Business News
Page: 61
Worldwide Independent Network (WIN), the organization that brings together local independent music trade bodies across the globe, taps five new board members, while ratifying the reappointment of its chair and treasurer.
Explore
Explore
See latest videos, charts and news
See latest videos, charts and news
Dario Draštata (Dallas Records, Croatia), Fran Sandoval (IMICHILE, Chile) and Marty Ro (Sound Republica, South Korea) are among the new directors named to the 20-strong WIN board, announced Thursday, Feb. 8. The other new faces are Alejandro Varela (S-Music, Argentina) and Sridhar Swaminathan (SIMCA, India), who are named as observers.
The trade association gives “warm thanks” to outgoing members Francesca Trainini (PMI, Italy), Jeffrey Chiang (Fluxus, South Korea) and Oliver Knust (IMICHILE, Chile).
Renewed each year, the board is comprised of independent music company and trade association representatives from around the world, appointed by WIN members on a geographical basis.
The organization rings in the changes this year by creating a new international structure based on five regional blocs: North America, Latin America, Europe, Asia and Australasia, a move that reflects “diversity of languages, genres and cultures that make up its membership,” reads a statement.
Meanwhile, Zena White (Partisan Records, U.S.) and Maria Amato (AIR, Australia) are reappointed as chair and treasurer, respectively. Melbourne-based Amato, the CEO of the Australian Independent Record Labels Assn., in 2022 became WIN’s first female chair and the organization’s first from the southern hemisphere.
“I am grateful to be given the opportunity to continue as chair of WIN and my congratulations go to our five new board members,” comments White in a statement. “Our North Star is to strengthen the sector by having an independent music trade association in all countries where there is a commercial music business. The new regional bloc structure reflects our purpose to connect as many territories as we can. I am particularly proud of WIN’s work with groups in Latin America and Asia-Pacific on their specific agendas, as well as adding associations in India, Paraguay and Bulgaria to our membership.”
The organization launched in 2006 and became a trade association in 2016, serving as a global coordination and support body for the independent sector, and representing thousands of music companies and professionals worldwide. Its focus is on long-term development and sustainability.
Each year, WIN commissions and publishes the WINTEL market report that measures the economic and cultural impact of the independent music sector globally.
Next up, White and Noemí Planas, CEO of WIN, will join reps from member associations in other Latin American countries to visit Guadalajara, Mexico in late February and early March for the FIM GDL conference and to host an independent labels summit and WINHUB networking gathering.
WIN board for 2024:North America
Garry West (Compass Records, U.S.)
Gord Dimitrieff (Aporia Records, Canada)
Jason Peterson (GoDigital Media Group, U.S.)
Richard Burgess (A2IM, U.S.)
Zena White (Partisan Records, U.S.)
Observer: Tony Kiewel (Sub Pop, U.S.)
Latin America
Francisca Sandoval (IMICHILE, Chile)
Sandra Rodrigues (ABMI, Brazil)
Observer: Alejandro Varela (S-Music, Argentina)
Europe
Dario Draštata (Dallas Records, Croatia)
Gee Davy (AIM, UK)
Geert De Blaere (N.E.W.S., Belgium)
Jörg Heidemann (VUT, Germany)
Mark Kitcatt (Everlasting Records, Spain)
Observer: Helen Smith (IMPALA, Europe)
Asia
Marty Ro (Sound Republica, South Korea)
Takuya Yamazaki (IMCJ, Japan)
Observer: Sridhar Swaminathan (SIMCA, India)
Australasia
Maria Amato (AIR, Australia)
Observer: Dylan Pellett (IMNZ, New Zealand)
Vinyl Group now has a fourth pillar.
Following the completion of its acquisition of The Brag Media, the Sydney-based music and tech specialist doubles-down on its mission to build revenue and integrate its new asset.
As previously reported, the transaction is funded with a new investment by billionaire WiseTech Global founder and CEO Richard White, by way of an A$11 million ($7.5 million) placement and debt facility, uniting the only music specialist company listed on the Australian Securities Exchange (ASX) with the market leader in premium youth content and events.
Explore
Explore
See latest videos, charts and news
See latest videos, charts and news
“Our real mission or vision that we all have in the company is to empower and power all facets and parts of the music ecosystem,” Vinyl Group CEO Josh Simons tells Billboard.
When the group, previously known as Jaxsta, prior to a rebrand in early December, spotted an opportunity with The Brag Media, “we also knew that the company was going to evolve into more of a portfolio music company,” Simons continues.
Prior to the purchase, Vinyl Group’s portfolio was built on the three pillars of its music credits business Jaxsta; the leading music industry social-professional network and talent marketplace Vampr; and Vinyl.com, the online record store. The Brag Media, with its range of titles including Rolling Stone AU/NZ, Variety Australia, Tone Deaf and trade title The Music Network, is its fourth pillar.
Vinyl.com is a “very fast growing ecommerce platform, it speaks to the fan,” Simons continues, “but a huge part of connecting the dots here is connecting fans as creators, and media and events and everything that The Brag does, fills that gap.” When the opportunity came across the table, and “when we knew what direction they were boldly headed in, it made a lot of sense and got us excited very quickly.”
The amalgamation of both business presents “some really obvious low hanging synergies,” he explains, pointing to sales synergies between Vampr and The Brag Media as one example, “but broadly speaking, it plugged a hole in this broader flywheel of servicing all participants in the music ecosystem.”
People, product and process – “that’s really always my focus,” explains Simons.
The co-founder of Vampr, Simons was elevated from chief strategy officer to CEO in June 2023, succeeding Beth Appleton, who stepped down as CEO with immediate effect.
“Revenue, cost efficiency and profitability remain the top priorities for Jaxsta,” Simons commented at the time of his ascension, “and I look forward to building on the current momentum.”
The agenda remains the same.
“The headline KPI was four quarters of consecutive revenue growth and moving towards profitability,” Simons says. “Under my tenure, we’ve released three quarters of performance. And in each quarter, we’ve averaged 204%, quarter over quarter.” The Brag deal “turbo charges that”.
The completion of the acquisition was confirmed with a statement Feb. 1, when stock was trading at $0.063. At the close of trading today (Feb. 8), VNL stock was trading at $0.066, for a market cap of $41.73 million.
Prior to the deal going through, The Brag Media bolstered its executive team with a triumvirate of appointments. Dane Robertson returned to the company in the newly-created role as head of client and event partnerships in Australia and New Zealand, following a stretch at media firm Pedestrian Group. Also, Denise Barnes joined as client projects director following six-plus years with lifestyle site Man of Many, most recently as head of branded content, and Anan Salvarinas joined the team as senior creative strategist, following two-and-a-half years with LADbible Australia, including a recent run as senior creative (brand).
This year is an “important” one for the business “as we focus on integrating The Brag Media into Vinyl Group’s properties as well as continued strong growth of our technology products,” explains Simons in the Feb. 1 statement to the ASX. “We now have a very clear path to profitability.”
Warner Music Group (WMG) revenue reached a record $1.75 billion from October through December, the company announced Wednesday (Feb. 7). That’s up 17.5% from the prior-year quarter (up 15.9% at constant currency), as both the recorded music and publishing divisions posted their best-ever quarterly revenues.
With Spotify and other streaming services having raised prices in 2023, WMG’s digital revenue increased 16% and streaming revenue grew 16.6%. The company also posted gains in physical sales, licensing revenue and music publishing performance royalties, though the company saw declines in recorded music artist services and expanded rights revenue. Net income rose 55.6% to $193 million and operating income improved 33.6% to $354 million.
“These results reflect the impact of our chart-topping artists, hit-making songwriters, iconic catalog, and laser focus on execution by all our teams,” CEO Robert Kyncl said in a statement. “As we deliver our plan to accelerate our growth, we are becoming more efficient, increasing operating leverage, and freeing up more funds to invest in music and tech, which in turn will drive further sustainable growth.”
Moments after WMG released the quarter’s results — an earnings call will take place Thursday morning (Feb. 8) — news broke that the company will eliminate its staff by 10%, primarily through the sale of owned and operated media companies such as Uproxx and HipHopDX. The company will also eliminate its in-house ad sales function and plans to wind down its podcasting brand, The Interval, as well as social media publisher IMGN. The reductions will free up $200 million in cost savings that can be reinvested elsewhere, Kyncl wrote in a memo to staff obtained by Billboard.
WMG shares were up 6.4% to $36.19 in after-hours trading following the late afternoon release of earnings results and staff reductions.
Excluding three extraordinary items, WMG’s revenue growth was 12.1% (10.6% at constant currency). A previously disclosed licensing agreement extension for an artist’s catalog added $68 million of revenue and a digital licensing agreement renewal added $27 million to the quarter. The termination of a distribution agreement with BMG resulted in $13 million less revenue than the prior-year quarter.
Recorded music revenue improved 16.6% to $1.45 billion on the success of Zach Bryan, Bruno Mars, the Barbie soundtrack and Jack Harlow, whose track “Lovin on Me” first reached No. 1 on the Billboard Hot 100 singles chart in December and recently spent its fourth non-consecutive week atop the chart dated Feb. 3. The segment’s digital revenue grew 13.1% to $908 million while physical revenue climbed 15.8% to $154 million. Licensing revenue jumped 84.5% to $179 million.
Music publishing revenue grew 21.6% (19.7% at constant currency) to $304 million thanks to a 32.2% improvement in streaming revenue and a 31.5% gain in digital revenue. Mechanical royalties — which are tied to downloads and physical purchases — rose 7.1% to $15 million. Publishing’s synch revenue was flat at $39 million as lower commercial licensing activity in the United States was offset by the timing of some legal settlements.
WMG’s margins improved nearly across the board in the quarter. Company-wide, the company’s operating margin rose 2.5 percentage points to 20.3% and its adjusted operating income before depreciation and amortization (OIBDA) margin rose 3.3 percentage points to 25.8% (and was flat excluding BMG’s termination, the license extension and digital license renewal). Recorded music’s adjusted OIBDA margin rose 4.4 percentage points to 28.5% and its operating margin improved 3.1 percentage points to 25.9%. The publishing division’s operating margin rose 1.1 percentage points to 20.7% while its adjusted OIBDA margin declined 0.5 percentage points to 28.3%, due primarily to the impact of exchange rates.
Gains in recorded music and improved digital royalties helped Reservoir Media’s revenue increase 19% to $35.5 million in the fiscal third quarter ended Dec. 31, the company announced Wednesday (Feb. 7).
Strong results in the quarter allowed Reservoir Media to raise its guidance for its full fiscal year ending March 31. Guidance for full-year revenue increased from a range of $133 million to $137 million to a range of $140 million to $142 million, implying 15% annual growth at the midpoint. Adjusted guidance on earnings before interest, taxes, depreciation and amortization (EBITDA) increased from a range of $50 million to $52 million to a range of $53 million to $55 million, which would be a 16.5% year-over-year improvement. Reservoir Media also raised its guidance when it released its previous earnings in November.
The results “demonstrate our ability to manage the business and deploy capital to further grow our portfolio,” CEO Golnar Khosrowshahi said during Wednesday’s earnings call. “Along those lines during the quarter, we continued to invest in our business, with an emphasis on further diversifying our portfolio across various music genres.”
Recorded music revenues grew 32%, to $10 million, inclusive of catalog acquisitions. The segment’s digital revenue grew 26% to $6.6 million while physical revenue rose 51% to $1.7 million. Synch revenue doubled to $800,000 and neighboring rights royalties gained 16% to $1 million.
Publishing revenue dominated total revenue, though, improving 15% to $23.1 million. Publishing’s digital revenues grew 30% to $13.9 million and synch revenue gained 9% to $4 million. Performance, mechanical and other revenue fell from the prior-year quarter.
Synch revenue from both segments was affected by the writer and actor strikes in 2023, explained CFO Jim Hendlmeyer. A “very promising” ad market helped synch revenue during delays in TV and film production, he added.
The quarter was also helped by Reservoir Media’s numerous signings and acquisitions, including Theo Katzman, the founding member of Vulfpeck and a collaborator with such artists as Carly Rae Jepsen and Teddy Geiger. In December, Reservoir signed singer-songwriter grentperez, for whom it handles administration and creative aspects with its Australian sub-publisher, Mushroom Music. In October, the company signed a global publishing deal with Joe Walsh. Its last announced acquisition was the catalog of Arthur “Boogie” Smith in November.
Reservoir highlighted Grammy success for the songwriters and producers on its roster. Among the winners was best folk album winner Joni Mitchell, who signed a publishing administration deal with the company in 2021. Killer Mike, who signed with Reservoir in 2022, won in three rap categories: Best Rap Song (“Scientists & Engineers”), Best Rap Album (Michael) and Best Rap Performance (“Scientists & Engineers”). Elsewhere, Khris Riddick-Tynes’ collaboration with SZA, “Snooze,” won best R&B song and Blue Raincoat Music client Phoebe Bridgers had a hand in four awards, including best rock song, with her group boygenius.
Shares of Reservoir Media increased 6.1% to $7.26 early Wednesday morning before falling to $6.49, down 5.1%, by midday.
Since Laura Gonzalez lost her job as a Spotify software engineer in December, when the streaming giant cut 1,500 employees in its third round of 2023 layoffs, she has struggled to reassert herself in a shifting music business.
As companies like Universal Music Group and BMG downsize for strategic purposes, Gonzalez has observed through job listings and interviews — that public-relations, media and streaming jobs are thinning out while the social-media and ticket-sales sectors remain more or less robust. “It is scary, I’m not going to lie,” says Gonzalez, a San Diego singer and guitarist who fronts shoegaze band Memory Leak. She adds that the “competition is insane,” noting she spent her one-year Spotify career building revenue streams for artists beyond royalties. “I found myself having to study and refresh on topics I had not thought of since I was in university — data structure and algorithms.”
From the point of view of music-business job-seekers, the employment landscape has taken a recent turn into the unknown. For the last several years, boosted by streaming growth and a spike in demand during COVID-19 home quarantine, labels, DSPs (digital service providers) and other streaming-focused companies were expanding and hiring. But UMG’s chairman, Lucian Grainge, has warned staff for months that the world’s biggest label is on the brink of severe cost-cutting.
For that reason, according to Pieter Wolter, founder of The Music Recruiters, an Amsterdam-based company that recruits people in the music business and connects them to job opportunities, job-seekers with music-business experience in human resources, finance or other transitional skills might consider recession-proof sectors such as health insurance. He expects music-business job growth in artificial intelligence, data analytics and the metaverse, but perhaps not imminently.
“It’s not like all these people who are laid off will be able to transition easily into those areas. This will depend on network and experience,” he says. “It’s clear the music industry is changing. There’s not a single area where I’m aware of super-strong hiring, like you could have seen in the past at digital distributors — or technology bursts you sometimes see.”
There are bright spots in the industry. Jon Loba, BMG’s new president of frontline recording, declared last month that he would immediately start beefing up his A&R team in Los Angeles. (In October, the Berlin-based label and publisher laid off 30 staffers as part of what CEO Thomas Coesfeld called “a strategy for future growth.”) And record-setting tours by Taylor Swift and Beyoncé have helped to create “lots of great growth opportunity for years to come” on the live side, Michael Rapino, president/CEO of Live Nation, told investors last August.
“Jobs will look different and there will be more competition, but I don’t think we need to completely freak out,” says Andreea Magdalina, Coachella’s community director and founder of shesaid.so, a music-business community of women and nonconforming gender people that hosts an online job portal. “What’s tough is people looking for jobs right now, because things are shifting really quickly. The market is going through a consolidation phase.”
For now, though, online recruiters are seeing bleakness in the business. (In addition to recent layoffs at DSPs and labels, music journalism has taken a devastating hit, with Conde Nast downsizing Pitchfork and newspapers such as the Los Angeles Times firing entertainment writers and editors.) Recent music-related opportunities on ZipRecruiter, according to Julia Pollak, the company’s chief economist, have been in teaching, therapy or junior-level positions.
“There’s not tremendous growth happening in these industries,” she says. “The sort of high-paying music-manager kind of roles that are the most attractive are in very short supply.”
Noticing the same trends over two months of unemployment, Gonzalez has broadened her job search: “I’m hopeful that I can find something where I can make an impact, whether it’s in the music industry or a different industry. It’s all a learning path.”
LONDON — Hipgnosis Songs Fund’s shareholders have voted overwhelmingly in favor of passing a special resolution that authorizes the payment of up to 20 million pounds ($25 million) to prospective bidders seeking to acquire the fund’s assets.
The special resolution was approved by 99.9% of the fund’s shareholders at an extraordinary general meeting held in London on Wednesday (Feb. 7), according to a regulatory filing.
It gives Hipgnosis Songs Fund‘s (HSF) board of directors the power to pay a fee capped at £20 million to any prospective bidder or bidders making a “bona fide” offer or offers to acquire one or more of the company’s subsidiaries which own music assets, and/or some of the fund’s music rights on favorable terms. The fee is meant to reduce the risk of making an offer for Hipgnosis Songs Fund’s music catalogs by providing “significant protection” against their due diligence and acquisition costs.
In a statement, Robert Naylor, chairman of Hipgnosis Songs Fund, thanked shareholders “for their continuing support” and said the company’s board “remains focused” on its strategic review, “under which it is looking at all options to deliver shareholder value.”
The London-listed fund, which owns full or partial rights to the song catalogs of artists ranging from Justin Bieber, Neil Young, Bruno Mars, Jimmy Iovine, 50 Cent, Shakira, Blondie, Justin Timberlake, Lindsey Buckingham and many more, hopes that the enticement of a large fee will help draw potential bidders.
In October, shareholders voted against the music royalties fund’s proposed $440 million deal to sell 29 catalogues to Hipgnosis Songs Capital – a partnership between investment giant Blackstone and the fund’s investment adviser Hipgnosis Song Management – citing the lack of an “up-to-date” valuation.
October’s annual meeting of shareholders also saw a majority of investors vote against a resolution “to continue running the fund in its current form” — a so-called “continuation vote” — commencing a six-month countdown for the board to come up with a plan “for the reconstruction, reorganisation, or winding-up of the company.”
That led to the installation of a new executive board with Naylor replacing Andrew Sutch as chairman in November.
Last year wrapped with Hipgnosis lowering the value of its music portfolio following what Naylor described to investors as a strained relationship with its investment advisor, the Merck Mercuriadis-led Hipgnosis Song Management (HSM), over the catalog’s worth.
This year has so far begun on an equally rocky footing with the fund’s board of directors calling into question HSM’s ability to field competitive bids for its assets.
A major sticking point is the investment advisor’s call option, which gives it the right to purchase the company’s portfolio if its contract with the fund is terminated with less than 12 months’ notice, among other scenarios. The fund’s board contends that Hipgnosis Song Management’s call option harms its ability to receive competitive bids.
Last week, Mercuriadis announced that he will be stepping down as chief executive officer of Hipgnosis Song Management to take up a newly created chairman role with Ben Katovsky replacing him as CEO.
Hipgnosis Songs Fund’s share price was roughly flat at 65 British pence ($0.84) following Wednesday’s extraordinary general meeting.
The Nashville Songwriters Association International (NSAI) has selected its leadership for the coming year.
Lee Thomas Miller has been selected to serve as president, while Jenn Schott will serve as vp of the organization. Outgoing president Steve Bogard, who previously served as NSAI president from 2006-2012 and was elected to the role again in 2017, is the longest-running president in NSAI’s history. Bogard chose not to seek another leadership term, though he will continue serving on NSAI’s board of directors.
The results of the general election also include new board member Trannie Anderson joining for a first term, while 10 current board members were re-elected to two-year terms: Steve Bogard, Chris DeStefano, J.T. Harding, Byron Hill, Josh Kear, Jamie Moore, Jon Nite, Liz Rose, Jenn Schott and Emily Shackelton. Meanwhile, Roger Brown was re-appointed to a one-year term as legislative chair, while Rhett Akins and Caitlyn Smith were re-appointed to the organization’s “artist writer” board positions for one-year terms and Brett James was re-appointed to a one-year term in the industry liaison role.
The new additions join existing board members Miller, Kelly Archer, Sarah Buxton, David Hodges, Jessie Jo Dillon, Tim Nichols, Josh Osborne, Rivers Rutherford, Anthony L. Smith, Troy Verges and Parker Welling, whose terms expire in 2025.
“Steve Bogard led NSAI through complicated trials where we sought higher streaming rates, the Music Modernization Act, and many challenges as we sought to improve compensation for American Songwriters,” said NSAI executive director Bart Herbison in a statement. “Every songwriter in the United States owes him a handshake and thank you for his work and the thousands of hours he sacrificed. We are also glad to welcome Lee Thomas Miller who has served as President previously and is a proven, effective advocate. And Jenn Schott who will serve as NSAI Vice-President after years of experience on our board and Executive Committee.”
NSAI Board elections happen in two phases: voting by the NSAI professional songwriter membership and appointments by the NSAI board of directors. The board terms begin each year at the April meeting.
Queen is finally getting close to selling its catalog, according to sources — and may even already be in an exclusive period with an undisclosed suitor.
The music assets include recorded music, publishing and ancillary income streams, according to sources, who suggest Queen is seeking a $1.2 billion payday. Those ancillary revenue streams include revenue from the 2018 smash film Bohemian Rhapsody, merchandise and other licensing opportunities. The deal may also include royalties from the North America master recordings catalog, which Queen sold to the Disney-owned Hollywood Records at some unknown point since the label began licensing the band’s recordings in the early 1990s.
In the past, Hollywood has maintained that when it acquired Queen’s master recordings it was for life of copyright, which could mean the label has the band’s later albums in the U.S. for a total of 35 years, given that U.S. copyright law allows creators to terminate and reclaim their copyright after that term.
There have been numerous media reports about Queen seeking a record $1 billion catalog sale since the band started shopping it in May 2023 — the first of which by Music Business Worldwide. While many of those stories suggested that Queen was in discussions with Universal Music Group and that Disney, Hollywood’s owner, was also approached, sources say that the band’s music assets were shopped to only a few select suitors because the band members wanted to be comfortable in entrusting stewardship of its catalog. Moreover, because of the price the band is seeking, sources suggest that some of the potential strategic buyers may have partnered with financial institutions to make an offer.
Sources say that each band member — Brian May, Roger Taylor, John Deacon and the estate of the late Freddie Mercury — has his own lawyer involved to collectively shop the deal. Billboard reached out to lawyers who are or were officers for the band’s company, Queen Productions Ltd., as well as Hollywood Records and UMG, all of whom either declined a request for comment or didn’t respond.
The Queen catalog includes iconic hit songs such as “Bohemian Rhapsody,” “Killer Queen,” “Another One Bites the Dust,” “Radio Ga Ga,” “Somebody to Love,” “Crazy Little Thing Called Love,” “You’re My Best Friend, “We Will Rock You” and “We Are the Champions.” Since 1991, the Queen catalog has generated nearly 38 million album consumption units in the U.S.; and has nearly 41.7 billion in global on-demand streams, according to Luminate.
Since late 2018, Queen’s sales and streaming activity has been turbocharged by the Bohemian Rhapsody theatrical film that came out that year.
For perspective, from 1991 to the end of 2017, Queen’s U.S. sales and streaming activity totaled 25.9 million album consumption units, according to Luminate. And in the three years leading up to the Bohemian Rhapsody film’s release, Queen’s annual catalog album consumption averaged about 752,000 units. But then in 2018, with the film’s release that November, the band’s album consumption unit count jumped to 2.074 million. In 2019, its catalog activity exploded to nearly 3.58 million units.
At the end of 2023, Queen’s U.S. album consumption sales activity to date since 1991 totals nearly 37.7 million units, an increase of 45.5% from the 25.9 million in 2017.
According to financial reports from Queen’s shared company, Queen Productions Limited, filed with the United Kingdom’s Companies House agency, the band reported a net profit of 18 million pounds on nearly 41 million pounds in revenue for the year ended Sept. 30, 2022. The company also reported 32.4 million pounds in gross profit and 22.16 million pounds after expenses but before taxes. For the prior fiscal year, the company reported 13.6 million pounds in net profit on revenues of 39.2 million pounds.
Music assets usually trade based on financial models built around an average of the catalog’s performance for the most recent three years. They trade on what’s known as net label share — gross profit after cost of goods but before marketing costs. Or, in the case of publishing, net publishers share — gross profit after paying out royalties.
However, the Bohemian Rhapsody film produced incredible financial rewards, throwing off the kinds of averages commonly used to price these deals. When investors look at music catalogs, they try to eliminate what they consider one-time activity bonanzas like a new boxset coming out; or in the case of Queen, setting aside the sales and streaming activity in the immediate aftermath of the film.
By the time the Queen music assets came to market in May 2023, interested suitors were likely scrutinizing the catalog’s activity from 2020 to 2022, when the band’s music averaged nearly 1.53 million album consumption units a year. That’s more than double the 752,000 album consumption units that the band averaged in the three years before to the film’s release. After discounting 2018 and 2019 as an anomaly, Queen’s camp, however, is likely arguing that the movie has brought Queen to a bigger audience and that success will be sustained. But suitors considering the Queen acquisition nevertheless might be worried that some of that activity might still be from the film’s afterglow. And if so, how much decay might still occur before sales and streaming activity level off and become predictable?
Overall, in 2019 — the year the band’s financials were most impacted by the film — Queen reported 72.8 million pounds in revenue and, after cost of sales, a gross profit of 58.8 million pounds. In the three years prior to the movie being released, from 2016 through 2018, the Queen catalog averaged 17.6 million pounds — due to an atypically low 2016 when revenue was only 12.34 million pounds — while gross profit averaged 13.5 million pounds. From 2020 through 2022, the catalog averaged revenues of 40.7 million pounds, and gross profits of 22.2 million pounds.
It’s likely that the Queen financials don’t include all Queen revenue, as well. For example, while it may include music publishing royalties paid to the band’s publishing company, it likely doesn’t include the individual payouts from global collection societies that are paid directly to writers. With that under consideration, Billboard estimates Queen’s publishing revenue likely totals about $17 million annually, based on the 2020–2022 three years average.
For masters, Billboard estimates — also based on a three-year average — annual global revenue of about $48 million for the Queen catalog. Of that, about $16 million is from North America — where sources say the band receives artist royalties. For the remaining $32 million outside North America, Queen owns its catalog. Figuring Queen takes a quarter of the revenue from North America, and three-quarters elsewhere, the band would earn roughly $28 million annually off recorded music.
In all, that’s about $45 million that Queen earns from recorded and publishing annually, based on estimates.
Sources say Queen’s annual royalties in the deal total about $50 million, which likely also includes royalties from Bohemian Rhapsody DVD and Blu-Ray sales, band merchandise and Queen theatrical productions in the U.K.
Valuing Queen’s publishing catalog at a 25-times multiple would come to about $420 million. The masters and other income streams at a 20 times multiple would bring that valuation to $660 million. And then, adding in other tertiary income streams and then likeness and image rights could get it to $1 billion valuation.
Queen is seeking more than that, though. And the steep $1.2 billion price tag sources suggest could be one of the reasons why the catalog has been in play for so long. Now, though, it seems a deal may finally be close.
Luminate continues in its mission to unify data with the acquisition of Quansic, a specialist music data company with a focus on artist identification services.
Announced today (Feb. 6), the arrangement is another step in Luminate’s efforts to unify data for the entertainment industry, by tapping Quansic’s expertise in the harmonization of metadata across record labels, streaming platforms, song publishers, and artist services within the music ecosystem.
Explore
Explore
See latest videos, charts and news
See latest videos, charts and news
Based in France, Quansic maintains the world’s largest artist identification database which includes over 2.5 million ISNIs (artist identifiers) and 200 million asset identifiers.
Terms of the transaction weren’t disclosed.
With immediate effect, Quansic’s team will join Luminate, remaining under founder and chief scientist FX Nuttall, who now reports to Luminate CEO Rob Jonas.
“Quansic has earned the trust of many key leaders in the music data space, which is no surprise given the quality of the product and service FX and his team have built,” explains Jonas in a statement. “We warmly welcome them into the Luminate family and look forward to collaborating and taking our music data offerings to the next level, especially as we close the gap between the disparate data that labels and publishers have historically relied on to drive their businesses forward.”
In future, Quansic’s clients will have the option to access Luminate’s industry-leading streaming and sales data, and Quansic’s data will be incorporated into Luminate’s new data platform, which was announced last year and will be launched in several phases over the coming months, serving clients in the music industry and beyond.
“Combining our unique data quality with Luminate’s scale, capabilities and influence is essential for advancing our vision to unify data within the music industry,” adds Nuttall. “We are eager to scale that work with Luminate and look forward to bringing unprecedented value to the music industry.”
Luminate is an independently operated company owned by PME TopCo, a PMC subsidiary and joint venture between Penske Media Corporation and Eldridge. Billboard is an independently operated company owned by PME Holdings, a subsidiary of PME TopCo.
Oscar-nominated actor Kate Hudson has signed with Virgin Music Group for her recorded music debut. The first single under the deal, “Talk About Love” — co-written by Hudson with Linda Perry and Danny Fujikawa — was released on Tuesday (Jan. 30). Hudson is managed by Jason Owen and Jake Basen at Sandbox Entertainment Group.
33 & West Talent Agency is expanding its music roster. In a signing spree, the company has announced the addition of rapper Dharius, rap group La Santa Grifa and hip-hop artist Charles Ans. According to the company, the addition of the three Mexican acts “reinforces the agency’s existing Latin music roster and further signifies 33 & West’s commitment to diversity, aligning with the growing influence and the overdue recognition of Latin artists in the United States.” – Griselda Flores
Zerb has signed with UTA for global representation outside his native Brazil. The DJ is managed by Gabriel Tofoli at Salt N Pepper Management and signed to Th3rd Brain Records with distribution by FUGA.
ADA UK has signed emerging U.K. rapper Nemzzz to an album deal. The company has also signed a deal with Dutch EDM DJ Chuckie and his Voltage label. Nemzzz is booked by Craig D’Souza at WME. Chuckie is represented by managers Sergio Bienati and Kevin Harris at Club Class as well as booking agents Simon Halliwell and Aaron Cook at Active Talent Agency (Europe and Asia); Charlie Irwin at Spin Artist Agency (United States); and Sophie van Deventer at Storm Agency (Benelux).
German American indie-pop artist Noah “NoMBe” McBeth has signed a global record deal with Position Music. His first single with the company, “Space for Two,” is slated for release on Friday (Feb. 9). NoMBe is managed by Eric Vogel and James Hadid at JET Management and booked by Alex Becket and Mike Mori at CAA. He is also signed to Position for publishing.
Nettwerk has signed L.A.-based indie-pop artist renforshort and L.A.-based singer-songwriter Rose Betts. Renforshort’s first release on the label will be “serpentine” and Betts’ will be “War,” with both tracks set to drop on Friday (Feb. 9). Renforshort is represented by Riley Kirkwood at CAMP Management and agents Zac Bluestone and Tom Windish at Wasserman. Betts is represented by Jeremy Skaller, Jared Cotter and Madison Bickel at The Heavy Group and agents David Zedick, Alana Gitt and Akhil Hegde at UTA.
Phil Vassar has signed with agents Nick Meinema and Travis James at Action Entertainment Collaborative for global booking representation. Vassar is kicking off his 2024 tour on Feb. 29 in Savery, Wyo. He is managed by Amy Millslagle; his label is American Soul.
Baton Rouge, La.-based singer-songwriter Odie Leigh has signed with Mom + Pop, which released her new song, “No Doubt,” on Jan. 25. Leigh is represented by manager Eric Jones at Homestead Artists and booked by Wasserman’s Yitzi Peetluk and Lindsay McDowell in North America, and by the agency’s Rob Challice and Laura Flynn in the United Kingdom and the European Union.
Athens, Ga.-based indie rock band Futurebirds has signed a global recording deal with Dualtone Records, a MNRK Music Group company. A new album is slated for release later this year. The band is represented by Dawson Morris at GT Music Group and Jon Prine at Wasserman.
Nashville-based management company Big Al Management, led by founder/CEO Alex Evelyn, has signed CMT Next Women of Country alum Camille Parker to its roster. Parker recently released her debut EP and was featured on Apple TV’s original series My Kind of Country. – Jessica Nicholson
Page 1 Management has signed Nashville-based songwriter/producer/multi-instrumentalist Evan Cline and L.A.-based artist/songwriter/producer Sayak Das to its roster; both will be represented by Nina Musolino out of Nashville. Das is slated to release new music this year.
Country singer-songwriter Auburn McCormick has signed with the newly launched, Nashville-based label Rose & Thorn Records, founded by Connor Rankin and co-founded by Jared Scott.