State Champ Radio BeatStars
An advantage of being an aspiring artist in 2023, rather than 1983 or even 2003, is having near-instant access to millions of pre-made instrumentals — a club-wrecking drill track or soothing South African amapiano beat is just a few clicks away. For many acts today, the first step in the songwriting process is scouring sites like BeatStars, Soundee or YouTube for the right piece of music. “I just go on YouTube and look up ‘indie-pop-type beat’ or ‘R&B Daniel Caesar-type beat,’ ” Island Records artist Diego Gonzalez told Billboard last year. “I scroll through those until I find one I really like. Then I download it and start humming melodies.”
This approach has led to breakout singles and major-label deals for Muni Long, ThxSoMch, dv4d, Tai Verdes, Wisp and more. The affordability of the online beat economy, where an instrumental might cost as little as $2.99, makes it extremely convenient for young artists. But the casual nature of the business arrangements can come back to haunt them.
Acts typically license the instrumentals they want for cheap rather than buying them outright (which can cost significantly more). What they may not understand, however, is the agreements they accept to access these beats typically grant them limited rights by capping the number of streams a song can earn and allowing other acts to license the same piece of music. If a song built on a leased instrumental becomes a hit, the artist then has to circle back and try to buy out that beat. They have essentially built a highly desirable house on real estate they don’t own.
That’s when negotiations can become fraught and even lead to litigation, according to entertainment attorneys. “When we come on board and a song is starting to go, the first question is always: ‘Do you have paperwork with whoever did this track?’” says Todd Rubenstein, founder of Todd Rubenstein Law. “Licenses don’t give you exclusive rights, so there’s an opportunity for people to come back and leverage you when a record explodes.”
A producer may also be reluctant to assign exclusive rights to an instrumental they’ve already licensed hundreds of times. “If a song is going viral and a record company wants to enter into an agreement, the value of the track is impacted by the fact that you don’t have original materials and the beat exists elsewhere,” explains Leon Morabia, a partner at Mark Music & Media Law.
“These things happen all the time,” says David Fritz, co-founder of law firm Boyarski Fritz. “A baby act is doing well, and then they get a producer saying, ‘You’re over the streaming threshold on this track and we didn’t work out a deal; you have to take the song down’ ” — just at the point where artists and their teams need to slam the pedal to the metal by pouring money into marketing.
Not surprisingly, many producers like these nonexclusive agreements. “The leasing system allows the producer to be at the [negotiating] table if that beat turns into something bigger,” BeatStars president of music and publishing Greg Mateo says.
The music industry is “skewed toward artists and labels having the power,” adds Tiffany Almy, an entertainment attorney. “Producers are part of this, too,” she continues, “and [the licensing economy] gives them a voice, a platform and, potentially, a way to have more opportunities going forward.”
Fritz says the risks involved with beat-licensing deals are one of the reasons he co-founded Creative Intell, a subscription-based educational platform that dissects music contracts, among other business topics, across 18 different courses. Steven Ship, who co-founded the company with Fritz, says they hope to “revolutionize the way dealmaking is conducted in the business.” The first step toward that goal, he adds, is education “so people can understand what they’re signing and how to protect themselves.”
Creative Intell relies on animated modules to take users through beat-licensing agreements paragraph by paragraph, focusing in particular on BeatStars. (Fritz says his company is in negotiations with several music distributors, including Vydia, UnitedMasters and ONErpm, to make Creative Intell available to their clients.) The courses warn artists to look out for streaming limits and clauses that let the beat-makers end a lease at their sole discretion. Creative Intell also offers users an alternative licensing agreement that Fritz and Ship say is more artist-friendly.
The platform advises acts to be especially wary of “beat trolls” — people with mercenary motives who target viral songs built on licensed beats and try to acquire the underlying instrumental. If the trolls succeed in this effort, they own a piece of the artist’s most important track and acquire substantial power to influence — and extract money from — any subsequent label negotiations, Rubenstein says.
If a song explodes “and you don’t have perfect title to all your work, then you’re going to be a target for people, guaranteed,” adds Nicolas Tevez, founder of Tevez Law.
Mateo says he’s aware that the licensing system can create issues and has personally helped some artist lawyers get contentious deals done. BeatStars also has started to provide some major labels, including Atlantic Records and Island Records, with an assortment of instrumentals where terms of use have been agreed upon ahead of time. That way, if an act likes a beat and it turns into a hit, there aren’t any additional complications. “The last thing we want is for a placement to die,” Mateo says.
Despite the potential pitfalls of beat marketplaces, they remain popular with artists and serve as a lifeline for some beat-makers.
Even if producers secure prominent placement on a major-label album — a dream scenario — their future is hardly secure; they might not see any money for more than a year. But in online beat marketplaces, producers can earn a good living through a steady stream of leasing transactions. “A bunch of my clients are crushing it on BeatStars, making $100,000 a year,” says Adam Freedman, an entertainment attorney.
Still, for unsigned artists, learning the ins and outs of the licensing agreements remains paramount. While Ship from Creative Intell and Mateo from BeatStars have conflicting ideas about the best way to draft a beat license, both agree that there needs to be more education about how these deals work.
“Read through the terms and conditions,” says Jason Berger, a partner at Lewis Brisbois. “There’s nothing worse than you not understanding how something is going to play out based on an agreement you’ve already entered.”
Warner Music Group has partnered with British health tech start-up MediMusic to trial “music as medicine” to help relieve pain, anxiety and stress. MediMusic will conduct research testing in several closed randomized controlled trials in both the United States and the United Kingdom that will deliver playlists from the Warner Music catalog to patients and sample groups to observe how they respond to the music in real-time.
“MediMusic’s proprietary algorithms extract the relevant features from the digital DNA of a piece of music, resulting in a fingerprint for healthcare use,” according to a press release, with the help of artificial intelligence, machine learning and patient data. The company then automatically creates personalized 20-minute playlists and plays the music through a streaming device called the MediBeat and a pair of headphones. Patients wear a heart rate monitor on their wrists to monitor the physiological effect of a piece of music.
The release states that initial trials conducted by MediMusic and the UK National Health Service using the MediMusic technology reduced the heart rate of anxious dementia patients by 25%.
Secretly Distribution announced new global multi-year deals with Danger Mouse‘s 30th Century Records, the catalog of singer-songwriter David Gray and Madlib‘s Madlib Invazion. Secretly will support all of 30th Century Records’ new music and back catalog, including vinyl reissues. For the Gray catalog, the company will work with Bella Figura Music to provide the catalog with global digital support and vinyl reissues. And for Madlib Invazion, Secretly will handle distribution for Madlib and the rest of the label, including new music from Madlib expected next year.
Additionally, Secretly announced multi-year contract renewals with three longtime label partners: Captured Tracks, Rhymesayers Entertainment and Run for Cover.
SoundCloud announced partnerships with dance label Helix Records and hip-hop label Payday Records to offer expanded global artist services for emerging electronic and hip-hop artists identified by SoundCloud for a potential signing with one of the labels.
ASM Global and Voltus, a distributed energy resource platform and virtual power plant operator, struck a partnership through which ASM Global-managed venues will be paid for energy reduction efforts across all venues located in wholesale and regulated power markets in the United States. Earlier this year, the ASM Global Acts Foundation announced a plan to convert the company’s venue portfolio into the world’s most sustainable, which includes reducing energy consumption by 25% by 2030 from this year’s baseline and becoming carbon neutral by 2050.
Colorado Springs, Colo.-based live entertainment company Notes Live entered into a non-binding letter of intent for a business combination transaction with wine producer Fresh Vine Wine, a company listed on the NYSE American stock exchange. The two parties expect to negotiate and enter into a definitive agreement before the end of January; Notes Live is planning to seek shareholder approval for the transaction at a meeting scheduled for Jan. 31.
The final closing is expected in the second quarter of 2024, subject to closing conditions including approvals by NYSE American of the continued listing of the combined company’s common stock after the closing. The combined company’s common stock would trade on the NYSE American under the ticket “VENU” following the closing.
Notes Live currently operates two entertainment campsites in Colorado Springs and Gainesville, Ga. and is also developing luxury amphitheaters in Colorado Springs; Broken Arrow and Oklahoma City, Okla.; and northern Texas. According to a press release, “The parties expect that the owners of Notes Live would own a substantial majority of the issued and outstanding shares of Fresh Vine common stock on a post-transaction basis, which may be in excess of 90%.”
The Feldman Agency is teaming with Tennis Canada to launch The Bowl at Sobeys Stadium, a new open-air concert venue in Toronto. Located on the York University campus, the Bowl will accommodate up to 9,000 guests and feature private lounges and an onsite restaurant.
Lucas Thomashow, former senior vp at Avex, announced SANA, a new label that will be a joint venture with recently launched artist and label services company Santa Anna (led by Todd Moscowitz and Lee L’Heureux), Sony Music and independent label LISTEN TO THE KIDS (founded by Conor Ambrose). SANA’s partnership with Santa Anna will encompass distribution, marketing and promotion, while the A&R and marketing teams at LISTEN TO THE KIDS (which partnered with Santa Anna in January 2023) will work with SANA on the strategy and development of the label. SANA will be based in LISTEN TO THE KIDS’ studio and offices in L.A.
Production company Jesse Collins Entertainment has signed with CAA for representation. The company, which boasts three divisions — specials, unscripted and scripted — is next slated to produce the 75th annual Emmy Awards. The company’s credits include the American Music Awards, BET Awards, Becoming a Popstar, Cardi Tries, American Soul and The New Edition Story. Founder/CEO Jesse Collins and president Dionne Harmon executive produce all Jesse Collins Entertainment programming; the company has a multi-year, non-exclusive overall deal with Paramount Global.
Lyric licensing and data solutions company LyricFind and music metadata leader Music Story extended and expanded their multi-year relationship. The broader partnership allows Music Story to help further LyricFind’s commercial reach by selling the company’s services to customers in the United States and globally. Prospective customers can also tap Music Story’s U.S. and international metadata services.
“By making Music Story an extension of LyricFind’s services, we’re taking a major step forward in unlocking the power of metadata to help more people discover and enjoy the music they love with lyrics while ensuring that songwriters and copyright holders are fairly compensated for their incredible work,” said LyricFind founder/CEO Darryl Ballantyne in a statement.
B2B streaming media service Tuned Global partnered with the new “artist-centric” streaming platform Sona to help launch Sona’s music service and marketplace, sona.stream. Tuned Global will provide content delivery, tools and reporting services for Sona under the deal, including its content delivery and APIs that will allow fans to create playlists and launch radio stations based on their favorite artists (beginning in 2024).
Co-founded by artist/producer TOKiMONSTA and Laura Jaramillo, Sona allows fans to stream music for free without subscriptions or ads but also to buy SONAs, or digital twins of specific songs that share future streaming rewards with their owners. Artists can choose which songs to auction as SONAs, while fans can purchase songs as SONAs to earn 70% of that song’s future streaming rewards on the Sona platform.
Beats marketplace BeatStars has partnered with software developer Resonant Cavity, creators of the popular mobile studio and vocal effects app Voloco, to integrate with Voloco beginning in January. “Our collaboration with BeatStars will bring the best beat catalog into the most powerful mobile recording studio,” said Patrick Flanagan, CEO/founder of Resonant Cavity, in a statement. “As artists experience studio-quality vocals from Voloco over top-tier beats from BeatStars producers, they’re going to be inspired to create something exceptional.”
Beats marketplace BeatStars signed a partnership deal with AI music startup Lemonaide that will make “ethically-sourced AI” available to music creators to help them write and produce new works. Lemonaide’s AI technology “purposefully generates short musical ideas to spark inspiration, push creative boundaries, and pull artists out of their creative slump,” according to a press release. The companies claim the AI is “trained exclusively on voluntarily contributed data from producers” to ensure proper compensation for and active participation by those whose musical works are used.
Music festival and live events promoter Insomniac and music and lifestyle brand Emo Nite announced a partnership that will encompass projects ranging from events to music to apparel. First up is the launch of Grave Rave, a new event series coming to Los Angeles in December that will feature “both legendary and emerging bands and DJs…fusing the sounds of electronic music with the melodies of the emo, pop-punk, and rock genres,” according to a press release. A preview party for the series will be held on August 26 at Insomniac’s Academy LA venue with a surprise lineup of DJs who “built their careers on pop-punk/alternative/emo influences,” the press release adds. The two companies have also teamed for the launch of a new record label, Graveboy Records, with forthcoming single releases by We The Kings, Say Anything and Noelle Sucks. The first collection of Insomniac x Emo Nite merch will also debut at HARD Summer 2023.
Atlanta-based record label and management company Love Renaissance (LVRN) will utilize music streaming and discovery platform Audiomack‘s proprietary ArtistRank system to discover and develop emerging musicians under a new partnership. According to a press release, ArtistRank “allows partners to identify better when an artist is building a lasting fanbase, differentiating itself from other analytical tools by emphasizing engagement metrics rather than solely through play growth.” It provides detailed analytics on fan demographics as well as predictive data that analyzes an artist’s potential growth trajectory.
NetEase Cloud Music formed a partnership with leading Chinese music and entertainment company RYCE Entertainment that will see the companies extend their previous agreement while also giving NetEase access to an expanded portfolio of RYCE’s music catalog in China, with 30-day initial launch rights to distribute new additions to the catalog. The companies will additionally team up to promote RYCE artists and music in China. RYCE’s catalog includes works by Jackson Wang, Amber Liu and Tablo, among many others.
NLess Entertainment co-founders Zach “Z-Bo” Randolph (a former NBA star) and Marcus “Head” Howell are leading a funding found for Connect Music Group, a Black-owned Memphis music company that offers tools and resources to help independent musicians build successful careers while retaining ownership of their masters. Along with fellow investor Richard W. Smith, CEO of airline and international at FedEx, Howell recently hosted an investor event to raise capital for Connect. The amount of the funding round is unknown.
MNRK partnered with New York industry workshop Steel Sessions — based in downtown recording studio The Engine Room — along with its producers Francis “Buda Da Future” Ubiera, Dan “Grandz Muzik” Garcia and Michael “Mike Kuz” Kuzoian. Under the deal, Ubiera, Garcia and Kuzoian will develop artists in the studio to eventually sign them to MNRK while also providing production services for MNRK Urban’s frontline releases, lo-fi instrumental albums, brand partnerships, soundtracks and artist synchs.
Deezer renewed its partnership with French telecoms provider Orange which was first struck in 2010. Under the deal, Orange customers will continue to have access to the Deezer streaming service. In celebration of the renewal, Deezer and Orange will offer six months of Deezer Premium for free to new customers who subscribe to a “Plus que forfait” plan.
Don McLennon, formerly of Brockhampton, has partnered with Nashville-based music tech company Artiphon to release his new track, “Halcyon,” exclusively via the company’s handheld smart instruments, Orba 2 and Chorda. Utilizing stems, Artiphon and McLennon will offer fans the ability to remix the track without any prior musical skill.
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