In 2023, Denis Ladegaillerie, the CEO of Believe, revealed to Billboard his ambitious plans to target the expansive U.S. music market. Fast forward two years, and the Paris-based company is poised to significantly broaden its artist and label services business, setting its sights on the largest music market in the world. This strategic move marks a pivotal moment for Believe as it seeks to establish a strong foothold in a competitive landscape that is ripe for innovation and growth.
“We are actively assembling dedicated teams across 50 countries, with plans to expand further into additional markets, starting with the U.S. this year,” asserts Romain Vivien, the global head of music and president for Europe. Notably, Believe is currently on the lookout for a Los Angeles-based Vice President of Labels and Artist Solutions who possesses the ability to “grow, scale, and motivate high-output teams,” as outlined in the job posting. This recruitment effort underscores Believe’s commitment to establishing a robust presence in the U.S. music industry.
Established in 2005 by Ladegaillerie, a former executive at Vivendi, Believe has experienced remarkable growth by strategically focusing on prominent European markets and nurturing developing markets globally. Between 2020 and 2024, Believe’s revenue surged by 124%, reaching an impressive 988.8 million euros (approximately $1.05 billion) through a combination of organic growth, strategic acquisitions, and targeted investments. The company’s diverse portfolio boasts major players such as Nuclear Blast and Groove Attack in Germany, PlayTwo in France, and the Doğan Music Company, recognized as Turkey’s largest independent record label. In a significant 2023 move, Believe expanded into music publishing by acquiring the U.K.-based Sentric Music Group for $51 million.
The U.S. market presents an immense opportunity for Believe, yet it is also highly competitive. According to the International Federation of the Phonographic Industry (IFPI), the U.S. represented a staggering 38% of global recorded music revenues in 2024. This figure is 2.8 times greater than the combined revenues of Believe’s two largest markets, France and Germany. The artist and label services sector is currently populated by formidable competitors such as Virgin Music Group (owned by Universal Music Group), Downtown Music Group (which has been acquired by UMG but is still awaiting approval from the European Commission), The Orchard from Sony Music, AWAL, and various smaller independent entities actively vying for market share.
In 2024, the Americas accounted for only 15% of Believe’s revenue, trailing behind Asia, Oceania, and Africa, which contributed 24%, and Europe at a substantial 61%, as reported in the company’s earnings report. A significant portion of this revenue from the Americas stemmed from TuneCore, a U.S.-based digital distributor that Believe acquired in 2015. TuneCore reported revenues of 64.6 million euros ($69.9 million), which pales in comparison to the 924 million euros ($1 billion) generated from Believe’s premium solutions business, which encompasses record labels and services tailored for artists, labels, and songwriters.
The current U.S. market landscape is increasingly favorable for independents like Believe, who adopt a digital-first approach. Over recent years, traditional gatekeepers such as television, radio, and physical retail have seen their influence diminish, presenting significant challenges and costs for independent artists. The emergence of digital platforms like TikTok, Spotify, and YouTube has created new avenues for “digital” artist development, as Ladegaillerie expressed in his 2023 comments to Billboard. This shift towards digital has made it easier for artists to reach audiences and grow their fan bases without the constraints of traditional media.
By concentrating on mid-sized and developing markets, Believe has anticipated a global music ecosystem where streaming and social media cultivate vibrant local music scenes. As an independent entity, Believe has avoided falling victim to the “innovator’s dilemma,” which often inhibits larger corporations from seizing smaller yet potentially lucrative opportunities that can yield significant revenue over time. These mid-sized and emerging markets have produced a wealth of music, yet they have often organized independently due to major music companies focusing their investments on larger markets in North America and Western Europe. With the rise of digital services such as YouTube and Spotify, artists and labels have increasingly sought out reliable digital distribution services and marketing expertise to effectively promote their work.
“It’s imperative to be present for the local artist community in every specific market,” emphasizes Vivien, “supporting the growth of local artists so they can thrive within their own country and eventually expand beyond their local scenes.” This focus on local community engagement is central to Believe’s mission, ensuring that artists receive the support they need to succeed in an increasingly globalized music landscape.
According to Vivien, India has emerged as Believe’s third-largest market after France and Germany, reflecting the company’s successful operations in the region for over a decade. The country ranks 15th globally in 2024, as per the IFPI. Indian music is characterized by its hyper-regional diversity, and artists have leveraged global streaming platforms to connect with Indian communities residing in Canada, the U.S., and Australia. Notably, a third of Believe’s Punjabi streams originate from outside of India, highlighting the global appeal of Indian music and its artists.
In the competitive U.S. market, Believe is poised to encounter a growing number of artists eager to cultivate their careers while maintaining ownership of their rights. In 2024, independent distributors accounted for a remarkable 91.8% of the 99,000 tracks uploaded to streaming platforms daily, as reported by Luminate. Furthermore, the share of recorded music consumption by independents has remained significant, ranging from 15.6% in 2024 to 16.5% in 2022, reflecting a robust demand for independent music. Within the major labels’ market share, there is a noticeable increase in licensing agreements and joint ventures that afford artists greater control over their ownership and creative output.
The specifics of Believe’s client agreements can vary widely, but typically, the company retains a portion of the revenue generated from artists’ music. Vivien explains that these agreements can range from co-production arrangements to distribution-and-services contracts. Believe offers comprehensive support encompassing marketing, promotion, content creation, neighboring rights, synchronization, merchandising, branding, and, in France, even touring arrangements. Additionally, Believe sometimes provides financial advances; as of December 31, 2024, the company reported holding 293 million euros ($305 million) in artist advances on its balance sheet.
The cornerstone of Believe’s approach, as Vivien instructs his team, is to enter into agreements only after fully comprehending the unique requirements of each artist. “Some artists possess robust management capabilities, while others have the ability to produce their music independently,” he elaborates. “Some may be adequately funded and, therefore, don’t require advances to create their master recordings. Conversely, some artists may need financial support, marketing assistance, or services that extend beyond their local markets.”
Believe’s competitors have begun to adopt a similar focus on label services and emerging markets. In the past year, UMG acquired the remaining majority interest in [PIAS] and, through its Virgin Music Group, purchased Downtown Music Group. Meanwhile, Sony Music expanded its portfolio by acquiring artist services provider AWAL in 2021. In 2024, Warner Music Group strengthened its presence in India through a partnership with Global Music Junction and an investment in the live entertainment and ticketing platform SkillBox.
Believe went public in 2021 but was taken private in 2024 by a consortium led by Ladegaillerie, along with two investors, EQT and TCV. In April, the company initiated a bid to acquire the remaining 3.3% of its share capital, valuing Believe at $1.75 billion. This strategic move allowed the consortium to fend off interest from Warner Music Group, ensuring Believe’s independence from the three major music conglomerates. This decision not only secures Believe’s autonomy but also positions the company with ample resources to pursue its mission. As Vivien succinctly puts it, “We are entrepreneurs dedicated to supporting and empowering other entrepreneurs.”
