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Rob Stringer, chairman of Sony Music Group and CEO of Sony Music Entertainment, rarely gives public interviews.
For one thing, unlike peers at Universal Music Group and Warner Music Group, Stringer doesn’t have to face questions from investment analysts on quarterly earnings calls.
That’s because, unlike UMG and WMG, Sony Music Group isn’t directly publicly traded. Instead, it’s an important (and increasingly profitable) subsidiary of Tokyo-based Sony Corporation, which is also home to PlayStation, Sony Pictures, and other key divisions.
However, Stringer gave a rare interview to Bloomberg’s Lucas Shaw yesterday (October 10) at the financial publication Screentime conference in Los Angeles.
The two cover a wide range of topics that people in the music industry think about on a daily basis.
Topics include Sony’s recent catalog acquisition spree, which has purchased rights to legendary acts such as Michael Jackson, Queen and Pink Floyd.
Stringer also discussed the balance of power between artists and labels in the recording industry, as well as TikTok’s role… and the fees it pays copyright holders for the use of their music.
You can watch Stringer and Shaw’s discussion below, but we’ve also summarized four things that particularly stood out from the interview…
Image source: PHLD Luca/Shutterstock
1) Sony Music bosses confirm their collaborations with Pink Floyd, Queen and Michael Jackson… and point to “experiential” opportunities at traditional acts.
One of the biggest revelations from Stringer’s interview at the Bloomberg Screen Time conference was confirmation of the company’s recent catalog deal Pink Floyd, Queenand legacy Michaeljackson.
Earlier this month, we reported pink floyd Agreed to sell their catalog of recorded music to Sony Music in a deal valued at approx. $400 millionsources revealed.
The news comes after Sony reportedly completed the acquisition of a slew of career rights to another legendary band, Queen. US$1 billionearlier this year.
this Michaeljackson Meanwhile, Sony Music first reported the sale in February 50% Jackson publishes and records a catalog of masters, while participating in other revenue streams.
The three deals were for more than $150 million in 2022 to buy Bob Dylan’s recorded music catalog, and in 2021 to buy more than $500 million of Bruce Springsteen’s music Mastering and publishing rights deal for the catalog.
Stringer was asked why Sony was so aggressively buying these catalogs and to explain why the reported values of the last three deals (which he did not confirm) were so high. “In modern artistic terms, I think this music is priceless,” Stringer said.
He added, “As far as I’m concerned, Pink Floyd has no price,” equating the value of the legendary British band’s catalog to a Pablo Picasso painting.
“How much can you pay for … a Picasso? It’s relative,” he said.
“In terms of modern art concepts, I think this music is priceless.”
Rob Stringer
Stringer also confirmed that Sony “bought the names and likenesses of two of the shows,” adding that Sony now owns “all the marks.” [and] ”, noting the “experiential potential” and “activity potential” that come with owning NIL rights.
Experiential events using the likeness and music of superstar artists are big business. Just a few weeks ago, we learned aba travel In 2023, virtual experiences in London generated more than $129 million in revenue.
legendary rock band kiss Having recently sold their catalog of songs, as well as name, image and likeness rights (including their face paint designs) to music investment company Pophouse Entertainment (the company behind ABBA Voyage), there are plans to launch a digital version featuring their own Virtual Concert Series.
Could we see similar virtual experiences for the likes of Queen, Michael Jackson or Pink Floyd? The public demand for virtual concerts is definitely there, as evidenced by the following facts: 1.1 million Tourists who visited ABBA Voyage last year.
Stringer also provided some insight into why he thinks buying the catalog of legacy artists like Pink Floyd is a good investment in streaming, noting that “Spotify has matured now, especially It’s the audience” who are getting older and older. [in] English market”.
“So if you look at what’s going on in the market, there’s a much higher percentage of people listening to older music. I think that’s a foregone conclusion, honestly.
Stringer also noted that Sony already has long-term relationships with “everyone” artists the company has recently landed big record deals with, including Bruce Springsteen, Pink Floyd, Michael Jackson, Queen The Band and Bob Dylan.
“We have a lot of knowledge about art and a lot of expertise about the structure of these artists’ careers,” he said.
“So they felt like a good fit. Frankly, I wouldn’t want any of these artists to go anywhere else.
Image source: izzuanroslan/Shutterstock
2) The music copyright industry makes TikTok “become MTV”
The music industry’s relationship with TikTok is often harmonious but sometimes tense.
The argument that music has played a key role in TikTok’s growth has led some in the industry to question whether artists, songwriters and labels are being paid enough for using music on its platform.
Earlier this year, Universal Music Group Tik Tokmainly because, in the words of UMG, “TikTok proposes to pay our artists and songwriters a fraction of what major social platforms pay in similar situations.”
But after a three-month licensing impasse, UMG and TikTok have reached what they call a “new multi-dimensional licensing agreement.”
“We allowed them to be MTV, but we shouldn’t have. Now we’re going backwards. They’re not a promotional platform.
Rob Stringer
In the interview on Thursday, Stringer was asked whether TikTok was paying enough to Sony Music.
Stringer believes that “the debate on this will be: did we start TikTok the right way, did we allow them to become what they thought they were, which was a promotional platform? We probably did.”
He added: “They are not [a] Promotional platform. They are a hugely profitable company and we allow them to be MTV, but we shouldn’t. Now we are giving up on that.
However, Stringer said TikTok isn’t the only service that should pay the music industry more.
He added: “The truth is, we should be getting paid more from several of our DSP partners. That’s part of my job. It’s to make sure we get paid and then turn our attention to payments.
Image source: Shutterstock
3) On…why he’s happy not to run public music companies like Warner Music Group and Universal Music Group
Elsewhere in the interview, Stringer was asked about the differences between Sony and its rivals Warner Bros. and Universal, and whether those rivals are beneficial to Sony as public companies because they are required to disclose information publicly, including quarterly reports.
Universal Music listed on Euronext Amsterdam in October 2021, and Warner Music Group listed on Nasdaq in 2020.
Sony Music’s parent company, Tokyo-based Sony Corp., is publicly traded and reports the results of its music unit along with those of other divisions such as gaming and film and television in quarterly financial reports.
“What do I want to do [quarterly earnings],” Stringer asked in response to a question about his rival, adding: “Not in particular.
Stringer added: “We don’t even put out press releases about what we do, which I know is a little annoying sometimes. [for the media].
“We could sign a lot of catalogs, but we won’t tell anyone officially because it’s not exactly the same dynamic.
“Do I want to be in that position? [of running a publicly-traded music company]? No, not really.
“It’s not a scary thing to be behind the scenes when you’re doing my job.”
Rob Stringer
Stringer also commented on how “tough” it is to be the leader of a publicly traded music company like Universal or Warner.
“I think it’s tough, but I’m friendly with people at other companies,” he said. “I worked with the head of Universal Pictures [Sir Lucian Grainge] I have known him for nearly 35 years. It’s a tough gig. This is [tough] Reporting to shareholders and investors every three months, you must promote your company.
Stringer added: “I’m lucky enough to hold two investor analysis meetings a year and contribute to Sony Quarterly, but I have a little left.
I think [being] Being behind the scenes isn’t a scary thing when you’re doing your job. Artists in front of the curtain. The talent is in front of the curtain. I think [a music company CEO] Sometimes it’s better to hide behind a curtain.
4) The balance of power between artists and record labels
Stringer believes that in the age of digital music, “artists have at least as much power over us, if not more power, because we are part of the overall picture.”
“The whole picture” includes “the scene, the merchandise, the branding…there are a lot of lucrative streams in the music industry right now, and we’re one of them,” Stringer said.
But of course, that’s not always the case.
“When I started – I started in 1985 – [labels] Controlled manufacturing, controlled distribution. We control the radio…we are passport control for artists. So we have more power,” Stringer said.
Still, Stringer said he wouldn’t mind record companies giving up “passport control” credentials.
“I’m very happy with it,” he said. “I wanted to be an artist partner, I never wanted to be a fat cat smoking a cigar!”global music business
