Welcome to Music Business Worldwide’s weekly round-up – where we make sure you caught the five biggest stories to hit our headlines over the past seven days. MBW’s round-up is supported by Centtrip, which helps over 500 of the world’s best-selling artists maximize their income and reduce their touring costs.
This week, MBW reported on Aventhis, the outlaw-country “artist” whose AI-generated tracks have garnered over 1 million monthly listeners on Spotify. We also learned that Aventhis’ music was created with a combination of two generative AI music engines: Suno and Riffusion.
Elsewhere, JT Myers and Nat Pastor, the co-CEOs of Virgin Music Group, sent a letter to VMG staff slamming “juvenile and offensive falsehoods” spread by opponents of Virgin’s proposed takeover of Downtown Music Holdings.
Also this week, Scooter Braun stepped down from his role as CEO of HYBE America. He will pursue new ventures while taking on an executive advisory role as a director of HYBE’s Board of Directors and Senior Advisor to the Chairman and CEO of HYBE.
Meanwhile, on Tuesday (July 1), Warner Music Groupand private investment giant Bain Capital launched a $1.2 billion joint venture to acquire “legendary” music catalogs across both recorded music and music publishing.
On the same day, WMG announced a plan to reduce the company’s annual costs by around USD $300 million on an annualized run-rate basis by the end of fiscal year 2027 – with $170 million saved via “headcount rightsizing”.
Earlier this week, MBW reported on Aventhis, the outlaw-country “artist” whose AI-generated tracks have garnered over 1 million monthly listeners on Spotify.
Why did MBW conclude that Aventhis is an AI invention?
Because the person credited as writer and producer on the tracks, David Vieira, appears to have admitted as much in comments on YouTube.
“[The] voice and image is created with the help of AI. The lyrics are written by me,” said the anonymous owner of Aventhis’ YouTube channel.
Now we have further corroboration about the source of Aventhis’ music…
To date, JT Myers and Nat Pastor, the co-CEOs of the global services company, have publicly refrained from discussing opposition to Virgin’s proposed $775 million takeover of Downtown Music Holdings.
That just changed.
In a new letter to VMG staff, obtained by MBW, Myers and Pastor address several accusations made about Virgin – and its parent company, Universal Music Group – from parties who want regulators to block the Downtown acquisition….
Scooter Braun has stepped away from his role as CEO of HYBE America.
According to the official announcement on Tuesday (July 1), the exec will pursue new ventures, while taking on an executive advisory role as a director of HYBE’s Board of Directors and Senior Advisor to the Chairman and CEO of HYBE.
Isaac Lee, described as “a seasoned entertainment executive” who has been leading HYBE Latin America as Chairman since November of 2023, will become Chairman and CEO of HYBE Americas…
Warner Music Group and private investment giant Bain Capital are launching a $1.2 billion joint venture to acquire “legendary” music catalogs across both recorded music and music publishing.
MBW understands that roughly half of the $1.2 billion is made up of debt, half with cash, with equal liability on both sides of the JV.
WMG and Bain Capital said on Tuesday (July 1) that they will source and acquire the catalogs together, while WMG will manage all aspects of marketing, distribution, and administration.
The funds might be deployed swiftly: Warner and Bain are reportedly mulling the acquisition of the Red Hot Chili Peppers’ recorded music catalog for around $350 million…
Warner Music Group CEO Robert Kyncl has announced what he calls the “remaining steps in our plan to help future-proof the company”.
This seemingly final stage in Warner’s recent restructuring under Kyncl is expected to further reduce the company’s annual costs by around USD $300 million on an annualized run-rate basis by the end of fiscal year 2027.
Just over half of that annual $300 million cost-cutting target ($170 million) will be achieved via headcount reductions at WMG, said the company.
A further $30 million of savings will be achieved by reducing costs (like admin and real estate expenses) directly related to the headcount reductions. The rest of the cost-cutting will target SG&A expenses…
