Rob Stringer, chairman of Sony Music Group and CEO of Sony Music Entertainment, doesn’t give many public interviews.
First of all, unlike his contemporaries at Universal Music Group and Warner Music Group, Stringer doesn’t have to face questions from investment analysts on his quarterly earnings releases.
That’s because, unlike UMG or WMG, Sony Music Group is not directly publicly traded. Instead, it is an important (and increasingly profitable) subsidiary of the Tokyo-based Sony Corporation, which is also home to PlayStation, Sony Pictures, and other key divisions.
But Stringer gave a rare interview to Bloomberg’s Lucas Shaw yesterday (October 10) at the financial publication’s Screentime conference in Los Angeles.
The duo’s wide-ranging conversations have laid the groundwork for what captivates those in the music industry every day.
Topics included Sony’s recent catalog M&A splurge, which saw it purchase rights associated with famous singers including Michael Jackson, Queen and Pink Floyd.
Stringer also discussed the balance of power between artists and labels in the music industry, the role of TikTok, and how much rights holders are paid for use of their music.
You can watch Stringer and Shaw’s discussion below, but we’ve also rounded up four things that particularly stood out from the interview.
Credit: PHLD Luca/Shutterstock
1) The president of Sony Music is Pink Floyd, Queen, boy name Jackson deal… and pointed to ‘experiential’ opportunities for legacy action.
One of the biggest takeaways from Stringer’s interview at Bloomberg’s Screentime conference was confirmation of the company’s recent catalog deals. pink floyd, queenand property boy namejackson.
Earlier this month we reported: pink floyd It agreed to sell its catalog of recorded music to Sony Music in a deal worth approx. 400 million dollarsAccording to sources.
This news comes after Sony completed the acquisition of the career-spanning rights to another legendary band, Queen. 1 billion dollarsEarly this year.
that boy namejackson While selling, First reported Acquired by Sony Music in February 50% Producing Jackson’s catalog of published and recorded masters while engaging in other income streams.
These three deals follow a more than $150 million deal in 2022 for Bob Dylan’s recorded music catalog and a more than $500 million deal in 2021 for master and publishing rights to Bruce Springsteen’s catalog.
Stringer was asked to explain why Sony has been so active in purchasing these catalogs, and why the reported value of the most recent deal (which he has not confirmed) is so high. “I think this music is invaluable when you use the concept of modern art,” Stringer said.
“As far as I know, Pink Floyd has no price,” he added, equating the value of the legendary British band’s catalog to a painting by Pablo Picasso.
“How much can you put on Picasso’s work?” “It’s relative,” he said.
“I think this music is very valuable in terms of modern art.”
Rob Stringer
Stringer also confirmed that Sony “bought the names and likenesses of those two works,” adding that Sony now “owns all the logos.” [and] merchandising,” and pointed to the “experiential potential” and “event potential” that holding NIL rights presents.
Experience events utilizing the appearance and music of superstar artists are very large businesses. Just a few weeks ago we learned the following: ava sailing Virtual experiences in London generated more than $129 million in 2023.
legendary rock band kiss It recently sold its song catalog and likeness rights, including its name, image and face paint design, to music investment firm Pophouse Entertainment (the company behind ABBA Voyage), and there are also plans to launch a virtual concert series with a digital version.
Could we see similar virtual experiences for the likes of Queen, Michael Jackson and Pink Floyd? There is certainly public demand for virtual concerts. 1.1 million Visitors to ABBA Voyage last year.
Stringer also gave some insight into why he believes buying the catalogs of legacy acts like Pink Floyd is a good investment in streaming, noting that “now that Spotify has matured, especially their audience is getting older.” I did it. [in] English Market”.
“So if you look at the dynamics of the market, it means there is a much higher percentage of people listening to older music. “To be honest, I think it’s a foregone conclusion.”
Stringer also pointed out that Sony already has long-standing relationships with “everyone” of the artists it has recently signed to big-money catalog deals, including Bruce Springsteen, Pink Floyd, Michael Jackson, Queen and Bob Dylan.
“We have a lot of artistic understanding and a lot of expertise in the structure of artists’ careers,” he said.
“So they seemed like a good fit. And honestly, I didn’t want those artists to go anywhere else.”
Credit: izzuanroslan/Shutterstock
2) The music rights industry has allowed TikTok to become ‘MTV’.
TikTok’s relationship with the music industry is often harmonious but sometimes fractious.
Claims that music has played a key role in TikTok’s growth have led some in the industry to question whether artists, songwriters and labels are adequately compensated for using their music on the platform.
Earlier this year, Universal Music Group pulled its catalog. TikTokMainly because, in UMG’s words, “TikTok offered to pay artists and songwriters at rates that were only a fraction of the rates paid by similarly positioned major social platforms.”
However, after a three-month licensing standoff, UMG and TikTok have signed a “new multi-dimensional licensing agreement.”
“We allowed them to become MTV, but they shouldn’t have done that. And now we are retreating. “It is not a promotional platform,” he said.
Rob Stringer
In an interview Thursday, Stringer was asked whether TikTok pays Sony Music enough.
“The debate about it is: Did we start with TikTok in the right direction and allow it to become the promotional platform they think it should be,” Stringer said. And it probably was.”
He continued, “They are not like that. [a] Promotion platform. They’re hugely profitable companies and we allowed them to become MTV, but they shouldn’t have. And now we’re backing away from that.”
But TikTok isn’t the only service that Stringer says should cost the music industry more.
He added: “In fact, we need to get paid more from some of our DSP partners. And that’s part of my job. It’s about making sure we get paid and then turning to pay.”
Credit: Shutterstock
3) Eh… Why I’m Glad I Don’t Run a Popular Music Company Like Warner Music Group or Universal Music Group
Elsewhere in the interview, Stringer was asked about the differences between Sony and its rivals Warner and Universal, and whether it would benefit Sony because its competitors, which are publicly traded companies, are required to make public disclosures, including quarterly reports.
Universal Music listed on Amsterdam’s Euronext in October 2021, while Warner Music Group launched its IPO on NASDAQ in 2020.
Sony Music’s parent company, Tokyo-based Sony Corp, is publicly traded and reports results from its music division in its quarterly financial reports, along with results from other divisions, including gaming and photography.
“Is there something I want to do? [quarterly earnings]“, Stringer said, responding to a question about his rivals, adding, “Not particularly.”
Stringer added: “We don’t even release press releases about what we do. I know it can be a little annoying sometimes. [for the media].
“We can sign a huge catalog but we don’t tell anyone officially because the dynamics are not the same.
“Do I want to be in that position? [of running a publicly-traded music company]? No, not really.”
“It’s not a terrible thing to be behind the curtain when you do 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 hard work and you get to know people from other companies,” he said. “I worked with the head of Universal. [Sir Lucian Grainge] And I’ve known him for almost 35 years. It’s a really tough gig. that [tough] “We literally have to report to shareholders and investors and talk about the company every three months.”
Stringer added: “I’m fortunate to be able to hold investor analysis meetings twice a year and contribute to Sony’s quarterly reports, but there’s a little more left.
I think [being] Being behind the curtain when you do your job isn’t terrible. The artists are in front of the curtain. Talent is in front of the curtain. And I think [a music company CEO] “Sometimes it’s better to be behind the curtain.”
4) Power balance between artists and record labels
Stringer also argued that in the age of digital music, “artists have at least equal power, if not greater power, over us, because we are part of the whole picture.”
The “big picture” includes “live, merch, branding… there are a lot of very lucrative streams in the music business right now, and we are one piece,” Stringer said.
But of course that wasn’t always the case.
“When I started – I started in 1985 – [labels] Controlled manufacturing, controlled distribution. We controlled the radio. We acted as passport control for artists. So we have a lot more power,” Stringer said.
Still, Stringer says he doesn’t care that record companies have given up their “passport control” credentials.
“I felt very comfortable with that,” he said. “I wanted to be an artist partner. I didn’t want to be a smoking fat cat!”worldwide music business
