Universal Music Group announced that it has entered into an agreement to acquire the digital “Music Network”, which empowers independent artists and producers in the independent and alternative music sector.
Music Network provides digital distribution, marketing, publishing and artist services throughout the Arab region. Founded by brothers Alaa and Tarek Makki in 2013, the Music Network has quickly become the partner of choice for independent music creators looking to work with a highly specialized team to enable and help them achieve creative and commercial success in the highly dynamic and rapidly evolving Arab music scene.
The Music Network includes more than 150 independent artists and independent production labels across the Arab region. Its rich music library has grown rapidly due to the company’s adoption of a culture of innovation, entrepreneurship and entrepreneurial spirit, as well as due to its presence on the ground covering the entire region directly.
Alaa Makki, Co-Founder and CEO of Music Network, says: “We are living through exciting and inspiring times in the field of independent and alternative music in our region, which is one of the fastest growing music markets in the world. We are pleased to announce our partnership with Universal Music Group at this juncture in our journey. This important partnership with the largest music label in the world coincides with the tenth anniversary of the founding of the “Music Network”, and represents a major station and a new stage in the march of the company and its independent artists and producers. This collaboration will combine Universal Music Group’s global presence and experience with Music Network’s strong regional relationships and extensive music library of Arab artists and producers. Together with Universal Music Group, we will lead the transformation of the regional music sector, taking it to new places and dimensions, while creating new possibilities for our artists.”
Alaa Makki believes that the Arab region, from the ocean to the Gulf, is one of the most vibrant regions in terms of alternative and independent music. The Middle East and North Africa region recorded the fastest revenue growth globally in 2021 at 34%, and ranked third in 2022 at 23.8%, according to the International Federation of the Phonographic Industry (IFPI), which represents the recording industry worldwide.
The global figures for the sector also show how popular online live broadcasting is in the region. For example, people living in the UAE listen to an average of 22.5 hours of music per week online, which is 22 percent higher than the global average. More than 480 million Arabic speakers live in Arab countries, with a huge Arab community spread around the world that maintains its roots and ties to the region. This means that this market has a lot of room for growth, especially since the Arab region currently represents only 0.4% of global music revenues.
Tarek Makki, co-founder of Music Network, said: “We stand in the region today at an inflection point in terms of the alternative and independent music scene and independent production. For us, our employees and our artists, this acquisition was the natural next step in our development. The top priority of the “Music Network” was to choose a partner that would take us to new heights while protecting the interests of our artists and providing them with new opportunities on a global level, and we could not find better than the largest global company in the field of music entertainment to help us achieve this, especially as it values and celebrates innovation and entrepreneurship. . We have a shared vision to continue to support the amazing talent in this region and expand their coverage to reach a global audience.
Thanks to Universal Music Group’s global platform, experience, technology and network, in addition to the experience of Music Network rooted in the region, its presence and its innovative strategies in the field of music production, artists and revenue development, we look forward to providing unique and exceptional services in the independent music production and distribution sector in the region ».
The Music Network will become part of the Virgin Music Group, a subsidiary of Universal Music Group, and will work closely with Virgin and UMG’s local teams in the Middle East and North Africa. By combining Virgin Music Group’s pioneering solutions, creators and global reach with Music Network’s distinctive services and regional expertise, the group will be uniquely positioned to build a broad audience that talents from the region can reach.
As part of the agreement, CEO Alaa Makki will continue to lead the company and will be instrumental in enhancing the presence of the Music Network across geographies and lines of business, with the support of the company’s leadership team. Tarek Makki will remain an advisor, while also continuing to lead Concast and Boomerang Studios, the other two companies within the CHBK group, which will be rebranding after the acquisition. Music Network’s world-class team is highly experienced in the local music production (A&R) sector and will continue to build on the company’s unparalleled success.
Patrick Boulos, CEO of Middle East and North Africa, Universal Music Group, said: “The Middle East and North Africa region is one of the fastest growing music markets in the world, and represents untapped potential and opportunity. The “Music Network” is a unique group of business leaders, artists and music producers, and it gives us new opportunities and greater ability to grow, especially when combined with the global “Universal Music Group” platform.
I am especially pleased that Alaa Makki and his team are joining us and leading the next chapter in the success of The Music Network as part of the Universal Music Group family. The team is fully integrated with the independent music scene in the Arab region, from North Africa to the Gulf.
JT Myers, Co-CEO of Virgin Music Group, said: “As we continue to expand our reach in emerging regions around the world, the Music Network represents an important creative hub in one of the most promising music markets in the world.
Alaa Makki and his team bring a level of experience and knowledge that will enable them to create opportunities for our artists and producers in the expanding MENA region. In return, we will be able to grow the global audience of Music Network’s impressive roster of artists and music producers.”
