Record Labels
As 2025 comes to a close, it’s time to begin the annual review of the top music business stories of the year. To kick things off, we’ll start with the engine that helps music reach the world: the record labels, which have gone through yet another period of seismic change. Whether it was the overarching […]
Trending on Billboard Red Bull Records is shutting down after nearly two decades, Billboard has confirmed. “After 18 years of operation, Red Bull Records globally will be winding down by the close of the year,” a Red Bull spokesperson tells Billboard. The news was first reported by Hits Daily Double. Related Launched in 2007 by […]
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In 2025, Universal Music Japan‘s president and CEO, Naoshi Fujikura, was chosen for inclusion in Billboard‘s Global Power Players list for a fifth consecutive time, making this his sixth appearance. In this year’s interview, he talked about the potential that Universal Music companies in other countries see in the Japanese market, the challenges Japan faces, and hits from artists such as Mrs. GREEN APPLE and Fujii Kaze.
According to IFPI, master recording revenue rose worldwide in 2024 for the 10th consecutive year, but in Japan it fell from last year’s level. This was due to declines in CD album and music video sales that weren’t made up for by digital sales. How do you feel about this?
To start off with, the fact that the global music market has grown for ten consecutive years is not something to be taken for granted. It’s a wonderful achievement. In 2025, the amount of growth in some of the more developed markets was slower, but the number of subscribers in China grew materially. I think it’s wonderful that we’re seeing continuous worldwide growth, even if the rate of growth varies by country.
People have pointed out that Japan has been slow to adopt streaming, but attending global conferences, what I’ve seen is that people aren’t looking at the Japanese market as some sort of anomalous far-Eastern market, but instead they’ve started talking about it as a business model that offers valuable insights for the rest of the world. In many countries, streaming is the main revenue source, and companies are competing for market share, but in Japan, physical accounts for 60% of revenue. Streaming co-exists alongside this. So the situation isn’t gloomy, we have also been cultivating a superfan culture for many years. Looking at our artist roster, Mrs. GREEN APPLE is the first artist in Japan whose songs have broken a total of 10 billion streams, but their best hits album, 10, sold over 770,000 copies in its first week. timelesz, who gained a massive buzz from their auditions program ‘timlesz AUDITION PROJECT’ on Netflix and sold roughly 650,000 copies of their album FAM in its first week. I don’t think you can make the sweeping generalization that Japan has been slow in shifting to digital media.
Another of the pressing issues facing Japan is strengthening its exports. According to the “Export Power” ranking announced by Luminate, in 2024 the No. 1 country was the U.S., followed by the U.K. at No. 2, Canada at No. 3, and South Korea at No. 4. Japan was ranked in 14th place. What difficulties do you think Japan faces with respect to exports?
I think there has traditionally been a lack of resources and experience in marketing to overseas audiences. There aren’t enough people who can share great artists or pieces of music in an appealing way, using language that resonates with the local markets. We have few experiences of success in creating overseas hits, and I think we need to be more ambitious. But what’s really important is to present songs and artists with universal appeal that transcends language barriers. I think if we do that, it will fling open the door for us. We believe it is only a matter of time though for more Japanese artists to break through globally, and at UMJ we are already turning this into reality with artists like Fujii Kaze, Ado and others.
Ado appeared in a Billboard US’ podcast, and has also been covered in several articles, right?
In 2025, Ado went on a tour of 33 countries, bringing a total of over 500,000 people to her shows. Her merchandise is also extremely popular, so her influence on the industry is incalculable. Thanks to the movie ONE PIECE FILM RED, she crossed the language barrier to be an artist that people around the world wanted to hear in person at least once. At her overseas shows, almost all of the audiences were made up of local fans. That impressed on me the fact that global success could be seen not only in winning awards or taking top positions in the charts, but also through this kind of success.
Right, it can be another kind of record for artists to aim for. On the topic of awards, they’ve announced that the MUSIC AWARDS JAPAN will be held again in 2026.
We’ve worked with Japanese artists, like Joe Hisaishi, Tomoyasu Hotei, Perfume, and MIYAVI, on their overseas activities. I’m glad to see how the Japanese music industry is coming together now, across company and organization lines, to hold these awards, even receiving government support. The other day, in New York, I met with the representatives of Universal Music Group in different countries, and one of our colleagues from Germany was surprised that this idea became a reality.
When the winner of the Artist of the Year award was announced, you could be seen cheering behind Mrs. GREEN APPLE.
I’d actually been watching from the balcony at first. But as the announcement of different winners went on, Mrs. GREEN APPLE’s name wasn’t coming up, so I started to get worried. So when there was a break, I knew I just couldn’t stay up there in the balcony, and I moved near the band. When they announced that Mrs. GREEN APPLE won, I was so surprised and overjoyed that I sprang out of my seat. It was apparently caught on camera. The results are determined by voting, so I couldn’t even guess who might win until right before the results were announced. All that worry just made my happiness all the greater.
The smile on your face, and the look of relief on the faces of everyone in the band, was really striking. This year Mrs. GREEN APPLE and Fujii Kaze are making big stirs in the charts. In addition to putting out new releases for five straight months, Mrs. GREEN APPLE’s been getting a lot of mass media exposure through an NHK TV series and through movies. Fujii Kaze released a hit album that’s entirely in English. These two artists are using totally different approaches, but they’ve both created hits. What are your feelings on that?
Fujikura: There’s something that Motoki Ohmori and Fujii Kaze both have in common, which is that they both want to sing where they’re needed. That’s what motivates them. I’m always telling employees to maximize the value of artists.
As a result of that, for Fujii Kaze, instead of us in Japan approaching overseas labels, we had multiple labels approaching Fujii Kaze and asking to work with him, which led to an agreement being signed.
In September, Fujii Kaze’s Prema, which is all in English, became a hit with sales of around 200,000 copies. His songs are also all getting heavy streaming plays. It’s been a wonderful success. One of the issues in Japan is a decline in the number of people who listen to international music. I think it’s really significant how he’s opened up a new market, and I’m looking forward to seeing where he goes in the future.
Fujii Kaze has a lot of fans outside Japan, in Southeast Asia. Was a lot of attention paid to these overseas markets when promoting the new album?
When “Hachikō” was released on streaming, we held an event, but we held it in Thailand, not Japan. That led to it being shared not only in Thailand but around the world. In the past, not being in Japan on the day of a song’s release would have been unthinkable. But with this many fans now accessible around the world, where you need to be and what you need to do to generate excitement has changed.
We’re already in the second half of the year. What do you think it will be like?
I may be repeating myself from previous years, but without good artists, you can’t generate excitement, and you can’t create hit songs. So it’s important not to just get caught up in techniques and monetization. At the heart of it all, you have to have great artists and great music. I want to keep maintaining that philosophy moving forward, as well.
—This interview by Seiji Isozaki and Naoko Takashima first appeared on Billboard Japan
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Ne-Yo, MC Jin, Indian singer and actor Sonu Nigam and former Warner Music Asia co-president Jonathan Serbin have unveiled a new record label, Pacific Music Group, that will focus on talent from across the Asian continent, the group announced today (Nov. 24). Pacific, which will be based in Hong Kong, will aim to both promote local talent globally and serve as a hub for international artists who want to create a footprint in the region.
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The three artists will have A&R input and serve as mentors to the label’s talent. The label says it will include imprints focusing on pop, hip-hop, R&B, electronic music and local genres.
“Launching Pacific Music Group isn’t just a business move, it’s a personal mission,” Ne-Yo said in a statement announcing the label. “As an individual of Chinese descent, I’m proud to use my resources to help discover and elevate the next generation of talented Pan-Asian superstars. I’ve toured across Asia several times and witnessed the evolution of the music scene, so I’m really excited to make history and bring the region’s rich culture to the forefront of the global stage.”
“Asia has emerged as one of the most dynamic forces in the global music industry,” added Serbin, who spent five years overseeing Warner’s Asia operations, following five years as Billboard’s head of Asia. “With half the world’s population and three of the top 10 music markets, the region is primed to lead on the world stage. At the same time, rapidly growing markets like India, Indonesia, Vietnam and the Philippines offer immense potential. We believe the time is right for a music company born in Asia, but built with a global perspective from day one.”
Pacific’s stated goal is to reflect the global music axis around the Pacific Ocean, in a similar way that Atlantic Records set out to do when it was founded decades ago. The label says it will announce its artists in the coming months and begin releasing music soon after.
“Asia is full of talent with unique stories, fresh styles and authentic messages waiting to be shared with the world,” said MC Jin, who will oversee Pacific’s hip-hop imprint, in a statement, adding that the genre helped him find his own voice as an artist and Chinese American. “With Pacific Music Group, these individuals will now have a chance to share their art rooted in creativity and culture in an impactful way.”
“India alone has 1.6 billion people, but Indian artists want to connect well beyond our borders,” added Nigam. “The same is true across Asia. There is a hunger to grow globally and the potential to bring the richness of our cultures to the world. With Pacific Music Group, we’re not just exporting talent, we’re helping artists thrive both at home and abroad.”
Trending on Billboard Austin Daboh has left his senior role at Warner Music’s Atlantic Records after five years. Daboh, who served as executive vice president of Atlantic Records U.K., announced the news on his LinkedIn profile on Thursday (Nov. 20). Daboh also served as president of Black Music at the label from 2023 onwards. He […]
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Warner Music Group (WMG) reported a 23% decline in annual profit for the fiscal year ending Sept. 30 on Thursday (Nov. 20), as restructuring costs and the end of the company’s BMG distribution deal weighed on revenue.
However, executives struck an optimistic tone during their earnings presentation, pointing to higher publishing and recorded music revenue, driven by subscription streaming growth, as evidence that their cost-cutting and reinvestment strategy was working.
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WMG’s share price fell 2.66% on Thursday to $29.69. However, analysts at Guggenheim Partners, who have rated WMG a buy over the past few quarters, wrote in a note to investors that the company’s subscription streaming revenue and growth forecast is “encouraging.”
“We modestly raise our [full year 2026] revenue … estimates primarily reflecting higher subscription revenue as a result of pricing adjustments,” Michael Morris, equity analyst at Guggenheim, wrote on Thursday.
Here are a few of the highlights from WMG’s earnings presentation and filings.
Digital music revenue growth and market share improvement
WMG’s digital income improved by 3% in the year, helped by two straight quarters of recorded music streaming growth. Music subscription streaming rose by 8.5% during the quarter. Ad-supported streaming grew by 3%.
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This was driven by hits from sombr, whose “Back to Friends” has spent 33 weeks on the Billboard Hot 100, Cardi B’s Am I The Drama?, which has spent the past two months on the Billboard 200, and Twenty One Pilots, whose Breach had the best debut week for a rock album in six years.
On an earnings call, WMG CEO Robert Kyncl noted that the company’s share of the Spotify Top 200 grew “by around 6 percentage points versus fiscal 2024” and that it “had the No. 2 market share” for the full quarter.
Meeting savings goals by using AI for dealmaking
WMG is on track to meet its goal of cutting internal costs by $200 million in 2026 and $300 million in 2027, said Armin Zerza, WMG’s CFO. Because the company is investing more in front-line artist development and key regions and genres, Zerza added, it has focused on savings in back-office functions.
In addition to introducing the cloud-based finance software SAP in Zerza’s department and using data to tailor marketing spend, WMG is working with an AI company to help “optimize” its mergers and acquisitions strategy, Zerza added.
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Ultimately, the company’s cost savings plan, along with other growth, is expected to drive a 150 to 200 basis point improvement in WMG’s adjusted operating income before depreciation and amortization (OIBDA) margins.
Details on the Tempo and Bain Deals
WMG’s February acquisition of 50.1% of Tempo Music was for a “consideration of $77 million, including transaction costs,” and it included the option to buy out the remainder of Tempo for $73 million before the end of November 2027, according to an SEC filing released Thursday. That acquisition saw WMG recognize $351 million in publishing copyrights and $88 million in recorded music catalogs, along with $13 million in cash and other assets. Also included in the acquisition was $311 million of asset-backed securities secured by some of Tempo’s catalog, according to the filing. The Tempo catalog includes rights to songs by Wiz Khalifa, Florida Georgia Line and Brett James.
Additionally, Warner disclosed in filings that as part of the joint venture it announced in June to acquire catalogs with Bain, it secured a $500 million line of credit.
Zerza said during the earnings presentation that WMG’s joint venture with Bain has a robust pipeline of deals they expect to begin announcing in 2026.
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Andrew Lloyd Webber has signed with independent record label The Other Songs for both his back catalog of classic Broadway recordings and future works. This deal is in partnership with The Orchard who will oversee distribution.
This is not the first time Lloyd Webber has worked with the London-based indie label. Together, The Other Songs has already managed the recent releases of Lloyd Webber’s cast album for SUNSET BLVD., featuring Nicole Scherzinger, and the single “Don’t Cry For Me Argentina,” featuring Rachel Zegler, from the recent West End revival of EVITA.
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News of the deal comes as Lloyd Webber’s catalog hits a new commercial resurgence. SUNSET BLVD. came back to Broadway last year to rave reviews. EVITA brought the musical classic back to the West End with a modern twist, bringing “Don’t Cry For Me Argentina” to the streets of London in the middle of the show. The Phantom of the Opera is thriving on TikTok, fueling a new single-day streaming peak for Lloyd Webber at the end of October. The classic story has also been recently revived through a new experiential take on the story called Masquerade.
The Other Songs is a London-based label, publishing and management company founded by Alastair and Billy Webber, in 2018. Known for its start as a local songwriter event by the same name, which championed the people behind the hits to step out of the shadows and share their new compositions themselves, The Other Songs prides itself on its creative-first mentality and made headlines in 2023 for announcing its plans to offer master points to all non-performing songwriters. Now, their roster contains talents like Bruno Major (publishing), SUPER-Hi (label), Ren (label, publishing), Raffa FL (label) and Julia Church (publishing).
Lloyd Webber joins other legendary clients like Pete Bellotte, the writer behind Donna Summer’s “I Feel Love,” for bespoke catalog management.
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Lloyd Webber said: “I am very excited that The Other Songs will be partnering with me to represent my past and future recording work. After the success of their albums of Starlight Express, SUNSET BLVD and EVITA, I am thrilled that we will now have an exclusive long term relationship. The Other Songs mission to doggedly champion songwriters, at a time when they have and are being treated as second class citizens in the music industry, has hugely resonated with me. I am really looking forward to working with the new artists the collaboration will bring me at a time when I am writing as much if not more than I ever have.”
Alastair Webber, co-founder of The Other Songs, said: “Over the past year, over 4.5 million people have seen an Andrew Lloyd Webber musical, reflecting the sheer scale and global cultural impact of his work. Our focus now is to ensure Andrew’s recording catalogue connects with new generations, while also giving him the tools to collaborate with today’s leading songwriters, producers and artists.
“Following the success of SUNSET BLVD and EVITA, we’re very proud to announce a deeper partnership with Andrew and the forward-thinking teams at LW Entertainment and The Orchard, as we continue to build on one of the most uniquely positioned and best-known privately owned music catalogues in the world.”
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Billy Webber, co-founder of The Other Songs, said: “We’re thrilled to partner with LW Entertainment on an iconic catalogue. Musical theatre’s reach is broader than it’s often given credit for, and the opportunity to unlock its full potential is significant. Our focus is careful guardianship and bold growth, bringing these works to new audiences with the innovative teams at LW Entertainment and The Orchard.”
Brad Navin, CEO, The Orchard, added: “We are incredibly excited to deepen our relationship with LW Entertainment and The Other Songs to include Andrew Lloyd Webber’s extraordinary music catalogue. Andrew is experiencing a remarkable renaissance with the success of SUNSET BLVD, EVITA, and Masquerade, among many other projects. The Orchard is committed to maximizing this momentum, leveraging our global infrastructure to bring both his iconic, era-defining works and new creative endeavors to an even wider and more diverse audience worldwide, ensuring his legacy continues to thrive across all media and territories.”
James McKnight, CEO of LW Entertainment said: “Building on decades of strong record sales all over the world, we have reshaped our relationships with our music partners. Stepping into a new era with a new strategy and approach, we are delighted to forge a much broader and deeper partnership with The Other Songs and The Orchard now leading on Andrew Lloyd Webber’s incredible body of recorded work. With one of the largest and most engaged fan bases in the world, we know the opportunities are limitless and we are excited to work with these innovative organisations to realise our shared, global ambitions.”
Trending on Billboard Warner Music Group reported a 23% decline in annual profit for the fiscal year ending Sept. 30 as the termination of BMG’s distribution agreement resulted in lower revenue, though higher publishing and recorded music revenues bolstered annual revenues. WMG’s net income for the 12 months ending Sept. 30 fell to $370 million […]
Trending on Billboard Warner Music Group and Stability AI have formed a strategic partnership to advance what they’re calling “responsible AI in music creation.” The companies say the alliance, announced Wednesday (Nov. 19), is designed to help build an ethical music ecosystem that supports artists and songwriters. The initiative will focus on building professional-grade tools […]
Trending on Billboard Avex Music Group is launching a new division that will offer artists the type of comprehensive career direction that’s typically associated with managers, the company tells Billboard. Related Dubbed Artist Advisor Services, the division — led by Avex Music Group CEO Brandon Silverstein — will offer artists strategic support via an à la […]
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