On an earnings call earlier this year, Reservoir Media CEO Golnar Khosrowshahi expressed an ambitious goal for the New York-headquartered independent music company.<\/p>\n
\u201cExpanding our portfolio in\u2026 important emerging markets, but especially within the Middle East, is highly important to our overall strategy and a key differentiator for us,\u201d she told analysts<\/a> on the call.<\/p>\n \u201cWith our network and ability to purchase content at attractive multiples, this region presents significant opportunity as we work to become the largest holder of Arabic music copyrights.\u201d<\/p>\n To that end, Reservoir Media formed a joint venture<\/a> in 2020 with Abu Dhabi-headquartered music publisher and music rights consultancy PopArabia. Under that deal, PopArabia assumed the role of sub-publisher for all of Reservoir\u2019s copyrights in the Middle East\/North Africa (MENA) region, including collecting and distributing royalties and licensing music for sync.<\/p>\n The partnership is supported by twofour54, Abu Dhabi\u2019s media zone that is home to numerous media companies including CNN and Sky News Arabia, among hundreds of others.<\/p>\n Reservoir and PopArabia have since engaged in a joint expansion campaign that has included the acquisition of Egyptian label 100COPIES<\/a>, as well as the acquisition of Lebanese label and music publisher Voice of Beirut<\/a>.<\/p>\n On Wednesday (August 23), the two companies announced a pair of new transactions that will give them an even stronger foothold in the Egyptian music market: A catalog acquisition of Cairo-headquartered content production and distribution company RE Media, and the acquisition of master and recording rights for the catalog of Egyptian rap duo El Sawareekh.<\/p>\n The deal will give Reservoir\/PopArabia the rights to RE Media\u2019s 6,000+ recordings and compositions, including those from sub-labels Moseeqa and Moseeqa TV, as well as the acquisition of several or RE Media\u2019s owned and operated YouTube channels, which collectively boast more than one million subscribers. The channels will be folded into PopArabia\u2019s own YouTube hub.<\/p>\n Founded in 2004 by Richard Elhaj, RE Media represents a diverse mix of Egyptian music spanning the past three decades and features songs by prominent artists such as Amr Diab, George Wassouf, Dalida and Mohamed Mounir. The deal includes Amr Diab\u2019s classic debut album Ya Tareeq<\/em>. Diab continues to be one of the world\u2019s most streamed artists.<\/p>\n \u201cI am… excited about the governance PopArabia is bringing to the Middle East, maximizing the economic potential of music assets\u00a0 and creating a lawful ecosystem to build on for the future.\u201d<\/p>\n Richard Elhaj, RE Media<\/span><\/p><\/blockquote>\n \u201cI am very proud to have struck an arrangement with PopArabia for the acquisition of some of our catalog, and I foresee a long-term relationship with them and with Reservoir,\u201d Elhaj said in a statement.<\/p>\n \u201cI am also excited about the governance PopArabia is bringing to the Middle East, maximizing the economic potential of music assets\u00a0 and creating a lawful ecosystem to build on for the future.\u201d<\/p>\n The rap duo El Sawareekh consists of Ahmed Abdelhamed (aka Dokdok) and Bassem Mohamed (aka Fanky). They are considered forerunners of the Mahraganat genre, which emerged over the past 12 years and consists of a blend of Arabic rap, electronic music and Egyptian rhythms.<\/p>\n The duo released their debut album in 2014, and have been major artists on the Egyptian scene since 2017, with the release of the breakout hit Laa<\/em>. That track has garnered some 100 million views on YouTube. Laa<\/em> has in fact been a part of Reservoir and PopArabia\u2019s catalog since they acquired the rights to the track as part of the companies\u2019 acquisition of 100COPIES in 2022.<\/p>\n Since the release of Laa<\/em>, El Sawareekh have gone on to release numerous hit tracks, including Ekhwaty<\/em> (414 million YouTube views), Albk Bahr Maleh<\/em> (180 million views) and Eda Eda<\/em> (66 million views). El Sawareekh were highlighted on Forbes\u2019 \u201cCelebrity List\u201d of the Middle East\u2019s Arab Music Stars<\/a> in 2021.<\/p>\n In a joint statement, the duo said they were \u201cexcited to continue our relationship with Reservoir and PopArabia. We look forward to the companies\u2019 support as we continue to show the world what we can do.\u201d<\/p>\n Spek, the Founder and CEO of PopArabia, who also serves as Reservoir\u2019s Executive Vice President of International and Emerging Markets, said in a statement: \u201cEgyptian artists are a driving force in Arabic popular music, and it is gratifying to see Reservoir and PopArabia continue to solidify our presence in MENA through the acquisition of these important catalogs.\u201d<\/p>\n He added: \u201cEl Sawareekh have created some of the country\u2019s most memorable hits of this era, and RE Media represents an important spread of Egyptian repertoire. Each of these deals is an important step in our ongoing efforts to expand our leadership in the Arabic music space.\u201d<\/p>\n \u201cEgyptian artists are a driving force in Arabic popular music, and it is gratifying to see Reservoir and PopArabia continue to solidify our presence in MENA through the acquisition of these important catalogs.\u201d<\/p>\n Spek, PopArabia\/Reservoir<\/span><\/p><\/blockquote>\n In its latest earnings report, for Q1 of its 2024 fiscal year, Reservoir reported<\/a> a 31% YoY<\/strong><\/span> increase in revenue, on the strength of a 37% YoY<\/strong><\/span> revenue jump in its Recorded Music division, which brought in USD $10.4 million<\/strong> for the quarter. Music Publishing revenues came in at $20.8 million<\/strong>.<\/p>\n A large part of that revenue growth came from the company\u2019s continued acquisitions. Stripping that out, revenue grew organically by 21% YoY<\/strong><\/span>.<\/p>\n Among the company\u2019s recent acquisitions were the rights to the catalogs of four of the original members of legendary R&B group The Spinners<\/a>, as well as the catalog of Miami Sound Machine lead songwriter Kiki Garcia<\/a>. Reservoir also acquired Tommy Boy Music<\/a> (known for Coolio, Queen Latifah and De La Soul) last year in a $100-million<\/strong> deal.<\/p>\n
\n