Welcome to Music Business Worldwide’s weekly round-up – the place we be sure that you caught the 5 largest tales to hit our headlines over the previous seven days. MBW’s round-up is supported by Centtrip, which helps over 500 of the world’s best-selling artists maximise their earnings and cut back their touring prices.
One of many largest tales within the international music enterprise proper now’s enjoying out in South Korea.
On Wednesday (February 22), HYBE, the corporate behind acts like BTS and New Denims, accomplished a deal to accumulate a 14.8% stake in its rival SM Leisure, which is behind stars like NCT, EXO and Aespa.
HYBE beforehand revealed that it intends to up its 14.8% stake in SM to round 40% of the corporate, by buying one other 25.2% of SM Leisure’s shares for a complete of 1.14 trillion South Korea Gained (USD $900 million) from minority shareholders.
This week noticed SM Leisure CFO Jang Cheol Hyuk post a video on YouTube through which he slammed HYBE’s takeover bid, whereas HYBE CEO Jiwon Park revealed an open letter noting that the deal marks “an period of change for each firms…”
Elsewhere this week, concert events big Live Nation revealed its newest monetary results, for This autumn, and the total yr ended December 31, 2022.
Dwell Nation generated revenues of $16.7 billion in 2022 and its concert events enterprise was its major income driver, producing $13.49 billion in 2022.
The corporate additionally says that it “invested $9.6 billion in placing on artists’ reveals in 2022″ and claims to be “the most important contributor to artist earnings”.
In the meantime, MBW crunched the numbers to disclose how Sony Music Group accelerated its standing because the world’s second-biggest music rights firm in 2022.
Plus, Taylor Swift was topped as IFPI‘s 2022 International Recording Artist Of The Yr, whereas Thomas H. Lee, a billionaire financier primarily based in New York who served on Warner Music Group‘s board for almost twenty years, was discovered lifeless yesterday in Manhattan aged 78.
There’s plenty of change and consolidation taking place within the Okay-Pop business proper now.
On Wednesday (February 22), HYBE, the corporate behind acts like BTS and New Denims, accomplished a deal to accumulate a 14.8% stake in its rival SM Leisure, which is behind stars like NCT, EXO and Aespa.
The deal, price 422.8 billion South Korean received (approx. $335 million), implies that HYBE is formally the most important single shareholder in SM Leisure, having acquired these shares from the corporate’s founder Lee Soo Man.
In an open letter confirming the completion of the deal to purchase the 14.8% stake, HYBE CEO Jiwon Park outlined what he believes are the similarities between HYBE and SM and famous that, “that is an period of change for each firms….”
Sony Music loved a spectacular night time on the Grammys in Los Angeles earlier this month, as an array of its blockbuster recording artists, together with Beyoncé, Harry Types, and Adele claimed the night time’s most glittering prizes.
In the identical week, over in Tokyo, Sony Group Company – the dad or mum firm to Sony’s music operation – introduced its newest quarterly outcomes, in Yen, for the three months ending December 31, 2022 (Sony’s fiscal Q3, however calendar This autumn).
By crunching the numbers on these quarterly outcomes, MBW has been in a position to set up their worth in US {dollars}, in addition to understanding how Sony’s music division carried out throughout the course of calendar 2022.
[Long story short on our methodology: We use a Yen-USD conversion rate for Sony’s global revenues in each calendar quarter at the prevailing rate for each period as provided by Sony Corp. It’s price noting that, throughout 2022, because of the power of the greenback vs. many worldwide currencies, this technique is definitely more likely to skew towards Sony, i.e. down-weighting its true international income efficiency – which is pretty outstanding when you think about the numbers under.]
[Last bit of arithmetical housekeeping before we get into the good stuff: Corporately speaking, Sony Group’s global music operation includes recorded music, plus music publishing, plus ‘Visual Media & Platform’ (VM&P). VM&P primarily covers mobile games and animation projects, and has been omitted from all revenue calculations in this analysis.]
So. Based on MBW’s calculations primarily based on Sony Corp’s bulletins, Sony’s mixed recorded music and music publishing operations generated USD $8.38 billion within the calendar yr of 2022.
That USD $8.38 billion determine was up by $889 million on calendar 2021, or +11.9% year-on-year…
Inside Dwell Nation’s newest earnings announcement, the corporate claims that its “funding in artists” i.e. what it spent on placing on artists’ reveals in 2022, was up 45% versus 2019 to over $9.6 Billion in 2022.
Dwell Nation claims that this funding makes the corporate “the most important Monetary Supporter of Musicians.”
Based on international recorded music physique IFPI, $5.8 billion is the sum of cash “invested in A&R and advertising by document labels yearly…”
Thomas H. Lee, a billionaire financier primarily based in New York who served on Warner Music Group’s board for almost twenty years, was discovered lifeless yesterday in Manhattan aged 78.
Lee stepped down as a board director at WMG in 2021 following 17 years of service, however subsequently continued his affiliation with the music firm as Director Emeritus.
The entrepreneur and personal fairness pioneer had an extended and important historical past with Warner Music: In 2004, he led the investor group that bought the corporate from Time Warner…”
