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Recording Academy CEO Harvey Mason Jr. sent a letter via email to all Recording Academy members on Wednesday (April 2) sharing a report that the academy created and quietly posted on its website in January. In the report, the academy attempts to quantify its impact and summarize the changes it has made over the five years since Mason stepped into the top job at the organization (initially as interim CEO following the departure of Deborah Dugan).
“While many people know us as just an awards granting institution, we are actually a purpose-driven impact organization serving music makers and aspiring music makers around the world 365 days a year,” Mason wrote in his letter. … “This Grammy Impact 2024 report puts into one place all the ways the Recording Academy positively affected music people last year.”
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In an interview with Billboard, Mason shed further light on his aims with the report, which takes the form of a slick and visually appealing deck brimming with facts and figures. But Mason says the numbers aren’t the point. “To me, the bottom line is that they get a sense that the academy is making a real impact on the lives of music people beyond just giving trophies,” he says. “What I’m trying to do is hopefully build support for the academy, through seeing it maybe through a different lens, rather than just who got snubbed or who won or who didn’t win. That’s the objective of this report.”
Mason has long tried to get people to see the academy as more than just the dispenser of shiny gramophones. “When I took the role, one of my objectives and goals was to heighten the awareness of what happens the other 364 days of the year,” he says. “I did experience a lot of interaction with music people in studios as I was coming up where people just thought of the Grammys as a night to get an award, whereas I was always encouraging them to see the bigger picture; to see all the service work that’s being done; the advocacy, the education, the philanthropy, MusicCares; all the different parts of the academy.
“A lot of people know and love the awards ceremony,” he continues. “I’m thankful for that, but it is a challenge for us as an organization to tell the larger story as to why we exist. [This report is] a new way of positioning the academy. We needed to do a better job of explaining why the academy exists beyond to celebrate one night a year. So, this was an intentional effort for us over the last few years to make sure we’re telling that story in a new way.”
Perhaps the most eye-popping statistic in the deck presentation is one that was already reported in the academy’s 2024 membership report, which was released Oct. 3 and reported in Billboard that same day: That a whopping 66% of current academy voting members have joined since 2019.
“It’s great [in the] sense in that we are continuing to remain relevant,” Mason says, “to attract new music-makers, people who are at the height of their careers, or coming into their careers, and we are moving away from having people who have been members…” Mason pauses and starts anew. “We always want to keep our long-term members, but we want to make sure they’re continuing to qualify as voting members [by being able to show recent credits]. We don’t want people that have had music careers in the 1960s or ’70s still voting on music that maybe they’re not involved in making, so we’re making sure we’re refreshing the membership; making sure the membership’s relevant to professionals in the industry working today.”
The deck also includes the statistic, also first reported in the membership report, that people of color now constitute 38% of the voting membership. “I’m pleased with the progress,” Mason says. “We still feel like we have some room to go. You think about why are these numbers important: Why do you care about changing the make-up of our membership? It’s mostly because we want to make sure our membership reflects the industry.”
Mason says he has no set points in mind as to when the academy will have achieved its membership goals. “We’ll never be done, because these numbers are going to fluctuate,” he says. “They’re going to adjust based on what’s happening in our community, in music; changing based on genre popularity, so we’re going to be in a constant search to perfect our membership. We’re always going to continue to work and tinker with the numbers because we have to remain relevant. I don’t think we’re where we want to be yet. I’m not sure we’ll ever accomplish the perfect membership, but we will continue to [work on it].”
At this year’s Grammy Awards, artists and songwriters of color won three of the four highest-profile awards: album of the year (Beyoncé’s Cowboy Carter) and record and song of the year (Kendrick Lamar’s “Not Like Us”). Does Mason see that as a reflection of the academy’s overhaul of its membership?
“Not necessarily,” Mason says. “I see it as a reflection of the quality of their individual work. I like to think having a relevant membership — regardless of their race — is probably what gives us the best outcomes, but I think those people had amazing years creatively and our voters recognized that.”
The deck also repeats the stat that the Recording Academy has added more than 3,000 women voting members since 2019, surpassing its 2019 goal to add 2,500 women voting members by 2025. Women now make up 28% of the voting membership.
“We really needed to increase the number of women voters,” Mason says. “A great first step is adding 3,000 new members. We’re not [yet] where you want to be.”
The deck also speaks to the academy’s “bold global expansion, working with stakeholders in Africa and the Middle East to help foster the dynamic music markets there.” (The academy first released this information on June 9.)
Asked why that effort is a priority for the U.S.-based academy, Mason replies, “Obviously, a big focus is on our American members, and it will continue to be that. We are an organization that represents music all around the world. If we’re going to do that, we have to have people that represent those genres. It very much can be said in the same way about Latin music: Why do you care about Latin music? Why did you build a Latin Academy? It’s because the music is very popular. It’s a thriving music community and it continues to affect people as they listen to it and consume music, and the same can be said for other parts of the world.
“We are not living in a time when music only comes from American creators,” he continues. “Music is coming from creators all around the planet. As a group that serves music people and hopefully uplifts music people, we want to be able to do that for people regardless of where they’re from. As long as they’re making music, we want to have an impact on those music groups.”
Here’s Mason’s letter to the academy membership in full:
Academy members,
I am writing today to share an exciting report that we recently created. You frequently hear me say that music is a powerful force for good in the world, and that the people who make it deserve an organization dedicated to their well-being. I feel so incredibly privileged to work for the organization that exists to do that.
But our highest purpose isn’t merely to serve music creators, it’s to make a positive impact on their lives and careers. And that’s exactly what we work to do, every single day of the year, through the tireless and amazing effort of our board and our teams.
While many people know us as just an awards granting institution, we are actually a purpose-driven impact organization serving music makers and aspiring music makers around the world 365 days a year. Every piece of legislation we help pass has a tangible impact on the music people we serve. Every event hosted by a chapter or wing, every dollar distributed by MusiCares, every scholarship we provide, and every time we open the Grammy Museum doors to a child, it impacts our music community. And yes, every Grammy nomination and award alters the trajectory of someone’s life and career.
This Grammy Impact 2024 report puts into one place all the ways the Recording Academy positively affected music people last year. As we say in the report, it is the combined work of the more than 300 dedicated employees of the Recording Academy, the Latin Recording Academy, the Grammy Museum, MusiCares, and thousands of music creators who volunteered their time in service to their peers.
Please take a moment to read through the report, and reflect on the ways you and your colleagues personally contributed to these outcomes. I hope you feel a sense of pride and purpose in what was accomplished, and for the role you play every day in serving the music people who rely on us.
Of course, we’re now into 2025, and while we celebrate the achievements of last year, we are also looking ahead to the impact we will make this year and beyond. Grammys on the Hill is right around the corner, the Day that Music Cares is coming soon, and much more awaits us in the months ahead.
Thank you for your ongoing commitment to our work. It is making a lasting impact.Gratefully,Harvey Mason jr.
While some industry observers looking back on 2024 may see a half-empty cup due to slowing music industry revenue growth, a lackluster stock performance from the publicly traded major music companies and slightly declining valuation multiples in private catalog deals, Shot Tower Capital says it sees the “half-full” side of things.
That’s because Shot Tower, the boutique investment banking firm specializing in music asset transactions, says the sector still enjoys plenty of investor interest, adding that the industry is recession-resistant, as proven over time. As a result, it foresees stable valuation multiples.
Even though fewer music asset transactions closed in 2024 than in any year since 2018, some of the transactions for music assets carried valuations larger than $1 billion resulted in the “highest dollar value year for music M&A transactions in the post-streaming era,” according to Shot Tower’s annual Year in Review and Music Industry Outlook report. In 2024, transactions with an aggregate dollar value in excess of $8 billion have closed, according to the Baltimore-based firm.
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Moreover, Shot Tower notes that while some institutional investors like KKR, Vine Alternative Investments and Elliot Management have exited the music asset space, other private equity groups have entered it or increased their investments in the sector, including Hellman & Friedman, which bought a majority stake in Global Music Rights; New Mountain Capital, which acquired BMI; and Flexpoint Ford, which launched
in the music space with an investment in Nettwerk Music Group in March 2023 and has since invested in Create Music Group, Goldstate Music and Duetti.
Finally, while interest rates now offer competitive returns on music assets, thus negating somewhat the attractiveness of some music assets while making potential deals more expensive to finance, that has been offset by the breakout of asset-backed securitization, which allows buyers to finance deals at rates more favorable than rates offered by bank lenders.
During the last 18 months, Shot Tower has been either the financial advisor or sell-side advisor in transactions that included the sale of 50% of Michael Jackson music assets to Sony Music Group; the sale of a majority interest in Mavin Records to Universal Music Group; and the sale of the Hipgnosis Songs Fund to Blackstone. And those are just the publicly disclosed deals; the company declines to say how many deals it participated in last year.
Shot Tower compiled data on some 25 publicly known and privately sold music asset transactions during 2024, including deals it advised on and other deals it was aware of, even if it wasn’t a participant. From that, it reports that typical music publishing multiples averaged 16.1 times net publisher share (NPS) in 2024 versus 16.7 times in 2023.
However, if iconic transactions — assets with valuations over $200 million — are included, then average multiples are larger but nevertheless also declined from 2023’s 18.4 times NPS to 17.5 times NPS in 2024.
(How are multiples figured? If a song catalog collects $25 million in revenue and, after paying out royalties of $15 million, leaves $10 million in net publisher share, or NPS; and if that catalog is then sold for $200 million, that means the transaction carried a 20 times NPS multiple.)
Recorded music multiples also declined last year. Net label share (NLS) fell to a 13 times multiple for music asset transactions — excluding deals of iconic assets — from the prior year’s 13.8 times NLS multiple. If iconic transactions are included, then the average multiple in 2024 was 14.2 times NLS versus 15.2 times NLS in 2023.
Looking at multiples over time, Shot Tower says that the peak year for average music publishing multiples was 2021, when 19.4 times, including iconic transactions, was the average multiple; while the peak year for recorded music transitions was 2022, when the average multiple for deals including iconic catalogs was 16.3 times. NLS generally trails NPS, but overall, the window between the two multiples is narrowing slightly.
In most years between 2014 and 2022, the multiple spread between music publishing and recorded music catalogs was bigger by a factor of 4 in favor of NPS. For example, in 2014, NPS averaged a 12.5 times multiple while NLS averaged an 8.5 times multiple. But in the last two years, that window has narrowed to a factor of three, with last year’s NPS coming in at 16.1 versus NLS at 13.0; while in 2023, NPS averaged a 16.7 times multiple while NLS averaged a 13.8 times multiple.
Shot Tower attributes the valuation gap between recorded music and music publishing to a number of factors. For one, marketing costs to exploit recorded music are much higher. Music publishing also has more diversified income streams than recorded music. Additionally, music publishing growth slightly exceeds recorded music growth, according to Shot Tower’s analysis.
Looking forward, Shot Tower says it expects music publishing valuation multiples to decline slightly to about a 15.1 times multiple in 2028 from 2024’s 16.1 times average multiple, while it expects recorded music average multiples for valuations will decline to an average of a 12 times multiple from 2024’s average of a 13 times multiple.
One of the reasons Shot Tower thinks institutional investors will remain interested in investing in music assets is because of the increasingly popular use of asset-backed securitization (ABS) to finance deals due to “stable royalty income streams.” According to Shot Tower’s analysis, a buyer using asset-backed securitization can pay about 10% higher than a bank-financed buyer while achieving the same equity return. ABS deals also allow for a greater ratio of debt to equity (up to 65% leverage) than deals financed using bank financing (55% leverage).
Consequently, “this represents a meaningful offset to rising interest rates,” the report notes.
Latin music continued its extraordinary rise in the U.S. in 2024, hitting a record-breaking $1.4 billion in revenue, according to the Recording Industry Association of America (RIAA). Adjusted for inflation, this milestone represents an 18% increase over the genre’s previous peak in 2005 and marks the third consecutive year surpassing $1 billion.
Streaming remained the lifeblood of Latin music’s success, accounting for a staggering 98% of total revenue in 2024. Paid subscription services contributed more than two-thirds of those earnings, growing 6% year-over-year to $967 million. Meanwhile, ad-supported on-demand streaming platforms like YouTube, Vevo and the free tier of Spotify amassed $354 million, nearly 25% of the genre’s total value — an outsized share compared to the overall market’s 10% in this area, according to the annual report.
“I’m heartened by the continued explosive popularity of Latin music across the U.S. as artists and labels forge new ways to connect with fans,” says Rafael Fernandez Jr., RIAA’s svp of state public policy & Latin music, in a press release. “With streaming delivering 98% of Latin revenues, we can see how the Latin music community’s embrace of innovation lets traditional stars and new generations reach fans like never before — breaking language and access barriers to more boldly shape America’s music future every year.”
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Powering this dominance is a lineup of global superstars driving engagement across platforms. According to Billboard’s year-end Top Latin Artists chart of 2024, Bad Bunny claimed the No. 1 spot for a sixth consecutive year. Meanwhile, Fuerza Regida surged to second place following a string of album and EP releases that resonated with fans across the U.S. Karol G held her own as the only female in the top 10, at No. 4, while Peso Pluma came in at No. 3 — artists who are blazing new trails and cementing Latin music’s cultural and commercial growth.
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While streaming dominates, physical formats also experienced a surprising resurgence, with revenues up 35% from 2022. Despite still accounting for only 1% of overall U.S. Latin music income, this trend indicates opportunities to cater to collectors and superfans through vinyl and other tangible releases.
“There are still more opportunities to push the bounds of innovation, engaging superfans, expanding paid streaming and introducing vinyl nostalgia to this specific market,” adds Matthew Bass, RIAA’s vp of research and gold & platinum operations, in a press release. “After nearly a decade rising and rising again, Latin music keeps surging across the US and is only getting started!”
According to IFPI’s recent Global Music Report, Latin America has experienced a 15-year growth streak, becoming one of the fastest-growing regions in the world. For the first time, Mexico has entered the top 10 global music markets, overtaking Australia for the No. 10 spot. Meanwhile, Brazil holds steady at No. 9, making 2024 the first year that two Latin American countries have appeared in IFPI’s top 10 rankings, which are based on recorded music revenue.
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Pophouse Entertainment, the Swedish catalog company behind the virtual live show ABBA Voyage, said on Monday it raised a total of 1.2 billion euros ($1.3 billion) to invest in acquiring catalogs and entertainment experiences around those music rights.
The fundraise consists of 1 billion euros raised through a private equity fund, and 200 million euros ($216 million) raised through dedicated co-investment vehicles, where outside investors put money to work alongside the Fund in certain transactions. Roughly 30% of the fund has already been deployed into partnerships related to the acquisition of rights to songs by KISS, Cyndi Lauper, Avicii and Swedish House Mafia.
Founded by by ABBA member Björn Ulvaeus and Conni Jonsson, of the Swedish global investment firm EQT AB, Pophouse has been acquiring the publishing, recording and name, image and likeness rights to iconic pop catalogs and then building entertainment experiences around them, through theatrical and virtual shows, museums and movies.
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Pophouse’s playbook has been at work through productions like The Avicii Experience, a tribute museum to the late dance music producer that opened in his hometown of Stockholm, Sweden, in 2021; Mamma Mia! The Party, an interactive dinner party set in London theater modeled after a taverna from the Greek island of Skopelos; ABBA Voyage, the band’s wildly successful virtual show that uses ABBA-tars to digitally depict the foursome as they looked in 1979, and ABBA The Museum, which opened in 2013.
KISS, which sold its name and likeness rights to Pophouse, has hinted that a virtual performance of its songs could launch in Las Vegas in 2027.
“By investing across publishing, recording, and brand rights, Pophouse has created a uniquely attractive prospect not only for investors but also for artists, empowering them to explore and amplify their legacy to new generations of fans,” Pophouse managing partner Johan Lagerlöf, said in a statement.
Pophouse’s CEO is Per Sundin, the first music industry label executive to partner with Spotify when he at Universal Music Sweden and president of the labe’s Nordic region business. Jonsson recruiting Sundin to helm Pophouse with the intention of taking advantage of the external business opportunities music rights present in the streaming era.
“Facing unprecedented disruption caused by streaming and technology, music intellectual property presents a differentiated, lifetime opportunity for investors,” Jonsson said in a statement. “We are reshaping the entertainment industry by applying an active, value-add approach that unlocks future generations for fandom.”
Berlin-based music company BMG reported on Monday (March 31) that it generated 963 million euros ($1 billion USD) in revenue over the course of 2024, marking a 6.4% increase from the year-ago period, thanks to a double-digit jump in digital income streams a strong slate of major releases. The performance amounted to 8.1% in organic growth, the company said.
Digital revenue, which now accounts for 68% of BMG’s overall revenue, rose 16% in 2024, as BMG continues to see the fruits of moving oversight of its digital distribution business from WMG’s ADA to in-house in late 2023.
Operating earnings before interest, taxes, depreciation, and amortization (EBITDA) adjusted — BMG’s preferred metric for profit — rose 37% to 264 million euros ($274.2 million, based on the foreign exchange rate as of Dec. 31, 2024) compared to last year’s 194 million euros ($214 million, based on 2023’s year-end exchange rate).
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BMG CEO Thomas Coesfeld credited the “BMG Next” strategy — a localized yet globally scalable approach — for being pivotal in the company’s success in 2024, highlighting improvements in go-to-market strategies, digital distribution catalog acquisitions and technology. The company made significant changes to its global distribution strategy, including direct licensing agreements with Spotify and Apple Music and transitioning physical distribution management to Universal Music Group. BMG also invested around half a billion euros in catalog acquisitions — it counts 24 for the year — and signings, strengthening its rights portfolio through investment initiatives.
“Our BMG Next strategy has been instrumental in driving a successful 2024 with a step-change performance in a fast-evolving music market,” he said. “Building on the strong performance of our artists and songwriters, ongoing go-to-market improvements, such as insourcing digital distribution, and continued high investment into our people, catalog acquisitions and technology development, we achieved an incredible 2024.”
Notable successes in the recorded music sector included releases from George Harrison, Kylie Minogue, Bryan Ferry, Lainey Wilson, Sum 41, Travis, Crowded House, Rita Ora and others. The company signed new label deals with Blake Shelton, Mustard, YG, New Kids on the Block and K. Michelle, among others.
In music publishing, BMG songwriters such as Bruno Mars, D’Mile, Steve Miller, Trevor Horn, The-Dream, Roselilah and others achieved chart success, with contributions to major hits like Eminem’s “Houdini,” Beyoncé’s Cowboy Carter album, Kendrick Lamar and SZA’s “Luther” and Mars and Lady Gaga’s Hot 100 chart-topper “Die With a Smile.” BMG also signed or extended publishing agreements with artists, including Carly Pearce, KT Tunstall and Tyron Hapi, among others, and secured publishing agreements with Tomorrowland Music and Cirque du Soleil.
The company’s catalog division saw continued growth, with Mötley Crüe’s remastered ripper from 1989, Dr. Feelgood, driving a 10% increase in global streams and Australian garage rockers Jet (“Are You Gonna Be My Girl”) achieving milestones on streaming while selling out anniversary shows. Sync licensing also played a crucial role, securing placements in advertisements, trailers and TV series for artists like Lenny Kravitz, Jennifer Lopez, George Harrison, Pitbull and Rita Ora.
Here are some of BMG’s 2024 highlights:
Operating EBITDA adjusted jumped 37% to 264 million euros ($274 million) from the previous year of 194 million euros ($214 million).
EBITDA margin was 28% compared to the previous year of 21.4%.
BMG said it made 24 catalog acquisitions in 2024, compared to 30 the year before.
K-pop companies SM Entertainment and HYBE were among the best-performing music stocks of the week as most stocks were dragged down by continued uncertainty about U.S. tariff policy and new data on higher-than-expected inflation.
SM Entertainment, home to NCT Dream and RIIZE, was the week’s best performer after gaining 6.7% to 107,000 KRW ($72.91). That brought the company’s year-to-date gain to 47.4% — the best of any music stock.
HYBE, which counts BTS and its solo members’ projects among its vast roster, improved 3.7% to 240,500 KRW ($163.87). On Thursday (March 27), HYBE announced that BTS songs such as “Dynamite” and “Butter” will be featured on Lullaby Renditions of BTS, out April 4 on Rockabye Baby! Music. HYBE shares are up 19.7% year to date, the fifth-best among music stocks.
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K-pop fared well during a down week for most stocks and markets in general. YG Entertainment, home of BLACKPINK and BABYMONSTER, rose 3.3% to 63,500 KRW ($43.27) while JYP Entertainment was unchanged at 61,300 KRW ($41.77).
Outside of South Korea, music stocks reflected the challenging economic conditions and uncertainties that have hurt stocks in recent weeks. The 20-company Billboard Global Music Index (BGMI) declined 2.9% to 2,459.98, marking its fourth decline in the last six weeks. With just eight of its 20 stocks finishing the week in the black, the BGMI fell into correction territory as its value has declined 10.7% since the week ended Feb. 14. The first six weeks of 2025 were good enough to overcome the recent slump, however, and the BGMI is up 15.8% year to date and has gained 40.4% over the last 52 weeks.
Stocks took another hit on Friday (March 28) after the core personal consumption expenditures price index, a measure closely watched by the U.S. Federal Reserve, increased 0.4% in February. That put the 12-month inflation rate at 2.8%. Both figures were above experts’ expectations. The tech-heavy Nasdaq composite finished the week down 2.6%, increasing its year-to-date decline to 11.7%, while the S&P 500 fell 1.5%. In the U.K., the FTSE 100 increased 0.1%. South Korea’s KOSPI composite index fell 3.2%. China’s SSE Composite Index dropped 0.4%.
The BGMI was pulled down by Spotify’s 6.5% decline and a 4.2% drop by German concert promoter CTS Eventim. Warner Music Group, one of the index’s largest companies, dropped 2.7% to $31.56.
Tencent Music Entertainment (TME) gained 2.7% to $14.38 after Deutsche Bank upgraded its rating on TME shares to buy from hold. Universal Music Group rose 2.0% to 25.99 euros ($28.12) after Wells Fargo upped the rating on the company’s shares to overweight from equal weight and increased the price target to 33 euros ($35.70) from 28 euros ($30.29).
Music streaming company LiveOne had the week’s biggest decline at 14.1%. The company announced on Wednesday (March 26) that subscribers and ad-supported users surpassed 1.4 million.
Radio company iHeartMedia fell 6.8%, putting its year-to-date loss at 23.0%. Satellite broadcaster SiriusXM dropped 3.1% to $22.75, though it’s still up 1.7% in 2025.
Voting members of the Recording Academy’s Los Angeles chapter are being asked to vote again in the election that determines that chapter’s governors. The problem: Not enough people voted in the election that concluded Wednesday (March 26) for the Academy to consider it a valid election. As a result, a new election will open on April 9 and close on April 16.
Harvey Mason jr., Recording Academy and MusiCares CEO, and Tammy Hurt, chair of the academy’s board of trustees, sent an email to L.A. chapter voting members on Friday (March 28) explaining the situation and asking them to please be sure to vote this time. Members who voted in the initial election must vote again because this is a new election.
In their email, Mason and Hurt expressed sympathy for L.A. voting members, who have been through a lot in the past few months. Even those who weren’t personally affected by the wildfires that devastated the region beginning Jan. 7 were stressed by being part of a community that went through a traumatic event. “We understand that the past few months have been incredibly challenging for our LA members, and that you have had far more pressing matters to navigate,” they wrote. “However, it is critical that our elected leaders reflect the broad and diverse will of our members.”
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The L.A. chapter is the largest of the academy’s 12 chapters. The others are Atlanta, Chicago, Florida, Memphis, Nashville, New York, Pacific Northwest, Philadelphia, San Francisco, Texas and Washington, D.C.
Julia Michels, who won a Grammy five years ago as a music supervisor on Lady Gaga and Bradley Cooper‘s A Star Is Born soundtrack, is president of the L.A. chapter, which currently has 31 governors, all of whom are elected by voting members in the chapter. The governors, in turn, elect the national trustees. The L.A. chapter currently has seven trustees (more than any other chapter): Cheche Alara, Evan Bogart, Maria Egan, Sara Gazarek, Mike Knobloch, Ledisi and Jonathan Yip.
Here’s the email from Mason and Hurt, in full:
Dear Los Angeles Voting Members,
Voting in the Recording Academy’s twelve chapter elections concluded Wednesday night. Unfortunately, the Los Angeles chapter election for Voting Member Governor races did not receive the required turnout for a valid election. As a result, we are going to hold a second election. We understand that the past few months have been incredibly challenging for our LA members, and that you have had far more pressing matters to navigate. However, it is critical that our elected leaders reflect the broad and diverse will of our members.
The new election will open on April 9 and close on April 16, and again, it will only be for the Voting Member Governor races. Please note that even if you voted in these recently-concluded races, you must vote again. This is a new election.
We ask that you please make time to participate in this important step and vote. You will determine the next class of Recording Academy elected leaders that will guide the Los Angeles Chapter. Please vote and please encourage others to do the same.
If you are in need of assistance due to the LA wildfires, please visit www.musicares.org/get-help.
Best regards,
Harvey Mason jr.
Recording Academy & MusiCares CEO
Tammy Hurt
Chair, Board of Trustees
At Universal Inside, held Wednesday (March 26) at the Tempodrom in Berlin, UMG Central Europe chairman/CEO Frank Briegmann showcased some of the label’s acts, updated attendees on the state of the German music market and offered a glimpse into the company’s future.
After an appearance by the pop act Blumengarten, Briegmann shared some good news about the German business. As streaming growth slows in other regions, Germany still has plenty of headroom, which is why the market grew 7.8% in 2024, surpassing the 2 billion euro mark for the first time. He also made the point that this was good news for artists, who one study showed increased their collective revenue faster than labels between 2010 and 2022.
Briegmann also laid out a plan for growth that relies on UMG’s “artist-centric model” to increase payments to acts that meet certain criteria, as well as the “streaming 2.0” idea that is intended to induce superfans into paying more for subscriptions. The label had an impressive 2024, accounting for five of the year’s top 10 albums, including Taylor Swift and Billie Eilish releases in the top two spots. Briegmann also pointed to the success of UMG’s classical label Deutsche Grammophon, where he is also chairman/CEO, as a particular highlight.
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Much of the potential for growth lies in superfans, Briegmann said, and pointed to the history of UMG’s efforts to identify, track and reach them directly. The latest iteration of that is a new in-house direct-to-consumer operation, SPARKD, which will offer artists a new service to reach consumers with both albums and merchandise sold by UMG’s Bravado, which will be integrated into the label business in Germany. Bravado will continue to do business with both UMG artists and others. The idea is to use existing data to drive more different kinds of business — which would, in turn, generate more data. Already, Briegmann said, Bravado had grown its German merchandise revenue by 50% in the last three years, thanks in large part to its direct-to-consumer business.
Universal Inside is never all business, and as usual, Briegmann introduced some of the label’s artists. He briefly interviewed German pop star Sarah Connor, who spent much of her career singing in English but will soon release the final album of a German-language album trilogy, Freigeistin. Deutsche Grammophon president Clemens Trautmann introduced the label’s star pianist Vikingur Ólafsson, and Gigi Perez played two songs on acoustic guitar.
The event closed with a brief speech from Berlin Senator for Culture and Social Cohesion Joe Chialo about the significance of the Electrola label, after which the German act Roy Bianco & Die Abbrunzati Boys played a few songs, joined for the classic “Ti Amo” by the schlager icon Howard Carpendale.
With the recent news of slowing streaming growth in the U.S. and declining global revenue growth in recorded music, one might think the trends could have a negative impact on the market for publishing and recorded music catalogs.
Think again. For a handful of reasons, industry insiders who spoke to Billboard don’t believe the slowdown will have much — if any — effect on the continually brisk business in music intellectual property rights. Subscription revenue, which accounted for roughly 66% of U.S. revenue and approximately 51% of global revenue in 2024, according to the RIAA and IFPI, respectively, will continue to grow in mature markets and elsewhere.
“I don’t think the numbers that we’ve seen are enough to make any [music investors] worry too much,” says MIDiA Research’s Mark Mulligan. “I know that a lot of these funds have seen our numbers, and our numbers are relatively cautious about the outlook. We’re not bearish, but we’re not bullish either.”
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Numerous people pointed to Goldman Sachs’ estimates — a closely watched music forecast that remains something of a gold standard in the business — that both global recorded music and publishing revenue will grow at approximately 8% annually through 2030. What’s more, equity analysts seem comfortable with Universal Music Group’s forecast of 8-10% subscription growth through 2028.
In mature markets, future growth will come from higher prices after more than a decade of unchanged subscription fees. “We’ve all gotten comfortable with getting music at what I believe to be a subsidized rate versus its value,” says Jeremy Tucker, founder/managing member of Raven Music Partners, an investor in music catalogs. That subsidy is an underpricing of music subscriptions in order to attract new customers and help platforms achieve scale. Now that there are 818 million global subscribers, according to MIDiA Research, labels and streaming services seem intent on getting more from each subscriber.
Many streaming services raised their prices in 2022 and 2023, and Spotify raised prices in a few markets in 2024. Major labels that have renewed their licensing agreements with Spotify suggested the deals allow for higher-priced superfan tiers. Additionally, Warner Music Group CEO Robert Kyncl said at a March 10 banking conference that “there’s quite strong evidence that there’s a lot of room to grow on pricing, especially in … mature markets.” All of this means there will be more value coming to rights holders, says Tucker, who looks at a lengthy time horizon, not any single year’s results, when considering potential gains. “We think there’s going to be growth over the medium to long term. But, in any given year, the actual growth is not something I’m too worried about.”
Additionally, people expect rights holders will extract more value from catalogs through better blocking and tackling. While companies focused on subscriber growth over the last 15 years, the next era will be marked by better execution, says a person in the music investment field. Artificial intelligence, this person says, can help rights owners expand the global reach of their music by creating versions in multiple foreign languages at little cost. AI can also make royalty collection more effective and cost-efficient. These wins may not have the appeal of, say, a biopic that boosts an artist’s catalog. But from a financial point of view, expanding a song’s reach and cutting costs serve the buyer’s core mission of improving the return on investment.
While U.S. growth slows, much of the world is growing quickly, and Western companies that focus on English-language repertoire face a “bleak” future as emerging markets outpace markets where English-language music is most popular, says Mulligan. As a result, companies that failed to invest a decade ago are playing catch-up in markets dominated by local music. “What they should have done is started signing loads of artists [in emerging markets] 10 to 15 years ago,” Mulligan says.
Still, there’s opportunity in emerging countries and their local repertoire. Subscription penetration rates — the ratio of subscribers to the country’s adult population — are a good proxy for a country’s potential, explains Mulligan. Developed markets like the U.S. and U.K. have penetration rates in the high 40 percent, according to MIDiA’s latest data. Elsewhere, lower penetration rates suggest subscription revenue will increase down the road and, as a result, the local music business infrastructure will grow over time. Poland’s subscription penetration rate, in contrast, is 17%, Brazil’s is 16% and China’s is 13%. Indonesia, the world’s fourth-most populous country, has a 1.8% penetration rate. India, the world’s second-largest country, has a penetration rate of just 1.3%.
Low penetration rates correspond with growth potential, as streaming platforms help fuel infrastructure growth and subscription adoption adds more value to the market. “You get this virtuous circle of influence,” Mulligan explains, “where if you establish the infrastructure to create an audience, that creates the virtuous circle of investment, where people start setting up labels, people start being able to have their careers as artists, they create more music, more of that music exports, and the impact on the global market increases. India is maybe a third of the way along in the journey, whereas Indonesia has not even got started.”
The ASCAP Foundation has announced the recipients of the 2025 Herb Alpert Young Jazz Composer Awards. Established in 2002, the program recognizes gifted young jazz composers, defined as up to the age of 30. It carries the name of music legend and ASCAP member Herb Alpert in recognition of The Herb Alpert Foundation’s multi-year financial commitment to the program. The recipients, who receive cash awards, are selected through a juried national competition.
“With The Herb Alpert Foundation’s unwavering support, the Young Jazz Composer Awards continue to elevate emerging voices of jazz, one of our most vital art forms,” ASCAP Foundation president Paul Williams said in a statement. “These gifted young composers are the future of the genre, and we are honored to be a part of their musical journey.”
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“The ASCAP Foundation has been dedicated to nurturing the musical talent of tomorrow for 50 years,” added ASCAP Foundation executive director Nicole George-Middleton. “We are incredibly grateful for the generous support of The Herb Alpert Foundation that allows us to do what we do best — uplift the next generation of music creators.”
The 2025 ASCAP Foundation Herb Alpert Young Jazz Composer Award recipients are listed below with their age, current residence and place of origin:
Jonah Barnett, 25 of Washington, D.C. (Alexandria, Va.); Eli Feingold, 27 of Brooklyn, N.Y. (Marlboro, N.J.); Michael Hilgendorf, 26 of New York (Chesterfield, Mich.); Benedict Koh, 25 of Boston (Singapore); Aditi Malhotra, 27 of Boston (New Delhi, India); Giovanni Martinez, 20 of New York (Jacksonville, Fla.); Alan Montaño, 20 of Brighton, Mass. (Concord, Calif.); Bakhari S. Nokuri, 19 of Los Angeles (Dayton, Md.); Marc Perez, 24 of Los Angeles; Artur Ponsà of Boston (Barcelona, Spain); Jahari Stampley, 25 of Chicago; Katie Webster, 24 of Brooklyn, N.Y. (Seattle); and Alejandra Williams-Maneri (Alejandra Sofia), 26 of Brooklyn, N.Y. (Barre, Mass.).
The restriction that recipients need to be under age 30 keeps the focus on young talent. Alpert reached his career peak at age 30 in 1965 with the release of Whipped Cream & Other Delights, his first of five No. 1 albums (all recorded with his Tijuana Brass ensemble) on the Billboard 200. Alpert and Jerry Moss had formed A&M Records three years earlier.
Additional funding for the program is provided by The ASCAP Foundation’s Bart Howard Fund. Howard, who died in 2004, is best known as the composer of the jazz standard “Fly Me to the Moon.”
The Herb Alpert Foundation, a non-profit, private foundation established in the early 1980s, makes significant annual contributions to a range of programs in the fields of arts, arts education, and compassion and well-being. Its funding is directed toward projects in which Herb and Lani Alpert and Foundation president Rona Sebastian play an active role. [The Foundation does not accept unsolicited proposals.]
Founded in 1975, The ASCAP Foundation is a charitable organization dedicated to supporting American music creators and encouraging their development through music education, talent development and humanitarian programs.