welcome to world music businessweekly roundup – guaranteed to catch up on the 5 biggest stories making headlines over the past 7 days. MBW Roundup is supported by: Centriphelps over 500 of the world's best-selling artists maximize income and reduce touring costs.
This week was also a week filled with the following news. universal music groupIt's not just a licensing battle with tick tock (Although it certainly played a role).
Another sign is that afrobeat has become a major global phenomenon and UMG has acquired a majority stake in the Lagos-based company. Maybin GlobalIt is known as the label that has made many Afrobeats artists famous worldwide.
A few days later, UMG confirmed its next plans. “Redesign” of organizational structurethis will include layoffs and give the company some relief $270 million By the end of 2026, all of that will be in EBITDA.
Meanwhile, the battle between UMG and TikTok seems to have escalated this week with the launch of TikTok Delete UMG's publication catalog days before the license expired (in contrast to UMG's catalog of recordings, which began disappearing from the platform last month).
Comments from UMG Chairman and CEO on UMG's latest financial results announcement Sir Lucien Grainge and EVP/Chief Digital Officer michael nash Grainge insisted there should be „no free riding“ on TikTok, and Nash did not hint at the possibility of an early resolution. consumer shift When you move from TikTok to other platforms, economically beneficial to UMG.
UMG It also reported that it generated revenue Euro 11,108 million euros In 2023, we will achieve our goals in all departments (including music recording, publishing, etc.).Sales for the fiscal year increased 11.1%YoY comparison Convert in fixed currency, 12,011 million dollars Based on the annual average exchange rate published by the European Central Bank.
Finally, in non-Universal news (and another sign that the majors are serious about it) Superfan monetization), warner music group CEO Robert Kinkle When I attended a conference in Doha, Qatar, WMG said,super fan app”
universal music group (UMG) acquires majority stake in music company based in Lagos, Nigeria Maybin Global (Maybin).
UMG describes Maybin as „the driving force behind many things on the continent.“ afrobeat Artist.”
Founded in 2012 by artists, producers, music executives, and entrepreneurs. michael collins agere (alias don jazzy), Maybin has played a key role in breaking Afrobeat artists within Africa and globally.
According to UMG, Maybin “maintain autonomy' strategy and future human resource development. As part of the deal, founder and CEO Don Jazzy and his COO Tega Ogenehobo I will continue to lead the company.
The transaction remains subject to regulatory approvals and is expected to close by the end of the third quarter of 2024…
battle between tick tock and universal music group We have just entered an important new phase.
TikTok confirmed on February 27 that it had already begun deleting it. Universal Music Publishing Group (UMPG)'s songs available on its platform – 3 days before the UMPG catalog was no longer allowed for use on TikTok.
As if you needed a reminder, UMG's Distributed Recording Catalog (approx. 3000000 Tracks) were no longer allowed on TikTok on February 1st after an agreement with UMG. part time danceThe platform, owned by , publicly expired on January 31, 2024.
Mega hit songs by megastars affiliated with UMG Taylor Swift, olivia rodrigo, billie eilishand more people have gone silent on TikTok in the past few weeks as a result of copyrighted content being removed…
„He has my number…call me! They know where we are. Let's stop talking on the goddamn internet and see what you have to say.“ ”
Sir Lucian Grainge I didn't say anything about the TikTok CEO. Shu Gee Choo today. This is actually Noel Gallagher's comment about his brother's hopes for an Oasis reunion.
However, Grainge had this to say about the escalating licensing battle with UMG: tick tockUniversal's Q4 2023 earnings call this week was less than a million miles away.
Mr. Grainge was asked: guggenheim Analyst michael morris Whether UMG and TikTok are closer or further away from a new licensing agreement that satisfies UMG's notorious concerns about the terms currently being offered. part time dance.
“Especially (regarding the TikTok issue)…we are friendly people,” the UMG boss said. „Unfortunately, my phone is open 24 hours a day. I hope they can find a solution.“
But at this point, those „solutions“ don't seem to be coming any time soon…
universal music group Details were revealed on February 28th. “Redesign” of organizational structureit is said to generate 250 million euros ($270 million) Savings on annual costs.
UMG believes that this „redesign,“ which includes „reductions in headcount,“ aka layoffs, will 75 million euros ($81 million) Cost savings in 2024 (compared to 2023).
These annual cost savings (vs. 2023) extend to: 125 million euros 2025, before finally reaching 250 million euros By the end of 2026.
UMG states that all of these annual run rate savings areIncrease in EBITDA” – IE directly improves a company’s profit margins.
UMG said in a note to investors on Wednesday that it will achieve its annual cost savings target of 250 million euros through a „combination of headcount reductions and other operational efficiencies.“
On Tuesday (February 27th), warner music group CEO Robert Kinkle I attended the technology conference „Web Summit“ held in Doha, Qatar.
Kyncl participated in a session titled „Artists, CEOs, and the Future of Music,“ and on stage featured actress and singer, Nora Fatehi – Reported to be the most followed Moroccan artist in the world and just signed a global recording deal with Warner Music Group.
Nora Fatehi is also major. bollywood star, becoming the first Arab-African artist to reach 1 billion views for a single music video. YouTube.
During their discussion, Kyncl and Fatehi discussed developments around artificial intelligence, the value of record labels, and the role technology will play in the future of the music industry.
Kyncl also announced that WMG has its own “super fan app“…”