VIVENDI TO SELL 50% OF UNIVERSAL MUSIC – The biggest recent news is Vivendi’s announcement to sell up to half of it’s crown jewel Universal Music Group (UMG), which generates 41% of Vivendi’s revenue and 60% of operating income. Vivendi is looking to capitalize and profit on rising valuations in the music industry, driven from the growth of streaming and music tech. Additionally, Vivendi is looking for a strategic investor, probably a technology company with distribution for UMG’s content catalogue. Another prediction coming true for TuneGO followers. Big Tech is taking over the music industry by controlling distribution and investing in content. The industry will experience massive consolidation and rising valuations in the near future. On a side note, TuneGO helped the music group Three Guests secure global distribution rights with UMG.
DEEZER RAISES $185 MILLION – Want to know where smart money is investing their capital? Smart money is investing in streaming and music-tech, because technology companies now control music distribution. Deezer secured $185 million from Billionaire Len Blavatnik’s Access Industries and Prince Alwaleed Bin Talal’s Kingdom Holding Company and the Rotana Group. The investment values Deezer at $1.16 Billion. Deezer also announced a strategic partnership with Rotana to distribute music content from the Arab world’s largest entertainment company. Deezer lags behind market leaders Spotify, Apple and Amazon, but is strong in pockets of Europe and is focusing on emerging markets. TuneGO is a proud partner and content supplier to Deezer.
SONY BUYS 100% OF EMI MUSIC PUBLISHING – The acquisition values EMI Music Publishing at $4.75 Billion and illustrates Sony’s understanding and faith in the music industry. Sony understands that Big Tech now owns and controls music distribution. They know this because thanks to Big Tech-owned music streaming, Sony Music streaming revenues increased 39% in Q2 2018 and total music revenues are up 11%. Sony understands that Big Tech owns music distribution and therefore pays heavily for music content. EMI Music Publishing is a music catalog, which means Sony acquired music rights in order to generate decades of revenue from Big Tech-owned streaming music distribution. The music industry is following the “Netflix” model. Big Tech controls distribution and is now focused on content. TuneGO is the leading Big Data-driven content supplier to the world’s leading music distribution platforms, including Spotify, Apple, Amazon, Deezer… And in China Tencent, NetEase, Alibaba, and Baidu… Think about the possibilities!
Today’s Awesome Quote! “The music industry is following the Netflix model of distribution and content investment.” – TuneGO CEO, John Kohl