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Global music piracy crept up in 2022, marking the second straight year it has increased after a period of steady decline, according to a report from MUSO, a U.K. technology company. MUSO, which tracks consumption across websites around the world to “to understand the true picture of digital piracy,” logged more than 15 billion visits to music piracy sites in 2022.
Piracy has been a thorn in the music industry’s side for more than two decades. In recent years, however, the widespread adoption of streaming has led to a steep drop in the types of peer-to-peer and file-sharing behavior that once threatened to bring the music business to its knees.
In a world driven by streaming, rather than downloads or CD sales, the industry is increasingly focused on a different set of issues. Key among them is streaming fraud, which is not driven by fan’s desire to have more music at their fingertips. Instead, this activity often involves bad actors siphoning money away from the music business — by running bot networks that play 31-second white-noise recordings nonstop on Spotify, for example.
Growth in streaming revenues shows signs of slowing, meaning that every dollar that leaks out of the music ecosystem is becoming more important to labels. And MUSO’s report shows that piracy, even if it has faded from headlines, isn’t negligible.
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For example, Justin Bieber‘s songs, albums, or “music bundles” — which could include an entire discography — were illegally downloaded over 1 million times across the peer-to-peer/torrent network in 2022, for example, with more than 40% of those downloads coming from the U.S. MUSO detected more than 950,000 illegal downloads of David Bowie‘s music, more than 780,000 across Bruce Springsteen’s catalog, and more than 750,000 involving Bob Dylan releases.
The U.S. accounts for 7% of all piracy traffic picked up by MUSO, third only behind Iran (15.05%) and India (10.29%). Despite the prevalence of streaming among U.S. listeners, their appetite for piracy far outpaces their peers in other major music markets like the U.K. (1.86% of piracy traffic) and Germany (1.92%). And more than half of all the piracy in the U.S. takes place via stream-ripping, which relies on programs to get around YouTube’s copyright protection and convert audio into MP3s.
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In 2019, the RIAA said it was monitoring more than 200 stream-ripping sites. Labels have taken legal measures to go after some of these: In December 2021, a U.S. judge ordered a pair of Russian sites to pay more than $80 million — $50,000 for each of the 1,618 copyrighted works infringed — in damages. The judge wrote that 1,618 was “likely on the low end of Defendant’s indeterminable number of violations.” Tofig Kurbanov, the owner of the sites, subsequently appealed the ruling.
RIAA chief legal officer Ken Doroshow said at the time that “this litigation sets out vital first principles that should chart a path for further enforcement against foreign stream-rippers and other forms of online piracy that undermine the legitimate market for music.” The ruling, he said, “is a major step forward to protect artists, songwriters, record labels, and consumers from one of the most pernicious forms of online piracy.”
Despite the judgement, MUSO’s data indicates that stream-ripping remains the most prevalent form of piracy in the U.S., accounting for more than half of piracy demand in the country (51.3%). This is well above the global average, which MUSO found to be 33.4%.
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Overall, music piracy has fallen by more than half since 2017, according to MUSO. But the company predicts another small rise in 2023.
“For the Film and TV sectors, MUSO’s data indicate that piracy demand will continue to increase across 2023, as inflationary and economic pressures result in subscriber losses for the various legal streaming services,” the company’s report notes. “This will drive users to illegally stream or download the content they want to watch via piracy sites. MUSO does anticipate seeing a similar uptick in music piracy across 2023,” but one that will be “less marked than [in] other industries.”
The Cadillac Three members Jaren Johnston and Neil Mason have teamed with Warner Records via a joint venture to launch the Nashville-based label War Buddha Records.
The first signing to the venture is Los Angeles-based singer-songwriter Rett Madison, who recently wrapped a run of shows with St. Paul & The Broken Bones and is slated to play during SXSW 2023.
“As artists ourselves, we created War Buddha first and foremost as a home for artists,” Johnston said via a statement. “In partnering with our longtime friend Aaron Bay-Schuck, alongside Tom Corson and the stellar Warner Records team, we saw the opportunity to mix our dirt with Warner’s power to create a venture fostering both creative expression and commercial success.”
“We want the label to offer a platform for artists with unique perspectives who fit out, not in, and feel unafraid to tell their stories unapologetically,” Mason added. “Rett is the perfect first signing for the label: an artist with the incredible ability to capture life experiences in songs that make the listener feel they are in those moments with her. We’re so grateful to Aaron and Tom for the chance to build this label together.”
Nashville natives Johnston and Mason, along with their The Cadillac Three cohort Kelby Ray, have released albums via Big Machine Records including 2016’s Bury Me in My Boots, and a pair of 2020 projects, Country Fuzz and Tabasco and Sweet Tea. As songwriters, Johnston has written songs recorded by artists including Tim McGraw (“Southern Girl”), Keith Urban and Eric Church (the duet “Raise ‘Em Up”). Mason has written songs recorded by artists including Miranda Lambert (“Old Sh*t”), and Jake Owen (“Days of Gold”).
“For as long as I have known Jaren and Neil, they have never taken a conventional path,” said Bay-Schuck, co-chairman & CEO of Warner Records, via a statement. “They’ve been fearless in their pursuit of great art, never compromising any integrity or authenticity in their approach to their own artistry or collaborations as songwriters and producers for other artists. As we continue to build the Warner Records brand as one that is always a safe and encouraging place for artists who dare to be different, take risks, and have a point of view, it made total sense to partner with War Buddha on their mission to do the same. We are very excited to welcome Rett Madison as the first artist from this partnership and we can’t wait to see what other unique and amazing talent Jaren and Neil discover.”
“I couldn’t be more thrilled to be joining the Warner Records family with War Buddha!” Madison said. “I’ve felt such genuine enthusiasm from Neil and Jaren in regards to my music and their total support of me sharing my most authentic, artistic voice feels refreshing. I can’t wait to see what we all build together.”
SoundCloud named Eliah Seton as its new CEO, the company announced today (March 9). Seton, who has served as president of the company since 2021, replaces Michael Weissman, who is leaving the company “for a new opportunity,” according to a press release.
Simultaneously, the company announced that Union Square Ventures founder Fred Wilson has been named chairman of the board. Wilson, who has been on the board at SoundCloud since 2011, replaces company founder and former CEO Alexander Ljung, who will be taking a new role as chairman emeritus and remain a member of the board.
“As the only platform with direct relationships with artists and fans at scale, SoundCloud has a singular opportunity to forge the future of the music industry by unlocking the full power of fandom,” Seton said in a statement. “I am grateful to Mike for our partnership, to Fred and the board for their confidence and thrilled to work alongside our incredible leadership team to realize that vision.”
Seton joined SoundCloud from the Warner Music Group, where he spent a number of years first working for former WMG CEO Stephen Cooper, then as senior vp of strategy and operations for Warner International, before moving to ADA, eventually being named president of independent music and creator services for the major label. He moved to SoundCloud in 2021 during a shakeup of the company, during which Weissman moved into the CEO role and SoundCloud began an evolution from an indie-focused streaming service towards a hybrid organization that now offers label and artist services, as well as distribution, audience insights and a growing roster of artists and partnerships.
During that period, SoundCloud also rolled out a fan-powered royalties initiative, which switched up how independent creators got paid on the platform, and Seton led the deal that brought Warner Music artists into the fan-powered royalties fold. In August, the company laid off 20% of its global staff while it pursued a different strategy amid the advertising-affected market, though in December it announced its revenue grew 19% in 2021, according to financial statements published in Germany. In the past year, SoundCloud has inked joint ventures with Quality Control’s management wing Solid Foundation and Atlanta-based management and services company Third & Hayden, and partnered with artists such as Lil Pump, Tekno and Aly & AJ, among others.
Wilson replaces Ljung as chairman, who originally founded the company and was its CEO from 2007 to 2017, at which time Kerry Trainor took over as CEO and Weissman as COO. According to a press release, Ljung will “remain closely engaged and available to the company’s management team and employees going forward.”
“I have served on SoundCloud’s board for more than a decade and can honestly say that I have never been more excited about the direction and leadership of the company,” Wilson said in a statement. “Eliah’s passion for the business of music, relationships and vision are exactly what is needed for the next phase of SoundCloud’s growth. On behalf of the board, I want to thank Mike for his leadership, dedication and partnership over the past several years and welcome Eliah to this new role.”
Opry Entertainment Group (OEG) has made a minority investment in country music lifestyle brand Whiskey Riff in an effort to draw a younger audience to its properties.
OEG, which counts the Grand Ole Opry, Ryman Auditorium, WSM Radio and the Blake Shelton-inspired Ole Red slate of restaurants/music venues among its portfolio, plans to use the alignment with Whiskey Riff to reach a younger demographic, attract new audiences to its brands, develop a stronger digital presence and further support emerging artists.
“They have created a really compelling brand, one that has built an incredibly loyal following,” says Mark Fioravanti, president and CEO of Ryman Hospitality Properties of Whiskey Riff. “They attract a younger demographic, and this gives us another way to connect our brands and the artists we support with younger fans.”
Fioravanti declined to comment on the specific percentage invested in Whiskey Riff or if OEG plans to increase its ownership stake in Whiskey Riff in the future.
Created by Steve Gazibara and Wes Langeler in 2015, Whiskey Riff has become a destination website for consumer country music news and content, as well as for outdoors and lifestyle content that resonates with the country music audience.
Across the Whiskey Riff brand umbrella as a whole, including Whiskey Riff social media accounts as well as @RIFFOutdoors, @WhiskeyRiffShop and @WhiskeyRiffRaff, the company says the sites have collectively drawn over 3.3 million social media followers. Over half of Whiskey Riff viewers are between the ages of 18-44.
Gazibara tells Billboard of launching Whiskey Riff, “I just thought, ‘If you are a college kid sitting in class, you don’t have a place to go to get a playlist, a podcast, a funny story, an outdoors thing, music stories and maybe a funny t-shirt if you want to get it for a concert.’”
“We share a certain segment of fans with Opry Entertainment, but we also have different fans in certain capacities,” Langeler adds. “The Opry does a great job of promoting rising artists that are independent and then they also bring on seasoned veterans, [Country Music] Hall of Fame members. I think we can really just help each other grow and continually bring new fans to each other.”
One element the Whiskey Riff co-founders insist won’t change is the site’s distinctive voice.
“The Opry knows we’re gonna have opinions,” Gazibara says. “They don’t have a say in the content, obviously, but of course you want to amplify their content that fits with our audience—and there is plenty of that from their end.”
Currently, OEG supports emerging artists in multiple ways, including Grand Ole Opry debut performances, as well as the “My Opry Debut” series, which runs on television network Circle, OEG’s joint venture with Gray Television. Additionally, new acts garner support through the Opry NextStage program, and performances at various Ole Red locations (Ole Red is set to add a Las Vegas location later this year).
OEG and Whiskey Riff are considering a range of collaborative options, including podcasts and cross-promotional retail/branding opportunities. “You might see some of their brand of products in our brick and mortar locations,” Fioravanti says. “We are just starting to have those discussions, but it’s an opportunity to collaborate with our retail capabilities.”
Gazibara and Langeler envision further amplifying Whiskey Riff’s lifestyle content, including food, hunting, fishing and other sports. Meanwhile, the Colorado-based Whiskey Riff will soon have a full-time Nashville presence; the site’s operations manager will relocate to Nashville, while the site’s Nashville-based assistant editor will move to a full-time role.
“They will have access to go backstage [at the Opry], talk to people, maybe get some fun, rapid-fire content before artists go onstage, or show the jam band-kind of thing that often happens backstage,” Langeler says. “We want to give fans an inside look at stuff they maybe wouldn’t have seen.
“The Opry is the greatest country music institution in the world,” Langeler adds. “I think we will be a machine going forward, pumping out content, giving fans that access and telling great stories. Country music is such a rich storytelling fabric and we will be able to help the Opry amplify that, and they will be able to help us to be able to tell these stories.”
Apple Music is ready for its long-awaited dive into classical music, with a standalone app. Announced Thursday (March 9), Apple Music Classical is pitched as the “ultimate classical experience,” and is said to be years in the making.
The app will invite classical fans to stream hundreds of curated playlists and thousands of exclusive albums, plus view exclusive artworks and digital portraits, browse composer biographies, editorial notes and more. AMC launches on March 28 but is available to “pre-order” now in the App Store.
Apple Music subscribers will be able download and use Apple Music Classical at no additional cost to their plan. While it’ll be a standalone app, only Apple Music subscribers will have access to it.
At launch, the service will boast the world’s “largest classical music catalog” with over 5 million tracks and works from new releases to recognized masterpieces, according to a statement.
The app’s search engine can locate recordings by composer, work, conductor, and even catalog number, and audiophiles will be rewarded with “thousands” of recordings rendered in immersive spatial audio.
Apple’s full-on plunge into classical follows the tech giant’s acquisition of Primephonic, the Netherlands-based classical music streaming service, in a deal announced back in Aug. 30, 2021, a precursor to the launch of a dedicated experience for classical music fans, which was tentatively planned for 2022.
“We love and have a deep respect for classical music, and Primephonic has become a fan favorite for classical enthusiasts,” Oliver Schusser, Apple’s vice president of Apple Music and Beats, said at the time. “Together, we’re bringing great new classical features to Apple Music, and in the near future, we’ll deliver a dedicated classical experience that will truly be the best in the world.”
That dedicated classical experience is set to go live later this month everywhere where Apple Music is offered, with the exception of China, Japan, Korea and Taiwan; those regions will follow at an unspecified date, reads a corporate statement. Also coming soon is Apple Music Classical for Android.
The app will be available for all iPhone models running iOS 15.4 or later.
Jury deliberations began Wednesday (March 8) in the trial of three men accused of murdering rising rap star XXXTentacion during a 2018 robbery outside a Florida motorcycle shop after the alleged gunman’s attorney argued that DNA evidence proves his client and another man are innocent.
Attorney Joseph Kimok gave the final defense closing argument in the trial of three men accused of first-degree murder, telling jurors that while the artist struggled with his killers before being shot and DNA was found on the body and on a stolen necklace, it wasn’t from his client, 28-year-old Michael Boatwright. Nor was it from accused second gunman Trayvon Newsome, 24, or accused getaway driver and ringleader Dedrick Williams, 26.
“Whoever (XXXTentacion) struggled with is not in this courtroom,” Kimok told jurors as the four-week trial neared its conclusion. “The DNA proves that someone not named Michael Boatwright or Trayvon Newsome participated in this murder.”
A fourth man, Robert Allen, pleaded guilty last year to second-degree murder and testified against his former friends. Attorneys for all three men say he is lying about their clients’ involvement in the slaying and robbery, which netted $50,000. They also say Broward County sheriff’s detectives botched the investigation, failing to consider other possible suspects including Canadian rap star Drake, with whom XXXTentacion had an online feud.
Lead prosecutor Pascale Achille in her rebuttal argument Wednesday admitted that Allen is not a perfect witness, that he has previous felony convictions, but co-conspirators in murders rarely are.
“Plans hatched in hell do not have angels for witnesses,” she said.
Achille said that while detectives never found the guns, masks and money, only Williams was arrested within days of the shooting, giving the others time to hide any evidence. She said the lack of DNA evidence linking the defendants to the killing is irrelevant — that fact does not exclude them. She said much more importantly, cellphone data shows the defendants were together near the motorcycle shop at the time of the slaying and that Bluetooth data puts them in the SUV used by the shooters at that same time.
During her primary closing argument Tuesday, Achille played surveillance video from the motorcycle shop and elsewhere that she says backs up Allen’s testimony. She also played cellphone videos the defendants allegedly took hours after the killing that showed them smiling and dancing as they flashed handfuls of $100 bills.
Boatwright, Williams and Newsome all face mandatory life sentences if convicted. Prosecutors did not seek the death penalty. While the three are being tried together, the jury has to decide separately on each and could convict just one or two. The jurors deliberated for about an hour Wednesday before adjourning. They will resume Thursday.
XXXTentacion, whose real name was Jahseh Onfroy, had just left Riva Motorsports in suburban Fort Lauderdale on June 18, 2018, with a friend when his BMW was blocked by an SUV that swerved in front.
Surveillance video showed that two masked gunmen emerged and confronted the 20-year-old rapper at the driver’s window, and one shot him repeatedly after a 45-second struggle. They then grabbed a Louis Vuitton bag containing the $50,000, which XXXTentacion had just withdrawn from the bank. They then got back into the SUV and sped away. The friend was not harmed.
Prosecutors say the three defendants and Allen set out that day to commit robberies and went to the motorcycle shop to buy Williams a mask. There they spotted the rapper and decided to make him their target.
Prosecutors say Allen and Williams went inside the motorcycle shop to confirm it was him. They then went back to the SUV they had rented, waited for XXXTentacion to emerge and ambushed him, according to prosecutors.
The rapper was a platinum-selling rising star who tackled issues including prejudice and depression in his songs. He also drew criticism over bad behavior and multiple arrests, including charges that he severely beat and abused his girlfriend.
There are twin $10 billion milestones served up in the RIAA’s 2022 year-end report on U.S. recorded music revenues: paid subscription streaming revenue reached $10.2 billion over the course of the year; and industry revenues at wholesale reached $10.3 billion, the first time either of those markers have been crossed, the trade body reports.
Those are two headline numbers of the annual report, wherein U.S. recorded music revenues grew 6.1% at retail, from $15.0 billion in 2021 to $15.9 billion in 2022. That marks the seventh straight year of growth for the business, though the percentage of that bump is the lowest since 2015 (+0.9%), the first year that retail revenues began to rise from the industry’s 2014 nadir. (The growth that year was so small, around $65 million, that it was essentially flat for all intents and purposes.) In fact, 2022 is the only year during that time period when growth has not exceeded double digits other than 2020, when a first COVID-impacted year of uncertainty still saw a 9.2% rise in revenue.
Streaming, unsurprisingly, made up the bulk of the industry’s revenues — 84%, up a tick from 83% in 2021, adding up to $13.3 billion in 2022, up 7% from $12.4 billion the year before. Within that, the aforementioned paid streaming chunk was the largest, accounting for 77% of that total for 8% year-over-year growth, and in and of itself making up just shy of 2/3s of the industry’s overall revenues; of the overall paid streaming number, so-called “limited-tier” subscription streaming — including the likes of Amazon Prime, Pandora Plus, Peloton and other fitness or restricted streaming options — grew 18% to surpass $1 billion, coming in at $1.1 billion overall. And ad-supported streaming — like YouTube, Spotify’s free tier or revenues from TikTok — moved up 6% to $1.8 billion, making up 11% of all revenues for the year.
The average number of paid subscriptions in the U.S., meanwhile, reached 92 million, up 9.6% from the 84 million that existed in 2021. (The RIAA notes that this does not include limited-tier subscriptions, and counts “multi-user plans” as one subscription. The overall paid streaming figure of $10.2 billion includes limited-tier.) That growth, while significant given that it is higher than overall revenue growth, is down in both actual numbers and percentage growth for 2021, as was the revenue growth gleaned from paid subs, suggesting that while there’s still room to go higher and records continue to get broken, there may be a slowdown in subscriptions in the future.
Outside of those streaming figures, digital and customized radio revenue — paid out by services such as SiriusXM — inched up 2% YoY, even as SoundExchange payouts declined 3% to $959 million; those other ad-supported platforms such as SiriusXM and other internet radio services grew 28% in revenue during the year, contributing $261 million to the overall pie. That ends a few straight years of growth from SoundExchange distributions, though the overall figure of $1.2 billion from digital and customized radio in general has remained relatively flat for the past several years.
Also within the digital realm, downloads continued their stumble down the proverbial cliff, dropping 20% across the board — both for tracks and for digital albums — to total $495 million in revenue ($242 million for tracks, $214 million for albums). The RIAA notes that in 2012, digital downloads made up 43% of the overall industry’s revenue; in 2022, that number was just 3%. Factoring other formats, total digital revenue was $13.8 billion, up 6.0% from 2021, or 87% of the total business.
For the first time since 1987, vinyl LP units outsold the number of CDs, 41.3 million to 33.4 million (vinyl overtook CDs in revenue in 2020), as its year-over-year growth streak stretches to 16 years — old enough to drive. Total physical revenue was up 4% in 2022 to $1.7 billion, of which $1.2 billion came from vinyl — up 17% YoY, making up 71% of physical revenues. CD revenue, meanwhile, continued to decline despite the one-time pandemic boost of a few years ago, down 18% to $483 million in 2022. Synch revenue also grew, up 24.8% to $382.5 million.
“2022 was an impressive year of sustained ‘growth-over-growth’ more than a decade after streaming’s explosion onto the music scene,” RIAA chairman/CEO Mitch Glazier said in a statement accompanying the report. “Continuing that long run, subscription streaming revenues now make up two-thirds of the market with a robust record high $13.3 billion. This long and ongoing arc of success has only been possible thanks to the determined and creative work of record companies fighting to build a healthy streaming economy where artists and rightsholders get paid wherever and whenever their work is used.”
The license of a Rochester, New York, concert venue was revoked Wednesday (March 8) while authorities investigate the circumstances of a stampede after a rap concert that left two women dead and injured several other concertgoers.
“It is one step we can immediately take to ensure that the events of Sunday night are not repeated,” Police Chief David M. Smith said at a news conference. He said he denied the Main Street Armory’s application to renew its one-year entertainment license after the venue’s owner did not attend a scheduled meeting with police and other city officials.
Rhondesia Belton, 33, of Buffalo and Brandy Miller, 35, of Rochester were fatally injured when audience members surged dangerously toward the exits following a Sunday evening performance by Memphis, Tennessee, rap stars GloRilla and Finesse2tymes. Police on Monday said the stampede may have been triggered by unfounded fears of gunfire. But police found no immediate evidence of gunshots.
One woman remained hospitalized in critical condition Wednesday.
Smith said the city planned to meet with the venue’s owner Wednesday to ask him to choose between voluntarily halting events or having the pending renewal of the entertainment license denied. When the owner did not attend, the chief signed an order prohibiting the armory from hosting “any public entertainment, which includes concerts, amplified music, and athletic events or games, including volleyball or cheerleading.”
There was no response to an email requesting comment sent to the Main Street Armory.
“Your contracted event security guards were unable to control the crowd as they were running, which in turn caused a human stampede,” according to the city’s letter to Scott Donaldson, which said he had violated a licensing requirement to maintain order at the site.
The city’s deputy corporation counsel, Patrick Beath, said criminal and regulatory investigations are under way.
“In addition to the police investigation, the Rochester Fire Department and code enforcement teams are inspecting the building and reviewing photographic and video evidence of the concert to determine if there were any fire code or building code violations at the property,” Beath said at the news conference.
The fortress-like armory was built from 1905 to 1907 and was initially used by the U.S. Army. It hosted sporting events throughout the 20th century before being shut down for several years starting in the late 1990s, partly because it lacked a fire-suppression system at the time. It began hosting concerts and other events in 2005 after undergoing extensive renovations.
Smith said its main arena is meant to have a capacity of about 5,000 people.
“The bottom line is, lives were lost, and we need to take steps to make sure that no lives are lost in the future if this was indeed something that was preventable,” he said.
Fatal crowd surges at large events have turned deadly before, including one at a 2021 concert by rapper Travis Scott in which 10 people died.
If the price of an individual streaming subscription plan were adjusted for inflation in 2023, it would cost $13.25 instead of roughly $10 a month, Warner Music Group CEO Robert Kyncl said on Wednesday (March 8) — a statistic that doubled as a plea for streaming companies that have yet to raise fees to get in line.
While several of the big music streaming companies — including Apple, Amazon and Deezer — have raised their baseline prices recently, the biggest one of all, Spotify, has so far held off on raising the $9.99 pricetag on its U.S. premium subscription plan. Though Kyncl didn’t specifically address Spotify on Wednesday, when he spoke at the Morgan Stanley Technology, Media & Telecom Conference, he said companies that haven’t raised their prices are playing a role in the undervaluing of music.
“We are the lowest (cost) form of entertainment,” he said. “We have the highest …engagement, highest form of affinity and lowest per hour price. That doesn’t seem right. It should change in an orderly fashion.”
While Kyncl is far from an unbiased commenter on price hikes — music labels stand to gain significant revenues from DSPs raising their subscription prices — Kyncl says the 12 years he spent at YouTube has shown him companies can raise prices if they have a product consumers cherish.
“YouTube TV has grown its subscription from $35 to $70 while growing … because they have a superior product,” Kyncl said.
During the wide-ranging presentation, Kyncl also expressed empathy for executives at TikTok who are at “a company that’s kind of embattled today with lots of different institutions around the world.”
“As someone who’s kind of gone through that, it is much better to have friends and not fight a war on every flank,” he added, recalling the contentious relationship YouTube once had with the music industry.
TikTok is engaged in ongoing negotiations over remuneration to rights holders, a group that includes Warner Music Group (WMG). On Wednesday, Kyncl noted WMG is open to a friendlier dynamic with the popular music discovery tool so long as it works for “both sides.”
“That’s all I look for, fair setup on both sides and to grow a business together,” Kyncl added.
Abu Dhabi-based music streaming company Anghami says its revenues grew by more than 35% to $48 million in 2022, driven by strong growth in paid subscribers, according to a statement the company released sharing its preliminary unaudited results for last year.
The company says its total number of paying subscribers grew 21% year-over-year to 1.52 million, while the overall number of music streams rose by 20% amid growing demand for Anghami’s music content, roughly 60% of which was Arabic-language in 2022.
“Our ability to provide an exceptional user experience and to deliver the best music and entertainment content in the (Middle East and North Africa) region and beyond is reflected in our strong financial performance in 2022,” Anghami CEO Eddy Maroun said in a statement.
As the most popular streaming platform in one of the fastest-growing streaming markets in the world, Anghami says it will achieve profitability later this year. But the company has faced its first public growing pains in recent months in the form of a lawsuit and regulatory reprimand.
In December, U.S.-based publishing company Reservoir Media and its Middle East partner PopArabia sued Anghami for alleged copyright infringement related to a dozen Western and Arabic songs by artists including Lil Jon and 50 Cent. Anghami has defended its payments to rights holders and called the lawsuit baseless and defamatory.
In January, the Nasdaq market exchange, where Anghami is publicly traded, notified the company that it was in violation of a filing rule requiring Anghami to submit a balance sheet and income statement to support its interim results for the second quarter ending June 30, 2022. The company had only submitted a press release with financial results for the period.
The regulatory flag did not affect Anghami’s listing or ability to trade on the exchange, and Anghami apparently remedied the issue this month by filing unaudited condensed financial statements for the first half of 2022 and 2021.
However, in a Feb. 27 filing, Anghami noted that its independent auditor, Ernst & Young Middle East, resigned this year and has been replaced by Grant Thornton. Ernst & Young audited Anghami’s financials for 2021 and 2022 without issue, but did include paragraphs in each of the year’s reports “regarding substantial doubt about Anghami’s ability to continue as a going concern,” Anghami said in the filing.
Grant Thornton is expected to release an audited version of the company’s full-year 2022 results by mid-April.