Business News
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Boosted by K-pop’s growing popularity and artists’ return to concert stages, the four publicly traded South Korean music companies — HYBE, SM Entertainment, YG Entertainment and JYP Entertainment — posted average revenue growth of 71% in the second quarter of 2023, according to Billboard’s analysis of their recent earnings reports.
Sky-high growth rates in recent quarters have helped make the K-pop companies a wise investment in 2023: Through Wednesday (Aug. 16), the four share prices increased an average of 63.6% year to date, adding more than $4.7 billion in market capitalization cumulatively to the companies’ stocks. In contrast, stocks of the two largest standalone music companies, Universal Music Group and Warner Music Group, have gained 3.6% and lost 6%, respectively, year-to-date through Tuesday (Aug. 15).
In terms of revenue growth, the leader in the second quarter was JYP Entertainment, home to the groups Stray Kids and Twice. JYP’s revenue grew 124% to 151.7 billion won ($115.2 million), with new albums by Stray Kids, Twice and NMixx driving a 298% increase in physical sales to 74.1 billion won ($56.3 million). Republic Records, JYP’s partner in the United States, accounted for 14.5 billion won ($11 million) of physical sales, or about 20% of the total amount. Elsewhere, JYP’s concert revenue grew 44% year-over-year to a record 14.4 billion won ($10.9 million) while merchandise sales climbed 151% to 21.7 billion won ($16.5 million). Domestic streaming revenue grew 18% to 2.2 billion won ($1.7 million) while overseas streaming revenue jumped 82% to 10.3 billion won ($7.8 million).
YG Entertainment boasts the greatest share price gain among the group at 75.6% year to date. The company behind breakthrough girl group BLACKPINK, YG posted revenue of 158.3 billion won ($120.2 million) in the second quarter, up 108% from the prior-year period.
JYP Entertainment’s operating income grew 88% to 45.6 billion won ($34.6 million) but missed its 51-billion won estimate, causing the company’s share price to fall 8.2% the following day. Although its revenue grew 124% in the quarter, JYP was hurt by what it called a “temporary increase in content product costs.” As a result, its cost of goods sold rose 162% while gross margin percentage — gross profit as a percent of sales — declined 1.6 percentage points to 47.7%.
Expenses also grew faster than revenue at HYBE, where cost of sales grew 25% while sales, general and administrative expenses climbed 32%. HYBE’s operating profit declined 8% as a result, while net income improved 19% despite a 21% growth in revenue. HYBE’s share price declined just 0.9% the day after the results were released; with a 38.9% gain year-to-date, its stock boasts the lowest appreciation of the four K-pop companies.
Tencent Music Entertainment Group’s (TME) quarterly net profit surged by more than 50% for the quarter ending in June on the strength of its online music business, sending its stock up 5% in mid-day trading on Wednesday.
Net profit for TME’s second quarter was RMB1.30 billion ($179 million), up 51.6% from second quarter last year, the Chinese company reported on Tuesday. Total revenues rose 5.5% to RMB7.29 billion ($1.01 billion) in the quarter ending June 30, as a more paying subscribers helped the online music business contribute more than half of TME’s earnings for the first time since the company’s launch in 2016.
TME is growing increasingly focused on its music business, and its company promotions which resulted in a record high of 99.4 million paying users this quarter, are paying off, executives say.
“As we continue driving the healthy development of China’s online music industry, we have seen users become increasingly accustomed and willing to pay for copyrighted music, whether for songs they want to listen to or for premium listening features they enjoy,” TME executive chairman Cussion Pang said on Tuesday. “This marks a significant step along TME’s growth trajectory.”
Quarterly revenue from online music services jumped nearly 50% to RMB4.25 billion (US$586 million) on strong music subscription revenue growth and advertising services and contributed more than 58% of the company’s total revenues.
The number of monthly active users for online music fell nearly 5% to 594 million in the second quarter this year from 623 million in the year-ago quarter, but the number of paying online music users rose more than 20% to 99.4 million from 82.7 million a year ago.
Revenues from music subscriptions grew 37% to RMB2.89 billion ($399 million).
TME’s social entertainment business, which it has de-emphasized for the last several quarters in a row, saw mobile monthly active users fall 18% to 136 million from 166 million, while paying social entertainment users also declined 5% to 7.5 from 7.9.
Monthly average revenue per paying user (ARPPU) rose 14% to RMB9.7 ($1.33) for online music, while monthly ARPPU for social entertainment declined 20% to RMB135 ($18.50).
Tencent Music executives said they are in the process of deploying several service enhancement and risk control measures that will promote music-centric live streaming, which they expect to put pressure on TME’s social entertainment services revenues throughout the rest of 2023.
“TME remains confident about delivering year-over-year net profit growth for 2023, driven by the continued strong performance of online music services, laying a much more solid foundation for the company’s healthy and resilient development in the long run,” a spokesperson said.
Damien Scott has been named Billboard‘s new deputy editorial director, the music media brand announced Monday (Aug. 14). In his New York-based role, Scott will work to expand Billboard’s audience through news coverage, video, social content, live events and more, all with a special focus on hip-hop and R&B. “We are so happy to have […]
Rock-country artist Riley Thomas has signed with Elektra/DBLBLK Records, which will release his new single, “I’ll Be Damned,” on Friday (Aug. 18). Thomas scored a sleeper success with his debut single, “Cowboys Did Cocaine,” which has racked up nearly 14 million streams on Spotify since its release in June.
“I’ve had the pleasure of knowing and watching Riley develop as both a writer and artist for years,” said DBLBLK Records founder Jameson Roper in a statement. “It’s always been a question of when — not if — his moment would arrive. I am beyond thrilled to lock arms with my true partners at Elektra. They have always identified great music and supported our artists fully. For Riley, the music may be dark, but the future is bright.”
Thomas added, “As an artist focused on the reach of my music, I knew I wanted to be with Elektra after meeting the team. I’ve long admired Gregg Nadel, Johnny Minardi, and the staff’s ability to develop and sustain career artists. Moreover, their respect for good music and commitment to fostering growth gave me confidence that this is the place for me. With the addition of a tenacious Jameson Roper and DBLBK, I’m looking forward to a long ride with this family.”
Thomas is managed by Mike Easterlin at Glen West Entertainment and Jameson Roper at DBLBLK Management. His booking agent is Nate Towne at WME.
Daughtry signed with Big Machine Records, which released the band’s latest single, “Artificial,” on Aug. 11. Fronted by Chris Daughtry, the band has released a total of six albums to date.
Country singer-songwriter Walker Hayes announced a new partnership with Monument Records and RCA Records. Under the deal, Hayes recently released a new two-track bundle titled Strait Two Stepping featuring “Stetson” and “Show Me The Country.” Hayes is managed by Robert Carlton at SMACKSongs and represented by Aaron Tannenbaum at WME.
Nashville-based alternative singer-songwriter Max Frost signed to Nettwerk, which will release his new single, “Creep Back,” on Friday (Aug. 18.) Frost is represented by Ron Shapiro and Joe Hegleman at Have Fun Management and Marsh Vlasic and Craig Bruck at IAG for booking. He was formerly signed to Atlantic Records.
CMW Entertainment struck a partnership with Sony Music’s AWAL Recordings for CMW’s flagship artist, Mudrigo, whose latest single, “UH HUH,” was released under the pact on Aug. 2. The companies will collaborate to support Mudrigo with a full suite of services globally; AWAL will support his development by offering services including A&R, global marketing, creative, synch, brand partnerships, distribution and access to real-time analytics.
Mette signed to Since ’93 and RCA Records in the United States. The labels will release her upcoming EP, METTENARRATIVE, on Sept. 22, preceded by Mette’s new single, “VAN GOGH.” She is managed by Caron Veazey at ThreeSix Zero; booking is handled by Mary Hannon and Craig D’Souza at WME for the United States and United Kingdom, respectively.
SMACK has launched SMACKRecords, adding a label branch to the company and announcing its first signing, singer-songwriter-actress Jenna Davis. SMACKRecords marks the fourth enterprise to launch under SMACK, following publishing company SMACKSongs, SMACKManagement (which reps Walker Hayes and Kylie Morgan) and digital marketing company SMACKTok. Davis will also be represented by Marissa Turk at SMACKManagement. Her debut single, “DiCaprio,” was co-written by Hayes, Kelsea Ballerini and Ross Copperman. Davis also recently voiced the main character in the horror-thriller M3GAN. – Jessica Nicholson
Rock band Sheer Mag signed with Third Man Records, marking the group’s first partnership with a larger independent label. Under the deal, Third Man will physically and digitally re-release Sheer Mag’s entire back catalog — including EPs I, II and III as well as albums Need To Feel Your Love and A Distant Call — on Oct. 27. Third Man just released the band’s latest single, “All Lined Up.” Sheer Mag is represented by manager Mike Sneeringer at Another Management Company and booking agent Timmy Hefner at Ground Control Touring.
Country duo Neon Union signed with CAA. The duo, which has played over 50 tour dates so far this year, is signed to Red Street Records and managed by Tristan Kirkbride.
Country singer-songwriter Annie Bosko signed a joint-venture management deal with Randy Bernard and Brown Sellers Brown (BSB) Management; she will be represented at the latter by Benny Brown, Jason Sellers and Angela Wheeler. Bosko also signed a label deal with Brown’s Stone Country Records and is now represented by CAA for booking.
Emerging country singer-songwriter Eli Winders signed to Atlantic Records/Bad Realm Records, which released his debut single, “Pack My Hometown,” on Friday (Aug. 11). He is managed by Layne Lindroth at C3.
Morgan Myles, the country singer-songwriter who was formerly a contestant on The Voice, signed with KZZ Music/Blue Élan, which released her new single, “Vertigo,” on Aug. 8. She’s represented by manager Ann Henningsen and booking agents Jennifer Hludzik at APA and Jared Caleb.
Singer-songwriter Rissi Palmer signed with New York-based management/distribution/merchandising company Invasion Merch and has signed a new contract with talent and literary agency Paladin Artists. Palmer recently earned two Grammy nominations and hosts the Apple Music show Color Me Country with Rissi Palmer. Earlier this year, Palmer’s Still Here documentary film was featured on PBS’ American Masters: In the Making series. – Jessica Nicholson
Singer-songwriter Ryan Larkins signed with CAA, where he will be represented by Marc Dennis. Larkins previously signed with Red Street Records, which released his debut songs as an artist — “Man That Holds the Beer” and “She’s the Tough One” — on Friday (Aug. 11).
The BBC’s historic Maida Vale Studios has been sold to a business partnership headed by Oscar-winning composer Hans Zimmer and film producers Tim Bevan and Eric Fellner, the British broadcaster announced Monday (Aug. 14).
The famous London facility has been used for music recording since the 1930s and has played host to everyone from Adele to David Bowie to The Beatles throughout its storied history. The BBC first announced its plans to close the building and relocate to a new purpose-built music base in 2018, although Maida Vale Studios was only officially put up for sale by the broadcaster in November.
The new owners, which also includes Zimmer’s business partner, Steven Kofsky, have said that the Grade II listed building — originally a roller-skating palace — will continue to operate as a music hub and will undergo a multi-million-pound refurbishment to create a “world-class studio space for the next generation of composers, producers, editors and engineers.”
Terms were not disclosed for the deal, but last year it was reported that the studios were being advertised on the property market for offers above £10.5 million ($13.3 million). According to Sky News, a rival business consortium that included Warner Music Group controlling shareholder Len Blavatnik and film producer Matthew Vaughn also made an offer to buy the studios but was rejected.
Zimmer, Bevan, Fellner and Kofsky said they will also establish a not-for-profit education facility at Maida Vale Studios that will provide jobs and opportunities for the local community.
In announcing the sale, the BBC’s director of music, Lorna Clarke, paid tribute to the important role the venue has played in British popular culture. “We are so pleased to secure a sale which looks to continue the bright, vibrant future of music-making in this iconic building,” she said in a statement.
Zimmer recalled the first time he worked for the BBC at the complex 45 years ago. “I still remember the strong pull, the desire to touch the walls, as if that would somehow allow me to connect to the artists whose extraordinary music had resonated against these walls on a daily basis,” said the composer.
Zimmer went on to say that he now wants to “close the circle” and make the facility an inspirational place “that gives the next generation the same opportunities I was given: to create and to never give up.”
Bevan and Fellner, co-chairmen of London-based film production company Working Title, called the acquisition a “once-in-a-lifetime project” that will continue the BBC’s legacy by attracting global talent to the United Kingdom.
In addition to playing host to a wealth of rock and pop stars over the years — a long list that also includes Led Zeppelin, Dusty Springfield, Beyoncé and Bing Crosby, who made this final recording there in 1977 just days before he died — Maida Vale studios was previously home to the BBC’s pioneering Radiophonic Workshop.
At present, the facility is home to the BBC Symphony Orchestra and is regularly used to record a large number of music and drama sessions broadcast across the BBC’s radio and online network. The BBC says it has agreed to lease back the building from the new owners and will continue to use the studios until it moves to a new studio complex, which is currently under construction in East London and due to open in late 2025.
Warner Music Group’s share price didn’t improve much this week, but its 5.6% gain nevertheless led the 21 music stocks in the Billboard Global Music Index.
On Tuesday (Aug. 8), Warner Music Group (WMG) reported that its quarterly revenue increased 9% year over year in the fiscal quarter ended June 30. That was music to investors’ ears after WMG’s revenue grew just 1.7% in the previous quarter, but it wasn’t exactly a surprise: WMG executives had previously told investors that the company’s new release schedule was weighted in the back half of its fiscal year and that its financials would pick up accordingly. And a Billboard analysis of Luminate data found that the company’s U.S. market share had started to improve by early May.
Only four of the Billboard Global Music Index’s 21 stocks finished the week in positive territory. Sphere Entertainment Co., the company behind the state-of-the-art Las Vegas venue set to open in September, improved 5.5% to $39.77 and German promoter CTS Eventim gained 4.8% to 61.80 euros ($67.76). Elsewhere, Hipgnosis Songs Fund rose 3.9% to 79.8 pence ($1.01).
This was the third consecutive week the index declined in value after reaching an all-time high in the week ended July 21.
LiveOne shares dropped 4% this week despite the company raising guidance on its fiscal 2024 revenue and adjusted EBITDA. In the fiscal quarter ended June 30, the company — which is behind music streaming platform Slacker and podcast brand PodcastOne — posted revenue of $25.7 million, up 24% year over year, and adjusted EBITDA of $4.9 million, up 46% year over year.
iHeartMedia shares fell 24.9% to $3.38 this week after the company warned of continued softness in advertising. The U.S. radio giant posted second quarter revenue of $920 million, down 3.6% year over year. Other radio companies also declined. Cumulus Media fell 5.9% to $4.96, while Townsquare Media — not a member of the Billboard Global Music Index — fell 19.7% on Wednesday following the company’s second-quarter earnings results but recaptured some of the losses on Thursday and Friday to finish the week down 7.2% at $10.50.
French streaming company Deezer fell 9.4% to 2.12 euros ($2.32) this week and has lost 16% since reporting mid-year earnings on Aug. 3. The company lowered its forecast for full-year revenue growth slightly to a range of 7% to 10%, down from a more than 10% increase. Although the company’s decision to raise its price in 2022 helped its average revenue per user to increase 8.3%, its subscribers declined by 100,000 to 9.3 million from the prior-year period.
In related news, Disney shares rose 4.9% after the company’s second quarter beat earnings expectations, even as it revealed that its Disney+ subscriber count fell 7.4% to 146.1 million in the second quarter. Starting in October, Disney will raise the prices for both ad-free and ad-supported tiers of Disney+ and Hulu by at least 20%. Following the price increases, ad-free Disney+ will cost $13.99 per month and ad-free Hulu will cost $17.99 per month.
Music services have been far more hesitant than streaming video-on-demand services to raise prices. Spotify just increased its individual plan price in the United States — by $1 to $10.99 — for the first time since launching in 2011. By contrast, Hulu last raised its prices in October 2022 and has increased its the price of its ad-free tier by 39% in less than a year.
Music stocks’ decline mirrored stocks’ broad declines this week. In the United States, the S&P 500 and the Nasdaq composite fell 0.3% and 1.9%, respectively. In the United Kingdom, the FTSE 100 was down 0.5%. South Korea’s KOSPI composite index declined 0.4%. News that the U.S. producer price index, a gauge of wholesale prices, rose 3% in July — the biggest one-month gain since January — was a factor in U.S. stock prices falling Friday.
Universal Music Singapore hired Alice Kent as general manager, overseeing day-to-day operations and spearheading efforts to up the UMG division’s presence in the Southeast Asian island country. She reports to UMG chief of South East Asia Calvin Wong, who says Kent “brings with her a pioneering spirit and a wealth of experience from her decades of working in the music and entertainment industry” — including a recent stretch as marketing, partnerships and business development director at Live Nation Entertainment Singapore, and before that senior roles at both Warner Music and Sony Music. Among the many feathers in Kent’s cap include securing sponsorship deals for Blackpink and brokering partnerships with Singtel and PayPal, in addition to working with Billie Eilish and the Singapore Tourism Board.
Alexander Vazelakis was named head of A&R for longstanding dance imprint Ultra Records. This is Vazelakis’ return to the label, where he previously spent nearly a decade working with artists including Sofi Tukker, Icona Pop, Steve Aoki, Anabel Englund and DVBBS. Based in Los Angeles, Vazelakis most recently served as VP of A&R at both Helix Records and Ultra Publishing and now reports to Ultra Records President David Waxman. –Katie Bain
SiriusXM promoted longtime executive Jen Leiweke to vice president of artist and industry relations. Previously a senior director on the talent and industry relations team, Leiweke joined Pandora in late 2010 and has worked across marketing, brand partnerships, live and experiential. In the past year, Leiweke helped develop a major sponsorship framework with American Express around SiriusXM’s Small Stage Series, which has featured performances from John Legend at The Wiltern in Los Angeles and Halsey at Union Transfer in Philly, among others. She also helped launch SiriusXM’s first foray at Miami Art Basel along with partner Chase Sapphire. Prior to joining Pandora, which was acquired by SiriusXM in 2019, Leiweke held positions at Alison Prod Public Relations and AEG.
Marigo Mihalos was also promoted to vice president at SiriusXM, where she oversees the entertainment booking team specializing in film, TV, and lifestyle. Before joining the satellite radio giant, Mihalos launched her own PR agency and later solidified her reputation as a booker on television shows like The Wendy Williams Show and Who Want to Be a Millionaire. Her best-of list of wins at SiriusXM include snagging the entire cast of Elvis for a Graceland appearance and orchestrating a collaboration between Bravo host-with-the-most Andy Cohen and icon-of-icons Dolly Parton at Dollywood. She can be reached at Marigo.mihalos@siriusxm.com.
Nashville-based publishing and artist development company Back Blocks Music expanded its team, adding Autumn Ledgin as senior director of A&R and Elizabeth Cook as creative coordinator. Back Blocks Music was founded by Billboard Power Player and 40 Under 40 recipient Rakiyah Marshall, with a roster including Ashley Cooke, Lily Rose, Blake Pendergrass and Tucker Wetmore. Ledgin previously worked at Good Company Entertainment, as day-to-day manager for the company’s roster, including Jake Owen and Larry Fleet, before adding A&R duties and becoming a board member and planning coordinator for the Jake Owen Foundation. Cook joins Back Blocks Music during her senior year at Belmont University as a songwriting major; she previously interned at Creative Nation and King Pen. –Jessica Nicholson
Believe-owned TuneCore appointed Tash Shah as its new vice president of International at the digital music distributor. Shah is a 12-year veteran at Spotify, where she served as the streaming giant’s first head of marketing in the UK and most recently held the title of director of growth programs. At her new gig, which is based in London, she’ll drive TuneCore’s international growth into new global markets oversee a team across 17 countries, while developing programs to benefit TuneCore’s growing roster of artists and labels. Shah will eventually report to TuneCore’s TBA chief revenue officer, but in the interim will work directly with CEO Andreea Gleeson.
Songtradr appointed Paul Langworthy to chief revenue officer of the music licensing marketplace and distribution platform. Reporting directly to CEO Paul Wiltshire, Langworthy’s focuses will include expanding licensing, music management, and creative branding opportunities, as well as continuing expansion into markets where music rights management remains under-monetized. Langworthy was previously CEO of U.K. digital music company 7digital, which Songtradr scooped up earlier this year for roughly $23 million. At the time of the acquisition, it was announced that Langworthy and the bulk of 7digital’s senior leadership team would join Songtradr. “Paul has a proven track record of successfully managing large teams, multiple revenue streams and has a deep understanding of the complex music rights ecosystem we work in,” said Wiltshire.
ICYMI: Tom Becci joined Concord Label Group as chief executive … peermusic appointed Elizabeth Rodda as president of Latin America and global society relations … About sixty employees are set to be impacted by layoffs at CAA … and Quality Control CEO Pierre “P” Thomas won Billboard’s R&B/Hip-Hop Power Players’ Choice Award.
A2IM hired Melissa White as director of membership and Jasmine Lopez-Alvarez as marketing manager of the independent music advocacy group. In their new roles, White will oversee A2IM’s label relations and membership engagement strategy, while Lopez-Alvarez will manage marketing initiatives and spearhead membership growth. White arrives from sample marketplace Tracklib, where she rose to music catalog director; Lopez-Alvarez has clocked time at SiriusXM, Maruder and HIFI. “Their experience and passion for independent music will play a crucial role in developing our reach and furthering our mission,” said Richard James Burgess, CEO of A2IM. You can reach the pair at melissa@a2im.org and/or jasmine@a2im.org.
Industry veteran Nathalie Rubin joined PR collective Hustle&Co. as account supervisor. Based in Los Angeles and reporting to founder and CEO Jenn DeMartino Callister, Rubin’s remit will center around driving campaigns for clients including music investment firm Influence Media Partners, destination experience company Vibee and something called Spotify (specifically its EQUAL and GLOW programs). Prior to joining Hustle, Rubin served as publicity manager at Elektra Entertainment, acing press campaigns for the label group’s artist roster found on Fueled by Ramen, DTA Records and the mothership imprint. She kicked off her career with a five-year stretch at BMG Recorded Music, where as in-house publicist she worked directly with a murderer’s row of rock favorites including Evanescence, Thrice, Black Rebel Motorcycle Club and My Chemical Romance’s Frank Iero. She can be reached at Nathalie_Rubin@hustleandco.com.
The Black Music Action Coalition (BMAC), a non-profit organization founded in 2020 to combat systemic racism in the music business, added rapper-activist Cordae and Live Nation Urban president Shawn Gee to its Executive Leadership Council. Cordae and Shawn Gee, who received the Social Impact Award at BMAC’s inaugural annual gala, join a growing list of industry leaders on the ELC, including Dina LaPolt, Wassim “Sal” Slaiby, Jonathan Azu, Tariq Cherif and Jeff Azoff, among others. See a full list here.
VRTCL, a content management and influencer marketing agency, promoted Imani “Mango” Lewis to director of music and Jenn Rilloraza to director of brands and content. In their new roles, Lewis will lead overall strategy and operation of the music and social teams, while Rilloraza will continue working with her team to develop authentic content on behalf of some of the world’s biggest brands. Both report to FH Media CEO, Ash Stahl, who says they “have a proven history of working closely with artist and commercial brands to amplify their messages in ways that are completely authentic.” VRTCL was acquired by Create Music Group in early 2022 and folded into an FH Media roster that also includes influencer brands Flighthouse, Teenager Therapy and Retirement House.
Nashville Notes: Musicians On Call, a Nashville-based nonprofit that brings live and recorded music to the bedsides of patients in healthcare facilities, announced a series of promotions and new hires. Promotions include Kat Weeks to vp of marketing, Torianne Valdez to senior talent manager and PJ Cowan and Caroline Love to senior program managers. New hires include Orenda Senior as program coordinator and Sasha Arnkoff as executive assistant … Triple Tigers hired Nashville-based Blake Nixon as director of Southeast promotion. He previously held a similar role at Show Dog Nashville … Shelby Yoder founded songwriter/producer management company willo&co. She was previously head of Milk & Honey Nashville.
Amid a production halt during a double strike, major talent agency CAA is undergoing a round of layoffs.
About sixty employees are set to be impacted — including agents, executives and support staff — within the next week, a source tells The Hollywood Reporter. The figure is a relatively small percentage of the thousands of staffers that work at the Century City-based representation giant led by Kevin Huvane, Richard Lovett and Bryan Lourd.
Multiple departments had been evaluating staffing levels even prior to when the Writers Guild of America strike began on May 2. When performer’s union SAG-AFTRA joined the strike on July 13, Hollywood settled in to a long summer as the dealmaking ecosystem ground to a halt.
Several talent agencies have cut staff in the ensuing months as the guilds faced off with the Alliance of Motion Picture and Television Producers, which bargains on behalf of studios. For instance, Endeavor, the owner of fellow “Big 3” agency WME and fashion-focused IMG, estimated on August 8 that the impact of the actors’ and writers’ strikes would be about $25 million per month in revenue.
Talent and literary agency Verve, which reps many scribes, cut about 60 percent of its assistants and 3 agents in late May. And Big 3 firm UTA had already made a round of cuts, which it described as a single digit percentage of a workforce that totals 2,000 employees, in February.
Hollywood’s agencies went through retrenchment and conducted notable layoffs or furloughs during the COVID-19 shutdowns in the middle of 2020, also at a time of a widespread production halt. At that time, in July 2020, CAA said it cut 90 agents and executives and further furloughed 275 assistants and other staffers.
Since that time, CAA made the most consequential move in the Hollywood talent agency space, acquiring rival firm ICM in a megadeal that closed last June and added 425 of its employees to the payroll, with 105 staffers cut. At the time, the combined company was said to have 3,200 employees in 25 countries.
Deadline earlier reported CAA’s planned cuts on Thursday.
This article was originally published by THR.com.
Amazon Music reached a new merchandise integration with concert-discovery platform Bandsintown that will allow fans across the globe to shop merch items from artists while browsing their artist profile pages on the Bandsintown website and app. Under the integration, more than 590,000 registered artists on Bandsintown for Artists will be able to promote their merch and physical music releases to their Bandsintown followers and the followers of similar artists through in-app notifications, email and social channels. The merch available on Bandsintown will be drawn from the Amazon Music Artist Merch Shop on Amazon.com, developed and curated by the Amazon Music team.
Oliver Chastan‘s artist and brand development company Iconoclast acquired the producer royalties of composer, songwriter and producer Giorgio Moroder. The company will additionally work with Moroder on the development of his name, image and likeness rights. Over the course of his career, Moroder has collaborated with artists including Berlin (“Take My Breath Away”), Donna Summer (“I Feel Love”, and Blondie (“Call Me”). His work as a film composer includes scores and songs for Midnight Express, Top Gun, Scarface and Flashdance.
CTS Eventim increased its stake in France Billet from 48% to 65%, making it the majority owner of the French ticketing company. CTS Eventim acquired the 48% stake in France Billet back in 2019 — a deal that included an option to acquire a majority stake in the company this year.
Reactional Music, the maker of an interactive music engine for video games, reached a global partnership with Southeast Asian games publisher Amanotes, whose games attract more than 100 million monthly active users, according to a press release. The deal will allow Amanotes gamers to personalize their personas and gameplay with their favorite music while also allowing Amanote to tap into a faster and more efficient method to create and prototype music in its games.
Toyota is now the name-in-title sponsor of the Concord Pavilion in Concord, Calif., which will now be known as Toyota Pavilion at Concord. The move is sponsored by the Northern California Toyota Dealers Association, which is composed of 58 local Toyota dealers operating in the region. Upcoming shows at the venue in 2023 include Sting, Snoop Dogg, Jelly Roll, Culture Club and Beck.
PRS for Music and PPL announced a new partnership with music technology company Audoo. Under the deal, Audoo’s Audoo Audio Meters — which aim to ensure “accurate and transparent” royalty distribution to music creators by identifying background music being played in businesses, according to a press release — will be installed in businesses including cafes, bars, hair salons, restaurants and retail establishments across the United Kingdom, with usage data reported back to PRS and PPL.
Live Nation signed a multi-year partnership with Montana-based promoter Logjam Presents. Under the agreement, Live Nation will invest in Logjam, of which the Checota family will retain ownership and continue to manage day-to-day operations for. “Out of state national and regional promoters are already actively promoting in venues around the state. This new partnership will allow Logjam to remain competitive as a Montana-based promoter and will retain our event booking, marketing, management and, most importantly, 100 percent of our staff locally,” said Logjam president Nick Checota in a statement. “Our new partnership will also provide Logjam access to an incredible artist network and will provide additional capital to improve existing venues and explore opportunities in other Montana regions.”
Desertscene and Old Empire, both independent heavy music promoters, announced a partnership “merging our distinct styles and unyielding passion for live music,” according to a statement by Old Empire founder Josh Retallick. Based in the United Kingdom, Old Empire promotes artists including Heilung, Chelsea Wolf, SUNN O))) and Electric Wizard. Desertscene books and promotes Desertfest festivals in London, New York and Berlin as well as in Antwerp, Belgium and Oslo, Norway.
Universal Music Group’s music merchandise and brand management company Bravado partnered with brand licensing and extension agency Redibra as its official licensing agent in Brazil. “We are thrilled to have the opportunity to create incredible products and experiences for the dedicated music fan community in Brazil,” said Redibra CEO David Diesendruck in a statement.
Under a new partnership, Primary Wave Music, Sun Records and TC Restaurant Group will expand Nashville’s music-themed eatery Sun Diner — inspired by Sun Records artists like Elvis Presley and Johnny Cash — to additional locations across the United States; a second location opened Aug. 3 in Gatlinburg, Tenn. Primary Wave acquired the rights to Sun Records in 2021.
For roughly half a century, John Fogerty had tried to recover the rights to dozens of hits he wrote for Creedence Clearwater Revival. At the age of 77, he had almost given up hope, when he and his wife, Julie Fogerty, who also works as his manager, realized they were on the cusp of a second chance thanks to the Copyright Act of 1976.
That law–specifically sections 304(c) and 203–are intended to give musicians, songwriters and other creators a second bite at the apple by enabling them to recapture the copyrights to compositions and recordings, in the United States only, that they may have signed away earlier in their careers. Songs dating from before 1978 can revert to their creator or heirs after 56 years, and songs from after 1978 can revert to the creator or heirs after 35 years, provided they file the proper paperwork.
Realizing that many of John’s songs were nearing that 56-year threshold, Julie reached a deal with Concord in January that returned majority control to her husband of worldwide publishing rights to over 65 Creedence classics.
Although clearing the legal and corporate hurdles to recapture rights can be significant and compromises are often negotiated, some industry insiders say that same law could lead to artists putting up for sale their newly recovered catalogs in a way that stokes the already hot market for publishing and recording rights.
“You have this interesting confluence of the big, big moment in classic rock, and you’re also getting to the 35-year window for late-1980s songs,” says Concord CEO Bob Valentine, who mentioned the mutually “happy outcome” with John during a discussion about works from the late ’60s and late ’80s approaching their reversion dates.
“Those are two huge windows for multiple genres,” he adds. “It makes the [catalog investment] market really interesting at this moment in time.”
Clearing the hurdles — both within the law and presented by music companies — to recapture rights is complicated, but there is some precedent to support this optimism. In 2013, when the first wave of post-1978 works approached the 35-year threshold, Billboard reported that nearly 20 of the world’s most famous songwriters had filed termination notices with the U.S. Copyright Office, including Paul McCartney, Bob Dylan, Brian Wilson, Gerry Goffin & Carole King, Willie Nelson, Daryl Hall & John Oates and the estates of Buddy Holly and Bo Diddley.
Lisa Alter, a founding partner at Alter Kendrick & Baron in New York and an expert in rights reversion negotiations, says a new surge has already begun. “Commerce has definitely increased in this area,” she says. “It will continue to increase, and at some point, maybe 10-plus years down the line, things will start to level off.”
Sources cautioned, however, that rights reversions — particularly for master recordings — rarely work out so cleanly as the law implies, and that likely only a fraction of the hit song catalogs reaching the 35-year or 56-year milestones will revert to their owners.
While John was able to regain a majority share of his worldwide publishing rights, Concord retains the Creedence master recordings in its catalog and, as of January, was still administering the rocker’s share of the publishing catalog. (Concord obtained Creedence’s recordings through the 2004 acquisition of Fantasy Records.) While John regained only publishing rights this year, Concord reinstated and improved his artist royalties shortly after the acquisition.
A key argument used by industry observers who predict the spate of copyright reversions will superheat the catalog investment market in the coming years is that superstar artists and songwriters who were behind hit records in the ’60s, ’70s and ’80s are aging and may be considering selling their rights to pass down a simpler inheritance to their heirs.
Before that can happen, however, artists and songwriters — or their heirs, if they are deceased — are required to serve the U.S. Copyright Office and their current music publisher or record company a termination notice at least two years before the songs turn 35 or 56, and they cannot enter any agreement with a third party before their current contract is terminated. Whoever has been holding those rights has the right of first refusal to acquire them.
While that option often leads the incumbent rights holder to negotiate new deals with the artists seeking to recover their rights, Alter says that since 1978, publishers have usually acquiesced when artists seek to reclaim their publishing rights, and labels have largely sought to block attempts to reclaim sound recording rights.
“There has been almost universal opposition on the part of the labels to the [termination] notices,” she says, with labels often arguing the notice was not validly served or the artist or songwriter produced the song as a work for hire. “While some artists have successfully gotten their rights back, in the majority of cases, the record label has renegotiated the leases.”
Many artists have attempted to sue major labels for their responses to termination notices — so far almost always unsuccessfully. One closely watched case was brought by “Missing You” singer John Waite, who sought class action status for hundreds of artists to sue Universal Music Group to regain control of their masters. The class action request was denied in January after a judge said there were complex and unique issues raised by each artist’s relationship with UMG that could not be resolved on an “aggregate basis.”
Round Hill Music co-founder Josh Gruss, who was an early investor in songs as an asset class, says he questions whether the rights reversion trend will result in more copyrights coming to the investment market.
“It’s really hard for significant recordings to fall out of the major-label system,” he says.
That said, Gruss acknowledges that attractive copyrights that have reverted to an artist or songwriter frequently come up for outside investment. For example, songwriter Eddie Schwartz, who wrote 100% of Pat Benatar’s 1980 top 10 Billboard Hot 100 hit “Hit Me With Your Best Shot,” reclaimed his publishing rights to the song in 2015 and sold them to Round Hill. Gruss says they’ve both been happy with the result.
When it comes to master recordings, however, Gruss agrees with Alter’s assessment.
“The labels have always done a masterful job of not letting the recordings revert,” he says.