What changed in this filing

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Item 1. Business

2025-05-28 compared with 2024-05-30 · 110 added, 121 removed, 209 unchanged (53% of the section changed)

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We operate a music publishing business, a recorded music business, a management business and a rights management entity in the Middle East.

We have two operating and reportable segments—Music Publishing and Recorded Music.

We have two reportable segments—Music Publishing and Recorded Music.

We represent copyrights and master recordings dating back as far as the early 1900s through today, with hundreds of #1 releases worldwide.

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Our Music Publishing business contributed approximately $107.4 million to our revenues for the year ended March 31, 2025, representing approximately 68% of our revenues.

The publishing catalog includes historic compositions written and performed by greats like Joni Mitchell, The Isley Brothers, Sonny Rollins, Louis Prima, Billy Strayhorn, Hoagy Carmichael and John Denver.

Our roster of active songwriters, including Ali Tamposi, Jamie Hartman, Oak Felder, and Steph Jones, has contributed to hit songs performed by the likes of Justin Bieber, Ariana Grande, BTS, Dua Lipa and more.

The publishing catalog includes historic compositions written and performed by greats like Joni Mitchell, The Isley Brothers, Sonny Rollins, Louis Prima, and John Denver.

We also represent contemporary writer-performers such as Snoop Dogg, Sheryl Crow, and Killer Mike, while our roster of active songwriters, including Ali Tamposi, Jamie Hartman, Oak Felder, and Steph Jones, has contributed to hit songs performed by the likes of Ariana Grande, Sabrina Carpenter, SZA, Dua Lipa and more.

Our Recorded Music business contributed approximately $44.3 million to our revenues for the year ended March 31, 2025, representing approximately 28% of our revenues.

The Recorded Music business is home to Chrysalis Records, Tommy Boy Music, and Philly Groove Records, representing recordings by De La Soul, Queen Latifah, Ben Harper, The Delfonics, Sinéad O’Connor and Coolio.

Established in 2007, we are an active music company, one that owns and administers rights, and our strategy has been to build our business based on strategic acquisitions and long - term ownership of rights.

In 2010, we acquired TVT Music Publishing, home to high quality rap, hip - hop and pop music of the 1990s and 2000s.

The Recorded Music business includes Chrysalis Records LTD (“ Chrysalis Records ”), Tommy Boy Music (“ Tommy Boy ”) and Reservoir Recordings, which markets and distributes a variety of the Company’s recorded assets, including labels such as Philly Groove Records, Amherst Records, AVCO Records, Jamdown Records, Off Road Records, Easy Street Records and New State Music.

Together this label division represents recordings by artists including De La Soul, Queen Latifah, Ben Harper, The Delfonics, Sinéad O’Connor, Coolio, Louis Prima and The Spinners, among others.

Established in 2007, we are an active music company that owns and administers rights, and our strategy has been to build our business based on strategic acquisitions and long - term ownership of rights.

In 2010, we acquired TVT Music Publishing, which included rap, hip - hop and pop music of the 1990s and 2000s.

We then acquired Philly Groove Records, which included our first recorded music assets and additional publishing hits, including the Delfonics’ “Ready or Not Here I Come (Can’t Hide From Love),” which has been covered by artists ranging from The Fugees to Missy Elliot.

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”) and adding film and television music.

We also acquired the FS Media collection of catalogs in 2014, adding the catalogs of Sheryl Crow, John Denver, Billy Strayhorn, Evanescence and Creed.

In 2015, we expanded our catalog with music for film by investing in the royalty streams of Hans Zimmer’s portfolio of film scores dating back to 1989’s Driving Miss Daisy and including The Lion King , Gladiator , the Dark Knight franchise, and others.

We also acquired the FS Media collection of catalogs in 2014, adding the catalogs of Sheryl Crow, John Denver, Billy Strayhorn, Evanescence and Creed, among others.

In 2015, we expanded our catalog of film music by investing in the royalty streams of Hans Zimmer’s portfolio of film scores dating back to 1989’s Driving Miss Daisy and including The Lion King , Gladiator , and the Dark Knight franchise, among others.

In 2020, we created a frontline film production music investment initiative with Atlantic Screen Group.

In 2022, we invested in the royalty streams of Henry Jackman’s portfolio of film scores, which included those from the Captain America , Jumanji and Kingsman franchises.

We acquired London-based Blue Raincoat Music Ltd and its label platform Chrysalis Records Ltd in 2019, thereby adding recorded music operations to our business, as well as the sound recordings of Sinéad O’Connor, The Specials, Generation X, The Waterboys and Go West.

We acquired London-based Blue Raincoat Music Ltd and its label platform Chrysalis Records in 2019, thereby adding recorded music operations to our business, as well as the sound recordings of Sinéad O’Connor, The Specials, Generation X, and The Waterboys.

Our 2020 acquisitions of Hearts Bluff and Shapiro Bernstein brought titles from the likes of Elvis, Kool & the Gang, Garth Brooks and Roy Orbison, as well as titles from the turn of the century to our portfolio.

Additionally, through more individual or estate acquisitions, we have added catalogs from luminaries such as Sonny Rollins, the Commodores, Louis Prima, Bob Crewe, Mannie Fresh, Alabama, Fred Rister and many others.

During 2021, we acquired United States (“ U.S.

”) based record label and music publishing company Tommy Boy Music, LLC (“ Tommy Boy ”), which helped launch the careers of Queen Latifah, Afrika Bambaataa, Digital Underground, Coolio, De La Soul, House of Pain and Naughty By Nature.

We have focused on being a full service music company and have strategically expanded to include management services through Big Life Management and Blue Raincoat Artists in the U.K.

In tandem with this diversification, we have concentrated on emerging markets, which are expected to be responsible for much of the future growth in the music industry.

Additionally, through more individual or

estate acquisitions over the last five years, we have added catalogs from luminaries such as Sonny Rollins, Louis Prima, Bob Crewe, Mannie Fresh, Alabama, Fred Rister and many others.

In 2021, we acquired United States (“ U.S.

”) based record label Tommy Boy, which gave us ownership over recordings by hip-hop artists whose careers launched via the label, including Queen Latifah, Afrika Bambaataa, Digital Underground, Coolio, De La Soul, House of Pain and Naughty By Nature.

We are focused on being a full service music company and have strategically expanded to include management services through Big Life Management and Blue Raincoat Artists in the U.K.

In tandem with this diversification, we have concentrated on markets that we expect to represent much of the future growth in the music industry.

To this end, we acquired a stake in PopArabia in January 2020 with a focus on signing artists, acquiring catalogs and establishing a rights management company in the Middle East and North Africa (“ MENA ”) region.

Through the initiatives above, we have deployed and committed approximately $659.9 million in capital through acquisitions and frontline deals over the last five years.

During the previous five years, we have deployed and committed approximately $640 million in capital through the acquisitions, frontline deals and other initiatives outlined above.

Industry Overview

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Within the larger music entertainment space, the music publishing and recorded music segments are thriving.

Streaming was the key driver for industry growth in 2023.

According to the International Federation of the Phonographic Industry (“ IFPI ”), subscription streaming grew by 11.2% in 2023, representing $14 billion of revenue.

Streaming was a key driver for industry growth in 2024.

According to the International Federation of the Phonographic Industry (“ IFPI ”), streaming’s share of global revenues was 69% in 2024, exceeding $20 billion for the first time.

Additionally, subscription streaming grew by 9.5% in 2024, representing approximately $15.1 billion or 51.2% of global recorded music revenues.

This growth has been driven by an increase in subscribers and usage alike, as well as price increases.

The total number of music subscribers globally was 667 million in 2023, up from 589 million in 2022.

Additionally, according to Luminate (formerly MRC Data), global on-demand audio song streams increased by approximately 22.3% year-over-year in 2023.

Also in 2023, the volume of music on DSPs has continued to increase, with an average of 103,500 new ISRCs delivered each day, up 10.8% from 2022.

Streaming growth in the emerging markets is also having an outsized impact on the industry and global recorded music revenues.

The IFPI reports that China remained the fifth largest recorded music market and boasts the fastest rate of revenue growth for any country in the top 10 music markets.

Sub-Saharan Africa, as a region, had the fastest growth of recorded music revenue growth.

In MENA, streaming revenues accounted for 98.4% of total revenues, and total revenues grew by 14.4%.

The total number of music subscribers globally grew 10.6% to 752 million in 2024, up from 667 million in 2023.

Additionally, according to Luminate, an entertainment-focused data analytics company, global on-demand streaming audio increased by approximately 14.0% year-over-year in 2024.

Streaming growth in emerging markets is also having an outsized impact on the industry and global recorded music revenues.

The IFPI reports that China remained the fifth largest recorded music market and increased revenues by 9.6%.

MENA, as a region, had the fastest growth of recorded music revenue in 2024 at 22.8%, with streaming accounting for 99.5% of that revenue.

Sub-Saharan Africa also grew by 22.6%, with revenues surpassing $100 million for the first time.

Beyond growth in paying subscribers, we believe recent developments suggest that streaming pricing may have room for further optimization.

In 2023, Spotify increased prices in 65 countries for the individual, duo, family and student plans.

For the second time in 12 months in 2023 Deezer increased prices for all new premium and family subscriptions in key territories including France, UK, Spain, Italy and the Netherlands.

YouTube increased prices of its individual and family plan tiers on both YouTube Premium and YouTube Music in the United States in 2023.

In 2022, Apple Music increased prices of its individual and family plans in the United States, and Amazon Music Unlimited increased the prices of both its individual and family subscription plans.

Data in Luminate’s 2023 report demonstrates the increasing importance of emerging markets and non-English content, including suggesting the potential for India to overtake the U.S.

as the country with the highest overall streaming volume globally.

While India’s streaming volume is currently just shy of the U.S.’s, the country saw the biggest year-over-year increase in total on-demand music streams of any nation, with an increase of nearly half a trillion streams, while the U.S.

volume increased by 184 billion.

Furthermore, Luminate reported that the Hindi-language music market share has more than doubled from 2021 to 2023, up to nearly 8%, and also noted over 60% of both Gen Z and Millennial listener groups “listen to new music to experience new cultures and perspectives.” This data supports Reservoir’s investments in emerging markets, including in India and MENA.

Platforms such as gaming, home fitness and social media have evolved in ways that integrate commercial music into their services – which are all accretive revenue sources to the music industry.

The evolution of car entertainment systems from physical media players to streaming connectivity has driven growth in music subscribers and digital advertising revenue for music services.

By 2030, it’s projected that 96% of new vehicles shipped worldwide will be built with internet connectivity.

The traditional music revenue sources of live music, touring and physical sales continue to see growth.

This contributed to a 13.4% year-over-year growth of physical album sales in 2023 and 9.5% growth in performance rights revenues, according to the

In addition, synchronization revenue continued to grow 4.7% in 2023.

According to the IFPI, the recorded music industry experienced 10.2% year-over-year growth overall to $28.6 billion.

In 2024, Spotify increased prices for U.S.

premium subscribers, following previous price raises in 2023 in 65 countries for the individual, duo, family and student plans.

Spotify has also announced plans for additional subscription tiers at higher costs in 2025.

For the second time in 12 months, in 2023, Deezer increased prices for all new premium and family subscriptions in key territories including France, U.K., Spain, Italy and the Netherlands.

YouTube increased prices of its individual and family plan tiers on both YouTube Premium and YouTube Music in the U.S.

In 2022, Apple Music increased prices of its individual and family plans in the U.S., and in 2023 Amazon Music Unlimited increased the prices of both its individual and family subscription plans, with another price rise effective during 2025.

Data across industry reports demonstrates the increasing importance of emerging markets and non-English content, an area in which we have made investments, including in India and MENA.

In the Music in the Air 2024 report, Goldman Sachs estimated that emerging markets will contribute to 70% of net streaming subscriber additions by 2030.

Luminate also reported that English-speaking countries were losing share to non-English imports, while non-English-speaking countries have local content gaining share.

Mexico, Brazil, and India experienced the largest gains in global premium stream share in 2024.

In their 2024 Loud & Clear report, Spotify also noted that the artists who generated at least $1 million on the platform recorded music in 17 different languages, more than double from 2017, while the artists who generated at least $100,000 in royalties have recorded music in over 50 languages, also more than double from 2017.

The traditional music revenue sources of live music, touring and physical sales continue to be robust.

While physical revenues declined by 3.1% in 2024 set against a very strong performance for the format in 2023, the format still accounted for $4.8 billion in revenue, according to IFPI.

Additionally, performance rights revenues experienced 5.9% growth and synchronization revenue

continued to grow 6.4% in 2024.

According to the IFPI, the recorded music industry experienced a tenth consecutive year of growth in 2024, up 4.8% to $29.6 billion.

In addition to their growing popularity with consumers, emerging music monetization platforms are now proactively engaging with the music entertainment industry to properly compensate rightsholders for use of music.

For example, Reservoir has licensing agreements with platforms including TikTok, Peloton, Meta and Snap.

For example, Reservoir has direct licensing agreements with platforms including TikTok, Peloton, Meta and Snap.

These emerging music monetization platforms are now a permanent part of the music entertainment industry and have helped expand access to and listenership of music globally.

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Increased government intervention to curb piracy and improve monetization rates for content owners helps secure the future of the industry.

Government interventions in the U.S.

and the European Union (“ EU ”) are expected to result in increased revenues for the music entertainment industry, at least in the near-term.

We expect government interventions in the U.S.

and the European Union (“ EU ”) to result in additional increased revenues for the music entertainment industry, at least in the near-term.

Music Modernization Act (the “ MMA ”).

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Also in 2018, the U.S.

CRB issued updated royalty rates and terms.

This ruling by the CRB included increased publishing royalty rates for musical compositions in the U.S.

from 2018 through 2022.

While this decision was vacated in part on appeal in August 2020, the case was remanded back to the CRB for further proceedings.

In June 2023, the CRB issued its final determination, which retroactively upheld the headline royalty rates initially determined in 2018, and those rates were published in the Federal Register in August 2023.

In 2018, the CRB also significantly increased the royalty rates for sound recordings in the U.S.

paid by SiriusXM from 2018 through 2022, and the MMA extended the term of this increase through 2027.

In 2022, songwriters and publishers won a raise in streaming headline royalty rates from 10.5% to 15.1% over the 2018-2022 period.

Also in 2022, The National Music Publishers’ Association (“ NMPA ”), the Nashville Songwriters Association International (“ NSAI ”) and the Digital Media Association (“ DiMA ”) announced a settlement regarding the U.S.

mechanical streaming rates for 2023-2027.

The CRB oversees rate courts and publishing royalty rate setting.

Historically, the CRB’s issuing of updated royalty rates and terms favoring publishers has been contentious for other stakeholders in the industry (i.e., digital service providers or recorded music companies), whose share of the pie would lessen with increased publishing royalties.

As a result, they have appealed recent increases, causing the payment of updated higher royalties to publishers to be delayed at various times.

The publishing industry and its advocacy organizations have in turn fought these appeals.

Publishers are currently awaiting true-ups from the 2018-2022 increased rate.

During 2022, The National Music Publishers’ Association (“ NMPA ”), the Nashville Songwriters Association International and the Digital Media Association announced a settlement regarding the U.S.

mechanical streaming royalty rates for 2023-2027.

In December 2022, the CRB published final regulations adopting those headline rates, which escalate from 15.15% of total revenue in 2023 to 15.20% in 2024 and then a half of a tenth of a percentage point increases in each of the next three years, peaking at 15.35% in 2027.

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The legislation was designed to limit safe harbors from liability for copyright infringement and to ensure that rightsholders and recording artists are remunerated fairly when their music is shared online by user-uploaded content services.

In 2023, the European Parliament and the Council of the EU enacted The AI Act, the first-ever legal framework aimed at addressing the risks of artificial intelligence (“ AI ”).

In 2023, the European Parliament and the Council of the EU enacted The AI Act, the first-ever legal framework aimed at addressing the risks of AI.

The AI Act aims to provide AI developers and deployers with clear requirements and obligations regarding specific uses of AI to protect intellectual property owners and rightsholders.

While there is currently no comprehensive federal legislation or regulations in the U.S.

to regulate AI, as of September 2024, there were more than 120 AI bills across industries introduced into U.S.

One such act introduced in November 2024 is the Transparency and Responsibility for Artificial Intelligence Networks (TRAIN) Act, backed by numerous music industry groups, including the three major companies, Sony Music Entertainment, Universal Music Group and Warner Music Group.

Among other propositions, the law would require AI developers to disclose the materials they used to train their AI models.

Separately, the Content Origin Protection and Integrity from Edited and Deepfaked Media Act (COPIED Act) would, if enacted, make it unlawful to use copyrighted works to train AI without permission .

Music Publishing

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The music publishing industry involves the identification and development of songwriters to create, market and promote compositions, as well as licensing and acquisition of rights in musical compositions from content owners ( e.g., publishers, songwriters, composers and other rightsholders).

According to Music & Copyright, the music publishing industry generated $9.0 billion in revenues worldwide in 2023, representing an increase of 10.9% from 2022, and a compound average annual growth rate of 10.4% since 2018.

According to Music & Copyright, the music publishing industry generated $9.0

billion in revenues worldwide in 2023, representing an increase of 10.9% from 2022, and a compound average annual growth rate of 10.4% since 2018.

Royalties & Revenue Generation

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In the U.S., public performance income is administered and collected by music publishers and their performing rights organizations, and, in most countries outside the U.S., collection, administration and allocation of both mechanical and performance income are undertaken and regulated by governmental or quasi-governmental authorities.

Throughout the world, each synchronization license is generally subject to negotiation with a prospective licensee, and music publishers pay a contractually required percentage of synchronization income to the songwriters or their heirs and to any co-publishers.

Throughout the world, synchronization licenses are generally subject to negotiation with a prospective licensee, and music publishers pay a contractually required percentage of synchronization income to the songwriters or their heirs and to any co-publishers.

Performance royalties generate revenue through live performance and digital performance of musical compositions to the general public, including via broadcast of musical compositions on television, radio and cable, live performance at a concert or other venue ( e.g.

, arena concerts, nightclubs), broadcast of musical compositions at sporting events, restaurants or bars, and the performance of musical compositions in staged theatrical productions.

, arena concerts, nightclubs), broadcast of musical compositions at sporting events, restaurants or bars, and the performance of musical compositions in staged theatrical productions, known as grand rights.

Digital royalties include the licensing of recorded music in various digital formats and digital performance of musical compositions to the general public, such as streaming and download services.

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Key performing rights organizations and collecting societies include American Society of Composers, Authors and Publishers (“ ASCAP ”), Broadcast Music Inc.

(“ BMI ”) and SESAC in the U.S., the Mechanical-Copyright Protection Society (“ MCPS ”) and the Performing Right Society (“ PRS ”) in the U.K., and the Society of Composers, Authors, and Music Publishers of Canada (“ SOCAN ”) and the Canadian Musical Reproduction Rights Agency (“ CMRRA ”) in Canada.

(“ BMI ”) and SESAC in the U.S., the Mechanical-Copyright Protection Society and the Performing Right Society in the U.K., and the Society of Composers, Authors, and Music Publishers of Canada and the Canadian Musical Reproduction Rights Agency in Canada.

The societies pay a percentage (which is set in each country) of the performance royalties to the copyright owner(s) or administrators (i.e., the publisher(s)), referred to in the industry as the “publisher’s share,” and a percentage directly to the songwriter(s), referred to in the industry as the “writer’s share” of the composition.

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The operations of our Music Publishing business are conducted through all our offices, as well as various subsidiaries and sub-publishers.

We own or control rights to more than 150,000 compositions as of March 31, 2024, including numerous pop hits, American standards, and motion picture and theatrical compositions.

Our award-winning catalog includes over 5,000 clients as of March 31, 2024 and boasts a diverse range of genres, including pop, rock, jazz, classical, country, R&B, hip-hop, rap, reggae, Latin, folk, blues, symphonic, soul, Broadway, techno, alternative and gospel.

As a copyright owner and administrator of musical compositions, we promote, place, market and administer the use of our musical compositions, in addition to the creative outputs of our active songwriters.

For example, we encourage recording artists to record and

include our musical compositions on their recordings, offer opportunities to include our musical compositions in filmed entertainment, advertisements and digital media, and advocate for the use of our musical compositions in live stage productions.

We own or control rights to a vast collection of compositions, including numerous pop hits, American standards, and motion picture and theatrical compositions.

Our award-winning catalog boasts a diverse range of genres, including pop, rock, jazz, classical, country, R&B, hip-hop, rap, reggae, Latin, folk, blues, symphonic, soul, Broadway, techno, alternative and gospel.

As a copyright owner or administrator of musical compositions, we promote, place, market and administer the use of our musical compositions, in addition to the creative outputs of our active songwriters.

For example, we encourage recording artists to record and include our musical compositions in their recordings, offer opportunities to include our musical compositions in filmed entertainment, advertisements and digital media, and advocate for the use of our musical compositions in live stage productions.

In return, our Music Publishing business garners a share of the revenues generated from use of those musical compositions via the royalties outlined above.

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While the duration of the administration rights under contracts may vary, some of our contracts grant us ownership and/or administration rights for the duration of copyright.

See “— Intellectual Property - Copyrights.

See “— Intellectual Property - Copyrights .” U.S.

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See “ Risk Factors - Risks Related to Intellectual Property and Data Security - We face a potential loss of catalog to the extent that our songwriters or recording artists have a right to recapture rights in their musical compositions or recordings under the U.S.

Recorded Music

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The recorded music industry involves the identification and development of artists to create, market and promote recordings ( i.e., a specific recording of a composition).

According to the IFPI, the recorded music industry generated $28.6 billion of revenue globally in 2023, reflecting year-over-year growth of 10.2% and a compound annual growth rate of 10.4% since 2018.

According to the IFPI, the recorded music industry generated $29.6 billion of revenue globally in 2024, reflecting year-over-year growth of 4.8%.

Royalties & Revenue Generation

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Digital formats include streaming, downloads and the ongoing proliferation of novel access points like video gaming and social media.

Physical formats include CDs, as well as through historical formats, such as vinyl albums.

Physical formats include CDs, vinyl albums and cassettes.

Synchronization royalties stem from the use of the musical composition in combination with visual images.

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We generate revenues from the new releases of frontline artists and our catalog of recordings.

In addition, we actively repackage music from our catalog to form new products.

We also actively repackage music from our catalog to form new products.

Through this distribution network, our music is marketed, distributed and sold to retail and wholesale distributors, various distribution centers and ventures operating internationally, and digital partners, including streaming services.

The distribution is handled by a network of partners that includes Proper, PIAS, Secretly, Alliance and MERLIN.

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MERLIN is one of the top global digital rights agencies in the world, negotiating licenses on behalf of many independent record labels, distributors and other music rightsholders.

Through our distribution network, our music is being sold in physical retail outlets, as well as via online retailers, and distributed in digital form to an expanding universe of digital partners including streaming services.

In connection with the digital distribution of our music, we currently partner with a broad range of digital music services, such as Amazon, Apple, Deezer, Spotify, SoundCloud, Tencent Music Entertainment Group and YouTube;

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In contrast, our catalog recording artists’ contracts typically grant us ownership for the duration of copyright.

See “— Intellectual Property - Copyrights.

See “— Intellectual Property - Copyrights .” U.S.

only) after a set period of time.

See “ Risk Factors

- Risks Related to Intellectual Property and Data Security - We face a potential loss of catalog to the extent that our songwriters or recording artists have a right to recapture rights in their musical compositions or recordings under the U.S.

Our Competitive Strengths

Value Enhancement

Our synchronization team is comprised of 11 people worldwide dedicated to marketing and licensing our music for use in films, trailers, television shows, advertisements and video games.

Our global synchronization team is dedicated to marketing and licensing our music for use in films, trailers, television shows, advertisements and video games.

For the year ended March 31, 2025, our synchronization income accounted for 13% of our total revenues.

Digital licensing covers platforms that extend from social media, background music, home fitness, to music education and music therapy.

These are all new music distribution vehicles that bring new income streams to songwriters and artists and opportunities that enhance the value of intellectual properties.

Digital licensing covers platforms that extend from social media, background music, and home fitness to music education and music therapy.

We believe these distribution vehicles pursued by our team are previously unrealized opportunities that bring in new revenue streams to songwriters and artists, ultimately enhancing the value of their intellectual properties.

Platform Positioned for Growth

We have made investments in an infrastructure that we expect to leverage as we continue to scale our Music Publishing business.

Within our Recorded Music business, we have completed and integrated the acquisitions of Chrysalis Records and Tommy Boy Music and believe we are well-positioned to ingest additional master recordings into our platform resulting in additional operating leverage as we scale.

Within our Recorded Music business, we have completed and integrated the acquisitions of entire labels, including Chrysalis Records, Tommy Boy and New State, and believe we are well-positioned to ingest additional master recordings into our platform resulting in additional operating leverage as we scale.

Well-Positioned to Capitalize on the Growth of the International Music Industry Driven by Streaming

In its 2023 Global Music Report, the IFPI reported that global recorded music industry revenues grew 10.2% in 2023, marking a ninth consecutive year of growth.

In its 2024 Global Music Report, the IFPI reported that global recorded music industry revenues grew 4.8% in 2024, marking a tenth consecutive year of growth.

That growth was driven by streaming revenue, which grew 7.3% overall.

In particular, in 2023 paid subscription accounts rose to 667 million users, which accounted for $14 billion in revenue, an increase of 11.2% year-over-year and represented 48.9% of total global recorded music revenues.

In particular, in 2024 paid subscription accounts rose to 752 million users, which accounted for approximately $15.1 billion in revenue, an increase of 9.5% year-over-year, and represented over 51.2% of total global recorded music revenues.

Emerging Markets Presence and Investments in Local Content

According to the IFPI, each of the top ten global music markets grew revenue year-over-year in 2023, with the fastest growing countries including China, Brazil, and Canada.

Notably the fastest growing region included Sub-Saharan Africa with a 24.7% revenue increase.

MENA revenues also rose by 14.4% in 2023, exceeding the global growth rate.

India’s revenue also grew 15.4%, making it the 14th largest global market in 2023.

We believe Reservoir’s stake in PopArabia has put us in the position to capture the growth in MENA.

According to the IFPI, eight of the top ten global music markets grew revenue year-over-year in 2024, with 55 of the 58 markets the organization monitors recording growth.

Notably the fastest growing region included MENA with a 22.8% increase in 2024.

Sub-Saharan Africa revenues also rose by 22.6% in 2024.

We believe Reservoir’s stake in PopArabia has put us in the position to capture growth in MENA.

Since we made this investment, we have signed artists and acquired catalogs from India and the MENA region, ranging from indie tastemakers like Zeid Hamdan to regional superstars like Mohamed Ramadan and Nancy Ajram.

We have also established the subsidiary ESMAA, which is a United Arab Emirates-based rights management entity working with global music rights organizations, music publishers, songwriters, record labels and artists to ensure their music and rights are fully administered and licensed in the region.

In its first full year of operation, Fiscal 2022, ESMAA licensed several key music users for the first time including a multimillion dollar license with EXPO 2020 in Dubai.

We continue to be focused on acquiring and developing music content in the emerging markets to capture the higher expected growth in such regions and diversify our catalog with both global and regional content.

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The team is experienced in the music entertainment business, with a firm commitment to executing on its strategy on an ongoing basis.

Reservoir has sustained no executive management turnover since inception, creating a team that has been working together long-term, is incentivized to continue to scale the business and increase shareholder value, and takes pride in their team, their clients, and the Company.

Environmental, Social, and Governance (“ESG”) Efforts

We hold ourselves accountable to maintain environmentally sound practices, limiting our impact on the environment, while simultaneously delivering on our business goals.

As part of this, we consistently engage in clean energy solutions and waste-conscious

efforts, we maintain limited physical assets and we continuously evaluate methods to reduce our environmental impact, including on the physical spaces in which we operate.

Advocating for our creators is one crucial aspect of our social business.

Advocacy & Educational Efforts

Advocating for our creators is important to our business.

We have Board representation at leading industry non-profits across the globe, including MusiCares, Songwriters Hall of Fame, Silkroad, the NMPA, the MLC, International Confederation of Music Publishers (“ ICMP ”), and the Independent Music Publishers International Forum (“ IMPF ”), where we lead the charge on advocating for songwriter rights, artist rights and fair compensation.

In addition, we are committed to preserving the legacies of creators, so their music is heard for generations to come.

To that end, we also develop and support several educational initiatives with leading universities, through which the students learn about our legacy artists and their catalogs, ensuring that the music lives on.

These collaborations are ongoing at New York University.

Our staff also lends their time at leading global educational institutions to invest in the next generation of business leaders.

Our founder and CEO Golnar Khosrowshahi lectured at Columbia Business School for the Foundations of Entrepreneurship class and spoke at Oxford University, while other staff members have lectured or taught at New York University and Syracuse University, among others.

Reservoir has also helped support educational initiatives associated with the New York Philharmonic, such as sponsoring local students to attend a donor rehearsal.

In addition, Reservoir also conducted an educational program with The Door, a non-profit that provides youth development services ranging from health services, legal assistance, GED classes, job training, supportive housing, meals and recreational activities with a focus on the arts.

In addition, Reservoir also supports educational initiatives focused on providing insights on the music industry and preserving the legacies of creators, so their music resonates for generations to come.

These initiatives include Founder and Chief Executive Officer

Golnar Khosrowshahi or other staff speaking at Columbia Business School, Oxford University, New York University and Syracuse University, as well as ongoing partnerships with The Door, NewComm and more.

Our Growth Strategies

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Creative Partnership

Our staff has experience identifying and contracting with songwriters and recording artists.

We are not only searching for immediate hits.

We actively scout and sign talent with the market potential for longevity and lasting impact.

Our staff has experience identifying and contracting with songwriters and recording artists who are capable of both immediate hits, and the market potential for longevity and lasting impact.

To that end we offer tailored support and resources, helping to achieve commercial and critical success.

Our ability to select recording artists who are likely to be successful is a key element of our frontline Recorded Music business strategy that targets recording artists who will achieve national, regional and international success.

The frontline Recorded Music

business line was established in 2019 when we acquired Chrysalis Records and relaunched it as an active frontline record label, signing and developing new talent.

A key element of our frontline Recorded Music business strategy is the selection of recording artists who we believe are likely to be successful, targeting recording artists who we believe will achieve national, regional and international success.

The frontline Recorded Music business line was established in 2019 when we acquired Chrysalis Records and relaunched it as an active frontline record label, signing and developing new talent.

Our first frontline release went on to receive critical acclaim, a Mercury Award shortlist nomination and a Grammy nomination.

Many of our catalog artists continue to appeal to audiences long after they cease releasing new music.

We have a process for sustaining sales across our catalog releases.

Our strategy is to maximize the value of our catalog of recorded music through innovative marketing initiatives, and we use our catalog as a source of material to curate re-releases, compilations, box sets and special package releases, which provide consumers with incremental exposure to familiar music and recording artists.

Our longstanding relationships within the creative community also provide our creators with a wide network of collaborators, which we believe is a vital part of helping them to realize their best work.

Our creative and A&R teams are further complemented by our marketing services team, which provides high-touch, bespoke services.

We endeavor to maximize the value of our catalog of recorded music through innovative marketing initiatives, and we use our catalog as a source of material to curate re-releases, compilations, box sets and special package releases, which provide consumers with incremental exposure to familiar music and recording artists.

Our longstanding relationships within the creative community also provide our creators with a wide network of collaborators, which is an important part of helping their long-term success.

Our creative and artist and repertoire (“A&R”) teams are further complemented by our marketing services team, which provides high-touch, bespoke services.

Marketing and Promotion

We are experienced in value enhancement with a proven record of success in marketing and promotion.

With direct relationships at significant digital music service and social media networks, as well as radio, press, film, television retail and platforms for music entertainment.

We apply a comprehensive approach to marketing and promoting our songwriters, recording artists and their music.

We are experienced in value enhancement with a proven record of success in marketing and promotion, including via direct relationships at digital music service and social media networks, as well as press, film, television and platforms for music entertainment.

For our Music Publishing business, our goal is to promote our songwriters’ interest in their music, enhance the value of those copyrights and promote their work and legacies as creators.

Our goal for our Recorded Music business is to set up new frontline releases from emerging and established acts for success, while furthering the success of catalog releases and legacy artists.

Our marketing team has experience across music publishing and recorded music, which allows us to execute long-term campaigns, while adapting quickly to changes in the marketplace.

In addition, our synchronization team strives to add value to our songwriters’ and recording artists’ music by marketing and licensing it for use in films, trailers, television shows, advertisements and video games.

With experience across music publishing and recorded music, our marketing team executes long-term campaigns and adapts quickly to changes in the marketplace.

In addition, our synchronization team adds value to our songwriters’ and recording artists’ music by marketing and licensing it for use in films, trailers, television shows, advertisements and video games.

Global Reach and Local Expertise

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In addition to competing against the major music companies, we also compete against the many other independent music companies.

To a lesser extent, we compete with the way consumers use their disposable income for media and entertainment.

To a lesser extent, we compete with other ways consumers use their disposable income for media and entertainment.

However, many of these alternatives present an opportunity for monetization for our business ( e.g.

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The recorded music industry is also highly competitive and dominated by three companies.

The three largest recorded music companies - Universal Music Group, Sony Music Entertainment and Warner Music Group - account for approximately 70% of global recorded music revenues, according to public company filings and the IFPI.

Outside of these three companies are numerous participants, including independent recorded music companies, that collectively account for approximately 30% of the global recorded music market.

Outside of these three companies there are numerous participants, including independent recorded music companies, that collectively account for approximately 30% of the global recorded music market.

Intellectual Property

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The EU also harmonized the copyright term for joint musical works.

In the case of a musical composition with words that is protected by copyright on or after November 1, 2013, the member states of the EU are required to calculate the life of the author plus 70 years term from the date of death of the last surviving author of the lyrics and the composer of the musical composition, provided that both contributions were specifically created for the musical composition.

In the case of a musical composition with words that is protected by copyright on or after November 1, 2013, the member states of the EU are required to calculate the life of the

author plus 70 years term from the date of death of the last surviving author of the lyrics and the composer of the musical composition, provided that both contributions were specifically created for the musical composition.

We are largely dependent on legislation in each jurisdiction in which we operate to protect our rights against unauthorized reproduction, distribution, public performance or rental.

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As of March 31, 2025, none of our employees in the U.S.

were subject to a collective bargaining agreement, although certain employees in our non-domestic subsidiaries were covered by national labor agreements.

Our human capital resources objectives include attracting, developing and retaining personnel, and enhancing diversity and inclusion in our workforce to foster community, collaboration and creativity among our employees, while supporting our ability to grow our business.

To facilitate these objectives, we seek to foster a diverse, inclusive and safe workplace, with opportunities for employees to develop their talents and advance their careers.

were subject to a collective bargaining agreement, although certain employees within our non-domestic subsidiaries were covered by national labor agreements.

Our human capital resources objectives include attracting, developing and retaining personnel, fostering community, collaboration and creativity among our employees, and supporting our ability to grow our business.

To facilitate these objectives, we seek to foster an inclusive and safe workplace, with opportunities for employees to develop their talents and advance their careers.

Corporate Information

Our principal executive offices are located at 200 Varick Street, Suite 801A, New York, New York 10014, and our telephone number is (212) 675-0541.

Our principal executive offices are located at 200 Varick Street, Suite 801, New York, New York 10014, and our telephone number is (212) 675-0541.

Website Access to Company’s Reports and Disclosure Information

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business