Welcome to Music Enterprise Worldwide’s weekly round-up – the place we be certain you caught the 5 largest 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 scale back their touring prices.
Anybody following MBW’s protection of the worldwide music enterprise over the previous 12 months will certainly have observed one thing:
Barely per week now goes by with out attention-grabbing information about both a serious music rights deal, or a brand new, deep pocketed participant coming into the music rights acquisition house.
This week introduced information of each.
As we speak (January 14), we discovered that funding large Pimco has struck an alliance with BMG to collectively purchase music copyrights, and the importance of the agency coming into the fray is immense.
That’s as a result of Pimco has a portfolio of belongings value $2.21 TRILLION, greater than funding giants KKR (round $234 billion), Apollo International Administration (round $455 billion) and Blackstone (round $649 billion) mixed.
We additionally discovered this week that the acquisitive Major Wave Music Publishing has spent a collective $60 million on stakes within the catalogs of Paul Rodgers, and Gerry Beckley and Dewey Bunnell of America.
In accordance with the Wall Avenue Journal, each offers, valued at $20 million and $40 million respectively, came about on the finish of 2021 – a 12 months wherein MBW estimates, as reported on Monday (January 10), that a minimum of $5 billion was spent on music rights acquisitions.
As well as, as per the WSJ, Major Wave, which itself has over $1 billion to spend on music rights, “is gearing as much as spend $500 million to $600 million” this 12 months.
Elsewhere this week, Warner Music Group acquired outstanding African music distributor Africori, whereas Common Music Group Chairman and CEO Sir Lucian Grainge despatched a memo to UMG’s workforce to mark the brand new 12 months.
Right here’s what occurred over the previous seven days…
Photograph credit score: Giorgio Trovato
1) AT LEAST $5 BILLION WAS SPENT ON MUSIC RIGHTS ACQUISITIONS IN 2021. COULD 2022 BE EVEN BIGGER?
The music rights market was on hearth in 2021.
MBW estimates – based mostly on confirmed costs and data from business sources – that a minimum of $5.05 billion was spent on catalog and music rights acquisitions throughout the 60-plus big-money offers we reported on throughout final 12 months.
That determine consists of offers for particular person catalogs bought by artists and songwriters, plus acquisitions of music rights portfolios (together with these owned by energetic labels/publishers) by firms from different firms…
2) PIMCO, ONE OF THE WORLD’S BIGGEST INVESTMENT FIRMS, TURNS ITS ATTENTION TO MUSIC RIGHTS
In direction of the tip of final 12 months, MBW ran the now-infamous headline: Right here Come The Giants. It was in reference to a few heavy hitters from the funding neighborhood – Blackstone, Apollo International Administration, and KKR – deciding to cumulatively funnel billions of {dollars} into music rights acquisition.
As we speak (January 14), we study that one other towering identify from the finance world – Pimco – can also be coming into the fray.
The Monetary Instances stories that Pimco has struck an alliance with BMG to collectively purchase tune copyrights….
3) WARNER ACQUIRES AFRICA-BASED MUSIC DISTRIBUTOR AFRICORI
Warner Music Group (WMG) has acquired a majority stake in Africori, a outstanding African music distribution, music rights administration and artist improvement firm.
With places of work in Johannesburg, London and Lagos, Africori presently providers 7,000 artists and 850 shoppers and stories that in 2021, its artists generated a whole lot of hundreds of thousands of audio streams and billions of YouTube views. The corporate additionally stories to have recorded sturdy income progress throughout all main DSPs.
WMG says that Africori will proceed to function as an unbiased firm, with present CEO, Yoel Kenan, remaining in his publish….
4) PRIMARY WAVE SPENDS $60M ON STAKES IN PAUL RODGERS AND AMERICA CATALOGS
Major Wave Music has just lately struck two new catalog offers for a mixed $60 million.
Firstly, the agency has spent $20 million on a stake in Paul Rodgers’ music publishing catalog for Free and Unhealthy Firm, in addition to his grasp recording revenue streams for each bands.
Secondly, Major Wave has acquired Gerry Beckley’s and Dewey Bunnell’s rights within the America music catalog, in a deal value $40 million.
The worth of each acquisitions had been reported by the Wall Avenue Journal, which, citing individuals near the offers, states that each came about in 2021.
The WSJ additionally stories that Major Wave, which has over $1 billion to spend on music rights, “is gearing as much as spend $500 million to $600 million” this 12 months…..
5) READ SIR LUCIAN GRAINGE’S 2022 MESSAGE TO UNIVERSAL MUSIC GROUP’S WORKFORCE
Common Music Group Chairman and CEO Sir Lucian Grainge despatched a wide-ranging memo to his firm’s employees this week to mark the brand new 12 months.
Throughout the observe, obtained by MBW, Grainge commends and thanks UMG’s world workforce for his or her “willpower and dedication” in 2021, and for what the corporate achieved final 12 months despite the challenges introduced by the pandemic.
Certainly, Grainge writes that, for UMG’s enterprise, 2021 was “in a phrase, phenomenal”… (MBW)
MBW’s Weekly Spherical-Up is supported by Centtrip, which helps over 500 of the world’s best-selling artists maximise their revenue and scale back their touring prices.Music Enterprise Worldwide
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