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After coming together with Adidas in 2018 to relaunch her athleisure brand Ivy Park, Beyoncé has parted ways from the sportswear giant, in a move that sources tell The Hollywood Reporter was mutual.
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The split was reportedly due to creative differences between Ivy Park and Adidas, with Beyoncé excited to “reclaim her brand, chart her own path and maintain creative freedom,” The Reporter writes.
During what Adidas referred to as “a partnership of a lifetime,” Ivy Park launched several collections, with the first launching in April 2019. The drop was fully equipped with a massive PR campaign involving closet-size traffic-cone-orange boxes being sent to celebrities including Missy Elliott, Cardi B, Kendall Jenner, Angela Bassett, Ciara, Reese Witherspoon and Hailey Bieber.
Despite the glittery promotional content, Ivy Park apparently did not live up to the hype Adidas was anticipating when they initially promised Beyoncé “guaranteed annual fees and creative control,” according to a Wall Street Journal piece from February. Instead of producing the hundreds of millions in revenue that Adidas expected — the company hoped Ivy Park would perform similarly to Ye’s Yeezy brand — Ivy Park releases undersold, with roughly half of the merchandise from five of the six releases remaining on shelves.
The Wall Street Journal article also indicated differences in strategy between Adidas and Ivy Park when it came to marketing, with the German multinational corporation pushing for their own branding. At the end of 2022, Ivy Park was predicted to reach $40 million in sales, down from $93 million the year prior. Although Adidas was positioned to lose at least $10 million in 2022, Beyoncé was set to make the same amount in compensation as previous years: $20 million.
Beyonce launched Ivy Park in 2016 with Top Shop owner Sir Philip Green. When the partnership ended in 2018, Bey’s Parkwood Entertainment acquired full ownership of the streetwear brand. Despite the breakup, Beyonce has much to look forward to considering the frenzy surrounding her upcoming Renaissance World Tour, kicking off in May. The mega-tour has already caused mayhem among fans eager to see the superstar IRL and will begin in Stockholm, spanning dates throughout Europe and North America.
Billboard has reached out to reps for Beyoncé and Adidas for comment.
Multimedia Music secured a $100 million investment “uplift” from its group of investors and lenders, including Metropolitan Partners Group, Bardin Hill, Pinnacle Bank and Regions Bank, according to a press release. That grows the company’s total funds raised to $200 million. Multimedia Music also announced a deal to acquire the catalog and income streams of Emmy-winning composer Sean Callery (Homeland, 24, Bones). Launched in 2022 and led by music industry veterans Phil Hope and James Gibb, Multimedia Music with the goal of acquiring catalogs of film and TV music rights from production companies, composers and other rights holders. The company says it has so far spent over $120 million on acquisitions, including the catalog of film composer James Newton Howard and the film music library of STX Entertainment, which it purchased in February.
Reactional Music, a startup specializing in music personalization for video games, licensed the catalog of Merck Mercuriadis‘ Hipgnosis Song Management. Reactional owns patented technology that allows any music to be brought into a video game, where it reacts live to various elements in the game, including visuals and sounds — thereby creating a “personalized” experience for gamers. Reactional tracks all music use across the platform, while its Reactional Engine does not alter, mix or edit the music master. It previously partnered with Tuned Global, Musiio and Blokur for music delivery, consistent tagging and rights management of all music and sounds. “The intersection of games and music is incredibly exciting,” said Reactional Music president David Knox in a statement on the Hipgnosis deal. “Commercially it presents opportunities for both industries with in-game purchases; creatively it is compelling for artists, composers, and games developers to work more closely. And it’s not just new game releases. Reactional’s platform enables curation and personalisation of music in existing games franchises as part of a seasonal refresh.”
Chrysalis Records signed a global agreement with Secretly Distribution that covers all physical and digital distribution for the label’s frontline releases moving forward, including new projects from Laura Marling, Emeli Sandé, Ben Harper, William The Conqueror, The Wandering Hearts and more. The first release under the deal is The Endless Coloured Ways – The Songs of Nick Drake.
Digital electronic music store Beatport struck a partnership with blockchain network Polkadot to launch Beatport.io, a digital collectible marketplace that will bring “electronic music culture to Web3,” according to a press release. Developed and designed in collaboration with Define Creative, Beatport.io will launch on Aventus, a Web3 solutions provider in the Polkadot ecosystem. The new platform will allow record labels and artists to create and sell digital assets and engage with fans. In addition to the launch, Beatport and Polkadot will collaborate on 10 events over the next 18 months, each held to celebrate the launch of a new NFT collection accessible via Polkadot-integrated wallets. The events will be produced by Beatport and “take place alongside major music and Web3 events,” according to the release.
The Orchard acquired Above Board, a dance and electronic music distribution and artist/label services company. Under the deal, Above Board’s roster will have access to The Orchard’s full suite of distribution and artist and label services. Above Board founder/managing director Dan Hill will report to The Orchard managing director Ian Dutt as he continues signing and developing global dance/electronic talent for the label. The Above Board team is now based in The Orchard’s U.K. headquarters. The Orchard’s roster of dance labels also includes Liquid State/Dimitri Vegas, Amtrac, TMRW Music Group and Rose Avenue.
Recently-launched live events company LiveCo acquired faith-based concert promoter Transparent Productions, which works with Christian and gospel music artists including Phil Wickham, CeCe Winans, Casting Crowns and For King & Country.
The Warner Music Group/ Blavatnik Family Foundation Social Justice Fund bestowed a $150,000 grant to Janelle Monáe‘s nonprofit, Fem the Future, which has a mission to create opportunities for under-resourced girls and non-binary youth of color in music, the arts and education. The grant will serve as a pilot for a longer-term collaboration between the two organizations. “This grant will enable Fem the Future to scale up its programming; elevate the power and brilliance of Black girls and non-binary youth; and ensure greater access to life-changing opportunities,” said Warner Music Group/ Blavatnik Family Foundation Social Justice Fund executive director Lorelei Williams in a statement.
Universal Music Central Europe partnered with Web3 music company Centaurify. Under the deal, Universal Music Central Europe will release a series of exclusive, limited-edition collectibles celebrating its artists’ achievements. As streaming numbers grow for artists included in the collection, the collectibles will “evolve,” according to a press release. The collectibles will also grant pre-sale access to future collectibles in the series as well as access to exclusive releases from artists. The first wave of collectibles will be available this year in Norway and Sweden, with more countries to be announced soon.
The U.K. office of digital music company Believe signed a long-term label solutions partnership with drum and bass label Hospital Records for Believe’s new b:electronic imprint. Believe will distribute Hospital’s entire catalog of more than 5,300 tracks to its global network of DSPs while offering audience development services to support growing Hospital’s international reach, including video channel management and strategic support from dedicated genre specialists on Believe’s label management and DSP editorial and marketing partnerships teams. Upcoming releases to be distributed under the deal include albums from P Money x Whiney, Metrik, Hugh Hardie and Flava D. Believe also boasts partnerships with other electronic labels including Metalheadz, Shogun Audio, Cr2 Records, Greco-Roman, Knee Deep in Sound and Southern Fried Records.
Warner Music Czech Republic renewed its partnership with and invested in local hip-hop label Mike Roft to help expand its roster’s global reach. Under the deal, Warner Music will become the sole distributor for Mike Roft’s roster, including Czech superstar Calin — also a shareholder in the company alongside fellow Czech artist D-Kop and video director/graphic designer Radim Zboril. All three will continue to lead Mike Roft as an independent label. Mike Roft is also home to artists including Conspira, KOJO, Indigo and STEIN27.
Voyage, a talent consultancy founded by music executive Spencer Moya, has been acquired by digital-focused talent management firm Select Management Group. In partnership with Select, Voyage will now expand its offerings to encompass artist management services across music, TV/film, creative and fashion. The Los Angeles-based Moya will continue running Voyage as a standalone enterprise within Select.
ASM Global and Frost Bank struck a multiyear deal that names Frost as a founding partner for San Antonio Boeing Center at Tech Port. As part of the agreement, Frost is now the official commercial banking partner for the 130,000-square-foot convention center, which has renamed the premium lux level at the arena as Frost Club.
Independent sales, marketing and distribution company Republic of Music signed a global delivery services deal with distribution management platform Labelcamp. Republic of Music’s label partners — including City Slang, Full Time Hobby and Ghostly — can now upload new releases, manage their catalogs and access daily trend analytics from Labelcamp’s white-label dashboard, while the company’s operations and marketing teams are using Labelcamp to manage release submission from partners and ensure their delivery to DSPs. Labelcamp’s other partners include [PIAS], Because Music, Concord Music Group and Ditto Music.
Bettie Levy remembers “all kinds” of music playing in her parents’ Washington, D.C., household while she was growing up. And when she was finally allowed to go to the local shopping mall by herself while in middle school, she kept up the family tradition.
“I would take any dollar I earned anywhere and come home with singles and cassette tapes,” Levy recalls with a laugh. “Ultimately every birthday, I always wanted something relating to music. Then after CDs came, tower racks took over my room. So I think it was pretty much a given that I was going to do something in music.”
And she did. After several career-evolving stints at Sony Music, in 2009, Levy affixed her initials to her own enterprise. Focusing on live events and brand partnerships, New York-based BCL Entertainment encompasses all music genres, as well as A-list talent ranging from artists and Broadway stars to film/TV actors, athletes and influencers. And it’s all in service to a client roster that includes brands, hospitality companies, TV/digital production companies and charitable organizations.
Last year, according to Levy, BCL Entertainment logged the most events in the company’s nearly 14-year history. Its string of multiple talent-production projects commenced in January 2022 with the launch of the ongoing national ad campaign for Folgers coffee, featuring Grammy-winning artist Trombone Shorty. Last fall marked the second season of BCL’s collaboration with sports apparel company Fanatics and its merch line from Grammy-winning country artist Darius Rucker and the NFL. According to Levy, the Darius Rucker X NFL By Fanatics clothing line was among the top five NFL men’s apparel lines during the football season throughout the Fanatics network of websites. In association with Fanatics’ in-house event planners, Levy was also a producer of the company’s 2022 Super Bowl party performances featuring Doja Cat and other artists.
BCL Entertainment kicked off 2023 with Levy again working on Fanatics’ 2023 Super Bowl Party, which showcased performances by J Balvin, Travis Scott, The Chainsmokers and A$AP Ferg, among others. Coming soon is a new national ad campaign for Meow Mix — featuring *NSYNC’s JC Chasez and a feline boy band created by the cat food brand — that will air across broadcast, cable and digital outlets. Meanwhile, Calissa Sounds, a summer concert series staged in the Hamptons that BCL co-created with the Civetta Hospitality Group, will return this year (last year’s event included Fat Joe and Wyclef Jean). BCL is also looking forward to another season of Darius Rucker X NFL By Fanatics in the fall.
Still running is the award-winning ad campaign done on behalf of The J.M. Smucker Co.’s Jif peanut butter brand, for which BCL Entertainment served as talent producer. Featuring rap icon and Atlanta native Ludacris, the 2021 commercial spun off several offshoots including a TikTok campaign that has generated 7 million campaign-related views to date, an original song (“Butter ATL”) released on all DSPs, a limited-edition necklace and a charity partnership with the Boys & Girls Clubs of America. The Jif team went on to win four awards at the 2022 Cannes Lions ceremony for the campaign.
BCL’s steadfast mission, says Levy, is to “authentically match talent with brands and events. Then the rest is simple. The best brand/event and talent relationships are the ones that aren’t forced.”
A case in point is the Folgers commercial with Trombone Shorty. The process began with two key questions: Who could vibe well with the ad’s theme song — a reworking of the Joan Jett & the Blackhearts classic “Bad Reputation” — utilized in an effort to prove the 170-year-old coffee product is still cool to drink? And, in turn, who could also bring a New Orleans flair, given that the brand, also part of the Smucker family, is headquartered in The Big Easy? The ensuing chemistry between Folgers, NOLA native Trombone Shorty and Jett led to BCL pitching, closing and structuring Folgers’ sponsorship of Trombone Shorty’s Voodoo Threauxdown Tour in 2022, as well as the musician’s one-off show in New Orleans last April with special guests that included Jett herself.
“Jif and Folgers are examples of multi-dimensional campaigns in which one thing leads to the next between events and brand partnerships,” says Levy. “When you’re touching all the creative points and everything comes full circle like that, it’s pretty incredible.”
Besides authenticity, agility is another component of BCL Entertainment’s operational philosophy. As it was from the start, Levy continues to utilize a team of four to five key people, allowing her to “flex up or down as needed, bringing in staff and partners for different projects, as well as using local vendors to keep costs at bay.” That agility, Levy adds, came in handy during the pandemic: “When everything pivoted to virtual, we were able to move swiftly and adapt; meeting clients, brands and entertainers where they were in that moment.”
BCL’s ability to move quickly and adapt is tied to one more foundational component: Levy’s long-term industry relationships. While attending Boston University, Levy interned with Sony Music. Literally the day after graduation, she started working full-time in the radio promotion department at Columbia Records in New York. A gig as the label’s video booker followed, as did a more senior booking role at Epic Records. Then in 2007, Levy joined former Sony Music Label Group CEO Don Ienner’s label and production company, IMO Entertainment, as director of business development.
“By being at Sony, I built relationships on steroids,” says Levy. “It was just so exponential between the people and talent that I was meeting and working with. Going from that corporate environment to the entrepreneurial space at IMO, along with having been taught at home that anything is possible … the combination of all those experiences put me in the position to take the risk and start BCL Entertainment. What forever holds true and allows me to continue to succeed — no matter the evolution of the industry — are relationships.”
SPOTLIGHT:
What’s changed most in my line of work is that after having BCL Entertainment for nearly 14 years, I feel surrounded more regularly by female executives. As a matter of fact, there are a few companies we partner with where all the executives are women. That’s awesome to see as well as be part of. Also, the prevalence and importance of events and brand partnerships have grown exponentially over the past 20-plus years. Every event and brand partnership today has — and often needs — talent attached, particularly for press and social media reasons. The latter has become invaluable and is a very different form of promotion than when I started in the business.
What most people don’t understand about what I do is they often think it’s easy because every day looks like so much fun. And it is fun because I love what I do. But there are usually 752 things going on in my mind at once and it’s all hard work. Each and every client is my No. 1 priority — at the same time.
I would tell people coming up in this industry that it’s tough. But keep your head high; operate with transparency and class; and build and nurture relationships, because it’s the business of “know who” more than “know how.” Also always remember, one opportunity leads to the next. Explore every opportunity, as you have no idea where it will take you and who you will meet next.
The best advice I received is from my dad; I quote him all day long. Some of my favorites: “You only need one ‘Yes’; and no means ‘Not now.’” “Don’t give up. Ever.” “If you want to get something done, ask the busiest person you know. Busy people get everything done.”
I’ve learned it’s important to be loyal, be honest and be yourself and you will always win. Also, if you aren’t learning, you aren’t growing.
Spotlight is a Billboard Business series that aims to highlight those in the music business making innovative or creative moves, or who are succeeding in behind-the-scenes or under-the-radar roles. For submissions for the series, please contact spotlight@billboard.com.
MELBOURNE, Australia — Mushroom Group, the mighty, Melbourne based-independent music company, sends-out the invitations to its 50th birthday party, an occasion that will include a “once-in-a-lifetime” all-star concert.
A raft of releases, both musical, visual and branded merchandise, will drop in the lead-up to the major live event, set for November.
The action starts from today (March 23) with the release of The Temper Trap’s interpretation of The Church’s Billboard Hot 100 hit “Under The Milky Way,” the first in a collection of starry covers of classic Mushroom songs.
In the weeks ahead Missy Higgins, Bliss n Eso, Paul Kelly and others will share their contributions, which, ultimately, will form a Mushroom 50 compilation album.
Founded in 1972 by a then 21-year-old Michael Gudinski, the Mushroom brand has shaped Australia’s music culture ever since.
Today, the group is a two-dozen-strong collection of affiliates active in every conceivable area of the music and entertainment industries, from touring to booking agencies, publishing, merch and marketing services, venues, exhibition and events production, neighboring rights, branding, labels, talent management and more.
Matt Gudinski is now at the helm of the group, as CEO, following the passing of his father Michael in 2021.
The Mushroom 50 concert, says Matt Gudinski “will feature a huge line-up of sensational artists, celebrating some of Australia’s most iconic songs – this will be a once in a lifetime event.”
He continues, “We’ve teamed up with some of the best artists in the world to deliver these reimagined Mushroom hits. Each artist is bringing their own distinct sound and vision to their cover. I’m sure you’ll love them.”
A snapshot of the Mushroom Group story is told in a 90-second promo, which carries the strapline “50 Years of Making Noise.” Keep an eye out for cameos from the likes of Missy Higgins, Jimmy Barnes and Ed Sheeran, whose most recent tour of Australia, produced by Mushroom Group’s Frontier Touring company, was a record-smasher.
The celebration continues with the release later this year of a feature documentary on Michael Gudinski, a legendary character whose death was mourned by many of the giants he worked with, from Paul McCartney to Bruce Springsteen, Dave Grohl and his bestie, Ed Sheeran. The film project, which traces MG’s remarkable life and career, was green-lit last year and will premiere in cinemas across the country.
Also, a limited-edition range of Mushroom 50 merch is now available on mushroom50.com.
“This news is just the beginning,” reads a statement, “expect more exciting announcements to come in the months ahead.” The line-up, venue and ticket details for the anniversary concert will be revealed in due course.
Downtown Music Holdings announced layoffs across the company’s CD Baby, Downtown Music Publishing, Songtrust, and Downtown Music Holdings (DMH) divisions on Wednesday (March 22).
Downtown Music Holdings chief executive Andrew Bergman emailed staff early Wednesday to share the news. Notably, many of the lay offs affect those working in publishing roles. Neither the email, which was obtained by Billboard, nor a company representative would confirm how many jobs were affected.
Bergman also noted in the email that there are also “a number of cost-saving measures… underway” already at Downtown apart from the reduction in team size. The Downtown rep also declined to explain what these measures were.
The email labels this downsizing as “reorganization” that “harmonizes the past several years of strategic investments and divestitures.” As detailed in a recent Billboard profile of the firm, Downtown pivoted from a traditional publishing firm with 145,000 songs in its catalog to selling off all intellectual property in favor of repositioning as a service-focused company instead.
To further bolster their service offerings, in the last few years Downtown acquired CD Baby, FUGA, AdRev, Soundrop and DashGo, and then last September announced the combination many of its B2B services under the name “Downtown Music.” Downtown Music now includes staff from FUGA, Downtown Neighbouring Rights, AdRev and Downtown Music Services artist, label services and publishing administration units.
In October, Billboard reported that Downtown’s CD Baby and Soundrop had laid off 28 employees, citing “economic conditions” and “uncertain times” in a company-wide email from chief people officer Love Whelchel.
“This reorganization harmonizes the past several years of strategic investments and divestitures, better positioning us for the future by aligning our talent, resources, technology and services to meet the evolving needs of the music community while at the same time taking into account this period of economic uncertainty,” said a Downtown rep in a statement.
Read the full email to Downtown Music Holdings’ staff below:
Team,
Today we’re sharing some difficult news with all of you. Downtown’s management team has made the decision to reduce the size of our team in certain areas of the organization, specifically CD Baby, Publishing, Songtrust and DMH. Later this morning, we will be meeting with those employees and informing them that their roles will be impacted.
Along with reducing our team size overall and a number of cost-saving measures we have underway, we hope to be able to offer and place some impacted members of our team in other positions within Downtown that will give them a chance to apply their skills and expertise in new ways.
This reorganization harmonizes the past several years of strategic investments and divestitures, better positioning us for the future by aligning our talent, resources, technology and services to meet the evolving needs of the music community while at the same time taking into account this period of economic uncertainty.
We are committed to continuing to communicate about our plans, our business performance, and the results of these changes and remain accountable to all of you for the improvements and the long-term health and strength of our work at Downtown.
Our management, people, operations, legal and communications teams have made every effort to manage this process with as much thoughtfulness, consideration and empathy as possible. We will be meeting with all of you in the coming days to share more directly, plans for each division and will be ready to answer any questions you may have.
Sincerely,
AB
Additional Reporting by Dan Rys
Self-styled “outsider” label Bad Habit has re-upped its joint venture deal with Atlantic Records as it expands its management activities and prepares an entry into the live music space.
The growing business has signed Bay Area rapper G-Eazy to its management arm, Billboard has learned, joining a Bad Habit roster that includes The Neighbourhood, Bakar and Dora Jar.
Additionally, Bad Habit is helming The Vigil, a two-day event taking place April 4-5 in Los Angeles at Masonic Lodge at Hollywood Forever Cemetery, and featuring headline performances from Jesse of The Neighbourhood (night one) and G-Eazy (night two). The Vigil bill also includes Yeek, EKKSTACY, Goody Grace, Fade Em All, Sam Austins and DJ Quinn.
Bad Habit was co-founded in 2015 by New Zealand-born industry veteran Kirk Harding and Nigerian-American producer and creative director Matthew “Baus” Adesuyan. “Following two back-to-back sold-out shows at the Hollywood Bowl in 2021,” with The Neighbourhood and Burna Boy, notes Adesuyan, “we felt inspired to create a platform for our artists to showcase their live sets and to kick-off festival season. We’ve started this year setting up some amazing projects on our management side with G-Eazy, Jesse, and Bakar, and we want to celebrate what’s to come.”
The Atlantic Records alliance is an extension of an arrangement initially struck in 2018. Soon after, the label’s frontline artist Burna Boy went on a tear.
The Nigeria-born Afrobeats artist (real name Damini Ogulu) is a superstar in the U.K., where he’s set to become the first African artist to headline a stadium concert, with a June 3 date at the 60,000-capacity London Stadium. He’s bagged nine top 40 hits in the U.K., including a No. 1 for 2019’s “Own It,” with Stormzy and Ed Sheeran. His sixth and latest studio album, Love, Damini, peaked at No. 2 on the Official U.K. Chart in July.
Career highlights include a Grammy Award for 2020’s Twice as Tall (best global music album), a headline show at New York’s Madison Square Garden in April, and sold-out dates at London’s Wembley Arena in November 2019 and at The O2 Arena in August 2021.
“Julie [Greenwald], Craig [Kallman], and the entire Atlantic team have been incredible partners in helping us bring artists to global stages,” comments Harding. “We greatly admire their shared passion for nurturing amazing talent and developing new voices. We look forward to continuing to grow our label roster with Atlantic”.
Accounting and consulting firm Armanino is adding two veteran music industry organizations to its portfolio, beginning April 1: music business management company Blue Sky Group and rights and royalty auditing firm Royalty Compliance Organization. Terms of the deals were not disclosed.
Blue Sky Group, led by Harlan Hallet and Steven McMillan, and Royalty Compliance Organization, led by Wayne Coleman and Darla Crain, will give Armanino a pair of eight-person staffs steeped in business management experience, royalty compliance, valuation services and litigation support. Hallet began his career as a staff accountant at a business management firm in 1975. His Hallet and Associates was founded in 2004 and folded into Blue Sky Group in 2014. Coleman’s experience in music audits started in 1971 working with country legend Johnny Cash.
“I found Cash some cash,” says Coleman. “He paid me some cash. I thought this was a good business to be in.”
Armanino, one of the 20 largest accounting firm in the U.S., specializes in tax, audit and business management and has more than 2,000 employees in offices around the country. With the two acquisitions, Armanino has about 150 people in its business management group in New York and Los Angeles in addition to Nashville-based Blue Sky Group and St. Louis-based Royalty Compliance Organization, says Craig Manzino, partner, business management at Armanino.
To Manzino, the two new additions better situates Armanino for a music industry where artists can increasingly remain independent but need teams to navigate a complex business. “That idea of breaking away from the majors and doing things on your own as an artist requires a bigger team behind you,” he says. “For us to be able to fulfill that circle of needs around an artist was really important.”
Nashville was a desired location for expansion, according to Manzino. When Hallet moved to Nashville more than two decades ago, “it was just country music,” he says. Today, the genres have expanded beyond country music and many companies have expanded their back-office functions to Nashville from more costly markets. That led Blue Sky Group to get “an array of personnel here dealing with entertainment,” says Harlan, but it’s also made it harder for a smaller firm to lure employees. He believes that partnering with Armanino will help Blue Sky Group attract talent in the hot job market.
“If we think larger in terms of the entertainment industry, these people are becoming brands,” says Manzino. “They’re getting into fashion, not-for-profits, social impact, liquor brands, private donations. To be able to serve people at this level, you can’t be a one-trick pony. You need to provide a full suite of services.”
Generation Z is driving the industry, he says, and smaller firms “aren’t able to offer a lot of the things that this generation wants.” That includes musicians and athletes setting up private foundations to give money to the school districts in their home towns or creating a private foundation for a non-profit. “Being a B Corp” — a certification for a business that meets standards on performance, accountability and transparency on factors ranging from employee benefits to charitable giving — “I think we’re really appealing to our staff and our clients.”
LONDON — An eighth consecutive year of growth is undoubtedly great news for the music business — especially for anyone who worked in the industry during the near-decade of decline brought on by rampant piracy and falling CD sales. But this year’s IFPI “Global Music Report” also demonstrates a slowing rate of growth across all formats and in nearly all established markets.
Here are five takeaways from this year’s report:
Growth Slows Down
Total recorded music revenues climbed to $26.2 billion, up 9% in 2022, which, although impressive, is half of 2021’s growth, when revenues were up 18.5%. Paid-for streaming subscription revenue rose 10.3% to $12.7 billion in 2022, compared with a 21.9% year-on-year jump in 2021.
Total streaming (including paid subscription and advertising-supported) was up 11.5% to $17.5 billion, versus a rise of 24% the prior year.
Physical format revenue climbed 4%, compared to 16% in 2021, while music sales in the world’s three biggest markets — the United States, Japan and United Kingdom — all grew by around 5% last year, compared with double-digit gains for the U.S. and U.K. in 2021 (+22.6% and +13.2% respectively) and a rise of 9.3% in Japan.
IFPI attributed the slowing to 2021’s exceptional growth, which it said was partly fueled by a post-pandemic bounce back in music consumption, and execs at a London launch event Tuesday said they were confident the market was not about to plateau.
“I do think there are pockets of established markets where there is an opportunity to grow,” said Simon Robson, head of Warner Music Group’s international recorded music operations outside the U.S. and the U.K. He cited France as a major music market where streaming subscription penetration rates remain under 20%. “The challenge for today is how we better monetize other forms of music consumption,” he added, noting that “it would help if music subscription pricing could reflect the realities of inflation, which, as we’ve seen with video streaming services, have been putting up their prices quite significantly.”
When Robots Take Over
The future role that artificial intelligence (AI) will play in the record business was raised several times at the London launch event, with executives keen to highlight the technology’s potential for commercial growth, as well as some of the risks and challenges it brings. Some executives saw potential benefits in using AI to better analyze and understand fan engagement trends and artist discovery (something which platforms and music companies are already doing) and optimizing technical aspects of music production, including immersive sound.
On the flip side, execs issued a stark warning about human artistry being devalued at the expense of technology. AI developers, they said, could fail to respect the rights of creators by using artist recordings to generate new content without authorization – a threat that Michael Nash, executive vp, chief digital officer at Universal Music Group, said he placed “at the top” of industry issues that need to be addressed. “We need to work very hard to define new models so that we can enable generative AI without looking away from what is essentially going to be wholesale hijacking of the intellectual property of the entire creative community,” wrote Nash in IFPI’s “Global Music Report” document.
Streaming May Dominate, But Physical Is Far From Dead
Having enjoyed a post-pandemic renaissance in 2021 — when sales of CDs increased for the first time this millennium and overall physical sales grew 16.1% — physical format revenue continued to be surprisingly resilient last year, rising 4% to $4.6 billion. It was the second consecutive year of growth for the format, once considered dead. Almost half (49.8%) of those global revenues came from Asia, where the humble CD remains a popular music purchase, particularly in South Korea and Japan, the region’s largest music market and world’s second biggest behind the U.S.
Vinyl revenues’ upward trajectory also continued, rising 17.1% over 2021, and while global CD sales slipped 0.4% year-on-year (IFPI didn’t provide financial values for CD or vinyl income), physical revenues still accounted for 17.5% of the overall recorded music market last year. That’s just under what ad-supported streams generate for labels and rights holders (representing 18.7% of global sales) and more than the combined haul from sync, performance rights and digital downloads.
All Eyes Turn Towards Africa
Sub-Saharan Africa overtook the Middle East and North Africa as the fastest growing region in 2022, with music sales rising almost 35% year-over-year, reports IFPI. Driving that growth was South Africa’s thriving music industry, Africa’s biggest market, which climbed by more than 31% last year, compared to modest 2.4% growth in 2021.
Nevertheless, the challenge of converting users of ad-based music services to paid subscription remains a considerable one, said Temi Adeniji, president of Warner Music Africa, with South Africa having around 4 million paid subscribers out of a population of nearly 50 million people. Adeniji said the burgeoning global popularity of Amapiano, a genre which originated in South Africa, was already producing crossover hits in markets like Nigeria. She predicts “an infusion of Amapiano elements” into other international music scenes over the next few years to further drive the region’s development as a key music territory.
China Climbs to Become a Top-Five Music Power
For years, music executives have talked up China — the world’s most populous country, home to 1.4 billion people, according to China’s National Bureau of Statistics – as a huge music market in waiting. In 2022, that potential was finally realized with China usurping France (a long-time mainstay in the upper echelons of the world music market rankings) as the fifth-biggest music market worldwide with revenues of $1.2 billion, up 28.4% year-on-year, according to IFPI. That’s on the back of 30% growth in 2021, when China was the world’s sixth-biggest music market.
The dominance of local streaming services QQ Music, Kugou Music, Kuwo Music, which are all owned by China-based Tencent Music Entertainment (TME, which publishes Billboard China), means that Western and international acts rarely feature on China’s many of domestic charts, which includes some run by China’s state-owned broadcaster. But the popularity of domestic pop stars like Jay Chou, Yisa Yu, Mao Buyi, Zhou Shen and Jackson Wang is now rapidly driving subscription take up in a country rife with piracy on a decade ago. TME’s most recent company filings report 85.3 million paying music users as of the third quarter of 2022.
Everydaydreamer, a purpose-driven creative studio specializing in music video/content commissioning and creative direction/production, is launching a new workshop series specifically for women and non-binary people of color, the company tells Billboard.
Dubbed SheMadeIt, the music video and content director workshop aims to “challenge the status quo in this field” and “make the entertainment industry a more equitable space,” according to a press release. The workshop series will offer intensive experiential opportunities, educational seminars and networking for underrepresented voices to gain access to mentorship and work opportunities. SheMadeIt is launching the series in partnership with Kids of Immigrants, Above Ground, Nowhere, Merman and Youth Mentoring Connection.
“There is a real need for new entry points for underserved and underrepresented talents to be showcased in the directorial and content space,” said Everydaydreamer and SheMadeIt founder Shadeh Smith in a statement. “We have gathered some of the most experienced, talented and respected creative professionals in this field, all with the collective commitment to cultivate new, burgeoning talent. Ultimately, we are dedicated to re-shaping the entertainment industry to be a space of equity, inclusion, and representation for all artists, especially those who aren’t given adequate access to the resources and platforms they need to thrive.”
Courtesy Photo
The first SheMadeIt workshop will take place in Los Angeles from April 28-30 and feature industry panels, practical assignments and access to long-term opportunities for 10 participants(applications will be available here starting Friday, March 24). Additional series are set to take place in London and New York, with details to be announced soon.
Panelists and mentors confirmed for the Los Angeles workshop include Kehlani (artist), Diallo Marvel (global creative director, Beats), Alex Thurmond (creative director), Alli Maxwell (executive producer, Somesuch Productions), Devon Libran (senior vp, Republic Records) Laura Tunstall (managing partner, Nowhere), Daniel Buezo (CEO, Kids of Immigrants), David Ali (CEO, Above Ground and artist manager), Ana Julfayan (executive producer), Kevin Kloeker (vp of creative & content development, Capitol Records), Kira Carstensen (managing partner, Merman), Dani Edgren (creative producer), Anna Heinrich (executive producer, Obsidian), Zsuzsa Cook (artist manager), Karine Benzaria (producer/writer), Emmanuelle Cuny (senior vp/head of visual creative & production, Motown Records), Byron Atienza (creative director) and Monica Kran (talent partnerships).
Full entry requirements and applications are available at www.everydaydreamer.co/shemadeit.
Global music sales rose for the eighth consecutive year in 2022, with recorded music revenues growing in every world market and across almost all formats, according to the International Federation of the Phonographic Industry’s (IFPI) “Global Music Report 2023.”
Total revenues climbed to $26.2 billion, a rise of 9% on the previous year. Although that rate of growth is half 2021 year’s rise, when revenues were up 18.5% year-on-year, IFPI said it was still the fourth highest growth level the recorded music business has seen this millennium.
The leading driver of growth was a 10.3% rise in paid-for streaming subscription revenue, which totaled $12.7 billion last year. IFPI reports there were 589 million users of paid subscription accounts at the end of 2022, up from 523 million in the previous 12 months and 443 million in 2020.
Streaming (including paid subscription and advertising-supported) now accounts for 67% of sales across the music industry, up from 65% in 2021 and 62% in 2020, although rate of growth is slowing.
In 2021, streaming revenues rocketed 24% to $16.9 billion. Last year, total revenues streaming revenues increased 11.5% to $17.5 billion.
Despite the dominance of streaming, physical music formats continue to be resilient with CD and vinyl revenues increasing for a second consecutive year — albeit at a slower rate than 2021’s 16.1% rise, fueled by a post-pandemic boom in home music purchases — to $4.6 billion, up 4% on the prior year.
Within physical music revenues, last year’s growth in CD sales proved to be a fleeting uplift with revenues falling 0.4% in 2022. Vinyl revenues shot up 17.1% (IFPI did not provide revenue numbers for CD or vinyl sales).
In terms of market share, physical accounted for 17.5% of the overall market last year (down from 19.2% in 2021) with Asia generating almost half (49.8%) of all global revenues for physical music sales.
Performance rights revenue climbed 8.6% to $2.5 billion, representing 9.4% of global revenues, while sync income was up 22.3% to $0.6 billion, representing 2.4%.
Downloads and what IFPI classifies as other (non-streaming) digital formats was once again the only format channel to record a decline, falling 11.7% to $900 million and representing just 3.6% of the global market.
As per previous year’s reports, IFPI uses current exchange rates when compiling its Global Music Report, restating all historic local currency values on an annual basis. Market values therefore vary retrospectively as a result of foreign currency movements, says IFPI, which represents more than 8,000 record company members worldwide, including all three major labels, Universal Music Group, Sony Music Entertainment and Warner Music Group.
Thanks to sustained growth in streaming, global recorded music revenues have now reached their highest level since 1999 — when music sales totaled $22.3 billion – on an absolute dollar basis, not accounting for inflation, reports IFPI. Piracy and declining physical sales saw the market bottom out at $13.1 billion in 2014.
“Record companies’ investment and innovation has helped make music even more globally interconnected than ever,” said IFPI chief executive Frances Moore in a statement, accompanying the report.
As the music economy grows, however, “so too do the areas in which record companies must work to ensure that the value of the music artists are creating is recognized and returned,” Moore warned.
Referring to the ongoing threat of music piracy, she said the challenges for record companies, artists and creators are “becoming increasingly complex as a greater number of actors seek to benefit from music whilst playing no part in investing in and developing it.”
Writing in the report’s foreword, Universal Music Group chairman and CEO Sir Lucian Grainge said “to succeed, music’s future must be artist-centric.” He called on the industry to focus on building a “robust, growing and sustainable music ecosystem” in which “creators of all music content, whether in the form of audio or short-form video, are fairly compensated and can therefore thrive for decades to come.”
IFPI’s Global Music Report 2023 Topline Figures:
Global music sales up 9% to $26.2 billion
Streaming subscription revenues up 10.3% to $12.7 billion
Total streaming revenues (including paid and ad-supported) up 11.5% to $17.5 billion
Physical revenues up 4% to $4.6 billion
Performance rights revenues rise 8.6% to $2.5 billion
589 million paid music subscribers
Streaming’s share of global music sales: 67%
In terms of world markets, the U.S. retains its number one position with music sales growing 4.8% and exceeding $10 billion in recorded music sales for the first time.
Japan holds steady in second place with sales growing 5.4% in 2022. The third and fourth-biggest markets for recorded music remain the United Kingdom (+5.4%) and Germany (+2.2%), respectively.
The rest of the top 10 is made up of China (+28.4%), which becomes a top five global market for the first time, France (+7.7%), South Korea, Canada (+8.1%), Brazil (+15.4%) and Australia (+8.1%).
IFPI said that music sales were up in all 62 of the global markets it tracks. The organization’s free-to-access report does not provide market-by-market revenue breakdowns.
On a regional basis, it was a similar story with revenues from the U.S. and Canada region up 5%, while Latin America – where streaming now accounts for 85.2% of the market — saw growth of 25.9%
The fastest-growing market region in 2022 was Sub-Saharan Africa, which recorded a 34.7% rise in music sales, largely driven by the booming music market in South Africa, where sales were up by more than 30% year-on-year.
Revenues in Middle East and North Africa, last year’s fastest growing region, rose by almost 24%, driven almost entirely by streaming, which has 95.5% share of the region’s recorded music market – the highest share for any region worldwide, reports IFPI.
Revenues in Europe, the second-largest recorded music region in the world after the U.S. and Canada, grew by 7.5% — compared to the prior year’s growth rate of 15.4% — driven by gains in Europe’s three biggest markets, the U.K., Germany and France. Asia grew by 15.4%.