Business News
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As part of its relaunch, nonprofit organization More In Music is announcing its new advisory board for 2024-2025. Dedicated to making the music industry accessible to aspiring professionals through education and mentorship, the organization is also planning its first More In Music Conference for 2025. The board is comprised of three groups: legacy, bridge and […]
HYBE has reopened an investigation against Min Hee-jin, the former CEO of its subsidiary label ADOR, with whom the K-pop conglomerate has been in a monthslong legal battle regarding her position at the company.
On Sept. 24, HYBE confirmed to Billboard that ADOR launched an investigation into whether Min improperly interfered in the company’s initial investigation into a sexual harassment claim and violated confidentiality obligations. ADOR also began a re-investigation of an ADOR VP involved in the situation. HYBE declined to comment on how long the investigations have been underway or when they plan to share their findings. Min and a representative tell Billboard she was never formally informed of the investigation through external or internal company means.
Min is pushing back on HYBE’s handling of the case, which was initiated by its sub-label ADOR, which houses NewJeans, calling the company’s internal investigations biased due to an alleged conflict of interest with the executive who replaced her as label CEO overseeing the case.
Sources tell Billboard that the investigation involves allegations that Min had covered up an incident involving a male VP at ADOR, where a female employee reported feeling harassed and bullied during a work-related dinner.
The controversy dates back to February 2024, when the ADOR VP allegedly pressured a female employee to attend a dinner with a client, claiming it would be beneficial to have a young woman present, according to an internal report shared with Billboard. During the dinner, the VP left abruptly, leaving the employee alone with a client, creating an uncomfortable situation that the report says “seemed orchestrated.” The employee reported the incident to HYBE’s internal compliance system, citing sexual harassment and workplace bullying. While an internal HR investigation was conducted, it ultimately recommended only a stern warning for the VP, as harassment claims could not be definitively proven, with the case dismissed.
Min Hee-jin’s role in the aftermath of this complaint is what has come under scrutiny. According to the report, Min doubted the credibility of the employee’s complaint and organized an all-hands meeting with both the complainant and the accused, violating the company’s standard HR procedures. An audit of the situation added that Min had coached the VP on how to respond to the allegations.
When the Korean tabloid site Dispatch first reported the incident, Min responded to the claims with a media statement and shared information about the employee on her social media, including the employee’s salary. HYBE has said that the employee filed lawsuits for defamation and privacy violations, but a representative for Min tells Billboard she, as well as the VP, are only facing a defamation suit. The rep adds that the VP has also sued the employee for defamation and claimed damages, which had not been previously shared with the media.
At the time, Min stated that the issues stemmed from poor work performance and that the employee left the company after a salary cut. Min tells Billboard the salary information she revealed through an Instagram Story post did not identify the individual and says it was HYBE, not herself, who publicly disclosed the private parties’ identities in media statements throughout their dispute.
In a phone interview last week, Min questioned the legitimacy of HYBE’s ongoing investigations and directly addressed the appointment of Ju Young Kim, ADOR’s new CEO, who replaced her and led the initial investigation that dismissed the harassment claim. During her time as ADOR’s CEO, Min claims she was not in a position to “conceal” sexual harassment cases nor in charge of such decisions.
“The one who actually made a final decision after reviewing all the statements, all the evidence and reporting, is Kim Ju Young, who is currently the CEO of ADOR,” Min says. “She made those final decisions by herself within HR of HYBE, but then later on, she brought up this issue again and accused me with different charges to try to re-open an investigation.”
Min adds, “I have been telling HYBE, ‘If you want to do an investigation or re-investigation, you need to make it formal and official by not having any investigating done by those involved in previous cases. They could hire a third party to investigate, but instead, they’re going into another internal investigation by the same person who actually made the final decision.”
The final results of the audit are expected in the coming days.
HYBE declined to comment on whether the company has spoken with or plans to speak with NewJeans directly, but Billboard learned that the NewJeans members and their parents met ADOR’s current CEO Ju Young Kim on Sept. 24 to solidify each side’s position.
Despite the ongoing investigation, ADOR shared its decision on Sept. 25 to allow Min back to the subsidiary as an internal director and producer for NewJeans, but would not honor the request to reinstate her as its CEO.
“The board has resolved to convene an extraordinary shareholders’ meeting to reappoint Min Hee-jin as an internal director,” ADOR said in an official statement (per The Korea Herald). “However, the board cannot accept the request for her reinstatement as CEO at this time. Min Hee-jin’s role and authority as the producer for NewJeans are fully guaranteed, and further discussions on specific terms will take place in the future.”
Min Hee-jin issued a press statement in Korea rejecting the proposal and requesting again to be reinstated as CEO.
A few days after the Sept. 16 arrest of Sean “Diddy” Combs on racketeering and sex trafficking charges, a book said to be based on diaries and notes from his late girlfriend, Kim Porter, became a best-seller on Amazon. (It was a best-seller within a certain category, which probably means it sold well but not hardcover-bookstore-best-seller well.) What’s really impressive is that the book did so well despite the fact that Diddy and Porter’s children say she didn’t actually write any of it.
The 60-page book, Kim’s Lost Words: A Journey for Justice, From the Other Side, was self-published under the name Jamal T. Millwood by Chris Todd, whose real name is apparently Todd Christopher Guzze. Todd has said the book is based on the contents of a flash drive, which he allegedly received from two people close to Porter and Combs, but he “didn’t ask too many questions about how they got it,” according to Rolling Stone. “If somebody put my feet to the fire and they said, ‘Life or death, is that book real?’ I have to say I don’t know,” said Todd, who says he’s a producer and journalist and hopes the book will lead other sources to come forward. (Journalists generally tend to ask too many questions.) “But it’s real enough to me.”
It would be hard to find a more ridiculous quote to describe the very serious problem that big media platforms have created. I have no idea how the book was written, of course, but Todd knows that’s not the point and presumably so do readers — it’s real enough to me, he says, so it’s real enough for them. (The story behind the book actually sounds more interesting than the book itself.) This sounds harmless enough until you realize that — wait a minute — that’s basically what Republican vice-presidential candidate JD Vance says about the claim that Haitian immigrants are eating pets in Springfield, Ohio. He heard it, then justified it as a way to call attention to a problem. (There is no evidence that anyone is actually eating pets, and the whole idea sounds racist.) Like Todd’s book, it certainly went viral. It was real enough for people — to the point that it has become an actual political issue.
Stories about scandals, real and exaggerated, are hardly new. (Diddy faces unrelated criminal charges; Porter died in 2018 of lobar pneumonia.) What is new, though, is the way online platforms create incentives to create and spread them. Amazon now sells more than a dozen books about Porter, including a “Kim Porter Coloring Book” and several books that use “lost words” in their titles. The speed and ease of selling books on Amazon’s open system has made Porter’s death a cottage industry. It’s gross — does anyone want to be memorialized by a coloring book? — and you can’t blame her kids for being upset. There’s money in it, though.
It’s a useful metaphor for streaming fraud. The problem isn’t that Amazon or online music services stand behind conspiratorial books or useless music with streaming numbers pumped up by bots — it’s that they don’t stand behind anything. Open platforms like these let people distribute their own art, which is promoted as a feature but might more often be a bug — a lot of what’s online is neither professional work nor hobbyist creations but rather get-rich-quick schemes of various kinds. Which is funny until it could affect an election.
The most common argument against this in the music business is that fraud takes money from artists, which is true, but it can be hard to get horrified about schemes to steam millions of fractions of pennies from thousands of artists. (Most of the book business works very differently, but dubious books do take money and attention that more legitimate books need.) Another argument is that low-quality material undermines the integrity of the system — consumers who hear lousy music and read dubious books might be less inclined to spend more money on such legitimate products.
The argument that ought to get more attention is that these kinds of products simply aren’t good for the overall experience platforms offer. Streaming services used to promote their vast selection, but at this point some of what’s uploaded just makes more popular music harder to find. The same applies on Amazon. A search for “Kim” and “Lost Words” brings up a half-dozen books — and even those who find and buy the one they want may be disappointed. Kim’s Lost Words has 98 reviews, which average out at three stars. Others have none at all. This doesn’t affect the value of other books, of course, but it could make them harder to find.
Any serious solution to this will involve changing the incentives. The current level of curation and enforcement won’t work once AI is more widespread. It’s one thing to sell a book that may or may not contain Porter’s words, but Amazon already sells 12. Are we ready for 12,000?
Making platforms easier to use will mean making tough choices, then pushing them down to distributors who will in turn push them down to individual uploaders. There are options, however: Platforms could hold uploaders responsible for content that hurts the user experience or pay out more to companies who have a better ratio of content users engage with compared to their total. That’s what I think — unless this all came from a flash drive someone gave me.
Changes are coming to Montreal’s nightlife. Following public outcry over the closure of the popular venue La Tulipe, Mayor Valérie Plante announced this week (Sept. 25) that venues will now be exempt from the bylaw that led to its closure.
The venue announced this week it would cease operations due to a decision by the Quebec Court of Appeal, which mandated the venue to not emit sound that could be heard in an adjacent building.
Specifically, in the Plateau-Mont-Royal borough of Montreal (a popular area for live music), music venues will no longer be subject to Section 9 of the bylaw governing noise regulation, which specifies that amplified sound cannot be audible in a neighbouring building. Projet Montreal, Plante’s party, has also committed to improving the city’s soundproofing program and presenting a new nightlife policy in October.
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Plante posted a video on Instagram, sharing her own dismay at the news that La Tulipe would be closing its doors for the foreseeable future. She expresses concern that one person could derail an entire music venue.
“Yes to neighbourliness, but no to the dictatorship of neighbours,” Plante says in the video.
La Tulipe isn’t the only venue in the city to be affected by noise bylaws. Popular spots like Divan Orange and Diving Bell Social Club have previously closed down due to noise complaints.The outcry to the news about La Tulipe indicated a growing frustration amongst cultural laborers in the city, which has a reputation as a haven for arts production in Canada. – Rosie Long Decter
Newly Announced Rogers Stadium Will Become One of Canada’s Biggest Music Venues
On Thursday (Sept. 26), Live Nation and Northcrest Developments announced Rogers Stadium, the new 50,000 capacity outdoor venue in Toronto opening in June 2025. The venue will instantly become one of the biggest in Canada, with a slightly higher capacity than Toronto’s other stadium, Rogers Centre. It’s also one of the world’s few venues of the size that isn’t also home to a sports team.
The venue will be located at YZD, on the site of what used to be the Downsview Airport in North Toronto. Bombardier used the land for an air field, air force base and testing base for aircrafts. In 2018, Bombardier sold the facility to Northcrest Developments and will move its operations to Pearson Airport.
Rogers Stadium in Toronto
Courtesy of Northcrest Developments/Billboard Canada
The company is redeveloping the land into mixed-use residential communities, a $30B plan that is slated to take 30 years. In the meantime, the 370-acre site, now called YZD, is being used for a variety of arts, community and other initiatives as part of “Meanwhile Use Strategy.”
After the announcement press conference, Billboard Canada spoke to Erik Hoffman, president of music at Live Nation Canada, about why they decided to open the venue and why now. Hoffman says the decision was inspired by a specific artist.
“The idea came from [working with] a major artist who we were very frustrated that we couldn’t find dates [for],” says Hoffman. “They were just going to bypass Toronto on their world tour.”
That act (unrevealed, but there’s plenty of room for speculation) will now play Rogers Stadium next summer, one of 12-15 shows on the 2025 slate. Hoffman says almost all of those shows are already booked.
“It’ll be the biggest year we’ve ever had in stadium-level touring. By far,” he says. “It’s the kind of acts that you would traditionally see at an NFL stadium in the U.S. or the Rogers Centre here. The biggest acts in the world, and some of them setting up for multiple days.”
Stadium and festival-size shows are in high demand, he says, and Toronto is one of the top stops on any world tour. The city is also multicultural and multilingual, which makes it an ideal market for exploding genres from around the world including K-pop, Latin music and Punjabi music. Stadium shows from Indian star Diljit Dosanjh in Toronto and Vancouver this summer have shown there’s an appetite.
“If the fans weren’t coming, [artists] wouldn’t stage shows that big,” Hoffman says. “Not to dumb it down too much, but if they keep selling out stadium shows you do more stadium shows.” – Richard Trapunski
Somali-Canadian Artist K’naan Charged with Sexual Assault
Canadian musician K’naan has been charged with sexual assault.
A charge sheet was filed this week (Sept. 26) in Quebec City for the musician and director, born Keinan Abdi Warsame, for a count of sexual assault dating back to 2010, The Canadian Press reports.
The arrest warrant alleges that the assault took place between July 16 and 17 in Quebec City, which coincides with a show he played at Festival d’été de Québec (FEQ) in 2010. CBC reports that the complaint was first filed in May of 2022 with the Montreal police, but was later transferred to Quebec City. The assault allegedly took place in a hotel room on territory covered by the Quebec City police force.
K’naan, who’s known for his 2009 hit “Wavin’ Flag” (later rerecorded as the global anthem for the 2010 FIFA World Cup), took an extended break after his 2012 album Troubadour and spent time in both Canada and the United States. Recently, he has recently returned to prominence.
The Somali-Canadian musician returned with “Refugee” in 2023, a song that he said was intended to feel “like a home for those of us made homeless by conflict.” K’naan won the Best Song for Social Change Award by the Recording Academy at this year’s Grammy Awards.
Just over two weeks ago, K’naan made his debut as a director, premiering his feature film Mother Mother at this year’s Toronto International Film Festival. This week, on Sept. 24, K’naan attended the SOCAN Awards at History in Toronto and accepted the SOCAN Cultural Impact Award for the lasting global impact of his anthem, “Wavin’ Flag.”
Warsame was not in attendance for the proceedings in Quebec. The case has been set for April 2025. According to Radio-Canada, Warsame’s lawyer has requested he be tried in English in front of a jury. – R.T.
Welcome to a sopping edition of Executive Turntable, Billboard’s comprehensive(ish) compendium of promotions, hirings, exits and firings — and all things in between — across music. It’s Julie Greenwald‘s last Friday as chair and CEO of Atlantic Music Group — read her farewell letter to staff here. Carry on for [mostly] good news but 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.
Warner Music Group appointed Corey Sheridan as global head of commerce and revenue for ADA, the company’s independent label and artist services division. Sheridan, until recently the head of music partnerships at TikTok, will manage ADA’s commercial strategy, working to drive revenue and optimize music releases. The Los Angeles-based exec reports to ADA president Cat Kreidich. At TikTok, Sheridan played a crucial role in the platform’s music strategy, overseeing the creation of the TikTok Charts feature and securing partnerships with Billboard, Spotify, Apple Music, and Amazon Music. His first role at TikTok was as head of music for North America, from April 2019 until February of the last year. Prior to TikTok, Sheridan held leadership roles at UnitedMasters, SoundCloud and Sony’s The Orchard. His work has earned recognition on Billboard’s 2020 Impact list and the 2019 Digital Power Players list. Kreidich praised Sheridan for his visionary leadership over the years, particularly in anticipating industry trends, and highlighted his deep passion for indie music and extensive digital and social experience as key assets for ADA’s future success. Sheridan lauded ADA’s “clear vision and unmatched drive to strengthen what a distribution company can offer.”
Trending on Billboard
Drew Hill, CEO of Proper Group’s distribution division, was elected chairman of the Official Charts Company, which compiles the UK’s music and video sales data. Hill succeeds Sony Music senior director of commercial analytics Charlotte de Burgh-Holder, taking on the non-executive role starting Sept. 29. He represents ERA, the Digital Entertainment & Retail Association, which co-owns the Official Charts Company with BPI. As chairman, Hill will work closely with CEO Martin Talbot to shape the company’s strategy and chair the Official Charts board. With over 20 years of experience in the entertainment sector, including roles at Walt Disney and Curb Records, Hill now leads Proper Group’s distribution division. He recently oversaw the launch of the UK’s largest warehouse for physical music and video. Talbot praised Hill’s wide-ranging industry experience, noting it makes him well-suited for the role “as we continue to evolve all that the Official Charts does and stands for – and prepares for the next phase in its development.”
Warner Chappell Music promoted A&R executive Spencer Nohe to vp of A&R. During his career, Nohe has worked with artists including Thomas Rhett, Alysa Vanderheym, Brittney Spencer and Conner Smith. He joined WCM Nashville in 2020 as director of A&R and previously worked at Curb/Word Entertainment and BMI. Nohe will continue to report to Ben Vaughn, president and CEO of WCM Nashville, who called him a “true, thoughtful music professional.” –Jessica Nicholson
Universal Music Greater China senior vp Gary Chan has been tasked with helming a new label specifically covering China’s Greater Bay Area, which includes both Hong Kong and Macau and is home to more than 86 million people. The new imprint, Universal Music China Greater Bay Area, has its headquarters in Shenzhen and will focus on discovering and nurturing local talent. “We eagerly anticipate welcoming the outstanding talents from this region to join us in driving forward, the next era of Chinese pop music,” said Timothy Xu, chairman and CEO of UMGC. “In this pursuit, we are setting our sights on transforming the GBA into a trendsetting hub that epitomizes creativity, vitality, and connectivity, crafting fresh musical expressions and innovative entertainment experiences.”
Big Machine Label Group appointed Andi Brooks as director of streaming for The Valory Music Co, effective immediately. Previously the director of Southwest promotion & marketing at Nashville Harbor Records & Entertainment (formerly BMLG Records), Brooks will now collaborate with VMC’s streaming partners to strategize and promote both new releases and existing catalog. She reports to VMC president George Briner and svp of digital & promotion Ashley Sidoti. Brooks joined BMLG Records in 2019, following a successful career in radio and morning television in Madison, WI. “Her enthusiasm and passion for music, along with her desire and drive to be the best in the streaming world makes her a great addition,” said Briner.
Distribution and retail brand Fat Beats appointed industry veteran Rob Caiaffa as its new head of marketing. Caiaffa will oversee Fat Beats’ marketing efforts during a time of growth and expansion, as the brand celebrates its 30th anniversary. His role will focus on enhancing Fat Beats’ market positioning and strengthening relationships with artists and industry partners. Caiaffa brings two decades of experience from previous senior positions at companies like SoundCloud, Motown Records and Def Jam Recordings. At SoundCloud, he played a key role in launching initiatives like the Fresh Press artist interviews and the CloudBar industry insights program, and worked on strategic partnerships with major brands like SiriusXM and Pandora. Caiaffa said his goal at his new gig is upholding Fat Beats’ legacy while exploring innovative new opportunities for the brand’s future.
Jon Borris joined The Core Records as general manager, where he will oversee the label’s day-to-day operations, focusing on artist strategy, A&R, marketing and distribution. He joins the label following a six-year tenure at Republic Records, where he worked with artists including Taylor Swift, Morgan Wallen, Drake and Ariana Grande. Prior to Republic, Borris spent two decades at Sony Music Entertainment. Kevin “Chief” Zaruk and Simon Tikhman launched The Core Records in 2023. -J.N.
Outback Presents appointed Joel Bachkoff as senior vp of comedy, marking a key addition to the company’s growing funny business. Bachkoff will focus on developing the careers of comedy talent, guiding them from clubs to theaters and eventually arenas, while cementing their long-term success. With decades of experience in the comedy industry, Bachkoff’s career began at the club level and expanded to owning and operating multiple comedy, music, and restaurant venues across Arizona, Florida, and California. His expertise and innovative approach have made him a respected leader in the field. Outback Presents co-CEOs, Brian Dorfman and Michael Smardak, expressed their excitement about Bachkoff joining the team, with Smardak saying he’s “thankful to be able to work with Brian and Joel who have dedicated their careers to comedy.” Reach Bachkoff at joel.bachkoff@outbackpresents.com.
Dhar Mann Studios, a leading digital content company, appointed Sean Atkins as president and COO. Atkins, a media industry veteran with experience at Jellysmack, MTV, and Discovery, joins to drive the company’s growth and expansion into new business lines. Dhar Mann Studios produces scripted content, generating over 6.7 billion views in the past year, the company said. Atkins will oversee its Burbank production facility and lead efforts to broaden the company’s reach, including live events, merchandising, publishing, and partnerships, with representation from CAA. As president of DMS, Atkins has already launched the 5th Quarter Agency, a new creator-services division to help top creators monetize their content on YouTube. Dhar Mann, the company’s founder, sees Atkins as key to accelerating the company’s mission-driven growth. “Together, we’re set to advance our mission of using media to make a positive global impact, while we propel the company into this next stage of unprecedented growth,” he said.
Align PR is expanding its music and Latin teams with the addition of Lauren Morris-Ruff and Erica Goldish in Los Angeles, Victoire Selce and Nick Vinci in New York City, and Justin Tejada in Miami — all with strong backgrounds covering labels, agencies and various markets. Align’s client roster includes heavy-hitters like Madonna, Demi Lovato, Zayn Malik, Lil Wayne, Lea Michele and Nicky Jam, among others. Co-founder Nicole Perez-Krueger expressed excitement about the company’s growth, noting how the varied experiences of the new team members — Morris-Ruff at PMK*BNC, Goldish at Shore Fire, Selce at Wasserman, Vinci at 10K Projects and Tejada at Acoustyle — enhance the firm’s culture and storytelling abilities. The music department will continue to collaborate with longtime staff members such as Nicole Perez-Krueger, Brit Reece, Cait Bailey, Paul Samaha, Alec Huerta, Trixie Richter and Isa Perez.
ICYMI:
Dickon Stainer
Elektra veteran Gregg Nadel was appointed co-chair and co-president of Warner Music Nashville, replacing Ben Kline to work alongside co-head Cris Lacy … Universal Music Group Nashville appointed Robert Kilduff as chief financial officer … Several staffers at CMT have been let go … and Dickon Stainer was appointed chairman and CEO of Universal Music UK, succeeding David Joseph, who announced a day before that he was stepping down from the role after almost 17 years at the wheel. [MORE]
Last Week’s Turntable: An Old Friend Returns to Budde
When Jeremy Sirota signed on as CEO of indie digital rights nonprofit Merlin in January 2020, he had already spent years championing the independent music community.
After starting his career as a tech lawyer in the mid-2000s, Sirota worked for nine years at the Warner Music Group at WEA and ADA, helping to distribute WMG’s affiliated indie-label partners. He then moved to Facebook Music, where he was independent label lead for its business and partnerships team. That experience gives him the perspective needed to assist Merlin’s 500-plus members representing 30,000-plus label partners in more than 70 countries in navigating an increasingly complex digital world.
Over the past four years, he has worked to set those labels — which collectively represent some 15% of the global recorded-music market — on a course to optimize partnerships that increasingly power the business. They include expanded alliances with Meta and YouTube; deals with SoundCloud, for its fan-powered royalties structure, and Deezer, for its “artist-centric” royalties plan; and a new initiative, Merlin Connect, that grants select tech startups a license for its members’ catalogs to help educate those new companies about music usage on their platforms while getting Merlin’s labels and their artists paid.
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Since Sirota became CEO, Merlin has added more than 100 members and launched a mentorship program, Merlin Engage, which pairs women music executives with the next generation of female industry leaders. He’s also debuted Merlin Insights, launched in April to help parse the avalanche of data that indies must process. And as the sector grows globally, Sirota says he’s focused on how to best superserve Merlin’s labels. “There are a lot of ways we think about growth,” he explains. “The most important are ‘Am I driving more value to my members? Am I helping support their ability to be independent? And am I helping to shape a future where artistry, authenticity and creativity can thrive?’ ”
Have you brought in new members and territories this year?
Our growth is about making sure that our values are held by the members who join. This year, 11 new members have joined Merlin, including Artist Partner Group, UNIFIED and Rostrum Pacific. We’ve grown the team to deliver on white-glove support. That involves three things: automate as much as possible; communicate; and collaborate more efficiently and effectively. Something we think about a lot is “How do we free people up?” We’re now over 50 people and have added people around the world at all levels. One of the most important things we do is report and pay to our members on a timely basis so they can pay their bills, their labels and their artists. And we’re deepening our relationships with some of our partners, like Meta, and doing things with [graphic design platform] Canva — which I’m really excited about. We’re finding new ways to monetize music in a healthy and fair way.
A coffee enthusiast, Sirota calls this “my rocket ship of an espresso maker — a Profitec, gifted by my wife — with which I enjoy my daily ritual of making cortados.” He admits to a “guilty love of New York deli coffee with a generous dose of milk and sugar.”
Nina Westervelt
How does Merlin Insights benefit your members?
Insights is a big initiative. We now have a data operations team to make sure that all trends data is being delivered in the right format. Our market share on some of these platforms is significant — more than just the 15% we talk about. So we have this incredible wealth of data. What could we do with that that members cannot do on their own? If you’re not a global organization with 10,000 employees all around the world, we have the ability to pull out interesting stories that help our members — things they don’t know because they’re not on the ground. We do reports, webinars, feedback loops with members around: What else do they want to see? What do we get right? What do we get wrong? That’s where this membership, this community, really comes into play.
What are some of the biggest challenges facing indies right now?
Their world keeps changing so rapidly, and whatever worked six months ago doesn’t work today. That’s why I talk so much about this one-on-one white-glove approach, which is helping them understand where things are headed so that they can make better decisions. Compared to a major, they have less capital, less resources, smaller teams. They have to be more nimble, and the decisions they make have to be right more often. What kind of guidance are you giving them? What does it mean to break and sustain artists, given the way this world’s operating? And what can we be doing with data, our deal-making and with our partners? And then, what are the next, new opportunities? If music is like water, it’s flowing everywhere, and yet it’s not picking up the monetization it should. So trying to find those next, new opportunities.
Is that one of the ideas behind Merlin Connect?
We’re trying to make the ability for startups — pre-seed companies — to be able to more seamlessly tap into music, from a licensing perspective, from an operational perspective, and get value in return for that. But they may not even realize the value of music. We’re also trying to tackle people who may not have thought about music.
I look at so many different types of companies where music could be so valuable to them if they just understood it. We want to make it more seamless, the operations, the licensing, and then there’s an education piece. But it’s not just a license — we’re investing in you as well. You get access to our team, which [collectively] has hundreds of years of music experience with startups about what works and what doesn’t work. You get access to our independent members who love to be on the cutting edge.
We’ve had some really good conversations with some companies now. This is a long-term project — this is our approach now to how we think about the ecosystem and how we nurture it. I’m not going to change the trajectory of every startup just because they have music now, but I think I can fundamentally change the trajectory of so many startups in a way they don’t realize yet.
This photo of David Bowie, taken by Mick Rock, “is a cherished piece because it captures Bowie’s aura.”
Nina Westervelt
Is this about finding new growth sectors?
One hundred percent. It’s almost endless, the types of platforms and startups that could benefit from music. And it’s going to take experimentation. You can’t help everything grow, but there’s a lot out there that’s not growing the way it could. And it’s going to benefit Merlin and its members and their labels and artists, but it could have beneficial ramifications for the whole industry as well. If we can help be a part of that, that would be really exciting.
How have your experiences at Warner and Facebook served you at Merlin?
It gave me the ability to relate to people at different levels in the business, whether it’s a product manager at a digital platform, or an engineer who’s now a founder of a startup, or it’s a member who runs a metal label, or [is] the head of [European indie trade association] IMPALA. I try to see the business through their eyes. I’ve always been on the service side, and that’s always been the through line. People want to know that you understand them, and that they were heard, and that you’re working to do what you can.
When Merlin renewed its Meta partnership this year, you said it was about more than licensing music. What else do you expect of these alliances?
We don’t think of it as “Let’s come back and kick the tires every few years.” We want to help shape their thinking about music and their understanding of what independents need at an operational level. We want to do the same thing with our partners to create this continual feedback loop and conversation.
“These artifacts represent a different period of my life that keeps me grounded,” he says. They include awards from the Eagle Scouts, WEA and the Young Presidents Organization.
Nina Westervelt
What were your reasons for Merlin’s deals with SoundCloud and Deezer over their proposed changes to the royalty payout model for streaming services?
We want to make sure no one’s gaming the system. We want to make sure that fraudulent content is not an issue. We want to make sure that artificial streaming is not an issue. We’re absolutely willing to experiment and try out different models. But when you say, “Let’s change the system,” we need to be really careful about two things. One is unintended consequences. And No. 2 is, sometimes what I hear is, “Let’s penalize independents.” Let’s prevent abuse, but let’s be careful. Let’s be incremental to avoid unintended consequences. And let’s not do something that will make it more difficult for independents to operate. It’s already expensive enough to operate in this space, and it’s creating more barriers to entry for those who don’t have the same level of capital to arbitrage against.
That raises a question. Over the past 10 to 15 years, many of the traditional barriers to the music business have come down. It seems like some of these proposed changes to the model are a bit like “Let’s rebuild some of those walls.” Do you feel like things are too wide open now? Do we actually need barriers to entry?
When I hear “create more barriers to entry,” I have a little bit of reflex [thinking that means] “Let’s make it more difficult for independents.” At the same time, you want to be supporting quality music. What has happened is technology is outpacing how we operate as humans. I think the biggest challenge music always has is that there is a zero-sum game around some of this. It’s one of the reasons we’re always thinking about creating new incremental revenue sources.
Where did the idea of Merlin Engage come from, and how have things gone so far?
Katie Alberts from Reach Records was the first to propose this, and Marie Clausen from Ninja Tune was the second. This is our second year. We’re conscious of not biting off more than we can chew. But what is really great about it is, we’re matching very senior leaders with up-and-coming, next-generation female leaders. And what I find particularly inspiring is that these people who are incredibly busy are willing to put time toward it. The second is, we’re creating another mini community. And it’s global, we’re connecting people from different countries. There’s so much we want to do at Merlin, but this one was just a no-brainer to help move the music industry in a better direction.
“I keep a curated sample of already-read books nearby as an invitation to be inspired,” he says. Above them: “A graffiti artwork by my talented aunt, Laura Shechter, whose art estate I manage.”
Nina Westervelt
This story appears in the Sept. 28, 2024 issue of Billboard magazine.
LEVEL, a distribution company owned by Warner Music Group, announced on Thursday (Sept. 26) via Instagram that it will be shutting down in 2025. In a letter to its clients, obtained by Billboard, LEVEL notes that it is no longer accepting new songs for distribution or edits as of the date of the announcement and it will cease all operations on July 31, 2025.
The letter also said that all live releases will automatically be taken down on Nov. 18, but artists are “welcome to request a takedown” of their content before then. It also notes that access to the LEVEL Wallet, which is how the company pays out royalties, will be shut down on July 11. “We’re honored to have supported all of the talented people who have used LEVEL to share their music with the world over the years,” the company said.
In a statement provided to Billboard, WMG said: “We’re focusing all of our efforts behind the ADA brand, as we continue to strengthen our global suite of services for artists and label partners across the independent community. We’re taking a truly global approach, and investing in our team and technology, with some exciting announcements in the works.”
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In late 2022, multiple LEVEL artists and former employees told Billboard that the company was experiencing operational issues. This included the random removal of artists’ songs and projects distributed through the company and increasing difficulty in getting in touch with staff to remedy the takedowns and to generally receive service. Two former employees believed at the time that this was due to a reduced headcount at the company. A number of artists also took to the company’s Instagram comment sections to voice their concerns about the company. Those comments have all since been deleted.
In January 2023, the company addressed these complaints in an Instagram post, saying, “when it comes to customer support, we acknowledge we need improvement… we are refining our process for how we approach withdrawals [as well].”
LEVEL was started in 2018 by WMG in an effort to work more closely with young, unsigned artists. During the course of its operations, it released early songs by Remi Wolf, Stephen Sanchez, brakence, Dreamer Isioma, Boyish and more.
News of LEVEL’s shut down comes amid a widespread restructure of WMG’s Atlantic Music Group, which includes Atlantic Records, Elektra Records 300 Entertainment, Fueled by Ramen, Roadrunner and 10K Projects. Over the last few weeks, around 150 employees under the Atlantic Music Group umbrella have been let go, and a number of high-profile executives are also stepping down from the company, including Atlantic Music Group CEO Julie Greenwald, who co-led Atlantic for nearly 20 years; WMG’s CEO of recorded music Max Lousada, who had been at WMG for decades; 300 Elektra Entertainment chairman/CEO Kevin Liles; Atlantic general manager Paul Sinclair; and Atlantic co-president of Black music Michael Kyser, along with several department heads at both Atlantic and Elektra Records.
Atlantic Music Group will now be helmed by 10K Projects founder/CEO Elliot Grainge.
Feid has officially signed with Creative Artists Agency (CAA), which will be representing the multi-platinum artist in all areas globally, Billboard can exclusively announce today (Sept. 26).
With CAA’s representation—across music, film, television, endorsements, sports, business development and more—the Colombian artist is “poised to further expand his international reach and will work closely with CAA on future endeavors, including his highly anticipated world tour,” according to a press statement.
The artist born Salomón Villada Hoyos is known for his No. 1 hits on the Billboard Latin Airplay chart such as “Perro Negro” with Bad Bunny, “Luna” with Atl Jacob, “Yandel 150” with Yandel and “Hey Mor” with Ozuna. He’s also one of this year’s top finalists at the 2024 Billboard Latin Music Awards boasting 11 entries, including Global 200 Latin artist of the year and Latin rhythm album of the year for Ferxxocalipsis, in addition to the five he achieved for “Perro Negro” with Bad Bunny.
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Feid is also a four-time Latin Grammy nominee, where he’s up for best reggaeton performance (“Perro Negro”); best urban music album (Ferxxocalipsis); and best urban song for two tracks, “El Cielo” with Sky Rompiendo and Myke Towers and “Luna.”
Additionally, his Ferxxocalipsis World Tour that sold out dates in New York, Los Angeles, Miami and more, kicked off the Latin American leg of stadium shows with two sold-out concerts in Mexico City last month. The tour will continue through December, wrapping with three consecutive sold-out stadium gigs in his hometown of Medellín, Colombia.
Feid is managed by Luis Villamizar.
Both Feid and Villamizar are set for the 2024 Billboard Latin Music Week returning to Miami Beach on Oct. 14-18, with confirmed superstars including J Balvin, Gloria Estefan, Alejandro Sanz and Peso Pluma, among many others. For tickets and more details, visit Billboardlatinmusicweek.com.
A number of staffers at CMT, the Nashville-based country music and lifestyle programming network, have been let go as part of a broad swath of staff cuts taking place at Paramount Global.
Billboard has learned that among the music and talent team leaving are Stacey Cato (director of music and talent), Quinn Brown (vp of production), Ray Sells (senior director of production), Jennifer DeVault (senior producer), Jordan Walker (senior manager of music and talent), Abbi Roth (senior manager of music and talent) and Bryana Cielo (executive assistant), as well as Heather Graffagnino, vp of production management.
Among those remaining are Margaret Comeaux (senior vp of music and events production), Donna Duncan (vp of music and talent), Melissa Goldberg (vp of digital and social), Yasmin Mohammed (producer) and David Bennett (creative director).
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Sources say that Paramount will continue to support CMT and is positioning the outlet for the future, but what that looks like is unclear.
This week, Paramount Global began a second round of staff cuts, as it continues its aim of reducing its U.S. workforce by 15%, seemingly in preparation for the company’s planned merger with Skydance Media. In a memo to staffers on Monday (Sept. 24), Paramount’s co-CEOs George Cheeks, Chris McCarthy and Brian Robbins stated, “Like the entire media industry, we are working to accelerate streaming profitability while at the same time adjusting to the evolving landscape in our traditional businesses. In order to set Paramount up for continued success, we are taking these actions. Days like today are never easy. It is difficult to say goodbye to valued colleagues, and to those departing, we are incredibly grateful for your countless contributions.”
The cuts come as the company, like many legacy media companies, is seeing a decline in linear television viewership and advertising, and consumers continue to move toward streaming video and digital.
In June, Paramount cut nearly all the content roles across its CMT, MTV, Comedy Central and TV Land websites, while storied news site MTVnews.com was taken down. During a town hall on June 25, McCarthy noted that Paramount’s revenue had grown by 13% between 2018 and 2023, while the company’s operating income before depreciation and amortization (OIBDA) has fallen 61% during that same time frame. Thus, they are aiming at cutting $500 million in costs.
Country radio trade publication Country Aircheck first reported a number of the layoffs.
Reps for Paramount Global had not responded to Billboard‘s request for confirmation by press time.
Global Music Rights (GMR), the boutique U.S. performance rights organization that represents Bruce Springsteen, Drake, the John Lennon estate and among others, is in advanced talks to sell a majority stake to the private equity firm Hellman & Friedman, sources tell Billboard.
Co-founded by Irving Azoff and Randy Grimmett in 2013, GMR’s majority owner, Texas Pacific Group (TPG), has signed a letter of intent to sell its undisclosed majority stake to Hellman & Friedman (HF), according to sources close to the talks. Other sources described the status of the talks as having reached an “understanding” to sell. The Azoff Company, which manages GMR among other companies in its portfolio, will retain its stake and continue daily management of GMR if the deal proceeds, sources say, although some say it, too, has earned a payout by selling a portion of its minority stake in the deal. Music Business Worldwide reported news of the sale on Thursday.
Institutional investors and private equity funds like New Mountain Capital and Blackstone have bought significant stakes in competing U.S. performance rights organizations in recent years, attracted by the key role that PROs play for businesses looking to access music in a commercial context.
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Multiple reports put the price for GMR at $3.3 billion. Sources tell Billboard that is the company’s valuation, and that GMR generates between $450 million and $500 million annually; other informed sources say the valuation is lower than that and dispute that revenue figure. With the Azoff Group retaining part of its stake in GMR, the price TPG fetches for its stake will be less than the headline $3.3 billion figure, those sources point out. GMR is being advised by the investment bank Moelis.
Representatives for TPG, HF and The Azoff Company declined to comment.
Hellman & Friedman is a San Francisco-based private equity firm that specializes in traditional buyouts in the technology and financial services sectors. Among media and entertainment companies, HF previously invested in the German media company Axel Springer and Getty Images. It has since sold its stakes in both companies.
The deal, which is expected to close this year, will not change anything “for the writers or the GMR management team,” a source familiar with the matter says. “GMR’s goal will remain the same: to transform the industry and bring more value to songwriters and their publishers. This is just a deal where one private equity firm investing in a company will be replaced by another. TPG’s exit from GMR is simply an exercise in realizing return on investment.”
Knowledgeable financial sources suggest the complex deal could involve TPG stakes in The Azoff Company, the umbrella holding company that oversees not only GMR but the artist management company Full Stop Management; the private equity-funded investment arm Iconic Artists Group, which buys artist and songwriter music rights; and Giant Music, an independent record label. Other sources say that even though TPG is exiting its GMR investment, it still retains a small minority equity stake in Giant Music.
GMR has built a reputation for being highly selective when it comes to signing songwriters, even more so than rival boutique performance rights organization SESAC.
Founded in 1930, the Blackstone-owned SESAC currently represents only songwriters it has invited to join for representation, an approach that has resulted in a carefully-curated song roster that allows it to command market rates commensurate with its catalog.
In contrast, the two largest U.S. PROs, ASCAP and BMI, operate under DOJ-mandated consent decrees and must accept any songwriter who wants to join. They are also subject to government mandated rates, set through rates courts in the federal Southern District of New York, if negotiations with licensees fail.
GMR has built a reputation for only signing superstar writers. Its limited catalog of about 150-200 artists and songwriters across a number of genres includes Bad Bunny, Billie Eilish, Drake, Eddie Vedder, Harry Styles, Jon Bon Jovi, Prince and others.
While sources say that GMR often pays the highest rates among PROs, those rates are not disclosed. However, in 2016, in a since-settled Radio Music Licensing Committee (RMLC) lawsuit against GMR alleging GMR engaged in monopolistic practices, the RMLC complaint quantified how large GMR is by citing that its share of radio performances sat between 5% and 7.5%, but it was charging as though it represented 15%. The complaint also said GMR lured songwriters to sign there by promising to pay out 30% more than its competitors.
If the GMR deal closes, it will mark the second time in a year that a U.S. PRO has changed hands. In February, New Mountain Capital acquired BMI in a deal believed to be valued at $1.2 billion, with sources saying that the PRO had about $145 million in earnings before interest, taxes, depreciation and amortization (EBITDA). That implies about an 8.25 times multiple. Sources say the constraints of the DOJ’s consent decree weighed down BMI’s valuation. When Blackstone acquired SESAC in 2017, Billboard estimated the PRO’s lucrative business model helped it fetch a nearly 12 times multiple of $85 million in EBITDA for a $1 billion valuation.
Like SESAC and now BMI, GMR is secretive about its financials and none of its data is public. Depending on what GMR’s specific financials are, it could go for at least a 12 times multiple, if not higher, with some financial sources suggesting it could maybe even reach a 17 times EBITDA multiple.
One GMR characteristic that songwriters find attractive is its use of a rate card, a unique feature among U.S. PROs that is considered more transparent and easier to understand than the rate formulas employed by ASCAP and BMI, numerous sources say.
Sources say GMR’s affiliation with Azoff and his portfolio of companies that employ powerful industry executives is one of the keys to its success. In fact, some big-name artists and songwriters handled by Azoff management companies are signed with GMR. Consequently, with Azoff and Grimmett and other top Azoff executives still calling the shots, the company is expected to retain its thus-far unique status as the home of superstar and mega-hit songwriters.