Product Strategy | MIDiA Research

Business Strategy

Addison Rae will not be owned: The pitfalls of the major label business model

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Kriss Thakrar

25 Mar 2021

Independent artists

TikTok stars are rejecting major labels. It is no secret that major labels are being outpaced by independent artists in the overall market. Addison Rae has a combined following of over 100 million between TikTok and Instagram alone, and she has leveraged her position to independently put together an...

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IFPI confirms global recorded music revenue growth

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Mark Mulligan

23 Mar 2021

Business Strategy

Last week MIDiA reported that recorded music revenues grew by 7% in 2020. Today the IFPI confirmed that figure, reporting 7.4% growth. (Similarly, the IFPI reported 19.9% growth for streaming, MIDiA had 19.

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The billion-dollar content play: Why Amazon is intentionally overpaying for its NFL rights

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Tim Mulligan

22 Mar 2021

In March 2021, the sports ecosystem breathed a collective sigh of relief. The NFL, the world’s most valuable sports league, secured an 11-year broadcast deal worth a staggering $100 billion (via CNBC ).

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Recorded music revenues hit $23.1 billion in 2020, with artists direct the winners – again

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Mark Mulligan

15 Mar 2021

Recorded music revenue 2020

musc revenues 2020

label market shares 2020

The global pandemic caused widespread disruption to the music business, in particular decimating the live business and impacting publisher public performance royalties. Although the recorded music business experienced a dip in the earlier months of the pandemic, the remainder of the year saw industr...

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Recorded music market 2020
Pandemic-era growth

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Mark Mulligan

March 2021

Streaming

Streaming Music

Recorded music

The global pandemic turned the music industry upside down. While live was decimated throughout 2020, after an initial downturn, the recorded music market returned to growth and finished the year with an acceleration that suggests a strong 2021 lies ahead.

Native Instruments and iZotope: creator tools major in the making

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Mark Mulligan

11 Mar 2021

Business Strategy

At the start of the year private equity firm Francisco Partners acquired a majority stake in creator tools stalwart Native Instruments. It always looked like it was going to be the start of something big and today we saw the next step on Native’s new journey, with leading audio plugin company iZot...

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Disney+ at 100 million: The second shockwave of the D2C big bang moment has begun

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Tim Mulligan

10 Mar 2021

At its annual shareholder meeting yesterday, Disney announced that Disney+ had reached the 100 million subscriber mark in the 16 months since it first launched. For comparison, global subscription video on demand (SVOD) leader Netflix has taken 14 years to reach 203 million subscribers.

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Smaller independents and artists direct grew fastest in 2020

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Mark Mulligan

1 Mar 2021

Streaming Music

Independent labels

Last year we identified a small but crucial metric from Spotify’s annual report: the share of all streams accounted for by majors and independent licensing body Merlin. It was crucial because it enabled us to segment the streaming market in detail, when combined with market data from majors and in...

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Spotify Q4 2020 earnings
ARPU pays the price for growth

Cover image for Spotify Q4 2020 earnings

Mark Mulligan

February 2021

Subscriptions

Streaming

Streaming Music

In 2020 Spotify accelerated the growth of its total user base, with emerging markets playing a key role. However, revenue increases became decoupled from user growth across all categories, resulting in ARPU deflation. Companies and brands mentioned in...

Paramount + gets ready to compete outside the traditional video streaming lane

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Tim Mulligan

25 Feb 2021

Yesterday was a big day for ViacomCBS. The year of integration and uncertainty following the merger of Viacom and CBS in December 2019 has finally ended. The core rationale behind both key constituents of the National Amusements media empire to join together is now coming to fruition.

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Esports’ critical mass challenge: Solutions are beyond games

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Karol Severin

19 Feb 2021

cross-entertainment strategy

Esports have been receiving much coverage in recent years – from sold-out arenas, through to record-breaking live streaming events, right up to the formation of news outlets which solely cover esports.

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Last call for the global independent label survey

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Mark Mulligan

18 Feb 2021

Independent label survey

Independent labels

With 2020 now comfortably behind us and public companies in their earnings cycle, a clear picture is starting to emerge of how the global recorded music market performed. MIDiA is midway through fielding the global independent label survey that will help create the definitive view of how the indepen...

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Sports audiences
The Gen Z opportunity

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Alistair Taylor

February 2021

Apple

Apple

Spotify

Digital natives are more likely to consume non-live sports than older, traditional sports fans, which presents rights holders and broadcasters with untapped potential for monetisation by harnessing and actioning this insight. While the most valuable sports audience currently remains among pay-TV subscribers, planning for meaningful non-broadcast re...

Driving cross-generational appeal in entertainment universes

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Karol Severin

8 Feb 2021

cross-generational

Building and maintaining cross-generational appeal in entertainment is hard. A key challenge is in catering to seemingly wildly different consumer segments with the inherent risk of targeting ‘kind of everybody’ , which may lead to true fandom with nobody.

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Sony just became (even more of) an independent powerhouse

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Mark Mulligan

1 Feb 2021

Sony Music has bought AWAL (and Kobalt Neighbouring Rights) from Kobalt for $430 million . By adding AWAL to its already-booming Orchard division (as well as other distribution companies), it now has leading brands for independent artists as well as independent labels.

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The Great Reaggregation
Lockdown, Demand and Consolidation

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Tim Mulligan

January 2021

Amazon

Amazon

Apple TV

COVID-19 removed the constraints imposed by peak attention, leading to a surge in home-based entertainment consumption and streaming adoption. Fortuitous timing, enforced home working and the end of the commute, tied in with the need to entertain home-bound children, has greatly accelerated direct-to-consumer (D2C) adoption.

Music and Games Partnership Strategy
Beyond the Comfort Zone

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Karol Severin

January 2021

Apple

Spotify

Spotify

Music companies are flocking to explore partnerships with games companies. Seeking a foothold in a fast-growing market, music companies are often looking for easy wins that fit traditional licensing models that monetise consumption. These however, typically do not align with the games industry’s spend-centric worldview.

Equitable remuneration, artist income and unintended consequences

Cover image for Equitable remuneration, artist income and unintended consequences

Mark Mulligan

29 Jan 2021

Streaming economy

streaming inquiry

equitable remuneration

The UK Parliament’s inquiry on the economics of streaming appears to be building a case for equitable remuneration (ER). There are many iterations of what ER can mean, but a simplified description of what is in play here is: a share of streaming revenue being paid directly by the DSPs to an entity...

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Why FuboTV is going big on Sports Betting

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Tim Mulligan

25 Jan 2021

On January 12th, the six year old US-based subscription streaming service FuboTV announced that it was acquiring sports betting and gaming specialist Vigtory. This followed on from company announcements made at the end of last year about the importance of sports betting becoming a significant new re...

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Football looks to build digital engagement through Fortnite collaboration

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Alistair Taylor

22 Jan 2021

Endeavor-owned IMG, acting as Epic Games’ licensing representative, has brokered deals with 23 football clubs to appear in the publisher’s free-to-play battle royale-style game Fortnite. Looking to capitalise on an increasingly valuable market, with diversifying revenue streams a paramount objec...

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