In The Know: SoStereo's Weekly Music News Summary October 5, 2018

SoStereo's weekly music news summary with Tencent Music's IPO, Ticketmaster facing a lawsuit and more.
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Ticketmaster Being Sued Over Alleged Secret Scalping Program:

Ticketmaster is now dealing with a class action suit over its alleged program that encourages scalpers to buy tickets and resell them on Ticketmaster’s platform. This scheme would net the company more money in fees. They have been accused in a CBC and Toronto Star report of violating their own terms and conditions and ignoring scalpers who create multiple accounts to quickly buy and sell tickets on Tradedesk. Now they are being sued for this as the complain reads, “now it has been caught secretly permitting, facilitating and actively encouraging the sale of tickets by scalpers on the secondary market using its TradeDesk platform — all for a second cut on those sales."

Read more here.

Tencent Music Files For U.S. IPO:

Tencent Music filed for its U.S. IPO this week. Owned by Chinese tech giant Tencent, Tencent Music dominates the Chinese market with over 800 million users. It hopes to raise $1 billion in the IPO. According to Tencent’s filing, the company reported a profit of $263 million for the first six months of 2018, with revenue of $1.3 billion. They are one of the few profitable streaming services as most still struggle to do so. They have some work to do to sell their product to the West, but they can use their connection to Spotify to help. In a share swap last year, Tencent owns a 7.5% stake in Spotify, while Spotify owns a 9.1% stake in Tencent Music.

Read more here.

Groove Magazine Shutting Down Print Edition After 30 Years:

In a trend seen all across the magazine business, notably the music magazine business, Groove Magazine has announced it is shutting down its print edition. It cites poor ad sales, bad kiosk sales and the changing nature of digital services. Piranha Media GmbH, who have owned Groove since 2004, said via RA, "In a time of Spotify, YouTube, social media and the ever-increasing speed of record releases, there is no way a bimonthly journal can stay on the pulse and thus continue to remain relevant." Its final physical copy will be serviced this month.

Warner Music Group Launches Seed Investment Fund:

The record business is looking good. Warner Music Group has launched a seed-stage investment fund called WMG Boost, which will support “entrepreneurial growth and innovative thinking” in the music business. It will look to support companies in and around the music business in areas such as AI, blockchain, voice, mobile gaming and more.

Read more here.

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