Sony / ATV Music Publishing

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Sony / ATV Music Publishing LLC

logo
legal form Limited Liability Company
founding September 24, 1955, Lew Grade
Seat 550 Madison Avenue, New York City, New York, USA
management Martin Bandier (also CEO )
sales > $ 1,250,000,000 (annually)
Branch Music publisher
Website www.sonyatv.com
As of June 3, 2018

Sony / ATV Music Publishing LLC is a US music publisher owned by Sony Corporation and is now the largest music publishing company in the world with approximately 4 million songs (approximately 2 million more than before EMI Music Publishing was taken over ). Sales are at least $ 1.25 billion annually.

history

History of the ATV

The Association Television (ATV) was a British television company, founded on 24 September 1955 by Lew Grade . Twenty years later, ATV had expanded into an entertainment conglomerate with the business lines music industry , music publishing and film production through the acquisition of company shares .

With the acquisition of a 50% stake in the British record company Pye Records on October 23, 1958, ATV entered the music industry. At the beginning of June 1966 ATV acquired a 50% share in the music publishers New World Music and Jubilee Music (subsidiaries of the English Chappell & Co. ) and expanded into the music publishing business. A month later, ATV bought the record company Pye Records for £ 2.1 million and ran it (including Welbeck Music) as its own subsidiary.

Paul McCartney and John Lennon tried to get a majority stake in the Northern Songs catalog in 1969

In early 1969, Dick James and his partners sold their shares in the Northern Songs catalog with 251 Beatles songs to ATV without informing John Lennon and Paul McCartney about it or giving them the chance to buy. The Northern Songs Ltd. was in 1963 by Dick James (music publishers), Brian Epstein (Music Manager) and the songwriters John Lennon and Paul McCartney to the editor of the Lennon / McCartney founded -Songkatalogs and since 1965 a Public entity . However, after Epstein died in 1967, Lennon and McCartney tried to renegotiate their publishing business with Dick James. Lennon and McCartney tried to negotiate a controlling stake in the Northern Song catalog for themselves, but their attempt to gain control of their own songs, part of a long and fierce battle, failed. Lew Grade's financial might, their opponent in this bidding contest, ensured that the Northern Songs catalog came under the control of Britain's ATV. Allen Klein (then de facto Beatles manager) tried to negotiate a deal with Apple Corps to buy the "jewel of the music industry" from Associated Television, but his attempt also failed.

In 1970 ATV formed a joint publishing company with Kirshner Entertainment called ATV-Kirshner Music . The temporary partnership agreement expired in 1972 when ATV Music was just being formed to unite all of ATV publishing interests , including Northern Songs. ATV Music remained a successful company in the music industry through the 1970s, particularly because of the Northern songs broadcast daily in the media, "covered" and performed at events by many bands. Lennon and McCartney became co-publishers, whose contracts with Northern Songs expired in 1973.

While ATV Music was successful, the television company's parent company, now known as the Associated Communications Corporation (ACC) , ran into financial difficulties. From 1978 to 1981, ACC's profits declined due to large losses in the film business, and stock prices fell dramatically. Grade put the Northern Songs catalog up for sale and received feedback from some prospective buyers: Paul McCartney and Lennon's widow Yoko Ono offered £ 21 million for the Northern Songs catalog. Lew Grade wanted to sell ATV Music as a whole and turned down the offer of the two in late November 1981. Two months later, the Australian businessman Robert Holmes à Court, who had already acquired shares in ACC, made a takeover offer. Grade resigned as chairman and was replaced by Holmes à Court. After Holmes à Court took control of ACC, ATV Music was no longer for sale.

Sale of ATV Music to Michael Jackson in 1985

Michael Jackson bought ATV Music on August 10, 1985

In April 1982, African American singer Michael Jackson recorded " Say Say Say " for Paul McCartney's Pipes of Peace album at Cherokee Studios Hollywood . Jackson stayed at McCartney's home. One evening Paul McCartney took out a thick, bound notebook with all the songs he had the publishing rights to. Jackson opened his eyes and studied the notebook closely. He asked how to buy songs and what they are used for. McCartney told him that publishing music was a way to make a lot of money.

Anyone who owns a music catalog with famous songs that are broadcast daily in the media around the world and "covered" by many bands and played at events can earn millions without having to lift a finger. As a rule, 50% of the income per song played goes to the publisher (the owners of the usage rights) and the other 50% to the composer and lyricist (the authors). One of the most popular catalogs in the music industry was the ATV Music catalog. He was the "jewel of the music industry". In September 1984 it was among the ten most valuable music catalogs in the entertainment industry and at that time consisted of several small catalogs with a total of around 4,000 songs by renowned artists. This also included the Northern Songs catalog with 251 Beatles songs. To get such a popular catalog you need a lot of money, patience, negotiating skills, relationships and luck.

The purchase of the ATV catalog was no easy undertaking for Michael Jackson and his shrewd music attorney, John G. Branca . Bert Reuter, who handled the purchase of ATV Music for Holmes à Court, said PaulMcCartney had been given the right of first refusal , but Paul hadn't wanted to at the time. As a gentleman and friend, Michael Jackson also let Paul McCartney go first and gave him two opportunities to bid on his own songs, but McCartney was not ready to do so. He was of the opinion that the catalog was still too pricey . Yoko Ono, John Lennon's widow, didn't want to either. Only when Michael Jackson had clarified through his lawyer John Branca that the two did not want to bid, he gave him the green light - but very quietly and quietly. After a long struggle, there was only one last stubborn team of bidders left: Charles Koppelman and Martin Bandier , the founders of the entertainment company in New York. The two gentlemen were particularly serious and outbid Michael Jackson by $ 2.5 million. Koppelman and Bandier had asked the Music Corporation of America for financial support. MCA Records President Irving Azoff owed a favor to Michael Jackson's attorney, John Branca (Branca helped Azoff get a lucrative job as a consultant on The Jacksons' multi-million dollar Victory Tour in 1984 ), so he asked him to take care of it that Koppelman and Bandier were not supported. Branca managed to convince Azoff and Michael Jackson was back in front of the race. Since he was able to raise $ 47.5 million quickly and without problems and at the same time also complied with the seller's request - Robert Holms à Court - to visit him briefly (in October 1985) in Perth , Australia , the latter finally agreed. Branca set up the contract so "that Michael could claim an annual depreciation of $ 5 million for eight years, for a total of $ 40 million." For Martin Bandier and Charles Koppelman, who believed the catalog was already in their possession, this was a bitter blow. John Branca just turned the money off for them shortly before their destination.

On August 10, 1985, a new chapter was written in the history of the music industry, because the "jewel of the music industry" went to an individual , and that also to an Afro-American entertainer, which is atypical due to the high price . In contrast to his fellow campaigners, the skinny, almost 28-year-old had no academic qualifications, and yet he proved to everyone that anything is possible if you just believe in it and work on it. For the established white business world full of lawyers and auditors, this was literally the blackest day in music history. Michael Jackson's financial power began to become a problem for her and a thorn in the side of some. His life had not been easy before he bought the catalog, but now it was getting really uncomfortable for him in every way.

While Michael Jackson was swimming on the wave of thriller success and, together with his lawyer John Branca, landed the most brilliant coup in the music industry, Paul McCartney felt betrayed by him. McCartney, who had missed it at the beginning of his career out of ignorance to save his own songs, was at the time one of the richest musicians in the world. After the sale of ATV Music to Michael Jackson, he was extremely annoyed about his "insolence". Yoko Ono, on the other hand, saw the sale of ATV Music (with the Northern Songs catalog) to Michael Jackson as a blessing: "Business people who are not artists themselves do not have the view Michael Jackson has. He loves the songs. He cares very much about her. " She added that if they owned the Northern Songs, there would be a fight. Neither McCartney nor she need that. "If Paul got the song rights, people would say, 'Paul got John after all'. And if I had got them, they'd say, 'Oh, the Dragon Lady strikes again.' According to Branca, Jackson's comment was: "If he [McCartney] didn't want to invest 47.5 million in his own songs, he doesn't have to complain to me now. [...] He has to deal with it now. "

Financial basis for humanitarian projects 1985 to 1995

"Michael Jackson was not just about making money with these catalogs, although - as a man of records - he naturally wanted to become the richest entertainer in the world. The versatile artist was a seldom cunning visionary with a sure feeling for trends, but he was never acted coldly calculating and unabashedly like a high finance banker. There were various reasons why Michael was interested in such big deals, such as the long-cherished desire to enter the film industry financially. The most important thing, however, was that he could be more active and targeted with this additional income Fund his charity projects. The catalog should become the financial basis for his humanitarian projects. But he was also interested in the artistic side. He loved the music in which he invested, especially the Beatles songs. ", write Sophia Pade and Armin Risi in her Michael Jackson biography.

However, in 1994/1995 Sony Music Entertainment went into the red for the first time. At that time, the double album HIStory - Past, Present and Future Book I and the merger of the two catalogs (Sony and ATV) contributed significantly to the fact that Sony's income improved again.

Fusion ATV Music with Sony Music 1995

Michael Jackson signed the "Music Deal of the Century" on November 27, 1995. Eyewitnesses included Michael Schulhof , President and CEO of Sony Music Entertainment International and Tommy Mottola , CEO of Sony Music Entertainment USA.

On November 27, 1995, the two music publishers ATV Music and Sony Music merged. The gigantic Sony / ATV Music publishing house was born. It became the second largest music publisher in the world. The Sony / ATV catalog is just as popular in the entertainment business as an oil well in the raw materials and energy industries. Again Michael Jackson's attorney John G. Branca was the man of the hour in which he negotiated the contractual details for Michael Jackson. Jackson received a 50% stake in the merged catalog and was granted full veto power on all licensing decisions.

“Each party to the arrangement has the right to appeal ( veto right ). Both sides must agree to a decision before it can be carried out. If one of the parties does not consent to a decision, it cannot be implemented. Michael Jackson is not only the most successful entertainer in history, he is also an astute businessman. Michael understands the importance of copyright law and the role it plays in introducing new technology. "

- Michael Schulhof, President Sony Music Entertainment International

Michael Schulhof also announced that Sony / ATV Music Publishing would be managed by Sony, with Paul Russell as Publishing Director. Michael Jackson, in turn, became a member of the Board of Directors .

The agreement with the right of veto should still give Sony a headache, because Michael Jackson often thought more in the interests of the artists and did not simply want to release their songs for any purpose. If an idea from the Sony representative struck him as too exploitative or too insignificant, he voted against it and the matter was settled. As a "bonus," according to the media, Michael Jackson received $ 115 million (others write $ 90 million) - more than double what he invested in 1985. In addition, there was the unimaginable value of the huge catalog, which now belonged to him 50% and which grew in song repertoires year after year and thus became more and more valuable. But best of all , as a co-owner of this source of money, he was paid tens of millions of dollars in open-ended compensation every year without lifting a finger. For the second time he landed a brilliant coup with the help of his music lawyer John Branca. It was the music deal of the century.

Collaboration with Sony, Jackson's break with Sony from 1995 to 2001

At the time, Michael Jackson had no idea that the actual price would be much higher than all the money in the world. Because with the merger Sony had managed to get a foot in the door of the largest treasury in the music industry. The possibility of one day wholly owning the ATV Music catalog of Beatles songs was now within reach. Jackson's own Mijac catalog, which contained most of his own songs, was not the subject of these contracts, but here too, with perseverance and patience, Sony now had some options.

Michael Jackson received half of the payouts annually, or half of $ 80 million (not counting his own catalog, which was estimated at $ 10 million in payouts annually). The dividends had almost doubled by 2001 . Such power in the hands of a single artist had never existed in the music industry before. It is obvious that a company like Sony Music Entertainment could not tolerate this unnecessarily high "loss of income" (through Michael Jackson's 50% stake) and Michael Jackson's position of power in the long run.

While Michael Jackson announced to the New York Post on April 20, 2001 that, in addition to a visit to Palestine and Israel, he was also planning to travel to Sudan to start a campaign against child slavery , he received increasingly bad headlines again. This time his financial position was taken apart. Although these "analyzes" had no or only questionable source information, they were spread by the media with exaggerated drama. It was alleged that Michael Jackson was in serious financial difficulties and was therefore forced to sell his catalog share. Indignantly, Jackson denied this rumor by publicly commenting on it on May 9, 2001:

“I want to clarify a ridiculous rumor. The 'Beatles Catalog' is not for sale, was not for sale and will never be for sale. "

- Michael Jackson, entertainer and Sony / ATV music publisher

Like the whole world, Michael Jackson was deeply shocked by the terrorist attacks on September 11, 2001 . All hopes for an early peace in Palestine and Israel as well as in Sudan were suddenly destroyed. A trip to Israel or Sudan was no longer possible in this explosive situation. But Jackson responded immediately with the production of his previously unreleased charity song What More Can I Give , which he wanted to sing (similar to We Are The World ) with a super troupe of world stars. But now it became clear how tense the relationship between Michael Jackson and Sony had become. The board of directors, especially Tommy Mottola , blocked his plan by simply refusing to publish the song. Sony's explanation to MTV was that the single did not want to collide with the simultaneous release of the Jackson album Invincible , the charity song was not included on the album; there are also problems with the release of rights for artists such as Ricky Martin and Celine Dion . "One could have expected that problems of this kind would take a backseat to a charitable initiative immediately after 9/11. It would hardly have asked the record companies and possible advertising sponsors anything to support this campaign.", Sophia Pade and Armin Risi write in her Michael Jackson biography. With this decision, the management of Sony Music Entertainment showed that they had very different priorities than humanity and charity. Jackson defied Sony Music Entertainment and took it all into his own hands by holding a benefit concert entitled " United We Stand: What. What. " On October 21, 2001 at the Robert F. Kennedy Memorial Stadium in Washington, DC with 25 famous artists and an audience of 54,000 More Can I Give "and raised $ 3 million to be donated to victims of the September 11, 2001 terrorist attacks.

To this day hardly anyone is known what Jackson did for the bereaved in the days after September 11, 2001. "He was all the more angry because the heads of Sony Music Entertainment blocked him, because he knew from experience that the release of the song What more can I give? On the occasion of this earth-shaking event would have brought in at least $ 50 million, 16 times as much It was his intention, and the intention of all the artists who had also contributed to it free of charge, to donate the proceeds directly to those concerned without deduction and as quickly as possible. But Sony was not interested in taking this chance for a disinterested act The only thing that the company's decision-makers achieved indirectly through their refusal was that Michael Jackson's name was linked to porn producer Marc Schaffel , as if Jackson were responsible for the deeds of the myriad people who appeared in his life ( someone had found out that Schaffel used to produce pornographic films). This was another hit for the media - and fatal for Jackson's new album. It was probably the drop that broke the barrel, because Jackson announced in his disappointment that he would leave his record company (Sony) after the end of the contract. That was just before Invincible was released on October 29, 2001. "

After Michael Jackson had told Sony that he would not renew his record contract, that is, he would get out, the promotion for his new album was noticeably slow. He had complied with his contract with Invincible by finalizing it, albeit later than planned, and clearing it for publication. Sony, on the other hand, seemed increasingly to be ignoring the album, and radio and television networks barely played Jackson's new songs.

Acquisition of the Baby Mae Music Catalog and Acuff-Rose Music Catalog in 2001

In November 2001 the group signed an exclusive songwriting and co-publishing contract with rock singer Tony Martin . He bought Martin's Baby Mae Music catalog with 600 songs, including Joe Diffie 's Third Rock from the Sun and Jeff Carson 's Not on Your Love . In July 2002, Acuff-Rose Music Publishing , a leading US music publisher with 55,000 country songs , including by Hank Williams , The Everly Brothers and Roy Orbison, and the master recordings of the expired label Hickory Records , bought Acuff-Rose Music Publishing for $ 157 million .

Michael Jackson's anti-Sony campaign 2001-2003

On June 6, 2002, Michael Jackson held a press conference at Al Sharpton's civil rights organization National Action Network in New York City under the motto Justice for Recording Artists , during which he announced that he would initiate an investigation into the major record companies who exploit their artists. He said, "Record companies must start treating their artists with respect and esteem and treating them financially fairly. So I'm proud to join this alliance that represents all artists." In that speech, Jackson also emphasized that Sony had wrongly made claims of $ 200 million. He found this "outrageous and insulting". Sony, however, publicly denied it and claimed never to have said or written anything like that.

On June 15, 2002, Michael Jackson drove a fan-organized open-top double-decker bus to a demonstration in front of the Sony building on Great Marlborough Street in London . He had never been seen so aggressive and ready to fight in public. He brought his anti-Sony campaign to a climax when he gave the Michael Jackson killer thriller speech directed against his record company to his fans that evening at the Equinox nightclub . But first he showed a sign that a fan had given him beforehand. It had three words on it: $ ONY KILLS MUSIC. He then made his fans aware that sooner or later many great dancers and singers were broken, torn inside and usually just sad because they were cheated and exploited by the music companies, and that he too had billions of US dollars for Sony. Dollars brought in. Sony really thought its thoughts were always on music and dance, and usually it is. But Sony could not have imagined that he would outsmart her as a performer. He added that he only owed Sony one box set of two new songs, but that wasn't a big deal for him because he had 120 unreleased songs ready for each of his released albums. Then he said:

“So I'm leaving Sony, I'm free ... and I own half of Sony! Well, I own half of Sony's releases. I break up with them and they are very mad at me for simply getting a good deal [regarding the Sony / ATV catalog]. So they want revenge on me by trying to destroy my new album! But I've always said art - good art - never dies. ... And Tommy Mottola is a devil! "

- Michael Jackson, entertainer and Sony / ATV music publisher

After years of silence, Michael Jackson launched a head-on attack against the giant Sony and the record boss Tommy Mottola, whom he now publicly called a "devil". For people who knew Jackson's shy nature, this was a very rare and serious revelation. On July 6, 2002, he and hundreds of fans demonstrated again as part of his anti-Sony campaign in an open-top double-decker bus to the Sony Tower, the main headquarters of Sony Corporation of America in Manhattan . The bus drove once around the block while Jackson held up a poster with one hand on which three faces were to be seen, each with a red cross over their mouth (for "no speaking"). These were the faces of two artists who at the time also had contractual disputes with Sony and had failed due to the power and exploitation of the group: Mariah Carey (Tommy Mottola's ex-wife), George Michael and Michael Jackson himself - perhaps the only artist in the world who, thanks to his Sony / ATV catalog share, was able to compete with this group at all. At least he was able to draw attention to his machinations to such an extent that the world finally looked. On the evening of the same day, Michael Jackson spoke at a meeting at the headquarters of the National Action Network about corruption in the music industry : "The record companies are conspiring against the artists. They steal, they cheat, they do everything they can, especially against them black artist. Tommy Mottola is evil ... a racist ... and very, very, very devilish. " With the word "racist" he referred to one of his fellow musicians, whom Mottola is supposed to have called a "fat, black nigger", and said: "I can't approve of that. It's wrong." Jackson aimed particularly at the hidden, yet existing racism of the record companies, which many now suppress or deny. Freelance journalist Norman Kelley confirmed Jackson's harsh accusations against the record industry: "Black music is like a colonized nation, a cheap source of labor; these young people come in and know nothing of the business and how it works. Blacks control nothing [in the music industry], and not a single black label is still independent, everything runs exclusively through the big [...] major labels . " Three days later, on July 9, 2002, Jackson gave his speech on "Equality for Blacks in the Music Industry" at the headquarters of Al Sharpton's Nation Action Network (here heavily abridged): "The system, starting with the record companies, has changed Giving them huge advantages [...] and I need you to understand that what we are fighting for is very meaningful, because I'm sick of it, I really, really have the manipulation Fed up. I'm so sick of the press manipulating everything that happens in this regard. They don't tell the truth, they lie. And they manipulate our history books. Our history books lie, you should know that. [...] Otis Blackwell was a prolific and phenomenal writer, he wrote some of the greatest Elvis Presley songs, and he was a black man, he died impoverished and no one knew about this man, they didn't write a book about him to my knowledge en, because I've been looking for it all over the world. [...] You have to remember one thing: the minute I started breaking all records - I broke Elvis 'records, I broke the Beatles' records - the minute my albums became the best-selling in the history of the Guinness Book of World Records, they called me a freak overnight, they called me a homosexual, they called me a child molester, they said I was going to try to bleach my skin. They did everything they could to turn the public against me. This is all a total conspiracy [...] We have to do something! We have a long, long time ahead of us and there has to be a change. So let's hold up our torches and get the respect we deserve. [...] And remember: We are all brothers and sisters, no matter what skin color we have - no matter what skin color we have! "

Sony's reaction was not long in coming. They countered in the New York Daily News on July 10, 2002 : "We are appalled that Jackson is sinking so deep in his perpetual publicity urge." Sony producer Cory Rooney told the New York Post : "Michael Jackson uses racism as an excuse. A desperate escape for a frustrated man whose big project flopped." The German magazine Manager added one more thing: "Sony sees the pedophilia allegations against the musician as the cause of the poor sales figures ." Manager quoted Sony: "Many parents therefore reject him." Sony did not shy away from using malicious media clichés to use them against Jackson. "In order to make the racism allegation implausible, it was tactically brilliant that instead of Tommy Mottola an African American, Cory Rooney, took a position. As Vice President of the A&R department of the Epic Records label of Sony Music, Corey Rooney was down in the hierarchy and could they cannot afford to say anything other than what corresponds to the position of the group, especially since Mottola was also his superior ", write Sophia Pade and Armin Risi in their Michael Jackson biography. Another interview he gave seven years later, shortly after Jackson's death, proves that Rooney was not telling the truth in July 2002. Totally contrary to his earlier statement, Rooney now said that he was not surprised when Jackson abused Tommy Mottola in 2002. In the interview it becomes clear that he sympathizes with Jackson, because he sympathetically describes his distress at the time, because nobody had supported him because of Sony and Mottola.

In January 2003, Sir Howard Stringer surprisingly fired his CEO, Tommy Mottola, which caused a sensation in the music industry because Mottola had made a name for himself (at Yetnikoff's expense ) for over a decade and grew into a powerful record boss. "The likelihood is alarmingly high that Michael Jackson's campaign against Sony was related to his dismissal. The megastar had become too uncomfortable and made too much fuss. And because he basically - whatever he did - caused a stir, the world began to look closer and to worry about Sony. Obviously, Stringer had to make a "sacrifice" in its own ranks in order for the storm to subside. As far as Michael Jackson was concerned, other measures had to be taken. "

Three weeks after Mottola's release, Martin Bashir's maliciously deceptive documentary Living with Michael Jackson was released . It was so deviously cut and commented that many viewers believed Jackson was mentally deranged and also a pedophile. Just then, out of nowhere, were copies of Jordan Chandler's detailed, but demonstrably untrue, allegations against Michael Jackson - ten-year-old documents that should have been locked away with Jackson's music attorney, John G. Branca . The entertainer couldn't trust anyone anymore and had to dismiss his entire team of consultants without notice. In the eyes of Jackson's friends and fans, who watched it closely, the whole thing was a carefully planned and perfect diversion. After Bashir's work, no one cared about Michael Jackson's anti-Sony campaign or the real reason for Mottola's firing. Instead, Bashir's "portrait" of the megastar was on everyone's lips - and in the background, prosecutor Tom Sneddon and his entourage set the course for their second extermination train, which took place on November 18, 2003 when the worldwide public search of his Neverland ranch took place , two days later the headline "Michael Jackson in Handcuffs "and ultimately led to the Arvizo Trial of Michael Jackson in 2005.

Publishing director speaks publicly about Sony's behavior towards Jackson in 2005

"At the beginning of March 2005 there was a meeting between Sony / ATV Music Publishing Director Paul Russell and the journalist Lynton Guest . The topic was a possible biography of Russell. Since at the time of this meeting the big trial against Michael Jackson was going on, they came automatically too Paul Russell knew the megastar well because of his preeminent position as Sony Publishing Director, and one of the topics discussed during the conversation was his financial position, as the mass media claimed that Michael Jackson was bankrupt . The question of finances was raised by the public prosecutor's office ( Tom Sneddon & Co.) who tried by all means during the trial to question Michael Jackson's noble motives regarding the documentary Living with Michael Jackson (Jackson wanted his resulting income for Charitable causes) However, Jackson wasn't bankrupt, he just had cash problems and it's not the same. His fixed assets have long since exceeded the billion mark, but very few people knew that. However, Paul Russell, who managed the Sony / ATV Music catalog, knew something the media didn't know, or at least didn't cover, and he believed it pointed to a dark background. Michael Jackson was definitely not bankrupt. But someone tried him with guile into bankruptcy to drive ... Paul Russell told author Lynton Guest that Jackson since 1999 when Bank of America had taken several loans totaling 220 million US dollars. To get these loans, Jackson was forced to put half of his stake in the Sony / ATV Music catalog as collateral. But to be able to encumber the catalog at all, he had needed Sony's approval. The corporation had agreed to do so if Jackson granted them the right of first refusal on his share, which he had deposited as security. One can understand that Sony made this not insignificant point as a condition, but here it shows that it could be in Sony's interest if Michael Jackson got into bigger financial difficulties. "Sony's strange behavior towards Michael Jackson started with the Chandler-Fall 1993/1994, when the record company did not fully support the biggest draft horse of their label. Instead of strengthening Michael Jackson's damaged image, Sony distanced itself more and more from him, and Mottola turned increasingly to other artists. Jackson had to some of his Financing short films yourself in order to be able to make them at all.

In his book The Trials of Michael Jackson , Lynton Guest describes how the then (1994) newly elected President Norio Ohga of the Sony Corporation as successor to the company's founder Akio Morita had two special goals with regard to Michael Jackson: On the one hand, he wanted Sony's name to be like that As little as possible was associated with Michael Jackson because he had been stigmatized with the catchphrase pedophilia, and on the other hand he wanted to get hold of the ATV catalog. Due to Jackson's incipient liquidity problems after the abuse allegation, the Sony board of directors was able to realize the already described merger with Michael Jackson's catalog.

With the offensive "Sony War" (2001-2003), the new abuse allegation (November 2003) and the subsequent court case (2005), his debts had grown to around 300 million US dollars. In order not to lose his share of the Sony / ATV Music catalog to Sony, he had also deposited his Mijac catalog with his own songs and his Neverland Ranch as collateral. In summary, Russell said, "Parent company Sony Corporation not only approved Jackson's loan, but forced and manipulated the whole process.

On March 20, 2005, an article by Lynton Guest, Kiki King and Dominic Turnbull appeared in the Mail on Sunday about Michael Jackson's financial situation, in particular about the loans and their explosive background, namely that Jackson bought his shares in Sony / ATV Music for these debts Catalog as well as his own songs. From the quotes, Sony knew where these journalists got their information from, even if Russell's name was nowhere explicitly mentioned. Shortly after this article was published, Paul Russell, who had resigned from all offices at Sony Corporation in the spring of 2003, received a letter from Sony not to disclose anything he knew. Taking the letter as a clear warning, he said, "If Sony's letter has any legal basis, it means I can't talk to anyone about the music business, forever." Commented Lynton Guest, "Sony has for years allowed people to write books, appear on television, and make public comments about Michael Jackson's affairs, and now they seem to be afraid of what Paul Russell might expose. What on earth Is that what they [Sony executives] are trying to hide? "

Acquisition of further music catalogs, new technologies, high losses from 2006 to 2009

In 2006, Sony gained operational control over Sony / ATV music publisher and was granted the right of first refusal on Michael Jackson's 50% catalog share for $ 250 million.

The digital sheet music provider Musicnotes.com announced in June 2006 that it had signed a long-term agreement for the distribution of sheet music with Sony / ATV Musikverlag. Musicnotes.com would produce and sell digital sheet music and guitar tablatures from the extensive Sony / ATV Music catalog. "As music publishers, we always have to look for new and innovative ways to promote our songs and songwriters," said then Sony / ATV Chairman and CEO David Hockman .

Another merger came in 2007 when Sony / ATV bought the Famous Music publishing house for 370 million US dollars with a music catalog of more than 125,000 songs (e.g. Moon River and Footloose ). The purchase, which went out from the US media company Viacom , also included the assumption of the debt of 30 million US dollars. The song catalog also includes hits by Eminem , Akon , Linda Perry , Björk , Shakira and Beck as well as the film scores of the Viacom divisions Paramount Pictures (which founded the record company Famous Music in 1928) and DreamWorks Pictures .

Sony / ATV revived Hickory Records as an internal imprint label with Relativity Entertainment Distribution (RED) in 2007. Sony / ATV also bought the recordings from Dial Records , Four Star Records and Challenge Records .

In early 2009 Sony suffered huge losses - up to $ 1.7 billion. The deep red numbers were so devastating that thousands of jobs had to be cut. The situation seemed even more drastic for Sony than in 1994/1995. Sir Howard Stringer considered what measures could give a company like this a boost in the blink of an eye, and responded - in addition to job cuts - by closing three Japanese plants. Stringer and Co. urgently needed an upturn in 2009 and had to come up with something quickly. "It must have been a relief for the company when the music attorney John Branca got involved again in Michael Jackson's business practically five to twelve," write Sophia Pade and Armin Risi in their Michael Jackson biography.

Michael Jackson's negligent homicide, high profits 2009

After Jackson was negligently killed on June 25, 2009, Branca and McClain took over management of his inheritance, and it wasn't long before initial negotiations with Sony began, making Michael Jackson's most successful music documentary, This Is It, and the biggest record deal to date Music history emerged: John Branca signed a seven-year contract with Sony for 250 million US dollars. "Michael Jackson's death is the most lucrative event in entertainment history to date," write Sophia Pade and Armin Risi in their Michael Jackson biography.

Two weeks after Michael Jackson's death, Sony / ATV Music catalog revenues were re-estimated at around 750,000 songs, at $ 500 million for 2009 as a whole. 50% went to Sony / ATV Music artists (lyricists and Composers) and the other 50% to the Michael Jackson estate and Sony (the owners of the license rights). That meant: $ 125 million in revenue for Sony and $ 125 million for the Michael Jackson estate. The value of Michael Jackson's Mijac catalog also increased many times over. All Michael Jackson products earn many more millions of US dollars annually. We are talking about an estate with a total value of several billion US dollars. John Branca and John McClain, the administrators of the Michael Jackson estate, now receive 13% of all income. According to this, they would personally earn US $ 16,250,000 per year on the master catalog alone - provided the estimates are correct (this does not include all the other companies and holdings from the Michael Jackson estate and from the Mijac catalog).

Takeover of the administration of EMI Music Publishing 2012

In November 2011 Citigroup announced that the EMI Group , one of the four largest major labels , would be broken up and the business units “EMI Music” and “EMI Music Publishing” would be sold individually. The music business, i.e. the main part of the group, in the form of shares was taken over by the American Universal Music Group , a subsidiary of the French Vivendi group and the largest music group in the world , for 1.9 billion euros . An international consortium led by the American publisher of Sony's second largest music label - Sony / ATV Music Publishing - acquired the exploitation rights for 2.2 billion dollars in the form of "EMI Music Publishing", the subsidiary for EMI's publishing business. As investors, Sony and the Michael Jackson Estate Administration participated as the main shareholders with 38%. The remaining 62% was split between a conglomerate of five parties (Mubadala Development Company PJSC, Jynwel Capital Limited, The Blackstone Group, GSO Capital Partners LP and David Geffen ). Finally, a few sub-labels and EMI's stores in various parts of Europe went to Warner Music Group , the third largest music company. Furthermore, the German BMG Rights Management , the fourth largest music company for some time, which had competed unsuccessfully as a competitor to Sony for the takeover of the entire EMI Music Publishing, received the single label Mute Records , whereby it split the distribution of it with Sony Music. In the period that followed, BMG Sony bought further parts of the EMI Music Publishing catalog.

On September 21, 2012, EMI UMG sales in Europe and the United States were approved by the European Commission and the Federal Trade Commission. So that the market power of the new company would not become too great, the EMI record label Parlophone , Mute Records and other assets had to be sold. Parlophone has contracts with artists like Coldplay and Pink Floyd .

The Sony / ATV Music publishing house is now the largest music publishing company in the world with over 2 million songs, which is 1.25 million more than before the management takeover of EMI Music Publishing. Sony Music Entertainment speaks of an annual turnover of around 1.25 billion US dollars. One suspects, however, that it is much higher because Sony / ATV Music already had sales of 1.9 billion US dollars in 2011 with 750,000 songs - i.e. still without EMI Music Publishing. If the numbers are correct, the Sony / ATV music publisher should be making at least $ 2.5 billion to $ 3 billion annually as a result of the EMI Music Deal.

Acquisition of Michael Jackson's catalog share 2016

In April 2015, Wikileaks released numerous "hacked" emails from Sony Corporation computers . One person who was brought into the limelight by these revelations was the music attorney John G. Branca , who had handled the purchase of the ATV Music catalog for Michael Jackson in 1985, but also dismissed twice without notice by Jackson due to a serious breach of trust and with the help of a submitted will but had been appointed administrator of the Michael Jackson estate. The New York Post published an article on April 17, 2015 with the headline: "Michael Jackson's CFO also has a part-time job at Sony / ATV". From the emails it emerged that Branca not only represents the Michael Jackson Estate (estate administration), but also - as a lucrative part-time job, as it were - sits on the board of Sony / ATV and is dearly paid for this consultancy work. His salary, which started at $ 500,000 in 2014, was slated to increase to $ 1 million in 2015, according to emails leaked about Sony hackers. "The fact that Branca is on either side of the negotiating table raised some questions from outside observers. 'This is a serious conflict of interest' [...] However, Branca supporters say he is only advocating for the interests of the Jackson family by sitting even closer to the source of their profits; as a consultant to Sony, he could help increase the music company's assets, for example through the acquisition of new music catalogs, but only as long as Michael's estate Jackson - through its share in Sony / ATV-Musikverlag - participates in the profits. The two authors Sophia Pade and Armin Risi write: "That John Branca is closely interwoven with Sony had been known for a long time, and Michael Jackson also found out about it Which is why he severely separated from him in early 2003. When Michael announced his comeback in March 2009, Branca reached out to AEG Live to signal that he was very interested in being a part of the project. That only worked when Tohmé [Michael Jackson's manager] was dismissed without notice and Leonard Rowe was finally forced out, whereupon Frank DiLeo (Branca's old friend) suddenly became Michael Jackson's manager again. And through DiLeo, Branca came back to Michael Jackson's world, only to produce a will immediately after his death that made him the head of the Michael Jackson estate administration. The emails made famous by WikiLeaks now show how closely Branca is connected to Sony. In 2014, he assumed a key advisory role at Sony / ATV, with payment from Sony, and that payment was doubled in 2015. Today, in retrospect, it's clear why Sony was willing to pay $ 1 million a year in salaries. As a result of his mutual activity, the decisive step was initiated in 2015 that Sony was able to acquire the entire Sony / ATV catalog. "

On March 14, 2016, both sides signed a legally binding letter of intent . Sony's press release of March 15, 2016 shows that Sony is paying around $ 750 million to acquire Michael Jackson's catalog stake. The Michael Jackson Estate retains a 10% stake in EMI Music Publishing and remains owned by Mijac Music with most of the Michael Jackson songs. The whole transaction and overwrite should be completed by late 2016 or early 2017. The Michael Jackson Estate also issued a press release on March 15, 2016, aimed primarily at the global fan base and intended to explain the reasons why Branca and McClain took this step.

Acquisition of further music catalogs since 2016

On June 27, 2017, Sony / ATV agreed to manage the music publishing rights of the French film production and distribution company EuropaCorp , after the music publisher had already bought the exploitation rights to 1,500 musical works from the company. The following film production and distribution companies are also dependent on Sony / ATV's administration: Paramount, Nickelodeon , MTV Networks , Showtime , CBS , and DreamWorks (all since the acquisition of Famous Music ); Sony Pictures , 20th Century Fox , A + E Networks , Endemol Shine Group , Hit Entertainment , ITV Studios and Metro-Goldwyn-Mayer .

In March 2018, the world media reported that Mubadala Investment Co. (one of EMI Publishing's 2012 buyers) was in talks with Sony and other interested parties to sell its catalog stake to EMI Publishing. Mubadala wanted about 4 billion US dollars for this, almost twice as much as the Sony-led group paid six years ago. On May 22, 2018, Sony announced that Sony Corporation of America had signed a binding letter of intent to purchase Mubadala's 60% stake in EMI Music Publishing for $ 2.3 billion . If the purchase becomes legally effective (regulatory approval is pending), Sony will indirectly own approximately 90% of EMI Music Publishing.

Products

Sony / ATV Music Catalog

This is the catalog of songwriters , performers and bands published by Sony / ATV Musikverlag .

Artist 0–9

Artist A

Anastacia on the Resurrection Tour in London , 2015
Andrea Berg (2017)

Artist B

Kenny 'Babyface' Edmonds (2013)

Artist C

Celine Dion (2012)
Christina Aguilera (2010)

Artist D

Depeche Mode (2006)
The Doctors (2012)
Duke Ellington (1971)

Artist E.

Elvis Presley (1970)

Artist F

Frank Sinatra (1960)

Artist G

George Michael (1988)

Artist H

Heino (2013)

Artist i

James Brown (2001)

Artist J

Joe Cocker (2013)

Artist K

Kylie Minogue (2015)

Artist L

Lady Gaga on the Fame Ball Tour (2009)

Artist M

Mariah Carey (2005)
Mary J. Blige (2010)
Modern Talking (2003)

Artist N

Nelly Furtado (2017)

Artist O

Ozzy Osbourne (2010)

Artist P

Pink (2013)

Artist Q

Artist R

Rolling Stones (2015)

Artist S.

Shakira (2014)
Silbermond (2017)
System of a Down (2005)

Artist T

Taylor Swift (2013)
The Beatles, 1964
Tim Bendzko (2017)
Tony Christie (2015)

Artist U

Udo Juergens (2010)
Usher (2016)

Artist V

Artist W

Whitney Houston (1991)

literature

  • Lynton Guest: The Trials of Michael Jackson. Aureus Publishing, Vale of Glamorgan (Wales) 2006

Web links

Individual evidence

  1. ↑ As of March 31, 2018, Sony Corporation Annual Report for Fiscal Year 2018; The number includes the Sony / ATV catalog with 2.3 million songs and the EMI catalog with 2.06 million songs.
  2. ^ Pye Records Deal , Financial Times London, October 23, 1958, p. 1
  3. ^ ATV Goes into Music Publishing , Financial Times London, June 3, 1966, p. 9
  4. ^ ATV Buying up Pye Records for £ 2.1m Financial Times London, July 13, 1966, p. 1
  5. ^ ATV, Kirshner Organize Global Publishing Co .; Maclen In Fold. Billboard Magazine, Aug. 22, 1970, p. 7
  6. ^ Moore, John. McCartney Fails to Regain All His Yesterdays. Financial Times London, November 20, 1981, p. 38
  7. ↑ Jones, Peter. Beatle Catalog Hopefuls Hit 'All Or Nothing' Snag Billboard-Magazine, December 12, 1981, p. 45
  8. ^ Holmes à Court, Michael Robert Hamilton (1937–1990) . Australian Dictionary of Biography Online Edition. Melbourne University Publishing, The Australian National University. Last accessed: January 2, 2018
  9. ↑ West Coast Publishers Keep Things Happening Record World Magazine February 27, 1982, p. 8
  10. ^ Hilburn, Robert: The long and winding road . Los Angeles Times of September 22, 1985.
  11. ^ J. Randy Taraborrelli: Michael Jackson: The Magic & the Madness. Birch Lane Press, New York 1991; New edition 2003, pp. 335-338
  12. ^ Doyle, Jack: Michael & McCartney, 1990s – 2009 . The Pop History Dig of July 7, 2009
  13. ↑ Taraborelli (1991), p. 336
  14. ↑ In Perth, Michael Jackson appeared briefly on TV on Channel 7 Telethon to appeal for donations for the Princess Margaret Children's Hospital.
  15. ^ Hilburn, Robert: "The long and winding road". Los Angeles Times of September 22, 1985.
  16. ↑ Taraborelli (1991), p. 550
  17. ↑ a b c d Taraborrelli (2004), pp. 335–338
  18. ↑ Quoted from the 2011 CNN interview with John Branca.
  19. ↑ Quoted from Pade, Risi: Make that change, Govinda 2017, pp. 165–166
  20. ↑ JET: "Michael Jackson and Sony enter joint publishing venture valued at $ 600 million", p. 36 (November 27, 1995)
  21. ^ The fight over Michael's millions . Fortune Magazine October 23, 2009
  22. ↑ With Jackson's death, Sony actually got access to the license rights through the good connections with the estate administrators.
  23. ↑ Jacko joining Rev. Al's slave crusade ; New York Post dated April 20, 2001. Accessed June 9, 2018
  24. ↑ Jackson 'will not sell' Beatles' songs . BBC News of May 10, 2001. Accessed June 9, 2018
  25. ^ Pade, Risi: Make that chance. Govinda 2017, p. 277
  26. ↑ Lorette C. Luzajic talks with Michael Jackson Expert Charles ; Interview from June 12, 2010
  27. ↑ Quoted from Pade, Risi: Make that change. Govinda, 2017, pp. 277f.
  28. ↑ "Since the Chandler case, Jackson's songs have rarely been on the radio. Compared to his four previous albums, HIS tory was played far less, although it was a bestseller. So it was not due to a lack of audience interest. In suspicions circulated around the music scene that Jackson had been blacklisted. " Pade, Risi: Make that change, Govinda 2017, p. 280
  29. ^ Sony / ATV Music Publishing signs Tony Martin . Nashville Business Journal dated November 20, 2001. Last accessed June 3, 2018
  30. ↑ Jackson made Exeter FC director . BBC of July 3, 2002. Last accessed: June 3, 2018
  31. ↑ The type of box set we were talking about was a compilation of several CDs or DVDs with previously unreleased material and the most successful titles by an artist, sold in special packaging and primarily aimed at collectors.
  32. ↑ MJ Killer Thriller Speech on June 15, 2002 at Equinox nightclub, London
  33. ↑ Michael Jackson's Speech at National Action Network, July 6, 2002 (en)
  34. ↑ Jacko gets tough: but is he a race crusader or just a falling star? ; The Guardian of July 8, 2002. Accessed June 9, 2018
  35. ↑ ibid.
  36. ↑ Michael Jackson's speech against racism in Harlem, July 9, 2002 (en)
  37. ↑ Sony strikes back ; Manager Magazin from July 10, 2002
  38. ^ Pade & Risi: Make that change. Govinda, 2017, p. 284
  39. ^ Pade & Risi: Make that change. Govinda, 2017, p. 297
  40. ↑ The amount of information Lynton Guest received from Paul Russell, and the ongoing trial of Michael Jackson at the time, prompted Guest to investigate further. Based on everything he found, he wrote The Trials of Michael Jackson (published October 2006)
  41. ↑ Quoted from Pade & Risi: Make that change, Govinda 2017, p. 287
  42. ↑ The Trials of Michael Jackson ; Book review June 5, 2011
  43. ^ Lynton Guest: The Trials of Michael Jackson, 2006, p. 14
  44. ^ Lynton Guest: The Trials of Michael Jackson, 2006, p. 15
  45. ↑ Sony / ATV songs to be available in digital sheet music. Los Angeles Business Journal dated June 23, 2006. Accessed June 4, 2018
  46. ↑ Viacom sells Famous Music to Sony / ATV . Company News and Press Releases dated May 30, 2007. Accessed June 3, 2018
  47. ↑ Swash, Rosie: Jackson buys Eminem rights . London: The Guardian. dated May 31, 2007. Last accessed: June 3, 2018
  48. ↑ Quoted from Sophia Pade, Armin Risi: Make that change, pp. 541f.
  49. ↑ Quoted from Sophia Pade, Armin Risi: Make that change, pp. 541f.
  50. ↑ The Wrap: Jackson's Finances: The Wrap Shows You the Money, July 5, 2009
  51. ↑ Music label EMI is smashed. Sony buys music rights. Thomson Reuters, November 12, 2011, accessed July 19, 2012 .
  52. ↑ No. 44 , Hartwig Masuch on billboard.com, January 26, 2012, accessed September 11, 2017
  53. ↑ Universal is allowed to take over EMI , sueddeutsche.de, accessed on September 25, 2012
  54. ↑ Michael Jackson's money man also has Sony / ATV side gig . New York Post April 17, 2015. Accessed June 4, 2018
  55. ↑ Quoted from Sophia Pade, Armin Risi: Make that change, p. 604
  56. ^ Sony and Jackson Estate Reach Agreement for Sony to Acquire Remaining Half of Sony / ATV Music Publishing ; Sony's press release of March 14, 2016. Last accessed: June 5, 2018
  57. ^ Statement from Michael's Estate dated March 15, 2016
  58. ↑ Sony / ATV buys EuropaCorp music catalog for $ 16.5m - Music Business Worldwide . Musicbusinessworldwide.com from June 27, 2017. Last accessed: June 9, 2018
  59. ^ Sony / ATV Music Publishing - LBBOnline Lbbonline.com . Last accessed: June 9, 2018