Business News
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Rapper Freddie Gibbs signed with AWAL. The announcement coincided with the surprise release of Gibbs’ long-awaited album, You Only Die 1nce, which dropped Nov. 1. AWAL senior vp/head of urban music Norva Denton previously attempted to sign Gibbs twice before finally partnering with him at his former label, Warner Records. Denton went on to executive produce Gibbs’ 2022 album, $oul $old $eparately, alongside Gibbs and Gibbs’ manager/partner Ben “Lambo” Lambert. “Happy to be where they want me…I feel Celebrated,” said Gibbs in a statement. “I’m Awal Shawty! I love the freedom… We’re able to create at our own pace and it feels good at this stage in my career.”
Madison Beer (“Make You Mine,” “15 Minutes”) signed with WME for global representation. The singer-songwriter recently finished her The Spinnin Tour, which hit 63 venues on multiple continents. She continues to be managed by Tina Kennedy at Full Stop, with legal representation by Kenny Meiselas at Grubman, Shire, Meiselas & Sacks.
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Vocalist/producer/writer Oliver Tree (“Life Goes On,” “Alien Boy”) also signed with WME. According to a press release, Tree has garnered more than 2 billion streams across major platforms. His third studio album, Alone In a Crowd, was released in September 2023. He continues to be managed by Dan Awad and Paul Donatelli at Good Luck Have Fun, with legal representation by Nicky Stein.
Hard rock band Saliva signed with Judge & Jury Records, the label founded by producer Howard Benson and Neil Sanderson of Three Days Grace. The first release under the deal is the new single “Time Bomb.” Saliva is managed by Frank Mastalerz, Dino Kourelis and Bob Hathaway at FM Music Management and booked by Ian “Newy” Koletsis at Sound Talent Group and Spencer Zubrow at Pinnacle Entertainment.
Also signing to Judge & Jury Records was L.A. metal band Butcher Babies, coinciding with the release of its new single, “Sincerity.” The band is managed by Zachry Yoshioka at Powerline and booked by Jim Sennett and JJ Cassiere (North America) and Ian Fintak (rest of the world) at 33 and West.
Tunde Adebimpe, the frontman for TV on the Radio, signed a solo recording deal with Sub Pop and released the new single “Magnetic,” his solo debut. Adebimpe’s solo debut album is slated for release next year.
“Country-infused” sister quartet The BoykinZ signed to Quality Control Music, marking the indie label’s first country music signing. The group’s latest single, “Fell in Love With a Cowboy,” will be released on Friday (Nov. 15). The BoykinZ is managed by Craig King at Gentle King Group.
Singer-songwriter Ali Sethi (“Pasoori”) signed an exclusive global distribution deal with The Orchard for his label Zubberdust Media. Sethi plans to release new music later this year and into 2025. He’s managed by Aroop Sanakkayala at Roopster Entertainment.
Egyptian artist Amr Diab signed an exclusive partnership with Sony Music Entertainment Middle East. The multi-album deal includes the acquisition of Diab’s music catalog, including popular tracks like “Inta El Haz,” “Zay Manty” and “Ya Ana Ya La.”
Warner Music Nashville signed Texas native Braxton Keith to its roster. Keith just released the song “Fall This Way” from his upcoming EP Blue, out Dec. 6. Keith is managed by Alex Torrez and Emily Vincent at Torrez Music Group and booked by Andrew McWilliams at Evergreen Artist Group. – Jessica Nicholson
ONErpm signed Nashville-based artist Tyler Rich, who has notched RIAA-certified gold singles “The Difference” and “Leave Her Wild.” ONErpm will release the first single from Rich’s sophomore full-length album this fall. – Jessica Nicholson
Indonesian R&B duo Galdive signed with Mom+Pop Music and released the first single under the new deal, “Night Charade.” More music will be released soon.
Wynn Williams signed with CAA for exclusive booking representation. Texas native Williams, known for songs including “Country Therapy,” is signed with GCE Records and has opened shows for Randall King, Aaron Watson, Cody Johnson and others. – Jessica Nicholson
Japanese-British artist, model and influencer Hana Kuro signed a global production/management deal with Handcraft Entertainment, marking the second major signing for the J-pop-focused company following Anna Aya earlier this year.
Ikenna Nwagboso, the co-founder/global head of label services and partnerships at emPawa Africa, will exit the company in January, it was announced Monday (Nov. 11)
Nwagboso launched the Nigeria-based talent incubation enterprise in 2018 alongside CEO/co-founder Mr. Eazi (real name Oluwatosin Ajibade). Since then, he’s overseen the signing and development of artists such as GuiltyBeatz, Joeboy, Tekno, Fave, King Promise, Minz, Xenia Manasseh, Nandy and Nezsa. In May, Tekno joined emPawa Africa as an investor and partner, and his Cartel Music label struck a joint venture with the company. Nwagboso has also secured crucial partnerships with Vydia, YouTube Music, Kobalt Music and Beyoncé‘s Parkwood Entertainment while spearheading the company’s flagship emPawa 100 and emPawa 30 campaigns, which are first-of-their-kind artist development programs that have launched the careers of 130 emerging artists across the continent.
“Ikenna has served emPawa with dedication over the past eight years, building some of the biggest new superstars in the industry,” Mr. Eazi said in a press release. “We look forward to building on the strong foundation he has established.”
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After Nwagboso leaves emPawa Africa at the top of next year, the Toronto-based executive will focus on developing artists through his new Image Ent./Exodus Music Group. Canadian artist Chrissy Spratt and British songwriter Geo are signed to the company, which is consulting on Rwandan artist Bruce Melodie’s upcoming debut album via S-Curve Records.
“I will continue to offer my advice to Eazi and the executive management team at emPawa, but it’s time to chart a new path. I am humbled and honored to have had the privilege to work with the artists and teams I’ve been fortunate to work with and lead. It’s all been a gift,” Nwagboso said in a statement.
Joeboy, whom Mr. Eazi and Nwagboso discovered as part of the emPawa 100 initiative, became the first artist to sign a publishing and distribution deal with the company in 2017. He left the company earlier this year to launch his own label, Young Legend, in partnership with Warner Records. In a statement, the “Sip (Alcohol)” singer credited Nwagboso with helping guide his career from an unknown artist to an international star.
“I’ve worked with Ikenna since the start of my career and he is one of the most reliable people when it comes to making sure his artists are provided with the best opportunities,” said Joeboy. “He is definitely one of the major game changers and role players to the African entertainment sector to the world. He has also been a very integral part of the foundation of my musical progress and growth.”
Spotify rode a post-election wave of market enthusiasm to close above $400 for the first time on Friday (Nov. 8), valuing the music-streaming giant at nearly $80.5 billion. Before finishing at $400.68, up 4.1% for the week, the company’s stock reached an all-time high of $405.88.
The Stockholm, Sweden-based company’s stock price has increased 113% in 2024 as the company overtook Universal Music Group (UMG) as the most valuable music company. When investors began to tire of high-growth streaming companies with little to show in profitability, Spotify underwent two major rounds of layoffs in 2023, helping reduce costs without sacrificing subscriber growth or revenue. With third-quarter earnings coming on Tuesday (Nov. 12), Spotify will show whether it has maintained that momentum. At least one analyst is optimistic ahead of earnings: Deutsche Bank raised its Spotify price target on Wednesday to $440 from $430.
U.S. stock markets soared this week following the election of Donald Trump on Tuesday (Nov. 5) and the U.S. Federal Reserve’s decision on Thursday (Nov. 7) to lower interest rates by a quarter of a percentage point. On Friday, the Nasdaq composite closed at an all-time high of 19,286.78, up 5.7%. The S&P 500 gained 4.7% to close at a record high of 5,995.54. China’s Shanghai Composite Index rose 5.5% to 3,452.30. South Korea’s KOSPI composite index improved just 0.7% to 2,561.15. In the U.K., the FTSE 100 fell 1.3% to 8,072.39.
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The 20-company Billboard Global Music Index gained 2.4% to an all-time high of 2,043.02, bringing its year-to-date gain to 33.2%. The index had 13 stocks in positive territory while six lost ground and one was unchanged.
The week’s top music stock was iHeartMedia, which jumped 16.7% to $2.44 after the company announced it will restructure much of its retiring debt and plans to save $200 million in 2025 through cost cuts and the embrace of technology. “Technology is the key to increasing our operating leverage and is a constant focus for us,” CEO Bob Pittman said during an earnings call on Thursday. “It allows us to speed up processes, streamline legacy systems and it enables our folks to create more, better and faster.” iHeartMedia shares are down 8.6% year to date but have risen 180% since May 24.
LiveOne gained 15.6% to $0.89 per share after the music streamer announced that revenue increased 14% to $32.6 million and paid members rose 27% to 645,000 in its fiscal second quarter ended Sept. 30. Reservoir Media was another top gainer, improving 9.1% to $9.00.
On the live front, Live Nation shares rose 5.1% to $123.02 following a post-election day boost. The concert promoter is currently facing a lawsuit from the U.S. Department of Justice but could find a better outcome from new appointments made by the Trump administration. The election wasn’t the only reason for the stock’s gains: Morgan Stanley upped its price target to $140 from $120 based on “a combination of strong underlying consumer demand and powerful artist incentives to tour,” analysts wrote in an investor note on Tuesday. Deutsche Bank also increased its Live Nation price target to $130 from $122.
K-pop stocks surged this week despite HYBE and SM Entertainment both reporting sharp drops in profit last quarter due partly to weaker recorded music revenues. HYBE shares jumped 6.4% after the company reported a 99% drop in net income. Likewise, SM Entertainment gained 7.2% the same week the company announced quarterly net profit fell 96% on a 9% revenue decline and a 36% drop in recorded music revenue. Investors may have gained optimism from SM Entertainment’s announcement it will launch a new girl group — its first since aespa debuted five years ago — in 2025 with a single and album release in the first quarter.
JYP Entertainment, which has not yet announced quarterly earnings, shot up 12.6%, and YG Entertainment continued its hot streak, rising 6.3% and bringing its gain in the last three weeks to 17.6%. YG has received a boost from the success of “APT” by ROSÉ featuring Bruno Mars. The song is currently in its second week atop both the Billboard Global 200 and Billboard Global Excl. U.S. charts.
Tencent Music Entertainment (TME) shares rose 2.4% to $11.39 ahead of the company’s third-quarter earnings on Tuesday (Nov. 12). Bernstein initiated coverage of TME with a $14 price target. Barclays initiated coverage with an “overweight” rating and a $16 price target.
German concert promoter CTS Eventim was the worst-performing music stock of the week, dropping 10.4% to 87.70 euros ($94.05). The company will release third-quarter results on Nov. 21. Elsewhere, Cumulus Media dropped 6.4% to $0.88, adding to the prior week’s 19% decline, while SiriusXM dropped 5.5% to $26.13.
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The sweeping electoral victory of Donald Trump will change the U.S. government, and the country itself, in ways that no one can yet predict. So far, though, it appears that the music industry will not be affected as dramatically as other businesses.
“I don’t think there will be that much of a change,” said a senior executive at one of the major labels. Partly that’s because music, and copyright, are no longer the hot-button issues they were a decade ago. And partly that’s because, at a time of increased partisan rancor, copyright is one of a few genuinely bipartisan issues, according to a half-dozen executives. Because it brings together Democrats who tend to look favorably on the media business and Republicans who believe in strong property rights, passing legislation often depends more on building a coalition of legislators from both parties.
There are no music companies in Trump’s crosshairs, at least from his own public comments, and he tends to look favorably on entertainers, even when they tend not to return that respect. Indeed, right-wing Republicans have been far more critical of media companies and online platforms than of major labels and movie studios.
The most immediate music business issue before the government is the Department of Justice antitrust case against Live Nation Entertainment, which seeks to break up the company. Trump will appoint a new attorney general to replace Merrick Garland, and that appointee will almost certainly replace Jonathan Kanter, who runs the antitrust division. The future of the case will depend on Kanter’s replacement, and several music executives and antitrust experts said that it’s hard to predict how that person will proceed.
“We congratulate President-elect Trump on his election,” said a spokesperson for Live Nation Entertainment. “Live Nation is proud to help bring joy to fans through concerts, sports and other live events. We look forward to working with the incoming administration to continue driving the positive impacts our industry has on American jobs and local economies.”
Several executives without direct knowledge of the matter speculated that, for optics reasons, the DOJ would be less likely to drop the case than to pursue a low-stakes settlement, but all of them made clear that there was no way to know.
Right now, the big issue in the music business is artificial intelligence, and the industry has been lobbying for the Nurture Originals, Foster Art, and Keep Entertainment Safe (NO FAKES) Act, which would protect the voices and likenesses of human creators. The bill was introduced in the Senate in July and the House of Representatives in September. It has sponsors on both sides of the aisle, including Senators Marsha Blackburn (R-Tenn.) and Amy Klobuchar (D-Minn.). (One might presume they do not agree on much else.) The industry is going to push to pass it in the “lame-duck” Congress, before the end of the year, but it will conflict with other priorities, and several executives said that would be a long shot. Otherwise, it will be re-introduced next year, and the changes in government are not expected to affect its chances much.
Some of the policies Trump has said he will pursue, such as tariffs for imports, could be bad for U.S. business on a broader level. This could make physical goods more expensive, especially merchandise, such as T-shirts. It could also make CDs and vinyl more expensive, although only by so much, since they could also be manufactured in the U.S.
It is also possible that changes to the tax system could affect catalog sales, as well as the desirability of songs and recordings as an investment. But it is unclear how much taxes will change — and other economic factors, such as interest rates, are likely to affect investment calculations more.
After 18 years on Canadian airwaves, MTV Canada is preparing to go off the air on Dec. 31. The decision to shutter the specialty channel was confirmed by Bell Media, with a company spokesperson citing “changing audiences” on specialty TV as the reason for the closure.
MTV Canada launched in 2006 as part of the CTV network, and the channel offered viewers a Canadianized version of the MTV brand, one that has had a huge international impact. MTV Canada’s programming provided a mix of reality TV, music content, talk, lifestyle and pop culture-oriented documentary programming.
Many of the channel’s most popular shows were talk and reality-based, airing The Hills and Teen Mom. MTV Live, launched in March 2006, launched the career of co-host Dan Levy. The flagship half-hour variety show ran for six seasons, and won a Gemini award for Best Talk Series.
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Now best known as the co-creator and co-star of hit Emmy-winning Canadian TV comedy Schitt’s Creek, Dan Levy would gain prominence in Canada co-hosting, co-writing and co-producing the MTV Canada ratings hit The Hills: After Show (later just The After Show) with Jessi Cruickshank.
The channel later become increasingly dependent on such American reality shows as Floribama Shore, Jersey Shore: Family Vacation and Caught In The Act: Unfaithful in its programming, and by the end was playing multiple hours per day of the comedy reality clip show Ridiculousness.
South of the border, the MTV brand has also suffered in recent years, with owner Paramount Media Networks, shutting down MTV News and pulling down its website’s online archives in May 2023, as part of a massive round of layoffs at Paramount.
MTV Canada’s name and branding was used under a licensing agreement with Paramount Global. Unlike MTV channels in the United States and internationally, the channel was restricted in its ability to carry music programming until 2015, due to conditions in the channel’s license issued by the Canadian Radio-television and Telecommunications Commission (CRTC).
Those restrictions meant that, unlike its international counterparts, MTV Canada never employed the “Music Television” tagline. As a result, in terms of music programming, the channel struggled to compete with the homegrown and much-beloved MuchMusic channel, which is also owned by Bell Media.
Anthem Entertainment & Wax Records Announce New Creative Partnership
Anthem Entertainment and Wax Records are joining forces.
The independent music company and record label have announced a strategic creative partnership, one they state “is designed to revolutionize the artist development process.”
The Anthem-Wax partnership seeks to remove barriers between songwriters, producers and artists, and give them the tools and resources to create together. That includes initiatives like international song camps to connect people across diverse genres, in-house studio spaces and dedicated writing rooms. These resources are designed to facilitate a higher volume of music and effective market readiness.
Anthem Entertainment is a big player in publishing and licensing, with a stable that includes hit songwriters like Chantal Kreviazuk and Timbaland. The company has a massive catalog of songs, an infrastructure featuring robust creative and executive teams, and creative spaces in Toronto and Nashville. Anthem recently sold its Production Music Group to Slipstream, a deal that included noted production music agency Jingle Punks and added over 650,000 tracks to Slipstream’s catalog.
Since starting in 2009, Wax Records has built a roster headed by platinum-selling artists Alyssa Reid, Shawn Desman and Virginia to Vegas along with bülow, Conor Gains, Blitz//Berlin and more.
The partnership expands the scope of both companies.
“I’m thrilled to welcome the Wax team — and their exceptional roster of artists — into the Anthem family,” says Anthem CEO Jason Klein. “Jamie [Appleby, Wax Records President and Head of A&R] and Ron [Morse, Wax Records CEO] have built an extraordinary label, with a creative and agile approach to artist discovery, development, and marketing that transcends conventional limitations. This partnership will allow Wax to elevate their outstanding work with additional resources and infrastructure, and introduce an exciting new creative pipeline for Anthem’s songwriters.
“The possibilities for global success with this partnership are limitless.”
Anthem and Wax tout the partnership as “an evolution of the music business” and a key to artist empowerment as well as a key to opening doors internationally.
“The global music marketplace is an ever-changing adventure,” says Wax’s Jamie Appleby. “Through countless hours of dedication and hard work, we strive to cultivate a vibrant entrepreneurial culture that supports and provides globalization opportunities for our community. We are excited for the next evolution of Wax Records, and have tremendous admiration for Jason and the exceptional team at Anthem. This new venture will expand our ongoing commitment to our incredible artists, venture partners, and sub label groups.”
Billionaire hedge funder and Universal Music Group board member Bill Ackman called for UMG to move its stock listing and legal headquarters to the United States from Amsterdam after violent attacks on Israeli soccer fans overnight in the Dutch capital. Amsterdam’s Mayor Femke Halsema said fans of Maccabi Tel Aviv were attacked and “pelted with […]
Before hitting the stage to receive the Sir George Martin Award at MBW’s Music Business UK Awards in London on Tuesday night (Nov. 5), outgoing Warner Music Group CEO of recorded music Max Lousada was introduced by someone who truly needs no introduction: longtime Atlantic Records superstar Ed Sheeran, who characterized Lousada as part of […]
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Read on for mostly good news and don’t forget to nominate an impactful executive for our Power 100 Players’ Choice Award, plus peep our weekly interview series spotlighting a single c-suiter and our helpful calendar of notable industry events and confabs.
Lekeisha Irion is the new head of A&R at Warner Chappell Music Benelux — a nifty portmanteau for Belgium, the Netherlands and Luxembourg. Based in Amsterdam, Irion will report to Niels Walboomers, president of records and publishing in the three-nation region. Since joining as A&R Manager last year following a stint as an office manager for Sony Music Publishing, Irion has influenced Dutch pop and hip-hop, working with artists like Roxy Dekker, who has slapped four No. 1s in the Netherlands this year, Dutch singer-rapper Antoon. Known for her collaborative work with Warner Music Benelux’s recorded music team, Irion has helped secure both publishing and recording deals for several artists. Walboomers and Shani Gonzales, WCM’s Head of International A&R, praised Irion’s early success and strong instincts for new talent. “She understands how genres and scenes are evolving in different markets and spots the opportunities for her writers to jump into collabs,” Gonzales said.
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Sony Music Publishing elevated Racheal Conte to vice president of sample clearance, legal and business affairs. In her new role, Conte will lead the U.S. sample clearance team, modernize operations and develop strategies to expand sampling opportunities for SMP’s songwriters and catalog. She’ll also collaborate with global offices to streamline sample clearances for U.S.-based works, reporting directly to Peter Brodsky, evp of business and legal affairs and general counsel, from New York. Conte joined SMP in 2006 and has held various roles, most recently assistant director of sample clearance. “Racheal’s contributions have been key to the success of SMP’s songwriters and catalogs, and it has been rewarding to see her growth as a leader throughout her time at the company,” said Brodsky.
RADIO, RADIO: iHeartMedia laid off dozens — hundreds, according to reports — of staffers from radio stations around the country. Among the impacted in the sweeping cuts are regional presidents Matt Scarano (Chicago), Clyde Bass (Texas/Arkansas), Alan Chartrand (Boston) and Michael Burger (Raleigh), among others … Back at the home office, iHeart elevated Jordan Fasbender from general counsel to chief legal officer, with the former 21st Century Fox exec retaining her other titles of evp and corporate secretary … Audacy hired senior vp of research and insights Ray Borelli, who arrives after working as Warner Bros. Discovery vp of ad sales research.
Emily Crews, former vp of brands and synchronisation at Warner Music Australia, joined Level Two Music as head of partnerships. She brings extensive experience in synch licensing and artist-brand collaborations from her time at Warner and, prior to that, Universal Music. The Sydneysider said she’s excited about Level Two’s dynamic and thoughtful approach to music supervision, while managing director Jen Taunton praised Crews’ ability to “navigate through often complex and layered deals, always managing to find the ‘sweet spot.’”
Nashville-based Reliant Talent Agency has announced a round of promotions and hires, with former Paradigm music executive Keith Richards joining RTA’s festival department. Reliant has also promoted Ron Kaplan and Garry Buck to executive vp roles, while Kailey Edgerton, Cole Speed and Robert Baugh have been promoted from coordinators to agents. Additionally, the agency has relocated its headquarters to a new office space at 1610 West End Ave. in Nashville. –Jessica Nicholson
NASHVILLE NOTES: Kelli Wasilauski resigned as The Oriel Co. director of Nashville operations, ending her year-long tenure on Oct. 28 … Keller Turner Andrews & Ghanem expanded with three new attorneys. J. Rush Hicks joins as Of Counsel, adding decades of experience and previous leadership at Belmont’s Mike Curb College of Entertainment & Music Business. New associates Cheshire Rigler and Alyssa Johnson also bring experience from other Nashville entertainment law firms.
Los Angeles marketing agency Game Over Media named Gavrielle Chavez as chief operating officer. Chavez will oversee operations across Game Over Studios, Game Over Agency, Game Over Records, and the new GameTune platform. Her role emphasizes expanding reach within next-gen communities and enhancing fan engagement at the company, where recent projects include campaigns for Big Sean, Childish Gambino, Imagine Dragons and Tyla. Chavez previously worked at Scopely, where she led product marketing for the popular game Monopoly Go!, and before that was a creator strategic at TikTok, where she launched TikTok Shop and fostered partnerships between gaming brands and creators. Founder Anthony Pisano said Chavez’s experience at Scopely and TikTok align with Game Over Media’s vision, adding “Gavi’s expertise will also be invaluable as we scale GameTune, our new cutting-edge AI platform that empowers record labels, brands, and gaming publishers to reach their audiences through strategic, data-driven marketing.”
Kuke Music Holding Limited, a NYSE-listed classical music service based in China, announced that its president, Li Sun, resigned in July. The company, which provides classical content to educational resources and boasts a library of about 3 million audio and video tracks, clarified that Sun’s departure was amicable, with no disputes over operational or policy issues. Following her resignation, CEO and chairman He Yu has overseen the company.
ICYMI:
Azu Olvera
Deezer appointed Pedro Kurtz as director of operations for the Americas … Former SiriusXM exec Azucena “Azu” Olvera is now general manager of WK Records … Alana Dolgin joined Atlantic Music Group as the label’s first president of digital marketing … Spinnin’ Records president Roger de Graaf is retiring from the Dutch label he co-founded … and Cara Hutchison was named head of The Lede Company‘s new music division, while Jess Anderson also joins her team. [KEEP READING]
Last Week’s Turntable: UMG’s Nigerian Label Picks a President
Sony Music revenue grew 10% year-on-year to 448.2 billion yen ($2.9 billion) last quarter, as hit records by SZA, David Gilmour and Travis Scott, coupled with higher sales from live shows and merchandise, helped boost growth in both recorded music and music publishing.
For its fiscal second quarter ended Sept. 30, Sony Music — comprising Sony Music Entertainment, Sony Music Entertainment Japan and Sony Music Publishing — reported quarterly operating income of 90 billion yen ($589 million), a 12% rise on the same period a year ago.
Adjusted operating income before depreciation and amortization (OIBDA) climbed 15% year-on-year, totaling just under 112 billion yen ($733 million), Sony Music’s parent company, Sony Group Corp., reported Friday (Nov. 8).
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The company said growth in revenue from streaming subscriptions, live events and merchandise from recorded music, as well as the impact of foreign exchange rates were among the key drivers of its positive quarterly financial results. They bring Sony Music’s half-year earnings up to 890.2 billion yen ($5.8 billion), up 16% year-on-year, with a half-year operating income of 176 billion yen ($1.1 billion).
Breaking down Sony Music’s quarterly earnings, recorded music revenue increased 14% year-on-year to 290 billion yen ($1.9 billion), with subscription and ad-supported streaming up 9% to 189 billion yen ($1.2 billion), accounting for around 65% of the firm’s recorded music earnings.
Physical revenue jumped 22% year-on-year to 25 billion yen ($164 million), while Sony’s “other” category — which includes revenue from merchandise, live performances and licensing revenue from synch, public performance and broadcast — was up 33% to 68 billion yen ($446 million).
SZA’s blockbuster album SOS, which has broken numerous chart records since it was first released in December 2022, including overtaking Aretha Franklin’s Aretha Now as the longest-running chart topper of the Top R&B/Hip-Hop Albums tally, was Sony Music’s top seller of the quarter.
In second place was Gilmour’s first studio album in nine years, Luck and Strange, which debuted at No. 10 on the Billboard 200 earlier this year. Other top sellers for Sony Music in the three month period included Scott’s UTOPIA, Future & Metro Boomin’s WE DON’T TRUST YOU, Beyoncé’s COWBOY CARTER, Harry Styles’ Harry’s House and Luke Combs’ This One’s for You. The one title in the top 10 from outside this decade was Michael Jackson’s Thriller, the 1982 classic co-produced by Quincy Jones, who passed away on Sunday (Nov. 3).
On the music publishing side, Sony Music reported revenue of 92 billion yen ($604 million), up 11% year-on-year. The company said the strong performance of its publishing arm was led by strong gains in streaming income, which rose 9% to just under 53 billion yen ($347 million). Publishing’s “other” category grew by around 13% year-on-year to 38.6 billion yen ($253 million). The company disclosed that as of March 31, its publishing division either owned or administered approximately 6.24 million songs.
Visual media and platform sales, which includes revenue from animation titles, game applications and service offerings for music and visual products, fell slightly to 62 billion yen ($407 million), down 1% on the same period last year.
Sony Music said its forecast for full-year revenue was unchanged from the previous quarter with projected sales of 1.74 trillion yen (approximately $11.4 billion) and projected operating income of 330 billion yen ($2.2 billion).
Sony Music’s fiscal second quarter highlights:
▪Revenue of 448 billion yen ($2.9 billion), up 10% year-on-year▪Adjusted operating income of 112 billion yen ($733 million), up 15%▪Recorded music revenue increased 14% year-on-year to 290 billion yen ($1.9 billion)▪Music publishing revenue of 92 billion yen ($604 million), up 11%▪Visual media and platform revenue of 62 billion yen ($407 million), down 1%
Is the music business, traditionally an arbiter of cool, out of touch with U.S. consumers? It’s a tough question to ask — and a tough time to ask it. But if you compare the results of the presidential election with the politics of artists and executives, it’s hard not to.
The dominant mood among people I know is shock at the scale of Donald Trump’s victory — most expected a race so close that ballot-counting would continue all week — and an unsettling feeling that the U.S. is not the country we thought it was. What happened and why will be discussed for years. There’s also a more immediate question: Why didn’t more people see this coming?
Part of the reason is that this still seems so weird — I’m old enough to remember when talking about a professional golfer’s private parts would have been disqualifying in politics, let alone the Republican party. But part of it is that, unintentionally, many people in the media business now live in a bit of a bubble. I’m one of them: I live in Berlin and spend most of my time in the U.S. in or near New York, and I read The New York Times and The New Yorker. When it comes to music, none of my favorite artists supported Trump, and one, Bruce Springsteen, actively campaigned against him. Some of the biggest musicians in the world also supported Kamala Harris — Taylor Swift, Beyoncé, Ariana Grande, Sabrina Carpenter — as did most music executives. Many of them must share my surprise.
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Are they — are we — too detached from the mainstream?
A significant number of Trump supporters are right-wing racists — certainly enough to make one worry. But it’s hard to make the case that Trump supporters are extremists if they account for more than half the vote. By definition, they’re mainstream. Worryingly, the Democrats don’t seem to know how to talk to them in a way that addresses their concerns. Calling them deplorables didn’t work, and making the case that Trump would be a disaster for democracy didn’t, either. (Democracy means that people vote for their leaders — it doesn’t mean that they vote for the leaders you want.) The Democrats focus more on what people can do for their country at a time voters seem more interested in what their country can do for them. Ideas are important, but many people seem more focused on the affordability of groceries.
For whatever reason, it’s now clear that there are more Trump voters than many people, including musicians and music executives, thought. They are also younger and more diverse than people realized. Many of them must listen to pop music. But is the music business listening to them? The idea that it’s controversial just to endorse Trump, without echoing any of his uglier rhetoric, means turning one’s back on more than half of American voters. That’s not how mass marketing works.
The challenge Trump presents to American democracy is far more important than selling music, of course. And I suspect I will get a few emails about how crazy it is to suggest that anyone market music to people who think immigrants are eating cats. But reaching different kinds of people with different kinds of art is what the music business does.
It’s also what politics is supposed to do. Both the music business and politics need to do better at reaching large, diverse audiences. That often means connecting with existing fans, but it has to also mean reaching out to new ones. Often, people simply won’t buy what they’re being sold, whether it’s a new album or a new candidate. But it’s important to have those conversations — both for those of us who want to help elect a new president in four years and those of us who want to argue that this one is going to do a great job.
More and more, politics seems stuck in a loop, in which ideas are marketed to, and cheered, by those who have already decided on them. In music, that’s known as a superfan strategy, and it’s very important. But building one requires reaching new people to turn into fans, or supporters, in the first place.