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 earnings and cut back their touring prices.
One of many largest tales within the international music enterprise proper now could be taking part in out in South Korea.
On Wednesday (February 22), HYBE, the corporate behind acts like BTS and New Denims, accomplished a deal to accumulate a 14.8% stake in its rival SM Leisure, which is behind stars like NCT, EXO and Aespa.
HYBE beforehand revealed that it intends to up its 14.8% stake in SM to round 40% of the corporate, by buying one other 25.2% of SM Leisure’s shares for a complete of 1.14 trillion South Korea Received (USD $900 million) from minority shareholders.
This week noticed SM Leisure CFO Jang Cheol Hyuk submit a video on YouTube by which he slammed HYBE’s takeover bid, whereas HYBE CEO Jiwon Park revealed an open letter noting that the deal marks “an period of change for each corporations…”
Elsewhere this week, live shows big Reside Nation revealed its newest monetary outcomes, for This fall, and the total yr ended December 31, 2022.
Reside Nation generated revenues of $16.7 billion in 2022 and its live shows enterprise was its major income driver, producing $13.49 billion in 2022.
The corporate additionally says that it “invested $9.6 billion in placing on artists’ reveals in 2022″ and claims to be “the biggest contributor to artist earnings”.
In the meantime, MBW crunched the numbers to disclose how Sony Music Group accelerated its standing because the world’s second-biggest music rights firm in 2022.
Plus, Taylor Swift was topped as IFPI‘s 2022 World Recording Artist Of The Yr, whereas Thomas H. Lee, a billionaire financier primarily based in New York who served on Warner Music Group‘s board for almost twenty years, was discovered useless yesterday in Manhattan aged 78.
Right here’s what occurred this week…
1) HYBE SAYS IT ‘CAN STAND SHOULDER-TO-SHOULDER WITH THE WORLD’S MAJOR RECORD LABELS’ AS IT SECURES STAKE IN RIVAL SM ENTERTAINMENT
There may be a whole lot of change and consolidation taking place within the Ok-Pop business proper now.
On Wednesday (February 22), HYBE, the corporate behind acts like BTS and New Denims, accomplished a deal to accumulate a 14.8% stake in its rival SM Leisure, which is behind stars like NCT, EXO and Aespa.
The deal, price 422.8 billion South Korean gained (approx. $335 million), implies that HYBE is formally the biggest single shareholder in SM Leisure, having acquired these shares from the corporate’s founder Lee Soo Man.
In an open letter confirming the completion of the deal to purchase the 14.8% stake, HYBE CEO Jiwon Park outlined what he believes are the similarities between HYBE and SM and famous that, “that is an period of change for each corporations….”
2) HOW SONY MUSIC GROUP ACCELERATED ITS STATUS AS THE WORLD’S 2ND BIGGEST MUSIC RIGHTS COMPANY IN 2022
Sony Music loved a spectacular night time on the Grammys in Los Angeles earlier this month, as an array of its blockbuster recording artists, together with Beyoncé, Harry Kinds, and Adele claimed the night time’s most glittering prizes.
In the identical week, over in Tokyo, Sony Group Company – the mum or dad firm to Sony’s music operation – introduced its newest quarterly outcomes, in Yen, for the three months ending December 31, 2022 (Sony’s fiscal Q3, however calendar This fall).
By crunching the numbers on these quarterly outcomes, MBW has been in a position to set up their worth in US {dollars}, in addition to understanding how Sony’s music division carried out throughout the course of calendar 2022.
[Long story short on our methodology: We use a Yen-USD conversion rate for Sony’s global revenues in each calendar quarter at the prevailing rate for each period as provided by Sony Corp. It’s worth noting that, during 2022, due to the strength of the dollar vs. many international currencies, this methodology is actually likely to skew against Sony, i.e. down-weighting its true global revenue performance – which is fairly remarkable when you consider the numbers below.]
[Last bit of arithmetical housekeeping before we get into the good stuff: Corporately speaking, Sony Group’s global music operation includes recorded music, plus music publishing, plus ‘Visual Media & Platform’ (VM&P). VM&P primarily covers mobile games and animation projects, and has been omitted from all revenue calculations in this analysis.]
So. In accordance with MBW’s calculations primarily based on Sony Corp’s bulletins, Sony’s mixed recorded music and music publishing operations generated USD $8.38 billion within the calendar yr of 2022.
That USD $8.38 billion determine was up by $889 million on calendar 2021, or +11.9% year-on-year…
3) IS LIVE NATION ‘THE LARGEST FINANCIAL SUPPORTER’ OF ARTISTS? CONCERTS GIANT SPENT $9.6BN PUTTING ON SHOWS IN 2022
Inside Reside Nation’s newest earnings announcement, the corporate claims that its “funding in artists” i.e. what it spent on placing on artists’ reveals in 2022, was up 45% versus 2019 to over $9.6 Billion in 2022.
Reside Nation claims that this funding makes the corporate “the biggest Monetary Supporter of Musicians.”
In accordance with international recorded music physique IFPI, $5.8 billion is the sum of cash “invested in A&R and advertising by document labels yearly…”
4) LONG-TIME WARNER MUSIC GROUP BOARD MEMBER, THOMAS H. LEE, FOUND DEAD AT 78
Thomas H. Lee, a billionaire financier primarily based in New York who served on Warner Music Group’s board for almost twenty years, was discovered useless yesterday in Manhattan aged 78.
Lee stepped down as a board director at WMG in 2021 following 17 years of service, however subsequently continued his affiliation with the music firm as Director Emeritus.
The entrepreneur and personal fairness pioneer had an extended and important historical past with Warner Music: In 2004, he led the investor group that bought the corporate from Time Warner…”
Photograph Credit score: Beth Garrabrant
5) TAYLOR SWIFT’S RECORDED MUSIC GENERATED MORE MONEY GLOBALLY THAN ANY OTHER ARTIST IN 2022
Taylor Swift has been topped as IFPI’s 2022 World Recording Artist Of The Yr.
That’s good, not least as a result of it comes with a flowery trophy.
However understanding what it truly means in enterprise phrases places an vital spin on issues. Permit us to elucidate…
MBW’s Weekly Spherical-Up is supported by Centtrip, which helps over 500 of the world’s best-selling artists maximise their earnings and cut back their touring prices.
