On an earnings name earlier this 12 months, Reservoir Media CEO Golnar Khosrowshahi expressed an bold purpose for the New York-headquartered unbiased music firm.
“Increasing our portfolio in… necessary rising markets, however particularly inside the Center East, is very necessary to our general technique and a key differentiator for us,” she advised analysts on the decision.
“With our community and talent to buy content material at engaging multiples, this area presents important alternative as we work to change into the biggest holder of Arabic music copyrights.”
To that finish, Reservoir Media shaped a three way partnership in 2020 with Abu Dhabi-headquartered music writer and music rights consultancy PopArabia. Below that deal, PopArabia assumed the function of sub-publisher for all of Reservoir’s copyrights within the Center East/North Africa (MENA) area, together with accumulating and distributing royalties and licensing music for sync.
The partnership is supported by twofour54, Abu Dhabi’s media zone that’s residence to quite a few media corporations together with CNN and Sky Information Arabia, amongst a whole bunch of others.
Reservoir and PopArabia have since engaged in a joint enlargement marketing campaign that has included the acquisition of Egyptian label 100COPIES, in addition to the acquisition of Lebanese label and music writer Voice of Beirut.
On Wednesday (August 23), the 2 corporations introduced a pair of latest transactions that can give them a fair stronger foothold within the Egyptian music market: A catalog acquisition of Cairo-headquartered content material manufacturing and distribution firm RE Media, and the acquisition of grasp and recording rights for the catalog of Egyptian rap duo El Sawareekh.
The deal will give Reservoir/PopArabia the rights to RE Media’s 6,000+ recordings and compositions, together with these from sub-labels Moseeqa and Moseeqa TV, in addition to the acquisition of a number of or RE Media’s owned and operated YouTube channels, which collectively boast a couple of million subscribers. The channels will likely be folded into PopArabia’s personal YouTube hub.
Based in 2004 by Richard Elhaj, RE Media represents a various mixture of Egyptian music spanning the previous three many years and options songs by distinguished artists comparable to Amr Diab, George Wassouf, Dalida and Mohamed Mounir. The deal consists of Amr Diab’s basic debut album Ya Tareeq. Diab continues to be one of many world’s most streamed artists.
“I’m… excited in regards to the governance PopArabia is bringing to the Center East, maximizing the financial potential of music belongings and making a lawful ecosystem to construct on for the longer term.”
Richard Elhaj, RE Media
“I’m very proud to have struck an association with PopArabia for the acquisition of a few of our catalog, and I foresee a long-term relationship with them and with Reservoir,” Elhaj stated in an announcement.
“I’m additionally excited in regards to the governance PopArabia is bringing to the Center East, maximizing the financial potential of music belongings and making a lawful ecosystem to construct on for the longer term.”
The rap duo El Sawareekh consists of Ahmed Abdelhamed (aka Dokdok) and Bassem Mohamed (aka Fanky). They’re thought-about forerunners of the Mahraganat style, which emerged over the previous 12 years and consists of a mix of Arabic rap, digital music and Egyptian rhythms.
The duo launched their debut album in 2014, and have been main artists on the Egyptian scene since 2017, with the discharge of the breakout hit Laa. That monitor has garnered some 100 million views on YouTube. Laa has the truth is been part of Reservoir and PopArabia’s catalog since they acquired the rights to the monitor as a part of the businesses’ acquisition of 100COPIES in 2022.
Because the launch of Laa, El Sawareekh have gone on to launch quite a few hit tracks, together with Ekhwaty (414 million YouTube views), Albk Bahr Maleh (180 million views) and Eda Eda (66 million views). El Sawareekh have been highlighted on Forbes’ “Movie star Record” of the Center East’s Arab Music Stars in 2021.
In a joint assertion, the duo stated they have been “excited to proceed our relationship with Reservoir and PopArabia. We sit up for the businesses’ assist as we proceed to point out the world what we will do.”
Spek, the Founder and CEO of PopArabia, who additionally serves as Reservoir’s Govt Vice President of Worldwide and Rising Markets, stated in an announcement: “Egyptian artists are a driving drive in Arabic in style music, and it’s gratifying to see Reservoir and PopArabia proceed to solidify our presence in MENA by way of the acquisition of those necessary catalogs.”
He added: “El Sawareekh have created a few of the nation’s most memorable hits of this period, and RE Media represents an necessary unfold of Egyptian repertoire. Every of those offers is a vital step in our ongoing efforts to develop our management within the Arabic music area.”
“Egyptian artists are a driving drive in Arabic in style music, and it’s gratifying to see Reservoir and PopArabia proceed to solidify our presence in MENA by way of the acquisition of those necessary catalogs.”
Spek, PopArabia/Reservoir
In its newest earnings report, for Q1 of its 2024 fiscal 12 months, Reservoir reported a 31% YoY enhance in income, on the energy of a 37% YoY income leap in its Recorded Music division, which introduced in USD $10.4 million for the quarter. Music Publishing revenues got here in at $20.8 million.
A big a part of that income development got here from the corporate’s continued acquisitions. Stripping that out, income grew organically by 21% YoY.
Among the many firm’s latest acquisitions have been the rights to the catalogs of 4 of the unique members of legendary R&B group The Spinners, in addition to the catalog of Miami Sound Machine lead songwriter Kiki Garcia. Reservoir additionally acquired Tommy Boy Music (identified for Coolio, Queen Latifah and De La Soul) final 12 months in a $100-million deal.
Based on a monetary assertion filed earlier this 12 months, the corporate has spent over $695 million on catalog acquisitions thus far.
The corporate clocked OIBDA (working earnings earlier than depreciation and amortization) of $9.2 million in its fiscal first quarter, a 38% YoY leap, whereas adjusted EBITDA got here in at $10.1 million, up 36% YoY.Music Enterprise Worldwide
