Exploration Weekly - Youtube Music “Most Adopted Music Streaming Service” in Q2 / Majors Want US Supreme Court to Intervene in Cox Case / German Court Issues Injunction Against Streaming Manipulation Site

YouTube is enormous! The network spans all corners of the earth, is generating healthy revenues, has more people listening to music on it than all other music services combined...and it’s growing exponentially!

Given the scale and multitude of relationships that exist between rightsholders, data distributors, collection organizations, and creators it is obviously very complex. This unique mixture creates incredible opportunities and challenges for all.

To take advantage of the full power of YouTube, one needs a strong foundational understanding of how the music business and YouTube work in addition to the small, yet important, details.

That is why we wrote this guide - to empower one with the building blocks to stay informed.

Check out some of our other guides on music industry topics at Exploration Learn, or subscribe to our YouTube channel for more information.

In this newsletter:

• Youtube Music Emerges as “Most Adopted Music Streaming Service” in Q2: Kantar
• The Majors Also Want the US Supreme Court to Intervene in the Cox Case
• German Court Issues Injunction Against Streaming Manipulation Site, Rules It “Liable for Damages” to Record Labels
• Spotify Says Anime Music Surged 400% Since 2021—New Deal with Crunchyroll Announced

YouTube Music was named the most adopted music streaming service in Q2 2024 by Kantar’s research, driven by increased interest in non-music audio formats like podcasts and audiobooks.

The major record companies have asked the US Supreme Court to intervene in their dispute with Cox Communications. They had been set to receive a billion dollars in damages, but an appeals court ruling could see that figure slashed. The majors want the appeals ruling reversed.

A German court has issued an injunction against the streaming manipulation site Pimpyourfollower.de, banning it from selling artificial plays, views, likes, and followers on major music platforms.

Now, the details...

Exploration Weekly - August 23, 2024
Compiled by Ana Berberana

Youtube Music Emerges as “Most Adopted Music Streaming Service” in Q2: Kantar

YouTube Music has claimed the top spot as the “most adopted music streaming service” in the second quarter of 2024, according to new research from marketing data and analytics company Kantar. The firm’s latest Entertainment on Demand (EoD) report, published August 14, highlighted a surge in music streaming adoption, boosted by increasing appetite for non-music audio formats like podcasts and audiobooks. The data was collected from streamers in the UK, US, Australia, Germany, Spain, and France between April and June 2024. “There’s a significant opportunity to engage older demographics who are less involved but show considerable potential. The challenge lies in convincing these audiences of the value of paid subscriptions,” said Craig Armer, Global Strategic Insight Director at Kantar. While Kantar’s research indicated that 85% of non-streamers expressed interest in listening to music, concerns about subscription costs remain a major barrier to consumers subscribing. “With many non-streamers interested in music but hesitant due to costs, services should focus on harnessing recommendations from satisfied users to attract this untapped audience,” added Armer. In an EoD report in 2023, Kantar attributed YouTube Music’s strength to its focus on music discovery. The firm says this has translated to strong growth in 2024 for both YouTube Music and YouTube Music Premium.

The Majors Also Want the US Supreme Court to Intervene in the Cox Case

The major record companies have asked the US Supreme Court to intervene in their legal battle with American internet service provider Cox Communications. Facing the prospect of their billion dollar damages award being slashed because of an appeals court judgment, the majors have asked the Supreme Court to rule on what exactly is meant by the principle of ‘vicarious copyright infringement’. Vicarious infringement applies when a company has profited from someone else’s direct copyright infringement, but there is - unsurprisingly, given the amounts of money at stake - a big disagreement between Cox and the majors over exactly what is meant by ‘profited’ in that context. The majors argue that if an ISP sells an internet access package to a customer who it knows is pirating music, then it is profiting from that customer’s illegal conduct, and should therefore be liable for vicarious infringement. Cox counters that for vicarious infringement to apply, it would need to be directly profiting from the piracy itself, not from selling an otherwise legitimate service that is then used to commit piracy. The Virginia district court originally found Cox liable for vicarious infringement, but when Cox took the case to the Fourth Circuit Appeals Court, the judges there opted for the narrower definition put forward by the ISP. If the majors’ plea to the Supreme Court is not successful, then this will force a recalculation of the damages due to the majors when the case returns to the district court. In the new filing with the Supreme Court, the music companies say that the conclusion of the Fourth Circuit was “wrong on the merits” and “inconsistent with the Supreme Court’s precedent”.

German Court Issues Injunction Against Streaming Manipulation Site, Rules It “Liable for Damages” to Record Labels

A coordinated effort between the global recording industry group IFPI and its German counterpart, BVMI, has led to a legal victory, with a German court ruling against the “streaming manipulation” service Pimpyourfollower.de. The Düsseldorf Regional Court issued an injunction that bans the service from offering users the ability to purchase artificial plays, views, likes, and followers across major online music platforms, including SoundCloud, Spotify, and YouTube. The ruling also holds the service liable for damages incurred by the record labels that initiated the lawsuit, IFPI said Friday (August 16). This marks a global first in the fight against streaming manipulation, potentially setting a precedent for similar cases worldwide. “There is no place for streaming manipulation in the music industry. It’s a fraudulent practice and those who engage in it, or support it, should not be allowed to divert revenue away from creators or distort music fans’ experience of listening to and supporting artists,” said Victoria Oakley, CEO, IFPI. “We continue to work on behalf of our member record labels to prevent this activity and hope that this new success in Germany sends a clear message to those who continue to offer these damaging services.” The Pimpyourfollower.de domain currently redirects to a website called Ratinghero24.de, which promises “real followers” for Instagram, Threads, YouTube, TikTok, Spotify and other platforms, in exchange for payment.

Spotify Says Anime Music Surged 400% Since 2021—New Deal with Crunchyroll Announced

One of the fastest growing genres of music on Spotify over the last few years has been anime. Spotify says anime music streams have grown 395% since 2021—now there’s a Crunchyroll deal to capitalize on the interest. Spotify says anime fans on the platform have generated 6.7 million user-generated anime playlists—proving fans love creating their own anime music mixes. Spotify has teamed up with Crunchyroll to deliver more music in its new Anime Hub, with new playlists curated by Crunchyroll. Capitalizing on several anime tropes, these playlists are intended to capture a specific feeling for listeners. As part of the new deal with Crunchyroll, Spotify has created a dedicated shelf of content featuring its premiere podcast, ‘Crunchyroll Presents: The Anime Effect’ which covers the latest anime news and will feature guest stars who love anime. “We are thrilled to partner with Crunchyroll to bring listeners a new curation of anime music to explore,” says Kyota Onishi, Head of Music in Japan at Spotify. “On Spotify, global streams of anime have surged over the last few years, and we hope the Anime hub will become an indispensable part of anime culture.” The Anime hub will also include an editorial lineup of playlists including Anime Now, Anime On Replay, and Women of Anime.

Random Ramblings

• Mozart and the digital twin for music.
• Billie Eilish overtakes The Weeknd as Spotify’s biggest artist.
• Amazon Music launches a ‘Listening Party’ activity on Discord.
• Coldplay’s Music of the Spheres World Tour is the biggest rock tour of all time.