Common Music CEO Lucian Grainge issued his annual memo to employees for 2024 on Tuesday, making notice of the music firm’s world and revolutionary advances all through the final 12 months. Grainge heralded UMG’s monetary and “aggressive” efficiency metrics, together with the corporate’s effectivity in making use of reworked, “artist-centric” royalty fashions.

In regards to the firm’s partnership with streaming platforms, together with Deezer, Grainge mentioned he anticipates extra platforms shall be adopting their method to compensate artists and disincentivize fraud for a “extra equitable and extra vibrant music ecosystem that rewards all artists—be they main, indie or DIY—in any respect levels of their careers.” He equally lauded the corporate’s launch of its Accountable AI initiative this 12 months which set the primary layer of regulation for synthetic intelligence in music.

“Within the U.S., for instance we’re lobbying for laws that may set up a federal proper of publicity to harmonize the protections of artists’ picture, likeness and voice from AI deepfakes,” Grainge writes. Apart from requesting support from the USA Congress in July to fight copyright infringement by folks utilizing and creating new AI know-how, UMG additionally launched private-sector partnerships with AI know-how firms and a partnership with YouTube to permit UMG artists to leverage AI instruments.

Trying forward, Grainge hopes to proceed increasing UMG’s presence and rosters globally, tapping into “established music markets: signing and creating native artists; offering native labels and entrepreneurs with world promotion, distribution, and a full suite of artist companies; and buying native labels, catalogs and artist companies companies.” Learn Grainge’s full memo to employees under:

Expensive Colleagues,

Joyful New 12 months!  I wish to specific my deepest gratitude to each one among you for your whole onerous work and in addition to take a couple of moments to assessment with you a few of the highlights of 2023 and preview a few of what’s to return in 2024.

As soon as once more, 2023 noticed Common Music lead the {industry} in all main monetary and aggressive efficiency metrics, on the similar time our artists broke information and topped the charts all over the world.  To place it succinctly: UMG is probably the most profitable firm within the historical past of the music {industry} and each one among us ought to be enormously happy with what we’ve got completed collectively, not to mention what I do know we’ll accomplish going ahead.

In actual fact, even past our artists’ extraordinary achievements and our monetary outcomes, there was a lot extra to be happy with this 12 months.   

By the start of 2023, it had turn into apparent that if the {industry} had been to proceed to thrive and the worth of our artists’ work revered, quite a lot of critically necessary points must be confronted.  Because the {industry} chief we had a transparent imaginative and prescient of how one can handle these points.  After which we went out and took daring steps to show that imaginative and prescient into actuality.

Final January, for instance, I wrote to you concerning the streaming royalty mannequin.  A brand new mannequin was wanted, one that may correctly reward the artist-fan relationship and disincentivize fraud and gaming the system.  As a result of artists are on the middle of all the things we do, we known as it the “Artist-Centric Mannequin.”  

I’m proud to say that in only a matter of months, a number of world platforms, together with the world’s largest music platform, have already adopted artist-centric rules that may rework the best way artists are compensated for his or her work.  Within the coming months, I consider you will note extra platforms adopting these rules.  Why? As a result of it’s the proper factor to do each for artists and for the broader music ecosystem. As this new mannequin turns into widespread, the impression shall be profound: a more healthy, extra equitable and extra vibrant music ecosystem that rewards all artists—be they main, indie or DIY—in any respect levels of their careers.  

In the identical manner, we confirmed the {industry} the best way ahead when it got here to confronting the challenges and alternatives of AI.

Early on in 2023, many “specialists” seen AI as a looming risk.  Our view?  Simply as we had accomplished with so many different earlier proclamations of doom, we rejected that short-sighted appraisal.  Quite the opposite, we noticed AI as presenting alternatives.  After which, simply as we did with streaming, we went out to show these alternatives into actuality.

We launched our Accountable AI initiative this 12 months with two objectives in thoughts.  First, to foyer for “guardrails,” that’s public insurance policies setting primary guidelines for AI.  Within the U.S., for instance we’re lobbying for laws that may set up a federal proper of publicity to harmonize the protections of artists’ picture, likeness and voice from AI deepfakes.  We had been the primary music firm to name upon the U.S. Congress to guard artists in opposition to unethical makes use of of AI.

Our second objective was to forge groundbreaking private-sector partnerships with AI know-how firms.  Up to now, new and infrequently disruptive know-how was merely launched into the world, leaving the music neighborhood to develop the mannequin by which artists could be pretty compensated and their rights protected.  In a pointy break with that previous, we shaped a historic relationship with our longtime accomplice, YouTube, that provides artists a seat on the desk earlier than any product goes to market, together with serving to to form AI merchandise’ improvement and a path to monetization.

As a result of we basically consider the easiest way to make sure accountable AI improvement is thru partnership and market-led options, along with YouTube, we’re collaborating with a number of platforms on quite a few alternatives and approaches—at all times with artists on the forefront of our considering.  As well as, our artists have begun working with a few of the newest AI know-how to develop instruments that may improve and assist the inventive course of and produce music experiences not like something that’s been heard earlier than.  And to leverage AI know-how that may profit artists, we proceed to strike groundbreaking agreements with, amongst others, Endel and BandLab.

We additionally superior our initiatives in areas from well being and wellness to sustainability and the setting.

The intersection of music and well being is one other thrilling space about which I’m particularly passionate.  We’ve all had experiences by which music modified our temper or comforted us in occasions of emotional disaster, and even helped us bodily.  In actual fact, it’s one of many the reason why so many people have chosen to spend our careers in music. I’ve lengthy needed the highly effective relationship between music and well being to be greater than a handful of subjective observations and anecdotes in order that it might turn into a key element of our technique.

Constructing upon our success in creating a sturdy business class in health, we’re now main the {industry} in music and well being.  In September, we produced the first-ever Music + Well being Summit the place we introduced our artists along with well being entrepreneurs and main neuroscientists to advance this new class.  This got here on the heels of us getting into right into a collection of greater than 40 license agreements to amplify the probabilities on this house.  For instance, we’re pioneering a brand new class that we name “prescription music,” an evidence-based well being approach constructed on scientific and medical analysis.  What excites me is that it’s cost-effective, non-invasive and drives really helpful outcomes.  Whereas it’s a subject nonetheless in its infancy, this space will turn into an more and more necessary element of our technique. 

In the identical spirit of selling optimistic change in society, our staff additionally completed superb issues.  All through 2023, our All Collectively Now Basis, Job Pressure for Significant Change, Inexperienced Workforce, Unhoused Coalition, and Worker Matching Program contributed to greater than 500 organizations all over the world, and supported over 1.2 million meals for these in want. 

Furthermore, within the greater than three years since we established a groundbreaking relationship with the non-profit Music Well being Alliance (MHA), 500 UMG and UMPG recording artists, songwriters and their households within the U.S. have acquired life-changing medical care.  With this 12 months’s dramatic leap within the want for psychological well being care throughout the artist and songwriter neighborhood, the MHA partnership considerably elevated its assist in that space. 

Our efforts to maneuver the {industry} on points regarding sustainability and the setting led UMG and Bravado to host the primary music {industry} sustainability summits in L.A., London, and New York.  The collection introduced collectively {industry} leaders and innovators who made commitments to institute sustainable options throughout a variety of classes together with occasions, merchandise, touring and extra.  We co-founded the Music Trade Local weather Collective, the brand new music {industry} alliance to deal with world local weather change.  And we grew to become the primary standalone main music firm to win the approval of its greenhouse fuel emission discount targets by the Science Based mostly Targets initiative, the gold customary for establishing company local weather objectives.

All of those initiatives are in fact finally powered by the success of our artists and songwriters and the assist that our staff all over the world present them.  So let’s flip to the achievements of our artists and songwriters which had been nothing wanting astounding in 2023.  Listed here are only a few examples.

Globally in 2023, UMG had:

And to interrupt it down by area:

Our Common Music Publishing Group songwriters additionally carried out spectacularly:  

In complete, a spectacular efficiency.  We should always all be so happy with our artists and songwriters and the work we do to convey their music to the world.

In 2023, we additionally continued our technique to increase our presence in excessive development markets all over the world—each by the energy of our firms in these areas in addition to the growth of Virgin Music Group.  

We acquired Chabaka Music, a number one MENA-based firm, in addition to a majority stake in RS Group in Thailand.  

In India we strengthened our place domestically with an unique partnership with Characterize, a number one administration firm.  

In China we signed new long-term agreements with celebrity Eason Chan and with 2022’s No. 1 IFPI world album vendor Jay Chou, that features his JVR Music label.  

Seeking to 2024, each the tempo of change and our {industry} management will improve considerably.  We’ll be shifting rapidly and meaningfully on many various fronts.

Our pioneering artist-centric technique will lengthen its attain.  We first centered on a fairer strategy to allocate the streaming pie amongst actual artists by addressing fraud and different elements that deprive artists of their simply compensation. The following focus of our technique shall be to develop the pie for all artists, by strengthening the artist-fan relationship by superfan experiences and merchandise. We’re already in superior discussions with our platform companions concerning this section and may have extra to announce within the coming months.  As well as, we shall be constructing our inhouse capabilities by groundbreaking partnerships that may speed up our artists’ capacity to create experiential, commerce and content material choices for his or her followers.  Briefly, we’re creating the blueprint for the labels of the longer term.

As for AI, we’ll proceed constructing alternative for our artists, whereas additionally main the struggle to guard them from unethical makes use of of this know-how.  And all all over the world, we’ll proceed to prioritize and struggle for insurance policies within the service of artistry—not on the expense of it.  We additionally anticipate to announce extra real-world business functions for artist-driven, moral AI.

We are going to continue to grow our presence all over the world by doing simply what we do in additional established music markets:  signing and creating native artists; offering native labels and entrepreneurs with world promotion, distribution, and a full suite of artist companies; and buying native labels, catalogs, and artist companies companies.

As , over the previous a number of years, we’ve got been investing in future development, not simply increasing geographically and leveraging new applied sciences, however constructing our e-commerce and D2C operations.  In 2024, as we proceed our industry-leading investments in A&R and artist improvement, we’ll additional evolve our organizational construction to create efficiencies in different areas of the enterprise, so we will stay nimble and attentive to alternatives as they come up, whereas additionally taking benefit ofthe advantages of our scale.

Within the face of a lot change and alternative, standing nonetheless is rarely an choice.  

We should proceed to struggle for our artists and songwriters and get up for the inventive and business worth of music.

Our imaginative and prescient of the longer term is full of prospects, and performing on our technique will make these prospects actual—for our artists, our staff, our shareholders and all the music ecosystem.  

I promise 2024 shall be an especially thrilling and transformative 12 months for our firm.

Lucian