Welcome to Music Business Worldwide’s Weekly Roundup – where we make sure you’ve covered the five biggest stories that made headlines in the past seven days The MBW Roundup is powered by Centtrip, which has over 500 the world’s best-selling artist helps maximize income and reduce tour costs

This week the music industry was shocked and saddened by the death of Michael Gudinski, the globally respected music entrepreneur and founder of the Mushroom Group March) died peacefully in his sleep at home at the age of 68. The music legend is honored at a state funeral in Melbourne, Australia

In the meantime, SoundCloud is an industry first to introduce what it calls “fan-based royalties” – a proprietary branding of the user-centric model – which will mean “any [SoundCloud] listener’s subscription or advertising revenue.” distributed among the artists who hear them rather than summarizing their pieces “

Elsewhere, Universal Music Group grossed $ 8 billion in 2020 and spent over $ 1According to parent company Vivendi’s latest financial results, it is $ 7 billion Euros attributable to catalog acquisitions and artist advances

The Jack Dorsey-run financial services company Square, Inc Acquires majority stake in TIDAL music streaming platform for $ 297 million, Jay-Z is expected to join Square’s board of directors upon completion

In addition, Middle Eastern Spotify rival Anghami has signed a merger agreement with publicly traded SPAC Vistas Media Acquisition Company The deal will result in Anghami being listed on NASDAQ in New York under the new symbol ANGH

Michael Gudinski, the world-renowned music entrepreneur and founder of the Mushroom Group, has passed away at the age of 68

Gudinski is survived by his wife Sue and children Kate and Matt and grandchildren Nine-Rose and Lulu

“It is with deep sadness that we announce the death of Michael Gudinski AM overnight,” said the Mushroom Group in a statement

“The popular Australian music legend died peacefully in his sleep at his home in Melbourne, Australia”

One of the most hotly debated concepts in the modern music rights business is user-centric licensing. This model pays streaming license fees based on the behavior of individual subscribers A percentage of each subscriber’s subscription fee is distributed only to the artists / labels they individually listened to that month

This model is in contrast to the current “prorated” streaming payout system, where all license fees for a service like Spotify are aggregated at the end of each pay period Thereafter, music rights holders are paid according to their market share of the total games on the platform

Obviously, the latter model benefits most global pop superstars the most The earlier model would bring more benefit to indie artists and niche genres like classical and jazz

Critics of the prorated model point out that it regularly results in a portion of a person’s subscription fee being paid to artists whose music they have not even played

Universal Music Group started 2020 with a slight, albeit significant, increase in sales: total annual sales across all businesses (including publishing and music recording) increased 47% year over year

But the really standout story for UMG last year – maybe music for those who hope it will get a gigantic rating in the coming months – was their earnings development

In 2020 UMG achieved total sales of € 743 billion USD ($ 8) 40 billion) with an EBITDA of € 1 49 billion USD (1 USD) 68 billion) This corresponds to an impressive annual EBITDA margin of 20%

As a result, Universal was down nearly 250 million in 2020 on an EBITDA basis USD (220 million EUR) more profitable than in 2019 …

Jack Dorsey-owned financial services company Square, Inc has reached a definitive agreement to acquire a majority stake in the music streaming platform TIDAL

Square expects to pay a $ 297 million mix of cash and stock for a “significant majority” stake. Existing artist shareholders will be the remaining stakeholders

According to the company, the acquisition “expands Square’s economic strengthening purpose into a new industry: musicians”

The media release added, “Artists are entrepreneurs with a dream and deserve access to the systems, tools and financial freedom to make those dreams come true at every stage of their careers“

Well-known Middle Eastern Spotify rival Anghami has signed a definitive merger agreement with publicly traded special purpose vehicle (SPAC) Vistas Media Acquisition Company Inc

The deal will result in Anghami being listed on NASDAQ in New York, with the combined company operating under the name Anghami and trading under the new symbol ANGH

The transaction implies an initial pro forma company valuation of approx 220 million USD or 25x 2022 estimated earnings The transaction is expected to close in the second quarter of 2021

Welcome to Music Business Worldwide’s weekly recap, where we make sure you got the top five stories of the past seven days in our headlines. MBW recap is powered by Centtrip, which includes over 500 of the world’s best-selling artists helps maximize your income and reduce your tour costs

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Michael Gudinski

World News – GB – MBW’s weekly roundup: Michael Gudinski, SoundCloud, Universal, TIDAL, Anghami – music business worldwide

Source: https://www.musicbusinessworldwide.com/mbws-weekly-roundup-michael-gudinski-soundcloud-universal-tidal-anghami/