MBW’s World Leaders is an everyday collection during which we flip the highlight towards a few of the most influential business figures overseeing key worldwide markets. On this characteristic, we communicate to Matt Gudinski, CEO of the Mushroom Group. World Leaders is supported by PPL.
Not many music corporations get to have a good time a fiftieth anniversary. Even fewer handle to take action whereas remaining fully unbiased.
Australia’s Mushroom Group is likely one of the only a few to enter its sixth decade nonetheless flying the flag for musical autonomy in an more and more company world. And never solely that however, in 2023, the powerhouse based by Michael Gudinski in 1972 – and which introduced the world everybody from Kylie Minogue to Muse – finds itself stronger than ever.
Over the many years, Mushroom hasn’t simply developed a massively profitable document firm with a string of iconic labels underneath its umbrella. It additionally runs a publishing firm and one in every of dwell music’s most booming companies, Frontier Touring; whereas alongside the best way it’s expanded into artist administration, expertise reserving, neighbouring rights, movie and TV, merch and past.
Till March 2021, this empire was dominated by Michael Gudinski, one of many true giants of Australian and international music.
When he all of the sudden handed away, tributes had been paid by the likes of Ed Sheeran and Bruce Springsteen, whereas a life-sized statue of the mogul was unveiled exterior the Rod Laver Area in Melbourne in 2022.
Gudinski’s son Matt – who’d already spent 20 years on the firm, the final decade or so very a lot in partnership along with his father – stepped up as CEO and has been quietly steering maybe the corporate’s most important enlargement since these early buccaneering days of the Nineteen Seventies.
He took over on the most troublesome doable time, each personally and professionally, as he mourned his father and the world nonetheless struggled with the COVID-19 pandemic. However, as he chats to MBW over Zoom, recent from his honeymoon, it’s clear it was a job he’d been getting ready for all his life.
He grew up across the music business – he shares fond recollections of the likes of Madonna, Billy Joel, Sting and Rubbish hanging out on the Gudinski household home when he was a child. The day after he completed college, aged 17, he joined the household agency, initially engaged on the dwell facet, earlier than occurring to co-manage all components of the enterprise.
“There was no push from my dad to go on this route, it was simply pure.”
He lower his enamel within the business even earlier, selling his first dwell reveals aged 12 (“There was no push from my dad to go on this route, it was simply pure”), and he’s clearly inherited his father’s ardour for music and enterprise, even when – as he wryly notes – his trademark strategy is normally somewhat calmer than that of his maverick predecessor.
When Mushroom first expanded internationally within the ‘90s, within the type of the influential UK label Mushroom Infectious, issues had been fairly extra turbulent. But from its organized chaos emerged killer expertise of each the musical (Muse, Rubbish, Ash) and govt selection (Max Lousada, Stuart Camp and David Morgendorff all acquired their begin there, amongst many others).
Now Mushroom is as soon as once more making a bid for a global breakout, with a brand new London workplace (underneath the auspices of UK/Europe GM Madeleine O’Gorman and Worldwide Director Korda Marshall, the latter of whom helmed the unique Mushroom Infectious firm earlier than it was bought to Warner Music).
This time, the enlargement comes with a worldwide partnership with Common Music Group that may see UMG’s Virgin Music Group distribute and help Mushroom releases exterior of Australia and New Zealand, whereas Mushroom expertise will also be upstreamed to Common labels for the complete advertising and marketing therapy.
That deal is already bearing fruit, with rockers the DMA’s breaking massive within the UK and Mushroom/Virgin beating off all comers to signal resurgent electronic-rock terrors Pendulum, whereas gifted up-and-comers similar to Mia Wray look well-set to interrupt out.
However Mushroom’s new-look worldwide roster is hardly the one main growth at an organization that has additionally just lately launched a central administration division, Mushroom Administration – run by Gudinski and MD Sarah Donelly – and unveiled a brand new management construction at Frontier Touring, in partnership with AEG, which acquired a stake in Frontier in 2019.
The celebrations for Mushroom’s fiftieth are in full swing, with the discharge of the documentary, Ego: The Michael Gudinski Story; a raft of reimagined recordings during which present Mushroom acts cowl basic songs from the label’s archive; and an all-star anniversary live performance set for November.
All of which suggests it’s excessive time for MBW to take a seat down with Matt Gudinski, attempt to keep away from arguing over the latest Ashes cricket collection that noticed England and Australia combat out a contentious draw, and discover out what the subsequent 50 years have in retailer for the magic of Mushroom…
HOW DOES IT FEEL FOR MUSHROOM RECORDS TO BE EXPANDING INTERNATIONALLY AGAIN?
It’s good to be again in operation. Our massive focus again in 2018 was re-establishing Mushroom on a worldwide scale, particularly inside the rights division of our enterprise.
Since that first foray, once we opened up within the UK within the mid-‘90s, there are extra Australian artists having their second on a worldwide scale and numerous artists that we’ve been fortunate sufficient to work with have skilled vital success globally. We needed to re-establish our international community to boost that and put boots on the bottom to help the subsequent era of expertise coming by.
“All of it comes all the way down to the proper individuals and Maddie and Korda are the muse of that.”
It’ll be rather less chaotic than within the ‘90s, there’s been a couple of classes discovered from that – ! – nevertheless it’s actually thrilling to have Korda [Marshall] come again on as a part of the household and Maddie [O’Gorman] is implausible.
All of it comes all the way down to the proper individuals and Maddie and Korda are the muse of that.
TAKING OVER AS CEO WHEN YOU DID MUST HAVE BEEN TOUGH?
It was, however I had a fantastic platform to construct upon.
My dad and I had been working hand-in-hand, main the enterprise and the technique since most likely about 2013. It might have been so much tougher, however plenty of the route we had been stepping into had my fingerprints on it. That helped fairly a bit.
I undoubtedly wasn’t desirous to take this place at this stage. Dad passing apart, it was such a difficult interval for the music business as a complete, however particularly at Mushroom, with what Covid did to so many elements of the Mushroom enterprise.
“Not solely was it a difficult time personally and for everybody within the firm dropping my Dad, nevertheless it occurred at a time when there have been so many unknowns as to what the long run held.”
A giant a part of our enterprise facilities round dwell occasions, touring and merchandising, and it was simply two years of full shutdown. So, not solely was it a difficult time personally and for everybody within the firm dropping my Dad, nevertheless it occurred at a time when there have been so many unknowns as to what the long run held.
We made an enormous level of retaining all our workers in the course of the Covid interval, which plenty of different comparable companies in our business weren’t in a position to do, nevertheless it was difficult occasions for us. Almost two years on, I can confidently say that we’ve actually come out the opposite facet.
The final 12 months for the Mushroom Group had been, if not probably the most profitable, definitely probably the most profitable years within the firm’s historical past.
DID YOU EVER GIVE ANY THOUGHT TO SELLING UP OR WALKING AWAY FROM THE BUSINESS?
I’ve been within the enterprise for over 20 years. I promoted my first present after I was 12 years outdated, which is 26 years in the past now. It’s at all times been in my blood, it’s a household enterprise and there was by no means any considered not persevering with.
I’m actually specializing in consolidating elements of the group in the mean time; to not downsize, if something to drive larger success and enhance the methods we now have. The administration division goes from power to power, and we now have nice companions and artists which can be a part of it.
We simply launched a brand new reserving company and we’re going forward with numerous initiatives within the movie and TV area. It’s full steam forward.
IN WHICH WAYS WOULD YOU SAY YOU’RE DIFFERENT TO YOUR DAD?
My dad would at all times say that we now have a really comparable ardour and we’re very loyal individuals.
My dad’s strategy was at all times somewhat bit extra chaotic than mine, I don’t know if it’s generational however I’d most likely be a bit calmer! However, regardless that we each take a distinct strategy, it’s with the identical values and ethos.
“It’s all about that unbiased spirit: you’ve acquired to like what you’re doing to achieve success on this business.”
It’s all about that unbiased spirit: you’ve acquired to like what you’re doing to achieve success on this business, you’ve acquired to have ardour for what you’re doing to be an unbiased music group.
There aren’t many profitable companies which can be nonetheless unbiased after 50 years so, to do this, you’ve actually acquired to stay to what the core rules are. My dad instilled these into me fairly early. We at all times had the identical concepts, only a completely different means of getting there.
MUSHROOM IS THE ORIGINAL 360-Diploma music COMPANY. HOW HARD IS IT TO MAKE THE DIFFERENT PARTS WORK TOGETHER? DOES IT MATTER to you IF ARTISTS ONLY SIGN TO ONE PART OF THE GROUP?
My dad was most likely a bit extra fierce on that than I’m. I need artists to really feel they will work with us in as some ways as they need. It’s by no means been one thing that’s pushed upon artists – to say, ‘Look, you need to be a part of all elements of the group’.
Our mission is to create a platform for artists to achieve success. If we’ve acquired an artist signed to the label and our administration enterprise will help them obtain that success, nice. If one other supervisor will help us obtain that success, then that’s nice as properly. And likewise, throughout publishing, the reserving businesses, merchandise and all these arms.
After we do work with artists throughout many elements of the group, we’ve seen some nice success for these artists over time. However our artists are our power, we’re an artist-friendly enterprise and issues have to return naturally.
HAS STREAMING OPENED UP MORE OPPORTUNITIES FOR AUSTRALIAN ARTISTS TO BREAK OUT INTERNATIONALLY?
I believe so, nevertheless it’s additionally such a difficult period due to the amount of artists throughout the globe.
In Australia, we’ve acquired extra superb expertise than ever, however there’s nonetheless solely the identical quantity of alternatives. There are plenty of artists combating for a similar area so, whereas we’re seeing extra Australian artists have that international success, there’s plenty of superb expertise that’s not getting the cut-through or the alternatives they need to.
That’s one of many downsides of how straightforward it’s for musicians to get their music out to the world. It’s a fantastic factor that’s grown our business over the previous couple of many years, nevertheless it’s additionally creating challenges as a result of it’s such a crowded area.
IS IT HARDER FOR INDIE LABELS TO COMPETE WITH THE MAJORS THESE DAYS?
Positively. These days, all labels wish to signal the identical artists and that’s why it’s turn into so aggressive.
“Fifteen years in the past in Australia, the majors wouldn’t be focused on 9 out of 10 artists that we had been attempting to signal. Now, just about each artist we signal, we’re competing with the majors.”
Fifteen years in the past in Australia, the majors wouldn’t be focused on 9 out of 10 artists that we had been attempting to signal. Now, just about each artist we signal, we’re competing with the majors. And that’s comparable on a worldwide scale as properly.
IS THAT WHY YOU DID THE VIRGIN DEAL?
We’ve had a long-standing relationship with Common for our bodily enterprise in Australia.
We explored many choices as to how we needed to go concerning the first steps with the worldwide set-up, and partnering with Common and Virgin was a key a part of that. It appears like we’ve made the proper transfer, they’ve been an enormous a part of the success we’ve had with artists just like the DMA’s to date.
UNIVERSAL DOESN’T HAVE ANY EQUITY IN MUSHROOM AS PART OF THAT DEAL. BUT WILL IT ALWAYS STAY THAT WAY, OR COULD IT DEVELOP, LIKE THEIR DEAL WITH PIAS?
We’ll fear about what’s occurring at present, not tomorrow. You’ll be able to by no means say by no means to something however there’s no fairness and it’s undoubtedly not a part of our plan in the mean time.
Our plan is to additional construct Mushroom as a worldwide unbiased powerhouse.
CAN AN INDIE LABEL PRODUCE A TRULY GLOBAL STAR IN THE WAY A MAJOR LABEL CAN?
Anybody can do this. You’ve simply acquired to have the proper set-up in place and that’s what we’re centered on creating in the mean time. There was a interval when extra artists had been being unbiased in their very own proper, however with how crowded the market is and what number of artists are competing for the restricted alternatives on the market, it’s modified.
Artists know they want a companion on their facet to realize the success that they need, whether or not that’s an unbiased music firm like Mushroom or a significant like Common.
IF YOU COULD CHANGE ONE THING ABOUT TODAY’S MUSIC INDUSTRY, RIGHT HERE AND NOW, WHAT WOULD IT BE AND WHY?
It might be round placing a larger worth on streaming income. We’ve lastly had a worth improve on Spotify for the primary time because it launched in Australia and, with the challenges that face rights-holders as of late, we have to see a larger worth placed on music copyrights.
I actually hope to see elevated income for artists by the streaming platforms within the years to return. The expertise internationally is bigger than ever, however there’s a lot of that expertise that isn’t in a position to make a residing out of this but.
“To solely have one worth improve in a 13-year interval [music’s] most likely nonetheless undervalued in the mean time.”
Like something, it’s acquired to be balanced. However to solely have one worth improve in a 13-year interval, it’s most likely nonetheless undervalued in the mean time.
For those who have a look at the final change in the price of residing over that time frame, it doesn’t match up.
INTERESTING TO HEAR SOMEONE WHO OWNS A LABEL CALLING FOR ARTISTS TO GET MORE MONEY FROM STREAMING…
That’s most likely due to us being an unbiased firm. In the kind of offers we do, we’re a companion with all our artists, so we most likely take a distinct strategy to what the majors do of their deal buildings and the way earnings is shared.
IN CRICKET TERMS, MUSHROOM IS 50 NOT OUT. WHAT DO YOU NEED TO DO TO PUSH ON FOR THE CENTURY?
Given how a lot Mushroom advanced and the business modified up to now 50 years, I’ve little question that’s going to occur at an much more speedy tempo within the subsequent 50.
My greatest aim is to set the corporate as much as hopefully be as profitable as we are actually, if no more profitable, for the subsequent 50 years.
I’ll be judging our success on how the brand new companies we’ve acquired concerned in proceed to develop and the way we will additional have an effect on a worldwide scale.
I’m proud and honoured to have the ability to lead the enterprise that my dad based into the subsequent period, and hopefully set it as much as nonetheless be a number one music and leisure enterprise in one other 50 years’ time.
World Leaders is supported by PPL, a number one worldwide neighbouring rights collector, with best-in-class operations that assist performers and recording rightsholders around the globe maximise their royalties. Based in 1934, PPL collects cash from throughout Africa, Asia, Australia, Europe, and North and South America. It has collected over £500 million internationally for its members since 2006.Music Enterprise Worldwide
