Who is exporting music? Europe is Out, Puerto Rico is in.

Hi everybody,

Welcome to the end of another week and another edition of Indie Insider! In this week’s rundown, BMI is suing SiriusXM, but over what? Which country beat out the entire EU, the UK, South Korea, and Nigeria to become the world third largest exporter of music? And finally, why have EU countries stopped producing global superstars? All of that and rich analysis is below. First, a quick word from our sponsor, my company, Habitat Financial. Are you looking for better ways to pay your artists? How about more transparent reporting tools or a custom branded analytics portal for your artists? Look no further than Habitat Financial the best-in-class financial management platform for labels, publishers, and music distributors. Habitat’s financial tools including royalty processing, payments, expense management, bookkeeping, tax prep, invoicing tools and more. With plans that fit every budget, Habitat will help you run your business and save you money in doing so!

Ok on to the news.

BMI Files Rate Court Action Against SiriusXM: A Battle Over Songwriter Royalties

The relationship between music creators and streaming platforms has reached another boiling point, with BMI (Broadcast Music, Inc.) filing a rate court action against SiriusXM. At the heart of the dispute is SiriusXM's attempt to lower the payments it makes to songwriters, composers, and publishers—an alarming trend that could impact music creators' livelihoods. BMI, representing songwriters and publishers, is standing firm against this move, arguing that SiriusXM is undervaluing the very creators who provide the content that powers its platform. 

For independent songwriters the BM’s willingness to take on this fight is emblematic of the broader battle to ensure fair compensation in the streaming era. It is also one of BMI’s bigger moves since transitioning to a for-profit model suggesting that perhaps the financial interest of the company and its members are better aligned than many thought. As more artist/songwriters release their music without traditional support, the terms negotiated by PROs and streaming services will more directly affect them. While large-scale industry disputes like this might seem distant to artists, the results will have a direct impact on their bottom line. If you’re an artist who is also a songwriter, make sure you take the time to learn about the role of PROs an register with your local society.

Local Artists Dominate EU Charts, But Europe Struggles with Global Music Exports

A new report from the IFPI reveals that local artists are dominating music charts across Europe. From France to Germany to Italy, local music has surged in popularity, capturing the attention of regional audiences. Regular readers will recognize this a symptom of glocalization and probably be annoyed that I’m discussing its effects yet again.

However, this week we introduce a wrinkle in the narrative! Despite this local success, the new data shows that Europe is struggling when it comes to exporting its music globally, particularly compared to the cultural reach of artists from the U.S. and Latin America. Europe’s share of the global music export market has stagnated, raising concerns about the continent’s ability to compete on the global stage.

This imbalance comes at a time when the international music scene is more interconnected than ever. With streaming platforms offering near-universal access, European artists have unprecedented opportunities to reach international audiences. However, many artists from the continent still face barriers in global recognition, often overshadowed by Anglo-American or Latin artists. Language, marketing strategies, and international partnerships play a significant role in this disparity, highlighting the need for Europe to focus more on building export infrastructure that supports local artists beyond their borders. 

For indie artists based in Europe, the report underscores both the potential locally and the challenges of building an international fanbase. While European audiences are clearly embracing local talent, achieving cross-border success requires a deeper understanding of global markets, strategic partnerships, and digital distribution tactics.

Puerto Rico's Music Export Boom in 2023: A Global Force Emerges

2023 was a standout year for Puerto Rico's music exports, with the island’s artists making significant waves on the global stage. Unlike the situation in Europe, Puerto Rico’s success can be largely attributed to its strong embrace of digital streaming platforms and strategies, as well as its ability to tap into the broader Latin music movement.

Stars like Bad Bunny, Rauw Alejandro, and Anuel AA have become household names not only in Latin America but across the globe. Their music has topped global charts, driven billions of streams, and even influenced mainstream pop and hip-hop in the U.S. This success has also paved the way for emerging artists from Puerto Rico, who are finding it easier to gain visibility and recognition in international markets, creating a self-sustaining export ecosystem.

For independent artists in Puerto Rico, this surge in global recognition opens up new opportunities. The international demand for Latin music shows no signs of slowing down, and Puerto Rican artists are well-positioned to capitalize on it. The success of Puerto Rico's music industry offers valuable lessons to indie artists around the world about how to navigate and thrive in a competitive global market by blending authenticity with commercial appeal.

Alright that’s all I’ve got for this week! 

Take it easy and enjoy your weekend,

Calvin