This week, Universal Music Group Chairman and CEO Sir Lucian Grainge sent a comprehensive memo to UMG staff outlining the company’s strategy for generative AI partnerships and product development.
Meanwhile, Spotify announced plans to develop “responsible” AI music products in partnership with all three major music companies and key independents.
Elsewhere, beatBread launched a new $100 million fund to deploy capital to indie labels and distributors seeking alternatives to traditional industry financing.
Also this week, Warner Music merged its Benelux and GSA businesses under a new Central Europe structure, with leadership changes across the region.
Here are some of the biggest headlines from the past few days…
1. SIR LUCIAN GRAINGE ON UMG’S AI POLICY: ‘WE WILL NOT LICENSE AI MODELS THAT USE AN ARTIST’S VOICE WITHOUT THEIR CONSENT.’
Universal Music Group Chairman and CEO Sir Lucian Grainge has sent a comprehensive memo to UMG staff outlining the company’s strategy for generative AI partnerships and product development.
The letter, sent on Monday (October 13) and obtained by MBW, addresses three core areas: (i) UMG’s expanding portfolio of AI company agreements, (ii) how artists can participate in AI opportunities, and (iii) the company’s public policy advocacy around responsible AI development. Grainge writes that Universal is “playing a pioneering role in fostering AI’s enormous potential”.
His memo confirms that UMG is “very actively engaged with nearly a dozen different companies on significant new products and service plans that hold promise for a dramatic expansion of the AI music landscape…” (MBW)
2. SPOTIFY TO DEVELOP ‘ARTIST-FIRST’ AI MUSIC PRODUCTS IN PARTNERSHIP WITH SONY, UMG, WARNER, MERLIN, AND BELIEVE
Spotify plans to develop “responsible” AI music products in partnership with all three major music companies – Sony Music Group, Universal Music Group, and Warner Music Group – as well as indie music representative Merlin and independent music company Believe.
The company stated that it is “making significant investments in AI research and product development” and has already begun building a “state-of-the-art” generative AI research lab and product team.
Spotify announced the partnerships and plans to develop “artist-first AI music products” on Thursday (October 16). It said that it aims to onboard additional rightsholders and distributors over time... (MBW)
3. BEATBREAD LAUNCHES $100M GLOBAL INDIE FUND IN PARTNERSHIP WITH AIM, WIN, IMPALA
Two months after beatBread secured another USD $124 million in credit and equity capital, the music financing platform has now launched a new fund that will deploy $100 million to labels and distributors seeking alternatives to traditional industry financing.
The Global Independence Fund (GIF) represents an expansion of beatBread’s existing business model, which provides capital to independent music operations.
The company established the fund in partnership with several trade organizations representing independent labels, including AIM, AIM Ireland, WIN and IMPALA.
The financing will allow labels to access capital by borrowing against existing catalog revenue streams, securing advances for artist signings, and obtaining working capital for operational expenses, while “maintain[ing] control of day-to-day decision making…” (MBW)
4. WARNER MUSIC MERGES BENELUX-GSA BUSINESSES; NIELS WALBOOMERS NAMED PRESIDENT, AS CENTRAL EUROPE BOSSES DOREEN SCHIMK & FABIAN DREBES EXIT
Warner Music is combining its recorded music businesses in Benelux (which includes the Netherlands, Belgium, and Luxembourg), including Spinnin’ Records, with those in Germany, Switzerland, and Austria (GSA) under the Warner Music Central Europe banner.
Niels Walboomers has been appointed President of the expanded WM Central Europe region across those six countries. Doreen Schimk and Fabian Drebes will step down as WM Central Europe Co-Presidents after four years in the role, and decades at the company, as “they pursue new projects”, Warner said on Tuesday (October 14).
On the publishing side of the business, Natascha Augustin will continue to serve as Managing Director of Warner Chappell Music Germany, which Warner noted is the “country’s number one domestic music publisher”, reporting to Guy Moot, Co-Chair and CEO of Warner Chappell Music… (MBW)
5. Frank Sinatra name, image and likeness rights acquired by Irving Azoff’s Iconic Artists Group
Iconic Artists Group, the company led by music industry veteran Irving Azoff, has reportedly acquired Frank Sinatra’s name, image and likeness rights.
Bloomberg reported the news on Sunday (October 12) and said that Azoff plans to create a Rat Pack-themed venue in Las Vegas.
Speaking at Bloomberg’s Screentime conference last week, Azoff confirmed that the company “recently acquired a chunk of the Sinatra estate.”
Frank Sinatra Enterprises confirmed the deal in a statement sent to MBW: “Frank Sinatra Enterprises, Tina Sinatra, and Warner Music Group are delighted to welcome Irving Azoff and Iconic to the dedicated team serving the life’s work and legacy of Frank Sinatra….” (MBW)
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