Hey everyone,

For the final edition of the year, I’ll be telling you about one of the most influential figures in the music industry. Sir Lucian Grainge, who has served as Universal Music’s CEO since 2011, has had an extraordinary journey to reach this position and has ambitious plans for his company. Let’s explore his background, vision, and how these could shape the future of the music industry.

If you know someone who’d enjoy this, share it! And if you’re new here, be sure to subscribe to the newsletter  to receive the next editions.

🕴️ Lucian Grainge: the last industry mogul

Universal Music’s Meteoric Rise and Grainge’s Vision

In 2021, Universal Music Group (UMG) split from the Vivendi Group to go public on the Amsterdam Stock Exchange. That year, Lucian Grainge earned over $200 million, a sum that stirred significant discussion. However, the UMG board considered the compensation justified, given that under Grainge’s leadership, the company’s valuation surged from €6.5 billion in 2011 to nearly €50 billion by 2021. To put UMG’s dominance into perspective: roughly 70% of the songs on the Billboard charts - which is ranking the top songs in the US - are owned or distributed by Universal. Lucian Grainge didn’t only increase Universal’s influence in the industry but is considered as having had a decisive role in the industry’s return to growth in recent years.

Expanding Influence

During a time where the music industry was undervalued in the late 2000s, with the decline of physical sales and the early days of streaming, UMG made a bold move of acquiring EMI for $1.9 billion, which the fourth biggest music company. This acquisition was decisive to grow Universal Music’s market share at that time.

As streaming gained traction in the mid-2010s, Universal Music continued to acquire independent music companies. They continue do to so with the acquisition of PIAS last month, or Downtown Music for $775 million, which became official just a few days ago. These moves are part of a broader trend toward consolidation in the industry, reducing opportunities for independent artists and labels to thrive outside of the major players.

From A&R to CEO

Lucian Grainge’s journey started when he finished high school and reached out to every label. Starting as an A&R; responsible for scouting new artists and managing relationships with existing artists, Grainge joined Universal Music in 1986 and helped creqting PolyGram into the UK’s the third largest publishing company. Over the years, Grainge’s role grew within Universal, eventually leading him to become the CEO of Universal Music UK in 2001, and then Global CEO in 2011. Throughout his career, he signed artists such as ABBA, Jay-Z, The Rolling Stones, Amy Winehouse or Rihanna. UMG also signed various deals with independent rap labels with artists such as Eminem, Drake, J. Cole or Lil Wayne.

He has now been CEO of the company for 13 years and remains a key player in the industry’s evolving landscape. For instance, earlier this year, he made headlines by pulling Universal’s music from TikTok, signaling his commitment to negotiating better terms for artists (see my article on this topic). Despite embracing new technologies like AI, Grainge has also been proactive in initiating legal action against services that use UMG’s copyrighted works without proper compensation.

Grainge’s Lasting Impact and Universal’s Next Chapter

Lucien Grainge is set to remain CEO until 2028, by which time he will be 68 years old. He might stay longer as a CEO in the company but he is already preparing for his eventual succession. He appointed a few entrepreneurs among Universal’s biggest labels, such as John Janick, who is now leading Interscope Records. John Janick started by creating his own label and joined Universal in 2012 to become Interscope’s new boss, one of Universal’s biggest labels, and signed artists such as as Billie Eilish or Olivia Rodrigo.

Janick’s approach to the music business differs significantly from the old-school mentality of traditional executives. With a background shaped by the internet and digital media, Janick represents a new generation of music leaders who are more flexible and less risk-averse than their predecessors. As the industry continues to shift, the next wave of executives will likely navigate a shift in power between artists and labels, where superstar artists wield more power than ever before.

Looking ahead, Universal Music will face challenges from emerging technologies like AI and shifting industry trends. As independent artists increasingly pursue alternative paths, UMG’s dominance may come under pressure. However, with its extensive resources and dominance over the industry, Universal is well-equipped to remain a key player in the rapidly changing music ecosystem. It will be fascinating to see how these developments unfold and whether Universal can maintain its leadership position in the years to come.

💿️ Album Recommendation

Kendrick Lamar - GNX

Who else? With this new album GNX, which got released in the end of November, Kendrick surprised everybody by releasing his seventh album. After his beef with Drake earlier this year, which led to the hit Not Like Us, Kendrick didn’t follow up with another concept album, as he did in his past projects. While his previous album, Mr. Morale & The Big Steppers, left some fans disapointed (though I was definitely not one of them!), this new release is a celebration of rap, his success, and, of course, the West Coast.
On GNX, Kendrick seems to be having more fun by delivering some of his best flows and performances on production by DJ Mustard or Sounwave. With samples coming from legends like Nas and 2Pac, the album feels both fresh and rooted in hip-hop history. You can find some of my favorites songs from the new album in the updated playlist.
And if you want to discover more new music, I’ve also curated the playlist featuring my favourite tracks released in the past few months.

Have a great end of the year and see you after the break!