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Universal Music Group chairman/CEO Lucian Grainge addressed the company’s ongoing licensing dispute with TikTok in its latest earnings call on Wednesday (Feb. 28), saying: “there must not be free rides for massive global platforms such as TikTok that refuse to meaningfully address issues around AI platform safety or pay their fair share for our artists’ and songwriters’ work.”
Boyd Muir, UMG’s CFO and executive vp, also revealed during the earnings call that UMG would “focus on accelerating [its] partnerships” with Meta, Snap, YouTube and more competing social platforms and that it would make more announcements about this “in the coming weeks.”
At the end of January, UMG, the world’s largest music company, opted to let its licensing agreement with TikTok expire, citing that the short-form video app refused to pay the “fair value” for music. It also cited other concerns around artificial intelligence. “TikTok proposed paying our artists and songwriters at a rate that is a fraction of the rate that similarly situated major social platforms pay,” UMG wrote in a letter to its artists. Within hours, TikTok fired back at UMG in reply, saying that the major music company “has put their own greed above the interests of their artists and songwriters.”
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Since then, the companies’ negotiations have been seemingly stuck at a standstill and millions of UMG-controlled recordings have been removed from the platform. Starting Tuesday (Feb. 27), the takedowns went even further, including the removal of any recording that features one or more Universal Music Publishing Group-signed songwriters for the first time. This impacts such major recording artists as Beyoncé, Harry Styles and Bad Bunny, even though they don’t record for UMG.
In response to the publishing takedowns, TikTok said in a statement on Wednesday, “[UMG’s] actions not only affect the songwriters and artists that they represent, but now also impact many artists and songwriters not signed to Universal. We remain committed to reaching an equitable agreement with Universal Music Group.”
UMG’s earnings call on Wednesday focused largely on TikTok during the the question and answer portion, as well as other core development for the company like its new deal with Chord Music Partners.
While UMG has previously said TikTok only makes up about 1% of the company’s total revenue, chief digital officer and executive vp Michael Nash said he believes that’s not necessarily all a loss amid the negotiation standoff. “In general, if consumption shifts from TikTok to other short video platforms like Reels or YouTube Shorts, we believe we can, in fact, recapture some lost revenue,” he said during the call. “Keep in mind, over half of TikTok monthly active users already also use other short video services. In some markets, that percentage is as high as 70%. These are services that monetize engagement at a much higher rate, so revenue positive consumer migration is easily foreseeable.”
Nash also said that UMG has been “providing notices to effectuate the muting of million of videos every day for the last two weeks” on TikTok to aid in the takedown process, which started earlier this month. “And that’s the recorded music content. Keep in mind that our publishing copyrights are just now starting to be enforced on the platform.” He noted that the company has seen “no discernible negative impact” on its “broader digital business’ by leaving TikTok to date but added that “that’s qualified by the fact that we’re very early on in the process… In fact, we’ve seen a slight uptick in terms of frontline consumption and catalog consumption over this short period of time.”
In response to one question about TikTok, Grainge responded, “I’m also not prepared to compromise the future of social category by doing something that completely undermines the economics for us and for everybody else.” One of UMG’s key concerns among the licensing discussions has been that if it were to accept a diminished royalty from TikTok, then other social media platforms could request the same.
But Grainge vowed that UMG likes “to be friendly.” He said, “We are friendly. My phone is open, unfortunately, 24 hours a day. We hope that we can find a solution… we like win-win situations. We’ve laid out what’s important to us, and I believe important to our industry.”
When an investor asked if this remark indicated that UMG was waiting for TikTok to call them and reengage on a deal structure [UMG has] previously presented,” Nash said “we’re not going to comment on the status of discussions with TikTok for obvious reasons.”
At the end of the call, Grainge downplayed TikTok’s impact on music marketing: “I mean, let’s put this into perspective,” he said. “Apple, Amazon, Spotify, YouTube, all the social categories, the fitness categories, digital radio, Sirius, Pandora, iHeart… [TikTok is] one, it’s not a material part of the multidisciplinary jigsaw, where we promote and market our music globally”
As part of its fourth-quarter earnings call, Universal Music Group (UMG) said that a “strategic organizational redesign” it announced Wednesday (Feb. 28) would result in 250 million euros ($271 million) in annual savings by 2026, with a first phase of 75 million euros ($81.3 million) in 2024 and 125 million euros ($135.5 million) in 2025. The redesign is expected to include the long-awaited layoffs that have been signaled by the company for months, though the specifics of how many employees would be affected and what percentage of the overall workforce it would amount to was not disclosed.
The “plan is designed to achieve efficiencies in targeted cost areas while strengthening labels’ capabilities to deepen artist and fan connections,” according to a press release. The first phase will involve a general headcount reduction, while the second phase, which is scheduled to begin next year, will be “a combination of further ex-U.S. headcount reduction and other operational efficiencies,” according to the company’s investor presentation.
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A representative for UMG declined to comment on the specifics of the reductions.
“To put it simply, we’re creating the blueprint to the music company and the labels of the future,” chairman/CEO Lucian Grainge said on the earnings call, adding that labels will have “even greater flexibility and speed” in supporting artists, as well as “access to our highest performing internal teams and resources to bring artists to even higher levels of success.” The redesign “carefully preserves what we’re best at: creative A&R, marketing independence, unique label brand identities” and an entrepreneurial and competitive spirit, Grainge continued. The efficiencies, he said, will “generate more impactful support for promotion, distribution, audience monetization, D2C, e-commerce and other areas.”
In its fiscal year 2023, UMG earned a net profit of 1.26 billion euros ($1.37 billion) on revenues of 11.11 billion euros ($12 billion), the company said.
Layoffs at UMG have been telegraphed for months, ever since Grainge said in a third-quarter earnings call last October that UMG would need to “cut to grow.” Rumors further began to circulate in early January, when Grainge noted in his New Year’s memo to staff that despite UMG being the “most successful company in the history of the music industry,” the company would “further evolve our organizational structure to create efficiencies in other areas of the business, so we can remain nimble and responsive to opportunities as they arise, while also taking advantage of the benefits of our scale.”
The impending layoffs were more explicitly acknowledged on Jan. 12, after Bloomberg reported that UMG would be cutting hundreds of jobs sometime in the quarter. In response, a UMG spokesperson released a statement that echoed Grainge’s note, including that the company would “maintain our industry-leading investments in A&R and artist development,” while also promising to continue “investing in future growth — building our e-commerce and D2C operations, expanding geographically, and leveraging new technologies.”
Things then came into clearer focus on Feb. 1, when Grainge announced in an internal memo that Universal would be restructuring its label operations, adopting a loose East Coast-West Coast operation wherein Republic Records co-founder/CEO Monte Lipman would begin to oversee Republic, Def Jam, Island and Mercury, and Interscope Geffen A&M chairman/CEO John Janick would take responsibility for Interscope, Geffen, Capitol, Motown, Priority, Verve and Blue Note. Days later, Capitol Music Group chair/CEO Michelle Jubelirer announced she was stepping down from her post and was replaced by Geffen president Tom March as chairman/CEO of Capitol and Universal Music Publishing Group veteran Lillia Parsa joining as co-president alongside Arjun Pulijal.
Still, the threat of layoffs continued to loom, with many staffers unsure of their positions and unclear as to when the cuts would arrive. The first phase of the redesign announced today will be “execute[d] on immediately,” according to a press release, though the scale in terms of people remains unclear.
UMG is not alone in instituting layoffs in recent months. On Feb. 7, Warner Music Group (WMG) announced simultaneously that it had just recorded its best quarter in its history and would also be laying off 10% of its staff, or some 600 people, and offloading its owned and operated media properties in an effort to save around $200 million that it said it would reinvest in the company. That itself came less than a year after then-new WMG CEO Robert Kyncl announced a 4% staff reduction, affecting some 270 people, “in order to set us up for long-term success.” Cuts at other large record companies are also expected, sources say.
The broader music and media industry is also in the midst of a brutal run of layoffs: Atlantic Music Group, SiriusXM, Amazon Music, TikTok Music, CAA, Discord, Meta, Downtown, YouTube, TIDAL and Spotify have all undergone layoffs in just the last year alone, to name just a few, some of them more than once.
When Uber Eats used mazie‘s “Dumb Dumb” in a commercial that played during the last Super Bowl, she ordinarily would have used the sought-after synch to promote the 2021 song relentlessly to her 375,000 TikTok followers. But her label, Goodbye Records, is distributed through Universal’s Virgin Music Group, which pulled its music from the social media platform at the beginning of February after negotiations for a new licensing deal fell apart. “It’s insane,” mazie says. “My song was just in a Super Bowl commercial, and I have to repromote it [by] using other people’s ripped versions of my song on the platform.”
The singer-songwriter, whose track went viral last year and says it “changed my life in every single way,” is one of many frustrated developing artists signed to or distributed by the world’s largest music company. They all have similar complaints: Their label contacts have spent years instructing them to focus the bulk of their marketing efforts on TikTok and its 1 billion-plus monthly active users. With their music no longer on the platform, they are scrambling for alternate ways to be heard.
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“A lot of us are left at the drawing board again, especially when we’ve gotten an artist over the anxiety of putting themselves out there on TikTok,” says Sabrina Finkelstein, manager of Los Angeles singer Kristiane. “Now that that’s gone, it brings you almost to square one.”
Kristiane is signed to Fader, a label distributed by UMG’s Virgin Music Group, so she’s building buzz for her upcoming Stray Dog EP by deemphasizing TikTok and talking to fans on Instagram Broadcast Channels and other platforms. “We’re putting up lost-dog posters all over New York and other cities,” says Finkelstein, who is also A&R director for the Sony Music-owned RECORDS label. “Small things you can do to bring it off TikTok and into the real world.”
Springfield, Mo., folk-country band Pawns or Kings can no longer post its 2022 track “Anymore” on TikTok, because Universal bought its distributor, Ingrooves, and merged it with Virgin Music Group — even after singer Edward Stengel spent $7,000 of his own money on a video. “That song was always our spearhead song,” says Stengel, who is still promoting the track on YouTube, Facebook and Instagram while posting older material released through independent label ONErpm on TikTok. But Pawns or Kings’ early music is darker than its current work, Stengel says, which makes the stopgap strategy “an abrupt pivot” for the band’s image.
Canadian rapper bbno$ says his 2021 track “Edamame,” which has nearly 426 million Spotify plays, was “having a moment” on TikTok when the UMG ban took effect. The artist had licensed the song to mTheory’s distribution division for a five-year period — the same mTheory that UMG acquired in 2022 (putting its top executives in charge of Virgin). “I’m actually fully independent. It was just this one deal that looped all the songs together, and I got fucked,” says bbno$, who is considering altering the song with pitch-correction and wild sound effects — such as the voice of SpongeBob SquarePants repeating, “I’m ready!” — to avoid detection from digital sweeps.
L.A. rock band Dead Posey, which released its single “Zombies” just days before the ban, sped up its songs on TikTok by 5% — an effective solution, although artists can’t link unofficial songs to official Spotify streams. “It has not been taken down,” says singer Danyell Souza, whose label, Position Music, has a Virgin distribution deal. Adds guitarist Tony Fagenson: “We’re hopeful this resolves soon in a favorable way to artists. In the meantime, we have to play some tricks to keep using this platform.”
UMG-signed and -distributed artists are also turning to their most potent asset on TikTok: fans. One of Kristiane’s followers recently posted a lip-sync video to a concert track, declaring, “At least UMG can’t take away my live audios.” Finkelstein is supportive of this approach. “No matter what, the fans are going to find a way to share their artists’ music and support them,” she says. “There are ways around it.”
This story will appear in the March 2, 2024, issue of Billboard.
The buzzword from music company CEOs so far in 2024? Superfans.
Already this year, the heads of Warner Music Group, Universal Music Group, Spotify and Live Nation have announced an intention to lean into better serving superfans of artists, with new initiatives and already one investment deal on the table. And today (Feb. 27), at the Web Summit conference in Doha, Qatar, WMG CEO Robert Kyncl announced that Warner would be building a new platform aimed at better connecting its artists with their biggest fans.
“Something we’re working on at Warner are these direct to superfan experiences,” Kyncl said, speaking on stage alongside newly-signed Warner artist Nora Fatehi. “I’ve assembled a team of incredible technology talent who are working on an app where artists can connect directly with their superfans, who are generally the people that consume the most and spend the most… and we’re focused on making sure that artists get data on these superfans.”
Kyncl hinted at the new platform, which is still early in development, in his New Year’s note to staff in January, where he said, “We need to develop our direct artist-superfan products and experiences,” adding that some things were already in the works. “Both artists and superfans want deeper relationships, and it’s an area that’s relatively untapped and under-monetized,” he said.
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The details of Warner’s app are still vague, though a source said more information should be coming in the next few weeks, and Kyncl mentioned something rolling out later this year. But already there are apps and platforms, such as WeVerse and Stationhead, that have done significant work in capturing the superfan community, connecting artists — including some of Warner’s biggest artists — directly with their biggest fans.
Other companies have hinted at the beginnings of their own strategies. Last week, Universal announced an investment in Complex and NTWRK, following the latter’s acquisition of the former from Buzzfeed, aimed at connecting artists with an online shopping option for fans; that came a month after UMG chairman/CEO Lucian Grainge’s own New Year’s memo to staff, in which he said, “The next focus of our strategy will be to grow the pie for all artists, by strengthening the artist-fan relationship through superfan experiences and products,” pointing to discussions with platform partners and in-house partnerships. In January, Spotify CEO Daniel Ek hinted at the creation of “superfan clubs” when mentioning new products. And last week, Live Nation execs talked about revamping the superfan experience for concerts, in a bet that it will drive more revenue.
While Kyncl didn’t specify what Warner has in the works, or how it will connect artists to fans, he underlined the need for the app to be available across platforms. “Artists want to work with every single platform… they don’t want to optimize just for one platform over another,” he said. “So a solution like this for superfans has to be a cross-platform solution. We, as a record label, are in a perfect position to do that because we work with all of the platforms. Historically, we haven’t had the technology talent to do this, but now we do… it’s an exciting piece of work that will launch later this year.”
Universal Music Group Nashville, known for its roster of country music artists including Keith Urban, Carrie Underwood, Eric Church and Chris Stapleton, has launched a new production arm of the Nashville-based entertainment company, focused on film and television projects.
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UMG Nashville‘s Sing Me Back Home Productions will delve into the deep catalog of artists throughout UMG Nashville’s history, in addition to celebrating newly-discovered talent. The new production arm is led by UMG Nashville chair/CEO Cindy Mabe, as well as senior vp, digital business and creative development Dawn Gates. The new division will focus on developing content for documentaries, original scripted and unscripted television, feature films and short-form content. In addition, it will be heavily involved in securing production partners, music supervision and distribution.
“Country music has always been the home of the richest storytellers in music. Storytellers like Merle Haggard, whose song ‘Sing Me Back Home’ helped frame the intent and name behind our production company,” Mabe said in a statement. “Songs and stories can transport people and literally sing them back home no matter where they are in the world. Creating a new canvas for our storytellers to paint was a natural next step for our artists to talk to their fans in a new way. With several productions underway, this new endeavor fits prominently into what we are sustaining and building as a music company: roots, legacy, music discovery, and storytelling. We are finding faith, family, and heartland are at the core of our business and we are making sure we are building generational content for different mediums across a variety of platforms and shepherding it into the homes of our audience.”
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Sing Me Back Home Productions has teamed with ITV America’s Thinkfactory Media to develop and produce a docuseries that will follow the personal and professional lives of Grammy-nominated husband-and-wife duo, The War and Treaty‘s Michael Trotter Jr. and Tanya Trotter. The docuseries will be helmed by Thinkfactory’s CEO and veteran producer Adam Reed. The docuseries is already in the works with a broadcast partner and is among the first of several projects in development through Sing Me Back Home’s broader collaboration with Thinkfactory Media.
Additionally, the Betsy Schechter-produced documentary Gloria Gaynor: I Will Survive, will soon be released in partnership with Storyville Entertainment. The documentary premiered at the Tribeca Film Festival, and won the best feature documentary award at La Femme Women’s International Film Festival in Los Angeles. Most recently, Gloria Gaynor: I Will Survive won The Palm Springs International Film Festival audience award “best of fest.”
“Country music and its community of artists, past and present, offer such a vast and rich world to explore for content,” Reed said in a statement. “As Thinkfactory doubles down on work rooted in the Heartland, we’re incredibly bullish on the projects we’re developing with Sing Me Back Home, and we admire what Cindy and her group are building at a time when the genre and its hitmakers are flying higher than ever.”
“We are thrilled to have the expertise of Cindy, Dawn, and the Sing Me Back Home team to partner on producing ‘Gloria Gaynor: I Will Survive,’” Schechter said in a statement. “Just like her iconic song ‘I Will Survive,’ Gloria’s life is equally inspirational and this film has the power to impact audiences around the world for years to come.”
The new production division is the latest expansive move for UMG Nashville, following the recent launches of Silver Wings Records, and the comedy division Capitol Comedy Nashville.
Atlantic Music Group chairman/CEO Julie Greenwald announced layoffs of about two dozen people Monday (Feb. 26), primarily in the radio and video departments, in an internal memo to staff obtained by Billboard. As part of the announcement, Greenwald also said the company would be “bringing on new and additional skill sets in social media, content creation, community building and audience insights,” with the goal of “dial[ing] up our fan focus and help[ing] artists tell their stories in ways that resonate.”
Greenwald, who has been at Atlantic Records for 20 years, was named chairman/CEO of the newly-formed Atlantic Music Group in October of 2022, with oversight of Atlantic Records and its subsidiaries (Atco, Big Beat, Canvasback) as well as 300 Elektra Entertainment, which includes 300, Elektra, Fueled By Ramen, Roadrunner, Low Country Sound, DTA and Public Consumption. In that role, she is still co-chair/COO of Atlantic Records alongside co-chair/CEO Craig Kallman.
“Our artists today need more support from us than ever — in a world that’s getting noisier, faster, and more fiercely competitive,” Greenwald wrote. “We have to do more, but at the same time, our approach has to be authentic, bold, and bespoke to individual artists. We can’t impact culture if we don’t have the right mix of people who live that culture. That’s why we need dedicated teams of multi-talented, ambidextrous people — our ‘SWAT teams’ — who encircle the artist and do everything possible to help achieve their full potential.”
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The news comes three weeks after Warner Music Group CEO Robert Kyncl announced that WMG would be cutting its staff by 10%, or some 600 employees, amid a broader reallocation of resources that will involve selling its owned and operated media properties, such as HipHopDX and Uproxx. That move came the same day that Warner announced it had had its best quarter ever, with revenue up 17% to $1.75 billion, and that the moves would be about freeing up some $200 million to reinvest in the company.
However, Greenwald made a point to write that this move was not about merging or shuttering labels, but about repositioning the label group for the future. “We’ve all heard the same industry rumors about labels being reduced or merged into one another. I can tell you: this is not that,” she wrote. “We’re deeply committed to the unique cultures across our labels, led by 300, Elektra and Atlantic. Craig, Kevin [Liles, CEO of 300 Elektra], and I passionately believe these identities are crucial to attracting great artists and building great careers. We want artists to be choiceful about the culture and team they belong with, just as we’re thoughtful about deciding which artists we’re signing.”
Read Greenwald’s full note to staff below.
Dear Atlantic, Elektra and 300,
Two weeks ago, during the all hands call you heard Robert and Max talk about the evolution of our music company. They tasked us last year to examine our staffing and ask the tough question, how do we achieve maximum impact for our artists in this ever changing landscape?
As hard as it is to say goodbye to our friends and valued colleagues, it is critical that we keep retooling the company and add new resources and skill sets to our business units. I have now been at Atlantic for 20 years. The company has grown and evolved tremendously, because we have not been afraid to implement change and add new marketers, new A & R, new data and research and even new labels. Always evolving but with a consistent North Star : sign the best musicians and commit to the hardest work of building real careers through true artist development.
Our artists today need more support from us than ever – in a world that’s getting noisier, faster, and more fiercely competitive. We have to do more, but at the same time, our approach has to be authentic, bold, and bespoke to individual artists. We can’t impact culture if we don’t have the right mix of people who live that culture. That’s why we need dedicated teams of multi-talented, ambidextrous people – our ‘SWAT teams’ – who encircle the artist and do everything possible to help achieve their full potential.
The changes we’re making today are primarily happening in our radio and video teams. We’ll preserve our industry-leading position in those areas, while bringing on new and additional skill sets in social media, content creation, community building and audience insights. This will allow us to dial up our fan focus and help artists tell their stories in ways that resonate.
As part of this shift, I’m sorry to say about two dozen people will be leaving us from across our three labels and their imprints. We’ve already informed everyone who is impacted. I know we will all support each other, even more than usual, and I deeply appreciate your empathy and understanding.
We’ve all heard the same industry rumors about labels being reduced or merged into one another. I can tell you: this is not that. We’re deeply committed to the unique cultures across our labels, led by 300, Elektra and Atlantic. Craig, Kevin, and I passionately believe these identities are crucial to attracting great artists and building great careers. We want artists to be choiceful about the culture and team they belong with, just as we’re thoughtful about deciding which artists we’re signing.
Right now, there’s incredible music coming through from artists across the entire group. We have some of our biggest superstars returning, and some extraordinary new artists we’re building in a very real way. We’re taking the right step into the future, and I hope you’ll continue to share your ideas with senior management so we can continually improve.
Thank you.
Julie
BMG announced on Monday (Feb. 26) an exclusive recordings agreement with the estate of the iconic Spanish flamenco guitarist Paco de Lucía. In a partnership with the Paco de Lucía Foundation, BMG is set to release Pepito y Paquito, an album featuring 21 previously unreleased tracks by Paco de Lucía and his brother Pepe, in May 2024.
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“We are delighted that these very special recordings, completely unknown until now, will finally be released with BMG on such a special date as the 10th anniversary of Paco de Lucía’s departure,” representatives of Paco de Lucía’s Estate said in a statement. “These recordings are an extraordinary document that reflects the first steps in the career of Paco de Lucía and Pepe de Lucía, and they are already part of the history of flamenco.”
According to a press release issued by BMG, the recordings — which date back to 1959 and 1960 — give flamenco fans an insight into the “early musical endeavors” of Pepe and Paco at the ages of 13 and 11, respectively. AI was used to help restore the recordings from a vintage Grundig TK46 tape recorder.
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“I never thought these recordings would ever see the light of day, but thanks to the tireless work of the team that has been part of this process, the tapes have finally been restored and are ready to be released,” added Pepe. “When I listened to the tapes again, more than 60 years after their original recording, I couldn’t believe that those children were my brother Paco and me. It is a wonderful recording that brings back fond memories of the happiest time of our lives and serves as a fitting finale to our careers.”
“It has been a privilege to work hand in hand with Pepe de Lucía and the Paco de Lucía Foundation for more than a year to document, restore, and finally publish these tapes that showcase the genius of these two brothers who changed the history of music in Spain and around the world,” said Javier Doria, BMG director A&R Spain.
The deal comes on the heels of a Paco de Lucía Legacy Festival, which took place in New York from Feb. 20-24 commemorating the 10th anniversary of Paco de Lucía’s death. A historical figure in flamenco and a key figure in the globalization of the music, Paco de Lucía was honored by more than 30 flamenco artists at the four-day event.
L to R: Francisco Sánchez Gómez (Paco de Lucía) and José Sánchez Gómez (Pepe de Lucía) with their mother Lucía Gomes Gonçalves
© Family Photo Archive
The Universal Music Group purchased a majority stake in Nigerian record company Mavin Global, the iconic label founded by Don Jazzy that is home to Rema, Ayra Starr, Crayon and Ladipoe, among others. The deal is expected to be completed by the third quarter, pending regulatory approval, the companies announced.
Terms of the deal were not disclosed. However, Billboard reported in October that Mavin was being shopped by Shot Tower Capital at a valuation north of $125 million, with a sale price in the region of $150 million to $200 million; it was unclear if publishing was involved in the deal. As part of the investment arrangement, Don Jazzy — who founded Mavin in 2012, and also serves as CEO — and COO Tega Oghenejobo will continue to run the label.
“Our criteria for identifying partners is straightforward: great artists, great entrepreneurs, great people,” UMG chairman/CEO Lucian Grainge said in a statement announcing the deal. “With Don Jazzy, Tega, the Mavin Global team and their artist roster, we’ve found ideal partners with whom to grow together. Mavin’s brilliant artists have been catalysts in the transformation of Afrobeats into a global phenomenon and we’re thrilled to welcome them into the Universal Music Group family.”
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Mavin had already established a relationship with UMG, with Rema’s “Calm Down” — the biggest Afrobeats song of all time, which reached No. 3 on the Hot 100 last year — initially distributed by Virgin Music, with its remix featuring Selena Gomez licensed to Interscope; Starr, meanwhile, has a deal in place with Republic. “Calm Down” has racked up more than 1 billion on-demand streams in the U.S. alone since its release, with its global count many multiples higher.
The investment is designed to spur Mavin’s growth around the world, according to a press release, with focuses on both Mavin’s Artist Academy, which nurtures its roster in various musical and performance skills, and its executive leadership team, which is aimed at growing the next generation of African leaders in the music business.
“With our proven history of collaborations within the UMG family, we have a strong belief that they are the ideal partner for the next phase of our growth, given the diversity and potential of our business,” Oghenejobo said in a statement. “UMG is home to some of the world’s foremost music entrepreneurs and artists, making them a perfect match for our aspirations. By collaborating with UMG, we are dedicated to cultivating a vibrant creative environment that propels African music to new heights on the global stage.”
Winning the Mavin auction catapults UMG deeper into the Nigerian Afrobeats scene — the umbrella genre that encompasses Afropop, Afro fusion, high life and others that continues to explode around the globe. In the past several years, artists such as Wizkid, Davido and Burna Boy have blossomed into global superstars, while the likes of Rema, Starr, Tems, Tyla, Ckay, Asake and Fireboy DML have led a wave of young, emerging talent coming from the African continent. The movement has gained momentum to the point that the Recording Academy introduced a new Grammy Awards category for best African music performance, which was awarded to Tyla’s “Water” at the honors earlier this month.
Additional reporting by Ed Christman.
Nora Fatehi, a Canadian-born Bollywood star with Moroccan roots, has signed a recording contract with Warner Music as the actress, dancer and singer looks to add “global music star” to her professional accomplishments. Based in India, Fatehi will work closely with WMG teams in the U.S. and globally on music-related releases and projects, but remain signed with Indian label T-Series for her Bollywood work.
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Fatehi made her name across India performing what are known as item songs — special musical numbers inserted into a movie — in numerous Hindi, Telugu, Tamil and Malayalam films. Her appearance in the 2018 film Satyameva Jayate, in which she performed the Bollywood classic “Dilbar,” led to her recording and sining an Arabic version of the song in collaboration with Moroccan group Fnaire that has racked up hundreds of millions of views on YouTube.
Her other musical endeavors have included collaborations with Tanzanian artist Rayvanny for the Afropop track “Pepeta,” as well as British singer Zack Knight for the pop song “Dirty Little Secret.” She has also released several solo tracks, including “I’m Bossy” earlier this year. According to WMG, Fatehi’s Bollywood songs have garnered over five billion views on YouTube, such as “Saki Saki,” Kusu Kusu” and “Garmi.”
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In late 2022, Fatehi shared the stage with global stars Davido, Ozuna, Manal, Balqees, Rahma and GIMS at the closing ceremony of the FIFA World Cup 2022 in Qatar, where she grabbed the spotlight for the English version of Cup anthem “Light the Sky.”
Indian music fans spend over 24 hours each week listening to music, with top genres including Bollywood and Indian Pop, among others, according to IFPI’s latest Engaging With Music report. Fatehi’s background and versatility, along with being fluent in multiple languages, means she won’t be limited to the vast market of her home base. The Middle East and North Africa, for example, was the fastest growing region for music in 2022, jumping 24%, reported IFPI, while Asia grew by 15.4%.
“Nora is an extraordinary talent, electric performer, and cross-cultural superstar whose music reflects the rich diversity of her background,” said WMG CEO Robert Kyncl. “Her passion and ambition are infectious and we’re excited to help her reach new audiences, places, and heights across the globe.”
Alfonso Perez-Soto, president of emerging markets for WMG, added: “I’ve been blown away by Nora’s star power. She has the creative ability and sheer stamina you need to become one of the world’s biggest artists. We can’t wait to put the global resources of Warner Music at her disposal as she starts the next chapter of her music career.”
In the meantime, Fatehi’s film career continues in its upward trajectory with the release on Friday (Feb. 23) of Crakk – Jeethegaa Toh Jiyegaa, a Hindi-language film billed as the “first-ever extreme sports action film in India.”
“I’ve enjoyed great success in my career so far, but this deal is a significant step forward in my musical journey, a new chapter in my international career,” she said. “My ambition is to be a global music star and performer, connecting with fans all over the world. I want to use my diverse cultural background to create music and dance that brings everyone together! I’m excited to work with Warner Music to leverage their experience and expertise to help me fulfill this goal.”
Livestream shopping platform NTWRK is acquiring streetwear, music and sports-centric media company Complex Networks. The deal will create a new entity that the two companies claim will be “a new destination for ‘superfan’ culture” and bring an e-commerce marketplace into the former media brand’s ecosystem.
The news was announced Wednesday (Feb. 21), with investment from Main Street Advisors, Universal Music Group, Goldman Sachs and Interscope Records founder Jimmy Iovine. UMG will also come on board as a strategic partner and current Interscope chairman/CEO John Janick will join the company’s board.
NTWRK is acquiring Complex from Buzzfeed, which purchased the streetwear-focused media company in 2021 for $300 million. Terms of the deal were not disclosed, though The New York Times reported last October that a deal worth $140 million was close; subsequent reporting in December put the price at slightly more than $100 million. NTWRK co-founder/CEO Aaron Levant — who initially created NTWRK alongside Jamie Iovine and Gaston Dominguez-Letelier, and co-founded ComplexCon with Complex founder Marc Ecko in 2016 — will become CEO of the new company.
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“Complex has been a beacon of culture and innovation for over two decades,” Levant said in a statement. “My journey with Complex began as an admirer of their original magazine in 2002 and it has now come full circle as I step into the leadership role. Alongside this impressive team, we will create the definitive global content, commerce and experiential platform of convergence culture.”
NTWRK has previously worked with several UMG artists, including Billie Eilish, Post Malone and BLACKPINK, the latter of whom worked with Takashi Murakami for Interscope’s 30th anniversary vinyl collection. UMG’s involvement, however, is not an exclusive one, and the new platform will remain open to artists of any label, major or independent.
“This partnership will give our artists access to a dynamic network to deepen connections with superfans through unique collaborations and cultural moments,” said Janick in a statement. “We share a collective vision on how D2C, experiential, brand partnerships and content are mutually reinforcing cornerstones of the fan experience. We will continue to sign and elevate new generations of great talent and we believe that we can best serve these artists through a holistic set of capabilities.”
The focus on the superfan is one that is a priority for UMG this year, with UMG chairman/CEO Lucian Grainge writing in his New Year’s memo to staff that “the next focus of our strategy will be to grow the pie for all artists, by strengthening the artist-fan relationship through superfan experiences and products,” which he called part of “the blueprint for the labels of the future.”
The new company also comes amid a lot of changes in both the music and media spaces. UMG announced a huge label restructuring earlier this year, with Janick taking on oversight of Capitol Music Group and other labels, as the music major approaches looming layoffs. At the same time, Buzzfeed is believed to be selling Complex for much less than half of what it acquired it for just three years ago, amid a wider run of layoffs and closings of media outlets across the industry. Warner Music Group, which last year laid off 600 people, also announced that it would be selling some of its owned media properties, such as HipHopDX and Uproxx.
“Aaron Levant, along with Jamie Iovine and Gaston Dominguez-Letelier, are building an incredible platform and this acquisition will exponentially accelerate its growth,” Jimmy Iovine said in a statement. “Combining the power and reach of Complex with the NTWRK engine serving creators across music, fashion and art will be transformative for the next generation of consumer technology.”
