Business Frame Weekly – Hipgnosis delays financial results/ Number Of Latin Music Listeners On Spotify Woldwide Soared

Hipgnosis delays financial results amid valuation concerns

The Number Of Latin Music Listeners On Spotify Woldwide Soared 986% From 2014 To 2023

Luminate is standing by its plan to change how it measures US physical music sales.

In this newsletter:

• Hipgnosis delays financial results amid valuation concerns
• Legendary lyricist Will Jennings has sold his extensive catalog to a publishing company headed by music publisher Lance Freed and Fuji Music Group.
• The Number Of Latin Music Listeners On Spotify Woldwide Soared 986% From 2014 To 2023
• The European Music Managers Alliance (EMMA) and YouTube Music are expanding their existing collaboration.
• BMG Acquires Alain Chamfort’s Recorded Music Catalog
• Luminate is standing by its plan to change how it measures US physical music sales.

December 26, 2023

Hipgnosis delays financial results amid valuation concerns

The board of Hipgnosis Songs Fund has decided to delay publication of its financial results. The results for the six months to September 30, 2023, were expected to be published today. According to a statement, the valuation the company received from its independent valuer is higher than expected in light of recent transactions in the sector. These include the proposed sale of assets to Blackstone-backed Hipgnosis Songs Capital for $417.5 million (a discount of 24.3% to the valuation in March 2023), and the recent sale of non-core assets of $23.1 million (a 14.2% discount). The $417.5 million deal, involving 29 song catalogues, was called off in October following a shareholder vote against a further five-year mandate for Hipgnosis as an investment trust. The board must put forward a new plan for Hipgnosis shareholders to vote on. The board sought advice from Hipgnosis Song Management, its investment adviser, which is majority owned by funds managed by Blackstone, on the independent valuer's valuation. “Hipgnosis Song Management Limited eventually provided an opinion, which was heavily caveated, such that the board has concerns as to the valuation of the company's assets in its interim results,” said a statement.

Legendary lyricist Will Jennings has sold his extensive catalog to a publishing company headed by music publisher Lance Freed and Fuji Music Group.

Legendary lyricist Will Jennings, known for crafting some of the most beloved hits of the last five decades, has sold his extensive catalog to a publishing company headed by music publisher Lance Freed and Fuji Music Group. The acquisition, announced on December 12, was made through an exclusive joint venture between Freed’s new publishing company, All Clear Music, and Fuji Music. All Clear Music and Fuji Music described the acquisition — which covers 100% of Jennings’ catalog — as “one of the most significant deals of the year in the music industry.” Financial terms of the deal were not disclosed.

The Number Of Latin Music Listeners On Spotify Woldwide Soared 986% From 2014 To 2023

From Bad Bunny to Peso Pluma, from Iñigo Quintero to Karol G, Latin music has been one of the recording industry’s biggest breakout success stories of the past few years. A large part of its momentum is coming from the US recorded music market, the world’s largest, where Latin music has seen several incredible years. In 2022, it surpassed a billion dollars in US recorded music revenue for the first time, raking in $1.09 billion, a 23.8% YoY increase, and taking a nearly 8% share of the music streaming market, according to data from the RIAA.

The European Music Managers Alliance (EMMA) and YouTube Music are expanding their existing collaboration.

The European Music Managers Alliance (EMMA) and YouTube Music are expanding their existing collaboration, a move set to benefit over 2,000 music managers across Europe.Building upon EMMA’s partnership with YouTube Music on its pan-European mentoring program, launched in 2019, the enhanced partnership will support EMMA’s efforts in providing professional development services, expert-led training and network-building opportunities for managers throughout the continent. Additionally, the collaboration will facilitate the development of research projects aimed at equipping policymakers with deeper insights into supporting Europe’s diverse music industry, EMMA said.

BMG Acquires Alain Chamfort’s Recorded Music Catalog

BMG has announced it has acquired the recorded catalog of French pop singer and composer, Alain Chamfort. This marks the company’s second catalog acquisition in France this year, following the acquisition of Martin Solveig’s recorded catalog in October 2023. In addition to this deal, Chamfort has chosen BMG for his future recordings as well.The acquisition includes the majority of Chamfort’s recorded catalog, comprised of 13 albums and including the studio albums Poses, Amour Année Zéro, Tendres Fièvres and Secrets Glacés. It also includes some of the singer’s biggest hits, including “Manureva,” “La Fièvre Dans Le Sang,” and “Géant.”

Luminate is standing by its plan to change how it measures US physical music sales.

Luminate, the company that compiles the data used to build Billboard music charts, says it’s sticking by a controversial plan to change how it measures US physical music sales that some in the industry fear will mean underreporting of sales from indie music stores. In a statement sent to indie retailers and music groups last Wednesday (December 13), the company said that after consulting with “all facets of the music industry… the consensus is that the current weighted modeling should be retired.” Luminate currently uses a weighted modeling approach to determining physical music sales (vinyl, CDs and cassettes), under which it adjusts sales numbers from stores that report their sales to account for non-reporting stores.

Random Ramblings

• Billboard Presents the Royalty Calculator: See What Your Streams Are Worth
• Guide to Vinyl vs. CDs: Which Sounds Better
• How much will ‘Rockin’ Around The Christmas Tree’ earn this Holiday season?
• AI in Music Production: Advancements, Collaborations & Copyright Issues
• Mariah Carey Spends Record-Extending 93rd Week at No. 1 on Hot 100, as ‘All I Want for Christmas Is You’ Continues Streak