Conor McNicholas’ Post

Putting my ‘old career’ music hat on, this is an excellent article. I’ve long thought that the festival industry and the top end of the live industry are facing a fairly existential crisis that will hit in five years or so from now. The talent pipeline is broken, the number of potential new stadium and festival headliners is dwindling and there’s only so many times the public will pay to see heritage headliners. The stats the live industry were peddling last year about ‘London’s biggest ever summer of live music’ were misleading and dangerous - a combination of the Covid logjam finally cleaning and the hawking of the same old talent. There’s been - and continues to be - major investment in new, bigger venues, but for me the real bell weather for the health of the industry is the 500-2000 cap gig circuit - and you just have to look at that to see all is not well. Fewer and fewer touring artists, lack of label tour support and artists playing with reduced creative ambition as it’s just not possible to fund touring. The nostalgia industry plugs the gaps at all levels - from covers bands and 90s club nights in the venues that used to have shows from new artists several nights a week to the heritage headliners still filling stadiums. But for how long? This is all said from my personal position these days as a consumer rather than protagonist and I’m sure I’m not at the cutting edge of comment here compared to those at the coalface. But I can see clear parallels with the impact of streaming on the BBC stations I used to work for (reduced reach, Radio 1 ‘noughties’ nostalgia shows on daytime) and on the live touring and festival circuits. The day-to-day interface between the public and the ‘old’ suppliers of music - radio and live venues - is broken, either the demand is not there for new music, or the industry is not able to find a way to connect what new music there is with the consumers in a meaningful way, so it falls back on music that *has* built a connection - ie old music. And that, by definition, is about the past, not the future. In short, good luck out there people, the next few years are going to be rough.

I've seen a ton bull s**t on this topic about Elliot Grainge and his hiring at Atlantic Records. Lets have a conversation now that the dust has settled some. Elliot Grainge, the son of Lucian Grainge, CEO of Universal Music Group (one of the Big 3 major record labels), has now taken on the role of CEO at Warner Music Group’s Atlantic Music Group." 1. No, Elliot Grainge is not running one of the 3 major record labels. That title still belongs to Robert Kyncl over at WMG. If you been paying attention, Robert, who comes from the tech world (more on this in a sec), has been restructuring WMG non-stop since he got there eighteen months ago "flattening" the organizational structure. 2. A few have cried foul on Elliot Grainge, as far as calling the move flat out Nepotism. Is there truth to this? In definition, yes when it comes to his tenure at UMG. As far as WMG, there is no actual proof. In terms of this move being unwise because he is the son of arguably the most powerful man in the music business? Time will tell. Here is what we do know though. Elliot Grainge broke three artist with his label 10k Projects in the last eight years. You might think three is a small number, but in today's industry, breaking even one artist is a challenge. Achieving success with three, especially with two being the biggest pop acts in NA in recent memory—Ice Spice and 6ix9ine—is impressive (the third being Trippie Redd). My take is this. Robert Kyncl brings a different perspective to WMG, drawing on his tech and content background from YouTube, Netflix, and HBO, rather than the traditional music industry approach. In Robert Kyncl's three points about WMG's "The Year of the Next 10," two focused on marketing: "B. Strengthen MARKETING of artists, songs, and albums into a sustained competitive advantage: This is a deep partnership between A&R, Marketing, Technology, and Business Intelligence to develop best-in-class solutions." "C. Holistic deep and shallow CATALOG management. In order to create the most value, we must: Selectively lean into the marketing of our catalog in the ways we do with frontline; and increase focus on optimizing every title on DSPs, as that is where the majority of catalog consumption and revenue is." Instead of finding a reason to get angry or annoyed at the recent moves, consider these three things: 1. Elliot and his team broke several global acts in recent memory. 2. Elliot is the one CEO at the majors who has put a TREMENDOUS amount of emphasis on content marketing with his prior record label, 10k Projects. 3. Most importantly, WMG has had a sinking market share for the last 5 years. Things had to change. In my opinion the choice is obvious. Here is the plain and simple truth. Wether we like it or not, we are no longer in the music business. We are in the media business. Not many do media better than Elliot. Subscribe to my newsletter 'The Manager's Playbook' below for more music industry insights.

The recent acquisition of a significant portion of Michael Jackson's music catalog by Sony Music Group is undoubtedly noteworthy. Jackson's musical legacy is undeniably iconic, and his catalog represents a valuable asset within the music industry. Traditionally, investing in established catalogs of renowned artists has been regarded as a wise strategy, offering stable returns that are often shielded from broader market fluctuations. However, in the current landscape, characterized by high interest rates, the appeal of such investments may be lessened. RIPE Capital focuses on emerging artists with high-performing tracks, offering double-digit returns to investors. This underscores the evolving nature of the music investment landscape, where superstar assets like Jackson's catalog coexist alongside newer opportunities that reflect shifting industry dynamics. https://lnkd.in/emAmz4Jc #musicroyalties #alternativeinvestments

Industry Insight Alert! Universal Music Group (UMG) has just acquired a majority stake in Mavin Global, a powerhouse in Afrobeats. This move highlights the growing global recognition and potential of the African music industry, specifically Afrobeats. What can Kenyan entrepreneurs learn from this? ☑ Identify your unique identity Mavin Global's success stems from its focus on authentically African music (Afrobeats). Similarly, Kenyan businesses can leverage their unique cultural heritage and local insights to stand out in a global market. ☑ Think global, act local While aiming for international recognition, it's crucial to understand and cater to the needs of your local market. Mavin Global, despite UMG's involvement, is expected to maintain its local focus. ☑ Seek strategic partnerships Mavin Global's collaboration with UMG demonstrates the power of strategic partnerships in amplifying reach and resources. Kenyan businesses can explore partnerships with local or international companies to achieve similar growth. The success of Mavin Global serves as an inspiration for Kenyan entrepreneurs, demonstrating the potential of African businesses to thrive on the global stage. https://lnkd.in/geBXEPV2

Exciting times ahead for #Afrobeats and ultimately multiple genres of African music as Universal Music Group makes a strategic bet on Mavin Records 🌍 🎶. Best of all, by keeping the brilliant minds and business savvy of Don Jazzy and Tega Oghenejobo at the helm, the deal rewards and recognizes local leadership and the unique entrepreneurial talent and spirit that catapulted Mavin to success. It’s a true win-win. In addition to capital, Marvin gains access to UMG's vast distribution network, industry expertise, and partnerships. UMG gains major first-mover advantage, including direct access to more of the best of Africa's original, vibrant, and electrifying music – arguably the freshest and most exciting music on the global stage today, and likely for some time to come. The strategic alliance is also set to supercharge Mavin’s growth, with the potential to be a major hub for African music. With initiatives like the Mavin Artist Academy and the executive leadership program, we're not just talking one-off hits; we're talking about the potential for building an ecosystem that nurtures talent, promotes collaboration, and innovates for a growing and increasingly diverse global market for African music. From Afrobeats to Amapiano, this move is about amplifying African music, creating more opportunities for artists, and bringing the magic of African music to platforms and venues across #Africa and worldwide. Even more exciting times are ahead for African music. Where UMG and Mavin are leading, others are sure to follow! Here's to making history, breaking barriers, and building bridges. Let's go! 🚀 💫 #UniteInAfrica #AfricanMusicToTheWorld

New Post: Universal Music Group Announces Label Restructure, With Monte Lipman and John Janick as Leaders - https://lnkd.in/g-r_RGbT - The Universal Music Group announced a massive restructuring of its record label operations Thursday (Feb. 1), reorganizing its web of frontline labels to align them under two main companies, in Republic Records and Interscope Records. The move, which can loosely be termed an East Coast (Republic) and West Coast (Interscope) realignment, means that Interscope’s John Janick and Republic’s Monte Lipman will be leading U.S. label operations for UMG. As part of the move, the other U.S. label heads will now report through to Janick and Lipman, a source confirms. In the new alignment, Janick will now oversee Interscope, Geffen, Capitol, Motown, Priority, Verve and Blue Note, while Lipman will oversee Republic, Def Jam, Island and Mercury. UMG chairman/CEO Lucian Grainge announced the move today in a memo to staff, in which he acknowledged that Republic and Interscope have been the two market leaders in current market share in recent years; in 2023, Republic claimed 13.47% of the U.S. market, while Interscope was second, at 8.80%. “As our labels continue to maintain their creative A&R and marketing independence, unique identities, and entrepreneurial spirit, they’ll also be provided with access to the talent and resources best able to support their rosters and bring them to new levels of success,” Grainge wrote in the memo, obtained by Billboard. “It’s a proven model we pioneered on the East Coast several years ago—one that we will accelerate and expand. “As this model takes shape and spurs new creativity, our U.S. recorded music business will continue to outperform and outgrow our competition,” Grainge continued. “Led by the industry’s best creative visionaries — we will cultivate more repertoire sources, we will invest more in new artists and emerging genres, and UMG will become an even more attractive destination for the world’s most gifted artists.” The move comes after weeks of speculation about layoffs and restructuring at the company, and while no other moves were announced Thursday, layoffs are still expected, according to many sources. In his memo, Grainge said that “In the coming weeks, John and Monte will be making further announcements about structure, resources and next-generation partnerships. These and other developments will also power some of the other initiatives I outlined in my New Year’s note, including super-fan and audience monetization, state-of-the-art D2C, e-commerce, branding and more.” - ----------------------------------------------------- Download: Stupid Simple CMS - https://lnkd.in/g4y9XFgR

In case you missed it… HYBE, the company behind superstars BTS and SEVENTEEN, just launched a label services business in the US MBW Explains is a series of analytical features in which we explore the context behind major music industry talking points – and suggest what might happen next. #HYBE #BTS #musicbusiness #musicindustry #musicnews #labels

New Post: Warner Music CEO Robert Kyncl’s New Year’s Note Outlines 10-Year Plan - https://lnkd.in/dAkziVcd - Now that Warner Music Group chairman/CEO Robert Kyncl has had a full year at the helm of the major label, he has released a New Year’s note to staff, obtained by Billboard, outlining a plan to kick into gear and set the company up for the next 10 years of changes in the music business. In the note, Kyncl says he’s referring to the year 2024 as “The Year of the Next 10 — the year when we move at velocity to set ourselves up for a winning decade in the new world.” “As we start the new year, one thing I’d like us all to remember is that our world has fundamentally changed… the music business is in a very different place than it was 10 years ago,” Kyncl writes. “Now, we’re in a position of strength. That is the time to get ahead for the future.” Related Robert Kyncl Lays Out WMG’s Three-Pronged Approach to AI 01/08/2024 He then emphasizes three key areas that he sees as crucial for the next year: growing the engagement with music; increasing the value of music; and evolving how the team works together. On the first point, Kyncl breaks it down into four main focus points. The first, he writes, is about focusing A&R more on capturing opportunity, including geographically (“based on where artists and songwriters come from and where their streams are going”) and looking forward, as with identifying genres that will grow in the future. The second, in marketing, he emphasizes the partnership between marketing, A&R, tech and business intelligence to better focus efforts and better use the data available. The third, in catalog, emphasizes the ability to market and promote WMG’s extensive catalog on the same lines as it does its frontline music, particularly in digital optimization, given that catalog is driving some 70% of consumption in the current market. And finally, he emphasizes distribution and administration, in beefing up both the services available to the “middle class of artists” and in the major’s publishing admin business, which he wants to scale up further. The second point, focusing on value, is about solving in 2024 for some of the conversations that rose up and started to dominate in 2023: namely, the value of artists and music on streaming platforms, as well as the issues surrounding the dilution of the royalty pool from the likes of functional music and white-noise tracks. Kyncl has previously spoken about the importance of streaming services raising prices, which many did in the past year, which he stresses as well. And finally, he stresses the need to further develop artist-to-superfan relationships, which he call

Last year, the music industry experienced significant growth through various revenue streams. Nevertheless, it remains a challenging field to enter and remain in for artists and employees alike. In this article, we look critically at the state of the music industry and discuss the current trends and challenges. Michele M. #iMusician #MusicIndustry

Nice little article here - always good to look for the lessons in the headlines!