From Universal’s new board of directors to Warner’s partnership with David Bowie: this is MBW’s weekly roundup
Welcome to Music Business Worldwide’s weekly roundup – where we make sure you’ve grabbed the five biggest stories that made the headlines in the past seven days. The MBW roundup is supported by Centtrip, which helps more than 500 of the world’s best-selling artists maximize revenue and reduce touring costs.
One of the biggest industry talking points of the year has given us a lot more to say this week.
Universal Music Group, which is expected to go public on the Euronext Amsterdam Stock Exchange on Tuesday, September 21, has released its pre-listing prospectus, giving potential investors a glimpse into what makes Universal’s wheels turn.
The document is a treasure trove of information about the world’s largest rights holder, revealing, for example, that no artist accounted for more than 1% of the company’s recorded music revenue in 2020.
We also learned who will make up the board of directors of the company after its listing in Amsterdam, and that the “Bolloré entities” of the French businessman and former president of Vivendi, Vincent Bolloré, will hold more than 7 billion euros. dollars of Universal shares after the IPO.
Meanwhile, NASDAQ-listed rival Warner Music Group of UMG announced this week that starting in 2023, it will represent David Bowie’s entire catalog of post-1968 recordings around the world.
This means that Bowie’s most recent recordings (2000-2016), which were released by Columbia / Sony Music, will become part of Warner’s repertoire. These albums will join Bowie’s recordings from 1968 to 1999, which Warner Music already represents.
Bowie’s upcoming catalog at Warner is the latest news in an emerging trend of some superstar artists making deals to bring their entire catalogs of recordings to major record labels.
Two other examples include Madonna, whose Maverick / Live Nation / Interscope (2012-2019) recordings will move to Warner Music in 2025, joining its classic Sire / Warner Bros catalog under one roof; and Aerosmith, whose Columbia / Sony Music recordings will go to Universal Music Group from 2022, and will be united with the group’s Geffen / UMG recordings from the 80s and 90s.
Elsewhere, the Recording Industry Association of America (RIAA) revealed this week that in the United States, on a retail basis, recorded music revenue in the market (money spent on streaming subscriptions, as well as physical and digital music) increased by $ 1.5 billion. or 27% year-on-year, to $ 7.1 billion in the first half of 2021.
Also this week, Live Nation Entertainment reached a deal to buy a controlling stake (51%) in Mexico-based concert promoter OCESA Entretenimiento for nearly $ 450 million, and the UK Competition and Markets Authority has announced that it was moving its investigation to the acquisition of Sony Music. AWAL to “Phase 2”.
Here’s what you need to know …
1) MEET THE NEW BOARD OF DIRECTORS OF UNIVERSAL MUSIC GROUP
Some 60% of Universal Music Group will be listed on the Euronext Amsterdam stock exchange on Tuesday, September 21, leaving current parent company Vivendi with just 10% stake in UMG.
This week we learned a lot more about the company
Universal is today – and will become tomorrow – via a prospectus published by UMG for its current and future shareholders.
In addition to key details about UMG’s finances, we also learned for the first time who will make up the company’s board after listing in Amsterdam….
2) US recorded music revenue increased by $ 1.5 billion in the first half of 2021 compared to the first half of last year
The US recorded music market has got off to a good start in the first six months of 2021.
On a retail basis, US recorded music revenue (money spent on streaming subscriptions, as well as physical and digital music) grew $ 1.5 billion or 27% year-on-year, to reach $ 7.1 billion in the first half of 2021 (compared to $ 5.6 billion in H1 2020).
This is according to the Recording Industry Association of America (RIAA), which confirmed these new statistics Monday, September 13 in its report on the revenues of the music industry in mid-year 2021. ‘.
Growth in the recorded music market in the first half of the year was primarily driven by music streaming, including paid subscription services, ad-supported services, digital and personalized radio, as well as music licensing on Facebook and digital fitness apps, which in total grew 26% to $ 5.9 billion in the first half of 2021.
3) THE ENTIRE DAVID BOWIE CATALOG ARRIVES AT WARNER MUSIC FROM 2023
Warner Music has announced that starting in 2023, it will represent David Bowie’s entire catalog of post-1968 recordings worldwide.
This means that Bowie’s most recent recordings (2000-2016), which were released by Columbia / Sony Music, will become part of Warner’s repertoire. They include albums like 2016’s Blackstar, plus Heathen, Reality, and The Next Day.
These albums will join Bowie’s recordings from 1968 to 1999, which Warner Music already represents.
Warner has been doing this since 2013, when the company acquired Parlophone Label Group for £ 487million – a forced divestiture of the Universal Music Group acquisition of EMI Music… ..
4) LIVE NATION BUY A MAJORITY PARTICIPATION IN THE LARGEST CONCERTS PROMOTER IN LATIN AMERICA FOR $ 450M
Event giant Live Nation Entertainment has reached a deal to buy a controlling stake (51%) in Mexico-based concert promoter OCESA Entretenimiento for nearly $ 450 million.
The deal, first reported by The Wall Street Journal, is expected to close by the end of this year, or early 2022, and is valued at 8.84 billion Mexican pesos (roughly $ 444 million).
Live Nation initially reached a deal to buy 51% of OCESA, Latin America’s largest concert promoter, for more than $ 400 million in the summer of 2019, but withdrew from the deal in May. from last year during the global concert crisis due to the COVID crisis…
5) WILL AWAL REALLY HAVE PROSPERED IF IT HAS NOT BEEN SOLD TO SONY MUSIC?
Sony Music has to get rid of AWAL due to a watchdog crackdown on UK competition: it’s not a prospect many in the music industry would appreciate.
Even Sony’s fiercest rivals – Universal and Warner – would surely have serious concerns about the “chilling effect” such an outcome might have in the market.
Then there’s the uncertainty for AWAL itself, not to mention its performers, which include Girl In Red, Finneas, and Little Simz.
Still, it’s a result that has taken another step towards becoming a reality today, with the UK’s Competition and Markets Authority announcing that it is moving its investigation into Sony’s acquisition of AWAL to the “Phase 2”….