Business News
In a miserable week for stock markets worldwide, Spotify continued to fall from its all-time high, K-pop stocks sank and one of the smallest companies on the Billboard Global Music Index posted a double-digit gain.
LiveOne was the week’s biggest gainer as the music streaming company’s shares rose 19.6% to $1.22 after it announced on Wednesday (Dec. 18) that its partnership with Tesla surpassed 350,000 subscribers. On Friday (Dec. 20), the company also said it has regained compliance with the Nasdaq exchange’s minimum bid price requirement.
Only two other music stocks posted gains this week. Sphere Entertainment Co. rose 2.5% to $38.74, bringing its year-to-date gain to 14.0%. Sphere Entertainment shares have lost 12.1% since the company announced its fiscal first-quarter results on Nov. 12. Reservoir Media also improved 2.3% on the week after jumping 4.8% to $9.26 on Friday.
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The Billboard Global Music Index (BGMI) fell 3.3% to 2,168.69, lowering its year-to-date gain to 41.4%. Just three of the index’s 20 stocks finished the week in positive territory. After increasing each week from late October to early December, the BGMI lost 4.9% over two consecutive weekly losses. The latest 3.3% weekly decline is only the fourth time in 2024 that the index has dropped more than 3% in a calendar week.
Stocks’ bad week extended beyond music companies. In the United States, the Nasdaq composite dropped 1.8% to 19,572.60 and the S&P 500 declined 2.0% to 5,930.85. In the United Kingdom, the FTSE 100 was down 2.6% to 8,084.61. South Korea’s KOSPI composite index fell 3.6% to 2,404.15. China’s Shanghai Composite Index dipped 0.7% to 3,368.07.
Among other music companies, Live Nation had a modest decline of just 2%, dropping to $133.17 despite more analysts increasing their price targets on the stock this week. Morgan Stanley raised its price target to $150 from $140 and Benchmark increased it to $160 from $144 and maintained its “buy” rating.
Spotify, the index’s most valuable company, fell for the second consecutive week. After closing above $500 on December 4, Spotify shares dropped 8.3% and closed at $460.88 on Friday, down 4.8% for the week. Overall, streaming had more losers than winners this week. Cloud Music fell 7.9% to 116.60 HKD ($14.99), marking the second-largest decline of the week. SPDB International began coverage of Cloud Music this week at a 145 HKD ($18.64) price target and “buy” rating. Elsewhere, Anghami fell 3.7% to $0.79.
Four K-pop stocks declined an average of 5.1% this week, reflecting the ongoing political uncertainty in the South Korean market. SM Entertainment was down 6.3%, JYP Entertainment fell 5.8%, HYBE dropped 4.3% and YG Entertainment sank 3.9%. Year-to-date, the four South Korean companies are down an average of 18.3%, a far deeper deficit than Universal Music Group (down 5.6% YTD) or Warner Music Group (down 12.9% YTD).
iHeartMedia, the week’s biggest loser, dropped 17.5% to $1.89. The radio company’s stock was trading at $1.00 on July 21 and rose to $2.61 on Dec. 6. In the last two weeks, however, its shares have slipped 27.6%.
Time for a pre-holiday madness edition of Executive Turntable, Billboard’s compendium of promotions, hirings, exits and firings — and all things in between — across music.
Read on for better-late-than-never personnel news and don’t forget to check out WMG chief Robert Kyncl’s year-end note to staff and dig into all of our year-end business content, plus peruse our weekly interview series spotlighting a single c-suiter and our daily calendar of notable goings-on.
Luke Armitage was appointed senior vp of global marketing at Warner Records, where he’ll oversee international marketing for the label’s U.S. roster. Based in Los Angeles, he reports to Warner Music’s chief marketing officer, Jessica Keeley-Carter, and collaborates with Warner Records’ co-chairmen Tom Corson and Aaron Bay-Schuck. Armitage joins Warner after six years at Capitol Music Group’s Astralwerks Records, where he led global marketing for artists like Marshmello and Katy Perry. He also contributed to projects by The Chemical Brothers, FISHER and Meduza, among others. Prior to Astralwerks, Armitage held court at Universal Music’s international division in London, Metropolis Studios, and Universal Music Publishing.
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Avex USA promoted Ryusuke (Ryan) Kamada to CFO, recognizing his pivotal role in the company’s growth since its 2020 launch. Ryan joined Avex in 2018 and transitioned from Avex’s Japanese headquarters to Avex USA, where he leveraged his expertise in global finance and law to expand operations in North America. He developed Avex USA’s corporate strategy, co-manages the Future of Music Fund and spearheaded partnerships with S10 and Roc Nation, among others. In Japan, Kamada was chief producer of Avex’s investment group, leading M&A and corporate venture capital investments. Prior to Avex, he worked in JP Morgan’s Tokyo office. The University of Pennsylvania grad began his career in Toyota’s legal division, handling major U.S. litigation and congressional hearings. Avex USA CEO Naoki Osada commended Ryan’s strategic vision, financial acumen, and “sincere respect and passion for songwriters are integral to the company culture.” Since its launch in Los Angeles in 2020, the U.S. branch of the Tokyo-based music and entertainment company has established a publishing division, a music start-up investment program and a record label.
Sphere Entertainment appointed Marcus Ellington as executive vp of ad sales and sponsorships, effective immediately. Ellington will develop and lead an ad sales and sponsorships unit to maximize revenue for Sphere’s assets, including the Vegas venue’s unmistakable exterior, known as the Exosphere. He’ll also drive brand-centric opportunities and broader marketing partnerships. Ellington is based in New York and reports to Jennifer Koester, Sphere’s president and COO. Ellington joins Sphere from Google, where he held various sales and partnership roles, most recently as director of Americas partnerships solutions. His experience includes overseeing relationships and ad revenue for Google’s largest media and entertainment partners. Prior to Google, he worked at Interactive One and CBS, and over the years has received industry awards and served on several boards. Koester praised Ellington’s innovative leadership and track record with premier brands “across a range of industries, which will be an asset as we continue evolving how brands can partner with Sphere to create impactful experiences unlike anywhere else.”
Melanie Santa Rosa
Third Side Music named Melanie Santa Rosa as its new head of copyright, based in New York. Reporting to co-founder/CEO Patrick Curley, Santa Rosa will lead the copyright department, focusing on transparency, efficiency and maximizing value for the independent publisher’s extensive roster, which includes Kurt Vile, SOFI TUKKER, Future Islands, Sky Ferreira and more. Santa Rosa brings a wealth of experience to the role, having previously served as executive vp of global digital copyright administration at Word Collections, managing worldwide copyright and royalty administration. She also spent 12 years at Spirit Music Group, rising to senior vp of global administration, and worked at BMI for a decade, collaborating with songwriters, publishers, and performing rights organizations. An advocate for creators, Santa Rosa serves on the AIMP New York Chapter board and is active in several industry organizations. Patrick Curley praised Santa Rosa’s expertise and reputation: “She is precisely the person we needed to lead the operation and development of Third Side Music’s worldwide collections platform in the years to come,” he said.
Infinite Reality, a leader in digital media and e-commerce leveraging spatial computing and AI, appointed Drew Wilson as chief operating officer. Wilson, who most recently served as both COO and chief financial officer at SoundCloud, will manage business operations, drive revenue, and advance iR’s strategic vision. Under his watch at SoundCloud, the audio platform achieved profitability for the first time in the company’s history, driving significant revenue growth, margin improvements and product innovation. He has also held key roles at First Look Media, AwesomenessTV, RLJ Entertainment and Warner Bros. Discovery, contributing to revenue growth and digital transformation. John Acunto, iR’s co-founder and CEO, praised Wilson’s proven ability to scale digital media businesses and his expertise in technology and fan engagement.
AEG Presents promoted Evan Marks to talent buyer for the Rocky Mountains region. Previously an assistant in the role, Marks will now oversee bookings at prominent venues like Mission Ballroom, Ogden Theatre, Gothic Theatre, Bluebird Theatre and some outdoor spot called Red Rocks. Based in Denver, he’ll report to Don Strasburg, president of Rocky Mountains and Pacific Northwest. A Houston native, Marks has been active in the Colorado music scene for nearly 15 years. After graduating from CU Boulder, he began his career as a talent buyer at Cervantes’ Masterpiece Ballroom in 2017 before joining AEG Presents Rocky Mountains in 2022. Strasburg commended Marks for his passion and dedication to live music, highlighting his deep musical knowledge and strong execution skills. “Evan’s wide berth of musical knowledge and ability to execute will meet and exceed the lofty expectations of our music community.”
Eddie Kloesel has been named partner at WHY&HOW, the management company founded by Bruce Kalmick. Joining at its inception in 2020 as vp of touring and sponsorships, Kloesel was later promoted to executive vp, playing a pivotal role in shaping the company’s strategic goals. He has spearheaded brand partnerships, touring strategies and album releases, contributing to the success of clients like Whiskey Myers and Chase Rice. With a music industry career spanning nearly two decades, Kloesel began in 2005 as a day-to-day tour manager for Brandon Rhyder and joined Triple 8 Management in 2011 before becoming a member of WHY&HOW’s founding team. Kalmick calls Kloesel a a “trusted strategic thinker who approaches our clients’ business like an entrepreneur,” adding, “He’s always thinking outside the box and has brought forward opportunities that are not only lucrative for our clients but are also unique within the industry.”
Supreme Music secured the exclusive services of renowned sound designer Markus Stemler, celebrated for his Academy Award-nominated and BAFTA-winning work on All Quiet on the Western Front. This collaboration strengthens Supreme Music’s sound design and audio post-production for advertising and branded content. Stemler, known for projects like The Matrix Resurrections and Cloud Atlas, brings expertise in dialogue editing, ADR, Foley and re-recording mixing. His recent credits include Tides (2021) and Perfect Days (2023). For Supreme Music, he has contributed to standout campaigns such as Penny’s Wonderful World and the American Red Cross’ Mom, showcasing his exceptional artistry and versatility.
HarbourView Equity Partners partnered with The CultureShaker to lead its brand, marketing and PR efforts. The CultureShaker’s founder, Lucinda Martinez, will now serve as chief marketing officer of the investment firm, joined by Deborah Renteria as vice president of brand and content strategy. Martinez, known for award-winning campaigns like Game of Thrones and Insecure, brings a quarter-century of experience from Netflix, HBO and Comedy Central. Renteria brings complimenting expertise in content development and audience engagement from roles at Lionsgate, Facebook, and HBO. HarbourView CEO Sherrese Clarke Soares praised the team’s cultural and strategic insights, essential for the firm’s rapid growth, adding: “The CultureShaker is our first operating partner under our Create Platform, further cementing our position as a valued partner to artists, content creators, investors as we broaden our footprint and deepen our focus across the entertainment and creative ecosystem to continue to drive ROI.”
Curbside Concerts, a Canadian company that produces curbside concerts, welcomed Tracy Posadowski and Tom Yeates as managing directors of sales and marketing. Posadowski, co-founder of ATTCo Global Services, and Yeates, with extensive revenue management experience, aim to expand the company in Canada, enter the U.S. market, and explore new business avenues. Founded by Matt and Amanda Burgener during the COVID-19 pandemic to support struggling musicians, Curbside Concerts has grown significantly in its first four years, bringing music to people’s yards and curbs.
Isekai Records, a joint venture with Broke Records, launched in August 2024 by Ewan Jenkins, Jack Mangan and RJ Pasin, aims to be artist-friendly. Jenkins and Mangan, co-founders of E2J Artist Management, gained recognition in 2023 by managing Pasin, whose TikTok followers grew from 10,000 to 2.8 million and Spotify listeners to 7.5 million monthly. Isekai Records leverages their expertise to support emerging talent. Their debut release, “Embrace It” by Ndotz, marked their global entry and commitment to artist-centric music production.
ICYMI:
Hugh Forrest
The board of directors of Farm Aid appointed Shorlette Ammons and Jennifer Fahy to lead the non-profit effective Jan. 1 … Hugh Forrest was promoted to president of South by Southwest, where he’ll continue to oversee programming and assume full leadership of an organization. Jann Baskett, the current co-president and chief brand officer, prepares to step down on New Year’s Eve.
Last Week’s Turntable: Red Light Green Lights Former Warner Nashville Prez
Several more players in the independent music community have called on regulators to block the acquisition of Downtown Music Holdings by Universal Music Group (UMG) announced this week, arguing the deal “would seriously distort the global music market” and “reduce competition and the independents’ bargaining power.”
Virgin Music Group, which is owned by UMG, announced Monday (Dec. 16) that it had agreed to buy Downtown Music Holdings for $775 million in a deal that would beef up the music giant’s market share by absorbing Downtown’s stable of indie distributors, publishing and rights administrators including FUGA, CB Baby, AdRev and Songtrust. The deal came just two months after UMG acquired the remaining shares of indie label group [PIAS], including its services division, Integral — an agreement that was similarly criticized by indie trade groups, who have asked regulators to launch an investigation into the pact.
In a joint release Thursday (Dec. 19), several indie music leaders said the deal, if allowed to go through, would result “in fewer options for smaller companies to negotiate fair terms and compete on equal footing, leading to higher costs and less choice.”
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“We are the global independent music community,” said Noemí Planas, CEO of Worldwide Independent Network (WIN), in a statement. “UMG trying to present this as an investment in the independent ecosystem is fooling no one. This is wealth extraction from the independents, another step in UMG’s relentless path to dominance and stifling competition. Independent music is the lifeblood of cultural innovation and market consolidation threatens the diversity that makes music so rich and compelling around the world. We call on regulatory bodies to block the deal.”
Also speaking out against the acquisition was A2IM CEO Richard James Burgess, who stated: “Universal Music Group’s acquisition of Downtown Music’s assets continues a troubling trend of consolidating independent music infrastructure, following acquisitions of InGrooves, MTheory, and PIAS. This increasing level of market concentration chips away at the competitive landscape, making it increasingly difficult for truly independent artists and companies to operate freely and equitably. These acquisitions risk silencing the independent voices that drive innovation and creativity in the music industry.”
Added Darius Van Arman, CEO of Secretly Distribution and co-founder of Secretly Group, “When near-monopolist Universal acquires Downtown, one of the largest independent music ecosystems, and does so in the name of independence, it cheapens what the word means. Market consolidation at this scale is not only anti-competitive, it is a fundamental threat to true independence.”
Virgin’s purchase of Downtown is just the latest in a string of similar acquisitions by major labels over the last several years. In 2024 alone, UMG acquired Outdustry, a label services and rights management firm that works across China, India, and other Asian markets; Thailand-based recorded music catalog RS Group; Nigerian record label Mavin Global; and a minority stake in U.S.-based Chord Music Partners, among others. Two years ago, Sony Music made a splash when it acquired AWAL and Kobalt Neighbouring Rights from Kobalt Music Group, followed by the more recent acquisitions of companies like Spanish label and distributor Altafonte and Greek independent label Cobalt Music. And Warner Music Group has snapped up minority stakes in European indie labels of late, including Dancing Bear Music (Croatia), NIKA (Slovenia) and Mascom (Serbia); it also fully acquired the Dutch label Cloud 9 Recordings in October.
“Whilst we are in favour of free enterprise, monopolies dominate market forces and remove the ability to compete,” said Maria Amato, CEO of Australian Independent Record Labels Association (AIR), in a statement on the Downtown deal. “There must be regulation to ensure that Universal who is already the largest music business in the world with a large stake in Spotify does not dictate prices and the ability for artists and labels to negotiate fair and equitable terms.”
“The recent acquisition by large corporations of companies that until recently were independent is a red alert for the entire global independent music community,” added Felippe Llerena, president of Brazilian trade association ABMI. “The Orchard, AWAL, Som Livre, Proper Music, Altafonte and now Downtown Music are examples of how multinational capital is reshaping the sector. ABMI believes that it is our duty to protect and promote an independent ecosystem, where artists, labels and companies can create freely and sustainably. Our fight is for the appreciation of music as art, culture and expression, not as a simple market product.”
In her own statement, Cecilia Crespo, GM of the association of Argentinian record labels ASIAr, said: “Concentration not only has a negative impact in the way platforms distribute royalties to artists and rights holders (based on market share), but also due to the unregulated use of data and intelligence from the analysis of the data and the behavior of all actors involved (artists, audiences, and users).”
On Tuesday (Dec. 17), several other indie music players came out in opposition to the Downtown acquisition, including indie labels trade body IMPALA, the U.K.-based Association of Independent Music (AIM) and global indie music publishers trade body IMPF.
UMG didn’t immediately respond to Billboard‘s request for comment on the latest statements of opposition.
Dualtone Music Group president and partner Paul Roper died on Tuesday (Dec. 17) following a battle with cancer. Roper was 45. A statement from Nashville-based Dualtone Music Group noted, “Paul’s vision and unwavering commitment continues to define the heart and soul of Dualtone. He led Dualtone and his team with dedication, authenticity, humor, and kindness […]
Actively Black, a Black-owned global sportswear brand, has partnered with the Shakur Estate to introduce a new collection: Tupac X Actively Black. Inspired by the late rapper’s enduring legacy as a music icon and poet, the first drop in the new line will be available for purchase on Christmas Day (Dec. 25), exclusively at activelyblack.com.
In a statement announcing Tupac X Actively Black, the Shakur Estate commented, “With this collaboration, Actively Black celebrates Tupac’s enduring impact on culture, creativity and artistry. Actively Black’s commitment to empowering the Black community perfectly aligns with Tupac’s mission to inspire and spark meaningful change. Inspired by [the poem] “The Rose That Grew from Concrete,” this collection honors Tupac’s voice and message, ensuring it resonates with a new generation.”
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The first drop features a collection of unisex hoodies and T-shirts illustrated with custom co-branded artwork and imagery from Tupac’s archives. The standout piece in the new collection is a relaxed hoodie in washed grey with a graphic rendering of the poem in the late rapper’s own handwriting.
“I grew up listening to Tupac, and even before I fully understood the content of his music, there was something moving about his delivery that resonated with me and so many others still, to this day,” said Lanny Smith, founder of Actively Black. “In early interviews of Tupac, you can see his passion to breathe new life into the Black pride movement. His awareness about the truths of society and determination to improve the lives of his people was awe-inspiring.”
Tupac X Actively Black is the latest collaboration from Actively Black. The company recently introduced a new apparel collaboration with Disney in celebration of the latter’s Mufasa: The Lion King. Earlier this year, Actively Black partnered with the Nigerian Olympic delegation, serving as the official outfitter and apparel sponsor for team Nigeria at the 2024 Paris Olympic Games. The company’s additional partnerships and collaborations include the estates of Muhammad Ali, Michael Jackson and Bob Marley as well as sports franchises the Sacramento Kings and Houston Rockets.
A former NBA player for the Sacramento Kings, Smith launched Actively Black in 2020. Of the upcoming debut of Tupac X Actively Black, Smith singled out a favorite Shakur quote in the announcement release. “One of his quotes has always stayed with me: ‘I may not change the world, but I guarantee I will spark the brain of someone who will.’ I am one of the minds Tupac sparked; and Actively Black is an extension of our shared mission to uplift and empower our people. Tupac X Actively Black is an ode to the genius of Tupac Shakur. He represented us: the Black community, boldly and unapologetically; his legacy embodies what it means to be ACTIVELY Black.”
12/18/2024
New faces, touring and regional genres propelled Latin music to outpace the market, yet again, with no end in sight.
12/18/2024
Jody Gerson, chairman/CEO of Universal Music Publishing Group (UMPG), is set to receive the 2025 Grammy Salute to Industry Icons honor at The Recording Academy and Clive Davis‘ annual Pre-Grammy Gala, which will be held on Saturday, Feb. 1, the night before the 67th Annual Grammy Awards. This is the 50th anniversary of the high-profile event.
Gerson is just the third woman to receive the honor, following Debra L. Lee (2017), then-chairman/CEO of BET Networks, and Julie Greenwald (2023), then-Atlantic Music Group chairman/CEO, who received the award in tandem with Craig Kallman, Atlantic Records chairman/CEO.
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“Jody is an inspirational leader who champions integrity and inclusivity in everything she does and is a revolutionary executive,” Harvey Mason jr., CEO of the Recording Academy, said in a statement. “She has opened doors for and propelled the careers of many of the world’s greatest songwriters, while simultaneously serving as one of the biggest advocates for women in music. We are thrilled to host an extraordinary evening that not only celebrates her remarkable impact but also marks the gala’s incredible 50-year milestone.”
“Jody Gerson is one of the music industry’s most illustrious leaders and I am thrilled that she will be this year’s Salute to Industry Icons honoree,” added Davis. “Jody’s longtime trailblazing commitment to supporting songwriters across the music spectrum as well as her tireless dedication to advocacy, diversity and equality in the music business are exemplary. Artists and the industry at large are fortunate to have a leader with such tremendous insight and passion at the helm.”
Davis originated the pre-Grammy Gala in 1976 when he was looking for a way to celebrate the success of Barry Manilow’s “Mandy,” Arista Records’ first No. 1 hit on the Billboard Hot 100 (and its first Grammy record of the year nominee).
Since joining UMPG in 2015, Gerson has transformed the company into a global powerhouse that owns and administers more than five million copyrights. She leads a global company with 48 offices in 40 countries and more than 850 employees. She made history as the first female chairman of a global music company and the first woman to be named CEO of a major music publisher.
Gerson is a member of Universal Music Group’s (UMG’s) executive management board.
Gerson ranked No. 14 on Billboard’s 2024 Power 100 list. Kristin Robinson, Billboard’s senior writer (publishing), led her essay about Gerson by saying, “As UMPG’s CEO, a National Music Publishers’ Association board member and co-founder of She Is the Music, an organization committed to empowering female creators, Gerson is one of the most trusted voices in music publishing.”
That was backed up with hard facts. From 2013 to 2023, UMPG’s U.S. revenue grew from $900 million to more than $1.9 billion. In that same time frame, the company narrowed the revenue gap between it and market leader Sony Music Publishing from $400 million to $188.5 million.
Gerson received a Primetime Emmy nod in 2021 as an executive producer of HBO’s The Bee Gees: How Can You Mend a Broken Heart, which was nominated for outstanding documentary or nonfiction special. A year ago, she received a Grammy nod as one of the video producers for 2Pac’s Dear Mama, which was nominated for best music film.
Gerson has signed and works with many of the world’s biggest music stars, including Adele, Bee Gees, Bad Bunny, Justin Bieber, Sabrina Carpenter, Lana Del Rey, Ariana Grande, Coldplay, Drake, Billie Eilish, H.E.R., Elton John, Alicia Keys, Steve Lacy, Kendrick Lamar, Post Malone, Maren Morris, the Prince estate, Rosalia, Harry Styles, Taylor Swift, SZA and The Weeknd. She also led UMPG’s acquisitions of the hit-studded catalogs of Bob Dylan, Neil Diamond and Sting, among others.
As a champion for women in music and an advocate for education, Gerson co-founded the global nonprofit She Is The Music. She also serves on boards for the USC Annenberg Inclusion Initiative, The Rock & Roll Hall of Fame, the National Music Publishers Association, New Roads School and Project Healthy Minds.
Gerson jointly oversees Polygram Entertainment, a film and TV development and production division of UMG that produces feature-length films and music-centric series. In 2024 alone, she served as executive producer on a broad array of projects, including Music Box: Yacht Rock: A DOCKumentary; The Beach Boys; STAX: Soulsville, U.S.A.; and Billy Preston: That’s The Way God Planned It. Other recent projects that Gerson executive produced include the aforementioned The Bee Gees: How to Mend a Broken Heart and HBO’s Music Box series. Among her and Polygram’s many projects in development are documentaries on Bernie Taupin and Prince.
In January 2020, Gerson became the first woman and first music publishing executive to be named Billboard’s executive of the year on its annual Power 100 list. She is the recipient of numerous other honors, including Billboard‘s Power Players’ Choice Award; Variety’s Hitmakers Executive of the Year; Billboard‘s 2015 Executive of the Year for its Women in Music issue; Rolling Stone’s “Future 25”; Variety’s Power of Women L.A.; and the 2016 March of Dimes Inspiring Woman of the Year.
The invitation-only Pre-Grammy Gala is sponsored by Hilton, Mastercard and IBM.
Jon Platt, Sony Music Publishing chairman/CEO, was last year’s Grammy Salute to Industry Icons honoree.
Here’s a complete list of previous honorees at the pre-Grammy Gala.
2005: Ahmet Ertegun
2006: Mo Ostin
2007: Herb Alpert & Jerry Moss
2008: Berry Gordy
2009: Clive Davis
2010: David Geffen
2011: Doug Morris
2012: Sir Richard Branson
2013: Antonio “L.A.” Reid
2014: Sir Lucian Grainge
2015: Martin Bandier
2016: Irving Azoff
2017: Debra L. Lee
2018: Shawn “JAY-Z” Carter
2019: Clarence Avant
2020: Sean “Diddy” Combs
2022: Rob Stringer
2023: Julie Greenwald & Craig Kallman
2024: Jon Platt
Independent record labels and publishers are urging regulators to block the acquisition of Downtown Music Holdings by Universal Music Group (UMG) over fears that the deal weakens competition, to the “severe detriment” of artists and fans.
UMG-owned Virgin Music Group announced on Monday (Dec. 16) that it had agreed to buy Downtown Music Holdings for $775 million cash. The deal, which is subject to regulatory approval, bolsters UMG’s share of the music market by bringing a number of independent distributors, publishing and rights administration businesses owned by Downtown under its control. Those businesses include distributors CD Baby and FUGA, publishing administrator Songtrust and Los Angeles-based rights management company AdRev.
UMG’s purchase of Downtown comes two months after it acquired full ownership of European indie label group [PIAS] — a deal that also prompted indie trade groups to issue calls for regulators to intervene.
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“This is another land grab,” said Helen Smith, executive chair of independent labels trade body IMPALA — which represents more than 6,000 indie labels and music companies in Europe, including Beggars Group, Cooking Vinyl, Domino and Epitaph — in a statement about the Virgin-Downtown deal.
“We expect competition authorities in key jurisdictions to carry out thorough investigations and block these deals,” Smith added. She also pressed the European Union’s executive branch, the European Commission, “to set the standard internationally.”
“The cynical use of the Virgin brand, once synonymous with independent entrepreneurship, should not hide the fact that this is about utter dominance and control,” added Beggars Group founder Martin Mills in a statement. “This is another step on the road of UMG’s pretence to be the independents’ fairy godmother,” he continued. “But there’s a wolf under that cape.”
The acquisition of [PIAS] and Downtown in rapid succession by UMG follows a flurry of dealmaking over the past several years that has seen both traditional music companies and outside investors snap up firms, labels and distributors that cater to the fast-growing global independent sector.
Major label acquisitions in that time include Sony Music’s 2022 purchase of artist services company AWAL and Kobalt Neighbouring Rights from Kobalt Music Group. More recently, Sony acquired Spanish label and distributor Altafonte, followed last month by a deal for Greece indie label Cobalt Music.
Meanwhile, Warner Music Group has been steadily growing its recorded music interests in Central and Eastern Europe, buying minority stakes in Croatia’s Dancing Bear Music, Slovenian independent label NIKA and Serbia’s Mascom; and acquiring Dutch label Cloud 9 Recordings.
UMG’s deals for [PIAS] and Downtown followed a decade-long ban on the music giant acquiring certain music companies or catalogs in Europe that expired in September 2022. Those restrictions, imposed by the European Commission in 2012 following the company’s $1.9 billion takeover of EMI, prevented UMG from re-acquiring any of the assets it had sold or re-sign any artists who had signed with labels from which it had divested, such as Parlophone Label Group or Chrysalis, for 10 years.
Although Downtown Music Holdings was founded and is headquartered in New York, the scale of its multifaceted business, representing over 50 million songs across more than 145 countries and spanning publishing, distribution, artist and label services, and royalty administration, makes it a major player in the global indie sector. As such, the company’s acquisition by UMG would create a “fundamental shift in the competitive dynamics of the music market,” warned IMPALA chair Dario Draštata in a statement on the acquisition.
The Brussels-based trade association said the sale of Downtown and [PIAS] would further squeeze the independents in an already highly concentrated market and help UMG move further into the market for distribution and services for labels and artists.
“This means more market share and gives UMG control over the opposition,” said IMPALA in a press release. It added, “UMG suing Believe is another part of the strategy,” referencing last month’s $500 million lawsuit filed by UMG, ABKCO and Concord Music Group against Believe and its distribution company TuneCore that accused them of “massive ongoing infringements” of their sound recordings.
Other executives and organizations voicing concern over UMG’s latest acquisition include global independent music publishers trade body IMPF, which said the potential sale would “ultimately reduce choice for songwriters and publishers alike,” and the U.K. Association of Independent Music (AIM), whose CEO, Gee Davy, said the deal reduces independent routes to market.
“It is vital to uphold a true choice of partners for artists and labels and ensure that negotiating power does not become unbalanced,” said Davy in a statement.
Representatives for UMG did not respond to requests for comment when contacted by Billboard.
To achieve the bright sound in his famous 1965 solo for The Who‘s “My Generation,” John Entwistle bought a cheap Danelectro bass, removed the strings designed by John D’Addario Sr., and transferred them to his Fender. The plan worked until one of the strings broke — and Entwistle had to buy two more Danelectros just for the strings.
Jim D’Addario, who built a multimillion-dollar guitar-strings empire on the foundation of his late father John’s early innovations, tells this story in a 50th-anniversary video series called Jim’s Corner. D’Addario, which sells drumheads, saxophone reeds, pedalboards, earplugs and other musicians’ gear in addition to its signature guitar strings at 3,300 retail outlets, earned $220 million in global revenue last year and employs 1,100 people, has taken a corporate victory lap throughout, combining history with “When You Know You Know” ads starring younger players like Chris Stapleton, Herman Li of DragonForce and Yvette Young of Covet.
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“Most people are very apathetic about their strings, and they usually listen to their teacher, or an artist that’s endorsing the product, to get them to try our strings,” says D’Addario, now chairman of the board of the company he named after his family in 1974. “The ones that know really know ours are better — and consistent.”
In addition to the video series, the company that started with teenaged Jim accompanying his guitar-playing father to music-business trade conventions in the ’60s launched a beer, Eddie Ate Dynamite (GoodBye Eddie), in early December; held a beer-launch party at the time starring a member of the Infamous Stringdusters; and spent much of 2024 releasing limited-edition merch and packages of strings in retro containers.
D’Addario acknowledges the company faces industry headwinds — the musical-instrument business, he says, is declining 2%-3% per year, which affects a company whose guitar strings make up 45% of its business. “People buy a guitar for their kid, and if he doesn’t play, they don’t put it in the attic or the basement anymore. They put it on eBay,” D’Addario says. “Everything a dealer sells, he’s going to compete with that instrument. That has had a very serious effect on the instruments bought at retail.”
But mostly, D’Addario is upbeat, describing the guitar pedalboards his company has spent two years designing, pedalboard power supplies containing USB batteries and coated strings that resist “moisture, perspiration, skin, debris.” Says D’Addario, “We keep an ideation list for each brand. We’ll have crazy things on there. When we have bandwidth, we’ll throw one on the active-project list.” Here, he discusses the company’s past and present in an hourlong Zoom from his home workshop in Farmingdale, N.Y.
What do you hope people learn about D’Addario from the 50th-anniversary campaign events?
It’s not the 50th anniversary of the family making strings, it’s the 50th anniversary of the brand name D’Addario. My dad and my grandfather were afraid to put their name on products. Italians would be discriminated against and it was a difficult name to pronounce. They felt like, in certain markets, it might not be accepted. In August of ’74, I said, “Nah, we’re going to get credit for making certain stuff, and our name’s going to be on it.”
Can you hear when a guitar player on the radio uses your strings?
No, that’s impossible. There are a lot of good strings out there that sound good. It’s very hard to discern that just from listening to it on the radio.
In the early 1990s, a package of strings had an envelope for each of the six strings — a paper envelope for each one, identified for each note, in a vinyl pouch with a fancy label. So there was a minimum of eight pieces of packaging; sometimes there was a little advertisement as well. My daughter Amy was in high school, and they were studying environmental friendliness and recycling and packaging, and I was changing my strings on the bed and I had all this garbage when I was done. She said, “You should really do something about that, that’s really criminal, you’re putting so much junk in the waste-stream just to change a set of strings.”
So it got me thinking. I came up with a system of color-coding the ball end on the string a different color, then coiling those together in one corrosion-resistant plastic bag and having them color-coded, so the silver one is this note and the brass one is this note. It eliminated 75% of the packaging. Since that time, we’ve saved billions of trees and millions of pounds of carbon not released into the atmosphere. That was one of the things that distinguished our strings. That’s one way we can tell onstage if our strings are being used. Otherwise, it’s very difficult. You can put branding on the package but when they’re playing on stage you can’t see it.
What music stars are your most loyal customers?
A lot of jazz guys, like Pat Metheny, who’s a good buddy, and Julian Loge. But there’s also a whole contingent of new people that I might not know. John McLaughlin, Blake Mills, Molly Tuttle, Billy Strings, Chris Thile of Nickel Creek, Sierra Ferrell, a mandolinist [who’s] going to be a superstar — those are the artists that really gravitate to our brand because they know they’re going to get the very best product.
How has the musical instrument market changed since you started?
It’s quite different. We also make drumheads and drumsticks and snare wires and guitar straps and cables. We make drumheads for acoustic drums and drumsticks and other accessories for drummers. The acoustic-drum market is 40-60% of what it was in 2004. Drums have been digitized. Instead of 20,000 drumheads a day, we’re only making 10,000. The other thing is the guitar was really the solo instrument, but it’s not anymore. You don’t hear a guitar solo in every hit; you hear repetitive rhythms and electronic sounds and synthesized sounds.
How much does this worry you?
We’ve seen this so many times — in the early ’90s, it was video games, and for three or four years, the guitar market didn’t have much growth. But then it came back. The acoustic guitar market was in the tank for the whole decade of the 1980s, and “MTV Unplugged” happened, then bingo, the acoustic guitar took off again. It always comes back.
What are your retirement plans, if any?
We don’t want to sell our business. Our family name is on the product. D’Addario strings are like the Titleist of golf balls, like Scotch Tape. When you walk into a music store, 40% to 50% of the strings on the wall are our brand, and that’s in almost every country around the world. I’d have trouble walking into a store and seeing my packaging screwed up or listening to people complaining about the quality.
Hugh Forrest has been promoted to president of South by Southwest, where he will continue to oversee programming and assume full leadership of an organization he’s worked at for 36 years. Previously co-president and chief programming officer, Forrest takes on this new role as Jann Baskett, the current co-president and chief brand officer, prepares to step down on Dec. 31. Baskett will transition into an advisory and project-based role.
As president, Forrest will focus on driving business growth and work closely with the board of directors, which includes co-founder Roland Swenson, Jay Penske (CEO of Penske Media, SXSW’s largest shareholder), and Amy Webb (CEO of the Future Today Institute). Forrest expressed his enthusiasm for leading SXSW into its next phase, emphasizing “the experience of connection, inspiration and discovery that we provide for so many different industries each March” and its role in fostering community globally.
Founded in 1987 by Swenson, Nick Barbaro, Louis Black and Louis Jay Meyers, SXSW has evolved into a globally renowned event in Austin. Swenson, who led SXSW for 36 years, became executive chairman in 2022. Over the past two years, Forrest and Baskett successfully navigated SXSW’s post-COVID recovery, including expanding the festival to Sydney and London.
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Baskett reflected on her time leading SXSW, sharing pride in her contributions alongside Forrest and the team. She praised the event’s mission of supporting creative individuals — “Never has that purpose been more necessary” — and expressed excitement about her ongoing involvement as an advisor. “SXSW continues to be a beacon of light for artists and change makers,” she said.
“I want to extend my gratitude to Jann Baskett for her leadership, commitment, and creative vision as Co-President of SXSW over the past few years,” said Jay Penske. “Her contributions have been key in evolving the festival. Looking ahead, we are confident that Hugh Forrest will continue SXSW’s long tradition of supporting innovators and artists, expanding our global footprint, and building upon the incredible foundation of the world’s premier gathering of creative minds.”
The Executive Leadership Team supporting Forrest includes co-founders Swenson and Barbaro, as well as chief culture & people officer Autumn Amescua, chief technology officer Justin Bankston, chief logistics officer Michele Flores, chiefpartnerships officer Peter Lewis, chief financial officer Leanna Rossman, general counsel Stevie Fitzgerald and executive vice president Darin Klein
Note: Billboard’s parent company PMC is the largest shareholder of SXSW and its brands are official media partners of SXSW.