Tag Archives for " Universal Music Group "
Who says that there’s no money in streaming? It seems that all of those micro-payments add up after all as Universal Music Group is making about $3.9 million per day just from streaming music, according to its parent Vivendi’s first quarter earnings statement.
In fact, UMG’s streaming revenue was up almost 60% over the previous quarter, which amounted to more income than from downloads, which were down 32% from the year before. Yes, it’s true, fewer and fewer people want downloads after they experience the joys of streaming.
With all things factored in, streaming was responsible for 34% of UMG’s total income, versus 22% for downloads, and a surprising 27% for physical product.
So here’s the scary part – the first quarter of the year is usually rather quiet in terms of front line releases by the company’s major stars, and this year was no exception. That more or less plays into the streaming increase since there are fewer sales. But with Drake absolutely crushing it with his latest release (he just posted the records for most streams in a week – 247 million), which isn’t counted in the report, it looks like that increase will continue on a similar trajectory.
Of course, the real real issue here isn’t how much Universal Music made, since we know that labels do better than OK from streaming revenue, it’s how much it actually paid out to its artists. That will continue to be the problem going forward, as the record label is always the main repository of revenue from just about any distribution sources. It’s then up to the artist (and his legal representatives) to have a strong deal in hand to get a fair piece of that income.
Still, you can bet that the majority of that income stays in the hands of the label. Some things just never seem to change, regardless if we’re living in Music 4.1 or not.
I’m a big proponent of virtual reality, especially when the audio is done well, and many have predicted that the technology will eventually be a boon to concerts. We’re going to see soon enough as virtual reality concerts will actually begin to roll out this summer.
NextVR, which has been a leader in VR broadcasting of sporting events, has teamed up with LiveNation to broadcast a series of concerts, although no artists have been named as of yet. There will be a limited number of VR music events this summer, with a full schedule planned for 2017.
The NextVR broadcast will be available via Samsung’s Gear VR using the Oculus Home app, although they will also most likely be available on other VR platforms as well.
LiveNation/NextVR aren’t the only companies jumping into the concert broadcast game. iHeartRadio and Universal Music Group previously announced that they would also broadcast VR concerts this year.
Virtual reality concerts hold great promise because it gives the viewer a feeling of actually being there and watching from the best seat in the house, which many feel may eventually eclipse attending an event. Paying $200 for a nosebleed seat might not be a suitable option when you can get a better view from your home while still feeling immersed in the event.
The same can be said for sporting events as well, as NextVR recently signed a 5 year deal with Fox Sports, although there may be more technical challenges in this niche than with music as the best seat in the house may not apply, although it’s probably too soon to really tell. VR users will ultimately decide.
One thing’s for sure, VR is taking beginning to take off, even though it still hasn’t hit the general public yet, as more and more companies are jockeying for position.