Universal parent Vivendi enters the festival world

French mass media giant Vivendi, parent company of See Tickets and Universal Music Group (UMG), is providing financial and marketing support to 10 French music festivals. As part of the partnership, television channel D17 (operated by Vivendi subsidiary Canal+) is broadcasting footage from Brive Festival, Déferlantes, Eurockéennes, Garorock, Hamac Festival, Hellfest, Mainsquare, Musilac, Marciac Jazz Festival and Vieilles Charrues, and the festivals are promoted via UMG, ticketing company Digitick, TV stations D17, D8 and i-Télé and video-sharing website Dailymotion. The company  will receive an allocation of festival tickets to be handed out to subscribers to loyalty programmes includingCanal’s Premier Rang (‘Front Row’). in May and June Vivendi bought two businesses from bankrupt dance music promoter SFX Entertainment: Flavorus, via Vivendi Ticketing (See Tickets and Digitick), and Fame House, through UMG.

http://www.iq-mag.net/2016/07/vivendi-backs-french-festivals/#.V5h7XLgrKM9

Universal partner up for festival in India

Having already launched its own Latin music themed festival in Los Angeles, Universal Music Group has taken a 50 per cent stake in the Enchanted Valley Carnival, reportedly the country’s  first camping music festival. UMG will joint venture the festival with Twisted Entertainment, founder of EVC. Enchanted Valley Carnival and Enchanted Village. 

The festival will be held on December 18th to 20th at the Aamby Valley City Festival Arena (in Pune district) with Tiësto and Fatboy Slim are both already confirmed.

UMG launch Latin music festival

Universal Music Group is launching a Latin music-themed festival in Los Angeles called " L Festival" or Feria Cultural Latinoamericana. The new event will take place on October 24-25 this year at the OC Fair & Event Center. Enrique Iglesias (pictured right), Juan Gabriel, La Arrolladora Banda El Limon and Julion Alvarez are the first stars announced to headline the four main stages at the event. Two day access passes will be priced from $99, while VIP upgrade opportunities will be on sale ‘to bring fans even closer to their passion for music, food and art’.

Created by Universal in partnership with promoter CMN Events, L Festival is sponsored by Bud Light, Pepsi and Verizon.

Universal post digital growth in Q1 as streaming booms

Universal had posted an 8% rise in digital music income in the first quarter of this year (Q1 2015) to €459m. UMG said recorded music revenues grew 2.4%  and the growth in subscription and streaming revenues more than offset a decline in both digital download sales and physical sales. Music publishing revenues (at UMPG) grew 3% (13% in actual terms) to €184m, also driven by ‘increasing subscription and streaming revenues’. UMG’s overall revenues – across recorded music, publishing, merchandise and more – were up 11.6% year-on-year in Q1 to €1.1bn.

Interestingly and given the news that Apple has allegedly been pushing the major labels to clamp down on 'freemium' streaming services - Warner Music Group’s CEO Stephen Cooper broke ranks with Sony and UMG to encourage the recorded music industry to exercise caution when it comes to dismissing the value of ad-funded music services saying "First of all, there are a lot of models out there, and all of those models — ad-based, subscription-based, or with both — are better than piracy" addng “You know to be crystal clear, piracy is zero revenue, it’s the theft of intellectual property, and it’s not good for anyone. So all of these models are better than piracy, that’s number one" and “Number two, the freemium models, if they encourage the adoption of subscribers… form ad-based [paths] to subscription-based models over time. We at Warner believe that’s good news". Cooper went on to say he would like to see the move from ad based streaming to subscriptions models to be 'turbo charged'. 

UMG posts 12% growth in revenues

Universal Music Group has announced positive results for 2013 with  revenues up 12.8% to 4.9 billion euros (£4 billion) year-on-year. The continued decline in physical music sales was offset by a growth in digital revenues, which accounted for over 50% of sales income for the first time. Meanwhile in the digital domain, subscription and streaming revenue also grew by more than 75% in 2013. The company said that its biggest sellers of last year were Eminem, Katy Perry, Imagine Dragons, Lady Gaga, Drake, Robin Thicke and French-language artist Stromae

Good news for UMG and BMG

Having completed its acquisition of the EMI record company last autumn, sales at Universal Music shot up 16.3% year-on-year in the first half of 2013, from 1.92 billion euros to 2.24 billion euros, though the costs of integrating the former British major meant that profits were down. Earnings before interest, taxes, depreciation and amortization were 143 million euros, down from 156 million euros in the same period a year earlier. UMG said that continued sales of Rihanna's last album, the debut from US alt-rock band Imagine Dragons, the 'Les Misérables' movie soundtrack, and the new acoustic version of Justin Bieber's 'Believe' played a key role in generating mega-sales during the first half of the year. Meanwhile major releases from both Eminem and Lady Gaga should assure a successful second half of the year.

German media group Bertelsmann has reported operating profits for the first half of 2013 up 5.2%, an uplift very much aided by the firm taking full control of the BMG music company in April. As previously reported, Bertelsmann bought business partner KKR out of BMG earlier this year.

Vivendi reject UMG offer

Vivendi has reportedly rejected a $8.5 million offer for the Universal Music Group from Japanese telecoms group SoftBank. It's thought the telecoms giant was attracted to Universal because of the increasing importance of music services in the mobile market. 

Label news

Warner Music saw revenues rise by 8% year on year in the quarter to 31st January 2013 to $675 million, while operating income was up 159% to $57 million and net income moved into profit, to $2 million, from a loss in the same quarter a year earlier. In other Warner's news, Edgar Bronfman Jr, the former CEO of the mini-major, who led the consortium that bought the music firm from Time Warner in 2004, has left the company's board.

Revenues at Universal owner Vivendi were stable in the first quarter of its current financial year, though net income slipped by 18.5%, from 825 million euros to 672 million. The entertainment and communication group's mobile business that caused most of the slide. Universal Music, in contrast, saw its revenues rise 13.5% year on year in the first quarter, to 1,091 million euros. Better than expected income from the mega-major's newly acquired EMI units contributed to that upturn. Digital products generated 54% of Universal's recorded music revenue in the period, compared to 46% in the first quarter of 2012.

And the CEO of hedge fund Third Point, Daniel Lobe, has called on Sony Corp to sell off a slice of its entertainment business in a bid to boost profits, according to the New York Times. The US-based Sony entertainment group includes the Sony Music record company and the firm's half of the Sony/ATV music publishing business. Third Point own 6.5% of the shares in Sony Corp. 

BMG buys Sanctuary

BMG has snapped up the Sanctuary catalogue, which includes recordings from Iron Maiden, Black Sabbath, Motorhead, The Kinks, Donovan, Bert Jansch and Status Quo, and from classic former labels like Trojan, Sugarhill and Pye. The label one of the forced sales by Universal as part of its take over of EMI, although it was a UMG rather than an EMI asset. Warners had already announced it had acquired EMI's Parlophone label.  There are now two assets still to be sold as part of the conditions imposted by EU competition regulators: EMI's stake in the Now! franchise and the Co-operative indie distribution and marketing business: Sony is thought to be bidding for the former, while various independent labels and distributors are linked to bidding for the latter.

Max Hole is Universal's worldwide number one

Max Hole, currently COO of Universal Music Group International, has been promoted to the role of Chairman and CEO of Universal's worldwide division, which incorporates all of the major's non-US operations.

And in other record label news, it seems BMG and Sony will be making a joint bid for EMI's Parlophone label.  The two companies are one of around twelve parties still thought to be bidding for the label Universal Music is being forced to sell by European regulators as part of the deal struck to secure approval of the Universal/EMI label merger last year. BMG has already successfully bid for the Mute catalogue in the same process.

Brazil blocks EMI mergers

Both Sony/ATV and Universal have been told by the Brazilian competition regulator that they could not merge the respective EMI publishing and recorded music  businesses with their existing companies in Brazil. This is a more difficult position that both majors faced in Europe where divestments had been agreed. US regulators did not set any hurdles for the two mergers, seemingly relying on the EC measures with the recorded music sector. In one of his first interviews since acquiring the EMI record companies, Universal chief Lucian Grainge said he planned to launch EMI's American label brand Capitol in the UK, the mega-major having been forced to sell off EMI's UK-based Parlophone brand by European regulators.

Universal get EC green light for EMI deal

UMG have been given outline approval by EC regulators to buy up EMI's recorded music division - but the major will have to divest a number of key catalogues to meet competition requirements. Among the EMI assets to be sold are the Parlophone, Chrysalis and Mute labels and catalogues (minus The Beatles and Robbie Williams) and the EMI Classics division. A number of commentators, in particular independent labels, say that the move will give UMG unassailable market dominance alongside Sony, who since purchasing EMI's music publishing division, have a 30% plus market share in the business of songs. It is expected UMG will have a 38% plus share of the global market in recorded music and many fear that the major will use market dominance to either prioritise its own services such as Vevo, or insist on large upfront payments or equity stakes in new digital start ups which want to use music, as it did with Spotify (UMG own 4% of Spotify, EMI 1.9% and Sony 5.8%, and Sony and UMG jointly own Vevo with the Abu Dhabi investment company). The deal is still subject to US  regulatory approval, which is expected next week. The Commission said that "the very significant commitments proposed by Universal will ensure that competition in the music industry is preserved and that European consumers continue to enjoy all its benefits". Pan-European indie labels trade body IMPALA did not agree, and said it would consider its options once the EC's full decision was published.

UMG pay up towards EMI - as regulators reach conclusions

Universal Music has paid just under a billion of the £1.2 billion that it committed to pay Citigroup for EMI's recorded music division, according to parent company Vivendi. Decisions by EU and US competition regulators are nearing completion with at least some divestment of catalogues such as Parlophone and Chrysalis mooted for the EU if the sale is to go through.

UMG second quarter financials out

In Universal news, the major reported earnings of 88 million euros for the most recent quarter, from revenues of 961 million euros. Revenues were down on the same quarter in 2011, but profits were up. The major is currently awaiting both European and US competition regulators' approval of its planned acquisition of EMI's recorded music division.

IMPALA co-president gives conditional approval to UMG-EMI deal

In a surprise move, one of the key players in Europe's independent label sector, Naïve Records' Patrick Zelnik, has come out in support of Universal's bid to buy the EMI record company, subject to certain provisions. Zelnik cautions against outright war within the record industry, between Warner and the indies on the one side, and the two big acquisitive players, Sony and Universal, on the other. Zelnik fears private equity groups asset stripping the music industry more than UMG, and says that Universal should commit "first, to transparent, non-discriminatory, easy licensing to new platforms. This should encompass Universal, EMI and independents, representing the majority of the market - the rest would soon follow". Second, Universal should make targeted, surgical divestitures to independents instead of to hedge funds, private equity or pension funds. As co-president of IMPALA, its an interesting opinion!

Universal-EMI tie up green lit in Japan

Japanese regulators have approved the £1.2 billion takeover of EMI's recorded music division by Universal - the deal is still awaiting regulatory approval in Europe and the USA. No conditions were attached.

Congress get to hear about UMG about EMI

Universal's proposed takeover of EMI's recorded music division has had a congressional hearing next week with a public airing of the arguments for and against the acquisition in the USA - with music industry veterans Lucian Grainge, Roger Faxon and Irving Azoff speaking up for the UMG-EMI tie up and, Edgar Bronfman Jr and Martin Mills against along with Gigi Sohn from American lobby group Public Knowledge. The congressional session took place on Thursday, 21st June and Grainge insisted that everyone would be a winner if and when the Universal and EMI labels unite, saying, according to the Financial Times: "Our coming together will benefit consumers, artists and all those committed to a diverse and healthy music business". But Mills countered that the only people who would actually benefit would be Universal's owners and management, who were, he claimed "monopolists" seeking market power. Edgar Bronfman Jr said that a combined Universal EMI would be "one innovation-stifling dominant player".

UMG-EMI merger heads to Congress

Universal's proposed takeover of EMI's recorded music division will get a congressional hearing next week with a public airing of the arguments for and against the acquisition in the USA - with five music industry veterans booked to speak - Lucian Grainge, Roger Faxon and Irving Azoff expected to speak for the UMG-EMI tie up and , Edgar Bronfman Jr and Martin Mills agains,t along with  Gigi Sohn from American lobby group Public Knowledge. The congressional session will now take place next Thursday, 21 Jun.

The European Commission's have agreed to provide UMG with a statement of key objections to Universal's bid to buy the EMI record company.  The key concerns have been identified via the Commission's in depth investigation into the acquisition proposals. Although the statement of objections is a routine part of the EC's merger investigation process, it confirms that European regulators want some key issues to be addressed before the deal can be considered for approval. EU Competition Enforcer Joaquín Almunia said on Friday: "A company with a large and popular catalogue can have significant market power over digital platforms, which would have a keen interest to strike a deal with it. Ultimately, we will need to make sure that the company that would emerge from the deal would not be in a position to shape the future landscape in the digital music market to the detriment of users and artists". Welcoming the concerns expressed so far by the Commission, Helen Smith of IMPALA, the pan-European trade body for the indie label sector and one of the most vocal opponents to the deal, said"We welcome this news and expect to see a strong statement of objections confirming the Commission's earlier findings that Universal is a danger in the physical and digital market because it cannot be adequately constrained by competitors, customers or piracy". The Commission hopes to make a ruling on the Universal/EMI deal by the 6th Sep. The Federal Trade Commission in the US is concurrently reviewing the merger, while the transaction is also due to be debated in US Congress by the Senate Judiciary Committee's antitrust subcommittee on the 21st June.

US Talent Unions back UMG on EMI takeover

In a surprise move, two of the US’s biggest talent unions have come out in support of Universal’s takeover of EMI’s recorded music division on the ground that UMG would, unlike previous owners Terra Firma, actually invest in music and musicians. In a letter to the U.S. Federal Trade Commission Chairman Jon Leibowitz The American Federation of Musicians said that UMG had shown “compliance with and respect for its collective bargaining agreements has been positive when compared to its peer companies” and that “Sustaining the EMI legacy” under Universal’s ownership “would appear to benefit AMF recording musicians.” The recently merged The Screen Actors Guild and the American Federation of Television and Radio Artists said Universal has shown commitment to the music industry, investing in new artists and innovative musical genres in a separate letter saying “For EMI to be left to further drift into oblivion, or for EMI to be acquired and sold off in pieces by capital investment speculators with no appreciation for, or commitment to, artists who fuel the recording industry, would ill serve the industry,” SAG-AFTRA said.