Business News
Page: 21
Concord is raising $850 million through an existing asset-backed security (ABS), according to a new report by Kroll Bond Rating Agency (KBRA). These new notes are the third series of notes of a $2.6 billion ABS. The proceeds will be used to acquire approximately $217 million of assets that will be contributed to the ABS’s collateral […]
Billboard‘s data partner Luminate has launched a new tool designed to measure artists’ influence for brand partnerships and more, the company announced Tuesday (Oct. 8).
Informed by Luminate’s industry-leading streaming data — which is pulled from all major music streaming platforms including Spotify, Apple Music and Amazon Music — along with its global consumer research insights, the tool, dubbed the Luminate Index, will provide “influence scores” for artists based on five areas: their music streaming footprint; their social media footprint; public awareness of the artist; their public appeal; and overall fan engagement in relation to their live shows and other events.
The tool was developed to allow brands, agencies, labels and others to help evaluate artists in terms of partnerships, endorsements, marketing campaigns, creative integration and more.
Trending on Billboard
According to Luminate, the 10 highest artist scores from the first iteration of the Luminate index for Q3 of 2024 are (out of 100):
Taylor Swift, 100
Adele, 92
Beyoncé, 91
Elton John, 90
Rihanna, 90
Eminem, 89
Shakira, 88
Ariana Grande, 88
Lady Gaga, 88
Dolly Parton, 87
In addition to the announcement of the index, Luminate revealed a new deal through which it will provide high-level insights and consultation to Sony Audio. According to a press release, Luminate has been “tasked with aligning deeper cultural connections between the [Sony] brand with relevant audiences across all forms of entertainment.”
“Existing at the center of all things entertainment and data, Luminate is uniquely positioned to see and analyze information that is invaluable in identifying cultural trends,” said Rob Jonas, CEO at Luminate, in a statement. “Beyond measurement, a job we take very seriously when it comes to verifying final data for the weekly Billboard Charts and the new Streaming Original Charts with Variety, we are a company that can extract insights across all areas of entertainment and fan engagement. Our goal with this new tool is to provide artists, brands, labels, talent representatives and more with intelligence that will allow them to make more informed business decisions.”
Added Jordy Freed, head of brand, business development & strategy, personal entertainment business at Sony Corporation of America: “As an audio brand heavily focused on music, entertainment, and culture, verifiable proprietary data has never been more important given the current speed of trends. Luminate is a proven leader in harnessing data and insights to demonstrate tangible customer behavior across music, film, and television. We are incredibly excited to be a ‘Day-One’ Luminate brand partner, which equips us with invaluable tools to strengthen our cultural compass and benchmark our investments connecting to fandoms.”
You can learn more about the Luminate Index here.
Chhris Moncada has been promoted to COO at MNRK Music Group, effective immediately. Based in Toronto, Moncada will oversee all day-to-day operations at MNRK, develop and implement business strategies, and drive strategic growth initiatives with a focus on A&R, artist development and catalog growth. He will work across MNRK offices in New York, Nashville, Toronto […]
Chinese music streaming companies had another big week after authorities unveiled an economic stimulus plan that will encourage the purchase of Chinese equities, with Cloud Music gaining 10.7% to 134.50 HKD ($17.32) and Tencent Music Entertainment rising 9.9% to $13.48. Last week, Cloud Music and Tencent Music gained 31.5% and 24.6%, respectively.
The Billboard Global Music Index (BGMI) increased 0.4% to 1,964.44, a fourth-consecutive weekly gain and the third straight week the index set a new record high. With winners and losers evenly split amongst the index’s 20 stocks, the BMGI improved its year-to-date gain to 28.1%.
Outside of China, where the Shanghai Composite Index rose 8.1% to 3,336.50, stocks were generally muted this week as investors were uncertain about how the widening war in the Middle East would affect the global economy. Oil prices increased 10% this week in part due to President Joe Biden’s comment that the U.S. was discussing possible strikes by Israel on Iranian oil production sites. Prices remained well below levels reached following Russia’s invasion of Ukraine in February 2022, however.
Trending on Billboard
In the U.S., the Nasdaq composite rose 0.1% and the S&P 500 gained 0.2%. In the U.K., the FTSE 100 fell 0.5% to 8,280.63. South Korea’s KOSPI composite index dropped 3.0% to 2,569.71.
iHeartMedia was the BGMI’s biggest gainer of the week, rising 15.2% to $1.97; the radio company’s shares have fallen 3.9% year to date but have risen 142% since hitting a 52-week low of $0.813 on May 28. Elsewhere, the index’s most valuable companies had either modest gains or losses. Live Nation gained 2.0% to $110.87. Spotify rose 0.6% to $371.45. HYBE increased 0.3% to 173,500 KRW ($128.82). Universal Music Group fell 2.0% to 23.37 euros ($25.66).
Sphere Entertainment Co. shares rose 4.4% to $45.26 as Wolfe Research upgraded the company on Wednesday (Oct. 2) to “outperform.” The company’s flagship venue, Sphere in Las Vegas, has added more shows to existing residencies. The Eagles will perform four additional shows in February, bringing its residency to 24 dates. In addition, Anyma added dates on Jan. 10 and 11 — the seventh and eighth shows at the venue for the Italian producer, who will break a string of legacy rock bands to become the first EDM artist to perform at Sphere.
Guggenheim reiterated its “buy” rating on Warner Music Group (WMG) and slightly lowered its estimate for ad-supported streaming revenue ahead of the company’s fiscal fourth-quarter earnings. BofA Securities downgraded WMG to “underperform” from “neutral” on Friday and lowered its price target to $30 from $33. WMG shares finished the week at $31.14, down 0.2%.
LiveOne shares fell 35.8% after the company lowered its fiscal 2025 guidance following a revised partnership with Tesla in which the auto manufacturer will no longer subsidize some customers’ in-auto streaming platform powered by LiveOne’s Slacker Radio. The Los Angeles-based company’s stock has fallen 51.4% year to date.
K-pop stocks, which have fallen sharply in 2024, were muted this week. HYBE, YG Entertainment, SM Entertainment and JYP Entertainment fell by an average of 0.1%, which nudged their average year-to-date loss down to 32.0%.
Billboard
Billboard
Billboard
Festival creator Jeff Shuman has resigned from Live Nation, abruptly ending a successful three-year run that saw the 40-year-old launch a half-dozen festival brands, kicking off a race with rival promoter (and Shuman’s former partner) Goldenvoice to conquer the red-hot post-pandemic mini-festival market.
During his relatively brief run at Live Nation, Shuman built the company’s nostalgia-heavy lineup of one-day mini-festivals — events like the nu-metal and hard rock-driven Sick New World festival; the R&B-heavy Lovers and Friends and Fool in Love festivals; and the gangster rap-focused Once Upon a Time in LA.
Those events — part of Live Nations’s highly successful move into mini-festivals at the end of the COVID-19 pandemic — generated tens of millions of dollars in sales for Live Nation. Shuman briefly became the most successful concert promoter at the company, often besting the AEG-owned Goldenvoice on its own Los Angeles turf.
Trending on Billboard
(Neither Live Nation nor Shuman returned messages seeking comment for this story.)
But Shuman often clashed with company officials, and in recent months faced several costly cancellations including the shutdown of the Lovers and Friends festival in May in Las Vegas due to dangerously high winds. The costs of the cancellation, coupled with weaker-than-expected ticket sales for Fool in Love and the Latin-focused Bésame Mucho, which is set to take place in December at Dodger Stadium, ultimately led to Shuman’s exit.
“He was a complicated guy,” said one Live Nation executive who didn’t want to speak on the record. “He is extremely private and largely a ghost that you never see or hear from until he hucks a grenade in the room. He’s not afraid to pick a fight with anyone and didn’t have many allies at the end.”
Shuman would book dozens, sometimes hundreds, of artists for one of his genre-specific mini-festivals and work with artists like Usher or System of a Down to curate lineups that were heavy on nostalgia. The inaugural When We Were Young Festival in 2022, headlined by My Chemical Romance and Paramore, focused on late 2000s emo, punk and alternative, with 68 bands performing for more than 60,000 fans in a single day. That single-day event, initially scheduled for Oct. 22, 2022, was then repeated on Oct. 23, 2022, and then again on Oct. 29, 2022.
With tickets priced between $225 and $325, When We Were Young grossed more than $50 million in ticket sales over three days, far outperforming expectations. But the festival business is highly susceptible to the risk of severe weather, and a few hours of dangerous wind, rain or heat can cause an event’s cancellation. Those cancellations can trigger customer refunds, artist kill fees and costly lawsuits that quickly eat away at profits, even if those losses are partially covered by event cancellation insurance.
Since joining Live Nation, Shuman has faced several weather cancellations, including the costly cancellation of the 2024 edition of the Lover and Friends festival.
Shuman’s events have also seen sales slow as ticket prices rise — the 2024 edition of the When We Were Young Festival, headlined by My Chemical Romance, sold out the first day, Oct. 19, but still has plenty of tickets available for the Oct. 20 edition. GA ticket prices for this year’s festival start at $336 plus fees, with GA+ tickets priced at $521 + fees and VIP tickets selling for $618. That’s up from 2023 when tickets were priced at GA $249.99 plus fees, GA+ for $419.99 and VIP tickets for $519.99.
Where Shuman goes next is unclear, but he likely won’t return to Goldenvoice, where he worked from 2015 to 2020 after Live Nation purchased the Observatory in Santa Ana, Calif., which he booked for several years. Shuman’s exit from Goldenvoice reportedly followed a series of financial disagreements that left the two sides on bad terms, kicking off a rivalry between them when he headed to Live Nation.
“The fact that he’s quit both AEG and Live Nation means he doesn’t have a ton of options,” said one source who has worked for both companies. “There are other companies that create festivals, but Jeff’s festivals each had $8 to $12 million dollar budgets and he’s going to have a hard time finding someone else that can write that kind of check.”
Welcome to the latest spin ’round the Executive Turntable, Billboard’s comprehensive(ish) compendium of promotions, hirings, exits and firings — and all things in between — across music.
We’ve seen the departure of Spotify’s global head of music and a changing of the guard at Verve, but otherwise it’s been a fairly quiet week. Read on for [mostly] good news and also check out Billboard‘s just-released annual list of Latin music’s most powerful executives, plus our weekly interview series spotlighting a single executive, our helpful calendar of notable events, and have you ever wanted to look at tchotchkes inside the office of an executive while reading their in-depth answers to the most important questions facing the biz? From the Desk Of is probably your jam.
Aric Steinberg has been elevated to executive director of Sweet Relief Musicians Fund, the 30-year-old non-profit that delivers a lifeline to musicians and industry types facing financial hardships due to illness, disabilities or other challenges. Founded by folk singer-songwriter Victoria Williams in 1994 following the release of a star-studded benefit album on her behalf, the charity offers financial assistance to artists, composers, road crew, agents and others in the form of grants to cover essential expenses ranging from medical bills to housing and food. The LA-based Steinberg joined Sweet Relief in 2010 and most recently served as executive vp of development and artist relations, though he has been essentially filling the role since the 2017 passing of former director Rob Max. “It is long overdue that in 2024 we are officially giving Aric the title of executive director … as he has been embodying that position for many years now,” noted fund president Bill Bennett. “I look forward to an extraordinary future with Aric where Sweet Relief will continue to help more and more musicians and music industry workers in need.”
Trending on Billboard
Sweet Relief has assisted a wide range of artists over the years, most recently Sick of It All frontman Lou Koller and singer-songwriter Jesse Malin — who both have benefit concerts planned for them later this year. “I see a bright future for Sweet Relief as we continue to grow and help more musicians and music industry professionals every year,” said Steinberg. “This 30th anniversary year has been our best ever, and I look forward to serving the community in the years to come.”
Meanwhile…
Alen Torosyan is promoted to general manager of Warner Music Emerging Markets, effective Oct. 1, while Jonathan Jules has joined as vice president of creative. Both will report to Alfonso Perez Soto, president of emerging markets. This division is home to artists including Calin, Diljit Dosanjh and Joeboy, and covers rapidly growing regions such as Africa, Eastern Europe, India, and the Middle East, which have expanded through strategic investments and partnerships. Torosyan, with over a decade at Warner Music, was previously vp of operations for the division. Jules, formerly vp of international marketing and operations at EMPIRE, will now drive strategic leadership to WMEM’s A&R and marketing teams. Perez Soto praised Torosyan’s “unflappable” ability to multitask and carry out detail-oriented projects “without losing his forensic focus on detail,” and lauded Jules’ entrepreneurial drive and “ability to read the shifting sands of culture and music, anticipating tomorrow’s trends.” Perez Soto added: “Together, they’ll help us superserve artists and rapidly grow our business.”
Sony Music Publishing hired Caroline Elleray as vice president of creative, songwriter services, effective immediately. In this role, Elleray will lead efforts to support songwriters, manage catalogs and collaborate with global creative teams to explore new growth opportunities. The London-based Elleray reports to co-managing directors Tim Major and David Ventura. With over two decades of experience in music publishing, including previous stints at UMPG and BMG, she has discovered and developed artists like Coldplay, Keane, Feist, Rex Orange County and Mumford & Sons. Alongside her new role at SMP, Elleray will continue managing Second Songs, a publishing and management venture she co-founded in 2022 with Mark Gale. Second Songs, in partnership with SMP UK, represents talents like Victoria Canal and songwriters Matt Hales and Dan Green. “Her track record, the songwriters and artists she has worked with speak for themselves, showcasing her immense and relentless dedication for music creators,” said Ventura, who is also SMP UK’s president and svp of international.
Nashville-based record label New West Records promoted Tommy Robinson to general manager and vp of sales, while Brady Block was boosted to senior vp of media and reissues producer. Katie Keller has been upped to vp of project management, while Meg Barron rises to director of A&R and publishing. Brooke Nixon joins as vp of digital marketing, following a role as director of streaming at Big Machine Label Group imprint The Valory Music Co. New West’s current roster includes Aaron Lee Tasjan, 49 Winchester, Ben Folds, American Aquarium and more. –Jessica Nicholson
Universal Music Finland appointed veteran executive Petri Mannonen to CEO, effective immediately. Mannonen joined UMG in 2010 as a commercial director and in 2017 expanded his responsibilities to include overseeing operations in the Baltics (Estonia, Latvia, and Lithuania). Prior to Universal, he was CEO of Viasat Finland (now Viaplay), a pay television company. The UMF roster includes KUUMAA, Mirella and Robin Packale, among others. “The Finnish music market is in a really interesting situation at the moment,” said Mannonen. “Music is now easier to release than ever, and as the selection grows, the role of major record labels is also emphasized. Our job is to focus on building long-term artist careers while taking care of artists. We want to offer our current and future artists a creative and professional place to grow and develop while making sure that their music reaches the right audiences.”
FUGA, the Downtown-owned B2B music distributor, promoted Renato Vanzella to general manager of LATAM, expanding his previous role as GM of Brazil to oversee operations in Argentina, Brazil, Colombia and Mexico. Vanzella will focus on business development, client relations, and partnerships with DSPs, reporting to Sarah Landy, the senior vp for the Americas. Since joining FUGA in 2019, Vanzella has significantly grown the team and secured key clients, including Elemess, MJC Music, Beeside Records, and Radar Records. Landy praised Renato Vanzella’s promotion, highlighting his “exceptional strategic vision and leadership” over the years. “Renato consistently has demonstrated a deep understanding of the local music landscape, and his passion for collaboration and client service has earned him the respect of our team and our partners,” she said.
Armada Music appointed Susanne Hazendonk as head of catalog, bringing over 15 years of industry experience from Spinnin’ Records and Warner Music Benelux. Having worked with top dance artists such as Lucas & Steve, Sam Feldt and Afrojack, as well as hitmakers like Bruno Mars and The Red Hot Chili Peppers, Hazendonk is well-versed in both dance music and big ol’ hits. She’ll report directly to COO Jop Bonnike, leading marketing and storytelling efforts and overseeing the expansion of Armada’s catalog department and acquisitions through the BEAT Music Fund. Bonnike praise Hazendonk’s “unwavering passion and infectious enthusiasm for dance music, adding, “As we continue to prioritize the growth and evolution of our catalog department, we’re looking forward to working alongside Susanne to seize new opportunities in the market.”
Big Loud Rock added Zach Siegal-Eisman as vice president of digital and viral marketing, overseeing the imprint’s digital marketing strategy and execution, as well as artist growth and digital presence of both upcoming and catalog record releases. Earlier this year, Siegal-Eisman launched the marketing consultancy Amplify Legacy and previously worked at social media agency Crowd Surf and at Artist Network Management. –J.N.
BOARD SHORTS: The Music Managers Forum appointed Niamh Byrne as chair and Jill Hollywood as vice chair, succeeding Paul Craig and Kwame Kwaten, respectively, who recently stepped down after serving two three-year terms. Byrne, co-founder of Eleven Management, has made a mark with artists including Damon Albarn, Blur and Gorillaz. She brings a wealth of experience, having held roles at Universal Music UK and her consultancy firm The Engine Room. Hollywood, founder of Echo Beach Management, has managed both legendary producers and emerging talents, including current roster Jacknife Lee, Ash Howes and Ash Workman. Hollywood previously spent over a decade at Big Life Management. MMF also said that Theory Management’s Hide Whone is joining the board, replacing Clare Wright … Newport Folk launched the Newport Folk Stewardship Program, designed to recognize individuals who have significantly contributed to Newport’s legacy and challenge the “Folk Family” to innovate for the future. The first appointee is St. Louis-born Americana artist Nathaniel Rateliff, who’ll focus on artist advocacy, mentorship and fellowship, both within the Newport Folk community and beyond. He’ll serve a three-year term, with two years as an active steward and one as an advisor to his successor.
Nettwerk welcomed Ruth Wyatt as director of sync for UK and Europe, bringing her experience from Warner Music UK, where she successfully placed artists in various sync opportunities. Her notable achievements include Sam Ryder’s “Christmas To Me.” Wyatt said she’s looking forward to helping Network build out its sync opportunities across the UK and Europe, adding, “It’s never been a more exciting time to be in the sync space, with more productions being made than ever before and we’re witnessing breakout productions from the Nordics, Spain, Germany, France Australia, all of which are attracting overwhelmingly international audiences, subsequently creating global impact for our artists.” Nettwerk co-founder Mark Jowett, said Wyatt’s “expertise in achieving syncs is matched only by her passion for supporting great music and artists.”
Alphabeats, a startup using music and neurofeedback tech to help athletes improve mental acuity, announced that chief commercial officer and U.S. president Jorrit DeVries will assume the role of global CEO. Current chief Han Dirkx, one of alphabeats’ three co-founders along with DeVries, will move into the role of chief operating officer and lead the company’s product, research and development, and technology teams based in The Netherlands. As U.S. president, DeVries has overseen sales, marketing, product development and fundraising. Prior to joining alphabeats, he was global head of category development at Spotify, and he has also held senior roles at Samsung, Vodafone and Warner Music, leading teams in the U.S. and Europe.
ICYMI:
Jeremy Erlich
Verve Label Group promoted Jamie Krents to CEO and president, and Dawn Olejar to chief operating officer … Harvey Mason Jr. isn’t going anywhere … Republic appointed Mary Catherine Kinney as executive vp of artist & label strategy … Alicia Arauzo and Luis Fernández are the new co-managing directors of Universal Music Spain … Jeremy Erlich will be leaving his position as Spotify’s global head of music … and Narcís Rebollo has been appointed CEO and president of UMG’s spun-out Global Talent Services. [MORE]
Last Week’s Turntable: An Old Friend Returns to Budd
Independent music trade bodies have hit out at TikTok for boycotting collective license talks with Merlin by seeking to strike direct deals with its indie label members, accusing the platform of trying to divide the sector and “drive down the value” of music.
Licensing talks between TikTok and Merlin, which negotiates digital licenses for a coalition of more than 30,000 independent labels and music companies, representing 15% of the global recorded music market, abruptly ended late last month when “TikTok walked away before negotiations even began,” according to a letter Merlin sent to its members on Friday (Sept. 27).
The London-headquartered indie rights organization, which counts the labels 4AD, Domino, Matador, Subpop, Partisan, Warp, XL Recordings and Secretly Group among its members, said that TikTok told them that it would not be renewing its license deal, due to expire Oct. 31, and was instead looking to licence its members directly.
Trending on Billboard
A spokesperson for TikTok confirmed Monday (Oct. 1) that it was “committed to entering into direct deals with Merlin members in order to keep their music on TikTok.”
One of the reasons TikTok has given for not renegotiating its deal with Merlin is its concerns over alleged streaming fraud, which a TikTok spokesperson told Billboard specifically relates to a handful of Merlin members delivering songs or remixes of songs that they don’t own the rights to.
Addressing those allegations, Merlin told members it has worked “productively and collaboratively with TikTok” on streaming manipulation and fraudulent content “and until now, no concerns have been raised.”
Executives and trade bodies from across the independent music sector have also called into question TikTok’s reasoning for not renewing its deal with Merlin, while also slamming its attempts to boycott collective licensing with the company.
Brussels-based independent labels trade body IMPALA, which represents over 6,000 indie music companies in Europe and has previously criticized TikTok for the low returns it pays to rightsholders, said it strongly opposed TikTok’s attempts to boycott Merlin.
“Given the timing, it seems clear that TikTok’s real intention is to fragment the sector and drive down the value of independent music, rather than deal with streaming manipulation,” said Mark Kitcatt, chair of IMPALA’s streaming group, in a statement on Thursday (Oct. 3).
“Record labels have entrusted their rights to Merlin to negotiate on their behalf and by TikTok going directly to rights holders they are disrespecting the licensing agreements that are in place,” added Dan Waite, chair of IMPALA’s digital committee. “Like a supermarket chain negotiating directly with individual farmers for the price of their milk, it’s difficult to see how this can work out in the farmers’ favour.”
Referencing TikTok’s cited concerns around streaming manipulation, IMPALA’s executive chair Helen Smith questioned how seeking direct deals with Merlin members would better address the issue than renewing a collective license. “This feels like a smoke screen for boycotting Merlin given the history and the timing and the fact the whole industry is working hard on this important issue,” said Smith in a statement.
“TikTok’s claim that leaving Merlin would alleviate fraud is technically and effectively incorrect,” Gee Davy, interim CEO of the U.K.-based Association of Independent Music (AIM), tells Billboard. She claims that TikTok can already choose which music catalogs it uploads through the Merlin deal, and stresses it is by the industry working together “and TikTok re-engaging with Merlin that the industry will fight online fraud.”
“The resource required to close deals and manage a large number of independent music relationships, take down unlicensed music, and handle fraud separately across a number of participants would surely outweigh any gains,” says Davy. “And that’s aside from any reputational issues that arise from TikTok claiming to respect independent music while in practice showing that they don’t respect the licensing choices of independent music businesses.
“Many smaller labels and artists will be locked out of any direct licensing, which will sour relations as well as set back many years of work by Merlin, AIM and others in improving equitable access to the market and diversity of music available to consumers. We urge TikTok to speak to us and consider the bigger picture and; most of all, to recognise the inadvertent damage their actions have caused and return to discussions with Merlin.”
Those sentiments were echoed by Dr. Richard Burgess, president of the American Association of Independent Music (A2IM), who earlier this week told Billboard: “TikTok’s refusal to negotiate a deal with Merlin isn’t just a setback — it’s a threat to the whole music ecosystem.” Burgess said the dispute “isn’t just about Merlin; it’s about properly recognizing the value of artists and their music.”
The Brussels-based International Music Publishers Forum (IMPF) has also urged TikTok to reengage and strike a licensing agreement with Merlin, calling its attempts to “circumnavigate” collective licensing “a thinly veiled attempt to divide independent labels and drive down the price of music.”
“Merlin’s members have entrusted their rights to the organisation in order to uphold transparency, efficiency and fair remuneration. That must be respected,” said IMPF in a statement.
Merlin is the third music organization this year, after Universal Music Group (UMG) and the National Music Publishers’ Association (NMPA), to express challenges in renewing music licenses with TikTok. In February, UMG’s failure to reach a deal with TikTok led to the removal of its entire catalog of hits from TikTok for about three months.
In April, after publicly supporting UMG’s position against TikTok, the NMPA allowed its TikTok license, which was used by a number of indie publishers, to lapse as well. It has not been renewed. A spokesperson for TikTok says that many of the indie publishers have now established their own direct licenses with the short-form app.
Unless a swift resolution can be found between TikTok and Merlin — or Merlin’s label members choose to negotiate individual license deals with the ByteDance-owned platform — hit songs from artists like Nirvana, Phoebe Bridgers, Diplo, The Lumineers, Mac Demarco, Madlib, Mitski, Thundercat, Wet Leg and Coolio could start to be removed from TikTok on Nov. 1.
From CDs to streaming to AI, new technology has had an outsized impact on the music industry for decades — and Venice Music founder/CEO Troy Carter predicts the next big technological shift will come in the form of synthetic artists.
At a panel titled “The Future of Streaming” at the inaugural Trapital Summit in Hollywood on Thursday (Oct. 3), Carter said he does not believe audiences will be able to tell the difference between physical artists and their holographic images in the coming years — and that those lifelike holograms represent the next big revenue generator in music.
To illustrate his point, Carter highlighted what Industrial Light & Magic created for the ABBA Voyage holographic concerts in London. “In terms of live experience, it’s a combination of artificial intelligence and high-end holographic imaging that seems real. The audience won’t be able to tell the difference,” said Carter. “When you go to whatever streaming service, you won’t be able to tell whether that is a human artist or a synthetic artist. When you go to see them live, you won’t be able to tell if it is a human artist or synthetic artist. And the audience won’t care.”
Trending on Billboard
The bold prediction from the former Spotify executive stemmed from Trapital founder and moderator Dan Runcie’s question about what will replace streaming in the music consumption hierarchy as the technology reaches its saturation point.
While Carter stated that the ascension of synthetic artists will take away from “the purity that our industry thrives on…the genie is out of the bottle and the audience doesn’t care,” he said. “They’re going to gravitate towards it and it’s going to be hugely competitive with what legacy music is today.”
The use of synthetic artists, Carter believes, will be beneficial to both human artists and the wider industry due to its scale. By employing them, he said, “you could do [live experiences and recorded music] in every language. You could do it in all parts of the world. Then there are ways for real artists to be able to use that technology to be able to scale their businesses, as well.”
The discussion followed Carter’s thoughts earlier in the panel on where the music industry needs to be placing its energy now that, in his words, the trend of signing artists from TikTok is “starting to crumble.”
“Everybody chased what was hot on TikTok. We gave the keys to TikTok,” said Carter. “Everybody bet on ephemeral artists for the most part and ephemeral songs on TikTok and that’s starting to crumble now. We got to get to a point where it’s, ‘Okay, let’s bet on the art. Let’s bet on the artist. Let’s bet on development and really put strategy around that.’ The people who can do that are going to build billion-dollar brands with artists.”
According to Carter, the music industry can best use new technologies to its advantage by striking true partnerships with the companies that create it.
“In order for this to work, you need partners in this ecosystem whose incentives are aligned with our industry,” he said. “Me going inside of Spotify, Lyor [Cohen] going inside of YouTube, Jimmy [Iovine] and Larry [Jackson] going inside of Apple, it was people who were actually internally helping to align the interest [of music and technology] and being able to explain why [the music] is important. Some great things came out of that, in terms of building real partnerships. We have to hold all partners who are coming into our industry, who we’re giving content to, accountable for that.”
Irenic Capital Management LP, a Manhattan-based hedge fund, has taken an 8.1% stake in Reservoir Media and believes the music company is “undervalued,” according to a regulatory filing dated Monday (Sept. 30).
Described as an “activist investor” by The Wall Street Journal, Irenic called on Reservoir to “undertake a full strategic review of all alternatives to maximize shareholder value and to form a special committee to the Board to oversee such a process.”
“The Reservoir Media board of directors values shareholder input and we remain focused on executing our strategy to drive value, in line with our fiduciary duty to all shareholders,” a company spokesperson said in a statement to Billboard.
Trending on Billboard
Reservoir’s stock has outperformed many of its peers in the multi-sector, record label/music publisher sector in 2024. Through Wednesday, Reservoir’s 7.7% year-to-date gain has bested Universal Music Group (down 8.3%), Warner Music Group (down 12.5%) and the four K-pop companies: HYBE, SM Entertainment, JYP Entertainment and YG Entertainment (down an average of 33.1%).
Only French music company Believe, which has gained 42.5% because it was the target of a management-led takeover, has done better than Reservoir. In explaining the move to take it private, Believe CEO Denis Ladegaillerie said the company had “outperformed its objectives” but its success “has not been reflected in the share price evolution.”
Still, Reservoir is well below its original $10.00 price when it merged with Roth CH Acquisition II Co, a special purpose acquisition company (SPAC), in 2021. Wednesday’s $7.68 closing price is well below its 52-week high of $9.20.
Irenic owns stakes in trucking company Forward Air, Canadian software company Kinaxis and industrial technology company Barnes Group Inc., where Irenic CEO Andy Katz gained a board seat in March. On its website, Irenic explains that it “invests in public companies and works collaboratively” with management for improvements in operating and financial performance “that create long-term value for the company and its owners.” Katz previously worked at Elliot Management and focused on “special situations” such as public equity activism and distressed credit.
Reactional Music, which enables music to be personalized within video games in real-time, signed a licensing agreement with Beggars Group, home to indie labels including 4AD, Matador Records, Rough Trade, XL Recordings and Young. “Reactional Music is doing something really interesting in the gaming space,” said Beggars Group director of global commercial strategy Simon Wheeler in a statement. “It compliments our existing licensing team’s work and extends our reach with games developers and over three billion gamers across the world. We know that gamers are music consumers that over-index in their consumption of music and we’re excited to see what this new partnership will bring.” Reactional previously struck partnerships with music companies including Defected Records, Hopeless Records and Hipgnosis Song Management.
The Circuit Group, the recently launched company that aims to maximize the value of intellectual property for electronic artists, struck an exclusive distribution partnership with LabelWorx, the leading independent digital distributor for indie electronic music labels. Under the deal, Labelworx will manage all digital distribution for The Circuit Group’s roster of artists and labels, including Catch & Release and diviine. “We are thrilled to enter into this exclusive partnership with LabelWorx,” said James Sutcliffe, CEO/president of The Circuit Group UK, in a statement. “Their forward-thinking approach to distribution and their shared commitment to enhancing the value of artists’ IP aligns perfectly with our vision for the future. We are excited to provide our artists and labels with the tools they need to thrive in a fast-evolving industry.”
Trending on Billboard
Leading African streaming platform Audiomack partnered with Africa-based consumer payments provider Carry1st in a deal that will allow Audiomack’s customers in Africa to purchase subscriptions using local payment methods via Carry1st’s Pay1st payment solution. Audiomack subscriptions will now be available for purchase via the Carry1st shop in local currencies in Nigeria, Egypt, Ghana, South Africa, Kenya, Morocco, Tanzania, Cameroon, Côte d’Ivoire, Rwanda, Uganda, and Senegal. “Audiomack is incredibly excited to partner with Carry1st to expand our presence across Africa and make it easier for music fans across the continent to access premium features,” said Audiomack vp of marketing Charlotte Bwana in a statement. “Carry1st has been impactful in growing Africa’s gaming industry for creators and users, and we are confident we can replicate this approach in the music space.”
U.K.-based streaming service Mixcloud acquired European online music marketplace Encore, which helps artists connect with customers looking for live acts to book at their events. Encore will continue operating as an independent brand as Mixcloud helps steer the company’s future. Mixcloud co-founder Nikhil Shah will join Encore as its new chairman; Shah has been an angel investor in the company since 2019.
Australian music company Vinyl Group acquired the assets of London-based Web3 company Serenade in exchange for $800,000 in shares. Vinyl Group will additionally purchase Serenade’s U.K. subsidiary on a debt-free, cash-free basis, “for the purposes of expediting the expansion of the Vinyl.com business into the UK and European markets,” according to a press release. As part of the deal, several key Serenade employees have joined Vinyl Group, including CEO Max Shand, who will continue to lead Serenade while helping expand the Vinyl.com business. According to the release, sales of Serenade’s NFC-enabled “Smart Formats” have grown 56% month-over-month since launching in January, with a total of 12,000 units sold in the first half of the year. It adds that Serenade has commercial partnerships with more than 100 record labels including Warner Music Group, Beggars Group, Concord, Glassnote, FUGA and PIAS.
Music Venue Trust (MVT), a U.K. charity that represents hundreds of independent music venues in the country, acquired the 235-capacity Swansea, Wales indie venue The Bunkhouse under its Music Venue Properties’ #ownourvenues scheme with support from Swansea Council and Figurative, formerly part of Nesta. Under the deal, The Bunkhouse will be placed into permanent protected status. Launched in 2022, the crowd-funded #ownourvenues initiative has so far raised more than 2.6 million pounds from more than 1,250 individual investors and funding. MVT previously purchased The Snug in Atherton, Greater Manchester in October 2023 and The Ferret in Preston in May 2024, with additional venues identified for acquisition. Music Venue Properties has offered The Bunkhouse a rent reduction and a contribution to building repairs and insurance while committing to working with The Bunkhouse director Jordan McGuire to develop currently-unused parts of the building. “We can finally focus on continuing to develop the next generation of talent, knowing that The Bunkhouse is secure and will remain a cornerstone of Swansea’s music scene long after I’m gone,” said McGuire in a statement.
Killphonic Rights, a music rights management company specializing in publishing, distribution, neighboring rights and creative synch licensing, received a $3 million investment from Stilwell Creative Capital for a proportional stake of equity in Killphonic. The money will be used to expand services for Stilwell’s roster of artists, songwriters, labels and publishers. Stilwell will tap into Killphonic’s knowledge base and staff to increase collections and licensing opportunities for the catalog of rights it has acquired. The partnership was orchestrated by Amanda Schupf of MAX Music Management and Consulting, who will join the advisory boards of both Killphonic and Stilwell following the deal.
Believe completed its full acquisition of leading Turkish indie label Doğan Music Company (DMC) following the approval of the competition regulator. The Paris-based company previously acquired a 60% majority stake in DMC in 2020 before exercising the call option to acquire the remainder for a total of 38.3 million euros ($41.84 million).
Connyct, a new social network designed exclusively for college students, struck a licensing deal with Warner Music Group (WMG), allowing WMG music to be used in Connyct’s video-creation hub Events Center. “We created Connyct to spark joy and excitement around real-life experiences, a digital reflection of your favorite times,” said Connyct CEO/co-founder Matthew Berman in a statemetn. “We’re all about connection and discovery, meant to help users find people who share the same passions and want to publicize events to enjoy them with their friends. Our partnership with WMG takes this vision to the next level, allowing students to soundtrack their college experiences with an incredible array of music.” Connyct will be available for download on the iOS App Store in the coming weeks at select universities.
Ticketmaster and Tickets For Good unveiled a new partnership that will make it easier for live event organizers to donate tickets to nonprofit workers, healthcare providers and teachers. Via Ticketmaster’s Distributed Commerce API, any artist, sports team or other event organizer using Ticketmaster can allocate a portion of their tickets to Tickets For Good, which provides access to select live events for people who serve their community, for a booking fee of less than five pounds in the U.K. and less than $5 in the U.S.
Symphonic Distribution partnered with Twitch to give Symphonic artists the ability to include their music in the Twitch DJ Program. Once they opt-in, Symphonic artists can have their music used by any DJ on Twitch in their sets and earn royalties in the process.
L.A.-based artist management company Hills Artists struck a joint venture partnership with Firebird, a music company that provides career and brand guidance to more than 1,000 artists globally by leveraging data along with its team of experts. “By leveraging cutting-edge data science, increasing access to vital information, and mobilizing substantial financial power, we are uniquely positioned to build careers and transformative businesses,” said Hills Artists CEO Rupert Lincoln in a statement. “Firebird has cultivated something truly exceptional, and we are excited to take the next steps in our journey with them.” Hills’ roster includes Sasha Alex Sloan, Grandson, Aidan Bissett and LANY.