Page 23 - 2012 Annual Report

VIVENDI l 2012 l Annual Report 23
GROUP PROFILE – BUSINESSES – LITIGATION – RISK FACTORS 1
1
SECTION 2 - BUSINESSES
UNIVERSAL MUSIC GROUP
2.2.3. Music Publishing
Universal Music Publishing Group is one of the world’s leading music
publishing companies.(1) Music publishing involves acquiring the rights
to and licensing musical compositions (as opposed to recordings).
UMG enters into agreements with composers and authors of musical
compositions for the purpose of acquiring an interest in the underlying
copyright so that the compositions may be licensed for use in sound
recordings, films, videos, commercials and live and other public
performances (e.g., broadcasting and film performances). UMG also
licenses compositions for use in printed sheet music and song portfolios.
UMG generally seeks to acquire rights but it also administers musical
compositions on behalf of owners such as other music publishers and
authors who have retained or acquired such rights.
UMG’s music publishing company is also a global leader in the Production
Music Library businesses. The Production Music Library business owns
or controls a vast catalogue of original music and arrangements (through
numerous libraries and niche brands) and offers this music for use in
films, television, advertising and new media industries, essentially as an
economical licensing alternative to live or popular music.
UMG’s combined publishing catalogue contains more than two million
owned and administered titles, including some of the world’s most
popular songs. Some of the major artists/songwriters whose works are
represented include Eminem, Adele, Justin Timberlake, The Beach Boys,
Irving Berlin, Mariah Carey, Jon Bon Jovi, Maroon 5, Florence and the
Machine, André Rieu, Andrew Lloyd Webber, Ne-Yo and U2.
During 2012, UMG entered into a number of new publishing deals,
including agreements with Billy Joel, Steve Perry and Alejandro Sanz
(among many others).
(1) Source: Music & Copyright.
2.2.4. Merchandising
Bravado, UMG’s global merchandising company, is the only global,
360 degree full-service merchandise company in the industry. Bravado
works closely with new and established entertainment clients, creating
innovative products carefully tailored to each artist or brand. Products
are sold on live tours, via selected retail outlets and through web-based
stores.
Bravado also licenses rights to an extensive network of third party
licensees around the world. Bravado is able to leverage UMG’s global
sales and distribution network as well as UMG’s significant marketing
strength.
2.2.5. 2012 Highlights
✱ On April 4, UMG announced the creation of Mercury Classics,
a new classical music label to complement Deutsche Grammophon
and Decca.
✱ On May 31, UMG signed an agreement with the British company Linn
to distribute Studio Master quality recordings as digital downloads.
✱ On July 30, the official London Olympic compilation of the opening
ceremony, Isles of Wonder reached #1 in 11 countries (UK, Spain,
Norway, Greece, Portugal, Slovakia, Singapore, Malaysia, Costa Rica,
Ecuador and Vietnam).
✱ On August 7, UMG signed a 50 territory brand partnership deal with
Hewlett Packard.
✱ On August 22, country star Taylor Swift’s new single “We Are Never Ever
Getting Back Together” made a record-breaking debut, becoming the
biggest selling song by a female artist in one week (623k downloads).
✱ On August 30, UMPG signed worldwide agreements with Billy Joel,
Steve Perry and Ne-Yo, and renewed deals with Warner Bros Pictures
and Warner Bros Television.
✱ On September 1, Universal Music Enterprises’ ICON CD series
exceeded the 5 million (physical) albums sales mark in the US,
becoming one of the most successful catalogue lines in history.
✱ On September 28, UMG completed its acquisition of EMI Recorded
Music.
✱ On October 1, ABBA’s greatest hits collection, “Gold”, was confirmed
as the UK’s biggest selling compact disc of all time (4 million sales).
✱ On October 9, Universal Music France completed deal with Swiss-
based iConcerts, providing the company rights for a selection of 20
Universal shows that will feature on the iConcerts channel, which
broadcasts out of France to more than 80 countries worldwide.
✱ On November 21, Rihanna scored her twelfth #1 single in the US with
“Diamonds”, which was also the artist’s second single to debut at #1.
✱ On December 21, Psy’s “Gangnam Style” (Republic Records) became
the first video ever to reach one billion views on YouTube.