Virgin Music Label & Artist Services Africa is the latest division of UMG’s global network to launch operations, dedicated to delivering premium and flexible artist and label services to the industry’s most dynamic entrepreneurs and independent talent worldwide, inspired and influenced by the spirit and ethos of the iconic Virgin Records label.

The division will focus on supporting the next wave of independent artists talents, labels, influencers, and entrepreneurs from the region with disruptive innovation and best in class services, to help deliver global success for its roster, and further expand the reach of music culture from across the continent to the vast African diaspora, as well as to new fans and audiences around the world.  

The division launches with in excess  of 15000 titles in its catalog, with more than fifty label partners from 25 countries, which includes the likes of; Kesi Publishing (Panaf), Blue Diamond (Benin), Hope Music Groupe (CMR), Hitlab (Panaf) Hiquest (SNG), Yaye Boye (Fr) and releases from more than 100 of Africa’s leading artists including; including Youssou Ndour (SNG), Touré Kunda (SNG), Lokua Kanza (DRC), Magic System (CIV), Werrason, Serge Beynaud (CIV), Innos B (DRC), Debordo (CIV), Sagbohan Danialou (Benin), Cabo Snoop (Angola) and Fanicko (Benin) amongst others.

It will combine the support for independent African artists and labels, with making historical and often long out of print African music catalogs available digitally for the first time.

Virgin Music arrives in Africa under the leadership of Universal Music Africa’s current Director of International Development, Guylaine Clery and Head of A&R Félix Pea, who will also serve as co-directors of the new division, effective immediately and will report to Franck Kacou, Managing Director, Universal Music Africa.

In making the announcement Franck Kacou, MD, Universal Music Africa said, “Our vision for Virgin Music in Africa is based on an observation that African cultural heritage has not yet fully found its place in the digital world and on DSPs globally. Indeed, with some of these services rarely existing in certain territories, this heritage is unequally represented. Our ambition is to make African music, a showcase of all that Africa and its diaspora can offer the world!

“We intend to give new life to forgotten songs, our investigation will go as far as digitizing them to make them accessible to as many people as possible, everywhere in the world. The creation of this label services will make it possible to preserve, distribute, structure, and promote the African musical heritage of yesterday, today and tomorrow, whilst also providing global distribution services to Africa’s most exciting artists, labels and entrepreneurs.”

Olivier Nusse, CEO & President of Universal Music France said, “Launching Virgin Music LAS on the continent is in line with our long-term vision, both in terms of our relationship with labels and artists whose talent shines outside Africa, and in terms of developing our activities in this booming region of the world. Our expertise and dedicated teams, combined with the Virgin worldwide network, offer a unique platform and range of opportunities, but above all, tailor-made support for the continent’s labels and exciting talents.”

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The deal, announced on May 1st, 2024, marks an end to the temporary absence of UMG music on TikTok, which began in February 2024 after the expiration of the previous contract.

This “multi-dimensional” agreement highlights a focus on both artist compensation and creative expression. UMG artists and songwriters will benefit from improved payment structures, new promotional opportunities, and industry-leading safeguards related to artificial intelligence (AI) music generation.

“This new chapter in our relationship with TikTok focuses on the value of music, the primacy of human artistry and the welfare of the creative community. We look forward to collaborating with the team at TikTok to further the interests of our artists and songwriters and drive innovation in fan engagement while advancing social music monetization,” said UMG Chairman and CEO Lucian Grainge. 

Both UMG and TikTok seek to collaborate on artist development, fan engagement, and innovative music monetization strategies.

TikTok will continue to invest in artist-centric tools, including features for easier music sharing across platforms, improved data and analytics, and integrated ticketing capabilities. This focus will enable artists to build and connect with their global fanbase on the social platform.

The agreement acknowledges the growing role of AI in music creation. UMG and TikTok will work together to ensure reliable AI development that protects human artistry and ensures proper artist and songwriter attribution.

Fans can expect the full return of UMG’s music library to TikTok, allowing them to once again create videos featuring music from their favourite artists. 

This collaboration comes with a focus on supporting artists, facilitating creativity, and promoting innovation and experimentation, helping artists scale higher.

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The acquisition will facilitate UMG’s expansion into the thriving African music market, enabling both entities to scale beyond current reach.

The agreement between UMG and Mavin Records, currently pending regulatory approval, is expected to be finalized by the third quarter of 2024.

While the financial terms of the deal remain undisclosed, industry analysts speculate that the transaction could be valued at a substantial figure, potentially surpassing previous estimates.

Mavin Records, established in 2012, has nurtured the talents of well-known artists such as Rema, Ayra Starr, Crayon, and Ladipoe, among others.

In relation to the investment, Don Jazzy, had an impressive view about the partnership with UMG, noting the similar goal of grooming and promoting African music on a global scale.

Lucian Grainge, the chairman and CEO of UMG, commended Mavin Records on how it is popularizing Afrobeats, a genre that has captivated audiences worldwide.

Grainge highlighted the synergies between UMG and Mavin Records, citing the mutual dedication to artistic excellence and innovation in the music industry.

The investment from UMG will boost Mavin’s expansion initiatives, with a particular emphasis on heightening the label’s Artist Academy and empowering the next generation of African music industry leaders.

The acquisition emphasizes UMG’s drive to deepen its presence in the Nigerian Afrobeats industry, which has witnessed commendable growth and international recognition in recent years.

Notable artists such as Wizkid, Davido, and Burna Boy have driven Afrobeats onto the global stage, making it easier for emerging talents like Rema, Starr, Tems, and Fireboy DML to carve out their own unique paths to success.

With the partnership between UMG and Mavin Records, both entities will spearhead Africa’s musical continuous thriving, motivating audiences and artists alike to keep pushing for creativity and innovation.

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Universal Music Group (UMG), the world’s leader in music-based entertainment, has entered into an agreement to acquire Chabaka, MENA’s leading digitally-focused music distribution business that empowers independent artists and labels.

Chabaka provides digital distribution, marketing, publishing, and label and artist services in the Middle East and North Africa (MENA) region.

Founded by brothers Ala’a and Tarek Makki in 2013, Chabaka quickly became the go-to partner for independent music creators looking to work with a team of skilled executives that can help them achieve creative and commercial success in MENA’s dynamic and rapidly evolving music scene.  

Today, Chabaka has agreements with more than 150 independent artists and regional labels across MENA.

The company’s rich regional catalogue of songs and recordings has grown through a  culture of innovation and entrepreneurship, and thanks to its on-the-ground presence across multiple countries covering the entire MENA region.

Ala’a Makki, Co-Founder and CEO of Chabaka, says: “These are inspiring times for the Arab region, which is one of the fastest growing music markets in the world. We are thrilled to announce our partnership with UMG at this junction of our journey. Joining forces with the largest music label in the world coincides with Chabaka’s 10th anniversary and marks an important milestone and a new phase for the company, its artists, and labels.

This transaction will bring together UMG’s global presence and expertise with Chabaka’s strong relationships and deep local repertoire. Together with UMG, we will drive the transformation of the regional music industry and take it to new places, while creating new possibilities for local artists.”

Ala’a Makki believes that the Gulf region, Levant, Egypt, and North Africa are some of the most exciting places to be in terms of alternative, indie, and underground music. MENA recorded the world’s fastest revenue growth 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.

Global industry figures also show how popular streaming is in the region. For example, people living in the UAE listen to an average of 22.5 hours of music a week, 22 percent higher than the global average. More than 480 million Arabic speakers live in the Arab countries, and with a huge global Arab diaspora maintaining its connection to its roots, this market has significant room for growth, particularly as the MENA region only accounts for 0.4% of global music revenues currently.

Tarek Makki, Co-Founder, Chabaka, adds:

“The region is at an inflection point, and this acquisition was the natural next step for us, our employees, and artists. A top priority for Chabaka was to select a partner that takes us to new heights while safeguarding our artists’ interests and bringing them new upstreaming opportunities at a global level, and who better to help us achieve that than the world leader in the music entertainment business and a company that deeply values innovation and entrepreneurship. Our shared vision is to continue fostering the incredible talents of this region and expanding their reach to a global audience. With UMG’s global platform, expertise, technology, and network, and Chabaka’s deep-rooted local experience, presence, and innovative strategies for artists’ management and revenue growth, we’re all set to bring an extraordinary and unique offering to the market.”

The acquisition of Chabaka complements UMG’s current service offering and footprint in this fast-growing and dynamic MENA market. It will allow UMG to expand its services and reach within the independent label and artist community. The transaction is another demonstration of UMG’s strategy to increase its presence and accelerate its growth in high potential music markets around the world.

Following the acquisition, Chabaka will become part of UMG’s Virgin Music Group, working closely with the local Virgin and UMG teams in MENA. Through the combination of Virgin Music Group’s pioneering solutions, creative network, and global footprint and Chabaka’s unparalleled services and regional expertise, the group will be uniquely positioned to build and reach the largest possible audience for talent from the region.

As part of the agreement, CEO Ala’a Makki will continue to lead the company and be instrumental in further growing Chabaka’s presence across geographies and business lines, supported by key members of the Chabaka team. Tarek Makki will remain as an advisor while also continuing to lead Concast and Boomerang Studios, the other two companies within CHBK Group, which will rebrand following the acquisition. The world-class Chabaka team comes with a wealth of local Artist and Repertoire (A&R) expertise and will continue to build on the company’s unmatched success.

Patrick Boulos, CEO, MENA Region, UMG, said:

“The MENA region is one of the fastest growing music markets in the world, representing untapped potential and opportunity. Chabaka is a unique collection of visionary leaders, artists, and labels and gives us both scale and  opportunity, especially when combined with UMG’s world leading global platform. I am particularly pleased that Ala’a Makki and his team will join us and drive the next chapter of Chabaka’s success as part of the UMG family. The team is completely tuned-in with the independent and indie music scene of the Arab region, from North Africa to the Gulf.”

Chabaka has been working with its clients to help them through their creative and commercial journeys and grow their fan base and revenues.

“As we continue to expand our footprint in emerging territories all over the world, Chabaka represents an important creative hub in one of the world’s most promising music markets,” said JT Myers, Co-CEO of Virgin Music Group. “Ala’a Makki and his team bring a level of expertise and knowledge that will enable them to create opportunities for our artists and labels in the expanding MENA region, and in turn, we will be able to grow the global audience for Chabaka’s amazing roster of artists and labels.”

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