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If you believe everything you read — and the state of U.S. politics suggests that, unfortunately, many people do — private equity has replaced money as the root of all evil. The truth, as usual, is a bit more complicated.
The latest piping hot take comes from The New York Times opinion section, in a piece that argues that “private equity is destroying our music ecosystem.” (No, not the ecosystem!) The problem seems to be that private equity, which often loads companies up with debt and can be unrealistic in its goals for returns — this much is true, although it’s not clear that public companies or other sources of capital are better — is “gobbling up the rights for old hits and pumping them back into our present.” This sounds downright grotesque, what with the gobbling and the pumping and so on, but it’s really just an ostentatious way to say that companies with money are buying creators’ rights as an investment.
This is bad for the ecosystem, the Times says, because the investors behind these deals — the most prominent example in the piece is Primary Wave’s purchase of 50% of Whitney Houston’s music and other rights — promote the songs they own in a way that somehow squeezes out new music. If that’s the case, though, they’re doing a terrible job of it. In 2023, a full 48% of U.S. on-demand audio streaming came from music released between 2019 and 2023, according to Luminate. A Billboard analysis of 2021 music consumption in the United States showed that music from after 2010 accounted for 78.7% of on-demand streaming, music released in or after 2000 accounted for 90% and all music recorded before 1980 accounted for fewer streams than Drake.
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This idea that new music is losing ground to old songs seems to come from a misunderstanding of catalog music, which consists of tracks released more than 18 months ago. The market share of catalog has never been higher — it was 72.6% last year, up from 65.1% in 2020, and it was much lower before streaming took off. But while many people associate catalog with classic rock — AC/DC, the Eagles and the ’60s and ’70s acts that dominated the category in the CD era — that’s an outdated idea. The music that drives this category isn’t that “deep catalog,” but rather what many executives call “shallow catalog” — releases from the last five or 10 years, often from artists who are still active. Some journalists see the size of some private equity deals and jump to the conclusion that classic rock is killing new music. Even by music business standards, though, this is bad math. When it comes to on-demand streaming, Drake isn’t only bigger than the Beatles — he’s more popular than all the music from the ’60s, plus the ’70s and the ’50s, combined.
The Times opinion essay gets the trend backward: Private equity doesn’t make songs popular, it buys songs that are steady in the popularity they already have. Even before music streaming got big, some investors realized that classic songs generate steady royalties that are far less vulnerable to market cycles than most assets. U.S. songwriters got more interested in selling their rights after 2006, when the IRS began to treat income from catalog sales as a capital gain, which is subject to a lower tax rate than personal income from publishing royalties. Streaming simply smoothed out the peaks and valleys of reissue revenue into predictable returns that appeal to investors — especially for songs that have stood the test of time.
Although private equity invests in song catalogs, it rarely manages them, and most of the executives who do come from the music business. (At least some of what they do now is not so different from what they did then.) For that matter, most of the ways the opinion piece says investors are “building extended multimedia universes around songs” aren’t quite as new as they seem. The Monkees and Alvin and the Chipmunks were both “multimedia universes” in their day, as was Tom T. Hall’s “Harper Valley PTA,” a country hit (for Jeannie C. Riley) that inspired a movie, a TV show, Spanish and Norwegian translations, and a sequel song. Nicki Minaj built her hit “Super Freaky Girl” around Rick James’ “Super Freak” — with encouragement from the 50% owner Hipgnosis Songs Fund, according to the Times — but James’ song was the basis for a hit back in the CD era. Remember “U Can’t Touch This?” Hammer time?
The radical thing about on-demand streaming is that most of the music ever made is now easily available, in a way that its popularity can be measured by consumption rather than purchase. And it has become clear that music from the last few years is more popular with listeners than industry executives thought, especially relative to brand-new and older music. When older songs do blow up big on streaming services, it often has less to do with promotion than serendipity — Fleetwood Mac’s “Dreams” returned to the Hot 100 in 2020 after a TikTok video of a skateboarder went viral and Kate Bush’s “Running Up That Hill hit No. 3 two years later after Stranger Things music supervisor Nora Felder decided it would be the perfect song to use as a plot device. And although many adults consider those songs classics, one reason they became hits again is that, from the perspective of younger fans, they are new. Isn’t this a good thing?
There are plenty of problems with streaming, including its low payments to most creators and the difficulty of breaking new acts. But neither of these has anything to do with private equity — the first comes from the way royalties are distributed and the reluctance of consumers to pay more for subscriptions, while the latter has more to do with how hard it is to stand out amid the sheer volume of new music that comes online every day. More serious discussion about these issues is important, but lamenting the fact that important creators earn so much money for the rights to their work isn’t the right way to start it.
China‘s Tencent Music Entertainment Group saw its profit jump 36% to 5.22 billion yuan ($735 million) in 2023 as growth in paid subscriptions helped offset mixed results in its social media business, according to an earnings filing on Tuesday (Mar. 19). The leading music streaming company in China — Tencent Music operates QQ Music, Kugou […]
When video-blogger Martina Sazunic moved from Seoul to Tokyo in 2016, she was shocked to learn that — unlike in South Korea — using music by some of Japan’s biggest pop stars on her YouTube channel was not permitted. Doing so, she quickly learned, would result in the offending video being taken down at the request of the rights holder.
“In [South] Korea, the record labels were open to uploading music videos and that encouraged people to share and spread Korean music. At the same time in Japan, labels refused to upload their music,” says Sazunic, a Canadian expat, who has spent 15 years producing content for YouTube and since 2021 has run the popular lifestyle channel King Kogi (188,000 subscribers), featuring videos about her adopted homeland.
For many years, local labels were reluctant to upload official music videos on YouTube through fear of cannibalizing physical sales and would only release truncated versions of songs on the platform. Use of sound recordings in user-generated content would, for the most part, be blocked and taken down. The rising popularity of streaming in the world’s second-biggest recorded music market — worth $2.7 billion in 2022, according to IFPI, behind only the United States — has, however, been transformative, leading local labels and management companies to pivot away from blocking songs on UGC platforms and towards licensing and monetizing them.
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“It’s been an uneasy process for consumers in Japan and that’s entirely down to Japanese rights holders, but the market is moving wholeheartedly into embracing music usage on UGC,” says Rob Wells, chief executive of Los Angeles-headquartered Orfium, one of several international tech firms now fighting it out to grow their share of the country’s emerging, yet potentially huge, UGC music market.
At present, UGC monetization is in its infancy in Japan, says Wells, but he predicts the market will rapidly grow over the next five years to deliver rights holders the kind of returns they already receive from other major music territories.
In 2022, Alphabet-owned YouTube says it paid out a record $6 billion to the music industry, although executives in Asia tell Billboard that only around 5% of that total — around $300 million – went to rights holders in Japan. That’s despite YouTube being the most popular video platform in the country with over 70 million monthly active users (YouTube declined to comment when contacted by Billboard for this article).
The main reason why Japan’s digital music market lags behind other countries is down to stakeholders’ historic desire to protect the enduring popularity of physical music formats, primarily CDs and music DVDs/Blu-ray discs, which accounted for 66% of revenues in 2022, according to the Recording Industry Association of Japan (RIAJ).
Digital’s share of the market is fast-growing though with streaming revenues rising 25% year-on-year to 93 billion yen ($618 million) in 2022, fueled by increased consumer take up of subscription services during the pandemic. That same year, overall digital music sales exceeded 100 billion yen ($665 million) for the first time since the RIAJ began tracking the data in 2005.
In response to the changing market, many of Japan’s leading labels and management companies (which often own the master recording rights for their acts) are rushing to partner with copyright technology companies to track and monetize the use of their content online.
Orfium, which generates income for clients by tracking and monetizing the use of music in broadcast and UGC platforms, has been active in Japan since 2022 when it acquired social media firm Breaker and is now one of the biggest operators in the local market. Others include Los Angeles-based PEX, Swiss-based Utopia Music, Spain’s BMAT and California-based Vobile.
French Music company Believe began operating in Japan last year and recently launched PLAYCODE, a new imprint dedicated to championing Japanese hip-hop acts. Prior to the company entering the market, Erika Ogawa, general manager of Believe Japan, said YouTube was being “under-utilized” by the music industry in Japan.
“It has untapped potential, particularly in terms of monetization, audience engagement and artist development which should be exploited by leveraging all its capabilities,” said Ogawa last year in a blogpost.
“I see Japan as being a huge opportunity for us and the wider industry,” says Wells, who served as Universal Music Group’s president of global digital business before joining Orfium in 2017. The company now has over 700 employees across nine territories in Europe, Asia and the U.S.
Wells says the company’s clients in Japan, which include Warner Music Japan, Victor Entertainment and leading music and entertainment company Avex Inc, have seen a 77% year-on-year rise in the number of YouTube UGC views being monetized with revenues growing 34%. (Wells declined to provide equivalent financial figures. Globally, Orfium says it generated more than $200 million in incremental revenue in 2022. Notable U.S. clients include Sony Music Publishing, Warner Music Group, Warner Chappell Music, Kobalt, Ingrooves and Hipgnosis.)
In recent months, the company has ramped up its operations in Japan, signing a deal with JASRAC, Japan’s largest collective management organization. It has also started working with entertainment company Bandai Namco Music Live, a leading player in the Japanese anime music market that represents an extensive catalog of more than 100,000 sound recordings and compositions, as well as more than 3,000 digital creators, including many YouTubers and Virtual YouTubers — a popular trend in Japan where online creators use virtual avatars and are known as VTubers.
The Bandai Namco deal marks Orfium’s entry into the global anime market — a rapidly growing sector that generated almost $25 billion in 2023, according to Morgan Stanley Research, and is projected to rise to over $35 billion within the next three years. The rising global prominence of Japanese anime opens up opportunities for the country’s creators of anime music, says Alan Swarts, CEO of Orfium Japan. Anime ranks as one of the continent’s most popular music genres behind only pop and Enka (traditional Japanese music), with 11 of last year’s top 30 songs in Japan being either anime theme songs or anime related. Anime titles in Bandai’s catalog include the hugely popular Love Live series, One-Punch Man and The Melancholy of Haruhi Suzumiya.
Swarts points to last year’s launch of a new weekly global chart by Billboard Japan, ranking the top 20 Japanese songs based on streaming and/or sales activity from more than 200 international markets, excluding Japan, as a significant development in the country’s music business that has heightened local labels’ focus on reaching global audiences.
“For a long time, Japan was a very insular physical-based market. That’s now changed and within Japanese music companies there is a big push to go global and make Japanese music as a big as Latin and K-pop has become outside their native territories,” says Swarts. “Utilizing streaming services and UGC platforms like YouTube will be key towards achieving that aim.”
“For us, Japan is the jump off point – the gateway to the rest of Asia,” says Wells. “People will soon realize that there are no more blocks on them being able to share music on these [UGC] platforms and that will quickly accelerate the growth.”
Nelly signed with WME for global representation. The rapper and singer’s most recent album, Heartland, was released in 2021 and peaked at No. 7 on Billboard‘s Top Country Albums chart, while the single “Lil Bit” featuring Florida Georgia Line remained at No. 1 on Billboard‘s Country Digital Song Sales chart for three weeks. Signed to RECORDS (Sony Music), Nelly also recently launched MoShine, a moonshine brand.
Symphonic metal band Nightwish renewed its contract with Nuclear Blast, reaching a new global multi-album deal with the label that it first signed with 20 years ago. The label also announced that it signed American death metal band Gatecreeper, which will release its third album, Dark Superstition, on the Nuclear Blast on May 17. Gatecreeper is represented by managers James Vitalo and James Grottola at Gold Theory Artists and booking agent Merrick Jarmulowicz at Ground Control Touring.
Play It Again Sam, an imprint of the [PIAS] label group, will release Nick Cave & the Bad Seeds‘ forthcoming album under a global license, in partnership with Cave’s label, Bad Seed. Titled Wild God, the album is slated for release on Aug. 30.
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Activist Artists Management signed folk-pop singer-songwriter Weyes Blood for management. She will be represented by Activist founding partners Bernie Cahill and Matt Maher, along with Activist senior director of A&R/creative Anna Kolander and head of global marketing Chris Ruff. Weyes Blood’s most recent album, And In the Darkness, Hearts Aglow, reached No. 1 on Billboard‘s Heatseekers Albums chart. She has performed at festivals including Coachella and Pitchfork and toured throughout the United States, Europe and Australia.
Indie-electronic pop group Metronomy signed with Ninja Tune, which released the band’s latest single, “Nice Town.” It marks the first release from the band’s upcoming Posse EP Volume 1 follow-up.
UTA signed country band Ole 60 for global representation in all areas. The group will continue being represented by Davis Danziger, Wales Toney and Ty Little at Whale Tale Management and lawyer Matt Cottingham. Coming up, Ole 60 is slated to support Dylan Gossett and Charles Wesley Godwin on their upcoming tours and will play the Grind City Music Festival in Memphis.
New York band Wild Pink signed with Fire Talk Records, which released the group’s label debut, the single “Air Drumming Fix You,” on Mar. 7. The group is booked by Ryan Farlow at Arrival Artists (North America) and Joren Heuvels at Hometown Talent (United Kingdom, EU and Asia) and managed by Joseph Marro at Lesser Matters. The band has a publishing deal with Downtown.
Nashville-based singer-songwriter Abbey Cone signed with Downtown Artist & Label Services for distribution. Her first release under the Downtown banner is a live cover of Leonard Cohen’s “Hallelujah.” Cone’s team also includes Amanda Quinton of Quinton Digital for management, Wasserman Group for booking and Warner Chappell Music/T.R.U.T.H. for publishing.
Veteran British singer-songwriter Dave Mason signed an exclusive management deal with Red Light in Atlanta. His team at the firm consists of Charlie Brusoc and Nick Manarino, which will work with Mason on his forthcoming music releases as well as the release of his memoir, which is slated for release this summer. He’s booked by Alec Vidmar and Darius Sabet at UTA.
Philadelphia artist Julia Pratt signed to RECORDS (Sony Music), which released her latest single, “Carolina,” last week in advance of a new EP. Pratt is managed by Doug Neumann and Josh Roth at Standards Music and booked by Seth Rappaport at Paladin Artists.
Singer-songwriter Alli Walker signed with RECORDS Nashville. To celebrate the partnership, Walker has released the track “I Like Big Trucks,” adding a country flavor to the 1990s Sir Mix-a-Lot hit “Baby Got Back.” Josh Easler, executive vp of promotion & commercial strategy for RECORDS Nashville, says, “The RECORDS Nashville team is always looking for artistry that stands out, and Alli Walker does just that. We are excited to get started amplifying what she is already having success with.” – Jessica Nicholson
Nashville punk band Winona Fighter, fronted by Chloe Kinnon, signed with Rise Records and shared a new single and music video, “I’m in the Market to Please No One.” More new music is slated for release this year. The band is booked by Justin Edwards at WME and managed by Michael Iurato at In De Goot Entertainment.
Country artist Dusty Black signed with Brown Sellers Brown and Stone Country Records for management and label representation, respectively. Black was formerly the CEO of Black Tie Moving before making the transition to artist.
ADA Japan signed a deal to distribute, promote and market Japanese-language songs by the Korean boy group One Pact via its South Korean label and entertainment agency, Armada Entertainment. Jump-starting the partnership was ADA’s release of One Pact’s debut local single, “Must Be Nice.” The band came to prominence after appearing on the Korean TV music audition series Boys Planet and the rap battle show High School Rapper 4.
MaKenzie signed with Warner Records, which released her new single, “Maybe” featuring TA Thomas, on Friday (Mar. 15). The R&B artist is managed by Tarek “Terk” Stevens at Terk Entertainment Group and attorney Donald Woodard at Carter + Woodard. Also at Warner Records, alt-rocker Willy Cobb signed with the label’s War Buddha Records imprint, which released his debut single, “Cigarette Smell,” on Friday (Mar. 15). Cobb is managed by Neil Mason at Red Light.
How to Dress Well (a.k.a. Tom Krell) signed with Sargent House for the release of his forthcoming album, I Am Toward You, which is set to drop May 10. He is managed by Shaun MacDonald at Codex Management.
BBR Music Group/BMG Nashville signed Alison Nichols, who earned a viral TikTok hit with her debut release, “is it just me?”, followed by her latest release, “HOOPS.” Nichols, who is of Asian-American heritage, grew up in Georgia and gleans influence from the Texas country music scene. – Jessica Nicholson
British-Chinese sibling duo Esme Emerson (Esme and Emerson Lee-Scott) signed with Communion Records and released its new single, “Please,” on the label, with an EP due later this year. The duo is booked by rowan@infinitefuture.co.uk.
Musician and social media influencer Peet Montzingo signed a management deal with Do Less. The signing coincided with the release of his HARV-produced debut single, “Party With a Weirdo,” on Friday (Mar. 15) through Vydia.
Punk band Gloom Girl MFG signed with R+D Artist Group for management ahead of the release of its Cage the Elephant-produced EP, POLYCRISIS. Additionally, the group recently signed with Reliant Talent Agency for booking. Gloom Girl MFG is signed to Los Angeles-based label Signs From the Universe.
Iconoclast, an artist and brand development company, said on Tuesday (March 19) it acquired legendary Great American Songbook singer Tony Bennett‘s catalog, as well as his name and image likeness rights.
The vocal titan known for his renditions of “Because of You” and “I Left My Heart in San Francisco” dedicated his nearly seven-decade career to the canon of American jazz classics, show tunes and popular songs from the first half of the century that are known as the Great American Songbook. Bennett, who died last July, became a bridge late in life between the classics and modern pop music through concerts and recordings with Amy Winehouse, Elvis Costello, k.d. lang and others.
Iconoclast founder Olivier Chastan, along with Bennett’s son and manager Danny Bennett, said the company has secured several Tony Bennett-branded projects, including a New York City restaurant, a series of watches with luxury American watch company Bulova and a Paramount+ documentary called The Lady and The Legend, about Bennett’s frequent collaborations with Lady Gaga.
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“We all walk in the footsteps of giants. Tony was one of these giants,” Chastan said in a statement. “Besides his extraordinary talent that radiated for over 60 years, Tony’s legacy is one of character, integrity, kindness and courage. We are truly honored to be the custodians of this incredible and historical legend.”
Danny Bennett said he expects the deal will ensure his father’s works “endure for future generations.”
“In working with Tony for over 40 years, my philosophy was always that I didn’t manage a career but, rather, managed a legacy,” said Danny Bennett. “Iconoclast … will continue this tradition.”
Chastan founded Iconoclast in 2021, after having previously led Irving Azoff‘s Iconic Artists Group. The company owns rights to works by artists including The Band musician Robbie Robertson, Marianne Faithfull and David Cassidy.
Terms of the deal were not disclosed. Iconoclast was represented by Sam Roseme and Peter Paterno of King, Holmes, Paterno & Soriano, and Tony Bennett was represented by Don Friedman of Grubman, Shire, Meiselas & Sacks.
Live Nation shares gained 4.0% to hit $103.77 this week, marking the stock’s best closing price since May 2, 2022, and the first time the concert promotion giant had five straight closes above $100 since late April and early May that same year.
Other music stocks didn’t fare as well. Most of the 20 companies in the Billboard Global Music Index dropped this week, with 13 stocks losing ground and just seven finishing the week in positive territory. The index fell 0.1% to 1,697.90, marking the first time it’s decreased in successive weeks since it fell during three consecutive weeks in October 2023. Multi-week declines are rare for the index: Since the beginning of 2023, it has had just two two-week declines, two three-week declines and one four-week decline (in July and August 2023). This week’s slight drop brought the index’s year-to-date gain to 10.8%.
In a relatively quiet week free of earnings releases or market-moving news, there was roughly an even mix of gains and losses from the most valuable companies. Universal Music Group increased 2.1% to 27.32 euros ($29.77) while Spotify dropped 1.7% to $254.89 and Warner Music Group (WMG) fell 2.9% to $32.94. Elsewhere, German promoter CTS Eventim rose 2.1% to 76.70 euros ($83.56) and reached a new 52-week high of 77.80 euros ($84.76).
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K-pop companies rebounded after a string of weekly declines. HYBE improved 2.3% to 199,000 won ($149.59) and SM Entertainment climbed 2.5% to 74,900 won ($56.30). YG Entertainment jumped 6.3% to 43,050 won ($32.36) but is still down 19.6% year to date.
French indie music company Believe finished at 15.52 euros ($16.91), still well above the 15.00 euros ($16.34) tender offer by a consortium that seeks to take the company private. WMG has expressed interest in Believe at 17.00 euros ($18.52) per share.
The companies with the largest gains and losses are among the least valuable on the index. The week’s greatest gainer was Abu Dhabi-based music streamer Anghami, which rose 15.6% to $1.11 and has a market capitalization of just $30.7 million — less than 0.1% of Spotify’s. Radio broadcast giant iHeartMedia and French music streamer Deezer had the index’s biggest losses of 10.0% and 10.3%, but iHeartMedia’s market cap is only $255 million while Deezer’s is about 245 million euros ($267 million).
The index’s four live music stocks had an average gain of 0.9% this week, topping the 0.4% gain of the seven record label and publishing stocks. Five streaming stocks averaged a less than 0.1% decline. Three radio companies — iHeartMedia, Cumulus Media and SiriusXM — had an average decline of 5.1%.
Key U.S. indexes also saw small declines this week. The Nasdaq composite fell 0.7% to 15,973.17. The S&P 500 fell 0.1% to 5,117.09. In the United Kingdom, the FTSE 100 gained 0.9% to 7,727.42. South Korea’s KOSPI composite index declined 0.5% to 2,666.84. China’s Shanghai Composite Index grew 0.3% to 3,054.64.
Billboard Power Players is expanding to Canada for the first time in 2024, nominations have now officially opened via this nomination form.
For its relative size, the country has produced some huge international success stories over the last decade, with artists like Drake, The Weeknd, Shawn Mendes, Justin Bieber and Tate McRae making big waves on the world stage.
That’s the case behind the scenes, too, including previous Power List honourees like Kristen Burke, the president of Warner Music Canada and the only female head of a major label in Canada; Wassim “Sal” Slaiby of The Weeknd’s XO Records and the founder of Universal Arabic Music; and Michael Rapino, the Canadian-born president and CEO of Live Nation who finished fourth on the recently revealed 2024 Power 100 list, behind only Taylor Swift and the global CEOs of two major labels.
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Billboard Canada Power Players, however, will be the first time the award will be exclusive to Canadians or those who’ve made an impact in Canada’s music industry. – Richard Trapunski
New U.S. Visa Fees Could Prove Costly for Canadian Musicians
The U.S. Citizenship and Immigration Services (USCIS) has published its final rule updating visa fees in several categories, along with a Frequently Asked Questions page summary.
Overall, creative arts petitioners will be hit with higher costs, increased petition prep requirements, and lengthier times for premium processing. This will affect Canadian and other musicians, as well as art workers, travelling across the border to play in the U.S.
After consultation with stakeholders including the American Federation of Musicians, final fees have been reduced from the initial amounts proposed by the Department of Homeland Security for nonprofits and certain small businesses with 25 or fewer employees.
The new fees, though, could prove costly for Canadian musicians, for whom crossing the border is a necessary part of a music career.
The fee increases were originally for early 2023, but will now take effect on April 1, 2024. – David Farrell
Music Declares Emergency Will Host a Climate Summit in Halifax Ahead of the Juno Awards
Music Declares Emergency (MDE) Canada is looking to spark conversation about the climate crisis at this year’s Juno Awards. Ahead of the ceremony on March 24, the advocacy organization will host a Mini Music Climate Summit at the Halifax Central Library, on March 22, to promote the need for climate action in the music industry.
The free, one-day event will consider topics such as sustainable transportation, carbon calculation, merch and food, and much more, providing an opportunity for industry members to share best practices and develop strategies around curbing emissions in the industry. MDE Canada previously held Canada’s first Music Climate Summit in Toronto in 2022.
The climate summit accompanies MDE Canada’s Climate Emergency Concert on March 17 in Halifax, where artists like Talia Schlanger and Jenn Grant will pay tribute to Neil Young and Joni Mitchell, two Canadian musicians who have used their platforms to promote environmental awareness. – Rosie Long Decter
Last Week ‘In Canada’: No to ‘Laughs,’ But Yes to Women in Music
LONDON — Strong growth in streaming, vinyl and even CD sales saw music spending in the United Kingdom increase for a ninth consecutive year in 2023, according to annual figures from labels trade body BPI published Thursday (March 14).
Total U.K. recorded music sales — comprising digital and physical revenues, public performance rights and sync — climbed 8.1% to 1.43 billion pounds ($1.8 billion) last year.
That’s the highest nominal amount ever achieved in the U.K in one year, although when the figures are adjusted for inflation, last year’s record revenues are actually 478 million pounds ($610 million) below the 1.9 billion pounds ($2.4 billion) where the music industry should have been in real terms since 2006, the first year when public performance and sync were included in the annual total, reports BPI.
Driving the growth was an 8.4% year-on-year rise in streaming revenues, which increased to 962 million pounds ($1.2 billion) and accounted for just over 67% of annual trade revenues in 2023 — broadly flat with its share of the U.K. market in the previous 12-month period. Ten years prior, streaming represented just 8.6% of British labels’ income.
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Breaking down streaming revenue, paid subscriptions to services like Spotify and Apple Music generated 827 million pounds ($1 billion), up 8.1% on 2022, while ad-funded revenue grew by over 12% to 71 million pounds ($90 million) and video streaming trade income rose 6.9% to 64 million pounds ($82 million).
Download sales fell 5.8% to 26 million pounds ($33 million), while total digital revenue was 989 million pounds ($1.2 billion), up 7.9% on the previous year.
BPI reports that nearly 2,250 artists registered more than 10 million audio streams in the U.K. last year — a rise of 17% over the past two years — with Miley Cyrus’ “Flowers” the most-streamed track, racking up almost 200 million audio and video streams. Behind Cyrus was Dave and Central Cee’s “Sprinter” (160 million streams) and “Escapism” by Raye featuring 070 Shake (142 million streams).
In terms of physical format sales, labels and artists received 243 million pounds ($310 million) in 2023, up almost 13% on 2022, when physical trade revenues dropped by a tenth.
Fueling physical’s recovery was a double-digit (18.6%) rise in vinyl album revenues, which totaled £142 million ($181 million) on the back of popular new releases by Taylor Swift, The Rolling Stones and Lana Del Rey, who had the top three best-selling vinyl titles in the U.K. last year with 1989 (Taylor’s Version), Hackney Diamonds and Did You Know There’s A Tunnel Under Ocean Blvd, respectively.
More surprisingly, CD revenues also grew in 2023, up 5.4% year-on-year to just under £100 million ($127 million) with Take That’s This Life the year’s biggest-selling CD release.
Despite the compact disc’s resurgence, which BPI partly attributed to high-profile annual marketing events such as Record Store Day and National Album Day, vinyl moved further ahead as the country’s leading physical format in terms of label income, making up just over 58% of all physical music trade revenue, compared to 55% the previous year.
Public performance revenue climbed 7% year-on-year to 155 million pounds ($198 million), while sync sales dropped 7.6% to just under 40 million pounds ($51 million).
BPI’s year-end figures differ from those released by the Digital Entertainment and Retail Association (ERA) in January as the two organizations have different counting methods.
BPI’s financial figures are based on Official Charts Company (OCC) data and a survey of its record label members, which include the U.K. arms of Universal Music Group, Sony Music Entertainment and Warner Music Group, as well as over 500 independent labels. ERA’s year-end results, which also use OCC data, also include retail value, hence the higher numbers.
The U.K. is the world’s third biggest recorded music market behind the U.S. and Japan with sales of just under $1.7 billion in trade value, according to IFPI’s 2023 Global Music Report.
“Led by streaming, this ninth consecutive annual rise in recorded music revenues highlights how a balanced and prosperous market enabled by significant label investment can help even more artists to succeed,” said BPI CEO Jo Twist in a statement.
It’s time for another spindle around the Executive Turntable, Billboard’s comprehensive(ish) compendium of promotions, hirings, exits and firings — and all things in between — across music. For a summary of all the goings-on at UMG, scroll to the bottom. For everything else, read on!
Deezer‘s search for a permanent replacement for the departing Jeronimo Folgueira is underway, but in the meantime the Paris-based streaming service has hired a ringer of sorts to keep the CEO seat warm. Stu Bergen, a 14-year veteran of Warner Music and longtime CEO of the label group’s international and global services division, has stepped in to serve as interim CEO until a new chief is found. Bergen, who left WMG in early 2021, has been a member of Deezer’s board of directors for more than a year and will remain there after the executive search is complete. “Stu’s in-depth knowledge of the music and digital industries, coupled with his tenure as a director on Deezer’s board, positions him perfectly to boost the company’s strategic direction and facilitate a seamless transition,” the company said this week, adding it believes Bergen is perfectly suited to guide them in its international expansion and boosting subscribers in key markets. The company recently posted positive financial results for 2023, with revenue up 7.4% to $524 million and an 11.5% increase in subscribers (thanks to business-to-business partnerships).
”I am honored to accept the interim CEO role at Deezer at this pivotal time,” Bergen said. “I am committed to strengthening the company’s values and driving its growth trajectory forward. With the dedicated team and clear objectives already in place, I am eager to lead us through this period of transition, ensuring the company is prepared for its ambitious future.”
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Merlin, the digital music licensing go-to for indies everywhere, announced an expansive run of promotions and role tweaks at the company. Over on the member and partner success teams, Emma Robinson ascends to senior director of member operations after six years of service; Daniele Yandel was promoted to senior manager of member operations after four years; four-year veteran Jo Danher is now senior manager of member relations; and Poppy Waring (seven years) and Shannon Bradley (three) both step up to senior manager of commercial partnerships. As for the finance fam, Vincent Moyo is promoted to director of commercial finance, four years in; Grace Styles approaches her three-year mark with a promotion to management accountant; Savannah Puleston bumps up to operations and events coordinator, nearly two years after joining Merlin. Did someone say data? Mili Payne (two years) is elevated to senior royalty coordinator and Tom White has been named senior coordinator of business analytics in Merlin’s reporting and insights team. Finally, Tolis Koutronas was elevated to senior developer of technology and business solutions, rewarding four years of enhancing Merlin’s infrastructure, while four-year staffer Katie Eckett is now senior manager of business and legal affairs.
NAMM, aka the National Association of Music Merchants, appointed AJ Zane as the trade org’s new director of technology. Zane’s many duties include running point on NAMM’s product and platform technology, cybersecurity, cloud engineering, infrastructure, corporate IT and a host of other responsibilities only a “career technologist” (NAMM president/CEO John Mlynczak’s words) could muster. “He brings a diverse background and experience that align with our commitment to stay at the forefront of technology and harness its power to propel our organization into the future,” Mlynczak said. Prior to NAMM, Zane was an engineering manager at real estate data management tool Measurable and before that was a technical principal at Veyo.
Haley Evans was elevated to the role of president at Mega House Music, a songwriter-producer management company and music publisher. She has worked her way up at Mega House over the last four years, guiding the careers of writing talents like Casey Smith (“Moral of the Story” by Ashe, “Cool” by Jonas Brothers), Gian Stone (“Stuck With You” by Justin Bieber and Ariana Grande), Caroline Pennell (“Past Life” by Trevor Daniel and Selena Gomez, “Everytime I Cry” by Ava Max), and Peter Fenn (“Nathan (still breathing)” by Fred Again.., “Slow Down” by Laufey). Evans also works across the Mega House’s full roster, helping with Monsters & Strangerz, Joe London, Sol Was and others. She manages rising folk artist Mon Rovia as well and has played a meaningful role in the company’s expansion into Nashville and Miami. In her new role, she will continue to report to co-CEOs David Silberstein and Jeremy Levin. –Kristin Robinson
Academy Music Group (AMG) appointed Liam Boylan as chief executive officer of the UK venue owner and operator. AMG’s roster of medium-sized venues across the country include O2 Victoria Warehouse in Manchester, O2 Academy Birmingham and the soon-to-reopen O2 Academy Brixton. Boylan was previously stadium director at the legendary Wembley Stadium, and prior to that worked for years at SJM Concerts and Manchester Arena. “We’re delighted to welcome Liam to the AMG team and look forward to working with him,” said Denis Desmond, chairman of AMG. “He has a wealth of knowledge and experience in the live industry and running major events. He will be a great asset.”
Concord Music Publishing hired Lüder Castringius for the newly created position of senior vp of legal and business affairs across Germany, Switzerland and Austria (GSA). In his new role, Castringius will play a “central role” in bolstering Concord’s interests in the sprawling region, remarked Duff Berschback, evp of legal and business affairs, who added: “The decision to create this position demonstrates our commitment to top-tier legal counsel and underscores our efforts to meet the rapidly evolving demands of the music market.” The Berlin-based exec arrives from BMG, where he rose to senior vp of business and legal affairs EU during a 15-year run at the company. Castringius reports directly to Berschback, who is based in Nashville, but will also work closely with Tina Funk, managing director of Concord Music Publishing, GSA. “We appreciate his sensitivity, his fighting spirit, and his commitment to shaping the character and roster of the publishing house… and ensuring the protection of our creators’ rights,” Funk said.
RADIO, RADIO: Audacy announced that svp of digital audio content Tim Clarke will depart at the end of the month, with his role — leading consumer-facing properties such as Audacy.com and the company’s radio app — being phased out and duties folded into other teams. Clarke joined Audacy in March 2021 as svp of market manager before quickly ascending to his current position. Prior to Audacy, he spent 12 years at Cox Media, rising to vp of audience and content for his last three. In a staff memo obtained by Radio Insight, chief digital officer J.D. Crowley called Clarke a “wonderful creative executive, a great friend and colleague to so many of us.”
Big Loud Rock, which specializes in big loud rock records, upped its visual marketing game with the appointment of Paul Wright as vp of creative strategy. Based in Los Angeles, he reports up to Lloyd Norman, svp of BLR, which is the alt-rock imprint of Big Loud Records. Wright joins from Red Bull Records, where as director of creative marketing he worked with Blxst, Albert Hammond Jr, AWOLNATION and others on tailored content. Prior to RBR, Wright racked up time at Nettwerk Music Group and Hopeless Records. Elsewhere at BLR, recent new hires and promotions include Dave Barbis as svp of promotion, Nicole Rich as director of promotion & publicity, Delaine Halpin as project marketing manager, Colleen Kennedy as operations manager and Bella DiDomenico as executive assistant to BLR president Greg Thompson. “We are thrilled to have an executive like Paul join the Big Loud Rock team and also to recognize the growth of our staff and the overall team building Big Loud Rock,” Thompson said.
Absolute Label Services added three new members to its London-based team. Joining as senior label manager is Dominic Squire, most recently senior international marketing manager at BMG. The independent services company also welcomed Jimmy Smith, formerly of Platoon, as a campaign coordinator. Finally, Finn Peat is now part of ALS’ digital right team in his first music industry gig.
Outback Presents promoted Fallon Nell to vp of booking, overseeing all Outback artist bookings for country, comedy and music events. Nell launched her career at Outback as the company’s first intern, before joining as a promoter representative in the company’s comedy department. She later transitioned to artist management at Alliance Artists (now Red Light Management Atlanta) before launching Brothers Management. Nell returned to Outback Presents in 2023, serving as senior booking manager. –Jessica Nicholson
NASHVILLE NOTES: Music City-based executive Kelly Bolton joined Warner Records as vp of A&R, focusing on country but reporting to Warner Records’ LA-based CEO Aaron Bay-Schuck. She arrives after more than five years at Tape Room Music, where she served as svp of A&R … Black River Records elevated Bill Mackay to vp of national promotion. Mackay joined the label in 2012 after more than 30 years in the industry, including stops at MCA, Sony and Stroudavarious Records, plus 16 years as a country radio programmer in markets including Pittsburgh, San Jose and San Diego. Congratulate Mackay at bmacky@blackriverent.com.
Creative Artists Agency (CAA) welcomed Julian Teixeira to the family as an agent in the music touring department. He arrives from The Bullitt Agency and brings a client roster that includes Dubfire, Chris Stussy, Dennis Cruz and Kölsch, among other. The George Washington University grad is based in CAA’s. New York offices.
ICYMI:
Following the curtain-raising of the Interscope Capitol Labels Group, chairman/CEO John Janick (pictured) announced more additions to his C-suite team (namely Gary Kelly and Jason Kawejsza), and a few days later fleshed out the structure of the new company … then UMG’s more East Coast-y labels reorganized under the new Republic Corps banner under Monte Lipman … and finally a member of the Corps, Mercury, announced several promotions and hires.
Last Week’s Turntable: Warner Chappell’s China Role
Former Treasury Secretary Steven Mnuchin said Thursday that he will put together an investor group to buy TikTok after the House passed a bill that would ban the popular video app in the U.S. if its China-based owner does not sell its stake.
During an interview on CNBC’s “Squawk Box,” Mnuchin, who served under President Donald Trump, said he had spoken “to a bunch of people” about creating an investor group that would purchase the popular social media company. He offered no details about who may be in the group or about TikTok’s possible valuation.
“This should be owned by U.S. businesses,” Mnuchin said. “There’s no way that the Chinese would ever let a U.S. company own something like this in China.”
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TikTok did not immediately respond to a request for comment.
The House bill, passed by a vote of 352-65, now goes to the Senate, where its prospects are unclear. Lawmakers in the Senate have indicated that the measure will undergo a thorough review. If it passes in the Senate, President Joe Biden has said he will sign it.
House lawmakers acted on concerns that TikTok’s current ownership structure is a national security threat. Lawmakers from both parties and administration officials have voiced concerns that TikTok’s parent company, ByteDance, could be compelled by Chinese authorities to hand over data on American users, spread pro-Beijing propaganda or suppress topics unfavorable to the Chinese government.
TikTok, for its part, has long denied that it could be used as a tool of Chinese authorities. The company insists it has never shared U.S. user data with the Chinese government and will not do so if asked. To date, the U.S. government also has not provided evidence that shows TikTok shared such information with authorities in China.
The White House had no immediate reaction Thursday to Mnuchin’s potential bid for TikTok.
“We’re still focused on continuing to work, providing some technical support and assistance to Congress, as this bill, which just passed the House, moves on to the Senate,” White House national security spokesman John Kirby said when asked about whether the Mnuchin consortium could assuage the administration’s national security concerns about TikTok.
“There is an ongoing legislative process for that. We obviously want to see the Senate take it up swiftly and we’re focused on making sure we’re providing them the context and information we believe is important so that this bill can actually do and address the national security concerns that we have with respect to TikTok.”
The fight over the platform takes place as U.S.-China relations have shifted into strategic rivalry, especially in areas such as advanced technology and data security, seen as essential to each country’s economic prowess and national security.
If passed and signed into law, the House bill would give ByteDance 180 days to sell the platform to a buyer that satisfies the U.S. government. It would also require the company to give up control of the TikTok algorithm that feeds users videos based off their preferences.
In addition to Mnuchin, some other investors, including “Shark Tank” star Kevin O’Leary, have voiced interest in buying TikTok’s U.S. business. But experts have said it could be challenging for ByteDance to sell the platform to a buyer who could afford it in a few months.
Big tech companies are best positioned to make such a purchase, but they would likely face intense scrutiny from antitrust regulators, which Mnuchin emphasized.
“I don’t think this should be controlled by any of the big U.S. tech companies. I think there could be antitrust issues on that,” he said during the interview. “This should be something that’s independent so we have a real competitor. And users love it, so it shouldn’t be shut down.”
He also said the app would need to be rebuilt in the U.S. with new technology.
In many ways, social media companies have become battlegrounds for partisan disagreements about how to control disinformation while protecting free speech. Mnuchin’s effort to buy TikTok comes as Trump and his allies have long complained about what they see as social media muzzling conservative voices.
Trump himself has voiced opposition to the House bill, saying that a ban on TikTok would help its rival, Facebook, which he continues to lambast over his 2020 election loss. Some other Republicans who oppose the bill say the U.S. should simply tell Americans about the security concerns with TikTok, but let them decide if they want to use the platform.
Meanwhile, some Democrats have expressed concern about singling out one company when other social media platforms also collect vast amounts of data on users. Opponents of the bill also say it would disrupt the lives of content creators who rely on the platform for income and run afoul of the First Amendment, which protects free speech.
This isn’t the first time a TikTok sale has been in play.
When Mnuchin was Treasury secretary, the Trump administration brokered a deal in 2020 that would have had U.S. corporations Oracle and Walmart take a large stake in TikTok on national security grounds.
The deal would have also made Oracle responsible for hosting all TikTok’s U.S. user data and securing computer systems to ensure national security requirements are satisfied. Microsoft also made a failed bid for TikTok that its CEO, Satya Nadella, later described as the “strangest thing” he had ever worked on.
Instead of congressional action, the 2020 arrangement was in response to a series of executive actions by Trump targeting TikTok.
But the sale never went through for a number of reasons. Trump’s executive orders got held up in court as the 2020 presidential election loomed. China also imposed stricter export controls on its technology providers.