Reservoir Media has struck a music rights take care of Latin Music hitmaker Rudy Perez.
The deal will see New York-headquartered Reservoir purchase Perez’s catalog, which incorporates tracks he wrote or co-wrote for such artists as Christina Aguilera and Julio Iglesias. The settlement additionally features a publishing deal for his future works.
Perez’s monitor report within the business is nothing wanting beautiful: He has produced greater than 70 albums and composed greater than 1,000 songs, together with round 300 which have turn into top-10 hits, together with collaborations with Natalie Cole, Jose Feliciano, Luis Miguel and others.
The Cuban-born American musician has additionally taken residence quite a few accolades, together with 19 Grammy nominations and 5 wins. He has been named ASCAP Latin Music Songwriter of the Yr 5 instances. He’s the one producer to have gained Billboard’s Latin Music Award for Producer of the Yr 4 instances, and likewise took residence Billboard’s Producer of the Decade award in 2010, for collaborating on extra Prime 10 hits through the 2000-2010 interval than every other producer.
Amongst these hits had been Pero Me Acuerdo de Ti and Si No Te Hubiera Conocido, each off Christina Aguilera’s 2000 album Mi Reflejo, which reached primary on Billboard’s Prime Latin Albums and Prime Latin Pop Albums charts, and took residence the Latin Grammy for Finest Feminine Pop Vocal Album.
Perez has additionally been instrumental in establishing the Latin Music scene inside the US’s recorded music business. He co-founded each the Latin Recording Academy in 1987 and the Latin Grammys in 2000, in addition to the Latin Songwriters Corridor of Fame in 2013.
For Reservoir, the acquisition comes at a time when the corporate is looking for to diversify its portfolio of acquired music rights, and likewise at a time when the recognition of Latin Music is exploding, each within the US market and internationally.
A separate report from analysis agency Luminate discovered that streaming of Latin Music elevated by 22.2% YoY within the first 34 weeks of 2023, to 57.9 billion streams. That compares with a 13.3% YoY improve in streamed music within the US as a complete.
The “Hispanic group and tradition play a big function within the style’s progress, revealing new areas for music discovery,” the Luminate report acknowledged.
The report additionally discovered that Latin Music followers are, on common, extra monetizable than followers of different genres. Latin Music tremendous followers spend on common 30% extra on music consumption than different communities of tremendous followers within the US, and 120% greater than a mean non-super fan, the report discovered.
“Rudy is the very best of the very best, and we’re thrilled to associate with him to convey his music to Reservoir.”
Golnar Khosrowshahi, Reservoir
“From day one our intention has been to meaningfully diversify Reservoir’s catalog with the very best high quality music doable,” CEO Golnar Khosrowshahi stated in a press release. “Rudy is the very best of the very best, and we’re thrilled to associate with him to convey his music to Reservoir.”
Reservoir Govt Vice President John Ozier, added: “Rudy is a trailblazer. He and Latin music are so deeply intertwined, and his fingerprints are throughout so most of the style’s largest hits.
“I’ve been speaking with Rudy and his workforce for 5 years, which makes closing this deal a giant second for me personally. I’m so proud to welcome Rudy to Reservoir and assist help his legacy and the legacy of the style shifting ahead.”
“I’m thrilled to be part of the Reservoir household. I look ahead to collaborating on new initiatives with their whole workforce as I embark on the subsequent section of my profession.”
Perez stated he’s “thrilled to be part of the Reservoir household. I look ahead to collaborating on new initiatives with their whole workforce as I embark on the subsequent section of my profession.”
For Reservoir, that is the most recent in a collection of current acquisitions which have been rising the corporate’s portfolio.
In simply the previous few years, the corporate has acquired legendary record label Tommy Boy Music for $100 million; acquired the rights to the total catalog of Miami Sound Machine co-founder and lead songwriter Kiki Garcia; purchased the entire catalog, in addition to synch and grasp rights, from rock legend Dion; acquired the publishing and recorded music catalogs of nation star Travis Tritt, in addition to these of four of the founding members of the Nineteen Sixties R&B group The Spinners; and bought both the publishing and recorded rights of saxophonist and jazz icon Sonny Rollins – amongst many different offers.
On Reservoir’s fiscal Q2 earnings name earlier this 12 months, Khosrowshahi declared the corporate’s intention to turn into “the largest holder of Arabic music copyrights.”
Increasing to the Center East “is extremely necessary to our general technique and a key differentiator for us,” Khosrowshahi stated on the time.
In a reality sheet earlier this 12 months, Reservoir revealed that it had spent greater than $695 million on catalog acquisitions because the firm’s founding in 2007.
“Rudy is a trailblazer. He and Latin music are so deeply intertwined, and his fingerprints are throughout so most of the style’s largest hits.”
John Ozier, Reservoir
In its newest earnings report, for fiscal Q1 2024, Reservoir reported a 31% YoY improve in income, clocking in at $31.8 million. That was on the power of a 37% YoY improve in income in its Recorded Music division, which introduced in $10.4 million within the quarter, and a 26% YoY improve in revenues from Music Publishing, which got here in at $20.8 million.
A big a part of the income leap got here from the corporate’s continued acquisitions; stripping that out, income grew organically by 21% YoY within the quarter.
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.
On the quarterly earnings name, Khosrowshahi advised analysts that the corporate continues to be centered on additional acquisitions.
“We persistently see alternatives within the Center East. Now we have a fairly wholesome pipeline of offers to do there, and I don’t see that slowing down anytime quickly,” she stated.
Khosrowshahi reiterated that the corporate sees “a couple of $2 billion pipeline” in acquisitions, and that “we proceed to see strong offers, and that’s an excellent place to be in.”Music Enterprise Worldwide