Welcome to the Music Business Worldwide weekly review, where we highlight the five biggest stories making headlines over the past week. This review is brought to you by Centtrip, which assists over 500 top-selling artists worldwide in maximizing their income and minimizing their touring expenses.
Major Changes in TikTok
This week witnessed significant changes in TikTok‘s parent company ByteDance. Reports confirm that Ole Obermann is stepping down as the global head of music business development after over five years, with Tracy Gardner slated to take over at the end of March. Sources indicate that Obermann is transitioning to Apple Music.
In other news, Warner Records formed a partnership with hip-hop and R&B head Tim Hinshaw to establish a new label, Free Lunch Records.
Also this week, Sony Music Entertainment requested the court to dismiss a copyright lawsuit filed by Patrick Moxy’s Ultra International Music Publishing.
Spotify Financial Updates
Spotify CEO Daniel Ek has sold another $31.5 million in company shares this week, bringing his total cash from share sales to $666 million over the past year and a half. Spotify’s stock hit a fresh high of $648.32 per share on February 13.
In a related update, we have insights into the long-anticipated “Super Premium” tier, reportedly titled “Music,” which will cost $5.99 per month in the USA. Potential benefits include concert tickets, AI remix tools, and high-fidelity audio.
1) Ole Obermann departs TikTok for a key role at Apple; Tracy Gardner steps in at ByteDance
A significant leadership shift is underway in TikTok/ByteDance‘s music team.
After five and a half years as the global leader in music business development at ByteDance, Ole Obermann will be leaving next month for a new opportunity in the music industry.
With Obermann’s exit at the end of March, Tracy Gardner will be appointed as the new global leader of music business development at ByteDance.
TikTok refrained from commenting, but sources report that Obermann played a vital role in developing Apple Music.
Photo: Rashida Polon
2) Warner Records announces strategic partnership with Tim Hinshaw to launch Free Lunch Records.
Warner Records has entered a strategic partnership with noted hip-hop and R&B figure Tim Hinshaw.
This collaboration marks Hinshaw’s expansion with Free Lunch Agency—a creative and touring company—into the label space with the launch of Free Lunch Records.
According to the official announcement, this partnership allows Warner Records artists to tap into “extensive creative, touring, and synchronization opportunities” offered by Free Lunch.
As part of this initiative, esteemed A&R leader Erica Coolter has been appointed as general manager of Free Lunch Records while retaining her role as SVP, A&R at Warner Records.
T. Schneider / Shutterstock
3) Sony Music seeks to dismiss copyright lawsuit filed by Patrick Moxey’s Ultra Music Publishing
Sony Music Entertainment has requested a New York court to dismiss a lawsuit filed in late 2024 by Patrick Moxey, an independent publisher associated with Ultra International Music Publishing.
The lawsuit, filed in November on behalf of Ultra International Music Publishing LLC (UIMP) and Ultra Music Publishing Europe AG, accuses Sony of copyright infringements related to the unauthorized use of Ultra’s compositions.
Several of Sony’s subsidiaries, including Ultra Records and Aval, have been named in the suit.
In legal documents filed by Sony’s lawyers, the firm referred to the copyright claims as “ill-conceived efforts” to “address” the complaint against Sony Music regarding the alleged unauthorized use of Ultra’s works following the acquisition in 2021.
4) Daniel Ek cashes out $666 million in Spotify shares, with latest transaction of $31.5 million.
Spotify‘s co-founder and CEO Daniel Ek continues to divest from his holdings in the streaming giant, taking advantage of the company’s stock price.
This week, Ek sold 50,000 shares for $31.5 million, or $630.56 per share, based on the previous day’s closing price.
This latest sale follows closely behind Spotify shares reaching a record high of $648.32 on February 13.
With this latest transaction, Ek’s total sales since July 2023 have accumulated to $666.1 million, with a notable $376 million generated in 2024 alone.
SOPA/ALAM
5) Spotify to introduce Music Pro service with superfan perks, including early access to tickets and AI remix tools for $5.99 per month (report)
Spotify‘s long-awaited Superfan Tier appears to be taking shape and may launch this year.
Sources reported by Bloomberg indicate that the streaming platform is considering an additional fee of $5.99 per month on top of its premium subscription for access to the proposed “Music” tier, which would feature various perks for superfans.
The standard premium subscription rates currently stand at $11.99 in the USA, following a price increase in June 2024. This would bring the new total to around $18 per month if the Super Pro tier is included.
This pricing strategy aligns with insights shared by Spotify CEO Daniel Ek in July 2022, where he indicated the company’s exploration of a higher-priced tier.
The MBW weekly review is backed by Centtrip, assisting over 500 top-selling artists globally in maximizing their income and minimizing touring costs.
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.
