Welcome to the Music Business Worldwide weekly review – where we highlight the five biggest stories that made headlines over the past week. The MBW review is supported Center, which assists more than 500 best-selling artists globally in maximizing their income and minimizing touring expenses.
Key Developments in the Music Industry
This week, we discovered that the long-awaited Superfan’s application from Warner Music Group is nearing launch, with Ed Sheeran selected as the first artist.
In another major update, Create Music Group announced its acquisition of ! K7, a music company founded in Germany by Horst Weidenmüller, who passed away in February at the age of 60.
Additionally, Epidemic Sound reported a remarkable 29% increase in revenue for 2024, accompanied by an impressive 150% growth in adjusted EBITDA.
Furthermore, Bill Ackman, a significant shareholder of Universal Music Group, expressed concerns over the Donald Trump trade war, joining other prominent financiers in calling for a pause on tariffs.
This week, the US Congress also saw the reintroduction of a bipartisan bill aimed at regulating unauthorized Deepfakes…
Here’s a summary of what transpired this week…
Warner Music Group’s New Superfan Application
1) Warner Music Group prepares its Superfan application – featuring Ed Sheeran
Warner Music Group is advancing its long-awaited Superfan application, which is currently being tested by a select group of users, according to a recent Wall Street Journal report.
Ed Sheeran has been earmarked as the first artist to feature on the app, evolving from its initial beta version tested by a few employees last spring.
Sheeran is now “actively engaged” with the development version of the app, as reported in an interview with WSJ featuring Elliot Grange, General Manager of Atlantic Records.
Reports indicate that Warner is still fine-tuning the application, leaving the exact features and launch date uncertain…
Photo: to Badd
2) Create Music Group acquires ! K7 Music, founded by the late Horst Weidenmuller
After raising 165 million dollars in its investment round last year, which valued the company at 1 billion dollars, Create Music Group continues its acquisition spree by acquiring the Berlin-based independent music company ! K7.
The financial terms of the deal have not been disclosed. The aim of the acquisition is to honor the legacy of Horst Weidenmüller, who founded ! K7 and passed away this February.
Weidenmüller was a prominent figure in the music industry who established ! K7 in 1985 and was actively involved in the boards of Impala and Merlin.
“Although Horst Weidenmüller, the founder of ! K7, is no longer with us, his vision and words continue to inspire,” said Tom Neveboror…
3) Epidemic Sound reports 29% revenue increase to 181.6 million dollars, with EBITDA soaring 150% to 13.9 million dollars.
Sweden-based Epidemic Sound has announced its annual financial results for 2024.
The report reveals a remarkable 29% yearly increase in revenue, amounting to 1.921 billion Swedish crowns or 181.62 million US dollars based on the average exchange rate for 2024.
Adjusted EBITDA surged by 150% year to SEK 147 million (13.9 million dollars), while unreleased EBITDA skyrocketed by 24 times to SEK 107 million (10.13 million dollars).
According to the annual report, Epidemic Sound boasts an extensive catalog of over 50,000 music tracks and 200,000 “Hollywood” sound effects…
Pic: Kristoffer TripPlaar/Alamy
4) Bill Ackman calls for a pause in Trump’s tariff war while proposing to relocate UMG’s financial headquarters to the US
Billionaire investor and significant Universal Music Group (UMG) shareholder Bill Ackman has issued a warning regarding the potential consequences of the US president Donald Trump global tariffs, describing them as potentially initiating an “economic nuclear winter” if enacted as planned.
This assessment comes from a prominent supporter of Trump, who is advocating for UMG’s financial headquarters and stock listings to be moved from Amsterdam to the United States.
Last July, Ackman backed Trump for president, shortly after a controversial incident at a campaign rally. Four months later, he called for UMG to relocate its domicile and listing in the USA, claiming it would bring “substantial benefits.”
Ackman, through Pershing Square Holdings, controls 7.48% of UMG shares…
Andy Felicitti/Unsplash
5) Bipartisan bill against unauthorized Deepfakes reintroduced in the US Congress with backing from Google and OpenAI
A bipartisan bill addressing unauthorized Deepfakes has been reintroduced in the US Congress, receiving support from the music industry and other creative sectors, along with backing from large tech companies.
The legislation aims to educate on origin, elevate art, and ensure entertainment safety (free from fakes) and was initially presented in the Senate in July 2024 but struggled to progress through the Senate Committee and the House of Representatives before the previous session concluded amidst budget negotiations… (MBW)
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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.
