Music deals -- Week 14 2021

Spotify has acquired Betty Labs, the creators of e-sports live audio app Locker Room. Terms of the transaction were not disclosed. The music streaming company said the acquisition "builds on our work to create the 'future formats of audio' and will accelerate Spotify’s entry into the live audio space." Spotify said it will "evolve and expand" Locker Room in the coming months into "an enhanced live audio experience for a wider range of creators and fans."

“Creators and fans have been asking for live formats on Spotify, and we’re excited that soon, we’ll make them available to hundreds of millions of listeners and millions of creators on our platform,” said Gustav Söderström, Chief Research & Development Officer at Spotify. “The world already turns to us for music, podcasts, and other unique audio experiences, and this new live audio experience is a powerful complement that will enhance and extend the on-demand experience we provide today.”


Apple and Google's parent company Alphabet have both backed a $50 million series B funding round for artist-services start-up UnitedMasters, according to a Bloomberg report. “The power in the music industry has shifted back into the hands of the artist,” said former Universal Music Group and Sony Music Entertainment executive Steve Stoute, founder of UnitedMasters. “We are taking that power and using it to place the industry’s intellectual property back into the hands of its rightful owners.” United Masters currently has more than 1 million artists on its platform and allows artists to release music directly to streaming services via Android or Apple. The platform either takes a 10% revenue share, or leaves 100% of all revenues against a a $5 monthly subscription fee. Apple acquired A&R and distribution company Platoon in 2018.

Short-form video platform TikTok has signed a multi-year licensing agreement with the Southern African Music Rights Organisation (SAMRO) and Composers Authors and Publishers Association (CAPASSO). The deal will ensure that songwriters, composers and music publishers represented by these two organisations will receive royalty payments when their music is used on the platform. Through CAPASSO's existing partnerships, the agreement will cover 58 territories across the African continent, and includes repertoire belonging to 21 separate collective management organisations. CAPASSO will administer the agreement on behalf of thousands of their members and affiliate members.  

Electronic music company Insomniac has signed a deal with music technology company Feed Media Group (FMG) that will see the label's catalogue integrated into FMG's Adaptr library for licensing by start-ups and up-and-coming apps. Adaptr allows subscribers to build a library of tracks from the service’s catalogue and make them available on-demand in their apps. Insomniac joins Warner Music Group, BMG, Entertainment One (eOne), Equal Vision Records, Vio Mobile, and A-Train Distribution as part of Adaptr's offering. To qualify for access to Adaptr's services, start-ups must have raised less than $7.5 million in funding, and their app must be earning less than $4.5m in annual revenue. 

Sony Music Publishing India has signed a worldwide agreement with Anand Audio, a leading label operating in the Kannada music genre. The new partnership will see SMP provide publishing, administration, and synchronisation services to Anand Audio’s catalogue of songs, and also "work to deliver new, global opportunities to Anand Audio’s community of songwriters." Based in Bangalore, Anand Audio was founded in 1999, and its catalogue represents over 5,000 tracks, over 700 original Kannada film soundtracks of Kannada Films, and over 1,000 devotional songs. It also operates a series of YouTube channels in India, attracting over seven million subscribers. Anand Chabria, Owner of Anand Audio, said the agreement will allow "to find greater monetisation opportunities for our musical stakeholders."


Warner Music Group’s ADA Worldwide is launching a joint venture label named icons+giants with veteran music executives Billy Mann and Benton James. “Billy and Benton are defining what comes next in music – they are on the cutting edge of this business, and we are so proud to be their partner and for ADA to be their home," said Eliah Seton, President of Independent Music & Creator Services at WMG.

US rapper Saweetie has extended her publishing agreement with Warner Music Group's  publishing unit Warner Chappell Music. "We’re in the business of taking early bets on artists and helping develop them into global sensations, and that’s exactly the trajectory Saweetie is on. She’s well on her way to becoming the next big female breakout star, and we’re so proud to be able to continue to support her," said Warner Chappell Music President of A&R, US, Ryan Press. Saweetie is signed to WMG's label Warner Records.