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 maximise their income and reduce their touring costs.
At the end of Q2, having posting revenue growth of over half a billion dollars following five straight quarters of decline due to COVID, Live Nation boss Michael Rapino forecast a “roaring era for concerts and other live events”.
This week showed the first official signs of his prediction coming true.
Live Nation this week posted revenues of $2.7 billion for Q3 (the three months ended September 30). And writing to investors, Rapino confirmed that live music has indeed “roared back over the past quarter.”
In closing his letter, Rapino struck a deservedly optimistic tone: “As we get close to turning the page on 2021,” he wrote, “I remain more convinced than ever on the power and potential of live entertainment, and the strength of our position.”
Live Nation wasn’t the only publicly-traded company to post strong Q3 results this week.
Korea-based HYBE, the music company behind K-Pop stars BTS, posted revenues of 341 billion South Korea Won ($288m), an increase of 79.5% or 151 billion South Korea Won ($127m) compared to the same quarter in 2020.
And on the same day that it published its financials, HYBE announced an NFT partnership with Korean fintech firm Dunamu.
That partnership will see HYBE acquire a 2.5% in Dunamu for 500 billion South Korea Won (approx. $421m at current exchange rates), while Dunamu will acquire a 5.6% stake in HYBE, for 700 billion South Korea won ($590m).
Meanwhile, Paris-headquartered Believe‘s Q3 fiscal results (for the three months to end of September) revealed that the firm’s topline revenues in the quarter were up 26.8% YoY on an organic basis, to €144 million ($167m at current exchange rates).
Believe also revealed that it has acquired a 25% stake in one of France’s leading independent labels, Play Two.
The former company didn’t disclose what it paid for the stake in the label, but did reveal that “the transaction values Play Two at just under €50 million on a 100% basis,” which means it’s fair to estimate that, for a 25% stake, Believe paid roughly €12.5 million (approximately USD $14.5m).
Also this week, Chris Gobalakrishna and Jonathan Serbin were named Co-Presidents of Warner Music Asia.
And on MBW’s Talking Trends podcast, host Louise Porter and MBW founder Tim Ingham discussed whether or not UnitedMasters founder, Steve Stoute, could now be considering an IPO for his company.
Concerts giant Live Nation Entertainment has published its Q3 results for the three months ended September 30.
The company reports quarterly revenues of $2.69 billion across all divisions, including concerts, ticketing and advertising & sponsorship, with Live Nation President and CEO Michael Rapino telling investors in a letter this week that “live music roared back over the past quarter.”
That $2.69 billion revenue figure eclipses the $184 million posted in the same quarter last year, when concerts were largely on hold in most global markets due to Covid restriction….
HYBE, the home of superstars BTS, is officially getting into one of 2021’s most talked-about and lucrative digital markets: NFTs.
Not only that, but it’s throwing considerable weight behind the crypto craze via a new joint venture with Korean fintech firm Dunamu, which operates a crypto exchange called, Upbit.
The strategic partnership will see HYBE acquire what Korean news site Pulse reports is 861,400 shares in Dunamu for 500 billion South Korea won (approx. $421m at current exchange rates). Dunamu meanwhile, according to a regulatory filing, will acquire 2,302,570 shares in HYBE for 700 billion South Korea won ($590m).
Coindesk reports that the shares are being exchanged ‘through a third-party allotment capital increase’, and results in HYBE acquiring a 2.5% stake in Dunamu, while Dunamu takes ownership of a 5.6% stake in HYBE…
This week on our Talking Trends podcast, host Louise Porter and MBW founder Tim Ingham discuss the music industry’s “quiet giant” – the DIY distribution and tools sector.
One leading player, UnitedMasters, recently secured a valuation of $550 million, via a new $50 million fundraise. That news came shortly after another key DIY company, DistroKid, secured a $1.3 billion valuation.
Ingham suggests that UnitedMasters founder, Steve Stoute, could now be considering a potential sale of some or all of the company – or an IPO on the stock market…
Chris Gobalakrishna and Jonathan Serbin have been named Co-Presidents of Warner Music Asia.
They will both be based in Hong Kong and report to Simon Robson, President, International, Recorded Music, Warner Music Group.
The company says that Gobalakrishna and Serbin have already played a “crucial” role in Warner’s regional operations since Robson, who was President of Warner Music Asia between 2015 and 2020, returned to London to take up his current role…
