Welcome to "Tune-In," Enharmonic Magazine's new monthly industry news recap! Each month, we'll bring you the latest headlines, key events, and significant trends shaping the music industry. From innovative product launches and cutting-edge technology trends to hot company rivalries and industry-shaking news, "Tune-In" is here to keep you in the loop with everything happening on the business side of the music world. Dive into our first edition for the freshest updates and insights.
June was a busy month for the music industry, bursting with high-stakes legal battles, major acquisitions, and innovative launches. US record labels took on AI music generators in a dramatic showdown, while Spotify rolled out a new Basic plan without audiobooks. Sony Music made waves with a £1 billion acquisition of Queen's iconic catalog. Warner Music's CEO weighed in on AI's challenges with metadata, and the company teamed up with Styngr to bring its tunes to Roblox users. And O-M-G Ariana is on Weverse? Amidst all this, the fiery feud between Drake and Kendrick Lamar kept everyone on their toes. Stay tuned with "Tune-In" for an exciting dive into these developments! Here are some of the headlines we thought were interesting.
"US Record Labels Sue AI Music Generators Suno and Udio for Copyright Infringement"
On June 24, 2024, Kate Knibbs of WIRED reported that the Recording Industry Association of America (RIAA) and major labels, including Universal, Warner, and Sony, sued AI music generators Suno and Udio for copyright infringement.
The lawsuits, filed in Massachusetts and New York, claim the AI companies trained their models on copyrighted songs without permission, seeking up to $150,000 per infringed work. The AI-generated music allegedly closely mimics songs by artists like Chuck Berry and Mariah Carey. RIAA CEO Mitch Glazier condemned the companies for exploiting artists' work without consent or compensation. Suno’s CEO, Mikey Shulman, defended their technology, stating it generates new content.
"Spotify launches new Basic plan in the US, audiobooks excluded"
Also on June 24, 2024, Mandy Dalugdud of Music Business Worldwide reported that Spotify has launched a new Basic plan in the US, excluding audiobooks. The Basic plan, priced at $10.99 per month, offers ad-free music streaming without the 15 hours of audiobook access previously included in the Premium plan, which now costs $11.99. This change comes after criticism that bundling music and audiobooks negatively impacted songwriter compensation. The new Basic plan aims to cater to users who prioritize music over audiobooks while providing a more affordable option amid rising streaming service competition.
"Drake & Kendrick Lamar’s Rocky Relationship Explained"
On June 20, 2024, Carl Lamarre of Billboard provided a detailed timeline of the feud between Drake and Kendrick Lamar. The rivalry began in 2011 when they first collaborated, but tensions escalated in 2013 after Kendrick's verse on Big Sean's "Control" called out Drake and other rappers. Over the years, both artists exchanged subtle and not-so-subtle diss tracks. In 2024, Kendrick reignited the feud with a scathing verse on Future and Metro Boomin's album, leading to a series of diss tracks from both sides. The ongoing battle has seen both rappers addressing personal issues and taking shots at each other's careers and personal lives.
"Queen Catalog to Be Acquired by Sony Music for £1 Billion"
On June 19, 2024, Jem Aswad of Variety reported that Sony Music is set to acquire Queen's music catalog for £1 billion (approximately $1.27 billion). The deal, which excludes revenue from live performances, involves classics like "Bohemian Rhapsody" and "We Will Rock You."
Queen’s catalog, considered one of the most valuable in rock history, continues to generate significant revenue, partly due to the success of the 2018 biopic “Bohemian Rhapsody.” As the group are still performing, the deal reportedly doesn't include any money related to live performances.
"WMG partners with Styngr to bring its catalogue to Roblox users"
On June 18, 2024, Joe Sparrow of Music Ally reported that Warner Music Group (WMG) partnered with Styngr to bring its music catalog to Roblox users. The collaboration introduces "Batteries," purchasable in-game items that power the Boombox product, allowing users to listen to ad-free radio stations featuring top artists. Users can buy "Single Listening Batteries" for curated weekly radio stations and "Party Batteries" for social listening with up to four players. This partnership offers monetized playback in virtual environments and connects artists with new audiences. Roblox developers can also earn revenue by incorporating Batteries and Boombox into their games.
"Ariana Grande Joins HYBE's Superfan Weverse Platform"
On June 16, 2024, the Editorial Team at VOI reported that pop star Ariana Grande has joined Weverse, a superfan platform owned by HYBE, the entertainment company managing BTS. Weverse allows artists to interact with fans through posts, live broadcasts, and merchandise sales, featuring machine translation in 15 languages.
Ariana Grande signed a partnership with HYBE America, which also manages Justin Bieber and The Kid LAROI, and will continue to collaborate with her cosmetic brand, REM Beauty. This move follows Grande's separation from her longtime manager Scooter Braun, now CEO of HYBE America.
Warner Music CEO Says Metadata Problems Make the Industry More Vulnerable to AI — ‘It Takes the Teeth Out of Things’"
On June 14, 2024, Ashley King of Digital Music News reported that Warner Music CEO Robert Kyncl highlighted metadata issues as a significant vulnerability to the music industry in the face of AI technology during his keynote at the NMPA Annual Meeting. Kyncl noted that improper metadata matching hinders accurate revenue collection for artists, stressing the need for industry-wide collaboration to resolve these issues. He emphasized the importance of correct ownership information for AI platforms to prevent misuse and ensure fair compensation. Kyncl outlined Warner’s dual goals regarding AI: protection of human creativity and exploring beneficial AI applications.
"Recorded music industry revenues flat in 2023 … but then inflation. (RIAA)"
Also on June 14, 2024, Brad Hill of RAIN News reported that the U.S. recorded music industry experienced flat revenue growth in 2023, as per the Recording Industry Association of America (RIAA). Paid music subscriptions continued to rise, but at a slower rate, while digital downloads saw a significant decline, dropping from $650 million to $434 million. Despite the overall revenue holding steady, inflation has impacted the real value of these earnings. The RIAA's data underscores the dominance of streaming in the U.S. music market, although the industry faces challenges in adapting to changing consumer behaviors and economic pressures.
"Billboard Latin Women in Music 2024 Special on Telemundo Delivers Record-Breaking Engagement"
Yet another amazing thing happened on June 14, 2024! Griselda Flores of Billboard reported that the second annual Billboard Latin Women in Music special delivered record-breaking engagement. Airing on Telemundo on June 9, the two-hour show saw a 541% increase in engagement over the previous year, with 61 million interactions across television, digital, Peacock, and social media, and a total of 109.6 million video minutes watched.
The event was the most-watched show on Spanish-language television in its time slot, outperforming Univision by 43% among adults 18-49 and 65% among total viewers. Honorees included Karol G as Woman of the Year, Gloria Estefan with the Legend award, and Camila Cabello with the Global Impact award. The gala featured standout performances from Ana Bárbara, Kali Uchis, Ángela Aguilar, Kany García, and La India, celebrating excellence and impact in the Latin music industry.
"Twitch DJs will now have to pay music labels to play songs in livestreams"
On June 6, 2024, Lauren Forristal of TechCrunch reported that Twitch has introduced a new program requiring DJs to pay music labels to stream songs during their livestreams. This initiative aims to resolve ongoing copyright issues and avoid DMCA takedown notices that have plagued DJ streamers. DJs can now stream millions of licensed tracks in a new DJ Category, but they must share a portion of their earnings to cover music rights costs. Twitch has partnered with major labels, including Universal, Warner, and Sony, as well as indie labels through Merlin. While the exact fees were not disclosed, Twitch CEO Dan Clancy explained that costs would depend on how a channel monetizes, with non-monetizing DJs not required to pay. Twitch is offering a one-year subsidy and covering 50% of the royalties. Be sure to check out the Twitch DJ Program to be launched later this year. I loved this moment when @iamBrandonTV received a reply from Twitch's account basically revealing the upcoming service.
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