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MBW’s World Leaders is a daily sequence by which we flip the highlight in the direction of among the most influential business figures exterior the US and UK markets. On this characteristic, we converse to Moe Hamzeh, Managing Director of Warner Music Center East. World Leaders is supported by PPL.
With an addressable inhabitants of over 380 million, MENA is changing into an more and more vital marketplace for the worldwide file enterprise.
Recorded music business revenues for the Center East and North Africa (MENA) area grew 37.8% in 2020, as much as $63.4 million.
That’s in accordance with world recorded music physique IFPI, which simply 12 months final opened its first workplace in MENA, demonstrating what IFPI CEO Frances Moore stated on the time was “the joy and alternative we see within the area”.
Sony Music, Common Music Group and Warner Music Group all have a big presence in MENA at this time, with WMG making a play for the market again in 2018 by way of the launch of its Warner Music Center East division.
Led by MD Moe Hamzeh, who’s based in Beirut, the regional HQ focuses on 17 markets throughout MENA, together with Algeria, Bahrain, Egypt, Iraq, Iran, Jordan, Kuwait, Lebanon, Libya, Morocco, Oman, Qatar, Saudi Arabia, Syria, Tunisia, United Arab Emirates and Yemen.
Hamzeh’s music business profession began in 1998, as a label supervisor for Music Grasp, Warner Music’s regional licensee on the time, overseeing the advertising and marketing and distribution of WMG’s repertoire in Lebanon.
He went on to discovered indie file label and writer Temple Leisure, and later opened Virgin Megastores’ flagship retailer within the area, the place he oversaw product advertising and marketing actions in Lebanon and growth into Saudi Arabia.
In 2008, he joined Melody Music and Artists Administration as Basic Supervisor, and in 2012, took up the function of Head of Content material for streaming platform, m.media, the place he continued to work till becoming a member of WMG.
Considered one of WMG’s largest strikes in MENA following the launch of Warner Music Center East in 2018 got here in February 2021, when it invested in Saudi Arabia’s Rotana Group-owned Rotana Music, which is claimed to be the most important file label within the Center East.
The deal – believed to be an eight-figure acquisition for a minority stake – expanded WMG’s presence within the Center East and North African (MENA) area.
It was additionally introduced in February final 12 months that WMG’s label companies division ADA Worldwide would distribute Rotana releases globally exterior of MENA and by way of YouTube for your entire world.
Commenting on MENA’s historic positioning within the world music enterprise, Hamzeh tells MBW that “the Center East wasn’t on the radar for a lot of world music gamers for a lot of years”.
“Sky excessive piracy charges meant the bodily market by no means actually acquired off the bottom,” he provides.
Streaming has ushered in a brand new period for the area’s music enterprise nevertheless, serving as the first driver behind the area’s 37.8% recorded music income progress in 2020.
MBW caught up with Moe Hamzeh, and Tarek Mounir – the previous CEO of Deezer MENA – forward of their joint on-stage look on the XP music business convention in Saudi Arabia in December, about alternatives, challenges and progress within the area…
Do you assume the Center East has been marginalised in discussions concerning the world music enterprise up to now?
Moe Hamzeh: Even because the digital revolution acquired underway, the business dialog about rising markets targeted on Latin America, Asia or Sub-Saharan Africa. Folks tended to see 17 fragmented nations, fairly than an Arab-speaking market of just about 400 million individuals. With digital progress, we now have the flexibility to higher monetise the market and I hope that occasions similar to XP will assist change the narrative and present the potential that’s right here.
What do you say to those that criticise the music business for getting concerned in a rustic like Saudi Arabia?
Tarek Mounir (pictured): The music business ought to at all times be fan-focused. There are round 13 million Saudis beneath the age of 25 they usually’re hungry for tradition and leisure. By leaning in to them, we will help be a catalyst for constructive change.
Issues are altering quickly right here, in methods not at all times reported within the worldwide media, and it’s thrilling to be part of that.
What are the alternatives for file corporations in MENA?
MH: The mix of a rising regional financial system, excessive digital penetration and a younger demographic are sturdy fundamentals for us. However you want the alchemy of a file label to assist younger artists profit from these developments. We’re serving to proficient performers begin to construct careers in music and that’s massively thrilling. It’s altering their lives and it’s altering the lives of their followers.
What developments are we seeing within the music business throughout MENA – surging genres, markets to look at and many others?
MH: There’s a paradox in that digital platforms are enabling artists to achieve followers throughout borders, however we’re additionally seeing the emergence of stronger native scenes. There are a pair it’s price highlighting on your worldwide readers.
Mahraganat, generally often called electro-shaabi, has swept Egypt. It has its roots within the streets of Cairo and is related to weddings and festivities, it actually interprets as “festivals” in English. It depends closely on laptop generated and synth beats and is kind of totally different to the romantic pop that’s dominated the charts for many years. It’s additionally influenced the expansion of Egyptian hip-hop.
North African hip-hop is kind of totally different to something you see popping out of the States. Due to the sturdy diaspora presence in France and Italy, you see a cross-pollination between artists from the likes of Algiers, Tangiers and Tunis with these from Milan, Paris and Marseilles. Drawing on the normal wealthy cultures of North Africa, it makes for a fast-moving scene.
Khaliji is standard within the Gulf States and depends on the rhythm that comes from African and Indian music, in addition to native beats.
Is it proving simpler for Arabic artists to achieve an viewers throughout the area now?
TM: As Moe stated, there’s a paradox that digital platforms make it simpler to followers to entry music from wherever, however on the similar time we’re seeing the emergence of stronger native scenes. There are fewer pan-Arab superstars within the fashion of Amr Diab – it’s develop into simpler to achieve audiences in numerous territories, however more durable to breakthrough as there’s a lot competitors. However that I believe is the place new funding from file corporations could make a distinction, they’ll put collectively campaigns that may assist artists join with followers from throughout the area extra simply.
MH: And we’re beginning to see that occur. For instance, The Synaptik is a tremendous rapper of Palestinian and Jordanian heritage who we’ve been capable of assist construct a big fan base in Egypt.
Are there challenges for artists from underrepresented teams – similar to ladies or those that are LGBT+?
MH: Issues are altering, and whereas legal guidelines are nonetheless discriminatory in lots of nations, younger individuals are open to partaking with artists from totally different backgrounds and new views. As a file firm, we’re dedicated to fairness and variety and need to assist society evolve, whereas nonetheless being respectful of traditions. However there are nonetheless boundaries – take the indie band Mashrou’ Leila, who’re large in Lebanon and throughout the area, they discovered themselves banned from performing stay in some nations due to their affiliation with LGBTQ+ rights. So – in all honesty – there’s a protracted option to go.
Do you assume there’s an viewers for Arabic music past the area?
TM: There’s an enormous world viewers for Arabic music. There’s a big diaspora in North and South America, Europe and Australia. They act as champions for Arabic artists of their wider societies and in an age when many streaming companies are world, they assist drive the performers they love up the charts.
What misconceptions concerning the area would you want appropriate?
MH: Too typically the Center East has been within the headlines internationally due to political points, however that masks the story of a area whose financial system is rising powerfully and a people who find themselves embracing change. Music is about pleasure and celebration, and is a superb device for cultural dialogue. I hope it helps carry individuals collectively.
How do you see the following few years enjoying out for the music enterprise in MENA?
TM: The business is rising quick, however we’ve nonetheless acquired challenges to beat. Low bank card penetration means we have to be progressive about fee gateways; copyright regimes have to be up to date and enforced; we have to decrease information prices as they’ve in markets similar to India. And, most of all, we have to educate followers that music is price paying for. However I’m assured we will clear all these hurdles and open a path to much more fast progress.
MH: The subsequent 5 years might be a time of seeding and creating the business. I studied geology a few years in the past, so I nonetheless use the analogy of turning graphite into diamond! I believe we’re beginning to see funding are available, governments see the chance a thriving inventive sector gives and native music scenes explode. The opening of an IFPI workplace within the area was the most recent milestone within the creation of a copyright infrastructure that may enable us to construct a correct business. So I believe the following few years might be exhausting, exhilarating and rewarding!
What would you alter concerning the music business and why?
MH: On a regional degree, I’d prefer to see higher training across the worth of music. Years of piracy has led a big proportion of the Center East inhabitants to imagine music needs to be free. Our artists and the business would profit massively if extra individuals migrated to paid subscription companies.
Moe mentions that digital platforms are enabling artists to achieve followers throughout borders,” may he develop a bit on this – What platforms are they seeing the most important progress on?
MH: Worldwide companies similar to Apple Music, Deezer and Spotify supply a chance for our artists to climb the worldwide charts. Regional market leaders, similar to Anghami, are additionally enabling artists to achieve followers throughout the Arabic world and past. And YouTube is a massively standard channel for music followers proper throughout the area, whereas its latest initiative of producing MENA-specific charts exhibits it recognises the potential of the area.
MENA-focused music streaming service Anghami is planning to checklist on the NASDAQ – inform us concerning the significance of this information for the music and tech industries within the wider area?
MH: It was good information to see an Arab expertise firm from MENA checklist on NASDAQ for the primary time. It additionally shines an actual highlight on the area.
Music Enterprise Worldwide
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