From innovative solutions to the music industry, bonds are getting created as we speak! From Universal’s UMusicLift to the fight against fraud, dive into the latest with us!
#1. Universal’s fight against streaming fraud
Beatdapp, a company specializing in music streaming fraud detection, has secured $17 million in funding and entered into a strategic partnership with Universal Music Group. The funds will be used to recruit senior executives, expand technical and data science teams, and expand into new markets, including Asia, India and Europe. The partnership aims to combat streaming fraud by encouraging artists and labels to produce music in Spatial Audio. It will also ensure accurate payments for artists and rights holders.
#2. The importance of “Superfans” concept
The concept of "superfans" is enjoying a revival in the music industry, and CEOs of major record companies are paying increasing attention to it. Superfans are generally defined as people who are willing to spend a lot of money on an artist, which is a significant source of revenue. According to Goldman Sachs, superfans, who represent 18-20% of an artist's fans, collectively spend 80% more on music per month than casual listeners. Major record companies are now focusing on strengthening the relationship between artist and fan through superfan experiences and products, moving towards artist-centric royalties and increasing the pie for all artists.
#3. TuneCore’s latest results on their accelerator
TuneCore has released its first TuneCore Accelerator report, highlighting the increased exposure and growth of self-published artists through its "TuneCore Accelerator" program. The program comprises four development plans for artists at different stages of their careers. Following its launch, almost 10,000 artists increased their streams by an average of 143% in the first quarter, moving into a higher development segment.
Hip-hop and Latin titles participating in the program saw a significant increase in streams, while country and Latin genres saw the strongest growth in streaming. The report also highlights regional streaming growth rates. The USA, Brazil, the LATAM region (excluding Brazil) and India show positive results.
#4. Spotify is back on their strategic path on iPhones
Spotify plans a strategic update to its iPhone app in Europe, capitalizing on the upcoming Digital Markets Act (DMA) effective in March. The DMA mandates "gatekeepers" like Apple to allow third-party billing and app distribution. In response, Spotify aims to enable in-app subscriptions, audiobook purchases, and promotional campaigns, circumventing Apple's App Store rules. You may remember the infamous dispute between the two companies on the Apple Tax.
While Europe contributes a modest share to Apple's App Store spend, this move signals Spotify's leverage of regulatory changes to enhance user experience and expand its subscriber base. The clash highlights ongoing tensions in the tech landscape.
#5. A new hub for MusicTech companies by Universal Music
Universal Music Group's Digital Innovation team unveiled UMusicLift at MusicAlly Connect this week. UMusicLift will be a dynamic online hub dedicated to nurturing music-related startups and entrepreneurs. With a mission to propel the next wave of digital transformation, UMusicLift offers a spectrum of resources, including learning tools, news, and spotlights.
You can sign up for notifications on the forthcoming launch, promising a supportive ecosystem for industry navigation and connection. UMusicLift marks a pivotal step in UMG's commitment to fostering innovation and amplifying the understanding of diverse businesses within the music landscape.