Business News
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The European Union leveled its first antitrust penalty against Apple on Tuesday, fining the U.S. tech giant nearly $2 billion for breaking the blocâs competition laws by unfairly favoring its own music streaming service over rivals.
Apple banned app developers from âfully informing iOS users about alternative and cheaper music subscription services outside of the app,â said the European Commission, the 27-nation blocâs executive arm and top antitrust enforcer.
That is illegal under EU antitrust rules. Apple behaved this way for almost a decade, which meant many users paid âsignificantly higher prices for music streaming subscriptions,â the commission said.
The 1.8 billion-euro fine follows a long-running investigation triggered by a complaint from Swedish streaming service Spotify five years ago.
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The EU has led global efforts to crack down on Big Tech companies, including a series of multbillion-dollar fines for Google and charging Meta with distorting the online classified ad market. The commission also has opened a separate antitrust investigation into Appleâs mobile payments service.
The commissionâs investigation initially centered on two concerns. One was the iPhone makerâs practice of forcing app developers that are selling digital content to use its in-house payment system, which charges a 30% commission on all subscriptions.
But the EU later dropped that to focus on how Apple prevents app makers from telling their users about cheaper ways to pay for subscriptions that donât involve going through an app.
The investigation found that Apple banned streaming services from telling users about how much subscription offers cost outside of their apps, including links in their apps to pay for alternative subscriptions or even emailing users to tell them about different pricing options.
The fine comes the same week that new EU rules are set to kick in that are aimed at preventing tech companies from dominating digital markets.
The Digital Markets Act, due to take effect Thursday, imposes a set of doâs and donâts on âgatekeeperâ companies including Apple, Meta, Google parent Alphabet, and TikTok parent ByteDance â under threat of hefty fines.
The DMAâs provisions are designed to prevent tech giants from the sort of behavior thatâs at the heart of the Apple investigation. Apple has already revealed how it will comply, including allowing iPhone users in Europe to use app stores other than its own and enabling developers to offer alternative payment systems.
The commission also has opened a separate antitrust investigation into Appleâs mobile payments service, and the company has promised to open up its tap-and-go mobile payment system to rivals in order to resolve it.
Itâs been a nerve-wracking week for Universal Music Group employees â many did not know when they went to the office on Wednesday morning if theyâd have a job on Friday. Layoffs hit department heads first and then started to impact the rank and file.
Over the past year, more than a dozen companies across the music business have undergone layoffs, eliminating thousands of jobs and leaving those who remain in a state of uncertainty. In the past twelve months alone, Warner Music Group, Atlantic Music Group, SiriusXM, Amazon Music, TikTok Music, CAA, Discord, BMG, TIDAL and Spotify have all cut staff.
This week, Universal Music Group followed suit, instituting layoffs in search of around $270 million in annual savings. The process started Wednesday and continued through Friday (March 1), impacting publicity departments, radio teams, A&R, marketing and more.
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The cuts are part of a restructure of UMGâs label operations that chairman/CEO Lucian Grainge announced in an internal memo on Feb. 1. The shift reorganized the company loosely into an East Coast-West Coast orientation, with Republic Records CEO Monte Lipman overseeing Republic, Def Jam, Island and Mercury, and Interscope Geffen A&M chairman/CEO John Janick responsible for Interscope, Geffen, Capitol, Motown, Priority, Verve and Blue Note.
For UMG employees, the long runway leading into the layoffs â which were first hinted at back in October â combined with the fact that the company announced on Wednesday morning that it had earned more than $12 billion in revenue and $1.3 billion in net profit in 2023, has caused frustration, anger and anxiety, even for those who kept their jobs. That the layoffs came immediately following the annual earnings report, sources say, has led to greater frustration.
Though the scenes employees describe are typical for any company undergoing large-scale layoffs â the slow drip of news about whoâs been let go, and colleagues crying as they pack up their desks, for example â UMGâs layoffs have had an outsized impact on industry morale because of the labelâs position as the dominant market leader, its strong financial results and the extended period for which employees have known the cuts were coming.
In an email to staff, Grange said that âby reimagining our global structure, we are creating a blueprint for a future where our labels are empowered with new capabilities and additional agility, ensuring they can sign and support artists with enhanced access to UMGâs highest-performing internal teams and resources.â He added, âThis organizational redesign represents a new paradigm for artist support and fan engagement.â
UMG first signaled its cuts during an earnings call with financial analysts at the end of October. â[We] are currently conducting a careful review of our cost base, which we will complete over the coming months, and we will update you when appropriate about an anticipated cost savings program to commence in 2024,â said Boyd Muir, the companyâs executive vp and CFO. Grainge added that the company planned to âcut overheads in order to grow elsewhere.â
Earnings calls are, by nature, full of statistics and jargon like âadjusted EBITDA.â In January, the human cost of âcutting overheadâ started to become clear: That would mean laying off hundreds of employees. In a statement at the time, UMG said âwe are creating efficiencies in other areas of the business so we can remain nimble and responsive to the dynamic market, while realizing the benefits of our scale.â
The October earnings call did not make big headlines at the time. But many employees saw the January reports that layoffs were looming. âEvery day I wake up thinking, is this the day I lose my job?â a UMG employee said in February.
âIt is a particular kind of torture to leave people guessing for an extended period of time,â adds a music lawyer who has artist clients signed to UMG labels. âYour job is your No. 1 source of security. You add on top of already stressed individualsâ psyche the uncertainty of whether or not theyâre gonna have a job tomorrow and draw that out for months.â
A UMG spokesperson declined to disclose any headcount for the cuts. In the meantime, sources say executives and department heads have received some generous exit packages on their way out the door.
For others outside the labels who work with them on behalf of clients, the layoffs â at UMG, at Warner, where dozens were recently let go at Atlantic Records, and amid rumors that other labels will be following suit â have also made life difficult. With UMG specifically, one manager with an artist signed to a UMG label says that the stress permeating the labels has made it hard to plan a rollout for his act. And a second music attorney notes that itâs been hard to do record deals within the UMG system knowing that the teams his artist speaks with may not be around by the time the deal is done.
Artist teams are also trying to understand how the cuts impact them. âThe more I hear, the more stressed I am,â says another manager. There are âlots of firings across different positions. Some people are getting moved into jobs they arenât in any way prepared for. And some people are now being asked to do what was previously three different jobs at once.â
There are more cuts to come in a âphase twoâ of the âstrategic organizational redesignâ next year, according to UMGâs investor presentation this week, which stated that âa combination of further ex-U.S. headcount reduction and other operational efficienciesâ was set to begin in 2025. But not a single financial analyst asked questions about the extent of the layoffs on Wednesday. Instead, they asked about UMGâs battle with TikTok.
Nas wants to bring a state-of-the-art casino to his home borough of Queens.
On Thursday (Feb. 29), the rap legend was on hand to unveil the $5 billion vision for Resorts Worldâs Aqueduct Park in Southeast Queens as the company hopes to win a license from New York State to break ground on the project. If granted, the casino is expected to be one of the largest in the world at 350,000 square feet.
âThis is an ambitious project that will give new opportunities to the hard-working families who call Queens home, attract top-tier talent, and build up the next generation of leaders,â said Nas, who has partnered with Resorts World to help promote the project, in a statement. âClearly, with this project, the world is ours.â
The âQueens Get the Moneyâ rapper reportedly added at the unveiling: âItâs an honor to be here, to be a part of this with Resorts World, realizing the future, seeing what this can be and what it will be.â
Since Resorts World gained access to the land and infrastructure in 2010, it has been preparing to one day build a multi-functional casino. There are plans for a 7,000-seat capacity entertainment venue to host events and concerts as well.
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Park space, housing, hotels, restaurants and renovated transit options to JFK Airport and Manhattan are also part of the grand vision, which could create 5,000 union jobs.
Two-time NBA champion and current TNT basketball analyst Kenny âThe Jetâ Smith also endorsed the project; the plan includes building a sports academy with facilities named after the former Houston Rocket player.
âResorts World came to me with a clear goal of fostering tomorrowâs athletes, student athletes and leaders both on and off the court,â said Smith in a statement. âTheir investment in this Academy will help us teach the next generation the nuances of the game on and off the court, as well as the social, economic, and cultural impact of sports. Iâm thrilled to partner with them to improve the borough that raised me and take it to the next level.â
Per The New York Times, Resorts World as well as Yonkersâ Empire City are expected to receive two out of the three licenses granted by New York State. That would not bode well for JAY-Zâs Times Square casino bid in Manhattan.
Watch an ad starring Nas for the Queens Resorts World Casino proposal below.
Universal Music Group (UMG) shares rose 4.9% on Thursday (Feb. 29), the day after its fourth-quarter earnings revealed record revenue of 11.1 billion euros ($12 billion) in 2023 and strong subscription-related growth in the fourth quarter. The music giantâs stock finished the week up 2.3% to 27.87 euros ($30.25), bringing its year-to-date gain to 6.8%.
Investors also received details about the financial impacts of UMGâs company-wide layoffs. A reduction in global headcount is expected to save 75 million euros ($81.3 million) in 2024, 125 million euros ($135.5 million) in 2025 and 250 million euros ($271 million) annually by 2026. UMG has not specified the number of employees being laid off, but Billboard had identified nearly 50 across the company by Friday afternoon (Mar. 1). A second phase of layoffs and âother operational efficienciesâ is scheduled to begin in 2025 and run through 2026, according to UMGâs latest investor presentation.Â
In reducing its headcount and eliminating some positions, UMG is âredesigning our organization to enhance our capabilities in the areas most critical to our future growth and success,â CFO Boyd Muir said during the earnings call Wednesday (Feb. 28). âThese changes will strengthen our leadership team, foster innovation and create significant efficiencies across our business.â
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Also enjoying gains this week were some of the other largest companies in the 20-member Billboard Global Music Index. Spotify rose 3.0% to $263.75, Warner Music Group improved 3.2% to $35.48 and Live Nation increased 1.9% to $97.15. The index itself rose 1.9% to a record 1,715.81, with 11 stocks in positive territory.
Stocks had another strong week in the United States overall. On Friday, the Nasdaq composite surpassed its previous high from 2021 and finished the week up 1.7% to 16,274.94. Chipmaker Nvidia rose another 4.4% to $822.79 this week after gaining 8.5% the previous week. Meta shares were up 3.8% to $502.30 following its announcement on Thursday that it will âdeprecateâ (i.e. remove) its Facebook News tab in the United States and Australia. The S&P 500 gained 0.9% to 5,137.08 â its first close over 5,100.Â
In the United Kingdom, the FTSE 100 fell 0.3% to 7,682.50. South Koreaâs KOSPI Composite index fell 0.9% to 2,642.36, mirroring the declines of K-pop companies HYBE (down 7.6%), SM Entertainment (down 2.5%), JYP Entertainment (down 3.4%) and YG Entertainment (down 3.9%). Chinaâs Shangai Composite Index gained 0.7% to 3,027.02.
Sphere Entertainment Co. was musicâs greatest gainer of the week after its share price rose 8.4% to $44.29. The price jumped 6.2% on Thursday after an SEC filing revealed chairman/CEO James Dolan acquired an additional 59,000 shares, ranging from $40.48 to $41.46 per share. Less impactful to the share price was TMZâs news that the Eagles are in talks for a fall residency at the $2.3 billion Sphere in Las Vegas. After U2âs residency ends this weekend, Sphere will host Phish for four dates in April and Dead & Company for 24 dates spanning from May 16 to July 13. Sphere shares have gained 30.3% year to date.
French music streamer Deezer was the next-best performer of the week after gaining 5.1% to 2.25 euros ($2.44). The company reported fourth-quarter earnings on Thursday that showed improvements in subscriber court and average revenue per user. Revenue of 130.7 million euros ($141 million) was up 12.1% from the prior-year period. The same day, Deezer also announced the departure of CEO Jeronimo Folgueira. âDeezer is back on a growth trajectory and can now build from a solid foundation,â said chairwoman Iris Knobloch.Â
Believe shares rose 4.2% to 15.50 euros ($16.82) after the French music company announced that it received interest from a third party; a consortium consisting of founder Denis Ladegaillerie and two major shareholders launched a bid in February to take the company private at 15.00 euros per share. On Friday, Believe revealed it received âa confidential exploratory non-binding approachâ from another party that valued the company at âat leastâ 17.00 euros ($18.45) per share. Believe was careful to note the third partyâs approach did not constitute an obligation to make an offer. Still, the appearance of another possible bidder was enough to push Believeâs share price above the consortiumâs earlier 15.00 euros-per-share bid.
Shares of Chinese music streamer Cloud Music dropped 0.5% to 90.45 HKD ($11.55). The company announced Thursday that music subscribers grew 8.7% to 205.9 million in the fourth quarter, with subscription growth helping revenue from online music services increase 17.6% to 4.4 billion RMB ($611 million) â although total revenue fell 12.5% to 7.78 billion RMB ($1.09 billion). Gross profit improved 63% to 2.1 billion RMB ($292 million) and net profit improved to 818.5 million RMB ($114 million) from a net loss of 114.6 million RMB ($16 million) in 2022.
iHeartMedia shares fell 2.6% to $2.26 after a seesaw week for the countryâs leading radio broadcaster. The stock rose 22.0% to $2.77 on Thursday after the companyâs fourth-quarter earnings report suggested the fog might be lifting from an advertising slowdown that has hurt broadcast radio revenues. After fourth-quarter revenue fell about 5%, iHeartMediaâs first-quarter revenue is expected to be down 2% to flat. Podcasts were a bright spot, growing 16.6% in the fourth quarter and 13.8% for the full year. Nearly all of Thursdayâs gain was erased on Friday, however, when iHeartMedia shares fell 18.4%. Â
Cumulus Media suffered the largest loss amongst music stocks after falling 20.4% to $3.74. On Tuesday (Feb. 27), the radio broadcaster said its 2023 revenues fell 11.4% to $844.5 million and announced a debt exchange offer that would allow lenders to swap 6.750% notes due 2026 for 8.750% notes due 2029. The company is also offering to exchange term loans under a 2019 credit facility for new term loans.
The breakdown in licensing talks between Universal Music Group (UMG) and TikTok affects far more than Universal recording artists and songwriters. Â
Every now and then, a music company pulls its recorded music catalog, publishing catalog or both from a digital service provider after licensing talks break down â Warner Music Group did this with YouTube in 2008, for example. It happened again starting Feb. 1 when UMG started pulling its recordings from TikTok after the two companies couldnât come to an agreement on a new licensing deal. Â
The licensing breakdown first affected artists signed to UMG record labels. Take the Q4 Hot 100, a list of the top 100 tracks in the fourth quarter. UMGâs various record labels â including Republic Records and Interscope Records â released 41 of the 100 tracks, among them Taylor Swiftâs âCruel Summer,â Doja Catâs âPaint the Town Redâ and Brenda Leeâs âRockinâ Around the Christmas Tree.â Â
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On Tuesday (Feb. 27), TikTok began removing compositions part-owned by Universal Music Publishing Group (UMPG). On the publishing side, UMG has an interest in 40 of the Q4 2023 Hot 100 tracks, such as SZAâs âSnoozeâ (a track released by Sonyâs RCA Records), Jack Harlowâs âLovin on Meâ (a track released by Warner Music Groupâs Atlantic Records) and Usherâs âGood Goodâ (a track released by gamma, an indie newcomer). Â
Since every recording involves two copyrights â one for the master recording, one for the composition â the damage of UMGâs decision to pull its repertoire from TikTok is larger yet. Counting both recorded music and music publishing, UMG has an ownership interest in 61 of the Q4 2023 Hot 100 tracks. Twenty of those 61 tracks have a UMG publishing interest but were not released by a UMG-owned record label. Another 20 of those tracks have a UMG publishing interest and were released by a UMG record label. UMG does not have a publishing interest in the remaining 21 of those tracks that were released by a UMG record label. Â
Thatâs far larger than UMGâs market share in either recorded music or publishing. UMG had a 39.4% share of U.S. recorded music by distribution in 2023 (a 29.4% share by ownership) and a 15.8% publisherâs market share of the Hot 100 in the fourth quarter of 2023.
Ownership interest, not market share, gets to the true impact of the UMG-TikTok impasse. Todayâs popular songs have multiple co-writers, each of whom might have a different music publisher. When a track includes a sample or interpolation of another composition, those worksâ songwriters get credits on the new work, too. The 41 tracks on the Hot 100 in which UMG has a publishing interest have an average of 5.5 songwriters. Eight of those 41 tracks had 8 or more co-writers; four of them had 10 or more co-writers. Of the 41 tracks with UMG ownership interest, only Irving Berlinâs 83-year-old âWhite Christmasâ was written by one person.Â
The more songwriters who are on a single track, the higher the odds that any one music publisher can remove a track during a licensing dispute. An example of this complexity is âWhat It Is (Block Boy)â by Doechii featuring Kodak Black, released by UMG-owned Capitol Records (the track entered the Hot 100 in May thanks to success on TikTok). The recording includes a sample of TLCâs 1999 hit âNo Scrubsâ and interpolates a hook from âSome Cutâ by Lil Scrappy and Trillville, which reached No. 15 on the Hot 100 in 2005. âWhat It Is (Block Boy)â has 16 co-writers, including the 4 co-writers of âNo Scrubsâ and 6 co-writers of âSome Cut.â Â
A wide swatch of the music publishing business is represented in âWhat It Is (Block Boy).â The Music Licensing Collectiveâs public database lists 7 different publishers attached to the composition: UMPG, Sony/ATV, Warner Chappell Music, Disney, BMG, Concord and Reservoir Media. UMPGâs 3% collection share is the smallest of the seven publishers. Â
To be sure, the Hot 100 from the fourth quarter of 2023 isnât a perfect reflection of what is currently most popular â or would be popular if not for the licensing impasse â at TikTok. The TikTok Billboard 50 shows the platformâs most popular music is a mix of Hot 100 staples (âLovin On Meâ) and indie music that otherwise wouldnât be seen on a Billboard chart (Aphex Twinâs âQKThrâ). Â
This headline-grabbing development isnât a story of one music company against one tech company; labels and publishers that renewed their licensing deals with TikTok have unwillingly joined UMGâs battle with the platform. UMGâs inability to reach a deal with TikTok impacts every major label group and likely touches every music publisher of note.
Itâs time for another spindle around the Executive Turntable, Billboardâs comprehensive(ish) compendium of promotions, hirings, exits and firings â and all things in between â across music. Earlier this week, UMG announced a âstrategic organizational redesignâ that has so far resulted in several top executives â and many others â losing their jobs across the label group, though the scope of the headcount reduction is still unclear. Billboardâs Dan Rys is following closely here.
The Digital Media Association (DiMA) hired seasoned legal exec Colin Rushing to the newly crafted position of executive vp and general counsel at the music streaming trade group. Rushing previously spent nearly 14 years at SoundExchange, where he rose from senior counsel to chief legal officer during a consequential tenure â Â his job was to lead rate-setting efforts before the Copyright Royalty Board â that made him a fixture on Billboardâs annual list of top music lawyers. Since leaving SX in September 2021, he has taught at Belmont University and acted as director of the Copyright Society of the South.
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â[Rushing] brings all his invaluable expertise of US copyright law and a reputation for achieving consensus solutions,â said DiMA President and CEO Graham Davies. âColinâs knowledge of the US licensing system combined with his passion for championing streaming will be hugely valuable. His appointment underlines our work on a global basis, where we seek maintain and develop environments that ensure our members can continue to innovate and contribute to the music growth success story.â
MeanwhileâŠ
Kelly Rich exited her role as COO at Nashville-based Red Street Records. Rich initially joined Red Street as a consultant in 2022 and was named COO later that year. Rich previously served as country lead at Amazon Music. Richâs career also includes time as Big Machine Label Groupâs senior vp of sales, marketing and interactive, as well as time stints at UMG Nashville, DreamWorks, Arista Nashville, BMG and more. Elsewhere at Red Street, Sally Allgeier has been promoted to national director of country promotion, while Jess Loper has joined as vp of A&R and publishing for Red Street Christian. Loper previously served as vp of brand management for Toby Macâs Gotee Records and Publishing. Amanda Roach also joins Red Street Records as manager of country A&R and Publishing. Roach was previously catalog manager and A&R coordinator at Warner Chappell Music. âJessica Nicholson
Chris Muratore
Luminate, which feeds data to the Billboard charts, is turning to music analytics executive Chris Muratore to cement relations with the indie music retail sector ahead of the launch of its new data platform later this year. Muratore joined Luminate earlier this month as director of partnerships, with a clear focus on working with various stakeholders to ensure physical sales data collection is accurate. The 30-year industry veteran most recently co-founded Border City Media, the tech startup behind music consumption data tool BuzzAngle Music. Prior to Border City Media, Muratore spent 18 years in various executive roles at SoundScan/Nielsen Music, where he oversaw all data relationships and analytics for the company and, notably, was a trusted analytical source for countless media outlets including this one. Muratore is reachable at cmuratore@luminatedata.com. FYI: Luminate is an independently operated company owned by PME TopCo, a joint venture between Penski Media Corporation and Eldridge. Billboard is an independently operated company owned by PME Holdings, a subsidiary of PME TopCo.
Damaris Rex-Taylor has been promoted from general manager to managing director at RCA Records UK. Rex-Taylor joined the Sony Music UK label in 2019 as director of marketing before rising to GM two years later, and during her tenure has spearheaded various marketing and promotional strategies and led campaigns for Tyla, Travis Scott, Miley Cyrus and other roster artists. The recent Oxford grad has past stops at Chrysalis and Parlophone, and proudly moonlights as co-chair and a founding member of Sony Music UKâs Social Justice Fund supporting anti-racist initiatives. âWeâre delighted for Damaris to step into her new role,â said Stacey Tang and Glyn Aikins, co-presidents of RCA UK. âSheâs an innovative leader, holds a wealth of knowledge and has a tremendous understanding of creative strategy, instinctively knowing how best to support all our artists. Since joining RCA sheâs shaped the incredible team we have, and weâre excited to see her take the label into a new era.â
Warner Music Nashville promoted Kristen Williams to senior vp of radio and commercial partnerships. Williams has helmed the radio division since 2010 but now will add the commercial partnerships team â which works on retail, catalog and direct-to-consumer efforts â to her dailies. WMN co-president Ben Kline said âthis set-up positions us to work in a more sophisticated way while continuing to super serve our artist community and partners in this ever-changing, dynamic business environment.â
Jared Fox was promoted to senior vp across two divisions at SiriusXM: artist and industry relations, where he oversees talent bookings, and content marketing and partnerships, where he and his team manage and maintain relationships with existing talent partners. All told, Fox oversees a staff of over 40 at the satellite radio company. Recent wins on the artist relations front include Green Day rocking Irving Plaza and Malumaâs recent concert in Vegas ahead of the Super Bowl. As for partnerships, team Fox has a talent list that boasts Carrie Underwood, LL Cool J, Kelly Clarkson and more. Fox joined SiriusXM in 2013, following stints at Vevo, Atom Factory and Epic, and was most recently vp of artist and industry relations. He reports to Scott Greenstein, president and chief content officer.
Meanwhile, SiriusXM president Scott Greenstein announced two big additions to its podcast leadership team this week. Sarah van Mosel, a former executive at Sirius subsidiary Stitcher, returns in the newly-created position of senior vp of podcast strategy. In this role, van Mosel will focus on podcast acquisitions and new talent development. Working closely with Sarah will be Adam Sachs, whoâll zero in on podcast programming and production as SiriusXMâs senior vp or podcast content. Colin Anderson stays on and will continue to report to Sachs, âmaking an all-star podcast production team,â said Greenstein, also SiriusXMâs chief content officer. âWith this new team structure, we are now set up to take full advantage of the podcast opportunity ahead of us. Iâm excited for what this team is capable of.â
Mom+Pop Music elevated Jackie Vanzura to director of digital, reporting to svp and head of digital Lindsay Schapiro. Vanzura joined the NYC-based indie label two years ago as a digital marketing manager leading strategy for roster artists, including SEB, Magdalena Bay and Odie Leigh. On tap for Vanzura is spearheading digital strategy for MGMTâs new album, Loss Of Life. Prior to Mom+Pop, Vanzura worked at WMA. âJackie is a talented member of the Mom+Pop team,â said Schapiro. âHer creativity combined with her passion for music and her digital know-how contributes to our success. We are thrilled to see her growing into this new role.â
NASHVILLE NOTES: Hill Entertainment Group welcomed Machaela Nesler-Scibilia as analytics & digital coordinator and Gipson Clark as touring & operations coordinator, with both reporting to president and CEO Greg Hill ⊠Trevor Provost is the new marketing manager at Severance Records, the recently launched rock label co-founded by Mike Easterlin and Steve âStevoâ Robertson as part of a joint venture with Big Loud Rock. Provost was previously in the management department at SMACKSongs ⊠Three Riser House promotion executives were elevated to new positions. Jeff Davis rose to vp of promotion from East Coast regional promotion director, Roger Fregoso was upped to national director of promotion from senior director of West Coast, and Nathan Cruise climbed to senior regional director of promotion from Central regional promotion director.
Palm Tree Crew Management co-founders Myles Shear and Kygo welcomed Parker Aimers as the artist management divisionâs chief operating officer and head of artist management. Based in Miamiâs Sunset Harbor, Aimers will focus on A&R, touring and digital opportunities across Palm Treeâs roster, including Griffin, Sam Feldt, Forester, Petey Martin and others. He joins Palm Tree from Torontoâs Northside Artists, where he worked extensively with Loud Luxury, Bebe Rexha and Kane Brown. Kygoâs Palm Tree umbrella includes this management arm, which works closely with Live Nation, and Palm Tree Records, a global joint venture with Sony Music Entertainment.
Round Room Live, which produces family shows like Blippi and the national tour of Shrek the Musical, hired Dina E. Meyers as svp of business development. In her new position, Meyers will be responsible for finding and securing fresh content and other revenue-making projects for the company. She joins Round Room Live after serving as head of new markets & business development for Lighthouse Immersive, the company behind the wildly popular âImmersive Van Goghâ exhibition. Prior to Lighthouse, she held roles at AEG Live and S2BN Entertainment, and sheâll continue to lead her own company, DEM Entertainment Consulting. âWith her accomplishments ranging across innovative event production, key partnerships, sponsorship activations, and broad industry relationships, weâre excited to welcome Dina to the Round Room family,â said Round Room Live founder and co-president Stephen Shaw.
IDOL handed Mandy Freebairn the role of U.S. label and project manager as the European indie distributor works to rapidly develop its North American division. Based in New York, Freebairn will report to IDOLâs stateside general manager, Thomas Sharp Maxwell. Freebairnâs appointment coincides with the announcement of two North American label deals for the company, with Le Plan Recordings and Old Soul Music. She joins IDOL from Omnian Music Group, where she project managed releases from The Lemon Twigs, Widowspeak, Juan Wauters and others.
BBR Music Group/BMG Nashville announced a round of promotions and hirings. Dawn Ferris, who joined the company in 2010, was promoted to director of national promotion for Broken Bow Records. Ferris previously spent 12 years at Arista Records. Ellen (Mundy) Ford has been named manager of marketing, while Krista Hayes joins as manager of group strategy & syndication. Ford previously worked as a day-to-day manager for WORKS Entertainment and as the SE manager of radio promotion for Revival Music Group. Hayes comes to BBR from Cumulus Media, where she served three years as promotion and marketing director. âJN
James Fava joined global management company Three Six Zero as a partner. Fava will continue as director of his Australia-based management firm Intergalactic Fantastic Worldwide, where his artists include Dom Dolla, Anna Lunoe, Torren Foot and Airwolf. The partnership with Fava gives Three Six Zero an Aussie foothold to compliment its established offices in Los Angeles, Miami and London. âJames is a huge talent,â said Mark Gillespie, CEO and founder of Three Six Zero. âI am confident that his expertise will be a great asset for Three Six Zero as we continue to expand our business globally.â
London-based rights acquisition company Bella Figura Music hired Billy Millar as senior vp of creative and Chris Presland for the role of catalog project manager. Millar, formerly of BMG and Hipgnosis, will oversee global sync and creative opportunities for the companyâs catalog, which includes David Grayâs label and albums. Presland, who arrives following an eight-year run at AWAL, will focus on delivering digital and vinyl reissue support for Grayâs recorded works. Since its launch a year ago, Bella Figura has made a number of high profile acquisitions from artists, writers and producers such as R3HAB, Jeff Silverman, Darrel Brown and Guy Chambers.
RADIO, RADIO: Bauer Media Audio UK appointed Robert DâOvidio as its new director of music broadcast, on-demand and premium, effective immediately. Heâll work to build cross-brand partnerships and initiatives across Bauer brands and reports to chief content and music officer Ben Cooper ⊠SBS chief financial officer JosĂ© Molina has exited the Hispanic broadcaster. He first joined SBS in 2001 as director finance, eventually rising to svp of finance before leaving in 2015. After stomps at MundoMax and Univision, he returned to SBS as CFO in 2019.
Creator media company QYOU promoted Lexi St. John to evp of QYOU USA, Morgan Barclay to svp of strategy and Chris Smith to vp of QYOU Studios. QYOU Media USA promoted Kerri Ramgren to senior director of operations, Tim Isenberger to senior director of account management and planning, and Eric Frick to senior manager of business intelligence.
ICYMI:
Jeronimo Folgueira is out as CEO of music streaming service Deezer ⊠Jay Beelin was promoted to vp of international touring at AEG ⊠BMG elevated Marian Wolf to head up its massive North American publishing unit ⊠and Paul Hourican announced he was leaving TikTok, where he served at global head of music operations.
Last Weekâs Turntable: A Long Goodbye at A2IM
Some of the most important workplace skills can only be learned on the job â from building relationships with colleagues to positioning yourself for a promotion to dealing with long hours to being able to tell if a work situation is truly strange or totally normal.
But for women â many of whom find it easier to confide in other women at work â finding a colleague to figure these things out with can be harder in a male-skewing industry like the music business.
A 2023 study conducted by Luminate, Tunecore and Believe found a host of female-specific challenges in the music industry, including increased instances of sexual harassment, ageism and unequal representation along with a persistent wage gap. These challenges are particularly acute in the indie realm, where, despite some improvements, senior leadership continues to be largely male.Â
âIndependents tend to be niche spaces and our company sizes are smaller,â says Katie Alberts, COO of the Atlanta-based Reach Records. âIf you have a historic trend of men being in leadership and your company only has 10 people, you might not have that female executive within your company as an example for other women.âÂ
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To take on the issue, Merlin, the digital music licensing partner for independent labels, launched a new mentorship program for women, Merlin Engage, early last year. The program paired 18 executive-level mentors with mentees from around the indie label space for a six-month program designed to offer community, leadership skills and advice on how to thrive and rise within the industry and the indie space in particular. The program was initiated by Marie Clausen, managing director of Ninja Tune North America and a Merlin Engage mentor. The 2024 Merlin Engage program starts March 20.Â
When she applied for the debut program, Magali Ould of Secret City Records was in discussions with upper management about a possible promotion. âWeâre 14 employees,â she says. âItâs not a huge company, so every promotion is crucial.âÂ
Magali Ould and Katie Alberts
Nadia Zheng; Courtesy Photo
Secret City president/CEO Justin West, whoâs also a Merlin board member, suggested that Ould apply to the Engage program to connect with other women in leadership roles. Ould was accepted and paired with Jenna LoMonaco, the head of U.S. marketing at digital distribution service ONErpm. Over the next six months, the pair regularly spoke on the phone, discussing things like how to build and demonstrate leadership skills, how to prioritize, personality management within the company, public speaking, and presenting skills and relationship building.Â
Having a mentor, Ould says, gave her a âbetter understanding and perspective on what it takes to be upper management.â It also helped her score the promotion she was aiming for: Secret City GM. Â
Ould says working with LoMonaco also helped her see that many of the situations she was dealing with at work, and which seemed potentially unique to her work life, were actually common. Ould says this understanding enhanced her confidence, particularly in moments when she would have previously second guessed herself. She says this knowledge and confidence have helped her stand her ground as a woman in a leadership position. Â
âJenna said, âDonât mistake my kindness for weakness,â which was very helpful for me,â Ould recalls. âI think women can be perceived as being nice, but then we donât take our space so people might think they can just get their way. This experience showed me how to be caring and also how to still get sâ done.âÂ
Alberts of Reach Records served as a mentor in the program and says the experience was extra special because her mentee was pregnant. As such, the pair not only talked about professional goals, but also created a plan for her transition back into work after maternity leave and adjusting to life as a working mom. While the official program is over, Alberts and her mentee are still in touch on work and life matters. Â
âTo see that we did the prep work for a smooth transition back to work, then seeing her reintegrate into working life as a new mom, is super cool,â says Alberts. Â
In addition to ongoing one-on-one meetings (for which mentors and mentees set their own schedule), the debut Engage program included three program-wide meetings over Zoom, with participants from across the United States. along with cities including London, Brussels and Cape Town, South Africa. The second Engage program will include 15 mentor-mentee pairings, with participants from 10 countries and 28 different Merlin-affiliated companies. Â
Alberts, whoâs returning as a mentor, says there wonât be any major changes to the program except for potentially more of the program-wide Zoom meetups given how much information was mined from hearing about other mentor/mentee experiences. These wider meetings also allowed for participants to collaborate across companies and territories, with the diversity of Merlin affiliated labels allowing for noncompetitive knowledge sharing. Â
âWeâre able to learn and grow from each other through this exchange of information,â says Alberts. âLike, âHey, we made this mistake on this platform, or hereâs how we optimized in this in a really interesting way.ââÂ
âThat allows us to pool resources,â she continues, âAnd I think thereâs a lot of alignment with Merlinâs vision in that too, because itâs about the collective weight of independents together.âÂ
Indian Star Diljit Dosanjh Is Making History in Canada
Diljit Dosanjh is making more history with his latest tour announcement.
The artist has revealed where heâll be taking his Dil-Luminati tour this summer, adding 12 new dates following his previously announced stadium show in Vancouver. The tour promises to be monumental: Beginning in Vancouver and ending in Toronto, it marks the first time a Punjabi artist has headlined Vancouverâs BC Place and Torontoâs Rogers Centre. The BC Place performance is set to be the largest-ever Punjabi music concert outside of India, at a sold-out capacity of 54,000.
That record-breaking Vancouver show kicks off the tour on Apr. 27, and from there Dosanjh plays three more Canadian cities â Winnipeg, Edmonton and Calgary â before heading south of the border to the United States for eight shows. Dosanjh then finishes the tour back in Canada at Rogers Centre on Jul. 13.
The tour looks to be another milestone in the influential artist and actorâs career and marks another boost for the rise of Punjabi music in Canada. In 2023, Dosanjh became the first Indian-born artist to play Coachella, opening up the doors for artists like Punjabi-Canadian musician AP Dhillon, who will perform at the festival this summer.Â
Dosanjh previously became the first Indian musician to sell out Vancouverâs Rogers Arena and Torontoâs Scotiabank Arena, and this time around heâs levelling up to stadiums in those same cities.
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Pre-sale for the Dil-Luminati tour begins Feb. 29. Tickets for the Vancouver date are already on sale. â Rosie Long Decter
Major Canadian Broadcasters Call for Government Support of Local Radio
A lot is at stake for Canadian broadcasters and musicians in the upcoming federal budget.
Canadian media company Stingray, which manages over 100 radio stations, has joined forces with independent radio broadcasters to call for strong support from the federal government for the local radio sector. Stingray and the group of broadcasters have made their message clear in a letter to Finance Minister Chrystia Freeland and Minister of Canadian Heritage Pascale St-Onge, calling for measures that will assist local radio amidst declining advertising revenues.
Canadaâs radio industry, which contributes $373 million to Canadian content, has suffered from advertisersâ pivot toward tech giants like Meta, while consumers are increasingly using streaming services like Spotify and Apple Music. According to the Canadian Association of Broadcasters, in 2023, more than 200 Canadian radio stations were at risk of closing, with 40% of stations operating at a loss.Â
Bell Media recently announced it was selling 45 of its 103 radio stations amidst company-wide cuts and nearly 4,800 layoffs. (Billboard Canada recently spoke with three radio experts on how the industry is navigating turbulent times).
Stingrayâs letter suggests that at least 70% of the Government of Canadaâs advertising expenditures should be dedicated to local media, across print, digital, radio and TV. It also calls for a tax credit of at least 20% for advertising with Canadian media outlets.
âThe local radio sector is an integral part of our national identity,â said Stingray CEO Eric Boyko. âStingray and our respected independent industry partners are calling on the government to implement these measures, which are critical to the sectorâs viability.âÂ
The independent industry partners supporting the letter include companies like Atlantic radio network Acadia Broadcasting, which owns 16 stations; London, Ontarioâs Blackburn Media, which owns 13 stations; and Western Canada company Pattison Media, which owns 48 stations. â Rosie Long Decter
Canadian Hip-Hop DJ/Promoter Sean Lalla Remembered By Questlove, A-Trak and others
Sean Lalla, a Canadian hip-hop DJ and promoter, has died at age 49. His body was found at an Airbnb in Trinidad and Tobago on Feb. 20.
Of Trinidadian origin, Lalla was raised in Toronto, then moved to Vancouver in 1996 to study at Cap College. He later told Vancouver alt-weekly Georgia Straight, âI hated the slow pace of Vancouver and the lack of things to do and places to go if you were a hip-hop head. Rather than complaining about it, I tried to do something about it.â
Lalla founded Spectrum Entertainment and began booking shows. In 2005, Georgia Straight wrote that he was âone of the cityâs top concert promoters, and his annual showcase, 604 Hip-Hop Expo, is one of Canadaâs most dynamic festivals.â
For his 2005 festival, Lalla booked American star Questlove, of The Roots fame. Upon learning of Lallaâs death, Questlove paid tribute on Instagram: âSo devastated to hear the news of Sean Lallaâs passing. Throwing the dopest parties. Back when touring was my DNA you always knew youâd do his parties like 4-6 times a year.â
Under his DJ moniker, Elsewhere Sonido, Lalla travelled to Mexico City, Brazil and Japan to DJ large and sometimes intimate parties. On his Instagram page, Lalla described himself as âa sample searching siempre, a rare groove rescuer, and occasional DJ cosplayer.â
On Instagram, renowned BBC radio DJ Gilles Peterson, who hosted Lalla earlier this month, called him a âtotal legendâ and a âhumble music fan. We were last together just the other week ⊠digging (for records) early in the morning on a Saturday before my radio show.â
Montreal turntablist/producer A-Trak (also one-half of Chromeo) remembers Lalla booking him for his first show outside of Quebec when he was 15 years old.Â
âSean paid attention to the small things, the local talents, and he elevated them,â he tells Billboard Canada. âWe reconnected many times over the last 5-10 years. I was happy that he was working with Maseo from De La Soul; they were a great pair. I was proud when I saw the respect he was getting from world-renowned crate diggers. His love for music ran as deep as his friendships.â â Kerry Doole
In December 2021, when Michelle Jubelirer became Capitol Music Group chair/CEO â and Capitolâs first female chief executive in its 80-plus-year history â she didnât take much time to dwell on her historic accomplishment: She had a flailing company to save.
âThe challenges [I inherited] were plentiful,â Jubelirer admits. CMG faced a falling market share, staff turnover, pandemic challenges and an unwieldy artist roster. âThe truth is,â she says, âa lot of change happened in a short period of time.â
Many believed Jubelirer, then CMGâs COO, was destined for Capitolâs top job the year prior. By that time, her rĂ©sumĂ© already included a stint at a white-shoe law firm, years in legal affairs at Sony and nearly a decade as an artist lawyer for acts like Nas, Pharrell Williams and Frank Ocean â plus almost a decade in Capitolâs top ranks. When her longtime mentor, Steve Barnett, stepped down as CMG chair/CEO at the end of 2020, Jubelirer seemed to some to be a natural choice to replace him. But Universal Music Group (UMG) chairman/CEO Lucian Grainge handed the role to Capitol Records president Jeff Vaughn instead. (In the shift, Jubelirer was elevated to CMG president/COO.) When Vaughn assumed his new role, the company was already on shaky ground; under his leadership, it continued to falter.
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After less than a year as CEO, Vaughn left the company, and Jubelirer was elevated to the post. With her guidance, the label groupâs fortunes quickly started to change. At a time when minting new superstars is harder than ever, the company won a bidding war (alongside 10K Projects) in fall 2022 for Ice Spice, who would become the defining breakout star of 2023. It also topped the Billboard Hot 100 with queer anthem âUnholyâ by Sam Smith and Kim Petras, worked with Universal Music Enterprises to bring back The Beatles with the artificial intelligence-powered single âNow and Then,â achieved TikTok virality with Doechiiâs âBlock Boy (What It Is)â (in a new partnership with Top Dawg Entertainment) and reinvigorated the art of the music video â which has declined in popularity in recent years â with Troye Sivanâs creative clips for âRush,â âOne of Your Girlsâ and âGot Me Started.â
Those successes didnât insulate CMG from impact amid UMGâs widespread restructuring in 2024, though. On Feb. 1 Ââ shortly after Jubelirerâs interview for this story â UMG revealed much of its plan: Its frontline label system would be split beneath one East Coast executive (Republicâs Monte Lipman) and one West Coast executive (Interscopeâs John Janick), Grainge explained in a letter to staff. The restructure would have moved Jubelirer, who was reporting directly to Grainge, under Janick. Six days later, Jubelirer wrote a heartfelt message to her staff announcing her exit, effective immediately.
âWhen I joined Capitol, I made a stringent promise to myself,â Jubelirer said in a Feb. 2 speech at an Entertainment Law Initiative event in Los Angeles. âThe day I stopped changing the record company more than it was changing me would be the day I would walk away.â
As she finalizes the details of her exit from UMG, Jubelirer declined to discuss her future plans â or Capitolâs. But whether she stays in the label business, goes into management or does something else entirely, her impact on Capitol and its artists is clear. âSheâs the fiercest when it comes to protecting artists,â says Jody Gerson, chair/CEO of Universal Music Publishing Group (UMPG) and Jubelirerâs longtime friend. âSheâs not afraid to fight for what she believes is right.â
âIâm so honored to have worked with such a great woman and boss like Michelle,â Ice Spice says. âShe always believed in me and supported my vision from the very beginning. Iâm so grateful for her and all that she has done.â
Jubelirer with her son, Stone.
Yuri Hasegawa
What are some of your biggest wins over the last two years?
First and foremost, I think the biggest win is the incredible team. And what weâve been able to do in two short years, I think itâs the fastest turnaround of a record label. And quite frankly, weâve been able to sign a diverse roster of artists and modernize the label while prioritizing artists and ensuring that each artist gets uniquely what they need.
How do you balance Capitolâs storied history and what you want it to represent today?
Given that it has been in existence for 80-plus years, it wasnât lost on me that I was the first woman chair/CEO. And thatâs not a great fact, letâs admit, for all women. But the reality is the grandeur of the company and its [previous] artistsâ paths are not the focus. The focus is the new, fresh artists that we are breaking day in and day out.
How has your background at Capitol helped you as chair/CEO?
Itâs kind of funny: I think Iâve been leading the company all along in my 11-plus years here. [When I became CEO], I knew all of our team, I knew all of the artists. That really helped. But first and foremost, the most educational piece for me was before I got to Capitol, when I was an attorney. In my heart of hearts â no matter what my title is or where I work â I am an artist advocate at my core. Thatâs who I am. Thatâs the thought I bring every single day to my job.
What was your first move as CEO to course-correct Capitol?
The three primary pillars I worked on were signing a diverse group of artists, ensuring that the company was reorganized in a way for artists to interact with labels in the way that fans interact with artists and ensuring that artists were prioritized in a way that was right for them specifically.
Capitol Records/10KÂ Projects signee Ice Spice was one of 2023âs biggest breakout stars. What sets her apart?
Thereâs no question about it: She is the breakout artist of 2023. I donât think anyone could argue otherwise. And getting into business with her [has been] incredibly exciting and motivating. Ice is a girlâs girl, and she surrounded herself with strong women and signed with strong women. Iâm just one of them. She signed with [UMPGâs] Jody Gerson on the publishing side. She has made the right choices in her career every step of the way, from her look to her flow to her collaborations. She knows exactly who she is, and sheâs unwavering about it.
What is the key to label success today? Youâve had new successes in the last year while many labels have struggled to break any artists.
Ultimately, everything is about the artist and the team of people. We have those both in spades. I mean, it was incredible to see the fact that we were the No. 1 TikTok label for 2023. Who would have thought that a year or two ago for Capitol Music Group?
Did you always dream of being a record-label CEO?
My dad died when I was 3 years old. I watched my mother struggle to figure out how to take care of our family. Music got me through all of the hard times. Unlike our artists, however, I had zero talent, and I knew it from a young age. (Laughs.) I wasnât getting into music based on any talent that I had.
My father was a lawyer, and I knew that financially I needed a way to take care of myself. So I went to law school, graduated with a lot of debt and became a mergers and acquisitions lawyer at a big white-shoe law firm in Manhattan. If you know anything about me, you know that I am not the conservative type; I often wear a âFâk youâ belt. I didnât really fit in at the white-shoe law firm, but I had a plan to go into the music industry.
As soon as I paid off my loans, I got a job as a lawyer at Sony Music. I was there for two years, and I did not love being a cog. I had been in New York City for 10 years at that time and was ready to try Los Angeles. I was also dating a guy in Los Angeles, and that was part of the reason that I moved â as I tell you that, I see the feminism seeping outside of my body, but thatâs true.
When I got to L.A., I called all the Âlawyers I had negotiated against who were artistsâ attorneys and met Peter Paterno. I got a job working for him [at the firm now known as King Holmes Paterno & Soriano] and told him that for one year I would service his clients, and then I would have all my own clients after that.
While that may seem like bravado, that came to fruition. I became a partner there after three years and practiced law there for nine years, representing artists. Then I met Steve Barnett, who was co-head of Columbia Records at the time. We negotiated against each other in a deal for Odd Future and Tyler, The Creator. He said, âYou pantsed me in that deal, you pantsed Columbia in that deal. If I ever go somewhere else, youâre going to be my first hire.â And it happened. I was his first hire [when he became CMG CEO].
Yuri Hasegawa
How did he convince you to move to the label side?
I always dreamed of running a record label from when I was 12 years old. I didnât know if it would ever happen because, quite frankly, I absolutely love representing artists and the artists that I had. When Steve approached me, believe me, I put him through the wringer. I asked him every hard-hitting question I could as I decided whether I could still be myself and be an artist advocate within the system.
Ultimately, I chose to make the transition for two reasons. No. 1: I felt like now, more than ever, artists and record labels need to partner with each other. And you need an artist advocate within the label in order for an artist to feel truly comfortable and at home. No. 2: I felt like I could make a bigger change at a record label than I could make being an artist attorney.
In your career, have you faced adversity or discrimination that your male counterparts havenât?
Since I entered the music industry as a lawyer, Iâve been afforded a shield that many women in the music industry donât have. Because of that I have been protected from a lot â because, quite frankly, people are afraid of lawyers.
But the reality is, when I started as a lawyer, I didnât have that shield. In one of my first annual reviews at [my first law firm], I was wearing a white shirt. Iâm someone who always wears black, and the partner giving me my review took his water bottle [and] sprayed it on me. You can imagine what he could see. Then he said, âAll right, weâre ready for your review now.â At the time, I folded my arms and just plodded on and let him give me his review. I did nothing about it. I beat myself up to this day that I did nothing about it because Iâm sure he then did that to multiple women after me. Now I will not be quiet when things like that happen around me.
This story will appear in the March 2, 2024, issue of Billboard.
AMC Theatres beat Wall Street expectations, reporting fourth-quarter revenue of $1.10 billion, up from $990.9 million in 2022 and a net loss of $182 million, compared to a net loss of $287.7 million in 2022.Â
For the full year, the theater chain reported total revenue of $4.8 billion, up from $3.9 billion in 2022. Net loss improved to $396.6 million, up $577 million from a year earlier.Â
AMC Theater CEO Adam Aron said that âliterally allâ of the increase in revenue in the fourth quarter was driven by Taylor Swift and BeyoncĂ©. Total attendance in the fourth-quarter grew to 51.9 million, up 4.7% from a year ago.
âWhat is particularly noteworthy is how much AMC benefited from our trailblazing industry leading efforts with our highly successful distribution of two concert movies Taylor Swift: The Eras Tour and Renaissance: A Film By BeyoncĂ©,â Aron wrote in the press release. âDespite a diminished box office overall, in the fourth quarter compared to the same quarter a year ago, AMCâs revenue grew by 11.5 percent and AMCâs adjusted EBITDA almost tripled. Literally, all of that increase in AMCâs Revenue and EBITDA is attributable to our having shown these two movies in our theatres in the U.S. and internationally.âÂ
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On the earnings call, AMC Theatres management said it is introducing a new version of its Nicole Kidman commercial.â
âBefore every movie starts, and starting March 1, weâre going to show three different, 30-second Nicole Kidman commercials before the movie starts on a rotating basis,â Aron said.
A spokesperson later clarified that the spots are not ânew ads or sequelsâ but ânever-before-seen-in-theatres versions of the original, iconic ad.â
Aron said the companyâs âphones have been ringing off the hookâ with requests from musical artists and that the theater chain will have more concert movies âlater in 2024 and/or 2025.â
Aside from these two films, fourth-quarter domestic industry-wide box office was down 35% versus 2019, as the industry continues to deal with lingering impact from the dual strikes. Still, Aaron said he believes the strike impacts will starts to ease up this spring.Â
âAMC believes that the box office will start to strengthen again as soon as this coming month of March, in some of the summer months and especially in the latter third of this year. And over the medium term, we are both bullish and optimistic. With all the caveats that no oneâs crystal ball is perfect, we currently expect that the industry box office in 2025 will grow by $1 to $2 billion, or more, in size over 2024,â he said.Â
Due to the impact from the strikes, which Aron reiterated he believes is âtemporary,â AMC has âtightenedâ its operating hours, cut costs, âright-sizedâ its theater portfolio, as in adding two new high performing theaters and closing nine underperforming locations, and âpushed the innovation envelope in merchandise and food & beverage sales,â Aaron wrote. Part of off-setting the strike impact was also establishing a new revenue stream through the distribution of concert movies.
The company also conducted several stock exchange agreements at the end of 2023 to pay down some of its debt. In the full year 2023, AMC reduced the principal balance of its debt by $448.1 million.
âGiven AMCâs proven ability to thread the needle in coping with one Herculean challenge after another, we are confident in our companyâs future,â Aron said.Â
Still, during the call, Aron addressed the pain he believes is felt by his retail shareholders noting that âit was not a good yearâ for them. He added that he is a shareholder in the company too and has also felt their pain, but will now be taking an added step.
Last week, Aron said he recommended to the AMC Board of Directors that for 12 months, starting now, his target compensation be reduced by 25% versus the previous yearâs target.
âI am a shareholder. I am holding. Iâm not selling. I ride with you,â Aron said. âSo when you do well financially with AMC, I will too. But if youâre hurting from that investment, I believe that I too, should be hurting with you as well.â
At the end of the call, Aron addressed the retail investors who have helped prop up the stock, noting that âit was not a good year,â for them, and to whom he said he had promised âstraight talkâ on whatâs happening at AMC.Â
He said he also wanted to address the âgarbage information floating around Twitter, YouTube and other corners of the internet about AMC,â including the âhubbub and litigationâ that surrounded AMC and the Delaware Courts in 2023 and further dilution of their shares by selling preferred equity units in Aug 2022 or APES. The cash from these sales was necessary to keep the cash afloat, he argued.Â
âWe did, in dilution, what was absolutely vital for your company to do to get through the many challenges that were thrown our way,â he said.Â
He also addressed a conspiracy theory about the management team at AMC.Â
âItâs disappointing how many people out there typing into their Twitter feeds that the management team at AMC is somehow actively working against the interests of our real retail shareholders, and standing nefariously on the side of evil,â Aron said, pointing to this quarterâs results.Â
âOne doesnât launch popcorn to the home, or blaze new trails with innovative concept movies that have been incredibly profitable and reputationally enhancing for AMC, if one is trying to undermine our companyâs success,â he added.
Still, even after that outreach, the stock continued falling 9 percent after the call Wednesday.
This article was originally published by The Hollywood Reporter.