Alvaro G. Velilla

Financial Times (FT) has forged a groundbreaking partnership with OpenAI . This collaboration signifies more than a mere business deal—its a pivotal shift in how we value and compensate content in the AI era. OpenAI will integrate FT's journalistic excellence into its language models, respecting attribution and compensating FT for its contribution This collaboration sets a precedent for publishers seeking fair compensation for the use of their content by AI platforms. It a shift towards a more sustainable model—one that recognizes and rewards the creators fueling the AI ecosystem. As we move forward, similar partnerships are likely to emerge, empowering content creators within the AI value chain. Can we expect video publishers to be striking similar deals in the future? There is already a growing demand for high-quality video content to train AI models. Video publishers, like their counterparts in written content, will likely seek compensation and recognition for the use of their content in AI applications. This potentially can become another addition to the evolving landscape of content monetization and creator compensation in the digital age. https://lnkd.in/gvh7Upzp

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As Bloomberg points out, private equity has shown growing interest in the live entertainment industry over the past decade. For many years, the industry was considered too unpredictable for investors. I support the involvement of private equity in our industry. Those heavily invested in the live entertainment sector will benefit from the guidance of individuals who can offer leadership and a deep understanding of this highly nuanced industry. #liveentertainment #privateequity

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Everyone in the games monetization industry should read Fernando Pernica's PocketGamer.biz article on monetization in a post-ATT world. His take: the problem isn’t the loss of device ID signals, it’s the industry has been so addicted to these signals that the change is way more painful and time-consuming than it should have been. In a recent games industry panel I said the same thing far less eloquently, and far more Kristanly: Third party data and advertising IDs have basically already disappeared. The head-buyring-in-the-sand masses of the advertising and monetization industries just haven't accepted it yet. Successful games companies will already be embracing this new world. Privacy is a feature, not something to work around.  https://lnkd.in/dQmdtTqr

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“Sony Music Entertainment is set to acquire the catalog of legendary rock band Queen in a landmark deal worth GBP £1 billion (USD $1.27 billion at current exchange rates). That’s according to Hits, which reported on Wednesday (June 19), citing sources, that Sony Music has emerged as the winning buyer for Queen’s recording and publishing rights, as well as royalties from previous deals with Disney Music Group and Universal Music Group. Disney owns the band’s recorded music catalog in North America, while UMG has a global distribution agreement with Disney. Separately, Queen band members Brian May, Roger Taylor, and John Deacon – plus the Freddie Mercury estate – each own equal shares in the company Queen Productions Ltd, which owns the group’s recording catalog outside the US and Canada, Music Business Worldwide noted in a report last year. UMG, as Disney’s distributor, will reportedly retain distribution rights in North America, although Sony will receive the royalties. UMG’s worldwide distribution rights will then transfer to Sony in 2026 or 2027, making Sony Music the sole distributor and owner of all Queen content globally, Hits explained. The deal also reportedly includes name and likeness rights, opening doors for merchandise and other ventures. Meanwhile, Queen’s founding members, May and Taylor, who continue to tour with vocalist Adam Lambert, will reportedly retain control of revenue from live performances.” Read the full article for more: #Queen #SonyMusic #UMG #DisneyMusicGroup #UniversalMusicGroup #Music #MusicBusiness #Musica #MusicIndustry #Musique #Musik #MusicBiz #Creators #Artists

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Billion-dollar PE buyouts are ramping, just see today's Squarespace news. Investors in media x agency deals should pay attention... Global deal activity is up 24% for 2024 YTD, with a total deal volume of $726B. Could be the beginning of a cyclical M&A rally, since deal volume was super depressed over the past couple years... ...and investors need to put money to work! Below are some recent public-to-private highlights, including a large media co deal where I did a deep analysis 👇 May 13 • Permira buying website builder Squarespace • Went public in 2021, closed 1st trading day at $5.9B valuation • $6.6 billion May 6 • EQT Group buying US digital consultancy Perficient • EQT also backs UTA, which has grown through M&A • $3 billion April 2 • Silver Lake buying diversified media co Endeavor • WME / UFC parent co TKO Global will stay public • $13 billion April 1 • Advent International buying payments processor Nuvei • Nuvie backed by celeb Ryan Reynolds • $6.3 billion Similarities across these recent deals include... - founder / CEOs staying on post deal - belief that targets are undervalued in public mkts - desire for more flexibility to grow, do M&A, and drive ent value for new owners That last point is key, as I think there's a strong desire to grow through M&A in a market where there are many sellers who can get picked up at good/fair prices VS the crazyness of 2020/2021. This is timely because... Last month I wrote about public-to-private deal dynamics in my Silver Lake / Endeavor analysis, check it out here --> https://lnkd.in/gtprBx7U I'm also working on an active client deal with similar characteristics, and it's important to know where capital is flowing, and why. Are you all seeing a similar trend?? -- I'm the founder of RockWater Industries. We do M&A and strategy advisory for media, agencies, and creator economy. My DMs are open. #media #agency #creatoreconomy

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Global on-demand audio streams surged by 15.1% to a staggering 2.3 trillion in the first half of 2024, marking a significant uptick in the music streaming industry. Within this total, U.S. streams accounted for 665.8 billion, showcasing an 8% year-over-year increase. Interestingly, the U.S. streams represent less than 30% of the worldwide total, signaling accelerated growth in international markets. This rapid expansion is not only reshaping the industry but also driving music content IP revenue upwards. #MusicStreaming #MusicIndustryGrowth

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A class action lawsuit claims SiriusXM misleads consumers by adding a "US Music Royalty" fee to its advertised subscription prices, increasing costs by 21.4%. The suit argues that no other music services charge separate royalty fees and that these should be included in the advertised prices. This fee, shown as "plus fees and taxes," adds $5.13 to the $23.99 Sirius Platinum plan, generating significant revenue. Plaintiffs contend the fee is a core business expense misrepresented as a government-mandated charge. They seek to include this fee in advertised prices and seek over $5 million in damages. Similar lawsuits are ongoing in Oregon and New York. https://lnkd.in/g_Wxf_Cn #SiriusXM #musicbusiness #musicindustry

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I recently had the opportunity to sit down with Net Influencer to discuss the creator economy's rapid growth, the expansion of 456 Growth (456 Growth Media and 456 Growth Talent); 25th Hour Social, and my predictions for the industry's future. Here are a few impactful insights from the interview that my partners Robert Bocchicchio, and Austin Cohen Esq., and the entire team at 456 Growth feel strongly about. Leveraging Data and Testing to Stay Ahead of Trends For us at 456 Growth, the key to staying ahead in the creator economy is a relentless focus on data, testing, and identifying new opportunities before they become industry norms. “You work for a big agency, and you have red tape that slows you down,” I said. “But overnight, snap your fingers—something could collapse. But also, an opportunity pops up.” 456 Growth’s agile, service-based approach involves “continuous testing, evaluation, and scaling” across its creator management and brand media divisions. According to our co-founder, some partners are eager to be on the cutting edge, while others prefer to see consistent results before adopting new strategies. “The brands that tested, even in a down economy, dominate because they didn’t lose their competitive advantage,” I explained. “The brands that tested early with things like whitelisting or Instagram Stories crushed it and built massive pyramids of creators driving 6 or 9-figure returns.” Moving from a “data-last” to a “data-first” perspective allows partnerships to be structured in a way that unlocks their full potential over the long term. With full visibility into both sides of the brand/creator relationship, 456 Growth can serve as an effective matchmaker. https://lnkd.in/e8Q6qej4 📊 #CreatorEconomy #DataDriven #InfluencerMarketing #456Growth #IndustryInsights #DigitalMarketing #Innovation #NetInfluencer #ContentCreation

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Do not miss my latest article in OTTVerse on the the global growth of sports viewing on FAST/AVOD and how the consumption of sports content has undergone significant transformation!

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The UPROXX newco is a smart media M&A rollup. Music and culture focus + a strong leadership team. I'm bullish on them doing well by *brands and fans*, and getting immediate revenue traction based on their WMG YouTube media sales partnership. In my newsletter tomorrow, I explain my insights on the deal, key questions I'm asking, why I think UPROXX STUDIOS is setup for success. For now, let's review the key deal details... UPROXX STUDIOS OVERVIEW • A new “brand solutions studio” that “connects brands with talent, cultural arenas, and audiences”  • Founded by media veterans Jarret Myer (CEO), Rich Antoniello (Exec Chairman), and will.i.am (Chief Visionary Officer) • Result of acquisitions of Uproxx, HipHopDX, Dime Magazine, and other Warner Music Group media assets • Reaches 170M+ monthly US visitors and generates 12B+ monthly US video views POST DEAL OPS • “Expect significant investments in our brands, team, and the experiences we offer” • Includes the excl license to represent WMG’s YouTube inventory for all US media sales  • Will integrate will.i.am’s FYI AI tech and FYI radio into ops UPROXX DIVISIONS • Uproxx – Millennial-focused culture media brand and production co (acquired by WMG in 2018) • HipHopDX – Digital mag of hip hop music criticism and news (acquired by WMG in 2020) • Dime Magazine – Digital mag of American basketball lifestyle (acquired by Uproxx in 2015) • FYI – productivity tool designed to serve Creatives. Combines messaging and collab tools with file mgmt and content pub features NEWCO VALUE PROP  • Access to A-list stars via WMG YouTube inventory + UPROXX superfan communities gives brands and advertisers new ways to participate in music culture • FYI AI tech will enable creation of AI StoryLabs, a new branded content and social media mgmt unit within UPROXX Studios  • "Merging the agility and freedom of an independent entity with the reach and resources of a major music label.” UPROXX HISTORY • f/k/a as Uproxx • Founded 2008 by Jarrett Meyer and Brian Bater (also co-founded Rawkus Records in 1996) • Acquired by male-focused media ad network Woven Digital in 2015 • Rebranded to Uproxx Media, Jarrett became GM • Bought by WMG in 2018 • Price undisclosed, but previous Uproxx Media investment was ~$43M • Value prop of acquisition was to “create engaging new experiences for young consumers, global promotional possibilities for brands, and innovative marketing opportunities for artists” • WMG exec Max Lousada and Uproxx co-founder Jarrett Myer used to work together at Rawkus Records WMG RELATED HISTORY • Announced 600 layoffs in Feb 2024, incl potential sale of Uproxx and HipHopDX • Also wound down its podcasting brand Interval Presents and social media publisher IMGN • Overall faced challenges in its O&O and digital brand sales biz -- I'm the founder of RockWater Industries. We do M&A and strategy advisory for media, agencies, and creator economy. My DMs are open.

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“It’s official: Blackstone is about to become the new owner of Hipgnosis Songs Fund. Blackstone’s USD $1.584 billion bid for the UK-listed music company yesterday (July 8) won overwhelming approval amongst HSF shareholders who voted at a Court Meeting and General Meeting. The process saw 99.97% of the Scheme Shares voted by HSF shareholders approve the Blackstone deal. Blackstone needed at least 75% of voting shares to get the deal over the line.” “The financial press last month speculated that certain hedge funds — who held enough HSF stock to prevent Blackstone from reaching the 75% threshold — might effectively ‘block’ the sale. In the end, that didn’t come to pass. According to the FT, hedge funds that owned shares in Hipgnosis Songs Fund included TIG, with a 14% stake; Glazer Capital, with around 8%; Kryger Capital, with 6.6%; and Sand Grove Capital Management, with around 6%.” Read the full article for more: #Hipgnosis #HSF #Blackstone #HipgnosisSongsFund #HSA #HipgnosisSongsAssets #Songs #MusicPublishing #Music #MusicBusiness #Musica #MusicIndustry #Musique #Musik #MusicBiz #Creators #Songwriters

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Can't help but feel this is the end of an era in music copyright acquisition. You can draw a direct line: - Streaming launches globally (2010) - Streaming grows, raising the value of music copyrights (2014-2017) - Financial markets are all of a sudden interested in music as an investment vehicle + Hipgnosis forms to take advantage (2018) - Dozens of Hipgnosis imitators form (including consumer options), artists sell their IP and get *PAID* (2018-2023) - The bubble bursts: Most of the valuable IP is now spoken for, streaming growth slows, interest rates rise, the market cools, Hipgnosis is valued less than half at its height. Gets acquired. This certainly isn't the end of music as an investment product, nor does it mean the big banks & PE firms are out of music. But maybe it's a sign the feverish era of this is. #musicindustry #musicbusiness #musicfinance

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Rule of thumb is always to follow the money.

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🚀 Reimagining Hollywood: The Tech Revolution Blueprint 🌟 In the dynamic world of media and entertainment, advancing technology and branded entertainment are transformative pursuits. This week’s PlayStation State of Play highlighted fascinating insights. Games as a Fountain of New IP: The gaming industry continues to create innovative IPs that captivate and inspire. Sony’s focus on live service games points to a future where games blend seamlessly with film and TV, showcasing great business models. Branded Entertainment: Major players like Amazon, Nike, and Coca-Cola are pushing into branded entertainment, following the example of Original Film. SEGA saw a 10x sales jump from its first movie and 20% YOY growth after that. Innovation Meets Purpose: At the heart of these advancements lies our goal to create meaningful and immersive experiences. The convergence of technology and storytelling redefines entertainment. A Collective Effort: Visionary leadership and collaboration drive change and fuel innovation. Great people are coming together to push boundaries and lead the way, embracing intelligence, technology, and market dynamics. The Future Our civilization was built on a spirit of discovery, of exploration, of industrialization. Where are we going? What world are we building for our children and their children, and their children? A world of fear, guilt, and resentment? Or a world of ambition, abundance, and adventure? In the words of David Deutsch: "We have a duty to be optimistic. Because the future is open, not predetermined and therefore cannot just be accepted: we are all responsible for what it holds. Thus it is our duty to fight for a better world." It’s time to build. 📣 The revolution is here, and it's just beginning! 🚀 #TechRevolution #Innovation #TechLeaders #EntertainmentRevolution #NewLeadership #TechInMedia #FutureOfEntertainment #PioneersOfTechnology

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Indeed and more details on the topic can be found here: "The Rise of Digitally Connected Products" by Amyli McDaniel and her team at MINTangible

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Merger between Paramount and Skydance 🤝🏻 The recently announced merger between Paramount Pictures and Skydance redefines the changing media landscape. The goal is to position this new giant, with an enterprise value of $28 billion, as a "tech hybrid," able to transition to meet the demands of an increasingly technology and capital-intensive market. The resulting company will combine Paramount's IP, production capabilities, broadcast and cable television networks, and streaming service Paramount+ with 71 million users worldwide, with Skydance's financial strength contributing an additional $1.5 billion to the new balance sheet. Paramount has shed nearly $17 billion in value since late 2019, as its traditional television business has eroded faster than its Paramount+ streaming service could turn a profit. This new deal will result in efficiencies estimated to produce $2 billion in run-rate savings, half of it in the first year. Following the resignation of former CEO Bob Bakish, David Ellison, the 41-year-old tech scion who founded Skydance, will become chairman and chief executive of the new Paramount. Jeff Shell, former chief executive of NBCUniversal will be its new president. This new deal will equip the historic Hollywood studio, founded in 1912, with the needed fuel to keep up with the investment in the best original content. 📺🎬🍿🚀 #Entertainment #Merger #Paramount #Streaming #Hollywood

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Over the past few weeks, we've been in the news. For good reasons. We've recently acquired several companies, the latest being Galleri5. This company stands out as a pioneer in AI-powered content solutions and influencer marketing technology. Before you accuse us of being hypnotised to the beats of the AI hype, I want to shed some light on our strategy. We've been expanding our family with exceptionally talented companies for a clear purpose. In recent months, we acquired Terribly Tiny Tales, a text-focused flash fiction platform, and in September 2023, we welcomed Under 25 Universe, India's largest tech-powered student community. Our joint venture with the M19 Collective aims to develop IPs across branded content, offline experiences, and both fiction and non-fiction formats for multiple platforms. Additionally, our Collective Creative Labs initiative assists brands in connecting with customers through pop culture, thereby building brand loyalty. Also, our partnership with Gruhas for to form GCCF focuses on investing in consumer-facing brands and products. When you consider these together built on top of our talent management core, a pattern emerges. We're investing heavily in technology to empower India's young, creative core and our talent ecosystem by providing them with a platform to flourish. Our goal is to drive more impactful, personalised storytelling and predict trends before they happen. Creativity and inspiration are at the heart of what our talent does, and technology will be a powerful tool to amplify their abilities. At Collective Artists Network, we're committed to identifying and supporting the best talent in the country. In this pursuit, technology will be a fundamental pillar of our company's future. Supremely proud to have Rahul Regulapati and his entire gang at galleri5 on board this journey to partner with us in our vision and here’s to building and building and building and scaling :-) The army grows . https://lnkd.in/dBGyQ6NH

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Spotify's Q2 earnings are the talk of the media world today. With gross profit up 29.2% YoY, 7 million subscribers added, and continued ad-supported revenue growth, it's no wonder the stock is up ≈13% as of writing this (and the highest since early '21). Most importantly, we now see a right-sized company that has figured out a way towards sustained profitability, which didn't look so obvious a few quarters ago. They were able to increase subscription fees, add subscribers, and continue to lean into revenue opportunities that offset music licensing fees, such as podcasts and audiobooks. Podcasts: Now, the bummer is that we didn't learn much about the podcast side of the business, except that ad revenue continues to grow. However, they continue to see podcasting as a great source of profitability (only a bummer because I want to see exactly how well it's doing, but great for the industry). Licensing of Pods: We also learned that licensing of content & wide distribution is paying off, which obviously provided more impressions and ad revenue for Q2. As you may remember, we predicted major platforms would lean into licensing content in early January. The funny thing is that this is the prediction that got the most pushback! A handful of astute investors and industry people told me I was wrong, Spotify was pulling back, yada yada yada. As the great Swedish rock band The Hives sang, "I hate to say I told you so," but as an industry, we need to scream our wins as loud as possible. (Of course, I had to nod to a Swedish band. Also, they are amazing live). https://lnkd.in/eQbw3NDc Video: Spotify now has over 250,000 video podcasts; over 170 million have watched a podcast on the platform. So, uh, let's watch this space. And stop asking if every podcast needs video. The answer is very clear.. Yes, you need a video strategy. Audiobooks: I remain highly bullish on Spotify's opportunity with Audiobooks. They are the clear favorite to be the first Audio Super App, which would allow them to charge a bit more while offering the full digital audio experience to users—capitalizing on the growing movement of broadcast radio listeners and book readers to digital audio. Audible is more vulnerable than I think they realize. All said it was a great quarter for Spotify... and the entire audio industry. I'll be back next week when SiriusXM announces its earnings. https://lnkd.in/efHFZide -- I'm the founder of DWNLOAD Media, a fund that invests in the audio space. If you'd like to learn why now is the time to invest in podcasting, DM me! I'll also recap all of the Q2 earnings via email. Sign up: https://lnkd.in/eysH5x5C Read the Q1 Recap: https://lnkd.in/etkGMXa7 Read the 2024 Outlook: https://lnkd.in/eW9nPCZQ #Spotify #SPOT #audio #podcasting #podcasts #music #audiobooks #investing

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Range Media Partners just raised big $$ from Liberty Global, Wildcat Capital Management. It's an M&A warchest so they don’t fall behind their peers.  Let’s break it down… BACKGROUND ON RANGE • Mgmt and prod co founded in 2020 by Peter Micelli and other top agents from CAA / WME / UTA • Goal = extend beyond trad film / TV representation • Has expanded into music, sports, gaming, digital, music pub M&A + CAP MARKETS HISTORY • Merged with film / TV prod co Automatik in Jan 2023 • Bought upstart athlete mgmt co Stoked Management Group in Sep 2023 • Existing investors incl Steve Cohen’s Point72 Ventures and A+E Networks (also has prod deal) NEW INVESTMENT • Last week closed significant minority investment by John Malone’s Liberty Global, TPG founder’s Wildcat Capital, and family entertainment co Playground Productions • Former CAA film finance exec Rick Hess, and The Forest Road Company were also involved (either as investors or advisors, can’t tell exactly from press release) • Use of Funds: M&A, scale in US, int’l growth, add more talent rep and prod services What you need to know about this deal 👇... It's not surprising when you consider all the other fundraising and M&A amongst Range’s peers in talent representation.  The influx of capital and high dealmaking volume is driven by a belief that outsized returns will go to rep firms who are fastest to scale, in a winner-take-most market. Because scale makes it easier to sign more talent clients, work with the largest brand marketers, hire the best talent agents and managers, package up the largest Hollywood projects, and launch the most exciting new talent-led ventures. Particularly in a world where scaled access to audience (which talent and influencers bring in a post ATT world) is the top driver in capturing share of high-growth IM spend, which is est at $7B in 2024, up 15% YoY. So it’s a race to the top. And that race is being fueled by large M&A war chests from big investor backers… Companies to watch here are: - Crestview-backed Gersh (just bought A3’s digital team) - Coral Tree-backed Loaded (just bought GG Talent) - Providence-backed Wasserman (13 deals in 2 years) - TCG-backed Night (just bought LFM and Roost Podcast Network) - The big 3: CAA, UTA, Endeavor And after last week, I expect Range Media to ramp up its acquisition activity. Particularly in athlete and digital-native representation. Curious to see what they do next with the $$. Will definitely add them to our buyers list as we bring more deals to market. —- I’m the founder of RockWater Industries. We do M&A and strategy advisory for media, agencies, and creator economy. My DMs are open. #media #agency #creatoreconomy

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