Vivendi distributed 60% of its UMG shares and retaining 10%. Were not anti-major label here at RouteNote, but we think there should be another option for artists to release music that doesnt involve signing away their rights to a huge multinational. Starting in 2011 UMG's Interscope Geffen A&M Records began signing contestants from American Idol. Universal Music Group | Company Overview & News Even $100 Billion? In 2021, Universal Music Group generated 8.5 billion euros in revenue, up from 7.43 billion in the previous year. 7 Universal Music Group Intern Salaries Show Me What Youve Got GIFs. Committed to artistry, innovation and entrepreneurship, UMG fosters the development of services, platforms and business models in order to broaden artistic and commercial opportunities for our artists and create new experiences for fans. In May 1998, Seagram purchased PolyGram[25] and merged it with Universal Music Group in early 1999. October 8, 2021 5:08 AM ET. Universal Music Group's CEO Score Ranks 2nd. What Is Universal Music Group Worth? - AudiobyRay indicates % change year-over-year adjusted for constant currency. The company paid $12million to the state in settlement. However, it also spent 2.5bn on catalogue acquisitions and artist advances during the year, including re-signing stars such as. Note: % YoY indicates % change year-over-year; % const. . Capitol Music Group is headquartered at the Capitol Records Building in Hollywood. Thats more than the estimated combined 2019 streams, sales and downloads of all the songwriters in the UK. With Grainge's appointment as CEO at UMG, Max Hole was promoted to COO of UMGI, effective July 1, 2010. David Massey and Bartels, who worked respectively at Island and Def Jam Records, were named to the new record labels independently. Physical revenue grew 18.6% year-over-year, or 21.2% in constant currency, driven by strong vinyl demand as well as growth in direct-to-consumer sales. [44][45], Universal Music Group completed their acquisition of EMI on September 28, 2012. Universal Music Group - Net Worth, Bio/Wiki 2018 - Richest Celebrities The rise of the DIY artist sector, which by sheer volume is now nibbling into the overall streaming market share of the three major record companies. [84][85], In December 2017, Universal Music Group acquired Stiff and ZTT labels, along with Perfect Songs Publishing, from Trevor Horn's SPZ Group;[86] BMG Rights Management, through Union Square Music subsidiary, retained its back catalogues. Kent Ray Taylor Job - Dos.ibdrk.de [114], In October 2022, Mercedes-Benz launched a new in-car audio collaboration with Apple Music and Universal Music Group. Net debt, defined as total debt minus cash and equivalents, at the end of 2021 was 2,010 million compared to 1,868 million at the end of 2020. Top sellers in the prior year included The Weeknd, Billie Eilish, Post Malone, Lil Baby, Pop Smoke and BTS. announced they would investigate the effects the fire may have had on the band's archival materials, while Hole, Steely Dan, Rosanne Cash and Geoff Downes made statements on their possible losses from the fire. Going forward, we see the industry continuing to grow and with our unique experience, our deep understanding of the business and the vast artist relationships and global creative networks we expect to further strengthen our position as the industry leader as we continue to break new artists and build on our world-class catalogue., We are generating robust Free cash flow even as we continue to opportunistically and selectively invest in artists and catalogues that will be additive to the long-term health of our business, said Boyd Muir, EVP, CFO and President of Operations for UMG. While UMG's net income was down to 886 million euros ($1.05 billion), or 0.49 euros (58 cents) per diluted . 319 Million. Popular; COVID-19 Related; We own and operate a broad array of businesses engaged in recorded music, music publishing, merchandising, and audiovisual content in more than 60 countries. [73], In May 2016, UMG acquired Famehouse, a digital marketing agency. Universal's revenue jumped from 6bn in 2018 to 7.4bn in 2020. (C) 2006 Roc-A-Fella Records, LLC. Net cash provided by operating activities before income tax paid improved to 1,395 million compared to 1,133 million in 2020, an increase of 23.1%, mainly as a result of the growth in EBITDA and lower royalty advance payments, net of recoupments in 2021 compared to 2020. Additionally, as part of the changes to the labels, Motown Records transferred to Los Angeles to become part of the Capitol Music Group and previous Vice President Ethiopia Habtemariam was promoted to Label President for Motown Records. Universal Music Group Competitors | Comparably Lucian Grainge Salary. Please only use it for a guidance and Universal Music Group's actual income may vary a lot from the dollar amount shown above. The same day, UMG announced launch of its new affiliates in Morocco and Israel. The Five Most Powerful People in the Music Industry Don - Rolling Stone Moreover, he is earning from his career as a chairman and chief executive officer of Universal Music Group. [129], In January 2022, the company's shareholding is:[3], In 2000, music companies including UMG entered into consent agreements with the Federal Trade Commission,[130] with no admission of liability,[131] whereby they agreed to discontinue the use of Minimum Advertised Price programs under which subsidized cooperative advertising was provided to retailers that agreed to adhere to minimum advertised pricing. Nearly all of these mastersin some cases, the complete discographies of entire record labelswere wiped out in the fire. He served in this position until 2010. [132], In May 2006, an investigation led by then New York Attorney General, Eliot Spitzer, concluded with a determination that Universal Music Group bribed radio stations to play songs from Ashlee Simpson, Brian McKnight, Big Tymers, Nick Lachey, Lindsay Lohan and other performers under Universal labels. Subscription and streaming revenue grew 18.7% year-over-year, or 16.1% in constant currency, with strong growth in both subscription and ad-supported streaming revenues. [We] have suggested a blue sky valuation of 100 billion, wrote Kerven of UMG. And we expanded our partner portfolio into emerging growth areas such as health and fitness, Web3 and social video. Who Owns Universal Music Group? Here's a Quick Overview Popular. Cost of revenues, consisting of artist and production costs, increased by 17.6% to 4,608 million in 2021, reflecting higher revenues and revenue mix. UMG management uses this indicator for reporting, management and planning purposes. After the IPO, the ownership of Universal Music Group has dramatically. The Beatles catalogue was transferred to UMG's newly formed Calderstone Productions, while Williams' catalogue was transferred to Island Records. Inside Universal, Sony, and Warner's Arms Race For Your Attention . Millions of dollars. Keep reading to discover what it's like to work with the best in the business. A big part of that is, obviously, the omission of live concerts, plus the relative quiet of the major record companies. [112], In February 2022, Universal Music Group announced a partnership with Curio, an NFT platform, to create NFT collections for its record labels and artists. DMX. [133], In 2007, with the help of the Electronic Frontier Foundation, Stephanie Lenz sued UMG's publishing company for allegedly improperly requesting that, pursuant to the Digital Millennium Copyright Act, YouTube remove a 29-second home video in which Lenz's child danced to a recording of Prince's song "Let's Go Crazy". All of that said, Universals sheer heavyweight power in the music industry with a 30%-plus global market share of total recorded music revenues plus its almighty owned catalog will be the primary factor fuelling investor confidence in its spin-out, and its ultimate valuation. Universal Music Group's Universal Music Polska is located in Warsaw. [50][51] Later in February, Sony Music Entertainment acquired UMG's European share in Now That's What I Call Music for approximately $60million. Related Stories Were an independent distributor working with unsigned artists to put their music online for free. . [109], In July 2020, UMG signed a new multi-year licensing agreement with Spotify to provide value for artists and immense experiences for music fans. Recorded Music revenues for the fourth quarter of 2021 were 1,975 million, up 15.2% compared to the fourth quarter of 2020, or 12.3% in constant currency. UMG's corporate headquarters are located in Hilversum, Netherlands and its operational headquarters are located in Santa Monica, California. derivative financial instruments, net (assets and liabilities) where the underlying instruments are Financial Net Debt items, as well as cash deposits securing borrowings included in the Consolidated Statement of Financial Position under financial assets; the value of borrowings at amortized cost as reported in the Consolidated Statement of Financial Position. Universal Music Group net worth and salary income estimation The Company will host a conference call to discuss these results on Thursday, March 3, 2021 at6:15PM CEST. In September 2021, IPO, Euronext Amsterdam announces an introduction price of 18,50[clarification needed] and Vivendi set an initial valuation for UMG at 33 billion ($38.3 billion). enter the sultry sleepless world of "Lavender Haze." watch now. Lucian Grainge will become CEO, replacing Doug Morris who will remain the company's chairman. In addition, veteran songwriters can apply for the termination of publishing copyrights in the US 56 years after their songs were released (see: Paul McCartneys battle with Sony Music Publishing a few years back). We are Universal Music Group, the world's leading music company. Monte Lipman - Founder & Chi.. - Universal Music Group | ZoomInfo With a gross percentage margin of 25%, to deliver $5.6 billion, Spotify would need to generate annual revenue of $22.4 billion, which in turn would pay the record industry $11.6 billion, based on the net revenue share of 52% that Spotify gives the major record companies., He continued: Now, if we assume that Spotify has a 35%-ish market share, the total music streaming markets annual payouts to the record industry would have to reach $33.1 billion for these projections to make sense. Most on Wall Street had pegged the value of. [35] Morris became the next chairman of Sony Music Entertainment on July 1, 2011. estimated UMG might be worth somewhere between $29 billion and $42 billion. EBITDA for the quarter declined 4.2% year-over-year, or 6.8% in constant currency, to 438 million, as a one-time non-cash compensation charge more than offset the benefit of revenue growth. Arnaud de Puyfontaine, CEO, Vivendi The MBW Review offers our take on some of the music biz's biggest recent goings-on. Should Marilyn Manson and R. Kelly Be Banned? Disclamer: Universal Music Publishing Group net worth displayed here are calculated based on a combination social factors. But with annual costs of around $2 billion, Spotify is currently operating at close to break-even. For Universal Records 19881989, see, 2004: Consolidating into a Vivendi subsidiary, 20072012: UMG acquisitions and EMI purchase, 20122017: EMI integration and divisions reorganization, 2018present: Continued growth and public trading, Last edited on 14 February 2023, at 21:54, following the country's invasion of the Ukraine, United States District Court for the Northern District of California, "Universal Music Group N.V. Reports Financial Results for the Fourth Quarter and Full Year Ended December 31, 2021", "Universal Music Group Prospectus 14 September 2021", "Tencent in Talks for Stake in Record Label of Ariana Grande, Queen", "Sir Lucian Grainge: After Tencent deal 'our strategic vision remains the same', "Tencent Agrees to Buy 10 Percent of Universal Music Group", "Tencent's Universal Music Group acquisition is now official", "Vivendi: the Tencent-led consortium has completed the exercise of its call option and now owns 20% of UMG's share capital - Vivendi", "Universal hits massive valuation of $54bn as it lists on Amsterdam Stock Exchange", "Universal Music Group shares soar in market debut", "The World's Most Innovative Companies 2019: Music Honorees", "How $33 billion Universal Music Group is redefining the modern music label", "The Origin & Many Uses of Shellac by R.J. Wakeman", "Pioneers' Dream Becomes Reality With Decca", "HITS Daily Double: Rumor Mill - A BRIEF HISTORY OF MCA RECORDS", "It's a Wrap: MCA Sold: Matsushita to Pay About $6.6 Billion", "Seagram heads for Hollywood; Seagram will buy 80% of big studio from Matsushita", "Matsushita, Freed of MCA, Reports a Profit", "MCA changes name to Universal Studios Inc", "Hundreds of Jobs Lost in Universal Mega-Merger", "Universal Music Group Out into the Wild: The Story Behind its IPO BSIC | Bocconi Students Investment Club", "Universal buys troubled Sanctuary for 44.5m", "Maestros of the Concert Merchandise Movement", "Bloomingdale's Teams With Universal Music Group and Bravado for Major Retail Promotion", "A Rolling Stones pop-up shop is coming to Selfridges", "How Spotify Built a $20 Billion Business by Changing How People Listen to Music", "Vivendi Appoints Lucian Grainge Chairman & CEO of Universal Music Group", "Citigroup Sells EMI in Parts for $4.1 Billion to Vivendi, Sony", "EU opens investigation into Universal, EMI deal", "Universal's 1.2bn EMI takeover approved with conditions", "Universal's Capitol takes shape: Barnett in, Beatles on roster", "Universal Closes on EMI Deal, Becoming, by Far, Biggest of Remaining Big Three", "FMQB: Radio Industry News, Music Industry Updates, Nielsen Ratings, Music News and more! What is Universal Music Group worth? It moved in 2002 from Hamburg to the district Friedrichshain at the river Spree. Last 30 days: $ 365, February 2021: $ 196, January Toggle navigation. Vivendi's music unit UMG worth more than $40 billion, CEO says Physical revenue showed another quarter of strong growth, increasing by 11.1% year-over-year, or 10.5% in constant currency, mainly as a result of increased vinyl demand driven by releases from Taylor Swift, ABBA and The Beatles, as well as growth in direct-to-consumer sales. [4][5] The biggest music company in the world,[6] it is one of the "Big Three" record labels, along with Sony Music and Warner Music Group. Our success in all these efforts showed in our financial performance revenues increased by 17% on a constant currency basis, Adjusted EBITDA margin expanded and Free cash flow improved significantly. "The vault housed tape masters for Decca, the pop, jazz and classical powerhouse; it housed master tapes for the storied blues label Chess; it housed masters for Impulse!, the groundbreaking jazz label. Republic Records UMG considers Adjusted EBITDA and Adjusted EBITDA margin, non-IFRS measures, to be relevant measures to assess performance of its operating activities excluding items that may be incidental to normal business activity. [87] Sony and Warner signed similar contracts with Facebook the following year. Subscribe. The music business is kind of bored. [103], In August 2019, Tencent and Vivendi started negotiation to sell 10% Vivendi's stake of Universal Music to Tencent. If we assume for sake of argument that Spotify is able to grow without increasing its costs, it would have to generate $5.6 billion in gross margin to deliver those $3.6 billion in profits. Subscribe [9] Ivors Academy and others suggest people in the UK should write to their MP asking for them to support a Private Members Bill from Kevin Brennan MP, which asks for more protections for musicians against unfair payments. [55][56] Edel AG acquired the MPS catalogue from Universal in January 2014. That's 340% greater than the $6.7 billion in revenue Universal reported for 2013. Tencent emerged as UMG's biggest corporate shareholder with 20% of shares. Universal Music 2021 Earnings: Nearly $10 Billion in Revenue - Billboard The stars boost music investments and global expansion. Cost of revenues as a percentage of revenues increased to 54.2% from 52.7% driven by higher product costs from a greater proportion of merchandising and physical sales, including higher vinyl sales, when compared to 2020. [158], On February 5, 2019, John Waite and Joe Ely filed a class-action lawsuit against UMG claiming the company is violating their right to terminate grants of copyright after 35 years in accordance with copyright law of the United States by ignoring Notices of Termination. Please only use it for a guidance and Universal Music Publishing Group's actual income may vary a lot from the dollar amount shown above. In addition, it should be noted that other companies may have definitions and calculations for these non-IFRS measures that differ from those used by UMG, thereby affecting comparability. Universal Music Group N.V.[3] (often abbreviated as UMG and referred to as just Universal Music) is a DutchAmerican multinational music corporation under Dutch law. Analysts suggest that the world's biggest music rights-holder could be worth three times its current public valuation. UMG chairman & CEO Lucian Grainge is based at the company's Santa Monica offices. The music icon & global superstar drops new single "Kant Nobody" feat. A 29bn valuation would actually make Universal Music Group - led by CEO & Chairman Sir Lucian Grainge (pictured) - worth more than its owner, Vivendi. In the interest of balance, there is a more bearish case to be made on Universals valuation today. Melody Island was an animated series based on tropical island music with live craft segments. With this new audio standard, UMG allows its artists to base their song approval process on how the final mix sounds in a MercedesBenz and introduced the Approved in a MercedesBenz label as a standard. [82], In October 2017, UMG announced the launch of its Accelerator Engagement Network, an initiative aimed to help develop music-based startups around the world. UMG-signed artists claimed no less than eight of the top 10. Adjusted EBITDA margin is Adjusted EBITDA divided by revenue. Universal Music Group boss Lucian Grainge is set to earn more in 2021 than all songwriters did combined from streams & sales of their music in the UK in 2019. [40] In March 2012, the European Union opened an investigation into the acquisition[41] The EU asked rivals and consumer groups whether the deal would result in higher prices and shut out competitors. [70] On February 11, 2017, PolyGram Entertainment was relaunched as a film and television unit of Universal Music Group under David Blackman. [10] Pershing Square Holdings later acquired ten percent of UMG prior to its IPO on the Euronext Amsterdam stock exchange. Subscribe. No wonder Som Livre, Brazils biggest domestic label, is believed to be close to selling up for around $300 million. ", "Universal Music Is Battling to Nullify the 35-Year Copyright Termination Right", https://en.wikipedia.org/w/index.php?title=Universal_Music_Group&oldid=1139387478, This page was last edited on 14 February 2023, at 21:54. Accordingly, UMG cautions readers against placing undue reliance on such forward-looking statements. Campaigners would like to see at least some of that windfall to trickle down to the songwriters and artists whose music keeps the industry running. 2. [149][150], On December 9, 2011, Megaupload published a music video titled: "The Mega Song", showing artists including Kanye West, Snoop Dogg, Alicia Keys and will.i.am endorsing the company. Furthermore, on December 19, 2017, UMG signed a multi-year licensing agreement with YouTube.[88]. Recorded Music EBITDA margin improved by 0.9pp to 23.7% from 22.8% in 2020 due to operating leverage. [47] In compliance the conditions of the European Commission after purchase of EMI, Universal Music Group sold the Mute catalogue to the German-based BMG Rights Management on December 22, 2012. Pay ranges for employees at Universal Music Group by degree. Whereas his annual yearly salary and his monthly salary are not publicly known. Lucian Grainge Net Worth, Bio, Age. Wife, Salary, Son, Samantha, UMG Universal Music Group operates a secondary office in Woodland Hills that includes finance, royalty, and operations functions.[122]. [26], In May 2004, Universal Music Group was cast under separate management from Universal Studios, when French media conglomerate Vivendi sold 80% of the latter to General Electric, who subsequently merged it with NBC to form NBC Universal. Taylor, Darren Rodney (PDF, 154KB) Death in custody, natural causes. In a research note earlier this month, Morgan Stanley analysts Omar Sheikh and Patrick Wellington suggested that UMG could now carry a fair value worth of around $49 billion. [105], In February 2020, Vivendi announced it was planning to go public in an IPO within three years. 99%. UMG is the largest record company worldwide and parent company . cash and cash equivalents, as reported in the Consolidated Statement of Financial Position, including (i) cash in banks and deposits, whether or not compensated, corresponding to cash, and (ii) money market funds; cash management financial assets, included in the Consolidated Statement of Financial Position under financial assets, relating to financial investments, which do not satisfy the criteria for classification as cash equivalents set forth in IAS7; and. The company previously said that UMG . No wonder the worlds biggest music rights companies saw bottom-line profits soar in 2020; their spending presumably decreased. Actual results may differ materially from such forward-looking statements as a result of a number of risks and uncertainties, many of which are related to factors that are outside UMGs control, including, but not limited to, UMGs inability to compete successfully and to identify, attract, sign and retain successful recording artists and songwriters, failure of streaming and subscription adoption or revenue to grow or to grow less rapidly than anticipated, UMGs reliance on digital service providers, UMGs inability to execute its business strategy, the global nature of UMGs operations, UMGs inability to protect its intellectual property and against piracy, UMGs inability to attract and retain key personnel, changes in laws and regulations and the other risks that will be described in the annual report. CEO Lucian Grainge Stock Symbol AMS: UMG The 2021 annual report has not yet been published and an auditors opinion has not yet been issued. [93] In August 2018, UMG announced a strategic expansion in Africa, opening an office in Abidjan to oversee French-speaking Africa, and also unveiling a Universal Music Nigera office in Lagos to focus on signing local artists and taking them global. Universal Music Group's largest corporate shareholder, Tencent, is headquartered in Shenzhen, China.