Welcome to Music Enterprise Worldwide’s weekly round-up – the place we be certain that you caught the 5 greatest tales to hit our headlines over the previous seven days. MBW’s round-up is supported by Centtrip, which helps over 500 of the world’s best-selling artists maximise their revenue and cut back their touring prices.
It’s honest to say that Common Music Group‘s newest monetary outcomes this week introduced excellent news for buyers within the firm – and buyers in music extra typically.
That’s due to the essential stat that MBW pored over yesterday (March 2), which confirmed that UMG’s annual turnover from recorded music subscription streaming grew by 10.0% year-on-year (at fixed forex) in 2022 – sustaining, simply, the double-digit yearly development the music business has grown used to in latest instances.
Throughout UMG’s total enterprise (data, publishing, and different actions), the corporate generated EUR €10.34 billion (USD $10.87bn) in 2022, up by a powerful 13.6% YoY at fixed forex
Elsewhere, this week, MBW ran an in-depth report on HYBE, its relationship with Scooter Braun, and the motivations behind HYBE America’s $300 million acquisition of US hip-hop specialists High quality Management final month.
Tl; dr? HYBE is determined to dilute its continued business over-reliance on BTS, particularly contemplating the Ok-pop superstars are on hiatus (as a result of army commitments) till 2025. Might High quality Management be the agency’s golden ticket to rising vital market share in a unique world of music?
Additionally reported this week: Deezer, the Paris-headquartered streaming platform, introduced its 2022 FY outcomes. Annual income was up 10.6% YoY to EUR €451 million, whereas working losses stood at €167 million.
Deezer had extra huge information, too: Former Warner exec, Stu Bergen, has joined the corporate’s Board as a Director, succeeding Amanda Cameron (aka: Amanda Ghost), who has stepped down from her tasks with the corporate.
In the meantime, prior to now few days, the US Home International Affairs Committee voted on a invoice that TikTok actually didn’t like, as Lyric Capital, mum or dad firm of Spirit Music Group, raised $800 million in a mixture of funding and senior debt. It’s going to purchase copyrights with the money.
Right here’s a style of what occurred on MBW this week…
1) UNIVERSAL MUSIC GROUP GENERATED MORE THAN $1BN PER QUARTER, ON AVERAGE, FROM RECORDED MUSIC SUBSCRIPTION IN 2022
Zooming out and taking a look at UMG’s holistic enterprise – throughout recorded music, music publishing, merch, and associated exercise – Common posted full-year revenues of €10.34 billion ($10.87bn) for 2022, up by a powerful 13.6% YoY at fixed forex.
In This autumn 2022, these total revenues grew by 8.8% YoY, to €2.942 billion.
2) SCOOTER BRAUN AND HYBE WANT TO BUILD A ‘MAJOR’. HOW DOES THEIR $300M BET ON QUALITY CONTROL FIT INTO THAT AIM?
An important post-BTS technique for HYBE?
A “multi-label construction” which, it says, will “proceed to create music and set up artists that may resonate with our followers”.
Final yr, the corporate stated it was “trying to M&As and establishing joint ventures in order that we might increase on our multi-label construction each in and outdoors of Korea”.
Added HYBE: “We wish to [merge with/acquire] numerous labels, administration [firms] and another corporations that pursue companies associated to musical mental property.”
Enter High quality Management.
New York-based personal fairness agency Lyric Capital Group, mum or dad firm of Spirit Music Group, has efficiently closed its second fund, with whole commitments of roughly $410 million.
As well as, the agency additionally raised senior debt financing to convey Lyric’s new deployable capital to over $800 million.
Lyric says that it exceeded its funding goal, with “help from a various group of latest and present institutional buyers”.
4) DEEZER GENERATED OVER $470M IN 2022, WITH AN OPERATING LOSS OF $175M. IT JUST NAMED STU BERGEN AS A DIRECTOR ON ITS BOARD.
Paris-listed streaming firm Deezer has a brand new Director on its Board: former Warner Music Group government, Stu Bergen. The appointment is efficient instantly.
Bergen was previously the long-time CEO of Warner’s Worldwide Recorded Music operations outdoors the US and UK. After 14 years at Warner, he left the most important music firm in January 2021.
There’s a long-running hyperlink between Deezer and WMG, in fact: Warner Music Group’s controlling shareholder, Entry Industries, can be a shareholder within the music streaming agency.
5) Home panel approves invoice that would result in whole TikTok ban within the US
One other day, one other political hurdle for ByteDance-owned app TikTok.
On Wednesday (March 1) the US Home International Affairs Committee voted to advance a invoice that might successfully give President Joe Biden powers to ban TikTok within the US.
“A U.S. ban on TikTok is a ban on the export of American tradition and values to the billion-plus individuals who use our service worldwide,” stated a TikTok spokesperson.
“We’re disenchanted to see this rushed piece of laws transfer ahead, regardless of its appreciable damaging affect on the free speech rights of thousands and thousands of Individuals who use and love TikTok.”
MBW’s Weekly Spherical-Up is supported by Centtrip, which helps over 500 of the world’s best-selling artists maximise their revenue and cut back their touring prices.Music Enterprise Worldwide