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THE BUSINESS OF MUSIC www.musicweek.com


PUBLISHING 12


MusicWeek analyses the UK market’s performance– with Sony/ATV out in front


FESTIVALS 15


A previewof some of the great and the good festivals coming this summer


Don’t get carried away, but...


The BPI figures only take into


LABELS  BY TIMINGHAM


A


fter a decade of downward arrows, mainstreammedia


lashings and widespread redundancies, the first fragile green shoots of a digitally-driven return to growth for theUKrecord industry have emerged. According to BPI


figures obtained byMusic Week, recordedmusic revenuesgrewyear-on-yearby 2.7%inQ12012to£155.8m. Significantly, this upswing was


made possible by a landmark tipping point in the shift from physical to digital sales:


 Digital music revenues accounted forMORETHAN HALF (55.5%) of UK record


industry revenues in Q1;  Income from paid-for subscription streaming services DOUBLED year-on-year, up 93% to just under £9m;


Bruno Mars: The songwriter has re- signed with BMG


 Income from ad-supported streaming services JUMPED by


20% YoY to £3.4m;  Digital income from all sources including download, subscription and ad-supported services GREWby almost a quarter (23.6%) YoY to £86.5m – as revenue from physical formats fell by 15.1% to £69.3m.


account recordedmusic sales – excluding anymerch and live revenues accrued by labels. BPI chief executive


Geoff Taylor said: “This is a significant milestone in the evolution of the music business. “UK record


labels have


embraced digital to their core, supporting


innovation and licensing more new


online and mobile services than any other country.As a


result, the industry’s prospects for growth look brighter than for several years. “We will need to see this


trend repeated over several quarters to say we have crossed a digital Rubicon. “However, the creativity,


investment and digital expertise of the British music industry point the way forward for growth in the UK economy.”


22


01.06.12 £5.15 PRODUCT


Fifty years after they released LoveMe Do, the Fab Four’s


YellowSubmarine is remastered UK RECORD INDUSTRY GROWS IN Q1 AS DIGITAL REVENUES OVERTAKE PHYSICAL FOR FIRST TIME


‘NOWGOVERNMENT MUST SUPPORT US’ Christian Tattersfield, CEO,


Leading UK recorded music execs have called for timely legislation from Government to ensure Q1’s surprise market growth doesn’t become a flash in the pan: Andria Vidler, CEO EMIMusic


UK & Ireland: “At EMI, our organisation and teams have been set up in a way that reflects this shift in the business, as the market has been moving this way for some time now. “We’ll continue


“The Coalition Government must helpmake this the inflection pointwe all want it to be”


CHRISTIAN TATTERSFIELD, WARNER


to work with all our retail partners to give themthemusic that their customers want in the ways they want, and we look forward to the full implementation of the Digital Economy Act to help grow the market further.” Nick Gatfield, chairman and


CEO, SonyMusic UK: “In spite of the ongoing challenges that are facing themusic business this is the strongest signal we have had yet that real transformation is taking place and that we are on track to return to sustained growth over the next two to three years."


WarnerMusic UK: "The news that digital revenues have overtaken physical this quarter is very encouraging. But for this to become the inflection point we'd all like it to be, the Government needs to providemeaningful support to the creative industries that enrich the UK - both culturally and economically. ”[The Coalition]


must step up the pressure on illegal websites


which undermine the legitimate services that compensate artists for their work and preserve investment in discovering and developing the Britishmusic stars of the future." David Joseph, chairman and


CEO, UniversalMusic: “The figures show a very encouraging picture of amarket returning to growth. It’s been amuch talked- aboutmoment, but the promise of a new shape to themusic market is finally being realised. The doubling of revenues from subscription services is particularly impressive.”


BMG celebrates surpassing seven-figure copyrights barrier


The totalnumberofpublishing copyrightsmanagedbyBMGhas exceededonemillion, less than four years after the formation of the company in October 2008. The firmestimates


that the figure puts it


fourth in theworldwide rankings ofmusic


publishing companies, following the announced takeover ofEMI Music Publishing by a consortiumled by Sony/ATV. As ofMay 29,BMG


represented 1,057,858 copyrights - equating to approximately 59,000 hours of continuousmusic. BMGCEOHartwigMasuch said: “Our growth has been based


not just on a clear plan to achieve scale,but a distinct philosophy aboutwhat a 21st centurymusic company should look like.” BMGhas acquired the likes of


CrosstownSongs,CherryLane, Chrysalis andBugMusic since splitting fromSony four years ago. “Acquisitionwas anecessary tactic to achieve scale,butwe are


proud tohavewalked away from dealswe feltwere over-priced,” saidMasuch.“Further acquisitions will inevitably arise,but our focus is verymuchongrowing our business organically,and ensuring we canservicewriters’and artists’


needs at every level.” Read ourHartwigMasuch Big Interview-Page 10


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