByteDance-owned video app, TikTok, revealed that it has struck an “expanded” global licensing agreement with Universal Music Group (UMG), after announcing deals with Sony Music in November and Warner Music Group in December. The timing of the announcement comes just days after UMG pulled its catalog from TikTok’s biggest rival, Triller, with Universal accusing that platform of withholding payments to UMG artists. The new deal covers recorded music from artists at UMG’s labels and songwriters with Universal Music Publishing Group (UMPG). As a result, TikTok users will now be able to incorporate clips from UMG’s full catalog of music. Last year, TikTok inked deals with Merlin and Paris-based Believe, plus Pan-European licensing hub ICE and Dutch Collecting Society Buma/Stemra. In July, the platform also announced a deal with a range of music publishers, via an agreement with the US-based National Music Publishers Association (NMPA).

Every Dollar Earned by Music Biz Generates Another 50 Cents for US Economy: Study

The RIAA released a new economic impact report this week, stating that the US music industry’s total impact on the country’s economy grew to $170 billion in 2018, generating an additional 50 cents of revenue on every dollar earned for adjacent industries such as tourism, hospitality and marketing. Music industry revenues in 2018 were $113 billion - of which employee earnings were over $88 billion. Directly and indirectly, “total music supported employment” rose from 2.08 billion in 2015 to 2.47 billion in 2018, according to the report.

As Streaming Dominates the Music World, Is Radio’s Signal Fading?

Music executives evaluate traditional radio’s place in the music industry as streams now account for 85% of US labels’ music revenue and other newer media are finding favor with consumers. AM/FM radio still owns the largest piece of America’s audio pie, according to Edison Research. Its 2020 “Share of Ear” report says terrestrial radio accounts for 39% of audio consumption among those 13 and older, compared to 18% clocked by streaming services, second among all audio segments, including podcasts, satellite radio and owned music. However, a MusicWatch report that focuses solely on music listening — excluding time spent listening to news/talk radio, podcasts and other non-music fare — found that streaming led all sectors in the fourth quarter of 2020 with a 33.2% share, compared to traditional radio, which ranked second with a 15.9% share. In fact, MusicWatch market research shows streaming outperforming radio in each of the last five years.

Vaccine Boosts Demand for In-Person Shows: Five Key Insights from New COVID-19 MRC Data Report

According to the ninth installment of MRC Data’s survey series COVID-19: Tracking the Impact on the Entertainment Landscape, music fans are warming up to the idea of in-person events with a vaccine in-market, and most will continue to livestream virtual concerts even when physical touring resumes. Other key insights from the study include consumers hitting an entertainment plateau and music fans seeking more tunes that lift their mood. Data for the survey was collected from January 4 to January 11 from a representative sample of 1,042 U.S. consumers ages 13 and up.

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