Photo credit: Warner Music Group
Warner Music Group has acquired a stake in leading Hungarian record label Magneoton in a partnership that includes renewal of license agreements and a new distribution deal.
Warner Music Group (WMG) has acquired a stake in Magneoton, the leading Hungarian record label. The partnership also sees the companies continuing their longstanding licensing agreement while adding a new distribution deal with strategic plans to develop a joint local roster.
WMG and Magneoton have had a relationship for 30 years. Founded by former artist László Pásztor and artist manager István Joós, Magneoton was acquired by WMG in 1993 and operated as Warner Music Hungary from 1993 to 2004. Through a management buyout, Magneoton separated from WMG and operated as a local independent label, continuing to become a Warner Music licensee in 2010.
Magneoton has expanded its business to include operations as a management company, concert promoter and digital music agency. It has worked with local superstars like Majka, Curtis, DR BRS and Lotfi Begi, as well as a new generation of talent including two of the most watched rising stars, Bongor and Sisi.
“This latest phase of our relationship with Magneoton marks a significant return for Warner Music to Hungary,” said Izabela Ciszek-Podziemska, General Manager, Warner Music South East Europe. “While Magneoton will continue to act as a licensee for our international repertoire, we will now also work together to discover great Hungarian artists and bring their music to the world.”
“Magneoton and Warner Music have a long history of working together and delivering incredible results for our acts,” adds Noemi Virag Csontos, General Manager of Magneoton. “This deal underscores our commitment to bringing Hungarian artists to international attention while giving local fans unprecedented access to the music of some of the world’s biggest stars.”
The first release under the new deal was Heartbreak, a collaboration between Lotfi Begi and Cecilia Gault. An upcoming title, Heaven by Stadiumx, Sam Martin and Azahriah, is out Friday.
One of the most-streamed Hungarian artists of all time, Stadiumx has delivered hits starring EDM stars like Dave Guetta, Nicky Romero and Bob Sinclar. Azahriah is a well-known local artist making waves on the Hungarian music scene, recently having eight tracks on the local top 10 Spotify charts.
This new deal is Warner Music’s latest move in Eastern Europe, where the company is significantly expanding its footprint with the appointment of Izabela Ciszek-Podziemska as General Manager of Warner Music South East Europe, investment in Serbian record label Mascom Records and Polish promoter Big Idea has partnership with Polish company Step Records, acquisition of Slovak Opus Records and a deal with leading Czech hip-hop label Mike Roft.