Warner Music Group has acquired Sweden-based digital compilation company X5 Music Group, according to a report by The Hollywood Reporter.
X5 is an independent digital-only label which was founded in 2003. Initially the company licensed and curated classical repertoire but now specializes in licensing pre-existing music for compilation albums and genre-specific music to create playlists, streaming and download services.
The company’s management team is currently led by CEO and co-founder Johan Lagerlof who will continue to manage the company even after the acquisition.
On the acquisition Lagerlof said…
“Our business is to increase the value of catalog music by putting it in the right context. We are excited to be working with the amazing catalog of Warner Music Group and look forward to harnessing our scalable business model to increase its value.”
Though Lagerlof is still leading the company it will be overseen by Warner Music’s Tim Fraser-Harding, who is President of global catalog and recorded music.
Fraser-Harding says…
“X5 is an incredibly exciting company that has done great things in the digital space…this team, led by Johan, has an impressive ability to curate specific genres of music and create engaging and accessible digital products and playlists. We hope to help X5 grow its business in the years ahead and believe that we in turn will benefit hugely from its experience.”
As of yet their have been no financial details disclosed, but it is thought that Warner Music Group may have scooped them up at a low price tag. For the music industry, this is just another major label controlling even more streaming playlists.
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