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Looking to grow its share of the fast-developing Middle East music market, Warner Music Group has signed Saudi singer Dalia Mubarak, one of the country’s biggest female stars and a leading voice among a new generation of progressive Arabic artists.
Terms of the deal were not disclosed. The signing — Warner Music’s first Saudi artist signing since it began investing in the Middle East region about four years ago — caps a breakthrough year for 31-year-old Mubarak, who earlier this month won Best Saudi Arabian Artist at the Distinctive International Arab Festivals Awards (DIAFA) in Dubai and was featured this summer on the cover of Vogue Arabia.
Since releasing her debut single, “Turn The Table,” in 2014, the singer’s career has flourished in line with the gradual opening up of Saudi society following the appointment of Saudi Crown Prince Mohammed bin Salman in 2017, making him the de facto ruler of the oil-rich Gulf state. His reforms have helped modernize the country of 35 million people, where, up until a few years ago, concerts were banned and ultraconservative norms prevailed, including the segregation of unmarried men and women in public spaces.
Historically rife with piracy, the Middle East and North Africa (MENA) market nearly doubled between 2019 and 2021, and it was the fastest-growing region in the world last year, with recorded music revenues up 35% to $89.5 million, according to IFPI. More than 95% of MENA revenues came from streaming, helping draw the interest of major record companies, which are increasingly looking to emerging markets to find new talent and, in turn, extend their labels’ global reach. MENA’s potential is vast, with a total population of about 430 million people, of which 55% are under the age of 30, according to the Organisation for Economic Co-operation and Development (OECD).
The Mubarak signing follows a series of investments and acquisitions Warner Music has made recently in the Gulf region. Last year, the company acquired a minority stake — reportedly worth around $200 million — in Rotana Music, the Arab world’s leading independent record label, which is part of Rotana Group, owned by Saudi billionaire Prince Al Waleed Bin Talal.
In March, Warner completed the acquisition of Qanawat Music, a leading distributor across the Middle East and North Africa. WMG put roots down in the region in 2018 when it created Warner Music Middle East and opened an office in Beirut, Lebanon.
Mubarak, who mostly sings in Arabic and has previously released music on Rotana, says she fulfilled a childhood dream by signing with Warner Music because of the opportunities and exposure it provides not just in her home country, but internationally as well.
“Everyone is now looking to what’s going on in Saudi Arabia, how it’s changed, and I want to be part of that change and show the world that we have good artists,” Mubarak tells Billboard. “I want to be the bridge [between Saudi Arabia] and the international world.”
Mubarak’s music mixes contemporary R&B and Western-style pop with traditional Khaleeji music, incorporating Arabic instruments like duff drums and mirwas. She says the music, which promotes positive messages of female empowerment, reflects the progressive changes that have occurred in her home country.
The singer has built a large following in Saudi Arabia and the wider Arab diaspora with total YouTube views surpassing 350 million, according to Billboard’s calculations (subscribers to her official YouTube channel stand at just over 600,000). Her most popular song is 2020’s “Elly Yemshy 3ady,” which was the artist’s first single sung in the Egyptian dialect; it has generated more than 66 million views on YouTube.
The singer has just under 700,000 followers on Anghami, the most popular music streaming service in the Middle East with around 20 million active users, according to company filings. (Warner was unable to provide comprehensive streaming numbers for Mubarak.)
Mubarak has also performed at many of Saudi Arabia’s biggest music festivals, including 2019’s Jeddah World Fest, where she joined DJ Steve Aoki onstage at the event’s close. (The festival also featured performances from Janet Jackson, 50 Cent and Chris Brown, and saw Nicki Minaj make international headlines when she pulled out of a scheduled appearance in protest against the Kingdom’s treatment of women.)
Dalia Mubarak with Max Lousada and Simon Robson, Warner Music UK, Nov 2022.
Warner Music
Max Lousada, CEO of Warner Recorded Music, calls Mubarak a “trailblazer for change,” saying in a press release that she symbolizes “a new generation of female artists from the country who are rewriting the rules and winning fans across the region and beyond.”
The singer, who has an American husband, divides her time between the Saudi capital city Riyadh and Dubai. “Other singers in the past were not as lucky to have this freedom and these opportunities that I’m now grateful for,” she says.
Alfonso Perez-Soto, Warner Recorded Music’s president of emerging markets, tells Billboard that the label intends for Mubarak to be the first of many artists Warner signs from the MENA region as part of its overall long-term strategy. Previously, WMG’s focus has been on establishing itself in the region, “building the access to catalogs and distribution and gaining resources” so it is fully equipped to provide “the best tools” to help break and build lasting careers for Arabic artists like Mubarak.
Perez-Soto says the best of Warner Music’s worldwide resources are being made available to help Mubarak establish an international career. That includes teaming the artist up with English producers and songwriters for a short run of demo recording sessions in London earlier this month.
The plan, says Perez-Soto, is that they will “create product and songs that will be appealing to the Western market,” as well as cater to Mubarak’s existing local fanbase by drawing on the Middle East’s rich cultural heritage. Going forward, releases will vary between English-language songs and Arabic-focused repertoire.
Perez-Soto says he hopes giving Saudi artists like Mubarak a global platform will help bring about further change in a country that, while rapidly developing, still draws widespread condemnation for human rights abuses, including a ban on political protest and discrimination against women and marginalized groups.
“The situation is nowhere near close to perfect, but the country is making a very sincere effort [to change] in the right direction and we have to be part of enabling that effort and help that to happen,” says the Miami-based executive.
“There is no hate in music,” says Mubarak. “Music is something beautiful and it creates peace and hopefully we’re going to be part of that.” She wants to inspire other females in the Arab States, including her two young daughters, to follow in her footsteps. “I hope to be their voice,” she says, “to motivate them and make their dreams happen.”
The Warner Music Group has launched a new label, called OUT OF ORDER, that will highlight artists from emerging markets including Africa, India, the Middle East, Southeastern Europe and the Eastern Mediterranean, the company announced Thursday (Nov. 10). The new label will partner with Parlophone in the U.K. and Atlantic in the U.S., as well as the local WMG affiliates in respective markets, according to a press release; its tagline is “a diverse collection of sounds in no particular order.”
OUT OF ORDER plans to put a spotlight on several different types of creators in each region with a focus on “dance-leaning records,” with artwork created by local designers and a weekly radio show with hour-long DJ sets inspired by tracks from each of the albums, with the mixes hosted on Audiomack, SoundCloud and YouTube.
“I’m incredibly passionate about this initiative,” said Selina Chowdhury, Warner Music’s head of emerging markets, who will run OUT OF ORDER, in a statement. “There’s so much unique and inspired international music that often doesn’t have a global platform. We hope that OUT OF ORDER will take music fans on an adventure and introduce them to sounds and artists they might not otherwise have had the chance to hear.”
Selina Chowdhury
Courtesy Photo
The label’s first release, out Thursday, is called OOO: AFRO, which Warner says “features a mix of Afrobeats, Amapiano and House tracks from the likes of Da Capo, Makhadzi, Moelogo, Oscar Mbo, P-Priime and Rouge,” with artwork by Ghanaian designer Nyahan Tachie-Menson, who said in a statement, “There’s so much going on with the music emerging from individuals on the continent; something we can all relate to is the vibrancy of the music, and that’s what I captured here.”
“Africa is a continent rich with various sounds, which have for the longest time influenced popular culture, but is only now really being spotlighted for its contributions,” Warner Music Africa’s creative lead Garth Brown said in a statement about the release. “This album showcases some of the music from across the continent. It’s an opportunity to give the world a peek of what Africa sounds like.”
OUT OF ORDER’s next release, set for early next year, will be in partnership with Warner Music India.
Moon Projects, a new label and creative agency, has expanded into the songwriter side of the business by launching a co-publishing partnership with Warner Chappell Music. Called Moon Projects Publishing, it is the second joint venture started with a major music corporation for the Mary Rahmani-founded start-up, founded in 2021. Earlier this year, their Republic Records-partnered label operation saw major success with signee Em Beihold, the then-unknown pop act whose song “Numb Little Bug” hit No. 1 on both Billboard’s Adult Pop Airplay and Emerging Artist charts.
Rahmani, who is known as TikTok’s first-ever music hire, hopes to build out her newly founded Moon Projects as an artist services company adept at meeting the challenges of the modern day music industry. This includes offering label or publishing services through their jvs as well as creative agency assistance, providing curation, strategy and digital consulting for short-form video content to artists hoping to tap into the creator economy.
To date, Moon Projects Publishing has not signed any songwriters, and artists who signed to the Moon Projects label will not necessarily sign for publishing as well. Em Beihold, for example, recently announced her signing to Sony Music Publishing, but for the eventual members of its roster, the new publishing arm will combine “white-glove service and personal attention” common with boutique publishers with the “resources of one of the biggest music publishers in the world,” says the company in a statement.
“Mary and Moon Projects have a unique and innovative approach in this space. We’re excited to partner with them as they move into the music publishing side of the business. We look forward to seeing what we can accomplish together for songwriters and artists at all stages of their careers.” – Warner Chappell Music SVP of A&R and Venture Partners Rich Christina
“Warner Chappell Music is a true industry leader in music publishing and rights management. I am honored to be working with them in this joint venture,” added Rahmani. “Publishing was built to serve artists at every stage of their career by providing innovative and equitable catalog management strategies. I’m so excited to usher in this new era of Moon Projects, and to open up even more opportunities to work with the artists we care about and believe in. With the support of Warner Chappell Music, Moon Projects will continue to establish itself as a place where artists can grow and thrive.”
A new New York City law requiring employers to disclose salary ranges in job postings has officially gone into effect this week, with music companies hiring in the city mandated to comply. On the first day of the law, a picture of at least one of the major music companies’ salary ranges has come into focus.
The day the law went into effect, several companies were criticized for overly-broad salary ranges that effectively subverted the point of the regulation, which was designed to give prospective employees insight into what they could be expected to earn at different companies in the city and address salary discrepancies between men and women and for people of color. The Wall Street Journal, for instance, posted reporting and producing jobs with ranges between $40,000 to $160,000; tech jobs at Amazon were anywhere from $88,400 to $185,000; while Citigroup initially posted some job openings as between $0 and $2 million, before revising them to a range of $59,340 to $149,320.
Among the three major labels, only Warner Music Group (WMG) seems to have complied with the law as of yet. The company has 11 listed job openings on its website across its three locations in New York City, though 10 of them relate to its Spring 2023 WMG Emerging Talent Associate Program, a part-time paid internship program that lists a range from $15 to $30 an hour for between 20 and 25 hours per week. Its final opening, for a digital marketing and content creation manager, is listed at between $58,500 and $70,000 annually.
Sony, meanwhile, has more than 40 openings in its New York locations across all its operations, though not all positions appear to have salary ranges listed; most appear to ask the applicants for a desired salary target, as part of a standard-issue form through LinkedIn. (The law allows companies 30 days to comply after a complaint is registered before facing penalties. A rep for Sony tells Billboard the company will be complying.) It does list starting salaries for its fellowship program, a 24-month position with a starting salary of $70,000 per year.
Universal Music Group has some 16 openings across various divisions in New York, many at its merchandising division Bravado. Though each posting promises a “competitive compensation package including salary, benefits and generous 401k savings plan with company matching,” none lists a salary range. (A rep for UMG did not respond to a request for comment.)
In the independent sector, several New York-based companies have also listed ranges. Concord, for example, has three non-internship positions available in New York: a publishing paralegal ($70K-$80K); a publishing sync manager ($55K-$65K); and a director of business and legal affairs for publishing ($100K-$125K). BMG has two open New York-based positions: an investments/M&A manager ($80K-$90K) and a senior marketing manager ($70K-$80K). Roc Nation has two music-related New York-based openings: one for a senior director of event sponsorships ($135K-$180K) and one for a senior director of music partnerships ($135K-$170K). A senior coordinator position overseeing royalties and income tracking at Kobalt pays between $45,600 and $57,000 in New York City.
Businesses with three or fewer employees and temp agencies are not subject to the new requirement.
Former Warner Music Group executive and the Orchard co-founder Scott Cohen said on Tuesday (Nov. 1) he is taking a new job as chief executive officer of a fintech platform aimed at selling fractional shares in song catalogs.
Cohen, who stepped down from his role as chief innovation officer at WMG in September, said the aim of the new venture is to “fractionalize ownership of music royalties.”
Fractional shares are a familiar concept in finance, and brokerages like Robinhood and Fidelity Investments sell them as a way to buy a slice of a share for less than the price of the whole stock. The market for buying and investing in music publishing rights has traditionally been open to only the world’s largest music companies and, more recently, money managers.
Introducing fractional shares could change that by making it possible for more smaller investors to participate alongside the deep-pocketed private equity funds and major labels.
In an email to Billboard, Cohen said has already secured rights from major artists and catalogs, and his team is now working to build the platform’s technology.
“We have a very aggressive timeline,” said Cohen, declining to provide a specific date when the venture would launch to outside investors.
Prior to joining WMG in 2019, Cohen founded the Orchard with Richard Gottehrer in 1997 and built it into the largest independent distributor on iTunes when the download platform launched in 2003. Cohen and Gottehrer sold the Orchard to Dimensional Associates, the private equity arm of JDS Capital Management, the same year, and subsequently expanded into video, music licensing, marketing & analytics, royalty collections, sports media, neighboring rights and more.
In 2015, Sony Music Entertainment bought out Dimensional Associates for $200 million, and in 2017 merged it with RED into a single global distribution entity operating under the Orchard brand.
While Cohen’s new venture has not yet settled on a name, he described its aspirations and potential as “transformational” for the music industry.
“I am only interested in doing things at scale,” Cohen wrote.
Universal Music Group, Hipgnosis Songs Fund and other music stocks got a much-needed boost on Tuesday (Oct. 25) following news of Apple Music’s price hike, as investors bet it would trigger a wave of streaming subscription cost increases.
Universal Music Group’s stock closed 11.6% higher, Hipgnosis Songs Fund Ltd ended up 7.8% and Korean music companies SM Entertainment and HYBE finished the trading day 4.8% and 4.4% higher, respectfully, on Tuesday. On Monday, Apple announced that it was raising the standard U.S. and U.K. individual plan price to $10.99 from $9.99.
This 10% price hike — Apple’s first — comes amid high inflation and a darkening economic environment in many global markets. If Apple can raise prices at a time like this, that is a sign the music industry can charge more without turning off consumers, Wall Street analysts said.
“We see this as a further signal of the stickiness of music streaming subscriptions even in a weaker macro environment and believe the major markets will be able to absorb higher prices without leading to meaningfully higher churn,” Lisa Yang, Goldman Sachs’s head of European media & internet technology equity research, wrote in a note to investors on Tuesday.
“We believe that other major DSPs will likely follow suit with similar price increases in the near future, implying further potential upside to our music industry forecasts.”
Competitors Spotify and Amazon Music have already raised prices in some markets. Amazon Music raised the price of its unlimited individual plan for Prime members to $8.99 from $7.99 earlier this year.
Spotify, which will report earnings later Tuesday, raised the cost of its individual plans in the Nordics in 2021, although its standard plan for U.S. subscribers remains at $9.99.
“Despite positive management commentary around churn (with regards to recent price increases on certain plans/regions) as well as management’s views on pricing power over the long term, Spotify has highlighted the broader macro environment as a key consideration in terms of implementing price increases in the near term,” Yang wrote.
Apple’s price increase could also have positive impacts on the majors because companies like UMG and Warner Music Group typically get 65% of music-related revenues from streaming companies with a “high incremental margin,” Goldman estimates.
Music stocks have suffered in 2022 as the major U.S. market indices have fallen around 20% so far this year.
UMG’s share price of 21.10 EUR ($21.01 US) is down nearly 14% year to date, Hipngosis Songs Fund Ltd traded at 91.06 penny sterling ($1.03 US) and is down 28% so far this year. Meanwhile, Warner Music Group’s stock traded at $27.16 US, off almost 37% year to date.