A deal that consolidates Dubai’s global position … “Warner Music”‘s acquisition of Music channels

Warner Music International’s acquisition of “Music Channels” has been completed, in a deal that confirms Dubai’s position as an advanced media center and incubator for major international companies.

Sheikh Ahmed bin Mohammed bin Rashid Al Maktoum, Chairman of the Dubai Media Council, emphasized that the global media community that Dubai founded more than 20 years ago is still growing and flourishing, in the light of the vision of Sheikh Mohammed bin Rashid Al Maktoum , Vice President and Prime Minister of the UAE and Ruler of Dubai, who has made Dubai an important platform for launching ambitious media projects and an important center to attract creative ideas and creative talents from around the region and the world.

It took place on the occasion of the completion of the acquisition of Warner Music Group, a global entertainment and music recording group, of Music Channels, the leading digital music and entertainment company in the Middle East and North Africa, and a subsidiary of the “Qanawat” group, which was launched in 2001 from Dubai Media City.

Sheikh Ahmed bin Mohammed bin Rashid said: The acquisition represents a new success in addition to the many successes that have resulted from the supportive environment that Dubai has provided for entrepreneurs to launch their leading projects in the media field, like other sectors, and they enabled to launch. thereby on the path to success, while benefiting from the environment Dubai attracts investments in attracting capital and transactions that enable them to expand their business and go global in record time.

He stressed that Dubai will continue to provide all elements of support to companies of all sizes, including high-level infrastructure, flexible legislative frameworks and a partnership-based approach to business.

sustainable growth

The acquisition is expected to promote the sustainable and comprehensive growth of the media sector as a whole, especially the Arab content industry, and will give a strong impetus to the components of the media community in all its categories, consolidating Dubai’s position as an advanced media center, and improving the emirate’s competitiveness to attract more large Arab and international media companies.

The deal is one of the largest of its kind in digital music and entertainment in Asia, Africa and Europe. The agreement will help promote the development and support of Arab talents and elevate them to the world level, and will also create many jobs, as the workforce in “Music Channels” is expected to grow by more than 100% in the next phase.

The size of the deal is consistent with the success the Qanawat group of companies has achieved since its inception in Dubai Media City. Through its strategic presence within the largest integrated media business environment in the region, it has been able to develop and expand its business to more than 20 countries, including branches in Riyadh, Cairo and Al Dar Al-Bayda, Tunisia and Algeria, and has in the largest distributor of digital music and entertainment content in the Arab world and Africa.

By 2021, the network of entertainment and music “channel” content will have more than 200 billion views and visits across digital streaming platforms, including Apple Music YouTube, Spotify and Anghami, as well as social media channels such as Facebook, Instagram, TikTok and Snapchat , generated, and more than 145 million videos were uploaded by users Social networks.

Under the acquisition, Music Channels will continue to operate as an independent company within the Warner Music Group, under the supervision of Adnan Al-Obthany, CEO.

“Music Channels” will act as the main distributor for “Warner Music” in the region, which will benefit from “Music Channels’ extensive distribution network” and its network of relationships with more than 1,100 creators from around the Arab world.

unifying efforts

Adnan Al Obthani, CEO of Music Channels, said: “We strive to maintain our position as a digital distributor and pioneer in creativity, development and marketing in the Middle East and North Africa region with a portfolio that the largest and best Arabic entertainment and music content around the world, and this was made possible thanks to the acquisition to unite our efforts with Warner Group. Music.

He added: We have worked hard for over 20 years to build an integrated distribution network and to develop our business with the support of the leading infrastructure and stimulating business environment in Dubai Media City, in addition to the community of creators that embrace it. Our creators.

Warner Music Group has a long-term vision for the development of the sector in the MENA region, and we are confident that this new chapter in our story will unfold a world of great opportunities for creators and usher in new business areas, including MetaFirst, NFT and other creative fields.

Arabic content

In this regard, Majid Al Suwaidi, Director General of Dubai Media City, said: “Dubai Media City has worked for over 20 years to provide the potential for growth and success for companies and talents in all fields of media through an integrated media environment that also includes Dubai Studio City, Dubai Production City and the in5 media business incubator. Today, the three cities include 3,000 institutions and 34,000 specialists who have contributed and continue to advance the emergence of the media sector in the emirate, which today is a source of Arabic content to various parts of the world.

Al Suwaidi added: We are eager to develop this environment to continue the path of excellence and leadership, contributing to the consolidation of Dubai’s position as a destination for major media companies, and an incubator for the talents and competencies that the UAE and the Arab world as a whole have.

He continued, “Music channels have always influenced the growth of the creative community and the music and entertainment sector, especially in the Middle East and North Africa, and its acquisition by a global company confirms the attractiveness of this sector and the opportunities available to emerging companies in addition to the growing demand for Arab talent in general. ”

In turn, Alfonso Perez Soto, Head of Emerging Markets at Warner Music Group, said: “Through this agreement with Music Channels, we have a tremendous opportunity to bring promising talent from the Middle East and North Africa to the Arab audience across the world. world to run. Promotion and growth of the music sector as a whole.

Music revenue is the highest in the world

The music industry in the Middle East and North Africa is flourishing, according to the World Music Report 2022 issued by the International Federation of Phonographic Industries.

The data points to a 35% increase in music revenue in the region in 2021, reflecting the industry’s performance and its lead over Latin America, the United States and Canada.

With a total population of over 464 million, music fans are doubling in size and the market is backed by easy mass access to digital streaming platforms and increased distribution by local music companies.

International distributors and brands are noticing the growing demand for Arabic celebrities, and on the other hand, acquisitions in the music industry in the country and region demonstrate the amount of potential opportunities and the need for joint efforts and reinforcing practices for creators and promising talents.

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