About the latest global music business Podcast, joined by MBW founder Tim Ingham Emmanuel Zunz,founder one rpmone of the music industry’s most interesting companies and a quiet giant.
At the beginning of its establishment in 2010, one rpm It quickly established itself in Brazil, where to this day it still challenges the market share of major record labels.
Since its success in Brazil, one rpm The company continues to grow globally, offering artists a range of partnerships from low-margin DIY distribution all the way to high-margin full-service deals.
I understand. I need to turn it over. A huge sum of nine figures Per year, one rpm It’s profitable – but it has to be. One of the most striking things about the company, besides the fact that it operates more than 40 offices Globally, this is Zunzi Continue to own the business outright.
he is Never took a penny from private equity or venture capitalhe turned down a number of acquisition offers from major music companies and others.
According to Zunz, one rpm I have been crying for the past few years. He said that from 2021 to today, the company has more than doubled its revenue and profits.
Although the market is full of challenges and competition is fierce, Zunzi Predicting another person’s growth 50% arrive 60% over the next two years.
As he explains in this podcast, Zunz’s goal is simple—to be The fifth largest record company in the world while maintaining a profitable, sustainable business controlled by its founders.
Read the abridged/edited highlights Emmanuel Zunz and Ingham’s Chat below, or listen to the full podcast – either above or on your favorite service…
OneRPM is an independently owned and operated company, but it is also a “primarily” independent company. You have more than 40 offices worldwide and 550 employees. In general, what do you think of the term “indie” in relation to music companies?
The concept of an “independent” company is outdated. For me, and for my company today, we are truly independent because We have never raised any capital or debt.
There is nothing wrong with raising capital and borrowing; [ONErpm’s setup] Meaning I still own the company and I don’t have a boss. In this sense, we are a truly independent company It grows organically, reinvesting our revenue into the growth of the company.
“The music industry has undergone a pretty significant shift over the past 20 years, giving artists more leverage to negotiate better deals and no longer having these gatekeepers deciding who succeeds or fails. It’s a democracy now. ized market.
But if you are an artist, you have to choose between the two one rpm or [a major record company] I think it doesn’t matter if it matters [the company is] Independent or not. What’s important is: What does the company offer you?
Do they offer you meaningful commercial terms? Do they offer services and/or solutions that can help you advance your career? Is it suitable in a variety of ways? If so, go work for that company.
These professions have been around for a long time. They have a lot of value to offer and are changing the way they work in many ways. The music industry has undergone a pretty significant shift over the past 20 years, giving artists more leverage to negotiate better deals; there are no longer these gatekeepers deciding who succeeds or doesn’t. This is a market that is now democratized.
So it doesn’t matter if it’s a public company, a major label, or an independent music company like mine. What matters is: do they provide good solutions and good service? Are the commercial terms reasonable?
Are there significant differences between a “completely independent” company like yours and those with significant venture capital or private equity funding?
If you are a majority owner of a company private equity firm, you do not have complete independence to run your business as you see fit. Your stakeholders want something.
This can be beneficial if the stakeholders can provide substantial added value – if they provide services and guidance, not just capital, but a network of like-minded people who can help the company grow. But you don’t have 100% control.
This reminds me of Taylor Swift. She has her own master and is under contract with Universal and Republic Pictures in what might traditionally be described as a distribution or services deal – as far as we know, anyway. And she’s clearly on top of her game when it comes to making artistic and business decisions about her career. Do you think this will impact the wider business and “independence”?
I don’t know the ins and outs of her deal, but she controls her own destiny, and that’s what it means to be independent. She’s working with a major label, but she’s still making a decision. She is in control and therefore she is independent. This is how I see the world.
Overall, the market is moving in this direction, no matter where you are Taylor Swift or you are Jay Z Or if you are a novice artist, you should be able to sport control More than your career. You should be able to find the right partner who understands your vision and works with them.
“Those who operate in an antiquated way are not going to be here long, they are not going to be effective either as executives or as labels.”
many people i know working professionally clear And work according to this principle – they will succeed. But those who operate outdated way Won’t be here much longer; they are not relevant either as executives or as a label.
That’s why I say the concept of independence is somewhat outdated. We are all moving towards a world where we are all competing to be the best act or artist, and the onus is on us to create value.
Whether they are independent companies, wholly owned by their founders or private property rights or Venture capital supportor if they are part of the open market… provided by the company best servicecreate the greatest value at the right price, and you will succeed.
In which areas have you invested the most over the past few years and why?
We have had some success with Africa; We want to double down on investment in Africa.
Emerging markets are more volatile, which makes them interesting, but also slightly riskier.
when i started my business Brazil In 2010, the exchange rate was two Brazilian Real arrive one dollar. It is five to oneso I’m lost [half] My money is expressed in monetary terms. If the ratio remains at two to one one rpm will be more than twice the current size [in Brazil] In terms of income. This is the risk of entering emerging markets.
We have also increased investment Caribbean Sea. The Dominican Republic is a very good market for us because [artists from that market] There is a lot of consumption in the United States. It’s more of an export market; Jamaica is also primarily an export market.
“We’re in these markets for the long term and we’re not giving up. I’ve never left a market. I’ve never closed an office that I opened.
Nigeria Also mainly the export market. most consumption [of] Nigerian music is popular in Europe, the United Kingdom, and the United States. We have had great success with Nigeria. I think Africa will continue to be our focus.
We’re starting to get some attention [in the Middle East],especially in Egypt and Saudi Arabiawe have personnel on site.
we have invested Asia. We need to do more work there to get real traction, but we’re finally seeing some traction.
I also think there are a lot of opportunities Eastern Europe: My next investment will be in these markets.
Because we’re self-funded, we don’t go out and buy market share. It will take two to three years to see traction in the market [once you’ve invested], so we are in these markets for the long term; we are not giving up. I never left the market and I never closed the offices I opened.
Large companies do not have as strong a foothold in emerging markets as they do in developed markets. Is that part of the reason for entering these markets?
I don’t think that’s why we went in. I have a Master’s Degree in Economicsand focus [of that study] open Emerging Markets, so I’ve always been very fond of emerging markets. I also think the unknown is attractive to me.
I feel like, because of the unknown, in some ways anything is possible because — and this comes down to psychology — Ignorance is bliss In many cases.
I remember when I started Brazil, I really don’t know what I’m doing. All I knew was that Brazil was the fifth largest economy in the world at the time. I know it has a huge body of music and a huge music culture. I suspect DSP…will eventually turn on [in Brazil]. So I bet.
“[When] We open a market, we know it’s going to be difficult, we know there are going to be obstacles, but… we just do it and find a way to make it work.
So if you fast forward, I think Brazil is 1720572837 The eighth or ninth largest music market in the world, [and we have] 17%-18% The market share of this market.
I don’t know of any other truly independent music company that has achieved this level of market share in such a prominent market.
The last time we spoke was in 2022, you said that the majors had been making acquisition noises around ONErpm and you told them to go away. Has your phone been ringing since the potential Warner-Believe deal fell through?
The first time someone tried to get one rpm It’s 2013. $4.6 million A month later, I received an offer from another company. $8 million. I said, “You know what?” Maybe I’m on to something here.
I’m not trying to sell the company. If someone knocked on my door and offered me an incredible opportunity, I would consider it. It has to be a perfect fit.
I’m most interested in what I want one rpm Lasts a long time. I don’t want it to go away. I don’t want to sell it and then it doesn’t exist anymore. i hope it is a A brand with a long history This will last 40, 50 years.
What is your number one goal for RPM over the next five years?
I’m working on a three-year trajectory right now where the company will probably grow – not double, but probably grow 50% or 60% By the end of 2026.
If I achieve these goals, the company will very very profitable.
The market we are in today is one of the most challenging markets I have ever experienced. Each stream has diminishing returns on value. Facebook and Tik Tok Not paying their fair share.
In my opinion, we need new revenue streams. There’s not a lot of new innovation on the consumer side. We need another innovator in the market and we don’t have one yet.
An influx of money into the ecosystem has congested the market and made it more difficult to do good business. I think this is temporary for the next two to three years.
Despite these challenges, I believe the goals I have set for the company are achievable and if we achieve them within two to three years, we will become the fifth largest music company in the world.
MBW’s podcast is powered by Voly Entertainment. Voly’s platform enables music industry professionals from all fields to manage touring budgets, forecast, track expenses, approve invoices and payments 24/7, 365 days a year. For more information and to sign up for a free trial of the platform, please visit VolyEntertainment.com.
