International
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LONDON — More people around the globe are listening to licensed music services than ever before, but piracy continues to have a harmful impact on creators’ careers, according to a new report from international trade body IFPI measuring global consumption and listening habits.
IFPI’s “Engaging with Music 2022” study reveals that music consumers are spending on average 20.1 hours listening to music weekly, a 9% increase from 18.4 hours in 2021.
The London-based organization found that 46% of the 44,000-plus music fans it surveyed for the report listen to their favorite artists through a premium subscription streaming service such as Spotify, Apple Music or Amazon Music, either using their personal subscription or via a shared account. That number rises to 74% when ad-supported music streaming is factored in alongside paid subscriptions.
Those streaming service numbers are slightly down from IFPI’s 2021 figures — when about 47% of respondents used a paid subscription service and 78% of people said they used either ad-supported or paid streaming – but IFPI says any decreases are the result of a change in accounting methodology, rather than a drop in real terms.
In this year’s report, the adoption of subscription streaming services is highest among younger listeners, with 54% of 16–24-year-olds and 56% of 25-34-year-olds surveyed saying they use subscription music platforms. Usage drops to 26% in the 55-64-year-old age bracket.
The top five countries where people spent the most time listening to music through a subscription streaming service were Sweden (56% of people surveyed), the United Kingdom (52%), the U.S. (51%), Germany (51%) and Mexico (50%). (Overall, IFPI reports a 10% rise in time spent listening to music on paid streaming services compared to the prior year.)
The IFPI report was compiled by surveying internet users aged 16-64 between June and September across 22 countries, including the United States, Japan, United Kingdom, Germany, France, Australia, Brazil, Canada and Mexico. Collectively, these markets accounted for more than 89% of global recorded music revenues in 2021, according to this year’s IFPI Global Music Report.
Writing in the study’s foreword, IFPI chief executive Frances Moore says the report’s findings show “how music engagement is thriving, driven by new genres [and] new formats,” as well as the global value of music, “and the need to protect and support it.”
Video-Based Music Consumption Dominates
Of those surveyed in the “Engaging with Music 2022” report, more than three-quarters say they consume music in multiple formats. On average, people use more than six different methods to engage with music, the most popular being video streaming, says IFPI.
Of the people surveyed, 82% said they regularly consume music through video streaming services like YouTube. Audio streaming was the second most popular listening format, followed by radio listening, and then short-form video formats such as TikTok. Meanwhile, 32% of respondents said they had watched a music concert livestream in the last month with more than half (58%) having recently watched a music-focused TV show or film.
Driven by the huge global popularity of TikTok, which says it has over one billion monthly active users, half of those surveyed said they use short-form video apps with 63% of respondents saying music is a key factor in choosing what content they consume on the platforms. South Africa and Mexico were the countries with the highest percentage of short-form video app users (both 78%), followed by Brazil (71%) and Argentina (66%), reports IFPI.
Pop was named as the most popular music genre globally, followed by rock, hip-hop/rap, dance/electronic, and Latin. When it comes to physical music, 12% of the people surveyed had bought a CD within a month of submitting their responses and 8% had purchased a vinyl record.
Survey data from China and India is not included in the main report’s global figures because IFPI says the size of the countries would have a “considerable impact on the weighted average figures used.” The listening study contains separate reports looking at music consumption in China, India, Indonesia and Nigeria. Results from Indonesia and Nigeria were also not included in the global round up as they were included in the survey for the first time this year.
In China, 96% of people surveyed use licensed music streaming services with 94% using short form video platforms. In India, 88% of respondents use music streaming services with 65% consuming short-form video.
Despite the growth in global music listening, the availability of unlicensed repertoire continues to pose a serious threat to the future health of the record industry, says IFPI. It found that almost one in three respondents (30%) admitted to using unauthorized or unlicensed methods to listen to or download music.
Stream-ripping sites remain the most popular way for consumers to access copyright-infringing music, IFPI found, with 40% of 16-24-year-olds confessing to using them. Almost one in five people (17%) said they had used an unlicensed mobile app to illegally download music.
Responding to its findings, Moore said IFPI will continue to fight against all forms of music piracy “to ensure that those seeking to profit from unlicensed and unauthorized music cannot threaten the vibrancy of a music ecosystem that is essential to artists and fans.”
Nickelback will be inducted into the Canadian Music Hall of Fame as part of the 2023 Juno Awards. The show, which is Canada’s equivalent of the Grammys, will be held at Rogers Place in Edmonton, Alberta, on March 13. The band was formed in the town of Hanna, Alberta.
“Returning home to Alberta, where everything started for us, is truly a full circle, milestone moment for the band,” Nickelback frontman Chad Kroeger said in a statement. “We take so much pride in our Canadian roots and are extremely humbled by this honour.”
Nickelback will perform on the show as part of the tribute. It will be their sixth performance on the Junos.
Since winning their first Juno in 2001 for best new group, Nickelback has amassed a total of 12 awards at the show. They won group of the year four times between 2002 and 2009; single of the year for “How You Remind Me” in 2002; album of the year for Dark Horse in 2009; and the Fan Choice award in both 2004 and 2009, among other awards.
Nickelback has a mixed track record at awards shows outside of their native Canada. They have yet to win a Grammy (despite six nods over the years, including record of the year for “How You Remind Me”). They have, however, won seven Billboard Music Awards, two American Music Awards, two MTV Video Music Awards and one People’s Choice Award, among others.
Nickelback will debut their tenth studio album, Get Rollin’ on Nov. 18. The group’s last seven studio albums made the top 10 on the Billboard 200. They topped that chart with All the Right Reasons in 2005.
The Canadian Music Hall of Fame was established by CARAS in 1978 to acknowledge artists who have made an outstanding contribution to Canadian music.
Previous Hall of Fame inductees include both solo artists (such as 2022 recipient Deborah Cox) and groups. Other pop and rock bands that have receive the honor include The Guess Who, The Band, Rush, Triumph, Loverboy, April Wine, Bachman-Turner Overdrive, Barenaked Ladies and Cowboy Junkies.
Calgary, Alberta native and four-time Juno nominee Tate McRae will also perform at the show. McRae, 19, made the top 20 on the Billboard Hot 100 with “You Broke Me First
Manager and promoter Ron Sakamoto will be the recipient of the Walt Grealis Special Achievement Award. A longtime collaborator of Canadian superstar Shania Twain, Sakamoto has represented some of the biggest names in music, including The Guess Who, Bryan Adams, Bee Gees, KISS, and Keith Urban. Sakamoto will receive the honor at the 2023 Juno Opening Night Awards on March 11.
This will be the Juno Awards’ first time in Edmonton in 19 years. The show, produced by Insight Productions, will broadcast and stream live across Canada at 8 p.m. ET/5 p.m. PT on CBC TV, CBC Gem, CBC Radio One, CBC Music, CBC Listen, and globally at CBCMusic.ca/junos and on CBC Music’s Facebook, YouTube and Twitter pages.
A tourism minister for the Bahamas is throwing cold water on Billy McFarland‘s comeback plans. In a statement Monday (Nov. 14), Chester Cooper, the country’s Deputy Prime Minister for Tourism, said that the creator of the disastrous Fyre Festival is still considered a “fugitive” in the country and that anyone knowing his whereabouts should contact the Royal Bahamian Police Force. In response, McFarland issued a letter to the Bahamian government later that day apologizing for Fyre Fest and promising, “I will spend the rest of my life working to right my wrongs.”
The news — first reported by local newspaper The Tribune — comes after McFarland was earlier this year released from prison and later home confinement for crimes he committed while raising money for the 2017 festival. Last month, McFarland released a video on TikTok teasing out a new Bahamas-based project that would be promoted through a treasure hunt set to begin this week on the Caribbean island nation.
“The public is advised that no application has been made to the Government for consideration of any event promoted by Billy McFarland or any entity or parties known to be associated with him,” said Cooper in a statement. “McFarland was the organizer of the Fyre Festival several years ago, a notorious charade for which McFarland was convicted and sent to prison in the USA. “The Government of The Bahamas will not endorse or approve any event in The Bahamas associated with him. “He is considered to be a fugitive, with several pending complaints made against him with the Royal Bahamas Police Force (RBPF).”
McFarland first announced his plans for PYRT on Oct. 24 after serving four years in prison, noting he’s “working on something new” that’s “a little crazier but a whole lot bigger than anything I’ve ever tried before.” In the video announcement, he then flipped a whiteboard to reveal a treasure map taped to the other side and a phone number to call for more information.
In addition to his prison sentence, McFarland was ordered to pay roughly $26 million in restitution for his crimes. In May, his attorney Jason Russo told Billboard that McFarland was focused on finding “the best way to generate income to pay this restitution back and make amends,” adding, “Any new projects that he does become involved in will be done solely for the purpose of generating the restitution for paying back his victims.”
Later Monday, a representative for McFarland provided Billboard with a copy of a letter McFarland says was sent to the Bahamian government in response to Cooper’s statement. In it, he says he has been working to “make amends” with the Bahamian people and pledges to “make these families whole as soon I am allowed.” He goes on to “ask for guidance on whom to speak with to begin my journey to do right by the incredible people of the Bahamas and Family Islands.”
Read it in full here:
Dear Government of The Bahamas,
I am writing to you to profusely apologize for my actions 5 years ago. I was completely wrong and I wholly regret my actions.
I’ve now served my punishment in prison and now that I am out, my main focus is how I can right my wrongs and how I can make the Bahamas and Family Islands, a region I care so deeply about, whole again.
Over the years, and particularly since my release on August 30, I have been in constant touch with the people throughout the Islands. Their generosity and kind hearts have been a constant guide and motivation for me. I have been re-engaging with the families of the islands to see what I can do to begin making amends.
I don’t have much right now, but I am committed to make these families whole as soon I am allowed. I ask for guidance on whom to speak with to begin my journey to do right by the incredible people of the Bahamas and Family Islands.
I truly acknowledge the hurt I caused to the people, and region, and I will spend the rest of my life working to right my wrongs.
Sincerely,Billy McFarland
SM Entertainment, home of such K-pop groups as NCT 127, SuperM and Girls’ Generation, had revenue of 238.1 billion KRW ($165 million at the Sept. 30 exchange rate) from July 1 to Sept. 30 — up 65.4% year-over-year and a 29.1% improvement from the previous quarter, the company announced Monday (Nov. 14).
Operating margin — operating profit as a percentage of revenue — improved to 12.5% in the third quarter of 2022, up from 6.9% in the prior-year period. Net income was 29.2 billion KRW ($20.2 million), up 129.5% year-over-year and 15% higher than the second quarter.
The company’s multi-pronged business, which generates revenue across all facets of its artists’ careers, improved across the board: Recorded music revenues grew 46.6% to 135.1 billion won ($93.6 million). SM Entertainment’s album sales improved from 3.25 million units in the prior-year period to 4.7 million units. It had two standout releases in the quarter: NCT 127’s 2 Baddies peaked at No. 3 on the Billboard 200 albums chart and Aespa’s Girls: The 2nd Mini Album topped Billboard’s Top Album Sales chart.
Concert revenues climbed to 10.9 billion won from virtually nothing a year ago. In the quarter, Revenue from appearances — including television, advertising and events — grew 96.4% to 24.3 billion KRW ($16.8 million). Licensing revenue improved 76.1% to 26.4 billion KRW ($18.3 million).
Revenue at SM Entertainment’s subsidiaries grew 119.5% to 136.9 billion KRW ($94.9 million). These companies include Dream Maker, a Hong Kong-based concert booking agency; SM Culture & Contents, a content production and advertising business; and Keyeast, a Korea-based merchandising and licensing business. According to the release, these subsidiaries benefitted from the reopening of domestic and international touring and increased demand for advertising promotion and business-to-business travel.
Several SM Entertainment artists are on tour in the fourth quarter: NCT 127 has nine dates in Korea, U.S., Thailand and Indonesia; Super Junior has six concerts in Indonesia, Hong Kong and Taiwan; and Ryeowook and NCT Dream have six and five concerts in Japan, respectively.
The company’s fourth-quarter release schedule includes new mini albums by Chen, BoA and Red Velvet and Red Velvet member Seulgi. Red Velvet’s Feel My Rhythm album peaked at No. 20 on the Billboard Global Excl. US chart in April; it also landed on the Indonesia Songs (No. 3), Malaysia Songs (No. 5), Phillippines Songs (No. 15) and Taiwan Songs (No. 16) charts. The group’s The ReVe Festival: Finale EP reached No. 40 on Billboard’s Top Album Sales chart in January 2020.
SM Entertainment’s shares rose 0.5% on Monday to 65,800 KRW. Down just 11.3% in 2022, SM Entertainment’s share price has fared better than Korean music companies HYBE (down 61.2%) and YG Entertainment ( down 26.4%) but lags behind JYP Entertainment (up 12.0%), home of Twice, Stray Kids and iTZY.
SM Entertainment’s shares rose 19% on Sept. 16 after the company announced would prematurely end a contract with a production company owned by the company’s founder and largest shareholder, Lee Soo-man. Its share price, however, has fallen 14% since then.
Coldplay‘s version of “Baraye,” a soft-spoken Iranian revolutionary anthem that recently landed its singer in state detention, was not just intended for the crowd at the EstadioMâs Monumental in Buenos Aires last month.
Amid weeks of street protests in Iran over the Islamic Republic’s policing of dissent and violent treatment of young women, the stadium singalong went viral, landing in worldwide news reports and generating hundreds of thousands of YouTube views.
Shervin Hajipour crowd sourced “Baraye” with lyrics he collected from tweets from Iranian protesters. The hymn is “like a Joan Baez song, not a Rage Against the Machine song,” says Sam Zarifi, the Tehran-born secretary general of the human-rights group International Commission of Jurists.
It quickly became an anthem for the protest movement, which was triggered when police arrested a 22-year-old Kurdish woman, Mahsa Amini, for allegedly wearing her state-mandated headscarf not tightly enough. Three days later, Amini died at a police station — beaten to death, according to her family, although the government cited a heart attack — leading to the mass street protests.
Since her death on Sept. 16, street protests have resulted in dozens of deaths and hundreds of arrests, according to news reports.
“The constant refrain of the protesters right now is ‘be our voice,’” says Zarifi. “What they really want is to not be forgotten. Attention must be paid.”
Hajipour, a 25-year-old pop artist from northern Iran, posted his version of “Baraye” on social media on Sept. 28. It includes the verse “because we want to be free to dance outside in the streets/because we feel terror when it’s time to kiss.” The track hit 40 million Instagram views in one day, according to the Washington Post and others. Since then, it has streamed 3.2 million times globally, according to Luminate, which doesn’t receive data on streams within Iran. The track has also sold 2,500 downloads, hitting No. 4 on Billboard‘s World Digital Song Sales chart last month.
The Iranian government quickly arrested Hajipour and the song vanished from his Instagram. But it was too late to prevent “Baraye” from turning into a worldwide anthem supporting the protesters. The Coldplay version in Argentina was a duet with a guest, Iranian actress Golshifteh Farahani, with verses sung in Farsi. Last month, Iran released Hajipour from detention, and he appeared in an Instagram video to say “Baraye” contained no links to a “movement or organization outside the country.”
The song’s worldwide attention is “huge,” says Zarifi, an American living in Switzerland who grew up in Iran listening to rock ‘n’ roll on headphones to avoid punishment from a government opposed to western music. He cites Baez’ 2009 version of “We Shall Overcome,” including a verse sung in Persian, as particularly inspirational for Iranians at the time.
“Nobody saw it, but it meant a lot,” Zarifi says. “This protest is absolutely the desire of a generation of Iranian kids just to be part of the regular world — if you see some of the people who were killed, they’re just kids who want to do TikTok videos and listen to music on the street. They’re being bullied by backward-looking old mullahs.”
Iranian protests have a history of music and verse going back centuries to the 13th-century Persian poet Hafez, who commented on political instability and religious hypocrisy, according to New Lines magazine. More recently, Iranian leftists retrofitted Chilean singer-songwriter Victor Jara‘s anthem “El Pueblo Unido” into an inspirational theme for Iran’s 1979 revolution, according to Zarifi, who says that the revolutionaries gave little thought to the repressive regime that would follow Mohammad Reza Shah, Iran’s last Shah (king).
Negar Mottahedeh, a Duke University literature professor who teaches gender and feminist studies, says “Baraye,” which translates to “because of” or “for” in Persian, is “wholly new and grounded in the conditions, desires and demands of the present.” She adds that the song is both relevant and flexible, recently landing in video versions by English-language interpreters, a Dutch dance troupe, worldwide animators and Swedish Eurovision stars.
“It’s a very gentle and soft song, but it’s full of mourning and grief,” says Mottahedeh. “Someone asked me about the raging anger that is beneath that — of course it’s there, but there is also a sadness about this moment.”
Or as Coldplay’s Chris Martin told the crowd in Argentina on Oct. 29: “Young women and young people are fighting for their freedom — for the right to be themselves.” Then he added, “You may not know this song, but we’re going to give it everything.”
Chris Martin of Coldplay performs at Estadio Mâs Monumental Antonio Vespucio Liberti on October 25, 2022 in Buenos Aires, Argentina.
Santiago Bluguermann/GI
The Warner Music Group has launched a new label, called OUT OF ORDER, that will highlight artists from emerging markets including Africa, India, the Middle East, Southeastern Europe and the Eastern Mediterranean, the company announced Thursday (Nov. 10). The new label will partner with Parlophone in the U.K. and Atlantic in the U.S., as well as the local WMG affiliates in respective markets, according to a press release; its tagline is “a diverse collection of sounds in no particular order.”
OUT OF ORDER plans to put a spotlight on several different types of creators in each region with a focus on “dance-leaning records,” with artwork created by local designers and a weekly radio show with hour-long DJ sets inspired by tracks from each of the albums, with the mixes hosted on Audiomack, SoundCloud and YouTube.
“I’m incredibly passionate about this initiative,” said Selina Chowdhury, Warner Music’s head of emerging markets, who will run OUT OF ORDER, in a statement. “There’s so much unique and inspired international music that often doesn’t have a global platform. We hope that OUT OF ORDER will take music fans on an adventure and introduce them to sounds and artists they might not otherwise have had the chance to hear.”
Selina Chowdhury
Courtesy Photo
The label’s first release, out Thursday, is called OOO: AFRO, which Warner says “features a mix of Afrobeats, Amapiano and House tracks from the likes of Da Capo, Makhadzi, Moelogo, Oscar Mbo, P-Priime and Rouge,” with artwork by Ghanaian designer Nyahan Tachie-Menson, who said in a statement, “There’s so much going on with the music emerging from individuals on the continent; something we can all relate to is the vibrancy of the music, and that’s what I captured here.”
“Africa is a continent rich with various sounds, which have for the longest time influenced popular culture, but is only now really being spotlighted for its contributions,” Warner Music Africa’s creative lead Garth Brown said in a statement about the release. “This album showcases some of the music from across the continent. It’s an opportunity to give the world a peek of what Africa sounds like.”
OUT OF ORDER’s next release, set for early next year, will be in partnership with Warner Music India.
RIO DE JANEIRO — In 2020, the pandemic knocked down Brazil’s show business, causing the number of music-related events to plummet by 80% to about 15,000, from over 83,000 in 2019, according to Brazil’s office for collection and distribution of music copyrights (ECAD).
While many artists pivoted to livestreams during the shutdown, Bete Dezembro and a group of fellow promoters and artist managers seized the moment to try to remake Brazil’s concert business — betting that once artists returned to the stage, concerts would be in much higher demand. “We had to reinvent ourselves,” Dezembro, owner of Fábrica de Eventos, an events promoter focused on Brazil’s northern music market, tells Billboard.
In March of 2021, Dezembro — along with Augusto Castro, Léo Góes, Celso Almeida and Fernando Almeida — launched 4Even, Brazil’s first investment fund designed to turn music shows into a financial asset class. The gig-driven fund generates profit from buying shows from music artists and reselling them to private clients for higher prices.
The idea was risky. At the time, it was unclear when live concerts would return or even when COVID-19 vaccines would be available in Brazil. “The financial market bought into this idea when it realized that the businesspeople who understand the music sector were the ones taking the risk,” says Dezembro.
With 100 million reais ($18.8 million) of their own money, the five partners inaugurated 4Even’s portfolio by acquiring 192 show dates of Gusttavo Lima, a popular sertanejo act — which valued his shows at just under $100,000 apiece. (Sertanejo is Brazil’s version of American country music.) A year and a half later, 4Even is worth around $30.5 million, the fund managers say, with a portfolio of around 800 shows from at least nine Brazilian artists.
The diverse list includes pagode performer Sorriso Maroto, dance music DJ Vintage Culture and sertanejo duo Jorge & Mateus, 4Even’s most recent acquisition. (4Even only negotiates for shows in Brazil.)
Dezembro tells Billboard that five other Brazilian artists, who she would not name, are currently negotiating to sell shows to 4Even.
While the live sector is rebounding, ECAD says the number of music-related events in 2022 through September, at about 40,000, is still less than half of the 2019 full-year level. That hasn’t stopped the 4Even fund from inspiring other investors. In August of 2021, Opus Entretenimento, a concert promotion and artist management company, and brokerage company XP inaugurated a show-driven investment fund they say is worth around $52 million. Seu Jorge, Alexandre Pires, Bruno & Marrone and Vintage Culture are among the artists who have sold shows to the XP OPUS fund.
Nevertheless, some Brazilian music executives have reservations about the concert funds’ ability to be profitable.
“I’m afraid that some of these funds may be valuing their assets a bit above their actual market value,” says Marcelo Soares, the CEO of Som Livre, a label owned by Sony Music Entertainment. “Some of them will eventually face financial losses. But I like that investment funds are discovering the music market.”
Marcos Araújo, CEO of promoter Villa Mix, says high artist fees, which have been rising in Brazil for the biggest artists, could lead fund partners to squeeze consumers by raising ticket prices. “It’s a very difficult model,” says Araújo, who has managed Lima and other big acts like dance-music performer Alok. “The artist takes his money in advance and spends it on a jet, plane, ship, boat. His money runs out and he starts fighting with the fund. Because he wants more money.”
Araújo told Billboard in mid-2020 that he was working to create his own gig-driven concert fund. He ultimately stopped trying to land enough investment after souring on the idea as too risky. “I was afraid artists couldn’t fulfill their agreements,” he says.
Lima was the first to sell shows to 4Even, agreeing after fund partner Castro, who produces shows and manages artists from Central-Western Brazil, persuaded him that the fund could create financial security for artists. “The idea was that when the pandemic restrictions ended, there would be money in their account,” Castro tells Billboard.
While any 4Even investor can pitch new artists for the fund, acquisitions must be agreed upon by all the partners. Lima, who will soon become one of the fund’s shareholders, informally proposed 4Even invest in Vintage Culture, whose budding international career was making his Brazilian dates scarcer. “As he has started performing abroad more often, he has less availability to perform in Brazil,” says Dezembro. “His future show dates would become more expensive, which would eventually profit the fund.”
Vintage Culture performs live onstage during the second day of Lollapalooza Brazil Music Festival at Interlagos Racetrack on April 06, 2019 in Sao Paulo, Brazil.
Mauricio Santana/GI
According to João Fiuza, CEO of Brazilian fintech One7, which is responsible for the financial governance of 4Even, Lima is expected to become an official fund investor in November, entitling him to participate in all portfolio decisions. Until now, he has been informally advising on new assets. (Junior Marques, one of the artists who sold shows to 4Even, is managed by Balada Music, Lima’s music management company.)
The recent wave of investigations into publicly funded music shows in Brazil — officials in 70 cities are suspected of agreeing to pay inflated fees to lure artists — has placed Lima under a negative spotlight, as his name was mentioned in many of the contracts under scrutiny. Dezembro says no Lima show that belongs to the fund has been canceled or devalued in the market since the investigations became public.
The fund doesn’t resell shows to municipalities, which are the target of the ongoing “CPI do sertanejo” investigations — it sells to private clients, like rodeos, fairs and other events, she says. And all of Lima’s municipal shows were negotiated directly with his company, Balada Music, she says. (Fiuza says Lima’s 4Even-owned shows are selling at a higher price now than before the investigations.)
Even though the fund resells shows for higher prices than they pay the acts, 4Even has seen a growing number of artists vying to join the portfolio to invest in their careers. The fund can be particularly helpful to emerging artists, who can use money earned from selling shows in advance to record one of their concerts, for example, says Fiuza.
But most artists are signing with 4Even for the overall career-management opportunity. “If it were all about buying and reselling the shows, the fund wouldn’t be sustainable,” says Dezembro. “The stronger pillar of the fund is being able to place these artists in the biggest events of Brazil, on the best days, and at the most competitive [set times].”
Additional Reporting by Alexei Barrionuevo
LONDON — Deezer has always been the streaming service that charted its own path. After launching in 2007 — a year before Spotify debuted — the Paris-based company rapidly opened its service in over 180 countries; but, unlike Spotify, which focused on one or two markets at a time, Deezer avoided the biggest markets, like the United States and Japan, for many years. But now that the number of on-demand music subscription services has boomed, Deezer has struggled to keep up with its rivals.
New CEO Jeronimo Folgueira, who took over in June 2021, hopes to change that. Deezer is shifting from targeting small and emerging territories to renewing its focus on large and established music markets, where consumers are more willing to pay for subscriptions. In August, Folgueira forged a partnership with German broadcast giant RTL Deutschland to deliver music and video content in a single app — RTL+ Musik — putting Deezer in a stronger position to compete with Spotify, Apple Music, Amazon Music, China’s Tencent Music Entertainment (TME) and YouTube Music.
Folgueira calls the RTL tie-up a “transformative” deal that gives Deezer the scale it needs to break into Germany, the world’s fourth-biggest recorded-music market, with revenue of $1.6 billion in 2021, up 12.6% from 2020, according to IFPI. “In those markets where we have the right partner and the right distribution strategy, our product is second to none,” says Folgueira.
But in the increasingly crowded streaming business, Deezer, which counts Warner Music Group owner Access Industries among its biggest shareholders, is fighting an uphill battle to unseat Spotify. Deezer’s strategy seems more about becoming a “second-tier player that is strong where first-tier players are not,” says Mark Mulligan, analyst at MIDiA Research. While it was “once incumbent,” along with Rhapsody, “it is now challenger, and it has honed its strategy accordingly.”
Deezer is strongest in France, where it is partnered on bundle deals with telecom company Orange and has 4.4 million subscribers, and in Brazil, where it partnered with TIM Celular in 2016 and has 2.7 million subscribers, according to company filings. Worldwide, Deezer has 9.4 million subscribers compared with Spotify’s 195 million subscribers and 273 million free (ad-supported) users, while TME has 82.7 million paying subscribers, according to the companies’ latest earnings reports.
While Apple Music, Amazon Music and YouTube Music don’t regularly announce user numbers, last year Lyor Cohen, YouTube’s global head of music, said the service had surpassed 50 million paying subscribers worldwide. The last time Apple issued any data for its service was in 2019, when it said it had over 60 million subscribers worldwide; Amazon Music said it had more than 55 million subscribers globally in January 2020 but has not updated that figure since.
Rapidly growing TikTok dwarfs them all, with the social media app boasting over 1 billion active monthly users, many of whom use music in their videos. Streaming executives will watch closely what ByteDance, TikTok’s parent, does next. The Beijing-headquartered company is understood to be in talks with labels about expanding its subscription-based music streaming service Resso — currently available in India, Indonesia and Brazil — to more than a dozen new markets ahead of a global rollout. (Verified profiles with the username “TikTok Music” have appeared on social media platforms in recent months advertising “a new way to experience music.”)
For Deezer, strategic partners like RTL Deutschland, which says it reaches 99% of the German population through its 15 TV channels and numerous radio, print and digital outlets, are the key going forward, says Folgueira. “RTL has to compete with Netflix, Apple and Amazon,” he says. “We compete against Spotify, Apple and Amazon. Together, we can compete much better and have a proposition that is equal or better.” Deezer is seeking strategic partners in other big markets, he says, including the United States (where it launched in 2016), the United Kingdom, Spain and Italy.
Engineers at Deezer and RTL spent a year developing the RTL+ Musik app, which combines music streaming with film, TV and news content and costs 9.99 euros ($9.84) for the first six months, then rises to 12.99 euros ($12.80) per month. RTL, which is owned by BMG parent company Bertelsmann, says it has 3.4 million paying subscribers for its lower-priced, video-only RTL+ streaming service but believes it can quickly grow its premium subscriptions through music.
This year’s merger with I2PO, a special purpose acquisition corporation that raised 275 million euros ($282 million) in a 2021 initial public offering, gives Deezer the funding it needs to execute the plan, says Folgueira. Still, as it tries to make its strategic pivot, Deezer faces strong market headwinds and an uncertain investment environment for music streaming.
Since its rocky debut on the Euronext Paris exchange in July 2021, Deezer’s share price has plummeted almost 60% and now hovers around 3.5 euros (it closed at 3.42 euros on Nov. 8). Spotify shares have tumbled 74% over the past year, to $73.44 on Nov. 7, as investors soured on streaming following a pandemic-related boom. (Spotify’s all-time high closing share price was $364.59, set on set on Feb. 19, 2021.)
“There is a growing acceptance among investors that the boom period for streaming investments is drawing to a close,” says Mulligan. He predicts streaming services will continue to represent long-term value but “will be less interesting to certain kinds of investors, which may weaken overall demand and thus push down share prices.”
Folgueira points to Deezer’s midyear financial results — revenue grew 12.1% (up 9.9% at constant currency) from the prior-year period to 219 million euros ($218 million) — as evidence that the company is well positioned to survive and grow within the fast-changing music streaming market. (Since the interview, Deezer released its third quarter earnings on Oct. 27, showing revenue up 13.8% and 11.4% at constant currency.) “For the last 10 years, streaming companies have prioritized growth over profitability,” says Folgueira. “That will start shifting now, and we will all focus more on profitability going forward.”
Fútbol fans around the world are counting down the days until the 2022 FIFA World Cup kicks off on Nov. 20 in Qatar. To get pumped for the big day, many already have their favorite official World Cup song on repeat.
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In 1990, almost sixty years after the first-ever edition of the World Cup, the Fédération Internationale de Football Association (FIFA) began to adopt songs that would become the official soundtrack of the global soccer event, which happens every four years.
Of course, some have become more memorable than others. There’s Ricky Martin‘s “Cup of Life (La Copa de la Vida),” which in 1998 was the euphoric official FIFA song for the tournament that took place that year in France. It originally peaked at No. 60 on the Billboard Hot 100 in 1998 and re-entered the chart at No. 45 in August 1999. The international smash hit also won a Grammy for best Latin pop performance.
Twelve years later, for the 2010 World Cup in South Africa, Shakira gifted fútbol fans the ultimate soccer song. She released “Waka Waka (This Time For Africa)” in collaboration with Freshlyground. The tournament’s official song was recorded in Spanish and English. With more than 3 billion views on YouTube to date, the track peaked at No. 38 on the Hot 100 chart dated July 3, 2010.
Other World Cup official songs or anthems that made a splash are Pitbull, Jennifer Lopez and Claudia Leitte’s song “Ole Ola (We Are One)” for the 2016 Mundial in Brazil. And don’t forget Nicky Jam, Will Smith and Era Istrefi’s official song titled “Live It Up.”
While we wait for the soccer event to begin, vote for your favorite all-time World Cup song below.
Universal Music Publishing China (UMP China) has signed a global publishing agreement with RYCE Publishing, a music and entertainment company with an over 700-song catalog. RYCE will use UMP China as its publishing administrator for some of China’s biggest C-pop songs from chart-topping artists like Jackson Wang.
Through the deal, UMP China will provide global infrastructure and opportunities for RYCE’s roster as well as handle the Greater China rights for hundreds of major K-Pop hits that are under RYCE’s control including from Korean acts GOT7 and TWICE.
“We saw the rise of J-pop three decades ago and its massive influence on audiences across Asia. Now K-pop is a global phenomenon as we all know, and there has been a very key bridging force between these genres in the last two decades,” says Joe Fang, managing director of UMP China. “With China rising to become the sixth biggest music market of the world, I believe the time of C-pop is here. RYCE Publishing, with its hybrid talents and border-crossing catalogs, is a central piece of that next bridging force and I’m thrilled that UMPG will play an instrumental role in supporting these future chapters of music history.”
Joe Fang
Courtesy Photo
UMP China will now administer top tier C-Pop songs in the RYCE catalog, including “Manual to Youth” and “Adore” performed by TFBOYS; “100 Ways,” “I Love You 3000,” co-written and performed by Jackson Wang （王嘉尔）; “Jiao Huan” performed by Zhou Shen（周深), “EASIER,” performed by Amber Liu （刘逸云） featuring Jackson Wang and “Xiao Juan,” performed by Sitar Tan（谭维维）.
On the K-Pop side, UMP China will now help RYCE Publishing with the promotion of Korean hits for acts like Super Junior, EXO-CBX, GOT7, TWICE, and more in the Greater China region.
RYCE Publishing, is a division of RYCE Entertainment, an entertainment giant based in Beijing. With music publishing, agency, marketing, investing, and brand operating divisions, it specializes in managing music catalog and media resources.
UMP China’s partnership with the local company highlights Universal’s continued efforts to push deeper into China’s music business. Last year, UMP China expanded from its original Beijing headquarters to add a second office and studio space in Shanghai and has also focused on creating songwriting camps to foster the careers of local signees, including one all-female camp with She Is The Music.
China’s music market has grown in size by more than 30% in each of the past two years, according to IFPI, which said total revenues for 2020 were $791.9 million (the total for 2021 was not available). Meanwhile, royalties paid to songwriters and composers rebounded with 8.48 billion euros ($8.49 million) in 2021, a rise of 7.2% from 2020 — but still down 52% from the pre-pandemic levels of 2019, according to CISAC, the global rights management organization.
All three major labels continue to explore opportunities in China, even with the uncertainties surrounding government regulation of music and tech companies like Tencent Music Entertainment (which publishes Billboard China), which have been forced to end exclusive arrangements with the majors for their repertoire in the past two years. Those exclusive deals followed years in which China’s music industry was known for rampant piracy that made it tough to make money in the country.
“We hope that everyone respects music copyright,” says Yunyun Wang, managing director of RYCE Publishing. “If we could all do that, every artist in China music market will be motivated to work harder to make decent products, creating a healthy environment for us all.”
Daryl K, founder and CEO of RYCE Entertainment, says in a statement: “We protect and promote our writers with a vengeance and we’re excited to continue doing so with UMP China. We’re looking forward to the fruits of our partnership.”
Andrew Jenkins, president of Asia Pacific, UMPG, says that RYCE Publishing’s “remarkable creative drive has led to a huge number of hits and great commercial success for RYCE Publishing so far. I look forward to an even more successful future as both companies work together to further build on the global impact of RYCE Publishing in the coming years through this new agreement.”