Welcome to Music Business Worldwide’s weekly roundup, where we’ll ensure you stay updated with the five biggest stories making headlines over the last seven days. This MBW overview is supported by Centtrip, which assists over 500 of the world’s top-selling artists in maximizing their earnings and minimizing their touring expenses.
Create a music group
The company has been on the radar for several years, especially after securing unicorn status with a $1 billion valuation from a funding round earlier this year. This week, Create continued its acquisition spree by acquiring a 50% stake in the London-based EDM label and publisher Enhanced.
Additionally, MBW reported that Sony Music has pulled its entire catalog from the Africa-focused streaming service Boomplay, which includes music distributed by The Orchard and AWAL. Other rights holders seem to share concerns regarding delayed royalty payments from this platform.
Simultaneously, the United States vs. TikTok saga persisted when the social media platform filed an emergency motion to postpone the January 19 deadline by which it must sell its app to its Chinese parent company, ByteDance. The government has urged the court to reject TikTok’s petition.
This week, MBW also published an interview with Steve Stout, the founder and CEO of UnitedMasters, discussing how the independently released track Only Gata through UnitedMasters has become the most popular TikTok song globally this year. Notably, half of the top ten tracks on TikTok globally in 2024 were distributed through independent channels, with four out of the top five being independently released.
Lastly, MBW’s founder Tim Ingham explored Drake’s lawsuit against Universal Music Group (UMG) concerning the Kendrick Lamar diss track Not Like Us.
Here’s what unfolded this week…
Key Highlights of the Week
Photo: Lucy Moir/Superior
1) $1 BILLION CREATE MUSIC GROUP ACQUIRES 50% SHARES IN UK LABEL AND PUBLISHER ENHANCED
2023 has been a bustling year for the California-based company, Create a Music Group.
In June, it closed a US$165 million investment round led by private equity firm Flexpoint Ford, achieving a valuation of 1 billion dollars.
Following this, the company announced the acquisition of the British label and publisher, Manchester-based Ostereo.
Now, they’re continuing their wave of investments with a 50% stake in Enhanced, a London-based company…
2) SONY MUSIC RETRIEVES BOOMPLAY MUSIC STREAMING SERVICE CATALOG FOR AFRICA
Boomplay has been hailed as one of the most promising music streaming platforms in Africa, boasting over 98 million monthly active users at the end of 2023 and a rapid growth path.
However, relations between Boomplay and leading global music rights holders appear to be deteriorating.
BIE has confirmed that this week Sony Music removed its full catalog from the service, including titles distributed by The Orchard and AWAL.
Moreover, sources indicated to BIE that there are increasing worries among other rights holders concerning delayed royalty payments from the platform…
Photo: Ascannio/Shutterstock
3) THE US GOVERNMENT ASKS COURT TO REJECT TIKTOK’S REQUEST TO DELAY POTENTIAL APP BAN
The US government has requested that the court dismiss TikTok’s emergency plea to postpone legislation that could ban the app if its Chinese owners do not sell it by January 19.
A federal appeals court rejected TikTok’s challenge to this legislation last Friday (December 6), with TikTok announcing plans to appeal the decision to the Supreme Court.
On December 9, TikTok and its parent company ByteDance submitted an emergency motion asking for a temporary injunction to hold off the legislation, claiming it’s crucial for the Supreme Court, as the sole court with appellate jurisdiction over this case, to reassess this significant matter…
4) STEVE STOUT DISCUSSES INDEPENDENCE AND EMERGING MARKETS, HIGHLIGHTING UNITEDMASTERS’ TIKTOK SUCCESS
The rise of independent distribution in capturing the attention of major streaming players is among the hottest topics today.
The ascent of FloyyMenor’s hit Only Gata serves as a prime example of how the industry dynamics are shifting.
Last week, TikTok confirmed that the viral track from Chile, facilitated by independent distributor UnitedMasters, became the most popular song on its platform globally this year… (MBW)
5) DRAKE IN DISGUST AND DISCOVERY MODE.
Photo: Sam Kovak/Alami
Indeed, I experienced disgust.
Seven years ago, I uploaded my musical creation, Pinky Hue to streaming platforms.
You might have thought of Pinky Hue as merely a journalistic gimmick; a tool for Music Business Worldwide to highlight the ease of buying streams on Spotify.
If that was your assumption, I’m disheartened. Pinky Hue is truly my equivalent of Bohemian Rhapsody.
Lucas focuses on the interaction between music and society. He specializes in how music influences and reflects cultures, analyzing the role of sound in social, political, and cultural events around the world.
