This week, Universal Music Group confirmed a EUR €1 billion bond sale.
Separately, UMG agreed to sell royalty platform Curve Royalty Systems to Merlin and Matt Spetzler‘s Jamen Capital.
Meanwhile, Warner Music Group acquired Sureel AI, the attribution startup that traces how AI models use artists’ work.
Elsewhere, the National Music Publishers’ Association struck landmark AI licensing deals with Udio and KLAY.
Also this week, Spotify was reported to be seeking the rights to show live video of music festivals.
Here are some of the biggest headlines from the past few days…
1. UNIVERSAL MUSIC CONFIRMS €1 BILLION BOND SALE
Universal Music Group has successfully priced a EUR €1 billion (USD $1.15 billion) bond offering. The bond sale is split into two tranches of €500 million each, UMG said on Tuesday (June 9). UMG, which trades on the Euronext Amsterdam, confirmed on Tuesday (June 9) that it “has successfully priced €500m of 3.375% senior unsecured notes due 2030 and €500m of 4.125% senior unsecured notes due 2036″… (MBW)
2. WARNER MUSIC GROUP ACQUIRES SUREEL AI, THE ATTRIBUTION STARTUP THAT TRACES HOW AI MODELS USE ARTISTS’ WORK
Warner Music Group has agreed to acquire Sureel AI. Sureel is the attribution startup whose technology tracks how AI models use artists’ work in training and generation. The acquisition “advances WMG‘s mission to ensure that artists, songwriters, and rightsholders benefit wherever and whenever their work is referenced in AI-generated works or in the training of AI models,” according to the company… (MBW)
3. MUSIC PUBLISHERS STRIKE AI LICENSING DEALS WITH UDIO AND KLAY AS NMPA REVEALS ‘LANDMARK’ INDUSTRY-WIDE PACTS
The National Music Publishers’ Association has agreed an industry-wide AI licensing deal with the AI music platform Udio. NMPA President and CEO David Israelite announced the deal on Wednesday (June 10) at the trade body’s annual meeting in New York, where he also unveiled an agreement in principle with a second AI music platform, KLAY. Israelite said the Udio agreement is the first industry-wide licensing deal struck with a major AI music company, and the first to “value songs and sound recordings equally” when it comes to AI training… (MBW)
4. UNIVERSAL SELLS CURVE ROYALTY SYSTEMS TO MERLIN AND MATT SPETZLER’S JAMEN CAPITAL
Universal Music Group and its subsidiary Virgin Music Group have agreed to sell Curve Royalty Systems to Jamen Capital and Merlin. The sale is the divestment that the European Commission required as a condition of clearing Universal Music Group’s $775 million acquisition of Downtown Music Holdings in February. It paves the way for Curve, the royalty processing platform used by thousands of record labels, distributors and publishers, to operate as an independent business again… (MBW)
5. SPOTIFY SEEKING RIGHTS TO SHOW LIVE VIDEO OF MUSIC FESTIVALS (REPORT)
Spotify has held talks with festival promoters over rights to carry live concert video on its platform. That’s according to Bloomberg, which reported on Monday (June 8) that the plans had been described to it by people familiar with the talks. It would be Spotify‘s first push into live video; the company has so far only tried live audio… (MBW)
Partner message: MBW’s Weekly Round-up is supported by BMI, the global leader in performing rights management, dedicated to supporting songwriters, composers and publishers and championing the value of music. Find out more about BMI here. Music Business Worldwide
Welcome to Music Business Worldwide’s Weekly Round-up, where we summarize the top five stories from the past week in the music industry. This round-up is supported by BMI, a leader in performing rights management that advocates for songwriters, composers, and publishers.
1. Universal Music Group’s €1 Billion Bond Sale
Universal Music Group (UMG) has confirmed a successful bond offering, pricing it at EUR €1 billion (approximately USD $1.15 billion). The offering consists of two tranches, each worth €500 million. The first tranche includes 3.375% senior unsecured notes due in 2030, while the second comprises 4.125% senior unsecured notes due in 2036. This bond sale reflects UMG’s significant financial activity and strategic planning within the evolving music marketplace.
2. Warner Music Group Acquires Sureel AI
Warner Music Group (WMG) has made a strategic acquisition by purchasing Sureel AI, a startup specializing in tracking how AI models utilize artists’ works. This acquisition is part of WMG’s commitment to ensuring that artists, songwriters, and rights holders receive due compensation whenever their work is referenced in AI-generated content or during the training of AI models. This move highlights the growing intersection between music and technology, particularly in how AI impacts the creative industries.
3. NMPA Strikes AI Licensing Deals with Udio and KLAY
The National Music Publishers’ Association (NMPA) has announced landmark AI licensing agreements with Udio and KLAY, marking a significant step in the integration of AI into the music industry. NMPA President and CEO David Israelite revealed these agreements during the organization’s annual meeting in New York. The deal with Udio is particularly noteworthy as it is the first industry-wide licensing agreement with a major AI music platform, aiming to ensure that both songs and sound recordings are valued equally in the context of AI training.
4. UMG Sells Curve Royalty Systems
In a strategic divestment, UMG, along with its subsidiary Virgin Music Group, has agreed to sell Curve Royalty Systems to Jamen Capital and Merlin. This sale was a necessary condition for the European Commission’s approval of UMG’s $775 million acquisition of Downtown Music Holdings earlier in the year. The sale allows Curve, a royalty processing platform utilized by numerous record labels, distributors, and publishers, to operate independently, potentially enhancing its services and reach in the music industry.
5. Spotify Seeks Rights for Live Festival Video
In an exciting development, Spotify is reportedly in discussions with festival promoters to obtain rights for broadcasting live concert videos on its platform. According to sources cited by Bloomberg, this would mark Spotify’s first venture into live video content, expanding beyond its traditional focus on audio streaming. This initiative could potentially reshape how audiences engage with live music experiences digitally, providing an avenue for festivals to reach a wider audience through Spotify’s platform.
These stories reflect significant movements in the music industry, highlighting the ongoing evolution of how music is produced, distributed, and consumed in an increasingly digital world. With major players like UMG and WMG making strategic acquisitions and partnerships, and initiatives by organizations like NMPA to address the challenges posed by AI, the landscape of the music business continues to adapt and transform. As Spotify seeks to innovate with live video, the intersection of technology and music will likely continue to grow, offering new opportunities for artists, producers, and consumers alike.
