Welcome to Music Business Worldwide’s weekly round-up – where we make sure you caught the five biggest stories to hit our headlines over the past seven days. MBW’s round-up is supported by Centtrip, which helps over 500 of the world’s best-selling artists maximize their income and reduce their touring costs.
This week, we learned that Warner Music Group (WMG) has signed a new deal with Spotify that overrides the “bundling” payment structure Spotify enacted last year, following a similar deal last month between Spotify and Universal Music Group.
Speaking of WMG, the company confirmed this week that it has acquired a majority stake in Tempo Music, which MBW understands valued Tempo at north of $450 million.
Warner also reported its calendar Q4 (fiscal Q1) results this week, posting company-wide revenues of USD $1.67 billion. WMG CEO Robert Kyncl also confirmed on the company’s earnings call that Warner has a new deal with Amazon Music.
Also this week, the National Music Publishers Association (NMPA) announced it had launched an “extensive” takedown action against Spotify, alleging it has detected 2,500 violations of copyright on the platform’s podcasts. The news came as Spotify reported its first-ever full year of profit, driving its stock price to all-time highs.
Meanwhile, MBW obtained Sir Lucian Grainge‘s new-year memo to Universal Music Group staff, in which UMG’s Chairman and CEO laid out his vision for 2025, including the industry’s shift to what UMG has termed ‘Streaming 2.0‘.
Elsewhere at UMG this week, the company promoted Julie Adam to President and CEO of Universal Music Canada (UMC), while Jeffrey Remedios, who has led UMC as Chairman and CEO for a decade, was appointed President, Strategic Development, for UMG’s REPUBLIC Collective.
We also got word this week that Cindy Mabe has exited her role as CEO of UMG Nashville.Mike Harris has been appointed as UMGN’s new CEO, and Grammy-winning producer Dave Cobb named Chief Creative Officer.
Here’s what happened this week…
1) WARNER MUSIC GROUP AND SPOTIFY INK NEW DEAL – OVERRIDING CONTROVERSIAL CRB ‘BUNDLING’ PAYMENT STRUCTURE IN THE US
Warner Music Group and Spotify have signed a new multi-year licensing deal.
And before you ask… yes, sources have confirmed that it supersedes the ‘bundling’ payment structure that last year saw Spotify dramatically cut the rate of mechanical royalties being paid to publishers and songwriters in the US.
Warner’s new agreement with SPOT follows an announcement from Universal Music Group last month, which also included a new royalty agreement that overrode the prior mechanical royalties situation in the States.
On the company’s latest earnings call, CEO Robert Kyncl confirmed the company also has a new deal with Amazon…
Yalcin Sonat / Shutterstock
2) NMPA HITS SPOTIFY WITH ‘EXTENSIVE’ TAKEDOWN ACTION OVER ALLEGED UNLICENSED SONGS IN PODCASTS
The National Music Publishers Association (NMPA) has launched what it says is an “extensive” takedown action against Spotify.
The NMPA accuses the music streaming service of ignoring widespread violations of music copyrights on the podcasts it hosts.
The industry group for music publishers in the US said on Tuesday (February 4) that its first wave of takedown requests involves more than 2,500 “detected” infringements.
News of the NMPA‘s action came as Spotify reported its 2024 earnings, showing the company swinging to its first-ever full-year profit, news that sent the company’s stock to record highs…
3) CONFIRMED: WARNER BUYS MAJORITY STAKE IN TEMPO (JUST AS MBW TOLD YOU IT WOULD)
Warner Music Group confirmed on Thursday (February 6) that it has acquired a controlling stake in Tempo Music Investments aka Tempo Music.
Tempo’s previous owner, Providence Equity Partners, holds on to a minority stake in Tempo as part of the deal. MBW first reported on the Warner acquisition last month.
The final deal is understood to have valued Tempo at north of $450 million.
Tempo’s catalog of rights and income streams includes interests in songs recorded by the likes of Twenty One Pilots’ Tyler Joseph, multi-platinum-selling recording artist Wiz Khalifa, and country duo Florida Georgia Line, among others…
Photos by Katherine Holland
4) JULIE ADAM PROMOTED TO CEO OF UNIVERSAL MUSIC CANADA; JEFFREY REMEDIOS APPOINTED PRESIDENT, STRATEGIC DEVELOPMENT, FOR REPUBLIC COLLECTIVE
More big news about Universal Music Group‘s leadership teams in North America:
UMG has promoted Julie Adam to President and CEO of Universal Music Canada (UMC).
Jeffrey Remedios, who has led Universal Music Canada as Chairman and CEO for a decade, has been appointed to the role of President, Strategic Development, for UMG’s REPUBLIC Collective (which includes Island Records, Def Jam Recordings, Mercury Records, and Republic Records).
Both appointments are effective immediately… (MBW)
Photo: Austin Hargrave
5) READ SIR LUCIAN GRAINGE’S 2025 MEMO TO UNIVERSAL MUSIC GROUP STAFF: ‘STREAMING 2.0 WILL REPRESENT A NEW AGE OF INNOVATION, CONSUMER SEGMENTATION, GEOGRAPHIC EXPANSION, GREATER CONSUMER VALUE AND ARPU GROWTH.’
Universal Music Group Chairman and CEO Sir Lucian Grainge has issued his annual New Year note to UMG staff.
The wide-ranging letter, sent on Monday (February 3) and obtained by MBW, covers UMG’s successes in 2024 and at last week’s Grammys, the company’s advocacy for the responsible use of AI, UMG’s various charitable, environmental, health, and education efforts; and the progress made on the company’s artist-centric strategy.
Grainge also confirms the arrival of what he calls “the Streaming 2.0 era” – a phrase introduced at UMG’s Capital Markets Day in September…
MBW’s Weekly Round-Up is supported by Centtrip, which helps over 500 of the world’s best-selling artists maximise their income and reduce their touring costs.Music Business Worldwide
