May 31, 2024 - RSVR
Move over, Spotify and Apple Music, there’s a new player in town. Reservoir Media, a name whispered in the corridors of the music industry, is quietly building a global music empire, and they’re betting big on the explosive potential of emerging markets.
While the mainstream media fixates on quarterly earnings and royalty rates, Reservoir is playing a different game. They’re laser-focused on regions like India and the Middle East, places where music streaming is skyrocketing and cultural influences are rapidly going global.
Their latest earnings call revealed a subtle but powerful shift. It wasn't just about the impressive 20% revenue growth. Buried within the CEO's words were hints of a grand strategy. Partnerships with powerhouses like PopArabia, aggressive signing of superstars like Nancy Ajram, the "Queen of Arab Pop", and a deep-rooted understanding of local markets. This isn't a smash-and-grab for catalogs; it's a calculated cultivation of a global music network.
Goldman Sachs predicts that emerging markets will fuel 70% of new streaming subscribers by 2030, grabbing a whopping 22% of global music revenue. And this isn't some distant future; it's happening now. Luminate's data drops a bombshell: Hindi music's global market share has doubled since 2021, now commanding almost 8%.
Reservoir's strategy is as audacious as it is ingenious. They’re not just buying catalogs; they're weaving together a global network of artists, producers, and songwriters, transcending borders and blending musical styles.
Imagine a Grammy-winning American producer collaborating with a rising Indian hip-hop star, all facilitated by Reservoir’s global reach. This cross-pollination of sounds has the potential to create chart-topping hits that resonate from Mumbai to Memphis.
By entering emerging markets early and at attractive valuations, Reservoir is securing a first-mover advantage that’s the envy of the industry. As these markets explode, the value of their assets will skyrocket, creating massive returns for investors who get in on the ground floor.
Picture this: Luminate predicts India could overtake the US in streaming volume. Now, couple that with Hindi music’s explosive growth. Reservoir, with its strategic positioning, is set to capitalize on a multi-billion dollar opportunity.
The whispers are growing louder. Reservoir Media isn't just riding the wave of the future; they're shaping it. And as the music industry transforms, those who listen closely will hear the roar of a new music order, orchestrated by the silent giant, Reservoir Media.