Business News
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Independent dance music label Armada Music said on Thursday it acquired the master recording rights of Detroit techno forefather Kevin Saunderson‘s KMS Records and Russian DJ ARTY to launch its new music investment fund focused on dance music.
The fund named BEAT–which stands for Best Ever Acquired Tracks–launches with $100 million in debt and financing from Pinnacle Financial Partners, which Armada says will be deployed over the next two years.
Launching into the redhot music IP investment market, Armada’s BEAT aims to capitalize on investments in a genre that has so far gotten less attention than others, like pop and classic rock.
A growing number of funds have launched in the past 18-months focused on genres like indie, Latin music and production music, aiming to use in-house expertise on a specific genre to find ways to make catalogs generate greater returns for the artists and rights holders.
“BEAT is in a unique position to add relevance to those tracks through creative additions, best practices in exploitation setup, and marketing methods and communication channels within the bigger (Armada) organization,” says Armada Music chief executive Maykel Piron.
BEAT says it is focused on acquiring catalogs that fall under the category of dance, including subgenres like techno, house, electronic dance music (EDM) and others. EDM alone is estimated to present a $9.5 billion market opportunity, growing to more than $20 billion in the next decade, according to a report by research firm Future Market Insights.
“We are seeing folks who are trying to be smarter, and one way to do that is to arbitrage certain genres,” says Matt Rosenberg, head of media finance at Monroe Capital. “It unlocks the investment ecosystem for more artists.”
Attached to Armada, BEAT will tap into the genre’s leading record label for “data on trends, creative resources, exploitation models (and) new artists,” Piron says.
“We are in a unique position in that we know everything on older catalogs since we have built one over the last 20 years through Armada,” Piron says. Armada has acquired catalogs from artists and dance labels, including Midtown Records, United Recordings and Combined Forces. “BEAT has 100% control over the exploitation and re-exploitation of the acquired catalogs.”
Saunderson made his name with a string of eight Top 10s between 1988-94, including “Good Life,” “Big Fun,” “Ain’t Nobody Better” and “Do You Love What You Feel” and others. The catalog of KMS, which Saunderson helped found over 30 years ago, includes Saunderson’s “Good Life” and “Big Fun,” recorded with Inner City.
“In the post-COVID period, we are seeing a huge revival of 90’s dance. Sometimes younger audiences don’t even realize they are dancing to 30-year-old tracks,” Piron says.
With a catalog of newer hits, ARTY is known for dance tracks “Sunrise,” “Save Me Tonight,” “Craving” and “Take Your Time” from between 2018 and 2021. Based in Los Angeles, ARTY has also produced and remixed songs for Skrillex, Armin van Buuren, Halsey and others.
HYBE announced Monday (Sept. 17) that a dozen solo artists and music groups on the SM Entertainment roster will join its global fan community platform, Weverse, in September. Those artists, who have not yet been named, will move to Weverse from SM’s own fan community platform, Kwangya Club.
In addition to connecting with fans via services including Weverse Live, the 12 SM artists will also be featured on the e-commerce platform Weverse Shop, where fans can buy albums and official merchandise.
The Weverse deal derives from a platform partnership struck between HYBE, SM and Kakao Entertainment in March after HYBE fell short of its mission to purchase a controlling stake in SM. HYBE, home to K-pop superstars BTS, was blocked in its efforts by rival bidder Kakao, a South Korean tech company that owns Monsta X‘s label Starship Entertainment and Korean music streaming platform Melon. The battle ended when HYBE agreed to sell its entire SM stake to Kakao; days later, it sold 1.66 million SM shares to Kakao for 248.8 billion won ($191.8 million), amounting to 44% of its total shares in the company and increasing the stake of Kakao Corp. and its subsidiary, Kakao Entertainment, to nearly 40%. HYBE retains an 8.8% stake in SM.
Later in March, SM appointed Jang Cheol-hyuk as the company’s new CEO, succeeding outgoing CEO Lee Sung-soo, and named a new board as the company vowed to improve corporate governance and its production system, which had fallen behind rivals like HYBE in recent years and led to investor scrutiny.
Weverse claims approximately 65 million subscribers across 245 countries and regions globally.
Madison Square Garden Entertainment (MSGE) has reached an agreement to sell its stake in the Tao Group chain of restaurants and nightclubs to global luxury lifestyle company Mohari Hospitality, according to a filing Monday (April 17).
MSGE will sell its 66.9% majority interest in Tao Group Hospitality for about $300 million, according to the filing. The deal, which values Tao Group at $550 million, is expected to close in May.
News of the planned sale comes just days before MSGE is expected to finalize the spin-off of its live entertainment business, a move that will separate the pure-play live music business from the company’s state-of-the-art Sphere venue in Las Vegas, sports television network and hospitality businesses.
The spin-off would have moved Tao Group Hospitality into the parent company, renamed Sphere Entertainment Co., along with the Sphere, the new Las Vegas venue currently under construction, and MSG Networks. The company said Monday that upon the deal’s close, it will “enter into multi-year agreements with Tao Group Hospitality for ongoing consulting, marketing, and support services at Madison Square Garden and Sphere in Las Vegas.”
MSGE bought a majority stake in Tao Group in 2017 and has since expanded it to include Hakkasan, Beauty & Essex and other restaurants for a total of more than 80 locations spread across 24 cities on four continents.
Founded in 2017, Mohari Hospitality is an investment company that owns stakes in the Waldorf Astoria in Miami, the 1 Hotel in Toronto, a luxury sustainability-focused resort in Costa Rica called the Peninsula Papagayo and the Ritz Carlton’s cruise line of custom yachts.
Equity holders in Tao Group Hospitality were advised by Goldman Sachs & Co. and Hughes Hubbard & Reed. Advising Mohari Hospitality were Moelis & Company and Kirkland & Ellis.
LONDON — Swiss-based tech company Utopia Music is undertaking a fresh round of job cuts, eliminating around 15% of its global workforce, co-founder and interim chief executive Mattias Hjelmstedt said in a memo to staff on Monday.
Hjelmstedt said the cost-trimming measures follow a review of the organization’s business and form part of an ongoing “strategic shift” towards a focus on delivering financial services for labels, publishers and distributors. Billboard understands that around 100 jobs are being cut.
In the staff memo, which has been seen by Billboard, Hjelmstedt says that Utopia’s distribution companies are not affected by the staff cuts. They include Proper Music Group, the United Kingdom’s leading independent physical music distributor, which provides distribution services for 1,000-plus indie labels and service companies, and Cinram Novum, which provides warehouse, fulfilment and distribution services to a range of labels, including UMG, Sony Music Entertainment and [PIAS].
Monday’s announcement is the second round of layoffs to take place at Utopia in the past six months.
In November, the Zug, Switzerland-based tech company cut its workforce by around 20%, representing about 230 jobs. That was followed by a restructuring of Utopia’s business into two separate divisions: Music Services and Royalty Platform in December and the exit of former CEO Markku Mäkeläinen in January. Earlier this month, U.K.-based Roberto Neri announced that he too was leaving his position as CEO of Utopia’s Music Services division to join French music company Believe.
The start of this year has also seen Utopia, whose motto is “Fair pay for every play,” divest two of the 15 companies it acquired over the past two years during a frenetic buying spree. On Feb. 7, Utopia announced that it had sold U.S.-based music database platform ROSTR — which has a directory of artists, managers, booking agents and record labels — back to ROSTR’s founders for an undisclosed sum.
Last month, French music company Believe acquired U.K.-based publisher Sentric, which represents more than four million songs and over 400,000 songwriters in more than 200 territories, from Utopia in a deal worth €47 million ($51 million). Utopia owned Liverpool-based Sentric Music Group — which also has offices in London, Hamburg, New York and Los Angeles – for just over a year before selling it to Believe.
“Today’s market requires that companies that embarked on a hiring spree during ‘hyper growth’ now restructure,” wrote Hjelmstedt. “We are a company that is not afraid to adjust when necessary. That means we take active decisions, however hard they may be, to ensure we can deliver our vision to serve the music industry.”
Hjelmstedt went on to say that adjusting to these strategic changes “has been a big, but necessary undertaking” that has optimized the company’s client offering “and already seen an uplift in customers.”
Referencing recent reports by Scandinavian news outlet Breakit that some Utopia employees had not been paid and the company’s Swedish arm, Utopia R&D Tech, owes 8 million SEK ($770,000) to the Swedish tax authorities, the CEO said “all outstanding tax debts have been cleared” and legacy issues regarding staff payments were “in the process of being cleaned up.”
“We continue to actively work on this process to ensure that we never find ourselves in this position again,” said Hjelmstedt, adding that the company – which had a workforce of around 1,000 employees internationally prior to sale of Sentric – will soon share information on “commercial initiatives, deals, and sales strategies” that will drive future revenue growth.
Read the memo in full here:
Dear Utopians,
Since taking on additional responsibilities as your Executive Chairman, I’ve been committed to sharing the steps we must take for Utopia to become a profitable and sustainable business. The new leadership team and I have had to make some important, and sometimes very tough, decisions as part of this ongoing process. Today I need to share news of that nature.
Together, we’ve very carefully reviewed our organization against our refocused product and commercial roadmaps, and specific needs, and must share the unfortunate news that, as part of this strategic shift, we need to say goodbye to around 15% of our Utopian colleagues. Our distribution companies are not affected by this review.
Thomas and I created Utopia by combining two of our great loves – music and technology – and we’ve built it together with you. That’s why this is the most difficult decision we’ve had to make so far, and I fully appreciate that after these past few months this will be hard to read. If you are one of the affected individuals: Please know that this is in no way based on your individual performance – we hired you because we value you and you are great at what you do – this is about doing what is necessary to secure the future of the company. We’re truly sorry to see you go and feel both humbled and grateful for all the amazing work you have done for Utopia.
It’s been very hard to see how Utopia was treated last year and you already know how I feel about decisions taken that put us in a difficult situation. Additionally, like the rest of the tech industry, we’re facing challenges brought on by changed market conditions. We’ve seen several waves of redundancies from companies large and small – Meta, for example, recently announced its “year of efficiency” to cater to its long-term vision. Today’s market requires that companies that embarked on a hiring spree during “hyper growth” now restructure. The likes of Spotify, Microsoft, and PayPal (and so many others) now need to adapt to the new reality of focused sustainable growth – just like we have to at Utopia. We are a company that is not afraid to adjust when necessary. That means we take active decisions, however hard they may be, to ensure we can deliver our vision to serve the music industry with technology for processing royalties, distributing music, and facilitating Fair Pay for Every Play while reducing complexity for our customers.
Adjusting to these changes has been a big, but necessary undertaking. We’ve sharpened our strategic focus these past three months through targeted sales (ROSTR and Sentric) – bringing in further capital as an additional benefit – and we appointed a new, mature leadership team that’s equipped to move Utopia towards profitability. We have optimized our offering and already seen an uplift in customers – we have strong products on the market that we will continue to improve, a top-of-the-line platform, a world-class distribution arm that represents 98% of UK labels (including all majors), and a plan to first break even and then grow even further, sustainably. The legacy from last year is in the process of being cleaned up. All outstanding tax debts have been cleared, including our financial obligations in Sweden. We continue to actively work on this process to ensure that we never find ourselves in this position again. We’re humbled and grateful to all of you who stepped up to support this large, strategic shift, and have shown patience while we do so.
Soon we will share more information on commercial initiatives, deals, and sales strategies that will drive Utopia’s revenue growth. But for now, let’s allow ourselves time to reflect and give the great people that will unfortunately have to leave us a proper goodbye. Some colleagues will receive difficult news and some will lose teammates and friends, so please be there for them.
I want to express my sincere apologies to everyone affected. Utopia was built to be a high-impact company and we have attracted extremely talented people who we truly appreciate and respect. That’s why this decision is so hard to make. I know you will have a lot of questions, please know that more information on next steps will be provided by the P&C team shortly.
Take care of yourselves and each other,
Mattias
Lloyd Starr has been appointed COO at Discogs, the recorded music database, marketplace and community, effective May 1. He joins the company from vinyl subscription service Vinyl Me, Please; prior to that, he served as president/COO at digital electronic music marketplace Beatport.
In his new role, Starr will oversee Discogs’ day-to-day operations, with a focus on driving growth and innovation. He will work closely with CEO Kevin Lewandowski and the rest of the executive team to develop and implement Discogs’ strategic direction.
“We’re thrilled to welcome Lloyd Starr to the Discogs team as our new COO,” said Lewandowski. “Lloyd’s extensive experience in the music industry and his track record of success in building and scaling companies make him an ideal addition to our leadership team. We’re confident that his expertise will help us continue to grow and innovate as we serve our community of music fans, record collectors, and sellers around the world.”
Starr added, “I’ve long admired the Discogs mission and its passionate community. I am thrilled to join such a talented and creative team to help realize our vision and continue to add value for vinyl and music lovers worldwide.”
Jon Kurland was named executive vp of business affairs and chief entertainment counsel at iHeartMedia. In his new role, Kurland will lead the company’s business affairs team and focus on deals and relationships with iHeart’s podcast, music, entertainment and new media partners. He will additionally oversee the company’s entertainment legal functions across podcasts, live events and new media initiatives as well as its music licensing strategy. Based in New York City, he will report to executive vp and general counsel Jordan Fasbender. Kurland joins iHeartMedia from Amazon, where he was senior corporate counsel in the global media and entertainment group.
Jen Ashworth was promoted to senior vp of commercial marketing & streaming at Capitol Music Group (CMG), up from her previous role as vp of global commercial marketing. In her new role, Ashworth will oversee the company’s streaming strategies across its portfolio of labels, with a focus on editorial and partner activations with Spotify, Apple Music, Amazon, YouTube and Pandora. She will continue managing CMG’s relationship with Spotify as the company’s account lead. Based in Hollywood, she reports to CMG executive vp of global commercial marketing strategy Mike Sherwood.
Manager Jared Rosenberg joined Red Light Management, bringing clients Aly & AJ and Disney star Kylie Cantrall to the firm. Rosenberg has been in management for over 20 years, working with artists including Backstreet Boys, Janet Jackson and Thirty Seconds to Mars.
Mateo Dorado joined Atlantic Records as senior director of A&R. The New York-based executive will work closely with emerging artists including Luh Tyler and Alicia Creti while reporting to Atlantic co-president of Black music Lanre Gaba. He arrives at Atlantic from Alamo Records, where he signed Rod Wave.
Jonathan McHugh joined independent music publishing, rights management and catalog marketing company AMR Songs as senior advisor of creative and synch. McHugh will also sit on the company’s board. Over a decades-long career, the industry veteran has served in roles at New Line Cinema (as vp of soundtrack music), Jive/BMG and Island Def Jam/Def Jam Films; he has produced 40 music-focused films and TV series and music-supervised 85 feature films and TV shows. In addition to his new role at AMR Songs, he will continue working as an independent producer/director and music supervisor while teaching a music industry studies class at Loyola University in New Orleans.
Amanda Tumulty was named vp of global marketing at Cinq Music Group. She joins the company from Universal Music Group, where she spent over five years on the global consumer marketing team, specializing in marketing strategy and operations. At Cinq, she will oversee all marketing strategies for the label/distributor’s roster and the Cinq Music brand. Tumulty can be reached at atumulty@cinqmusic.com.
Nashville-based record label Melody Place restructured and rebranded while elevating Sanborn McGraw to president/general manager and Tony Gottlieb to COO. Under the new leadership, the company will refocus its efforts on artist development, original material and international promotion. The first signing following the restructure is Nashville singer-songwriter Makena Hartlin, who signed a recording and publishing deal with Melody Place and its affiliate, Melody Place Publications. She will release her single, “LA,” on the label April 21. Melody Place is also working on a new project from singer Jackie Evancho. McGraw can be reached at sandy@melodyplace.com and Gottlieb can be reached at tony@melodyplace.com.
Global creative audio network Squeak E. Clean Studios hired music producer Jennie Armon as executive creative producer out of New York. She joins the company following seven years at Brooklyn-based music and sound company Found Objects, where she served as executive producer and music supervisor. Armon can be reached at jennie@squeakeclean.com.
Does Beatport know something the rest of the music business doesn’t? Look at some of the dance music platform’s recent numbers across paid downloads and streaming, and it feels that way.
While digital downloads have fallen to near all-time lows across the music business, with global revenue down 43.75% in the past five years, according to IFPI, for Beatport they’ve increased 35% in that same period. In 2022, the digital service claims to have sold 25,519,770 song downloads — making up nearly 12% of all tracks downloaded globally, based on Luminate data.
A key to Beatport’s growth is its focus specifically on DJs. By offering high-quality downloads for use in live sets, that functionality is still driving sales in a music market dominated by streaming. (The cost of a digital track at Beatport averages $1.29). Other platforms are, meanwhile, following broader industry trends and have started burying downloads; on the desktop version of iTunes, for example, options to purchase tracks notably appear halfway down the homepage.
Beatport is working in a smaller market than Spotify or Apple Music, of course, and most casual streamers won’t go on to become practicing DJs, but Beatport CEO Robb McDaniels expects that the fraction that do will contribute to Beatport’s continued growth. “Our hope is that 1% or 2% of Spotify’s paying subscribers decide that their music experience isn’t a lean back one — it’s an active and immersive one where they’ll spend their time listening to their music in the DJ booth or while they’re DJing at home,” he says. “As a result, you’ll see the shift from the really low payouts at Spotify and Apple to the much higher ones at Beatport, and the copyright holders are the ones who benefit.”
Over the past two years, meanwhile, streaming has grown by 60% at Beatport — a jump supported by the platform’s push to appeal to the next generation of DJs, who are expected to gravitate to streaming-based workflows due to their greater familiarity with streaming models versus download models, according to McDaniels. The company is driving this push with its browser-based DJ web application, Beatport DJ, which allows users to access and DJ from its library of music (which includes all major labels as well as leading and boutique dance imprints) without any additional hardware or software.
New Beatport data also paints the platform as a leader in pay-per-stream rates, with Beatport paying 50 to 60 times more per stream than other DSPs. At a time when subscription services including Apple Music and Amazon music have raised their monthly prices, and Spotify is expected to eventually do the same, Beatport’s royalty payouts are boosted by drastically higher subscription rates. While the service offers a baseline, standard $9.99 subscription offer, it also has tiers at $14.99 and $29.99 that allow for integrations with other platforms like Serato and Traktor, and being able to play songs while offline — important functions for DJs.
In 2022, Beatport paid an average of $0.10808333 per stream, while its service aimed at open-format DJs, Beatsource, averaged $ 0.17773333 per stream — more than 30 times the industry-wide blended average streaming rates across platforms in the United States was $.0053 per stream. After launching in mid-2019, Beatport’s music subscription products now make up 20% of its revenue.
Below, McDaniels details the mechanisms of Beatport’s growth, its capacity to pay streaming rates that far exceed the industry standard, and why the DJ booth is “the most valuable real estate in the music industry.”
Billboard: Are there any demographic shifts among Beatport’s active users that could have contributed to the increase in downloads?
Robb McDaniels: We’ve been trying to answer this for ourselves so we can figure out the right levers to pull and buttons to push as we try to spread the brand around the world. Right before the pandemic year, [active use] was heavily skewed towards the Western world [the top five countries for paid downloads at Beatport are the United States, United Kingdom, Germany, Australia and Canada] , but dance music and DJ culture is global; we have these communities all over the world.
We just weren’t doing an effective job of engaging with them or keeping them engaged, so we started making an effort to do that in ways that were inspired or triggered by the pandemic. We wanted to speak to everybody and let them know that we were still going to be supporting the community in any way that we could. We had to broaden our perspective, and I think by doing that, we activated customers that had visited Beatport and been customers in the early years, or the people who’d put away their controllers and had maybe given up on DJing. Obviously, being stuck at home, it was the perfect time for them to wipe off the dust and start DJing again.
How so?
Going into the pandemic, we thought that our business would decline, because all the clubs were shut down, but it actually increased because of customers like these who realized how important music and DJ culture was to their happiness.
The other thing we did was fortuitous: We dropped our download prices the month before the pandemic. This reduced the sticker shock of high download prices when people came to the store. All of these things led to an increase in accessibility for anybody who wants to try DJing.
Were there other reasons why Beatport wasn’t reaching some of the global DJ communities as effectively as possible?
Historically, there have been a number of mitigating factors for Beatport. First, we’re a small company. When I joined in 2017, [after Beatport downsized in 2016 following its parent company, SFX, filing Chapter 11 bankruptcy] there were about 40 people. We’re now a lot bigger; we’ve grown tremendously through acquisition and organic growth over the last few years, but the brand is still a lot bigger than the company itself. You’ve got folks all over the world that know about Beatport, but they’re typically buying in dollars or euros. We weren’t a big enough company to accept all currencies [all over the world], so we didn’t directly market in those areas. We also didn’t have the marketing budget to spend $20,000 a month on ads in India.
There are other issues with places like the emerging markets where the price that customers could support is just not something that fits our business model, but we’re beginning to address that. Now, as we look into these emerging markets, they’re really not emerging anymore; India’s massive, and the Middle East and Latin America have a lot of opportunities. We are now beginning to make the investments that are necessary to really serve and activate those markets, so I think we’ll see that benefit in the next few years.”
Beyond broadening Beatport’s reach and re-engaging with existing users, what else has driven Beatport’s paid downloads?
I think the goodwill that Beatport generated during the pandemic by putting on livestreams to raise money for various charitable organizations, along with the focus on communicating and connecting with people around the world, are the primary reasons downloads increased in the last couple of years. Other business decisions like reducing the price of downloads and improving system performance, infrastructure, uptime — all of the stuff that we’ve been investing in — has helped to buck the global trend in the download market.
Robb McDaniels
Courtesy of Beatport
Can you tell me more about why the livestreams were so impactful?
Just before the pandemic, we had signed a deal with Twitch to broadcast live DJ gigs at the big festivals on our Twitch channel. We did the first one at CRSSD Festival in San Diego with Carl Cox and Charlotte de Witte; I think that was the last festival before everything shut down. Our media group team then moved it online, and we started doing all of these massive 24-hour livestreams with DJs all around the world. The team went on to do a number of other [livestreams]. While livestreams have generally decreased in popularity, we acquired a lot of customers, as well as followers, that way. Our social media outlets just went through the roof.
[Our media team] continues to produce and create really engaging content that keeps this global community revolving around Beatport and interested in what we’re doing. I think that inevitably brings a lot of the customers in, and you don’t really see any other traditional music store doing that kind of thing for and with the community. In that way, Beatport is pretty unique compared to the Amazons and iTunes and Deezers of the world.
Turning to streaming, how is Beatport able to pay so much more per stream than other DSPs?
There are a few things. Number one is — and this is the most important thing — our customers are different. The regular music experience has been a passive one where you throw on your Spotify in the background for six hours a day and just forget about it. Our customers are DJs; it’s a much more active and immersive music experience. We believe the industry is now shifting to this more active and immersive music experience, because the music experience changes every generation. Inevitably, it happens: vinyl to tapes, tapes to CDs, CDs to streaming, streaming to…it’s going to be something, right? We’re already about 15 years into the streaming experience, so this is when the next music experience is typically taking hold.
We’re also charging more because our services integrate with DJ software and hardware, and we also have offline mode. There’s a premium paid for these integrations. So, our average monthly revenue from our customers is probably almost double what it is from the Spotifys of the world. These two contributing factors result in a much higher payout rate per stream to our rights holders.
What can sectors outside of dance learn from Beatport’s approach, and how can the larger industry profit from Beatport’s success?
I’ve been asking everybody to change their definition of “dance music” to any music that makes people dance, because that’s 75% of the music industry. If you can dance to the music, then you can DJ with it. This is why we launched Beatsource for the open-format DJ community. I haven’t been to a wedding where I haven’t heard the DJ play “Come On Eileen”; the wedding DJ is our customer just as much as David Guetta and Tiësto.
Overall, we think other genres and their artists can benefit tremendously from the exposure that these DJs get them. If you DJ at a club in Vegas and play a new song, half the audience is examining the song and adding it to their Spotify or Apple playlist. Your revenue is amplified just because that DJ played your song.
What should the industry at large take away from the DJ’s role and how it relates to exposure?
It’s really important to realize the value that these DJs play in the overall music ecosystem and not treat them the same as any other customer. These are the most important customers in the music industry, in my opinion, and the DJ booth is the most valuable real estate in the music industry. The DJ booth is for profits, amplification and promotion. We need to make sure that as an industry, we’re serving this constituency correctly and delivering the types of products they need.
[At Beatport,] we’re constantly working with labels and publishers to clear derivative works, remixes, stems. We try to point out how important it is to the health of the overall music industry, and that this benefits them in a myriad of ways beyond just the download fee or the stream fee. There are a lot of positive benefits.
Singer-songwriter-actor Tim McGraw is expanding his business ventures with a new entertainment, media and marketing company called Down Home. The Nashville-based firm is a collaborative effort between McGraw, his management company EM.Co and social content studio Shareability.
EM.Co’s Brian Kaplan, also a co-founder of Down Home, will serve as chief strategy officer, while Shareability founder and Down Home co-founder Tim Staples will serve as CEO. The venture is aimed at connecting McGraw’s country music audience with Hollywood and brands by producing film, TV and digital media “that focuses on relatable stories that capture the essence and spirit of everyday Americans,” according to a press release.
Down Home has secured a private investment deal with Nashville-based TriScore Entertainment and The Laurel Group, a boutique merchant bank that continues to advise the company.
At launch, Down Home has an investment and first-look deal in place with Skydance Media. Under the agreement, Skydance will develop film and television projects with Down Home, in addition to channeling IP and other material to the company. Down Home currently has two scripted series in development with Skydance, with plans for additional features and animation. Skydance founder/CEO David Ellison will serve on the Down Home board.
Down Home additionally plans to establish a social content studio to nurture Nashville’s emerging talent, fostering connections across music, sports, entertainment and brands.
“Country music has always been about storytelling,” McGraw said in a statement. “Our stories are honest vignettes of life and family and community. I think there’s a longing for that. For me, that’s Down Home. That’s how I grew up, those are the stories I like to tell, and that’s what I want our company to be about.”
Ellison added, “Tim McGraw is an outstanding artist and entertainer. He is truly gifted at telling stories across mediums that deeply connect with the audience and has built an unmatched community of fans around the world. We are thrilled to partner with him, Tim Staples, Brian Kaplan, and everyone at Down Home as they have created a dedicated infrastructure to tell stories across film, TV, and music, to fulfill a massive demand for authentic, inspiring stories.”
“From 1883 to Friday Night Lights, or songs like ‘Humble and Kind’, Tim McGraw knows how to connect with this audience in a way that can be really powerful for both Hollywood and brands,” said Staples.
“We’re thrilled to be a part of the next chapter in Nashville’s evolution in empowering artists and visionaries to create a new hub for storytelling that combines talent, passion, and innovation,” Kaplan added.
McGraw was represented in the transaction by EM.Co’s Scott Siman and Kelly Clague. He continues his long-time affiliation with CAA.
The last time film and TV screenwriters went on strike, for a hundred days in the winter of 2007 and 2008, production on shows and movies abruptly shut down, advertising plunged and pink slips were passed out. Freelance music supervisors like Julie Glaze Houlihan, whose credits include Malcolm in the Middle and Roswell, also felt the pain.
“My husband and I both were independent music supervisors, so the money just fell. We struggled,” she recalls. “We had savings and we dipped into it. We had three small children. It was a difficult time.”
Unlike actors, directors, music editors and other unionized professionals who would still receive contractual benefits in the event of a strike, music supervisors are a largely freelance group of specialists who lack employer-provided healthcare, paid leave and safety protections. So the supervisors are more vulnerable than many of their colleagues if the Writers Guild of America follows through with a walkout when its members’ contract with studios and networks expires May 1.
“We all care about the writers getting a fair deal. We’re all in it together,” says Houlihan, who recently supervised music for Glass Onion and is working on upcoming ESPN and MGM+ docuseries. “But if they strike, it’ll affect all of us. Other people have some type of safety net and we have nothing.”
The Writers Guild unions, east and west, represent 11,000 movie and TV writers and began negotiations March 20 for a three-year contract with the Alliance of Motion Picture and Television Producers. Few expect a fast resolution over issues like higher compensation, more contributions to health and pension funds and improvements in workplace standards. Anticipating a strike, studios are rushing production schedules for existing shows.
A strike “would definitely be scary,” says Justin Kamps, who works on Grey’s Anatomy and Bridgerton. “If you can’t get the scripts written and the shows brought into post-(production), there’s not much you’re going to be doing as a supervisor. You’re going to be out of luck.”
A prolonged strike could narrow the opportunities for music synchs in shows and movies, which generated $318 million in 2022, or 2% of overall revenue, according to the Recording Industry Association of America. “The most obvious point is that if there is a strike, it’s going to put a hold on shows being put out, which means there’s no music being requested for shows,” says Sara Torres, synch and licensing supervisor for ASAP Clearances, which clears songs for TV.
Uncertainty has kicked in. “I’ve been meeting on a new project and they have been in a holding pattern, waiting to see what happens. They are not able to actually hire anybody until that is sorted out,” says Kier Lehman, a music supervisor whose recent works include Abbott Elementary and Spider-Man: Across the Spider-Verse. “Without having new things starting, it definitely would affect us and our income — if it goes on for a long time, I could see it having a big effect.”
Like everybody in Hollywood, music supervisors are scrambling to figure out where the money might come from in the event of a strike. Houlihan doubles as a music editor, an industry with its own unions, so she expects to receive certain benefits no matter what. Torres’ company emphasizes reality shows, which surged in the ratings during the last strike (including, notably, Donald Trump’s The Celebrity Apprentice); she suggests reality shows might temporarily dominate the synch business and indie artists might have more opportunities to place songs.
“People are always looking for music,” she says. “It’s just being able to pivot.”
Music supervisors are not unionized, but last October, a group of Netflix supervisors filed to certify their union with the National Labor Relations Board, seeking representation with the labor union the International Alliance of Theatrical Stage Employees, or IATSE. Netflix opposed the move and the NLRB’s decision is pending. (Netflix reps did not respond to inquiries.) If the board rules in the supervisors’ favor, they can negotiate a contract with the streaming giant — “which would make a great precedent,” says Lindsay Wolfington, a music supervisor for shows including Virgin River and The Venery of Samantha Bird and has been active in the Netflix unionization efforts.
Laura Webb, who frequently works with Wolfington, says the supervisors want more reliable payment deliveries, cost-of-living increases and healthcare and retirement and pension plans — as opposed to relying on the gig economy. “We’re not paid by the studios that would allow us to have the same safety net that most employees get,” adds Joel High, president of the Guild of Music Supervisors. “We don’t have health insurance through anybody. We don’t have a 401(k). We’re basically left to our own devices, working from show to show and studio to studio.”
Supervisors say they’ll keep working on shows after writers have finished their work. “Most of our job is post-production, so hopefully things don’t change that much,” says Webb, who works on Wolf Pack, Monster High the Movie Sequel and others. Adds Lehman: “If there was a show that was already written, and just being finished, that becomes the complicated issue.”
For now, music supervisors remain hopeful the writers and studios will come to an agreement and avoid a strike, even as unionization is gathering momentum in the U.S., with workers from Amazon to YouTube Music filing for certification. “If there’s an atmosphere to strike in, it would be now,” Houlihan says. “Go, writers! I hope they don’t have to strike.”
Latin music revenues in the United States hit an all-time high last year, exceeding the $1 billion mark on the wings of 24% growth that outpaced the overall market.
According to the RIAA’s year-end Latin music report for 2022, total revenue jumped from $881 million in 2021 to $1.1 billion in 2022, with Latin music’s overall share of the total music market lifting from 5.9% in 2021 to 6.9%.
“Latin music revenues in 2022 exceeded $1 billion for the first time and grew significantly faster than the broader industry. That sustained expansion speaks to an openness to new artists, music and ways of listening,” says RIAA senior VP, state public policy & industry relations Rafael Fernandez Jr.
Months earlier, the RIAA’s mid year report had already suggested that Latin music revenues would reach a new peak, driven by the success not only of Bad Bunny — who ended the year as the most streamed artist in the U.S. and around the world — but also a cadre of other artists who have had major streaming success, including Rosalía, Karol G and Rauw Alejandro.
Streaming makes up a stunning 97% of Latin music revenue, accounting for more than $1 billion. Within that, paid subscriptions were the biggest growth driver, contributing 71% of streaming revenues and posting revenue growth of 29% to $758 million.
Another major contributor to growth was ad-supported on-demand streams (from services like YouTube, Vevo and the free version of Spotify), underscoring how important video is to the Latin fan. Revenue from this space grew 24% to $230 million, a 21% share of total Latin music revenues, over-indexing compared to the 11% average of the overall market.
Conversely, revenue from digital services like Pandora and SiriusXM decreased 5% to $73 million, making up 7% of streaming revenues. Permanent downloads also fell 15% to $11.7 million. They now make up only 1% of revenue.
And while physical sales remain a tiny percentage of revenue – less than 1% – they are growing. CD revenues were up 60% to $3.1 million and vinyl grew 67% to $9.1 million, signaling a fresh area of growth potential for Latin music.
This is Signed, a new biweekly column that rounds up artist signings at labels, agencies, management companies and more.
Paris Hilton signed with management company YMU, where she will be represented under the recently formed FM Group banner — a new division of YMU Music led by FM president Alex Frankel and FM COO Chris Maher. The company will work with Hilton on her music business globally, including a new album that will mark her first since 2006’s Paris.
Japanese composer Joe Hisaishi, best known for his decades-long collaboration with legendary Studio Ghibli director Hayao Miyazaki, signed with Deutsche Grammophon. The deal encompasses the full scope of Hisaishi’s career as composer, conductor and pianist. His first album on the label — A Symphonic Celebration, slated for release on June 30 — contains symphonic arrangements of his original soundtracks for Studio Ghibli films including Spirited Away, Princess Mononoke and My Neighbor Totoro. All tracks on the album were recorded in London by the Royal Philharmonic Orchestra, conducted by Hisaishi.
Stockholm-based artist Waterbaby signed to Sub Pop Records globally. On March 29, she released her new single, “Airforce blue,” on the label. She is represented by managers Phil Jones and MNRK in the United Kingdom and Johan Calissendorff in Sweden as well as agent Tom Windish at Wasserman.
Nashville indie-pop singer-songwriter MORGXN signed to Nettwerk, which will release his new single, “Beacon,” on Friday. He is managed by Ron Shapiro.
MNJR, a new full-service artist and label management group launched in Nashville by Mike Reynolds and Norman Jacob, signed country band The Mavericks as well as the group’s frontman, Raul Malo, for his solo projects. Also signing with the company are alt-country group 49 Winchester and emerging artist McKinley James. The Mavericks and Malo release music through their own imprint, Mono Mundo Recordings, in partnership with Thirty Tigers; they’re booked by Clint Wiley at CAA in the United States, Nick Meinema at AEC in Canada and Nigel Hassler at CAA in other territories. 49 Winchester are on New West Records and represented by Jacob Lapidus and Will Scott at CAA for the United States and Lizzie Ford at CAA internationally. James is represented by Clint Wiley at CAA in the United States, Tom Brandt at Brando Bookings for the United Kingdom and Europe and Juan Diego at El Mico Entertainment for Spain.
Appalachian country-folk singer-songwriter Charles Wesley Godwin signed with Big Loud Records. Godwin is managed by Arthur Penhallow Jr. and Reed Turner at True Grit Management.
Producer-artist Michaël Brun (J Balvin, Ed Sheeran) signed to Astralwerks, which recently released his song “Clueless” featuring Oxlade; more music is on the way in 2023. Brun is represented by manager Ardie Farhadieh at LoyalT Management and agent Scott Schreiber at UTA.
Brazilian singer-songwriter Any Gabrielly signed to Republic Records. Formerly a member of the Simon Fuller-assembled pop group Now United, Gabrielly is managed by Fuller at XIX Entertainment.
Moroccan-American singer-songwriter Dounia signed a global distribution deal with ADA Worldwide and will soon begin releasing new singles. She is managed by Matt Geffen, Jamil Davis and Matt Bauerschmidt at The Revels Group, Carron Mitchell at Nixon Peadoby and Julie Greenberg at CAA.
“Zamrock” legends WITCH signed with Desert Daze Sound, a new record label launched by Southern California music festival Desert Daze in partnership with Partisan Records. The label will release Zango, the group’s first album in nearly 40 years, on June 2. WITCH is represented by manager Gio Arlotta and agents Joey Massa at Space Agency in the United States and Polly Miles at FMLY Agency in the United Kingdom and Europe.
TAG Music, a new record label founded by artist-turned-executive Gabe Saporta (Cobra Starship, Midtown), signed Los Angeles-based singer Sophie Powers and emo alt-rock artist Jules Is Dead under a joint venture deal with Atlantic Records. The label released Powers’ new single “Nosebleed” on March 31 and will release Jules Is Dead’s single “Red is My Favorite Color” later this month.
ONErpm Nashville announced a pair of signings: country singer-songwriter William Michael Morgan (“I Met a Girl”), who will release his Keith Stegall-produced EP on the label later this year; and singer-songwriter (and former The Voice contestant) Jesslee, whose debut single, “Unmet You,” is out now. Morgan is managed by Joe Carter and Mike Taliaferro at Carter and Company while his booking is handled by The Kinkead Entertainment Agency; Jesslee is represented by Black Label Nash Entertainment Group for both management and booking.
Hannah Georgas signed to Lucy Rose‘s Real Kind Records, which released her latest single, “This Too Shall Pass.” Georgas is managed by Jen Long, while her booking is handled by Todd Walker at Outer/Most in the United States, Julien Paquin at Paquin Agency in Canada and Colin Keenan at ATC Live in the rest of Europe.
Husband-and-wife country duo The Dryes — comprised of Katelyn and Derek Drye — signed with Wasserman Music for global representation. Formerly contestants on The Voice, the duo is managed by Carrie Lelwica.
Country singer Georgette Jones — daughter of country legends George Jones and Tammy Wynette — signed an artist management deal with Dr. Gerald Murray at Gerald Murray Music; Murray previously managed her father. Jones also signed with PLA Media for public relations.
African producer Dr. Wang signed with independent label KSR Group, which will release his new single, “Love Takes Me Higher” with Josh X, on April 21. Hailing from the Ivory Coast, Wang has produced for artists including Yannick Noah and Aya Nakamura.