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Billboard elevates key employees Shira Brown and Sara Katzki, who are named as vice presidents of the music industry title.
Brown, previously associate vice president of video strategy and development, rises to vp of video at Billboard. In her new position, Brown will be responsible for maintaining and improving production quality, while growing the video business, and expanding the venerated title’s revenue streams to include e-commerce, archival licensing and show IP development.
Additionally, she will play a central role in Billboard’s live and event video content.
A Billboard veteran of seven years. Brown had previously led content strategy and partnerships for Larry King Now and Ora TV, and has accumulated upwards of 15 years’ experience in the video space.
Katzki, meanwhile, is the ex-senior director of project management at Billboard. Moving forward, she will serve as vp of Brand Studio, with duties for overseeing ideation, development, and execution of multi-faceted custom concepts for partners across live events, video, social and talent-based programs for all branded content.
A Penske Media Corporation (PMC) stalwart for almost a decade, Katzki has overseen music and brand project management for clients including Honda, Samsung, Amazon, American Express, Google, Diageo and more.
“It’s a privilege to be able to promote two very talented team members who continue to make massive contributions to your brand, culture, and business,” says Mike Van, president of Billboard, in a statement issued Tuesday (Feb. 7) by the trade title’s parent company Penske Media Corporation.
Brown and Katzki “are the best at what they do,” says Dana Droppo, chief brand officer at Billboard, “and it is an honor to be able to acknowledge their hard work publicly.”
The promotions follow the June 2022 appointments of Van and Droppo to their new roles at Billboard.
Penske Media Corporation — the parent company of Billboard, The Hollywood Reporter, Variety, Rolling Stone and other publications — has made a strategic investment in Vox Media, it was announced Monday (Feb. 6). Vox Media owns brands including Vox, New York Magazine, The Verge, The Cut, Eater, Vulture, The Strategist, Polygon, SB Nation, Intelligencer, Curbed, Grub Street, Recode, Thrillist, Popsugar, The Dodo and NowThis.
With the investment, Penske Media is now Vox Media’s largest shareholder and Penske CEO/founder Jay Penske will join Vox’s board of directors. The two companies will continue to operate independently.
Terms of the deal were not disclosed.
“I have long admired Vox Media’s world-class editorial teams and brands,” said Penske in a statement. “We deeply respect the track record of both Jim Bankoff and the senior leadership team at Vox Media, and the company’s remarkable growth over the last decade. The Penske Media and Vox Media alliance will further cement both companies as leaders in modern media and take advantage of new opportunities at scale. Our two companies share a similar history of organic and acquisitive growth over time, and it made sense to invest for the future.”
“We couldn’t ask for a better partner than Jay and Penske Media to invest in our company’s future success, and help us build on and accelerate the leading creative and business strength across our organization,” added Vox Media co-founder/CEO/chair Jim Bankoff. “In addition, this investment by Penske Media will allow Vox Media to continue scaling its existing brands and operations, while providing resources for future acquisitions, and is another step forward in the ongoing ascent of Vox Media.”
LionTree acted as a financial advisor to Vox Media, while White & Case served as its outside legal advisor. Morgan Lewis was Penske Media’s legal advisor, in addition to Panarae Group, which acted as a corporate advisor.
Clio Music announced a collaboration with Billboard on Monday (Feb. 6) that will move the annual Clio Music Awards to Los Angeles during Grammy Week 2024. The Clios will additionally introduce a new specialty award offering music fans the opportunity to select the winner of the Favorite Music From a Commercial Award, to be presented by Billboard during the ceremony.
Clio Music will also develop an honorary Clio Music Executive Award, honoring an executive whose creative approach to advertising is shaping the future of the industry. This award will be presented at the 2024 Billboard Power 100 event the evening prior to the Clio Music Awards, at the same venue.
“As we celebrate the 10th anniversary of the Clio Music program, I am so proud of how much it has grown,” Clio CEO Nicole Purcell said in a statement. “What began as a dedicated act in our legacy Clio Awards show has grown into a powerful force for celebrating creativity in the music business. And now, we’re hosting a standalone show in Los Angeles and collaborating with Billboard, one of the industry’s most prominent outlets for recognizing the industry.
“It’s been incredibly fulfilling to see our competition evolve alongside the music industry, which has developed so many new avenues for brands and musicians to collaborate in the years since Clio Music launched,” she added.
Clio Music opens for entries today. The 2023/24 entry cycle will feature two new mediums: music supervision and fan engagement. The program, which recognizes creative excellence in music marketing and the use of music in advertising, also includes mediums for branded entertainment & content, creative effectiveness, design, digital/mobile, experience/activation, film & video, public relations, social good, social media, sonic branding and use of music in audio/film & video advertising and in teasers/trailers. For more information, go here.
On the evening prior to the awards, Billboard will host its annual Billboard Power 100 event, which celebrates the industry’s most influential executives and will feature the Executive of the Year, Label of the Year and the Clive Davis Award, in addition to the newly created honorary Clio music executive award.
“Our Power 100 list recognizes the influential executives that move the music business forward each year and it’s always a delight to bring everyone together during Grammy week for an evening that celebrates the best in the biz,” said Billboard chief brand officer Dana Droppo. “We’re excited to get started on planning next year’s event and to be introducing a new award in collaboration with Clio Music that will honor a top executive with a demonstrated talent for music marketing and advertising.”
Nominations for the Billboard Power 100 list will open this summer. Lucian Grainge, chairman/CEO of Universal Music Group, topped this year’s list.
Clio Music celebrates the power of music to connect consumers and brands around the world. The program was introduced in 2014 to recognize the creative contributions of the marketers and communicators that propel the industry forward, inspire a competitive marketplace of ideas, and foster meaningful connections within the creative community.
JKBX, a start-up offering retail investors fractional shares in thousands of hit songs, is partnering with electronic market-making firm GTS Securities for U.S. equity trading, the companies said in a joint statement Friday (Feb. 3).
The partnership is a sign that investing in songs and catalogs rights — a burgeoning asset class so far open to only the biggest, most monied music fans — is taking another step toward the mainstream. By teaming up with the electronic market maker GTS, JKBX is positioning itself to have one of the most prominent platforms when it launches its public offerings in late 2023.
Pronounced “jukebox,” chief executive Scott Cohen says JKBX has acquired $1.7 billion in music rights and is aiming to acquire $4 billion in rights before their LLC offerings go live. Once those regulation a+ initial filings are registered with the U.S. Securities and Exchange Commission, everyday investors will be able to buy bite-sized investment stakes in songs by current artists and back catalogs belonging to rock legends for a price starting at around $10.
“A handful of private equity firms, multinational corporations and major labels control the most valuable music rights in the world,” Cohen said in the statement. “JKBX’s platform will allow these entities and other significant rights holders to unlock the true value of these assets by offering them to retail investors to buy and sell in a regulated marketplace.”
Cohen, who co-founded The Orchard and was previously Warner Music Group’s chief innovation officer, last year named Matt Brown, formerly of Citadel and Ripple, as JKBX’s chief technology officer tasked with building out the tech powering the platform. With a high-frequency quantitative trading firm, GTS is responsible for nearly $13 trillion of market capitalization — or 3-5% of the daily cash equities volume in U.S. stock markets — making it a designated market maker. Through the partnership, JKBX will gain access to GTS’s technology, a competitive digital advantage in accessing U.S. public markets.
“GTS excels in making markets for every major financial asset class and providing enhanced liquidity through sophisticated, real-time pricing,” said GTS Securities co-founder/CEO Ari Rubenstein in a statement. “This same expertise can be applied to music royalties, which represent the next exciting tradeable asset class.”
LiveCo, a new concert promotion company that combines BASE Entertainment, Premier Productions, Icon Concerts, Rush Concerts and Peachtree Entertainment, launched with a team that includes Brian Becker and Mark Maluso (BASE Entertainment), Michael Pugh and Shane Quick (Premier Productions), Paul Meloche (Icon Concerts), Jacob Reiser (Rush Concerts) and Bradley Jordan (Peachtree Entertainment). “Designed to help expand the live entertainment industry,” according to a press release, LiveCo represents talent and productions including Jimmy O. Yang, Criss Angel, Cocomelon Live, Cody Johnson, Jo Koy, Dude Perfect, Zach Bryan, MercyMe, Elevation Worship and Gabriel Iglesias.
BMI announced several key promotions within its creative team. Rafael Martinez and John Ellwood were appointed to the newly created roles of vp of strategy and business affairs, creative and assistant vp of strategy and business affairs, creative, respectively. Reema Iqbal was named executive director of creative, film, TV & visual media. LuAnn Davidson was promoted to executive director of creative administration. Nina Carter was promoted to senior director of creative, partnerships & events. Jon Miller was named director of creative, Europe. Lastly, Katie Kilgallen and Reginald Stewart were both promoted to director of creative. Ellwood can be reached at jellwood@bmi.com, Iqbal can be reached at riqbal@bmi.com, Carter can be reached at ncarter@bmi.comm, Miller can be reached at jmiller@bmi.com and Kilgallen can be reached at kkilgallen@bmi.com.
Todd Moscowitz‘s Santa Anna label appointed Dave Anderson as GM and Carlos “Los” Orgando as vp of promotion. Anderson, who previously served in vp of commerce roles at Geffen and Warner Records, will oversee Santa Anna’s marketing, promotion and digital teams. Orgando, who will assist the label in developing and executing its promotion strategy across several formats, previously held the vp of promotion role at both Geffen and Warner Records. Elsewhere, Derek Lee added the title of CFO of Santa Anna to his existing title of senior vp & CFO at Moscowitz’s Alamo Records.
William “Andy” Anderson was promoted to chief revenue officer at American Urban Radio Networks (AURN); he was previously president of sales. In the role, Anderson will help maximize revenue opportunities, product acquisitions and original content creations for the company. Anderson previously served as director of urban/Canadian advertising at Billboard. (via Radio Facts)
Markus Holzherr was appointed to the newly created role of chief business officer at Warner Music Central Europe. In his new role, Holzherr will oversee the finance, new business, research & analytics and legal departments. He comes from DFB GmbH & Co. KG, where he served as managing director of finance and controlling.
Rob Gross was hired as senior vp of label services at The Syndicate. In the newly-created role, Gross will provide full-scale project management for album releases and sales for all aspects of the company’s services in radio, marketing and PR. Most recently a partner at Shark Attack, he brings clients Warner/Rhino Records and Dine Alone Records to The Syndicate. Gross can be reached at gross@thesyn.com.
Fresh N Sassy Productions CEO/founder Janishia Jones launched ENCORE Music Tech Solutions, a music tech consultancy that signed EMPIRE Publishing as its first client. Under that deal, ENCORE will work with EMPIRE Publishing to scale and improve the publisher’s performance across royalty payment, reporting, synch and other complex systems. ENCORE has already “helped create crucial systems” for EMPIRE Publishing including solutions to better manage agreements, financial accounts and copyrights, according to a press release. Jones can be reached at Info@encoremusic.tech.
Liberty Wilson was promoted to vp of international marketing at Warner Music UK, advancing from her previous role of international marketing director. She’ll continue reporting to the label’s senior vp of international marketing, Victor Aroldoss.
Human Re Sources hired Junko Takeda as vp. Based in Los Angeles, Takeda will oversee day-to-day label relations of Human Re Sources’ Los Angeles and Atlanta operations and continue building the company’s roster of artist clients with support from The Orchard. Takeda most recently served as head of A&R operations at Warner Chappell Music.
The National Independent Venue Foundation (NIVF) appointed Carl Atiya Swanson as executive director. In the role, Swanson will play a key role in “expanding and solidifying NIVF’s programmatic vision,” according to a press release, collaborating with the executive leadership of the National Independent Venue Association (NIVA) and NIVF “to preserve and nurture the ecosystem of independent live performance venues, festivals and promoters throughout the U.S.” He will work to strengthen the independent venue sector via economic development initiatives and workforce development programs while managing critical services including emergency relief funding. Swanson was previously associate director at Springboard for the Arts.
Jacee Badeaux and Halle Bartlett were promoted to senior creative director of A&R and coordinator of A&R, respectively, at Big Yellow Dog Music. In his new role, Badeaux will continue to curate activity for the company’s writers, artists and producers; he was previously creative director. Bartlett, who was previously creative assistant, will be responsible for calendar management, writer coordination, song pitching and social media for Big Yellow Dog songwriters. Badeaux can be reached at Jacee@bigyellowdogmusic.com and Bartlett can be reached at halle@bigyellowdogmusic.com.
Stephanie McGuire was appointed senior A&R international at CTM Publishing. She will continue to guide CTM’s composers, authors and producers while also focusing on fostering more international collaborations and createingmore overseas opportunities for the company’s roster. McGuire can be reached at Stephanie.mcguire@ctm.nl.
John Page joined Oak View Group (OVG) as senior vp of Acrisure Arena, the Coachella Valley Firebirds and OVG360 Facilities. In the role, he will oversee the management and oversight of all three entities. Based in Palm Springs, Page reports to Coachella Valley Firebirds president Tod Leiweke, OVG business development president Francesca Bodie and OVG360 president Chris Granger. Prior to joining OVG, he served as president of Spectra, which OVG acquired in November 2021.
Nashville’s Society of Leaders in Development (SOLID) announced the newly elected members to its 2023 board of directors: President Erin Pettit (Wiles + Taylor), vp Rio Van Risseghem (The Orchard), secretary Jenna Smith (SESAC) and treasurer Ryan Cunningham (ONErpm). Additionally, Grayson Flatness (Sounds Good) was named alumni president of the SOLID Alumni Board.
Hyperreal — the tech company that develops “digital twins” for artists and other creators, allowing them to control their digital identities in the metaverse and beyond — named Scot Barbour chief technology officer and Tim Coleman vp of digital humans. Meanwhile, the company’s chief innovation officer, Sergi Sagas, joined the Hyperreal board of directors. Barbour, who was previously head of production and digital DNA acquisition, will drive the company’s technology roadmap and partnerships and supervise physical and virtual production for Hyperreal. Coleman, who joined Hyperreal in 2020, will head up the effort to build the company’s “highly-detailed, performance ready, photoreal digital avatars known as ‘HyperModels,’” according to a press release.
United Talent Agency is making significant changes to its board of directors.
The company, led by CEO Jeremy Zimmer, is adding two new independent directors, expanding the board beyond its own executives and investors for the first time.
The new directors are Paul Wachter, the founder and CEO of investment firm Main Street Advisors, and Ceci Kurzman, the founder of Nexus Management Group. Wachter will also become chairman of the board for UTA.
With Wachter becoming chairman, UTA co-founder Jim Berkus will step aside from that role, which he has held for the last 25 years, a source close to the company confirms to The Hollywood Reporter. The source added that while Berkus will no longer be on UTA’s board, he remains “very active” at UTA. Berkus co-founded UTA in 1991 with Zimmer and Peter Benedek, and became sole chairman of the firm in 1997, THR reported that year.
The changes to the board come as UTA has spent the last few years transforming its business via expansions and acquisitions. Last summer, the agency secured an investment from EQT Partners and said at the time that it would use the cash to pursue an expansion and growth strategy. EQT is now UTA’s largest minority investor.
And while its agency competitors CAA and Endeavor have pursued megadeals (with CAA acquiring ICM, and Endeavor pushing further into live sports via its acquisition of the rest of UFC and a betting data firm), UTA has made a number of smaller, more targeted acquisitions.
The company acquired the U.K. literary and talent agency Curtis Brown Group last year, and last month acquired the literary agency Fletcher & Company in a push to grow its publishing business. The company also bolstered its UTA IQ data business by buying analytics firm MediaHound, and perhaps most notably made a big expansion into marketing and consulting via the $125 million acquisition of Michael Kassan’s strategic advisory firm MediaLink.
The additions of Wachter and Kurzman are sure to raise questions about UTA’s future, as they will be the first independent directors on the company’s board. UTA has had investors on the board, but never independent directors, who are often tapped to provide more neutral guidance, particularly as a company pursues further growth.
In a statement, Zimmer said that the company and EQT “together recognized the value of adding experienced outside voices to the board to help us continue to pursue our goals.”
“The addition of Paul and Ceci, with their web of expertise in entertainment and technology, finance and corporate governance, is another powerful signal about the trajectory of our company and the work we are doing on behalf of our clients,” he added. “Both Paul and Ceci are passionate about artists and culture and recognize the importance of how UTA can continue to lead into the future.”
“I’ve watched Jeremy and UTA build one of the most dynamic businesses in entertainment, sports and media. These industries are going through a generational transformation, and UTA is uniquely positioned to be one of the companies at the center of it,” added Wachter in a statement. “I’m very honored to join as board chairman and thrilled to be a part of how UTA continues to innovate for their clients and investors.”
“Culture, entertainment and sports are universal throughout the world, creating new forms of disruption and opportunity every day. UTA touches every corner of these ecosystems and has the growing reach and capabilities to continue to drive success for the extraordinary artists, athletes and clients they represent,” Kurzman added. “I’m excited to work with the rest of the UTA board to continue to innovate and pursue their vision.”
This article was originally published by The Hollywood Reporter.
Los Angeles-based private equity firm Shamrock Capital raised $600 million in a new fund aimed at acquiring film, television, music, video games and sports rights, the company announced Thursday (Feb. 2).
Founded in 1978 as Roy E. Disney‘s family office, Shamrock now says it has $4.4 billion of total assets under management, including $2 billion in its content strategy, thanks to the close of this new fund, the Shamrock Capital Content Fund III.
Shamrock has become a powerful force in music catalog investment space, which continues to draw in deep-pocketed Wall Street investors, like Brookfield Asset Management.
Shamrock made headlines in 2020 when it bought Taylor Swift’s Big Machine catalog from Scooter Braun’s Ithaca Holdings. (Braun’s firm acquired the master recordings as part of its acquisition of Big Machine in 2019.) Last month, Shamrock bought a portion of Dr. Dre’s music income streams and some owned music assets alongside Universal Music Group. Its other investments include Stargate’s publishing catalog, the trade publication AdWeek and the fantasy sports platform FanDuel.
“We are truly grateful to our existing and new investors for their commitment to this fund and our strategy overall,” said Patrick Russo, partner at Shamrock. “The closing of SCCF III continues to build on our multi-product platform and long-term strategy of owning and financing premium content and media rights. Our track record of successfully investing in these sectors stands out and uniquely positions Shamrock to capitalize on the trends, changes, and opportunities across the global media and entertainment landscape.”
In 2021, Shamrock expanded into the lending space with a $196-million debt fund intended to loan money to intellectual property owners across music, film, TV, games and sports. Shamrock’s Capital Debt Opportunities Fund raised the money from both existing and new limited partners and is managed by Shamrock partners and other investment professionals, including pension funds, foundations and financial institutions.
The Rock & Roll Hall of Fame is filled with hundreds of artists that combine commercial success with cultural influence: The Beatles (class of 1988), U2 (class of 2005), Blondie (class of 2006), The Who (class of 1990), Stevie Wonder (class of 1989), Bob Dylan (class of 1988) and Whitney Houston (class of 2020) represent dozens of No. 1 records, platinum records and Grammy Awards (and one Nobel Prize in literature).
Sometimes, as with Parliament-Funkadelic (class of 1997), importance can also be measured by the number of times their songs were sampled in hit songs. In other instances, such as the Grateful Dead (class of 1994), inclusion of the Rock & Roll Hall of Fame comes from an unmatched touring legacy more than a relatively modest sales history (In The Dark reached No. 6 on the Billboard 200 chart in 1987).
But influence alone might not be enough. In 2022, voters opted not to induct proto-punk groups New York Dolls and MC5, pioneering Afro-funk musician Fela Kuti and new wave group Devo (whose track “Whip It” reached No. 14 on the Hot 100 in 1980). They even passed on Beck, whose 180,000 album equivalents units far surpassed both Pat Benetar and The Eurythmics, although his airplay audience was far lower.
Influence can trump commercial success in determining who voters induct, however. The Ramones (class of 2002) and Velvet Underground (class of 1996) had little commercial success when active. Even as their fame grew over the decades, neither band’s catalog sales matched their significant cultural importance. The Hall has purposefully set aside space to recognize the genre’s foundational musicians. Blues greats such as Robert Johnson (class of 1986), Lead Belly (class of 1988), Howlin’ Wolf (class of 1991) and Elmore James (class of 1992) were inducted as “early influences” for their incalculable impact on rock music, not their album sales figures.
None of this year’s nominees have 2022 consumption numbers nearly as low as MC5 (8,000), New York Dolls (7,000) and Kuti (37,000) had in 2021. Warren Zevon is the at the bottom of the group with 66,000 units. Last year, Carly Simon’s 91,000 units was the lowest of the inductees.
Kate Bush, also passed over for induction in 2022, could have better odds this year after her 1985 recording “Running Up That Hill” re-entered the Hot 100 — peaking at No. 3 — thanks to the Netflix series Stranger Things. Last year, that renewed interest pushed Bush’s album equivalent up 326% and her U.S. radio audience up more than 5,400%, according to Luminate.
Returning nominees Rage Against the Machine and A Tribe Called Quest have some of the highest consumption figures of this year’s batch. Both groups had about the same number of equivalent units in 2021 and 2022. Soundgarden’s 218,000 album equivalent units are in the middle of the pack but could be helped by its airplay audience that ranked second only to Bush.
In 2020, after years of steady growth, the vinyl market exploded. Sales climbed over 46% in the United States, according to Luminate. Then, remarkably, they jumped another 51% in 2021.
But in 2022, that growth plummeted to a rate that was far more pedestrian: Luminate reported that sales were up a little more than 4%. (Pull two juggernauts — Taylor Swift‘s Midnights and Harry Styles‘ Harry’s House — out of that number, and growth was less than 1%.) Year-over-year growth also fell in the United Kingdom from 23.2% to 2.9%, according to the British Phonographic Industry.
“Some labels report sales are down,” says Nick Gordon, chief partnership officer at Symphonic Distribution. And big retailers like Walmart offered some titles at a heavily discounted price around the holiday season, stoking fears among the smaller players that those stores had overbought — maybe an indication of slackening demand.
Despite these figures, Gordon believes the vinyl market remains “healthy.” And several of his peers — from distributors to indie-label heads, chain stores to independent retailers — also seem unruffled by the slower growth. “It corrected the market,” says Todd Oenbrink, sales director for All Media Supply, a Florida-based indie wholesaler.
“It feels like a welcomed return to normalcy,” agrees Terry Cole, founder and owner of Loveland, Ohio-based store Plaid Room Records and the label Colemine Records. “It feels way healthier. This industry is not set up for rapid growth.”
And according to Russ Krupnick, managing partner of the market research company MusicWatch, “core metrics” in the vinyl market are still “showing strength.” “Our initial look at the data from 2022 is indicating that the number of vinyl buyers is still holding up,” he continues. “And in early projections, it looks like the used vinyl market is going to be up by double digits.”
During the first two years of the pandemic, demand for vinyl grew like crazy, outpacing production capacity. But retailers, distributors and manufacturers consider those two years an aberration — from 2015 to 2019, year-over-year growth ranged from around 9% to 17%.
When few music fans were going to shows due to COVID-19, “vinyl took a far greater share of music fan spending than it would otherwise take,” says Stephen Godfroy, director and co-owner of Rough Trade, which saw 30% growth in vinyl sales in 2022. “We saw exuberance for all sorts of things during the peak COVID era — vinyl, Netflix, cooking lessons, home improvement,” Krupnick notes.
Now listeners “are spending money on other things — going out drinking, going out eating, going to gigs — whereas they couldn’t do that much in lockdown,” says Peter Quicke, chair of independent label Ninja Tune. (Vinyl sales for Ninja Tune rose over 25% in 2022.) Even so, vinyl sales still grew.
With higher prices for raw materials and labor, the cost of records has also increased, another potential growth dampener. Several independent store owners expect major-label prices to increase again in 2023. “We keep hearing there are more [price hikes] to come,” says John Kunz, owner of Waterloo Records in Austin. “I wonder how that 10- or 20-something shopper is going to be able to afford that.”
Price sensitivity, especially in an uncertain macroeconomic climate, is a chief worry in the independent record store owner and label community. Already “we see customers backing away from the high prices for new releases,” says Michael Kurtz, co-founder of Record Store Day.
But at the same time, the vinyl industry’s production capacity is expected to rise in 2023. Slower growth last year “was less about people suddenly not wanting to buy as many records and more about the amount of records available to purchase,” says Cameron Schaefer, CEO of Vinyl Me, Please. (VMP sales were up 15% in 2022.) “The biggest limiter on growth is just pressing.” “We could have sold much more vinyl in 2022 if only we could have gotten hold of more supply of the right product,” Godfroy agrees.
Independent labels are still struggling with long turnaround times, executives say, which leads to missed sales for their artists — especially when an album doesn’t hit stores and streaming services at the same time. But more plants are coming online — Vinyl Me, Please expects to have its own new plant operational this year, for example — and existing facilities are adding capacity.
There are other potentially positive signs. Krupnick published a study on “the vinyl revolution” in 2022 which found that the most common barrier to buying records was “I don’t have or want to buy a turntable;” similarly, Luminate’s year-end report noted that only 50% of vinyl buyers have a record player. But “when Harry Styles came out last year, we saw a spike in turntable sales,” says Crissi Bariatti, music buyer at Barnes & Noble. “We are converting a lot of new vinyl fans” who might purchase LPs for years to come. (The chain had an “amazing December” for vinyl sales, and “January numbers are great” as well.)
Fluctuation in growth isn’t uncommon, of course. “Ebb and flow in vinyl sales over short periods” is natural, according to Scott Hagen, CEO of Victrola, a product of “what the new releases are, what the availability is in that moment in time, and what the general traffic in retail is.” (That was down in the fourth quarter of 2022.) Schaefer from Vinyl Me, Please predicts that “the next two years will give a much better preview of what to expect from the vinyl industry in the long term.”
“People got excited by high numbers in the years prior,” he continues. “If we can get to 10% a year, stay there and do that well? That’s healthy.”
Universal Music Group chairman and CEO Sir Lucian Grainge is calling on music industry executives to come together to get artists paid. Last night (Feb. 1), Grainge addressed an audience of Billboard Power 100 honorees in Los Angeles with the hope that the most powerful business figures in the industry can come together on the side of creatives.
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“Our industry is entering a new chapter where we’re going to have to pick sides, all of us are going to have to pick sides,” Grainge said from the stage in Hollywood. “Are we on the side of FinTech [Financial Technology] and functional music, functional content? Or are we on the side of artistry, and artists?”
Grainge was the first executive to take the stage after Billboard editorial director Hannah Karp opened the ceremony and introduced Grainge who, once again, landed the top spot on the Billboard Power 100 list this year. Grainge takes the top spot as the leader of UMG which reported third-quarter earnings of 2.66 billion euros (approximately $2.9 billion), up 13.3% year over year in constant currency, a fifth-straight quarter of growth since the company spun off from Vivendi in fall 2021.
His call to action was based on the idea of disrupting the music industry, but from those who care most about it. “I’ve always seen opportunity in disruption. And for those of us that have been in the business, made our living out of music, boy have we seen an enormous amount of disruption,” said Grainge. “But the problem is that all too often we’ve let others disrupt our industry. But if we work together across the music community, we can disrupt the status quo instead. And that offers enormous opportunity for real music, real artists. Now, that’s what I call powerful.”
The executive was also quick to thank his colleagues at UMG and provided a shout out to its label Republic Records, which landed the No. 1 label of the year based on current market share. But Grainge’s short and poignant speech focused on his love of music and those who work on behalf of artists.
“Working on behalf of artists and working to grow this industry has been my life’s passion and I’ve been very lucky,” Grainge said. “I feel very strongly that if we’re to succeed, more than ever, we need to come together as an industry, to fight for artists, and for music.”
He continued: “Let’s focus our energy on rewarding those that make great music and those that made music great. Let’s break artists, fight to get them paid, and to give fans real joy.”