Warner Music Brazil has invested in Sua Música Group, which claims to personal the biggest leisure platform centered on regional music in Brazil.
In keeping with a press launch, this funding will see Warner Music companion with Sua Música and “combin[e] their efforts to develop regional artists and songwriters”.
The worth of the funding has not been disclosed, however MBW understands that Warner Music has acquired a minority stake within the firm.
In 2021, Sua Música was reported to be elevating R$50 million (approx USD $9m) at a R$200 million ($36m) valuation with a view to scale the corporate.
With a sole give attention to native content material and unbiased artists, Brazil-based Sua Música counts 16,000 verified artists and round 9 million month-to-month energetic customers on its UGC music platform.
It competes with the likes of Spotify available in the market and has beforehand been known as “the Brazilian SoundCloud’ because of the similarities between the 2 corporations’ enterprise fashions.
Sua Música additionally runs a providers enterprise, which operates throughout digital distribution, artist administration and publishing.
As a DIY distributor, the corporate already works with and handles royalty administration for greater than 1,000 unbiased artists throughout Brazil, together with Tarcísio do Acordeon, Vitor Fernandes, Thiago Aquino, Heitor Costa, Japãozin, Evoney Fernandes.
Warner mentioned that the partnership will enable Sua Música Group to give attention to increasing its operations throughout Brazil, beginning with “growing a management function for its music platform within the Northeast and selling [distribution service] Sua Música Digital”.
In keeping with Sua Música CEO Roni Maltz Bin, the corporate’s “purpose is to strengthen the Sua Música Group as a whole options hub for artists, intensifying our idea of a one-stop-shop for music: distributor, writer, app, and far more”.
Warner mentioned in a press launch on Wednesday (July 17) that Sua Música “will probably be a major companion” for its technique of “increasing presence in all areas of the Brazilian market, boosting its authority in regional music, native partnerships, and sharing experience in discovering new voices to create the catalogs of the longer term”.
Warner confirmed in March that it was contemplating making a bid for Paris-headquartered digital music firm Consider, however on April 6, it introduced that it had determined not to pursue an acquisition bid for the corporate.
On WMG’s earnings name in Could, the corporate’s management workforce mentioned it might proceed to pursue additional M&A alternatives.
“It’s our job to survey the market. And if there [are] alternatives that can speed up our initiatives, we’ll take these,” mentioned WMG’s CFO, Bryan Castellani.
Warner’s funding in unbiased artist-focused Sua Música follows yesterday’s (July 16) information from market monitor Luminate that the worldwide ‘center class’ of artists is rising bigger.
In keeping with Luminate’s Midyear report, in H1 2024, there have been 29,253 artists who clocked between 1 million and 10 million on-demand audio streams, a rise of 5.1% from the identical interval a yr earlier.
“The mix of Sua Música’s vital presence in regional music with our nationwide attain and world community will amplify the efforts of each corporations and provide artists new artistic and industrial prospects and alternatives.”
Leila Oliveira, President, Warner Music Brazil
Leila Oliveira, President of Warner Music Brazil, mentioned: “This can be a essential milestone for us as cultural enablers.
“The mix of Sua Música’s vital presence in regional music with our nationwide attain and world community will amplify the efforts of each corporations and provide artists new artistic and industrial prospects and alternatives.”
“This partnership consolidates our presence in Brazil’s Northeast and opens house for the expansion of regional genres worldwide.”
João Alquéres, ADA Brazil
João Alquéres, Common Director, ADA Brazil, added: “This partnership consolidates our presence in Brazil’s Northeast and opens house for the expansion of regional genres worldwide.
“As we’ve bolstered with our companions, Warner Music can provide a wide range of options for artists and songwriters at completely different phases of their careers.
“Working along with Sua Música demonstrates our capacity to function in varied musical genres and completely different areas of Brazil.”
“Our Purpose is to strengthen the Sua Música Group as a whole options hub for artists, intensifying our idea of a one-stop-shop for music: distributor, writer, app, and far more.”
Roni Maltz Bin, Sua Música
Roni Maltz Bin, CEO, Sua Música, added: “The announcement of the funding involves crown and corroborate a superb second for the Sua Música Group within the Brazilian market.
“We’re very happy with this necessary transfer. Because the firm’s creation, we’ve all the time grown with our personal capital, and this funding will undoubtedly be very related to additional speed up all our enterprise fronts. Warner Music acknowledged the total potential of our technique, and we will definitely be part of forces to develop extra quickly within the nationwide market.”
He added: “Our principal mission is to develop, amplify, and join the music universe. Our purpose is to strengthen the Sua Música Group as a whole options hub for artists, intensifying our idea of a one-stop-shop for music: distributor, writer, app, and far more. And it doesn’t cease there! We’re additionally accelerating our music manufacturing entrance with studios throughout Brazil.
“We have already got Sua Música Area in Fortaleza, which is the biggest content material manufacturing hub within the Northeast; one other studio in Campina Grande; and we’ll quickly open a 3rd in São Paulo. We’re additionally evaluating extra cities to increase our presence in Brazil and Latin America this yr.”Music Enterprise Worldwide
