Welcome to the Music Business Worldwide weekly review—where we ensure you catch the five biggest stories that made headlines over the past week. The MBW review is supported Center, which assists over 500 top-selling artists globally in maximizing their income and minimizing touring expenses.
Sony Music’s AI Deepfake Challenge
In light of the UK government’s consultation on artificial intelligence and copyright law, Sony Music revealed that it has requested the removal of over 75,000 generated AI Deepfakes related to their artists’ content, showcasing how swiftly this issue has escalated.
Blaxtone Rebrands While Acquiring Hipgnosis
This week, Blaxtone, which acquired Hipgnosis Songs last year for $1.58 billion, announced a rebranding to Recognition of a Music Group. However, MBW sources suggest that the name Hipgnosis may persist as Merck Mercuriadis appears to retain the rights and can use it for his new venture.
Meanwhile, MBW reported that Agreement is nearing another significant acquisition, this time targeting Root, a distribution platform based in Los Angeles, in a deal rumored to be in the high eight digits.
On the selling side, Pershing Square announced plans to divest 2.7% of its shares in Universal Music Group for $1.4 billion, as per a Bloomberg report.
Lastly, Believe has released its annual report for 2024, indicating a revenue growth of 11.5% year-on-year with a total income of €988.8 million ($1.070 billion).
1) Sony Music reveals 75,000 AI Deepfake Takedowns, Slams UK 'rushed' plans for copyright.
Sony Music has challenged the UK government’s proposed copyright reform, noting that it has already demanded the removal of over 75,000 AI-generated Deepfakes featuring their artists’ content.
The music giant cautioned that the proposed changes to copyright laws could be “hasty, unbalanced, and irreversible,” potentially causing significant harm to the British creative economy.
In its government consultation submission on AI and copyright law, received by Financial Times and The Sunday Times, Sony labeled the proposed measures as a threat to an industry contributing £7.6 billion ($8.23 billion) annually to the UK economy.
The consultation period, which concluded on February 25, centered on plans to implement a “text and data exemption,” allowing AI companies to use copyrighted material for educational purposes without permission unless creators opt out…
2) Blaxtone launches a musical group to recognize … But can HipGnoss Live elephant? (Meanwhile, AI has thoughts about rebranding.)
Blaxtone has decided to retire the name HipGnosis.
Instead, it will rebrand itself under Recognition of a Music Group, uniting its 45,000 songs and team, emphasizing their objective to maximize earnings.
As part of this transition, Blaxtone hinted at potential future acquisitions by stating: “Based on our relationships with songwriters and artists, and solid business practices in catalog acquisition and management, we are well-positioned for growth and in delivering excellent returns to investors.”
Industry whispers to MBW suggest that Merck Mercuriadis may have retained rights to the Hipgnosis name and could utilize it for a new entity he intends to launch by the end of this year…
Elenar/Shutterstock
3) Consent to the acquisition of STEM in a transaction from $50 million USA, say, MBW sources
MBW has learned that Agreement is nearing another notable acquisition.
Our sources indicate that the company is in the final stages of acquiring Root, a distribution and payment platform based in Los Angeles, in a high eight-digit deal exceeding $50 million.
While the deal has not yet been finalized, we understand that Rhine Group is also involved.
This news follows about four months after Concord successfully closed a securities transaction (ABS) supported by assets, raising $850 million in long-term financing following private securitization backed by its catalog of music rights…
Sipa us/alamy
4) Bill Akman Square to collect $1.4 billion from the sale of 2.7% of the shares in UMG (report)
Bill Akman from Pershing Square is set to raise $1.4 billion from selling 2.7% of its shares in Universal Music Group.
This information comes from Bloomberg, which reported this afternoon (March 13) that the transaction conditions revealed Pershing Square Holdings Ltd., Pershing Square LP, and Pershing Square International Ltd. are selling shares at $50 million per €26.60.
Bloomberg also indicated that Morgan Stanley is managing the share sale.
In a statement shared on X on Thursday, Akman expressed: “We decided to sell part of our UMG position today”…
Photo: Anis Martin
5) Believe that in 2024 more than $1 billion was received.
Believe has released its financial results for the 2024 fiscal year (12 months ending December 31).
The company reported total revenue of €988.8 million ($1.070 billion) through its various business lines.
This marks an increase of €108.5 million ($117.42 million), up from €880.3 million in 2023, reflecting a growth of 12.3% year…
On an organic basis (adjusted for perimeter, similar, and constant exchange rates), Believe’s revenue grew by 11.5% year…
The MBW weekly review is backed by Centrip, assisting over 500 top-selling artists worldwide in maximizing their income and reducing touring costs.
Lucas focuses on the interaction between music and society. He specializes in how music influences and reflects cultures, analyzing the role of sound in social, political, and cultural events around the world.
