The Main Labels Earned $25B in 2021 — And That’s Simply the Begin – Billboard


The Ledger is a weekly publication in regards to the economics of the music enterprise despatched to Billboard Professional subscribers. An abbreviated model of the publication is revealed on-line.

Six years into the worldwide music business’s restoration, the most important labels and publishers are rising by leaps and bounds. The three main music teams — Common Music Group, Sony Music Leisure and Warner Music Group — had mixed revenues of $25.4 billion in calendar 2021, up 19.8% from calendar 2020, based on Billboard‘s calculations. That annual development price was greater than a four-fold enchancment from the businesses’ 4.7% income development in 2020 after a slowdown in bodily items gross sales in the course of the pandemic. Mixed, the businesses had an working revenue was $4.1 billion in 2021, a 44.3% improve, with a mixed working revenue margin of 16.3%, up from 13.5% in 2020.

Recorded music revenues have been $18.7 billion, up 23.1%. Inside recorded music, streaming revenues grew 27.8% to $12.5 billion and bodily gross sales rose 16.2% to $2.8 billion. Mixed publishing revenues climbed 19.3% to $4.1 billion. If Sony’s “visible media and platform” division is eliminated, which higher displays the businesses’ music-focused operations, the majors’ mixed income was $23.2 billion, up 22.2% from $19.0 billion in 2020.

The resumption of the touring enterprise in 2021 additionally helped a smaller however essential a part of their companies, merchandise. At Bravado, UMG’s merchandise division, income grew 28.9% to $429 million. WMG’s artist providers phase, which incorporates income from each merchandise and touring, improved 25.9% to $651 million.

(UMG reported 2021 earnings on Thursday. SME’s and WMG’s fiscal years — each reported in February — are totally different than the calendar yr. Billboard transformed currencies into U.S. {dollars} utilizing annual common alternate charges from IRS.gov.)

Between sturdy development in streaming royalties and the resumption of touring, the majors can count on double-digit natural development in 2022. However that’s just the start: Acquisitions and investments will bolster high and backside traces this yr and past. For UMG, catalog acquisitions will assist its 2022 earnings assertion. In response to its earnings report, UMG spent 388 million euros (about $459 million) on catalog acquisitions in 2021, lower than half the 929 million euros ($1.06 billion) it spent in 2020, when it bought Bob Dylan’s music catalog for an estimated $400 million-plus. UMG has continued its M&A exercise in 2022, buying the songwriting catalogs of Sting and Neil Diamond.

WMG and SME are rising with acquisitions of catalogs and whole firms. WMG’s acquisition of 300 Leisure — which it beforehand distributed — for $400 million is a frontline label with a roster that features Megan Thee Stallion and Younger Thug. WMG additionally acquired the David Bowie songwriting catalog, purchased a majority stake within the Africori digital distributor and picked up the belongings of Doug Morris’ 12Tone Music. SME’s 2021 offers included Bruce Springsteen’s recorded music and publishing catalogsBob Dylan’s recorded music catalogPaul Simon’s songwriting catalog and a majority stake in Alamo Information. SME’s buy of Brazilian label Som Reside was cleared by regulators in February, and its acquisition of label providers firm AWAL was provisionally cleared by a U.Ok. regulator final month.

Individually, SME ought to get a lift from its strategic funding in merch firm Ceremony of Roses, introduced in January. Sony’s Thread Store merch division will stay a model underneath Ceremony of Roses.

STOCKS

By way of March 4, the % change over final 5 buying and selling days and yr thus far.

Spotify: $135.17, -11.2%, -42.2% YTD
Common Music Group: 18.20 euros, -7.9%, -26.6% YTD
Warner Music Group: $33.02, -9.6%, -23.5% YTD
Reside Nation: $114.38, -9.1%, +8.7% YTD
Eventbrite: $13.77, -7.8%, -21.0% YTD
CTS Eventim: 57.38 euros, -9.9%, -10.8% YTD
iHeartMedia: $19.94, -9.1%, +8.7% YTD
Anghami: $13.50, -31.1%, +32.2% YTD
NYSE Composite: 16,120.61, -1.8%, -6.1% YTD
Nasdaq: 13,313.44, -2.8%, -14.9% YTD





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The Ledger is a weekly publication in regards to the economics of the music enterprise despatched to Billboard Professional subscribers. An abbreviated model of the publication is revealed on-line. Six years into the worldwide music business’s restoration, the most important labels and publishers are rising by leaps and bounds. The three main music teams — Common…

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