03
Apr
18

Spotify goes public – an economic background analysis

April 3rd 2018 is a historic moment in the digitized music industry, when the Swedish music streaming company Spotify is listed at the New York Stock Exchange. Spotify’s stock exchange listing is not just a touchstone for the music streaming service’s business model, but for the entire recorded music industry that is back on a path of growth. Spotify is the darling of the big music industry players. It provides a legal business model that can be monetized by hefty advances and royalty payments. This allowed the music majors and the indie label licensing agency MERLIN to become Spotify’s shareholders in return for advance payments Spotiy could not afford. Sony Music Entertainment’s Spotify stake of 5.7 percent (Spotify 2018: 148) e.g. is worth US $500m to 1.3bn.[1] The following analysis highlights Spotify’s success story, but also outlines potential risks of going public. It also analysis who benefits from Spotify’s stock exchange listing and assesses the impact on the music streaming market.

Continue reading ‘Spotify goes public – an economic background analysis’

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05
Mar
18

Music Majors in the Streaming Economy: Warner Music Group

In its last annual report Warner Music Group (WMG) exhibited a total revenue of US $3.58bn – the highest since the recorded music company was sold by Time-Warner to the Investor Group in 2003. Although overall costs also increased to US $3.15bn (WMG 2017: 38-39), the operating income is remarkably high with US $222m (WMG 2017: 40) especially compared to the disastrous results of the early 2000 years with annual losses of about 1 billion US$. The main driver of the revenue growth is the music streaming boom. In the recorded music segment streaming revenue increased by US $434m to US 1.34bn in the fiscal year ending on September 30, 2017. The music publishing segment contributed a further increase of US $58m of streaming revenue (WMG 2017: 36). Thus, WMG earned almost US $500m more with music streaming in 2017 compared to 2016. The further analysis highlights how the music major’s business model has shifted to the music streaming economy.

Continue reading ‘Music Majors in the Streaming Economy: Warner Music Group’

31
Jan
18

Artists in the Music Stream – A Case Study

On 24 January 2018 the Latin superstar Enrique Iglesias filed a lawsuit against Universal International Music for “systematically underpaying streaming royalties” (complaint, Enrique Iglesias vs. Universal International Music, January 24, 2018). The lawyers of Iglesias argue that Universal Music should have paid 50 percent of the net revenue from the streaming services. Instead Iglesias was paid just a fraction of the royalties according to the rate agreed for physical and download albums. This remarkable case sheds light into the contractual practices in the recorded music industry and helps to explain, why artists contracted to record labels does not really benefit from the music streaming economy yet.

Continue reading ‘Artists in the Music Stream – A Case Study’

31
Dec
17

Music Business Research 2017 – in retrospective

Dear readers of music business research blog,

The music streaming boom dominated 2017. Market statistics highlight that music streaming revenue has become the most important income stream for the phonographic industry. The US figures for 2016 highlight a tremendous shift from selling music (CDs and downloads) to accessing music (by streaming services). In the US, music consumers paid for the first time more for music access by ad-supported and paid streaming services (US$ 3.9bn) than for CDs, music downloads and ringtones (US$ 3.5bn). In the UK, the massive growth of music streaming revenue also increased overall recorded music sales in 2016. Gains of £103m in the music streaming segment, thus, compensated not just for the loss of £5.8m of physical sales, but also for the £56m decrease in download sales in a year-to-year comparison, as a long-term analysis of the UK recording sales indicates. We can, thus, expect a further massive growth of music streaming revenue in 2017 also on markets with a still strong physical segment such as Germany.

Continue reading ‘Music Business Research 2017 – in retrospective’

07
Dec
17

Call-for-papers: 9th Vienna Music Business Research Days, September 12-14, 2018

The 9th Vienna Music Business Research Days will be held at the University of Music and Performing Arts Vienna, Austria, from September 12 to 14, 2018.

Music Business Research is an inter-discipline at the intersection of economic, artistic, cultural, social, legal, technological and further developments which contribute to the creation/production, dissemination/ distribution and reception/consumption of music. This interdisciplinary nature calls for methodological multiplicity and is open to scholars from all scientific areas.

The conference organizers invite scholars (from the postdoctoral level on) who have a research focus on music business/industry related topics to submit a paper proposal for the conference day on September 13, 2018 (CfP in pdf-format).

Scholarly submissions on this year’s conference theme “Music Life is Live” or other aspects of music business research are welcomed.

Indicative themes, include, but are not limited to:

  • Past, current and future developments in the music industry (recorded / live / publishing / retailing / wholesaling, etc.)
  • Economic and historic analyses of music markets, charts or audiences
  • Issues in marketing and/or branding music, musicians or music institutions
  • Aspects of musical and musician diversity in music business
  • Critical discourses on the economic, social and cultural contributions of (live) music
  • New products, formats and business models in the music sectors
  • Strategies and strategizing of musicians and music institutions
  • Situatedness and power in musician labor markets
  • Agency and social practices in the music business
  • Legal issues in the music business (contracts, copyright, policies) from an international perspective
  • Fit for the market? Acquiring skills for the music business
  • Doing things right. New solutions for fairness and transparency in the music business
  • Entrepreneurial musicians und music entrepreneurs
  • An age of disruption? Technological developments in the music industry

 

Submission

Please send an abstract of your proposal to vmbrdays@gmail.com no later than April 9, 2018.

All submissions must include a title, authors (names, affiliations, e-mails of all authors and a notation (*) of the corresponding author), an abstract of 1,000-1,500 words and 3-5 keywords. Abstracts must be submitted in English, as a MS Word file (*.doc or *.docx) or *.pdf file, and include:

  • Objectives of the research
  • Brief description of the disciplinary/theoretical context/background
  • Research questions and/or hypotheses
  • Methodology
  • Main or expected conclusions / contribution
  • Main references

Abstracts will be subject to a double-blind peer-review process by an international jury, and authors will be notified of acceptance by May 15, 2018.

Final papers should not exceed 7,000 words (including abstracts, figures, tables, references and appendices) and follow the author guidelines of the International Journal of Music Business Research (IJMBR). The best paper will be offered publication in IJMBR.

 

Important dates

April 9, 2018                    Abstract submission deadline

May 15, 2018                  Notification of acceptance

July 31, 2018                   Submission deadline for full papers

September 13, 2018       Conference day

September 14, 2018       Conference day for invited speakers on “Music Life is Live.”

For students at all levels of the MA & PhD a doctoral colloquium (8th Young Scholars’ Workshop) will be held as part of the 9th Vienna Music Business Research Days on September 12, 2018. Find a separate call for papers here.

 

Registration Fee

The registration fee includes conference attendance, reception, coffee breaks and lunch on conference days as well as the Heurigen-Dinner on September 14, 2018.

Registration fee – early bird (until July 31, 2018):              175,- Euro

Registration fee:                                                                 225,- Euro

End of registration (no refund after this date):                 August 31, 2018

 

Contact

Dagmar Abfalter (mailto: vmbrdays@gmail.com)

Department of Cultural Management and Gender Studies (IKM)

University of Music and Performing Arts, Vienna

Anton-von-Webern-Platz 1, 1030 Vienna, Austria

Tel.: +43-1-71155-3418  /  Fax: +43-1-71155-3499
https://musicbusinessresearch.wordpress.com/vienna-music-business-research-days-2/

 

 

07
Dec
17

Call-for-papers: 8th Young Scholars’ Workshop of the 9th Vienna Music Business Research Days 2018, September 12, 2018

The Young Scholars’ Workshop, as part of the 9th Vienna Music Business Research Days (Vienna, Austria), invites once again young researchers to submit paper abstracts of all disciplines exploring questions that help understand economic and managerial problems as well as processes of the music business sector and in the field of music management. There are many questions that call for investigation and need to be discussed in music business research, for example:

  • What drives innovation in the music business sector?
  • How can we scientifically understand and differentiate music business models?
  • What do we know about critical success factors? Have success factors changed over time – and has music business (entrepreneurship) changed in general?
  • What rationalities affect this very “personal” industry?
  • What does it mean to be self-managed in the music business?
  • What can we learn about the customer’s willingness to pay for music recordings or related goods?
  • Who will control the future music market, e.g., startups or Apple?
  • How can we understand the role of brands and the music industry?
  • And how can music business research support efforts for innovative business models?
  • What issues of gender, class or “race” exist in a music business context? How are they dealt with?

 

These research questions are not exhaustive, papers may also address other aspects.

The workshop organizers Prof. Dr. Carsten Winter (Hanover University of Music, Drama and Media) and Prof. Dr. Peter Tschmuck (University of Music and Performing Arts Vienna) strongly encourage submissions from students at all levels of MA & PhD. Students are supposed to work on their MA or PhD thesis and discuss it with senior researchers of music business research.

Abstracts (of about 1,000 characters) are due by April 9, 2018, and full papers (15-30 pages) are due by July 31, 2018. Only abstracts and papers submitted on time will be considered.

A maximum of 6-8 papers will be selected for presentation to guarantee a workshop atmosphere. The sessions will combine paper presentations and discussions including interactive elements. Information on the acceptance of the paper proposal will be sent until May 15, 2018, at the latest.

Please email your submission to youngscholars@imbra.eu

Paper proposals and final papers must be submitted as pdf documents and should include contact information, at least affiliation, e-mail address, telephone number and postal address of the author(s). Find der pdf version here.

For researchers on the post-doc level a separate call-for-papers for the conference track day on September 13, 2018 can be found here.

 

Organized by

 

 

 

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24
Nov
17

This Is What Post-IPO Life Will Look Like For Spotify

Some thoughts of Mark Mulligan on Spotify’s expected stock listing next year …

Music Industry Blog

With a fair wind, Spotify’s long-anticipated public offering should happen before the end of Q2 2018 (and yes, probably a direct listing rather than an IPO but ‘IPO’ worked better in the title!) . The music industry will be watching with keen interest as it is going to be the bellwether for the streaming music sector. Posting three or four successive quarters of well-received earnings will be key to Spotify’s life as a public company. Note my careful use of words, ‘well-received earnings’, not ‘strong earnings’. Spotify’s currently challenged underlying financials are not going to change in any fundamental sense over the course of nine to 12 months, so it will need to construct a series of narratives and targets that Wall Street will buy into. The only problem is, Wall Street often has very high expectations for growth stage tech stocks, and falling short of those expectations can result…

View original post 969 more words




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