Jan 10th | Spotify's big video test (plus: Blackstone continues playing in the industry)

Hi everybody,

I hope everybody is having a happy Friday—unfortunately, due to the fires in LA, I know many people with connections to the music industry are having some of the hardest moments of their lives. Even if you’re not based in LA, you probably know someone who is. Remember to check in with them, and if you’re able to help in any way, do so.

On a lighter, colder note, We’ve been having a proper blizzard here in the Midwest. As a result I’ve been cooped up inside listening to some great music that I missed from last year, and putting together my best of 2024 lists. Stay tuned for my entirely illogical and subjective opinions.

As per usual, Indie Insider is brought to you by Habitat Financial, the easiest royalty accounting platform for independent labels, distributors, and artists. Habitat has the flexibility to tackle any royalty accounting needs, and was designed by label owners, for label owners. Check out www.habitat.financial to learn more. Alright, onto the news:

?? Blackstone continues foray into music industry with acquisition of Citrin Cooperman

Private equity giant Blackstone continues its play in the music industry, now acquiring Citrin Cooperman, a leading accounting firm known for its expertise in catalog valuation. Here’s what you should know:

• Citrin Cooperman is the home of Barry Massarsky, a catalog valuation expert who has worked on deals with Downtown, Resevoir, Sony, Universal, SONGS, BMG, and Warner
• Blackstone also owns music powerhouses Hipgnosis and SESAC, signaling its growing interest in the industry.
• The investment from Blackstone will likely allow Citrin Cooperman to expand it technological capabilities and offer more services

?? Why the move? The music industry’s value is at its highest since the CD era and isn’t tied to traditional market fluctuations. For private equity, it’s a golden opportunity to diversify portfolios.

?? As we continue to see consolidation among large independent music companies expect to see more private equity activity. The current market environment is a natural playground for companies like Blackstone and New Mountain Capital

?? Spotify’s video ambitions evident with 48-hour exclusive access to The Weeknd concert film

Spotify continues to get more serious about video. The platform secured a 48-hour exclusive window for the premiere of The Weeknd’s “Billions Club Live” concert film—its biggest push into video yet.

• At 48 minutes, this marks a significant upgrade from earlier Spotify video features, which topped out at 6 minutes.
• The film features a social media style comment section, another first for Spotify

The “Billions Club” premiere is not the only sign that Spotify will continue leaning in to video. As of October 2024, Spotify music videos are available in 85 territories (but oddly not the US or Canada—yet).

?? Could this spark a music video renaissance? Industry voices like Eric Weiner of The Wild Honey Pie think so. Check out his Indie Insider interview for more insight.

?? Artists, take note: Deliver your music video content to Spotify if your distributor offers it.

?? UK Music Streaming Revenue Jumps 7.8% Thanks to Spotify Price Hikes

New data from the Entertainment Retailers’ Association shows UK streaming revenue hit ￡146.4M more in 2024 than 2023. Here’s what drove it:

• Spotify’s price increases—no surprise, given it holds over 50% market share in UK music streaming.
• With streaming nearing saturation, price hikes are becoming a critical growth strategy.

?? Bonus insight: Physical media sales are also on the rise, matching the growth pace of streaming. Old-school formats aren’t dead—they’re thriving.

That’s all for now—what do you think about these trends? Let us know! ??