The news is that Pershing Square Tontine Holdings in New York plans to acquire 10% of UMG’s newest services in financial trading systems and gaming licensing & music productisation opportunities.
Alongside this, Believe’s upcoming IPO could become one of the biggest events in the indie music industry at some point and be part of a wave of IPOs (like WMG, UMG), SPAC (like Anghami, Reservoir), and cash and vehicle availability catalogs.
This process is called, for good reason, “money laundering,” but that’s only part of what’s going on here. This goes beyond the introduction of capital and debt; The financial industry became part of the gaming business line and, in turn, changed the definition of success. These changing goals and aspirations can make the music industry work.
While the plans and aspirations of the financial industry invest in various types of music, it is often different from the plans of the music industry, especially those with the potential of traditional music. Success may not be necessary for success. For example, goals that the music industry can adhere to (such as playlists) may have little immediate effect and useful class value.
Macro market trends also reflect a downturn: the value of the publicly announced music catalog business will grow by 14% in 2020, while global music printing and printing costs only to grow by 8%, meaning that financial benefits continue to grow faster music catalogs. of their income. generate energy.
The rights of music productisation are constructed as a valuable class and explain their benefits differently from the way the music industry views value. The value of music to the music industry continues to be a matter of business and culture. Object hit. But the same value of music as part of the catalog is defined as a financial asset by several factors, including the value of music as an asset class compared to other financial classes.
When companies like pension funds and investors gain access to music, they contribute to different asset folders, as well as music as a threat and a reward. These financial institutions make a profit by accumulating assets in the products they sell. A retirement plan is a simple example. This is the productisation of musical abilities.
All of this is important because the strategic goal of the financial industry is to create the public interest for the power of fear. For example:
Tencent’s leading consortium that has received 20% of UMG’s pledge for the rights of music productisation to broadcast bets (such as Spotify) has made or diverged from UMG’s relationship with the promotional service. For now, these ideas will fit individually with the thinking of UMG leaders, but if they change over time, they could influence UMG’s plans.
The Ontario teacher’s retirement investment in Anthem Entertainment is part of an investment plan that is expected to increase profits in return. Depending on the specific plan, this might, for example, support the National Anthem which focuses on acquiring a risk-taking investment in writers.
None of these examples are particularly positive or negative, they simply show that the amount and nature of investment that goes into the music industry are changing how the music business works. In some cases, this will lead to a safety hazard and in other cases gross negligence. But this fact should not be taken lightly for the music industry’s productisation of music well as other aspects of the lender’s investment history.
External money has played an important role in the world of music for a long time, but never like this. The music productisation trading catalog (excluding IPOs, SPACs, etc.) hit a record 74% in 2020. This rate of inbound investment shows no signs of slowing down productisation. So whatever you do in music production, it’s a market force that will help shape the future of the music business.