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Last week, Universal Music Group filed a $500 million lawsuit against TuneCore and its parent company Believe over alleged copyright infringement of UMG’s recordings. The lawsuit presented two core issues: first, that bad actors used TuneCore to upload songs to streaming services that were simply sped up or remixed versions of UMG-copyrighted recordings, often listed under slight misspellings of the real artist, like “Kendrik Laamar” or “Arriana Gramde.” Second, it claimed that “Believe has taken advantage of the content management claiming system” on YouTube “to divert” and “delay… payment of royalties” that belong to record labels.
If you’ve been following the issues in this case over the last few years, this lawsuit feels like a long time coming, and the issues that UMG raises are certainly not just a TuneCore-specific issue — they’re an industry-wide DIY distribution issue. With the vast scale of songs being uploaded through these companies, and staffs that are too small to catch every bad actor, infringing material has, according to just about everybody, flooded onto streaming services.
The distributors know it’s a problem, too. It’s why TuneCore, DistroKid, CD Baby, Symphonic, Downtown and more formed the Music Fights Fraud coalition in 2023 and say they have increasingly invested in preventing fraud and infringement. Unfortunately, Beatdapp, the industry leader in identifying streaming fraud, believes the problem has only worsened since then. UMG is also not convinced that TuneCore is doing enough, saying that the company’s business model incentivizes them to “turn a blind eye” to this damaging activity.
Below, I’ve condensed some of the arguments I’ve heard among industry leaders both for and against DIY distribution continuing just as it is today. I’ll let you judge which outcome is better.
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Argument #1: Why its essential to protect DIY distribution as is
It’s easy to take for granted today that anyone who wants to release a song can do it themselves, but that wasn’t always the case. When physical records reigned supreme, record label contracts often favored the companies involved, and seldom went the artists’ way. At the time, artists were essentially forced to sign to a record label if they wanted a chance at shelf space in stores — especially worldwide. This left artists vulnerable to unequal label deals that locked them in for many albums while the label took the lion’s share of the royalties and the copyrights, often in perpetuity.
When Distrokid, CD Baby, TuneCore and the like emerged in the 2000s, they let anyone sign up for distribution services to digital outlets like the iTunes Store for a flat fee and forever altered the power dynamic. Today, the playing field has leveled significantly: hobbyists can get their music out to the world and artists with professional aspirations can wait as long as they want before they have to give up a single percentage point of their master recordings to a label. These companies helped shift negotiating power to the artists, and for the first time, started the process of allowing music fans to decide what songs would pop, rather than the labels that pulled favors with the gatekeepers who worked in radio, retail and the press.
The shift also presented a new, lucrative business opportunity. Music companies no longer need superstars in their catalogs to make their numbers. In fact, they don’t need catalogs at all. A company can now make money by providing services, like distribution, to the masses of previously-overlooked musical hopefuls instead, relying on volume to make up the numbers.
But that volume allowed for the proliferation of fraud, which is a problem that evolves every day, and bad people will always find loopholes. Already, most distributors have implemented common-sense regulations and checks to curb fraud and invested money into quality control teams. But for many experts, it feels impossible to totally solve the problem. As it’s commonly said, this is an endless game of “wack-a-mole.”
But if the barriers to DIY distribution are too significant — like limiting the number of releases, gating who can use it, hiking the platform fee, adding a streaming threshold, or slowing down release time — it could take power away from indie musicians that they have become accustomed to. Such a move would be a step backward for artistic freedom, and the cost of implementing these regulations could threaten to put some of the smaller distributors out of business. Less choice and competition in DIY distribution isn’t better for users.
It’s impossible to put the DIY distribution genie back in the bottle. Artists, who have become used to the current system, would still find ways to get their music out there quickly and cheaply — whether fraudulent or not. Likely, that music would go out on social media or to social-streaming hybrids like YouTube and SoundCloud, both of which pay out royalties and can still be cheated. Streaming services, like Spotify, Apple and Amazon, would risk losing listenership and music discovery to social media platforms — something they already struggle with in today’s TikTok era — and it might not even solve the problems it targeted.
Argument #2: Why the DIY distribution system is in need of serious reform
Currently, over 120,000 songs are uploaded to streaming services every day, a rate that has rapidly increased for years and will likely continue to do so. This is mostly due to DIY distributors. While it is great that aspiring artists can get their music out there cheaply and easily, this has also led to rampant fraud and copyright infringement that puts excessive burdens on rights holders to police their own catalogs online. What happens when we inevitably get to a point where 1 million songs are uploaded every day? We can’t keep going as we are now, and we are in need of serious reform.
While DIY distributors have announced initiatives like Music Fights Fraud and have hosted panels at industry conferences to explain the new methods they are using to stop bad actors, some people say these companies have an incentive for at least some of it to slip by their watch, given their business models rely on receiving fees in exchange for uploading as many songs as possible. Self-policing is not enough, considering this problem only seems to get worse.
The introduction of generative AI has made this matter even more pressing. While it’s impossible to know how much of the music being uploaded today is AI-generated, and to date the streaming services have no regulations against this, it is certainly contributing to the rising number of songs released to streaming services per day. AI songs are believed to be exploited by bad actors to commit streaming fraud, as we saw in the September lawsuit which alleged a musician named Michael “Mike” Smith stole $10 million in streaming royalties by uploading AI-generated songs using a distributor and then used bots to stream them. Bad actors upload AI songs en masse to spread out artificial streams and make their schemes tougher to detect.
It’s hard to argue that it makes a user’s streaming experience better when a platform has a vast number of AI songs and tracks that not a single person has streamed, and it’s clear that these songs, largely stemming from DIY distributors, are diluting the royalty pool at the expense of what some stakeholders have called “professional artists.” The negligibly low payments earned by hobbyists who have accrued hundreds or just a few thousand streams are sometimes lower than the fees one would incur from transferring the royalties into their bank account.
These distributors, the argument goes, should be penalized for the bad actors they let through. This has been proposed in many forms so far, including a financial penalty instituted by streaming services, requirements for significant “know your customer” checks to slow down uploads and verify users’ identities, a minimum stream count threshold before artists can be eligible for royalty collection, a limit to the number of songs a user can upload at a time, an additional fee for storing massive uploads to streaming services, and more.
It’s not a viable business if you rely on a massive scale of song uploads but can’t afford the proper staffers and tools to police them.
Welcome to a teeming edition of Executive Turntable, Billboard’s comprehensive(ish) compendium of promotions, hirings, exits and firings — and all things in between — across music. And what a depressing late-week it’s been, with Warner Music making deep cuts across its Atlantic Music Group that sources say will affect between 150-175 people. If you need a palette cleanser, read on for mostly good news but also check out Billboard’s weekly interview series spotlighting a single executive, our helpful calendar of notable events across the biz, and a regularly updated gallery honoring many of the industry figures we’ve lost throughout the year.
Believe appointed industry veteran Henri Jamet to lead its France operations as managing director, reinforcing its leadership team in its all-important home market. With over 20 years of experience, including the last decade at Believe, Henri has played a key role in the company’s artistic wins. He replaces Romain Vivien, who is now president of Europe and global head of music, and will report directly to him. This move aligns with Believe’s focus on A&R and artist development to boost market share across the 50 countries it now operates in. Henri’s career began at Universal Music and NRJ, followed by Wagram, where he became a marketing manager. In 2013, he joined Believe, leading labels such as AllPoints, naïve, and launching Animal63. Under his leadership, AllPoints became a leader in French rap — its artists dominated last year with 47 of the top 200 albums — while naïve emerged as a major pop label. “Henri is as close as possible to the ground, he is respected in the industry, he has a creative vision and knows the company culture,” said Believe founder and CEO Denis Ladegaillerie. “He is the ideal candidate to succeed Romain, one of the Group’s best ambassadors and a great example of career development with us.”
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Maximilian Paproth is coming back to Budde Music, where he worked for a decade earlier in his career, as global president A&R. In that role, Paproth will manage the company’s German operations, as well as its international A&R, starting in January 2025. He will report directly to company owner and CEO Benjamin Budde, who has been building the family-owned publishing company into an increasingly global operation that is active in the agency and concert promotion businesses, as well as its publishing business. Paproth worked at Budde in various roles from 2003 to 2023, then worked for Sony Music Publishing and then Universal Music, where he is currently vp of A&R for central Europe & international marketing Germany. “Max is now supporting our efforts to be the best partners for authors and artists at the perfect time,” Benjamin Budde said in a statement. Budde Music includes the Budde Talent Agency and the management company BuddeMgmt, as well as publishing and some recording operations. –Robert Levine
Downtown Music promoted Gareth Mellor to senior vp of global marketing & communications. Based in the UK, Mellor will lead M&C efforts across Downtown’s four divisions: publishing, distribution, artist & label services and royalties & financial services, which serve over 5,000 clients and 4 million creators in 145 countries. A Downtowner since mid-2021, Mellor was previously vp of global marketing and communications and earlier served as global head of B2B marketing for its distribution tech company FUGA. He has also held senior roles at TuneCore, AWAL and Kobalt. He reports to CEO Pieter van Rijn and chief commercial officer David Driessen, who commended Mellor’s global marketing expertise and contributions to FUGA, expressing confidence in his ability to strengthen Downtown’s brand globally. “With a strong understanding of global marketing, he has continued to deliver exceptional results-driven work at Downtown and I look forward to working alongside him in his new role as he continues to elevate and position Downtown’s brand in the global marketplace,” said the recently promoted Driessen.
Back to Believe, which is also reinforcing its commitment to Mexican music with two leadership appointments. Marco Cataño — who has a 25-year career and has worked at Sony Music and Warner Music — is named head of artist services LATAM, overseeing the Paris-based company’s premium offerings. As head of label & artist solutions México, José Pablo Molina’s division will offer solutions to independent artists and labels through the marketing and content distribution platform. Molina has 10 years of experience, previously working at ROC Nation and OCESA. “Both Marco and José Pablo have an outstanding track record in the music industry,” said Alejandra Olea, Believe America’s managing director. “Their experience allows them to identify areas of opportunity in the market to strengthen and develop Spanish-speaking talent. Their ability to attract and grow artists in a lasting way aligns with Believe’s priorities for Mexico and Latin America.” –Jessica Roiz
Merlin, the digital licensing partner for the indie music sector, welcomed back Kaoruko Hill as the music rights organization’s general manager of Asia-Pacific. Kaoruko’s career spans over a decade, including her most recent role at ByteDance, where she managed global music rights. From 2016 to 2020, she was instrumental in Merlin’s successful entry into the Japanese market, increasing membership and building strong partnerships as head of member relations and operations. She previously worked at Japan’s music copyright collective NexTone Inc., focusing on new media licensing and global partnerships. Merlin’s CEO, Jeremy Sirota, praised Kaoruko’s strategic vision and said her “deep commitment to the music industry make her the ideal leader to drive our efforts in the Asia-Pacific market forward.”
Hipgnosis Song Management named Sara Lord as its new chief creative officer, tasked with managing synch, audience development and leading Hipgnosis’ overall strategy and creative industry collaborations for its portfolio of some 40,000 iconic songs. A veteran of Concord Music, where Lord built an international team and launched the Concord art prize, Lord joined Hipgnosis in 2023 as executive vp of content. Lord will work alongside Katovsky under the new Blackstone ownership. “Sara has an outstanding track record and incredible knowledge of the creative industries,” Hipgnosis CEO Ben Katovsky said in a statement. “Hipgnosis owns many of the world’s most iconic songs and, as we seek to bring them to even wider audiences, building partnerships across these creative industries is a key part of our strategy. Sara is uniquely qualified to build these partnerships, while working closely with our songwriters and artists.” –Elizabeth Dilts Marshall
Sony Music Publishing promoted Antoine Dathanat to managing director of France, starting Oct. 1. He will succeed the SMP’s longtime French MD Nicolas Galibert, who is retiring at the end of the month. As MD of SMP France, Dathanat will be responsible for overseeing creative and business operations across France and supporting SMP songwriters around the globe. He will continue to be based out of Paris and will report directly to Sony Music Publishing president of international Guy Henderson. –Kristin Robinson
PUB FARE: Third Side Music has expanded into the UK and Europe by appointing Stephen Christian as executive vp of creative/A&R: International. Based in London, Christian will report to TSM’s COO, Jeff Waye, and work with LA-based Creative/A&R heads Brontë Jane and Alex Kelman to sign new talent and foster global opportunities for artists like SOFI TUKKER and Sky Ferreira. Christian is the former creative director and head of A&R at Warp Records, where he was instrumental in signing and developing acts like Danny Brown, Mount Kimbie and Kelela … peermusic appointed Samantha Schilling Robinson as vice president of peermusic Neighboring Rights. Schilling Robinson was previously vp of neighbouring rights at Songtradr, Inc. Schilling Robinson will be based in peermusic’s offices in Los Angeles.
Music funding platform beatBread appointed Andrew Maddox as head of finance to support its growth. Maddox previously held finance leadership roles at TikTok, including head of finance and payment services for US Data Security, and he’s the former chief of staff to TikTok’s COO. He also led finance for content, marketing, product, and operations. Prior to TikTok, Maddox worked at Amazon Prime Video, contributing to its expansion into live sports and international markets. beatBread CEO Peter Sinclair praised Maddox’s finance and strategic marketing skills, highlighting their importance as the company uses data science and automation to empower artists, labels, and publishers with flexible funding options. Maddox expressed excitement about joining beatBread, emphasizing “beatBread is at the forefront of enabling artists to pursue their passions without sacrificing control over their careers. The flexibility and choice the company is bringing to music funding is a true game-changer for independent artists and labels. I couldn’t be more excited to join the beatBread team.”
Music licensing platform Soundstripe named Angela Abbott as global head of music partnerships, overseeing strategic relationships for content creators, enterprises, and rights holders. With over a decade of experience in business development and strategic partnerships, Abbott brings expertise from her roles at TIDAL and Pandora, where she secured over $200 million in licensing deals with the big three major labels, among others. Abbott also stays involved with the Recording Academy and Women in Music, where she serves as global co-chair of partnerships & development. “We founded Soundstripe to address a critical gap in the music licensing space for content creators, but our vision extends far beyond that,” said Travis Terrell, Soundstripe’s co-founder and CEO. “With Angela’s proven track record and expertise in negotiating complex licensing deals with the world’s leading music companies, we are excited to accelerate our trajectory and provide top-tier music solutions for both creators and global brands.”
Andrew Leib, after 11 years at Red Light Management, launched Deep Feel Talent Co., a boutique artist management company. The firm’s inaugural roster includes Victoria Canal, Maris Jones, Nu Deco Ensemble, Andy Arthur Smith and Dana Nielsen. Deep Feel said it will emphasize creating long-term relationships with artists and aims to create a supportive community for musicians, content creators and producers. Leib began his career in artist relations at festivals like Lollapalooza and Riot Fest, co-created the immersive concert experience Brassroots District, and co-founded The UnCancelled Music Festival, raising over $100K for artists and venues during the pandemic. He also booked talent for the Miles Davis Estate showcase at SXSW. Leib says Deep Feel reflects his values of “building strong, authentic relationships with my clients and community, and creating space for creative voices to grow.”
Breakaway Music Festival, the annual multi-city event featuring a healthy dose of dance music, hired former Sony vp of corporate development Adam Wright as CFO and managing partner. In his new role, Wright will lead strategic initiatives, corporate development, brand growth and financial operations for Breakaway. The festival also elevated Jarrod Fucci from GM to festival president. This year’s BMF tour has three more dates left: Sept. 27-28 in Charlotte, Oct. 11-12 in Nashville and Oct. 25-26 in San Francisco.
Nettwerk made two significant hires to bolster its UK label team. Katie Graham has been appointed head of catalogue marketing and developments globally, moving from Warner Music Group, where she directed marketing strategies for renowned artists like Phil Collins, Enya, Ed Sheeran and Dua Lipa. She aims to enhance Nettwerk’s extensive catalogue with innovative strategies for both established and emerging talents. Additionally, Ruth Wyatt joins as director of sync for UK and Europe, bringing her experience from Warner Music UK, where she successfully placed artists in various sync opportunities. Her notable achievements include Sam Ryder’s “Christmas To Me.” Both hires were welcomed by Nettwerk co-founder Mark Jowett, who commended their expertise in catalogue development and sync, highlighting their commitment to supporting artists.
Spotify‘s head of podcast business, Sahar Elhabashi, is leaving the company at the end of 2024. Roman Wasenmüller, who currently oversees international podcast operations, will lead the division during the search for Elhabashi’s successor. Elhabashi’s six-year tenure included a strategic shift from exclusive creator deals to broader distribution, enhancing audience reach and ad sales. She joined Spotify in December 2018 as vp of content and took over the podcast division after Dawn Ostroff left in January 2023. Prior to Spotify, Elhabashi held c-suite level roles at Conde Nast and Discovery Communications, while earlier in her career she spent 15 years in senior leadership at MTV Networks.
The Circuit Group, a management collective empowering artists to have greater creative control over their IP, announced its expansion into the UK with the launch of Circuit Management, a joint venture with CTRLFRK. The initiative will be led by TCG chief strategy officer James Sutcliffe, who has been appointed CEO and president of The Circuit Group UK. Sutcliffe, an industry veteran with leadership experience at Ministry of Sound, LIVENow, PIXELYNX, and Monster Energy, will work under global CEO Dean Wilson. “Circuit Management is the culmination of our vision to create an environment where artists can truly succeed,” said Michael Boyce, founder of CTRLFRK and co-president of Circuit Management. “Partnering with Circuit enables us to offer a comprehensive approach to management, focusing on both artistic integrity and commercial success. We’re ready to make a lasting impact on the UK music landscape.”
ATC Group has launched Circa, a music promotions company led by Matt Black, former managing director of Your Army’s U.S. office. Circa, with offices in Los Angeles, New York, and London, will take over operations from Your Army America, offering integrated marketing and promotional campaigns globally. The London office will be led by Charlie Reid, who joins as general manager, following experience leading UK radio campaigns for artists like London Grammar, Jon Batiste, Marlon Hoffstadt and Jade Bird. In the U.S., Black’s team has managed campaigns for labels such as Atlantic, Warner, and RCA, achieving top chart placements for artists like RÜFÜS DU SOL and The Hives. Circa will continue campaigns for high-profile artists including Justice, Disclosure, SOFI TUKKER, and deadmau5. It operates within ATC Group’s Services division, alongside Familiar Music Group, companyX, Simpatico, [namethemachine] and Sandbag. “As a key component of ATC’s full service offering across our network of Group businesses, Circa will enable us to deliver an ever more integrated strategy to assist artists in achieving their creative and commercial goals,” said Adam Driscoll, CEO of ATC Group.
BOARD SHORTS: Marit Berning, Paul Smernicki, Shaurav D’Silva, and Tania Lee have been newly elected to the Music Managers Forum board, with Sandy Dworniak re-elected. Paul Craig and Kwame Kwaten have stepped down as chair and vice-chair, with successors to be announced in early October. The MMF aims to enhance its partnership with Music Minds Matter to provide more mental health support for managers. Additionally, the MMF will host a retreat for advanced managers in January 2025.
RoEx, a startup in intelligent audio production, partnered with UnitedMasters to offer AI-powered mastering services via UnitedMasters’ web platform and iOS app. To support its growth, RoEx appointed Tom Nield as head of partnerships, leveraging his 15-plus years of experience in music and technology, including roles at [PIAS] and startups like LANDR. In his new role, Nield will focus on expanding RoEx’s partnerships with music distribution companies and creator platforms. The partnership aims to enhance audio quality services and provide educational content through UnitedMasters’ Blueprint tool. Additionally, UnitedMasters and RoEx are launching an in-app challenge, awarding 50 artists with free mastering credits worth up to $150 each.
ASM Global elevated Gemma Vaughan to acting general manager of AO Arena in Manchester, effective immediately. Gemma, who joined ASM Global in 2023 as sales and marketing director, brings 14 years of experience in the live entertainment industry, having worked with Live Nation Entertainment, Cuffe & Taylor, and Escape to Freight Island. Throughout her career, she has collaborated with artists like Faithless, Mariah Carey, and Britney Spears, gaining a deep understanding of the industry. Vaughan’s predecessor as GM, Jen Mitchell, has left the company.
ICYMI:
Kevin Liles
The painful cuts this week at Atlantic Music Group have impacted between 150 and 175 people, according to sources, including key execs at Elektra (Chris Brown, Katie Robinson, Adam Abramson) and Atlantic (Michael Kyser, Paul Sinclair, Grace James). Follow developments here … Earlier this week, 300 Entertainment CEO Kevin Liles telegraphed his exit … Warner Music Japan chief Kaz Kobayashi announced his departure … TelevisaUnivision named a new CEO … and Sony Music Nashville chairman and CEO Randy Goodman is retiring.
Last Week’s Turntable: The MLC-Suite Gets an Upgrade
Believe turned in strong double-digit revenue growth in the first half of 2024, helped by its 2023 acquisition of Sentric Music Group but hobbled slightly by weak ad-supported streaming revenues. Revenue grew 14.1% to 474.1 million euros ($512.7) and adjusted earnings before interest, taxes, deprecation and amortization (EBITDA) improved 29.3% to 31.3 million euros ($33.8 million), the company announced Thursday (Aug. 1).
“Despite persistent market headwinds in some of our key territories, Believe continued to generate solid profitable growth during the semester,” CEO Denis Ladegaillerie said in a statement. “We pursued our strategic roadmap to build the best artist development company in the music industry, while finalizing the restructuring of our capital structure providing us with greater financial flexibility and partners who can accelerate our profitable growth story.”
The Paris-based company lowered its expectations for full-year revenue, however. Because Believe will lose the year-over-year growth benefits of streaming price increases and is “cautious” about ad-supported streaming, the company lowered its guidance for organic revenue growth to 12% from 18%. That said, it increased its guidance for full-year adjusted EBITDA margin to greater than 6.5% from the previous 6.5% figure.
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Thursday’s earnings release was Believe’s first since a consortium including Ladegaillerie acquired nearly all of the company’s shares through a tender offer that ended June 21. The consortium, which includes funds managed by TCV and EQT X, now owns 96.02% of share capital and 94.87% of voting rights. Believe continues to have a small number of minority shareholders and its stock still trades on the Euronext Paris exchange, but due to the small float, the company will release only mid-year and full-year earnings results and no longer release quarterly results.
First-half revenue grew 17.9% to 78.4 million euros ($84.8 million) in France, Believe’s home and largest market, where it claimed to have 40% of the top local singles and 30% of the top local albums during the period. Revenue dropped 1.2% to 53.5 million euros ($57.9 million) in Germany, its second-largest market. In Europe excluding France and Germany, revenue jumped 24.7% to 121.9 million euros ($131.8 million).
The Americas grew 21.8% to 73.9 million euros ($79.9 million), helped in the second quarter by the reallocation of most of Sentric Music Group’s revenues to the U.S. Believe acquired Sentric, a Liverpool-based music publishing company, in 2023 from Utopia Music. Asia/Oceana/Africa grew just 3.7% to 116.3 million euros ($125.8 million); while revenue was “slightly up” in India, it fell in some Southeast Asian markets that are heavily based on ad-supported streaming.
Believe’s Premium Solutions division, which includes its publishing, label and artist services businesses, grew revenue 13.5% to 440.9 million euros ($476.8 million) in the first half of the year. Most of that improvement came from organic growth, while Sentric accounted for 2.3 percentage points of growth. Revenue at the Automated Solutions segment, which includes digital distributor TuneCore, increased 23.4% to 33.2 million euros ($35.9 million).
It’s time for a July 4th weekend edition of the Executive Turntable, Billboard’s comprehensive(ish) compendium of promotions, hirings, exits and firings — and all things in between — across music. Check out this year’s Pride List of top LGBTQ+ executives in the industry. We also have a weekly interview series spotlighting a single executive and a regularly updated gallery honoring many of the industry figures we’ve lost throughout the year.
Thomas Coesfeld celebrated his one-year anniversary as CEO of BMG by joining the executive board of Bertelsmann, parent company of the Berlin-based music giant. The 34-year-old executive is point-person for Bertelsmann’s music business as a member of the board, which also includes chief executive Thomas Rabe and Thomas’ big brother Carsten Coesfeld, CEO of its venture capital arm, as well as company CFO Rolf Hellermann and chief human resources officer Immanuel Hermreck. Coesfeld took the reigns of BMG from longtime CEO Hartwig Masuch on July 1 of last year, and in short order instituted a new organizational structure by globalizing its catalog, sales and marketing teams and a “recalibration” of its presence in continental Europe, among other changes. Prior to rising to CEO, Coesfeld had been named deputy CFO at BMG in October 2021 before taking over as full-on CFO the following spring. During that time he oversaw BMG’s balance sheet and helped the company land 70 deals, including acquiring the catalogs of Mötley Crüe and Tina Turner, as well as those of Paul Simon, The Pointer Sisters, Peter Frampton and others.
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He previously served as chief strategy officer on the executive committee of the Bertelsmann Printing Group, but began his career in 2014 as a consultant at McKinsey. Coesfeld is also a member of Bertelsmann’s Group Management Committee (GMC), which advises the executive board.
“[Coesfeld] knows Bertelsmann well from various positions,” Rabe raved in the announcement. “As CEO of BMG, he has made important decisions for the future of the business, for example by bringing digital distribution in-house and using artificial intelligence in various areas of the music business. Thomas will enrich the work of the Management Board as well. I look forward to working even more closely with him.”
Meanwhile…
Hannah Neaves
Laura Lewis
Universal Music UK promoted Hannah Neaves to sole president of its catalog division, Universal Music Recordings. Her co-president over the last two years, Azi Eftekhari, has left the company, Billboard can confirm. Neaves and Eftekhari joined UMR in early 2022, roughly a year after the pair launched a London-based creative agency called Remedy Inc. Prior to joining forces, Neaves was creative director at TaP Music and Eftekhari had been head of label relations (EMEA) at YouTube. In the last two years, UMR’s wins include “Now and Then” — the “last Beatles song” — and other releases featuring Bob Marley, Amy Winehouse, the Spice Girls and more. “Hannah is, first and foremost, an artist person with an innate understanding of where creativity and discovery meet, something she has brought in abundance since re-joining our team,” said Universal Music UK chief David Joseph, referencing Neaves’ tenure at UMG’s Polydor earlier in her career. “A truly exceptional and inspiring executive, Hannah has already had huge success, most recently creatively leading the global and record-breaking Now And Then campaign for The Beatles, and there’s so much more to come.”
Former BMI executive Jody Williams was elected to a one-year term as the new chair of the Country Music Hall of Fame and Museum‘s board of officers and trustees. The publishing veteran, who founded Jody Williams Songs in 2020 following a 14-year run at BMI, has served on the museum’s board for 17 years. He replaces outgoing chair Mary Ann McCready, who remains as a trustee. CMHFM CEO Kyle Young remarked that Williams is “woven into the fabric of country music’s creative community in a true and meaningful way” and “resolute in furthering country music’s vitality as a cultural artform.” The Nashville institution also elected several new members to the board, including artist manager Clint Higham and WME agent Becky Gardenhire.
Merlin, the digital licensing partner for the independent music sector, welcomed Neil Miller as its new general counsel. Miller arrives from Greenberg Traurig, where he served as partner of the global law firm for three years. Prior to that, Miller was an associate general counsel at Facebook and earlier in his career spent six years as GC at SoundCloud. He is based in the UK. “Merlin is a dynamic organisation operating in a complex and ever changing legal and commercial environment,” said Charlie Sexton, Merlin COO. “Neil’s wealth of experience across music and digital entertainment is exactly what we need to meet these challenges. He is highly respected across the industry and brings a valuable blend of long-term thinking, technical skills, and impressive leadership.”
Believe has new leadership in place for its efforts throughout China, naming Charles Liu as general manager and Rebecca Dong as managing director for the growth-ready region. Based in Beijing and reporting to Sylvain Delange, Believe’s president of Asia-Pacific, Liu will focus on building partnerships and growing Believe’s roster of labels and artists. Dong rolls up to Liu and will manage all operations, along with legal, finance and HR matters. Believe has operated in China since 2016 and has grown to 80-plus “digital and music experts” across offices in five cities, the company said. “Greater China is both an exciting and challenging market where Believe’s unique approach can significantly contribute to accelerate the rise of a strong, diverse and thriving local music ecosystem as we’ve done is so many other markets in Asia Pacific,” said Delange.
NASHVILLE NOTES: Universal Music Group Nashville hired Houston Gaither as director of radio marketing. She was previously Sony Music Nashville’s manager of content, promotion and artist development … Former PLA Media director of publicity and branding Becky Parsons formed Found Sound Media, a PR and management firm focused on developing LGBTQ+ and female artists … Kylie Taylor joined Black River Entertainment as a graphic designer. Reach her at ktaylor@blackriverent.com.
OTM Music, a boutique publishing company with footholds in London, New York and Los Angeles, welcomed Kristin Genovese as the firm’s new U.S. head of sync and Kate Sweetsur as the new head of A&R. The company, which provides creative services for its roster of songwriters and brands, also noted the recent additions of Chi Chi Nwakodo as senior creative and Ethan Mizen as A&R manager.
ICYMI:
Britney Davis
Hipgnosis Song Management founder Merck Mercuriadis will step down as chairman of the investment manager, months after vacating the CEO role … Stephanie Rosa is managing director of Tixr‘s new London office … Former Capitol Music Group executive Britney Davis was named general manager at Quality Control … Warner Records promoted Robert Santini to senior vp of brand partnerships and ad sync … and Mano Sundaresan is the new head of editorial content for Pitchfork.
Last Week’s Turntable: Audacy OG Elevated
The consortium acquiring French music company Believe increased its holdings to 94.99% of share equity at the conclusion of the tender offer, the company announced Monday (June 25). That marks a nearly 10% increase from the 85.04% of shares the consortium held a week earlier.
Led by CEO Denis Ladegaillerie, who founded Believe in 2005 to take advantage of the rapidly evolving digital music business, the consortium purchased 19.6 million shares at 15.00 euros ($16.10) per share during the offer, which ran from June 3 to June 21. Combined with blocks of shares previously acquired from investors, the consortium now holds 95.6 million of the 100.7 million shares outstanding. The free float — shares owned by minority investors — is 5.01%. The consortium, which also includes major shareholders EQT and TCV, commands 106.5 million of 113 million — 94.29% — of Believe’s voting rights.
While the consortium does not plan on executing a mandatory squeeze-out for shares not tendered by minority shareholders, because the free float — shares not held by insiders that can be publicly traded — has fallen under 15%, Believe will be de-listed from some stock indexes.
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Also on Monday, Believe announced the appointment of Andrew Fisher, a new director representing EQT, after venture capital firm Ventech sold its shares to the consortium and lost a director. Fisher’s ratification will go to a vote in the 2024 annual general meeting. The board additionally appointed two observers: Michael Kalfayan, general partner at TCV, and Nicolas Brugère, partner at EQT.
The consortium announced a takeover bid for Believe in February at 15.00 euros ($16.10), which represented a 21% premium over the prior closing price. According to an offer document, the consortium wants to take over the company “so that it can better execute on its value-creation plan and accelerate the scale-up of an independent player supporting artists and label clients” and “further grow and consolidate its position as a leader in the French and European markets.”
After the Believe board of directors backed the takeover bid on April 19, the consortium purchased a large block of shares from venture capital firms XAnge and Ventech. Before the acquisitions, TCV was the biggest shareholder with 41.1% of share capital, while Ladegaillerie owned 12.5%, private equity firm Ventech owned 12.0%, XAnge owned 6.3% and roughly 3.8% of shares were held by a strategic holding fund and in treasury shares. Free float was 24.4%.
Warner Music Group briefly looked at acquiring Believe in March and estimated a bid of “at least” 17 euros ($18.24) per share, which would have valued the company at 1.65 billion euros ($1.8 billion). But the pursuit was short-lived; Warner dropped out of the running in April.
The consortium acquiring French music company Believe has acquired 85.04% of share capital and 73.27% of voting rights in a tender offer that ends Friday (June 21). Believe owns digital distributor TuneCore, publishing administration service Sentric and such record labels as Naive, Nuclear Blast and Groove Attack. The bidding company is a consortium led by […]
After taking itself out of the bidding for French music group and distributor Believe in April, Warner Music Group (WMG) is shopping for an alternative distribution company that could help it gain market share in the competitive space that serves independent creators and labels — and it’s hired a top music investment banker from Goldman Sachs to lead the effort.
Since taking over as WMG’s CEO last year, Robert Kyncl has said the company is prepared to build in-house the technology and services he thinks it needs. Now he’s ready to buy them as well.
“As part of our mission to be a destination for artists and songwriters at every stage of development, we are expanding our lower-touch services that many indie artists, labels and songwriters rely on,” Kyncl said on a conference call discussing WMG’s quarterly earnings on May 9. “We have a clear plan to develop this area of our ecosystem, and we’re building solutions in-house while staying vigilant about [merger and acquisition] opportunities, which could accelerate our capabilities.”
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On Thursday (June 6), WMG announced the hire of Goldman Sachs’ global head of music & live entertainment investment banking Michael Ryan-Southern to a newly created executive vp role. Reporting to Kyncl, Ryan-Southern will be responsible for acquiring companies and catalogs that can boost WMG’s growth and revenues. When he officially joins in August, the first item on his shopping list will be an independent distribution company, smaller in size and cost than Believe, that an inside source described as a “bolt-on” acquisition to help grow WMG’s market share in the independent distribution and services business without affecting its overall profit margins.
Among the companies that WMG is eyeing, according to sources, are leading independent distributors DistroKid and CD Baby. WMG is “active in the market” but is still in the exploratory stage, those sources say.
A WMG spokesperson declined to comment for this story. A representative for Downtown, which owns CD Baby, also declined to comment, except to say that Downtown “is singularly focused on continuing to grow our business and support our clients’ success.” Representatives for DistroKid did not immediately respond to a request for comment.
WMG approached Paris-based Believe in February with a nonbinding offer to acquire it at a price of “at least” 17 euros ($18.60) per share. It ultimately decided not to submit a formal offer in April. Asked why the company did not pursue an offer for Believe, Kyncl said on the May 9 call that it backed away “for a variety of reasons,” including the brief amount of time it was given to conduct due diligence.
Ryan-Southern is a former EMI publishing executive who, along with Goldman’s global head of entertainment investment banking, Aaron Siegel, was on some of music’s biggest deals. These included New Mountain Capital’s acquisition of BMI and the spinoff of Sphere Entertainment, which owns the Sphere in Las Vegas, MSG Networks and Tao Group Hospitality, from Madison Square Garden Entertainment, which owns and operates the Garden and Radio City Music Hall among other venues in New York and Chicago. Ryan-Southern and Siegal also advised Believe founder/CEO Denis Ladegaillerie and his consortium with investment funds EQT and TCV on their effort to take Believe private.
Buying or building something that can leverage WMG’s independent distribution and services division, ADA, would help the music company recruit more early-stage artists, something its executives consider core to its success.
WMG launched ADA in 1993, roughly 20 years before Sony bought a stake in The Orchard and Universal Music Group launched Caroline International as an indie-label distributor that was later rebranded as Virgin Music Group. And though WMG was the first major to carve out a presence serving the independent artist market — renting its major-label services to indies, as industry sources have described it — competition in the market has heated up.
UMG and Sony have invested tens of millions in recent years buying rival startups in the space. A minority shareholder since 2006, UMG acquired Ingrooves in 2019. In 2022, UMG acquired Mtheory Artist Partnerships as well as a 49% stake in [PIAS]. Sony closed out its full acquisition of The Orchard in 2015 and then bought AWAL in 2022.
The Orchard now holds a commanding lead in the U.S. market with a 7.27% current market share, according to Luminate. UMG’s Virgin Music Group, which comprises Ingrooves, Mtheory and Virgin Music Label & Artist Services, holds around 3.42% of the current market. ADA has a current market share of 1.68%. Its biggest client, BMG, which contributes 0.94% to ADA’s current share, is winding down its distribution agreement.
WMG now needs to “turbocharge” this part of its business to capitalize on the fast-growing independent sector, says Fred Davis, partner at The Raine Group.
“The world now is divided into three categories of artists: those signed to major labels, those signed to indie labels and indie artists without a label,” Davis says. “Distribution platforms are proving to be a viable source of A&R for the major labels.”
Focusing WMG’s A&R more on capturing opportunities, particularly in genres that are just beginning to experience growth, was one of Kyncl’s top 2024 agenda items highlighted in a New Year’s Day note he sent to all staff. In April, WMG’s publishing division, Warner Chappell Music (WCM), partnered with ReverbNation, BandLab Technologies’ premium artist services platform, to identify and sign emerging songwriters. WCM administers music rights for any users who enroll in a new program through ReverbNation Publishing Administration, and signed songwriters gain access to WCM’s services.
WMG has acquired majority stakes or launched joint ventures with a few distribution-oriented companies in recent years — some before Kyncl joined WMG — primarily in emerging markets in the Middle East and Asia. Among them: a majority stake in Africori, the leading digital music distribution, music rights management and artist development company in Africa, in January 2022. That March, it also acquired Qanawat Music, a leading distributor in the Middle East and North Africa.
Last year, WMG did two deals in India: It acquired a majority stake in Indian digital media company Divo and formed a joint venture with Sky Digital, which aggregates releases from Punjabi and Hindi labels.
While WMG has made acquisitions in other geographical regions, rival majors have bought companies serving the U.S. market for independents. “It would make sense for [WMG] to augment its distribution with an acquisition,” says a source familiar with the company’s strategy.
Believe reported strong first-quarter revenues of €230.3 million ($248.5 million) on Wednesday (April 24) despite foreign exchange fluctuations that led to slower organic growth compared to the final quarter of last year. The company reported an adjusted organic growth rate of 16.1%, which was in line with guidance, although down from 21.8% adjusted growth in […]
The board of directors of French music company Believe is supporting an offer to take it private at 15 euros ($15.98) per share, with the board’s three independent members unanimously voting in favor of an opinion that the bid is in the interest of minority shareholders, the company announced Friday (April 19).
The bid to take Believe private came from a consortium of funds managed by TCV and EQT X, along with Believe chairman/CEO Denis Ladegaillerie. The consortium’s shares, along with shares acquired from TCV Luxco BD S.à r.l., Ventech and XAnge, gave it 79.1% of Believe’s share capital. That left the board’s three independent directors — the others are connected to the consortium — to make a recommendation for the minority shareholders.
The independent directors believe the consortium’s bid is “in line with the strategy pursued by management, while benefiting from the support of major shareholders aligned with its development plan and with the ability to support the Company in the next phase of growth and market consolidation,” the company stated Friday. It also noted that minority shareholders are getting the same price offered to shareholders of the majority blocks.
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An independent expert, Ledouble, concluded the consortium’s bid is fair from a financial standpoint and lacks any “ancillary items” that could be damaging to shareholders. Citigroup, hired by the company as a financial advisor, also told the board the share price is financially fair to shareholders.
The consortium announced Friday it plans to file its offer “in the coming days.” Its offer of 15 euros per share is 21% above the share price the day before the consortium announced its takeover bid and 38.2% above the average of the last 20 trading days, according to the announcement. Still, the consortium’s bid is below Believe’s IPO price of 19.50 euros ($20.78).
No competing bids arrived for Believe, which includes digital distributor TuneCore, record labels such as Groove Attack and Nuclear Blast, and a global infrastructure that provides artists and labels with tools and services. A month after the consortium’s initial offer was made public, Warner Music Group announced its interest in Believe at “at least” 17 euros per share. However, after being given access to a “data room,” according to the release, WMG opted not to make a competing offer.
After the consortium takes Believe private, the company “will have all the necessary resources to continue the remarkable growth dynamic that the company has experienced in recent years,” Ladegaillerie said in a statement. “With the active and ongoing support of TCV, which has accompanied Believe since 2014, and the expertise of EQT, I am convinced that we will continue to make Believe the global reference for independent music, while seizing all the growth opportunities offered by the digital transformation of the music market, to put them at the service of creation and creators.”
Warner Music Group announced over the weekend that it has called off plans to submit a binding offer to acquire French music company Believe. The label did not elaborate on its decision, only that it was made “after careful consideration.” Believe followed up in a statement, saying it will “review the situation with all interested […]