June 14th | Publishing Revenues, Musical AI, Glocalization Confirmation

Hello everybody!

Welcome to the latest edition of the Indie Insider newsletter. Today is June 14th, and I’m just back from A2IM (American Association of Independent Music)’s Indie Week. It was great to catch up with so many friends and immerse myself for a few days in conversations about the challenges and promises of the independent music industry. I’ll be publishing an Indie Week recap in the next few days both here and on our long-form podcast feed, so if you’re interested in learning more about the major topics of conversation at this year’s conference, make sure you’re subscribed!

Our sponsor is Habitat Financial, the financial operation system built specifically for music businesses, and as always, we want to hear from you. Drop us a line on LinkedIn, or shoot me  an email at calvin@habitat.financial.

Alright, on to the news.

US Music Publishing Revenue Skyrockets 10.7% in 2023, Outpacing Recorded Music Growth

The US music publishing industry has seen a remarkable surge over the past few years, with revenues jumping by 10.7% in 2023 to reach $6.21 billion. Despite the challenges posed by Spotify's reduction in mechanical royalty payouts, the sector remains robust, thanks to increased paid music subscriptions and price hikes at major streaming services.

Why Should Indie Artists Care? This growth is a promising sign for songwriters and publishers, especially those working independently. The rise in publishing revenues indicates a healthy market where your songwriting and compositions can thrive. With streaming services continuing to expand and raise prices, there's a good chance that the pie for publishing revenues will keep getting bigger. For indie artists, this means more opportunities to monetize your music beyond just recording sales and streaming.

Recommendations

• Leverage Publishing Deals: If you haven’t already, consider securing a publishing admin deal to tap into this growing revenue stream. Songtrust and Sentric are great places for indie artists to start.
• Stay Informed: Keep an eye on industry developments, particularly with platforms like Spotify, to understand how changes might impact your earnings.
• Diversify Income: Explore various revenue streams within publishing, such as sync licensing for TV, films, and advertisements.

New Spotify Report Affirms "Glocalization" Theory as Royalties Generated by European Union Artists Triple in 6 Years

Spotify’s recent EU-specific Loud & Clear report highlights that royalties generated by EU artists have tripled over the past six years, driven by a trend towards local music preferences. In 2023 alone, EU artists generated €1.5 billion in royalties, marking a 16% increase from the previous year. This tracks with Will Page and Christopher Dalla Riva's findings and theories of Glocalization.

Why Should Indie Artists Care? The glocalization trend means that listeners are increasingly favoring local artists, which is fantastic news for indie musicians focusing on their home markets. This trend can help you build a strong local fanbase, which can serve as a foundation for broader, even international, success. It’s becoming less and less necessary for emerging musicians to make relocation decisions early on in their career.

Recommendations

• Focus on Local Markets: Prioritize building your audience locally. Engage with local media, perform at local venues, and connect with regional influencers.
• Utilize Spotify’s Tools: Make the most of Spotify’s data and playlist features to boost your visibility. Getting featured in editorial playlists can significantly increase your streams and royalties.
• Network Locally: Collaborate with other local artists and participate in community events to enhance your presence and support network.

Musical AI Unveils New Platform to Help License and Protect Rights-Holders in Generative AI Training

Musical AI (formerly Somms.AI) has launched a groundbreaking new platform designed to ensure proper attribution and compensation for copyrighted works used in AI training and generation. This platform aims to bridge the gap between rights holders and generative AI companies, providing tools for monitoring usage and ensuring fair compensation.

Why Should Indie Artists Care? As AI continues to cause various kinds of chaos in the music industry, protecting your intellectual property is only becoming increasingly critical. As with many advances in tech, the rate of innovation has far outpaced the speed of policy creation. Often it's products like Musical AI that are our first line of defense against bad actors. Their platform offers a means to ensure your work is not used without proper attribution and payment, which is vital for maintaining the value of your creations.

I had the pleasure of speaking with Musical AI co-founder Matthew Adell at SXSW. I've never met anybody more passionate about protecting artists and copyright holders from the near-term implications of generative AI. Check out their website to find out how you can stay ahead of the curve.

Recommendations

• Stay Updated on AI Trends: Keep informed about how AI is being used in music to understand the potential implications for your work.

That wraps up this edition of Indie Insider. As always, feel free to reach out and connect—I love hearing from fellow indie label owners and artists.

Cheers,

Calvin

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