00:00You can't really pretend to be a global music company not being significant enough in the number one market in
00:05the world.
00:05We build a number one, two, or three position in 12 to 13 markets in the top 20 markets in
00:11the world.
00:18Our market share globally in digital music is close to 10%,
00:21which means that when we are talking about doing specific things,
00:26they translate in tens of millions of dollars of value.
00:29We are now number one, two, number three player in Asia.
00:33We're now number one, two, three players across Europe and the Middle East.
00:37Now is the right time for us to start looking at North America.
00:51Just to give you a sense, when we started in 2005,
00:55the belief was, I think, the belief name and the belief first was we want to sign new artists
01:02and we want to provide access and the market would create an opportunity for some of these artists to develop.
01:08So it was really artists first and the belief that in a technological world,
01:14technology could democratize market access.
01:17This was still a very heavy, CD-driven world at the time.
01:22In France, we were quite successful very, very, very early on for one single reason.
01:29We made a bet on hip-hop.
01:36At the time, no major were interested by hip-hop anymore.
01:41If there's one genre and one community of artists that's going to switch to digital faster than any others,
01:48it's hip-hop.
01:49Why?
01:50Because their demographic of audiences younger.
01:52Those will be the first adopters of digital and the streaming era and the YouTube consumption and everything.
01:57And second of all, they produce more music than any other.
02:02A pop artist releases an album every three, four, five years.
02:05A hip-hop artist, every six months.
02:06We need to stay agile because the ecosystem and the artist needs us to remain agile
02:11and we need to be more agile than the majors because this is going to become one of our USPs.
02:16We need to move faster and we need to be more agile about it,
02:20to be more adapted to what the artist ecosystem and the markets and the artist community need.
02:29We received a call from, I think, Oliver at the time who was still leading at Apple
02:34and he was telling us, look, Apple is going to open in 53 new territories on December 12, 2012.
02:45And we have selected three companies.
02:49We're not going to sign any direct deals with any artists and labels in all of these new countries.
02:55We have selected Believe, TuneCore and The Orchard.
02:59So if you want, we need your help to be able to source content in all of these territories.
03:06We wanted to double down on our original belief of we want to be able to take artists from entry
03:14level all the way to the top.
03:16We acquired TuneCore to be on the DIY market, to step in into the number one market in the world
03:22in the US and to source artists.
03:24So we are sourcing artists from TuneCore because some of them also need more services.
03:29Some of them don't need and they are very happy on TuneCore and this is great.
03:33And we need to develop them within the TuneCore ecosystem, which is fantastic.
03:37We love that.
03:38But some of them need more.
03:39So why would they go elsewhere?
03:43Well, they can move elsewhere and continue to develop further because they need more expertise services, people to talk to
03:49and marketing, investment, advances, etc., etc., within the belief ecosystem.
03:54When we are having conversations with all of our partners right now, these are meaningful conversations because our market share
04:02globally in digital music is close to 10%, which means that when we are talking about doing specific things,
04:09they translate in tens of millions of dollars of value.
04:13The way that we describe today as our objective is to build one global artist development company and what I
04:20say is it's we build locally and we connect it globally and technology empowered.
04:30The bet, which is proven being the right one, was that the growth of each market, more and more, is
04:39going to come from local music.
04:41It's about Thai music in Thailand, Mexican music in Mexico, Philippines music in Philippines, Polish music in Poland.
04:48Mainly, the growth will come from the independent sector, from the local music, from the local entrepreneur, from the local
04:55artist, as opposed to the old model, which is still there, mostly with the majors, of building global careers and
05:04global stars.
05:11If I take France, we're the number one, 225 charts, we have 47 albums, 29% market share in the
05:18top 200 yearly, 32% market share on the single charts with 57 plus single charted.
05:25We're bigger than anyone else.
05:32India, the biggest population in the world, 1 billion plus, the majors aren't there.
05:37The ecosystem is about local music in India is consumed by the language of the states.
05:42People in the South are consuming music from the South, people in the North, music from the North.
05:47We've been operating in India since 13 years and we are very successful there.
05:52Vivek, our head of India, is an incredible executive.
05:56He's entirely responsible with Silva, our head of APAC, on building the success that we have had.
06:02The core is really quality of your local teams in understanding the market, being able to build relationships with the
06:09right people, because we are in a people business.
06:12And if you don't build trust relationship with the ecosystem, you're not successful at doing the right acquisition, which is
06:20instrumental for us in India and understanding market evolution.
06:31Now is the right time because we were well positioned with leadership position in as many as possible of the
06:39markets where we invested.
06:41We are now number one to number three player in Asia.
06:44We're now number one to three players across Europe.
06:47Now in the Middle East, now is the right time for us to start looking at North America.
06:52You can't really pretend to be a global music company not being significant enough in the number one market in
06:57the world.
06:58It's the number one market in terms of exporting outside of the US.
07:01We are already the fourth largest player in the US.
07:04We do about 4% market share.
07:06We're the largest players after the major record labels.
07:09When we look at the offering in the US on distribution, we think that we believe as a company, our
07:16position much more as a premium distribution company than some of the companies existing in the market.
07:22So we already have TuneCore.
07:24And that's great because that gives us some market share again on the US soul.
07:28And as we're going to bring our office services business in the US as well.
07:37Our view is on the distribution side, distribution, it is no longer about access.
07:45Distribution, like artist services, has to drive success.
07:49That's why your strategic plan is called from access to success.
07:52Our first base of success three, four, five years from now is being able to have built a great portfolio
07:59of label on distribution and artists that we're proud on, that we've helped develop.
08:05And then build a portfolio of 10 sub labels that we have co-invested in, that we're developing successfully.
08:13We want to be able to achieve global coverage.
08:15Not only do we want to build in the United States for American artists in the US, but we also
08:22want to be able to have a capability that allows us to develop US artists globally.
08:30People often ask me, who are your competitor?
08:32My answer is we don't have any.
08:34With that view of addressing all those business lines, with that local approach, I don't think so.
08:42Not at the level we do it.
08:43It's not a two-year game or a five-year game that we're playing, it's a 20-year game that
08:48we're playing.
08:49We want to empower the next generation of ANRs and executives who are building labels to become the future winners
08:57in label development of tomorrow.
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