Business News
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Billionaire hedge fund titan Steve Cohen‘s Point72 Asset Management has acquired a 5.5% stake in Sphere Entertainment Co, the MSG Entertainment spin-off company that owns the state-of-the-art Las Vegas Sphere venue. Point72 disclosed in a regulatory filing on Monday (June 24) that it acquired 1.56 million shares of Sphere Entertainment Co in the second quarter, […]
JKBX, the music investment platform backed by Spotify and Red Light Management, said Tuesday (June 25) that yields on more than half the songs up for investment on the platform saw substantial increases in 2023. That’s evidence, the start-up’s execs say, that if it makes dollars, it makes sense.
Pronounced “jukebox,” JKBX’s first Securities and Exchange Commission-regulated offering went live in March, giving average Joe investors the chance to buy royalty shares that earn money when songs like Adele‘s “Rumour Has It” or Taylor Swift‘s “Welcome To New York” get played.
Ten of the 85 songs in JKBX’s initial offering generated yields of 5% to 9.6% percent in 2023, while total revenue for songs in the listing was up 9% in 2023 compared to 2022, the company said. While investors get paid dividends based only on income that JKBX has received since April 1, which excludes most of the 2023 reported income, the jump in yields makes the case that investors stand to earn tangible returns, JKBX executives say.
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The highest-earning song by 2023 revenues was OneRepublic‘s “Counting Stars”, which generated $376,750 in combined revenue from the songwriter’s share of composition rights and producer’s share of sound recording rights. That works out to a 5.5% yield per royalty share for composition and a 6.98% yield per royalty share for sound recording rights.
Another OneRepublic song, “If I Lose Myself,” along with “Wings” by Birdy, were among the songs with the highest per-royalty-share yields in 2023, at 9.66% and 7.71%, respectively. When the company launched, executives estimated investor returns of around 3.5%.
The 10 most popular songs to buy royalty shares in include Beyoncé‘s “Halo,” Ellie Goulding‘s “Burn” and “Lean On” performed by Major Lazer, MØ and DJ Snake, among others. The company declined to say what percentage of the royalty shares in the initial offering have sold.
JKBX is quick to caution that future returns are not guaranteed. The estimated yields are based on the last 12 months of income, and “variations in income are expected over the copyright lifespan of the asset,” the company says.
Institutional investors like insurance companies and pension funds have led recent demand for investing in music assets because the yields on music rights are typically resilient during broader market downturns and the asset class offers low-risk returns compared to other alternative assets.
Institutional investors, private equity funds and high-net-worth individuals have poured billions into acquiring direct stakes in catalogs or backing companies that do, or into buying securities backed by catalogs held by music companies like Concord, Kobalt and Chord.
JKBX was founded in 2022 with the goal of bringing retail investors into the asset class by offering a cheaper, Securities and Exchange Commission-regulated way to invest in music. It officially launched in March of this year.
“JKBX empowers people to invest in music as a regulated security, bringing together investment fundamentals with true passion,” JKBX CEO Scott Cohen said in a statement. “I believe that the fans that helped make these songs successful should also have the opportunity to share in the wealth.”
LONDON — Tom Kiehl has been announced as the new chief executive of UK Music, succeeding Jamie Njoku-Goodwin, who left the British industry trade body last year to work for Prime Minister Rishi Sunak.
Kiehl has held the role of interim chief executive at UK Music since Njoku-Goodwin’s sudden exit in September. He has worked at the London-based umbrella organization, which represents all sectors of the United Kingdom’s music industry, since 2012 – initially working as director of public affairs before being promoted to deputy CEO in 2018.
In a statement announcing Kiehl’s appointment, UK Music said it had received more than 130 applications for the role and had carried out an “extensive recruitment process” to find its new CEO.
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“We are entering a critical new era of change for the music industry when the political landscape is also rapidly changing. At this important time, I’m confident Tom is the right person for the job,” said Tom Watson, UK Music Chair, in a statement.
Watson went on to say that Kiehl “will be a tireless advocate for our members and our sector – using his wide range of talents to drive UK Music to even greater heights.”
Kiehl’s promotion to the head of UK Music comes less than two weeks before the U.K. general election on July 4 when the country goes to the polls to elect a new government.
Last month, Kiehl called on the leaders of all the main British political parties to support the U.K. music industry’s role as a “key national asset” that is facing intense global competition.
To help grow the British music industry, which generated £6.7 billion ($8.2 billion) for the country’s economy in 2022 and supports 210,000 jobs, according to research commissioned by UK Music, the trade group wants policy makers to protect creators’ rights from being exploited by AI developers, as well as secure a cultural touring agreement with the EU to address many of the lasting issues caused by Brexit.
UK Music also wants the next government to introduce a new tax credit to increase U.K.-based music production and establish tighter regulations for secondary ticketing platforms.
Kiehl’s extensive experience of working with politicians and government officials means that he is well placed to try and achieve those aims. Prior to joining UK Music, the widely respected music executive worked in the Houses of Parliament for 11 years as a senior advisor and researcher for the Liberal Democrat party. More recently, Kiehl led a successful campaign to change planning laws to better protect grassroots music venues.
“It’s an immense privilege and great responsibility to take on the role of leading UK Music at such a pivotal moment,” said Kiehl in a statement.
The newly appointed CEO said he would continue to work with the organization’s members to lobby government officials for measures that would support the music industry “ranging from strong copyright protections and more music teachers, to key safeguards around AI and greater support for music freelancers.”
“My vision for UK Music is to build on our mission of bringing our sector together to speak with one voice and secure our place as the key organization that fuels the growth and prominence of the UK’s music industry,” said Kiehl. “We must be relevant, representative, and able to deliver for the sector in order to achieve this.”
Giant Music, the record label launched under The Azoff Company banner in 2022, has signed Australian singer/songwriter Ruel, the company tells Billboard. This marks the first signing for Nate Albert, who joined Giant Music as president in January. The label will release “Kiss Me,” Ruel’s cover of the hit song by Sixpence None the Richer, on Thursday (June 27).
“Ruel is truly a singular talent, and we are thrilled to be part of his next chapter,” said Albert in a statement.
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Best known for songs like “Painkiller,” “Dazed & Confused” and “GROWING UP IS ___”, Ruel released his debut album, 4TH WALL, last year. In August, he’s slated to play Lollapalooza for the first time.
Also this week…
Hip-hop producer, singer and songwriter Lithe signed with WME for global representation. The Melbourne-bred artist began putting out music in 2018 and has released several EPs since. His single “Fall Back,” released in March, currently boasts more than 97 million streams on Spotify. He’s managed by Benjamin James of Mutual Friends.
Boston-bred alt-rock band Vundabar signed to Loma Vista Recordings. The label released the group’s new garage-rock song, “I Got Cracked,” on Tuesday (June 25). Composed of Brandon Hagen, Drew McDonald and Zack Abramo, Vundabar is best known for its RIAA platinum-certified track “Alien Blues,” which boasts more than 540 million streams on Spotify alone. “Vundabar has already accomplished so much as a totally independent band, and we are thrilled to welcome them to Loma Vista for this exciting next stage of their career,” said Loma Vista A&R Susan Busch in a statement. The band is managed by Ally Ehasz and Zack Zarrillo at Alternate Side and booked by Greg Horbal and Carly Goldberg at Wasserman.
Rising country singer-songwriter Bayker Blankenship (“Maxed Out”) signed with Lone Star/Santa Anna Records. According to a press release, “Maxed Out” boasts more than 26,000 creates and more than 6 million views on TikTok. In a statement, Alamo Records/Santa Anna Records CEO Todd Moscowitz said the song “is quickly establishing itself as a very reactive hit.”
Drew Baldridge signed with UTA for representation in all areas. The country singer-songwriter’s single “She’s Somebody’s Daughter” currently sits at No. 15 on Billboard‘s Country Airplay chart, a feat he reached without the backing of a major label or a management team. Baldridge is signed with Sony Music Publishing. His team also consists of business manager Becky Harris (Huskin-Harris Business Management) and attorney Jeff Biederman (Greenberg Traurig, LLP). – Jessica Nicholson
Grammy-nominated artist, songwriter and producer Gallant (“Weight in Gold,” “Cave Me In”) signed with Mom+Pop Music. The first release under the deal is Gallant’s new single, “Coldstar.” Gallant has collaborated with artists including Dua Lipa, Zhu, Brandy, Noah Cyrus and Sufjan Stevens and appeared at festivals including Coachella, Bonnaroo and Austin City Limits.
10K Projects signed virtual artist angelbaby via Web3 agency Hume and and will re-release the track “Life Is Good” featuring Jagwar Twin. “This agreement is a major milestone for Hume as we continue our mission to become Pixar for music,” said the Hume team in a statement. “We’ve been looking for a partner that can push our artists further into culture and we’re excited to work towards that goal with 10K on ‘Life Is Good.’”
Big Loud Records signed singer-songwriter Kashus Culpepper. The Alabama native began performing during a deployment with the U.S. Navy in Rota, Spain. On Friday (June 21), the label released his single “After Me?”. Culpepper is repped by CAA for booking and managed by Jay Harren. – Jessica Nicholson
Dexter and the Moonrocks, “a formerly country/western band” that now makes “Western Space Grunge music,” according to a press release, signed to Severance Records, an imprint of Big Loud Rock. The label will release the band’s latest EP — aptly titled Western Space Grunge — on July 19. “Bleach,” the first song from the EP, was released on June 12. The band is managed by Chris Schoemann at Lion’s Claw Entertainment and booked by Mike Krug at WME.
Country singer-songwriter Ashland Craft signed with independent record label Leo33. Craft has supported artists including Cody Johnson, Ashley McBryde, Zac Brown Band, Luke Combs and Morgan Wallen on tour. She recently wrapped her Damascus Acoustic Tour with Elvie Shane and performed at CMA Fest. She’s next slated to play festivals including Summerfest, Watershed Music Festival and Field & Stream Festival.
Chicago-based private equity firm Flexpoint Ford said on Tuesday that it invested $165 million in Create Music Group in a funding round that a source said values Create as worth $1 billion. Create plans to use the money to scale operations, expand services and fund acquisitions, said CEO & founder Jonathan Strauss. “Flexpoint’s investment will […]
The consortium acquiring French music company Believe increased its holdings to 94.99% of share equity at the conclusion of the tender offer, the company announced Monday (June 25). That marks a nearly 10% increase from the 85.04% of shares the consortium held a week earlier.
Led by CEO Denis Ladegaillerie, who founded Believe in 2005 to take advantage of the rapidly evolving digital music business, the consortium purchased 19.6 million shares at 15.00 euros ($16.10) per share during the offer, which ran from June 3 to June 21. Combined with blocks of shares previously acquired from investors, the consortium now holds 95.6 million of the 100.7 million shares outstanding. The free float — shares owned by minority investors — is 5.01%. The consortium, which also includes major shareholders EQT and TCV, commands 106.5 million of 113 million — 94.29% — of Believe’s voting rights.
While the consortium does not plan on executing a mandatory squeeze-out for shares not tendered by minority shareholders, because the free float — shares not held by insiders that can be publicly traded — has fallen under 15%, Believe will be de-listed from some stock indexes.
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Also on Monday, Believe announced the appointment of Andrew Fisher, a new director representing EQT, after venture capital firm Ventech sold its shares to the consortium and lost a director. Fisher’s ratification will go to a vote in the 2024 annual general meeting. The board additionally appointed two observers: Michael Kalfayan, general partner at TCV, and Nicolas Brugère, partner at EQT.
The consortium announced a takeover bid for Believe in February at 15.00 euros ($16.10), which represented a 21% premium over the prior closing price. According to an offer document, the consortium wants to take over the company “so that it can better execute on its value-creation plan and accelerate the scale-up of an independent player supporting artists and label clients” and “further grow and consolidate its position as a leader in the French and European markets.”
After the Believe board of directors backed the takeover bid on April 19, the consortium purchased a large block of shares from venture capital firms XAnge and Ventech. Before the acquisitions, TCV was the biggest shareholder with 41.1% of share capital, while Ladegaillerie owned 12.5%, private equity firm Ventech owned 12.0%, XAnge owned 6.3% and roughly 3.8% of shares were held by a strategic holding fund and in treasury shares. Free float was 24.4%.
Warner Music Group briefly looked at acquiring Believe in March and estimated a bid of “at least” 17 euros ($18.24) per share, which would have valued the company at 1.65 billion euros ($1.8 billion). But the pursuit was short-lived; Warner dropped out of the running in April.
Any music lover knows that a great song transcends borders and languages. Now, that unifying power is being leveraged as a diplomatic tool.
On Monday (June 24), YouTube announced a partnership with the U.S. State Department as part of the Global Music Diplomacy Initiative, a program launched last September by U.S. Secretary of State Antony J. Blinken that aims to use music to promote peace and diplomacy around the world.
The project centers around a group of genre-spanning artists who will act as musical ambassadors. Chuck D, Herbie Hancock, Jelly Roll, Armani White, Breland, Denyce Graves, Grace Bowers, Justin Tranter, Kane Brown, Lainey Wilson and Teddy Swims are all participating, with additional artists to be announced.
The Global Music Diplomacy Initiative is an extension of the PEACE through Music Diplomacy Act, which was signed into law by President Joe Biden last year and directed the State Department to facilitate public-private partnerships that would support music-related diplomacy.
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YouTube was selected as a partner given its global reach and influence on music culture worldwide. The partnership will include micro-grants to support people who use music to create positive change in their communities; YouTube will also assist the State Department in its work using music as a tool for learning English. Additionally, they will team up to engage audiences and aspiring artists in Australia, Brazil, Canada, France and India and “utilize major international gatherings to inspire action around the unifying power of music,” according to a blog post written by YouTube global head of music Lyor Cohen and YouTube vp of public policy Leslie Miller.
In a joint statement, Cohen and Miller wrote, “Music is a unifying force — it transcends language, cultural and national differences. It helps us understand and appreciate each other in ways almost nothing else can. During the height of the Cold War, the United States launched the Jazz Ambassadors program to send artists like Louis Armstrong, Dizzy Gillespie and Sarah Vaughn overseas to bridge cultural gaps and cultivate goodwill across the globe. The Jazz Ambassadors program left a lasting legacy, demonstrating the power of music as a diplomatic tool for fostering cultural understanding.”
“We’re excited to be a part of the next chapter in music diplomacy, helping to amplify the voices of artists and strengthen our community bonds across borders,” the statement continued. “Music reminds us more of what we can have in common than what separates us. That is the message we intend to echo around the world as we embark on this partnership, using the power of music to inspire peace for all.”
The board of governors of the Academy of Motion Picture Arts and Sciences announced on Monday (June 24) that CEO Bill Kramer will continue in his role through July 2028. Kramer’s contract, up for renewal in 2025, was approved one year early due to what the Academy calls “his exceptional leadership and significant contributions.” “Bill […]
Weeks after teaming with Oak View Group to acquire Canadian Music Week, Loft Entertainment has made another strategic partnership to expand its reach. The Toronto-based music company is joining forces with one twenty eight, a talent booking and cause marketing “impact agency” that focuses on connecting artists and influencers with social causes. The agency has […]
SiriusXM had its best week since December 2023 this week, leading all music stocks in a week when the losers outnumbered the winners two to one. Shares of the company jumped 12.3% to $2.93 following the company’s decision to conduct a 1-for-10 reverse stock split when it merges with the Liberty Media SiriusXM Group tracking stock later this year. SiriusXM gained 16.4% in the week ended Dec. 15, 2023.
The reverse split is meant to boost SiriusXM’s beleaguered share price. After years of steady growth in its satellite radio business, the company has suffered declines in both revenue and satellite subscribers as it attempts to build a competitive streaming service. The company lost 445,000 self-pay subscribers in 2023 — a 1% decline — and experienced a 1.4% drop in the first quarter of 2024. The revamped streaming app launched in December at $9.99 per month, about half the average revenue per user generated from satellite radio subscriptions in 2023.
SiriusXM was the only music stock to post a double-digit gain this week and one of only six stocks in the 20-company Billboard Global Music Index to see growth. With 13 stocks declining and one — French music company Believe — unchanged, the index fell 0.3% to 1,814.88. On average, live music stocks fared the best with an average gain of 0.6%. Other segments posted declines: streaming stocks fell 3.7%, radio stocks dropped 2.9%, and record labels and publishers dipped 1.3%.
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Live Nation rose 4.7% to $92.96, its highest closing price since June 5. The company’s shares are down 8.3% since the Department of Justice brought an antitrust lawsuit that seeks to break up its concert promotion and ticketing operations, but it’s held steady since an initial post-lawsuit drop. Friday’s closing price was just 52 cents below the price the day after the lawsuit was announced on May 23.
Shares of Spotify rose 1.5% to $317.86 to mark their third successive weekly gain. Cost-cutting and price-hiking have helped Spotify’s stock gain 69.2% in 2024 and 101.8% in the last 52 weeks. There was more price-related news on Friday (June 21) as Spotify revealed a new “basic” plan in the United States, which costs $10.99 per month and offers users a plan that doesn’t include audiobooks. The “premium individual” plan includes both music and 15 hours of audiobook listening for $11.99 per month, while the “audiobook access” tier provides 15 hours of audiobook listening and the ad-supported music service for $9.99 per month.
iHeartMedia was the index’s worst performer after dropping 17.4% to $1.00. The radio giant’s stock is down 62.5% year to date amidst a weak radio advertising market and steady growth at competing streaming services. LiveOne fell 12.6% to $1.59, bringing its year-to-date gain to 13.6%.
Music was outperformed by broader indexes as stocks reached new highs this week. On Thursday (June 20), the S&P 500 set a new all-time high of 5,503.53 and the Nasdaq composite reached a new high of 17,936.79. For the week, the S&P 500 rose 0.6% to 5,464.62 and the Nasdaq composite was barely above breakeven at 17,689.36. In the United Kingdom, the FTSE 100 rose 1.1% to 8,237.72. South Korea’s KOSPI composite index gained 0.9% to 2,784.26. China’s Shanghai Composite Index fell 1.1% to 2,998.14.