Business News
Page: 60
Billboard Canada and SOCAN will recognize the unsung heroes behind the country’s biggest songs.
The Billboard Canada Non-Performing Songwriter Award will pay tribute to the talented songwriters who create powerful music and exemplify the songwriter’s indispensable role in the music ecosystem.
This is the first award of its kind in Canada, for professional songwriters who make a major impact writing for other artists. Rarely do they get the spotlight, until now. The inaugural Billboard Canada Non-Performing Songwriter Award will be presented at Billboard Canada’s Power Players event in Toronto on Sunday, June 2.
The award is presented by SOCAN, which collects and distributes royalties for musicians and rights-holders in Canada. The crucial rights organization is a champion of music industry professionals, with more than 190,000 members – songwriters, composers and music publishers – ensuring that they are properly recognized and compensated for their work.
“Fierce champions of songwriting, SOCAN is proud to present the Billboard Canada Non-Performing Songwriter Award, shining a light on the architects behind the anthems,” says Jennifer Brown, SOCAN CEO. “A first in Canada, this award celebrates the impact of professional songwriters, who, from behind the scenes, create songs that resonate internationally, and we’re thrilled to partner with Billboard to give them the recognition they so richly deserve.”
Trending on Billboard
On the nomination form, submit three songs that the nominee wrote for another performer in 2023. Songs must have been released between January 1, 2023 and December 31, 2023. The three songs should represent and show their creative success during that period. There are also optional fields for number of sales, streams and spins.
Nominations for the award open today, May 7, and will close on May 17 at 11:59 PM EST.
Find more information here.
deadmau5 Will Be Inducted Into Canadian Music Week Hall of Fame in 2024
After 25 years in the music industry, deadmau5 will enter the Canadian Music Week (CMW) Hall of Fame.
He’ll be inducted on Tuesday, June 4 at the Live Music Industry Awards, which takes place at Toronto’s Westin Harbour Castle in the Frontenac Room.
Before that, though, deadmau5 will take part in a Fireside Chat at the CMW Music Summit Conference that will be hosted by Billboard. He’ll speak with Billboard Canada editor Richard Trapunski in a conversation that will delve deep into his colourful two-and-a-half-decade career on some of music’s biggest stages.
“deadmau5 is a legend,” says Andrew Valle, General Manager and Festival Director of CMW. “His unparalleled creativity has not only reshaped the sonic dance landscape but has also inspired countless artists and producers worldwide.”
Born Joel Zimmerman, deadmau5 arose at a time when electronic dance music was becoming one of the most popular genres in North America. One of the defining superstars of the late 2000s and early 2010s EDM boon, he’s headlined the biggest stages and major festivals electronic music has to offer. Recognizable for his signature LED stage helmet, also known as his mau5head, he’s become known for his big-stage spectacle and earth-shattering productions.
He remains one of electronic music’s most bankable stars. As of 2023, his catalogue has clocked more than 1.5 billion streams. In 2022, he teamed with his longtime collaborator Kaskade to form Kx5, a superduo that played a handful of festival dates. Now hitting the road with a rotating slate of famous friends, he’s embarked on his “retro5pective: 25yrs of Deadmau5” tour, which has already seen guest appearances from artists like Lights, Kiesza and Tommy Lee.
Security Guard Shot Outside Drake’s Toronto Mansion, Police Confirm
Toronto Police are investigating a shooting that took place early in the morning on May 7 outside Drake’s mansion.
According to reports from CBC and The Toronto Star, the entrance to the rapper’s house had been taped off after a reported shooting. The Star also reported police going in and out of the house as they investigate.
Toronto Police Operations posted on X that they were investigating the shooting that took place at 2:09 am at Bayview Avenue & Lawrence Avenue East, near the site of Drake’s Park Lane Circle mansion in the Bridle Path neighbourhood — one of the most expensive areas of Toronto.
According to the tweet, a man was transported to hospital with serious injuries and a suspect fled in a vehicle. The Toronto Star reports that it is unclear whether Drake was at home at the time.
Drake has been embroiled in an ongoing rap battle with Kendrick Lamar. The art for Kendrick Lamar’s Not Like Us features a Google Maps image of Drake’s Toronto house. The location of Drake’s estate is already well known in the city and the rapper filmed his 2020 music video for Toosie Slide inside.
The victim was identified as a “security guard” working at the residence. They were transported to the hospital and have since undergone surgery for injuries sustained during the event.
No suspects have been named, but Inspector Paul Krawczyk of the Integrated Gun and Gang Task Force confirmed the shooting and says the suspect’s vehicle was captured on video by surrounding security cameras.
The following day, on May 8, there was another incident at Drake’s house when a person attempted to gain access to the property.
“The person was apprehended under the mental health act, and they were taken to receive medical attention,” Toronto Police said in a statement.
The person reportedly did not enter the house, but was immediately confronted at the gate by security and arrested by police.
Last Week In Canada: Diljit Dosanjh Makes Punjabi Music History
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. On Thursday we revealed this year’s Country Power Players list, where Big Loud partner and CEO Seth England was named top executive and WME’s Jay Williams earned the peer-voted Power Players’ Choice Award.
BMG‘s new head of global corporate communications is Kristal McKanders Dube, who joins the music company following a six-year tenure leading media strategy for Warner Chappell Music. McKanders Dube will stay in Los Angeles but report to BMG’s Berlin-based chief executive Thomas Coesfeld; her main role will be to spearhead both internal and external communications effort while also connecting the dots between BMG and its parent company Bertelsmann. Prior to joining Warner, where she held the position of svp of communications and marketing, McKanders Dube worked in the consumer brand and luxury hospitality space with IHG Hotels & Resorts, and agencies MSL Group and Jackson Spalding. She succeeds Steve Redmond as BMG’s communicator-in-chief.
Trending on Billboard
“It’s an exciting time at BMG with the company uniquely positioned for growth in a rapidly evolving music landscape, and we’re happy to have Kristal join us at such a pivotal moment and bring a fresh perspective to our business,” said Coesfeld. “Kristal’s innate storytelling ability, coupled with her expertise in corporate and music publishing communications, makes her an invaluable addition to our team.”
Meanwhile…
Arista Records upped their co-heads of urban music, Kendell “Sav” Freeman and Khris Riddick-Tynes, to senior vp of A&R. The NYC-based Freeman and LA-er Riddick-Tynes will continue reporting to Arista president David Massey. Since first being named co-heads of urban music in 2021, the pair have added heat to Arista’s roster in the form of rising artists Lola Brooke, Hurry Hazan and Skylar Blatt, while Riddick-Tynes has been instrumental in developing Paul “Lil Boo Thang” Russell. “We are excited for Sav and Khris to begin this next chapter in further elevating our artists around the world,” said Massey. “They have played an integral part in helping build and develop an impressive roster here at Arista … and we look forward to their continued leadership.”
Rebecca Sapp/Getty Images for Recording Academy
NASHVILLE NOTES: Academy Award nominated singer-songwriter Allison Moorer (pictured in 2019) and Rolling Stone magazine veteran Jon Freeman joined the Country Music Hall of Fame and Museum staff as writer-editors, responsible for wordsmithing across exhibitions, publications, social media and more. The Hall also promoted Brad Henton to senior director of culinary, event and museum sales; Paige Maillet to director of guest experiences; and Kayleigh Shoemaker to director of public programs … Julien’s Auctions hired Cristy Barber as vp of pop culture and business development for its new Nashville office. She was most recently with legacy firm Iconoclast as vp of global marketing and brand partnerships.
Cliff Chenfeld joined Jonny Shipes’ GoodTalk as partner and advisor at the full-service entertainment company. Chenfeld co-founded Razor & Tie, and for years served as co-CEO of the indie label and publisher. If you’re a parent, you can also (hiss/cheer) at him for developing — along with his R&T co-founder Craig Balsam — the ridonculously popular Kidz Bop compilation series, which the pair sold along with Razor & Tie to Concord in 2018. “I’ve known Jonny for 15 years and have been amazed at his ability to identify special artists, to stay on the tip of cultural developments and to expand his vision of himself and his business,” said Chenfeld. “In addition, he is a hell of a lot of fun and a good friend. I have been very selective with how I spend my time since selling Razor + Tie and Kidz Bop and working with Jonny was an opportunity I couldn’t pass up.”
Sarah Mitchell is now head of BMG‘s rights and royalties operations across both music publishing and recordings in the UK and across Europe. Mitchell joined BMG in 2022 as svp of neighboring rights and in her tenure has already inked deals with Coldplay, Pete Townshend and Christine & The Queens, among others. In her new capacity as svp of rights and royalties, the London-based exec will handle rights and royalty management for most non-U.S. dealings, and she’ll work with clients on copyright administration, analytics and accounting across recordings and publishing. She reports to Sebastian Hentzschel and sits on the BMG UK board. Prior to joining BMG, Mitchell was director of membership & communications at UK neighboring rights society PPL. “Over the past two years Sarah Mitchell has proven to be a significant addition to BMG’s London-based leadership with an incredible network in the artist and business communities and an impressive ability to think differently and make things happen,” said Alistair Norbury, president of BMG UK.
Italian rock label Frontiers landed Tom Lipsky as its new head of A&R of North America. Lipsky is the former head of several rock and heavy metal labels, including Loud & Proud Records, Sanctuary Records and CMC International Records, which he co-founded, and the indie Carry On Music. Napoli-based Frontiers is the Italian home of a bevy of rock greats including Def Leppard, Winger, Night Ranger, Mr. Big, Blue Oyster Cult, YES and Electric Light Orchestra, among others. Lipsky’s remit is all about translating the label’s bellissima vision for North America. In a statement, Lipsky said he and Frontiers founder Serafino Perugino “share a common vision regarding the continuing relevance and value of veteran artists,” adding, “I look forward to working with him and his team to make Frontiers the label home of choice for the artist community.”
Tixr, the primary ticketing platform based in Santa Monica, Calif., hired industry veteran Steve Oberman as the new vp of partnerships. In his new role, Oberman is tasked with growing the fast-expanding company across music and other industries both in North America and internationally. He joins Tixr from See Tickets, where he was evp and head of music. Prior to entering the ticketing game, Oberman worked in day-to-day management of artists — Stone Temple Pilots and Velvet Revolver come to mind — at Frontline and Azoff Music Management. Other recent US-based hires at Tixr include Ravi Durga, also formerly of See Tickets, as director of partnerships; Amir Mozafari, ex-DICE, as nightlife partnerships specialist; and Matt Stallknecht, formerly of NASCAR, as partnerships executive. “Tixr’s platform is the future of modern ticketing and e-commerce,” said Oberman. “The team’s speed to innovate and ship products, eye for design, and unique approach to problem-solving is second to none.”
Label, publisher and distributor Empire Nashville promoted Heather Vassar to senior vp of operations and Sarah Beth Gerlecz to director of business and legal affairs. In addition, Hannah Galluzzi has been hired as director of A&R, having previously worked in A&R at Universal Music Group Nashville for six years. Empire artists Shaboozey, Reyna Roberts and Willie Jones were featured on Beyonce’s album Cowboy Carter, while Shaboozey has the current Billboard Hot 100 No. 3 song “A Bar Song (Tipsy).” The label has teamed with Magnolia Music Group to take “Bar Song” to country radio. –Jessica Nicholson
Four industry veterans launched Fixated, described as a one-stop shop for creators, fans and brands with a goal of “reshaping the digital entertainment landscape.” Co-founders of the company include CEO Zach Katz (ex-president and COO of FaZe Clan, president of BMG North America), president Jason Wilhelm (co-founder Talent X/Sway House and Content Labs), chief studio officer Dean Johnson (co-founder Content Labs), and chief content officer Luc Boulch (content creator). The leadership team of Fixated is rounded out by Phil Ranta and Ali Adab, as chief operating officer and chief growth officer, respectively. “We are this generation’s fans who went on to become creators,” said Boulch. “In doing so, we made virality our religion. And now, whether it’s talent, content or gaming, we have a science for driving traffic to our ecosystem like no one else.”
Music marketing veteran Joe Aboud officially launched consultancy firm 444 Sounds, with a roster including Sony Music, UnitedMasters, Major Recordings and artists such as Jung Kook and Enrique Iglesias. Aboud was most recently vp of marketing and streaming at HITCO, and prior to that worked as a marketing manager at Atlantic Records.
Music Venue Trust hired Sophie Brownlee as external affairs manager and Kimberley Goddard as fundraising manager. The UK charity with a laser-focus on protecting grassroots venues also said it promoted Sophie Asquith to venue support team manager. “These new appointments will bring real experience and energy to Music Venue Trust,” said Beverly Whitrick, COO of MVT. “It is vital that, at a time when the challenges facing the grassroots music sector continue to mount, we can offer support, expertise and guidance to the venues we work with.”
SAVOR, the hospitality arm of ASM Global, added Jason Dowd as senior vp of culinary and innovation, and Craig Condra as regional vp of food and beverage. Combined, the pair have roughly 46 years of experience in the culinary and hospitality business. “At SAVOR we take the force of decades of international experience and implement a hyper-local approach, offering our clients unique culinary innovations of the highest levels while also carefully tailoring services at each venue according to the region it operates,” said Shaun Beard, svp of SAVOR. “With Jason at the helm of the company’s culinary innovation program and Craig managing the facilities at the regional level, we are fully equipped to continue delivering this signature service and unparalleled experience to all of our clients.”
LIVE, a trade group advocating for 16 live music industry associations, appointed Ross Patel to lead sustainability issues as the org’s first-ever Green Impact Consultant. Patel has many hats on already as co-founder and CEO for Whole Entertainment and chief strategy officer at UMA Entertainment Group. Plus, in June 2021 Ross joined the Music Manager Forum as a board member to help them advocate for climate action.
ICYMI:
Lu Mota
Pete Ganbarg is stepping aside as Atlantic Records’ president of A&R to launch Pure Tone Records, a joint venture with the label … Delia Orjuela is the new head of creative Mexican music/música mexicana at Warner Chappell Music … Luis “Lu” Mota left Columbia to join Atlantic as executive vp of A&R.
Last Week’s Turntable: Island Def Jamming With New VP
For much of the last decade, the Spanish collective management organization SGAE was part of one of the weirdest stories in the music business. Over the years, the collective management organization combined larger-than-life misbehavior (“Going to brothels after dinner was normal,” former senior executive Pedro Farré told El País in 2017) with an only-in-the-entertainment-business royalty accounting scheme called “la rueda” (the wheel) in which television companies played music to which they controlled the rights on late-night shows at barely audible levels in order to get back some of the money they paid SGAE in royalties.
Such songs became known as “witches’ music,” since they were played during “the witching hour,” often on astrology programs that could last for hours, and some were barely changed arrangements of public domain classical compositions registered to television executives and their relatives. In 2017, police raided SGAE headquarters.
Trending on Billboard
How much of this was amusing, as opposed to outrageous, varied directly with whether any of the money belonged to your company or creators with whom you worked, and in May 2019 the collecting society trade association CISAC took the unusual step of ejecting SGAE. Within months, hundreds of creators notified SGAE that they intended to withdraw their rights and alternatives began to emerge, including the Barcelona-based UNISON. That seemed to put more urgency behind the reforms that were already taking place, and two years later SGAE rejoined CISAC and began to rebuild the trust of creators, publishers and other CMOs.
Since then, SGAE has stabilized and turned itself around, a process that solidified and gained ground under new CEO Cristina Perpiñá-Robert, who was appointed a little more than a year ago. Last year, the organization took in €349.1 million ($377.7 million, using the average 2023 conversion rate) and distributed €354.1 million ($383.1 million), according to its 2023 financial results, which will be announced on May 10. (Distributions are higher than revenue in 2023 because of special payments from broadcasters that SGAE received in 2022 and disbursed in 2023.) Those numbers represent a 24.9% gain in revenue and a 26.6% increase in distributions, and they arguably understate SGAE’s biggest achievement: Giving publishers and creators confidence that they’re distributing royalties in a fair way.
Over that same period, the number of SGAE members with authors rights grew from 36,956 to 83,148 as it celebrates its 125th anniversary. Perpiñá-Robert has also helped make SGAE something of a hub for digital rights for Latin American repertoire. SGAE is also benefitting from the global popularity of Spanish-language music, especially a new wave of Spanish urbano musicians like Quevedo and Bad Gyal.
“For them to see SGAE as something that’s not old and bureaucratic, that’s been really good,” says Perpiñá-Robert, who previously worked at SGAE, then left for CISAC and returned last year. The Spanish CMO never had the scale of SACEM (the French CMO) or PRS (in the U.K.), and that may not change – the Spanish economy is much smaller than those of France and the U.K. But it could become a kind of specialist hub. “Everywhere is, in Europe, local music is doing better,” Perpiñá-Robert says. But only a couple of countries manage to export that local music around the world.
Since the European Commission opened up competition among CMOs to manage rights online, two major hubs have emerged to license music for online use in Europe and some other territories: SACEM and ICE, the latter of which is a joint venture of PRS, GEMA (Germany) and STIM (Sweden). (Each society still collects for offline uses of music in its home country.) They compete to represent rights from creators, publishers and even other societies, and the conventional wisdom is that most of the smaller societies will become dependent on these, while those in the middle will get squeezed. But the rise of Latin music offers SGAE another path forward.
“We’re trying to become a pan-European hub for digital for Latin American music,” says Perpiñá-Robert. SGAE collects online royalties in Europe for all the Latin American societies except those in Mexico and Brazil. (Some international superstars from Latin America sign directly to ASCAP or BMI, which make their own international deals.) With CMOs, scale leads to scale – smaller societies that lack the resources to handle the amount of data now needed to manage royalties accurately tend to get smaller, while bigger ones tend to invest, grow and then invest and grow more. And there’s never been a better time to represent any kind of Latin music rights.
As SGAE improves its reputation, its past is also getting another look. Former SGAE president Teddy Bautista, who once faced possible jail time on charges of misappropriation of funds, was acquitted, along with others. And even “la rueda” was more of a failure of organizational governance than anything else: SGAE followed its own rules, but broadcasters gamed them.
SGAE still faces its share of challenges, including a UNISON lawsuit for anti-competitive behavior. But it has already made serious progress toward earning back trust, and it could go from a problem child to a serious player.
Music Business Association president Portia Sabin’s career has reached most of the corners of the music industry, including drumming under the stage name of P-Girl in all-female punk power-pop band The Hissyfits in the late 1990s.
After studying for a doctorate in anthropology and education at Columbia University in the early 2000s, she worked intermittently for the indie label Kill Rock Stars (and married its founder Slim Moon in 2004). Around that time, she also founded Shotclock Management and in 2006 took the reins of Kill Rock Stars when Moon left to work at Nonesuch Records. She led the label — home of Bikini Kill, The Decemberists, Sleater-Kinney and Elliott Smith — for 13 years while serving on the boards of directors for both U.S. label trade associations — the American Association of Independent Music and the RIAA — and the Recording Academy’s Pacific Northwest chapter. “I made a lot of connections across the industry through them and got a good sense of what part trade associations play in the ecosystem, as well as ideas about board management,” she says.
That experience has served Sabin well since she took over the Music Business Association, known colloquially as Music Biz, in 2019. Formerly called the National Association of Recording Merchandisers, the organization initially catered to retailers, wholesalers and labels’ sales divisions. But as the music industry limped through the Napster and digital download era and eventually reinvented itself around streaming, Music Biz took on a much broader mandate. It serves as a forum where all sectors of the industry can unite to discuss mutual problems and explore new opportunities.
Trending on Billboard
Despite that evolution, Sabin says, “I will always have a soft spot for retailers because I knew them from when I ran [Kill Rock Stars]. There were times when physical sales of Elliott Smith records were literally what kept my family with food on our table. It was very, very tough during those transition years of 2010 and 2011. There just wasn’t much money coming in, except for physical.”
Ahead of Music Biz’s annual conference, which will take place next week (May 13-16) in Nashville, Sabin spoke to Billboard about how it has grown and what attendees can expect.
How does this year’s convention compare with 2023?
We had about 2,100 people last year, and we are now more than 50% further along in terms of registrations than last year at this point. I’m anticipating about 2,300. Our board wanted us to grow international attendance, so we have folks from over 30 countries.
How many members does Music Biz have?
We currently have 369 member companies. When I came on board in 2019, we had individual memberships and student memberships. We’ve done away with both of those categories. When we’d have great high-level panels, there’d be a hundred students there, and it was not a good match; it just didn’t work. We still do have some individual members who are grandfathered in because there are folks who are very critical to the music industry, who’ve always been very knowledgeable and helpful. They do a lot of moderating but nowadays, members mainly participate through company memberships. I think that’s important because that’s what we’re in the business of doing — putting companies together at our meetings.
There seems to be a big international presence at this year’s conference compared to past gatherings.
That’s been really growing. That’s part of the mandate that our board gave us. They really want us to grow international attendance and we’ve been doing it. We have folks from over 30 countries, which is exciting.
Artificial intelligence is a big topic this year.
Yes. AI is the big one that everyone’s talking about. We have TuneCore sponsoring our AI track, and [TuneCore CEO Andreea Gleeson] is going to be doing a keynote with Meng Ru Kuok, the CEO and founder of BandLab, which is on the cutting edge of everything that everybody wants to talk about. The programming is crowdsourced. Our call for proposals or presentations goes out about September; and then everybody has until the middle of December to get in their proposals. And then in January, we review every single proposal, and get a real sense of what the industry is interested in finding out more about. We choose the ones that we think are the best. Every year is different. Two years ago, we probably had 30 proposals on [non-fungible tokens]. This year, we had zero.
I see the conference is still hosting a metadata track.
I always say it’s our least sexy but most popular track. Its stuff that people really need to know — critical knowledge. And there are a lot of advancements in that area, like combining the ISRC [International Standard Recording Code] and ISCW [International Standard Musical Work Code] at creation, with rapid matching. There’s definitely going to be a lot of new things to learn.
Any other programming you want to highlight?
I love that we got so many submissions on social impact — doing good stuff in the world. So, we now have a whole track for this area. We have a streaming track, of course. We have a track on fraud, and we still have a physical track. In all, we have 17 tracks.
The transformation from NARM to Music Biz occurred before you took the helm; and while the conference still has a big legacy physical business presence, overall the meeting’s scope is much larger.
When [NARM] became the Music Business Association, it kind of fell off my radar; and I didn’t find out about it again until about 2017 when I went to the conference, and I was blown away. It was everybody that you would want to talk to and just so many different pieces of the industry in one place. That’s what they did really well when they transitioned.
How are you growing the association and the conference?
We are pushing it even more; expanding [the organization and conference] and diversifying the types of companies that can be members. We still really focus on our core of retailers, labels and distributors. We want to celebrate them, support them and preserve them; and we do so with our physical programming, which happens at the conference but also throughout the year.
In the past, the conference was a hotbed of dealmaking and private meetings between companies up in the hotel suites. Will that ingredient still be prevalent this year?
The programming is important to the Music Biz conference, but networking is just as important. We believe that those deals still happen at Music Biz because when we look at attendance, it’s still like 27% C-suite attendees. A lot of decision-makers are at the conference, which makes a big difference. In order to accommodate private meetings, we created an hour and a half break in the middle of the day, where there’s no programming, and that is for people to have lunch and network. Also, we used to start programming earlier and go until six o’clock, but we decided that by five o’clock everybody’s ready to have a drink in the bar.
What is the relationship between your organization and the RIAA nowadays?
I think it’s great. I learned a lot from them when I was on their board for a couple of years. They are wonderful people and I love what they do, which is very different from what we do. They do so much advocacy work and we really don’t because we’re a Switzerland kind of trade association, with too many [members] with competing positions on the various issues. So, I try to do advocacy and collaboration and consensus building from the inside. For example, look at all of the efforts we’ve been making recently on fraud. That’s an issue where for a while it was very contentious and divisive in our industry. People were pointing fingers and saying, “oh, it’s not my problem; it’s your problem.” And now, I think people are sort of saying, “you know, we’ve got to figure this out, because fraudsters are going make life hard for everybody.” It’s been really, really cool to see the industry coming together around this issue.
The conference goes to Atlanta next year.
Yes, it’s going to be fun. We bought out the whole hotel. It’ll just be the music folks. I hope it feels like going to a sleepaway summer camp.
Warner Music Group said on Thursday that revenues increased 7% during its fiscal second quarter to $1.5 billion, with the company pointing to the strength of its publishing business and a boost in subscription streaming revenue in recorded music.
Explore
Explore
See latest videos, charts and news
See latest videos, charts and news
Hits like Teddy Swims‘ “Lose Control” and Benson Boone’s “Beautiful Things” drove an 11% increase in recorded music streaming revenue, including a 13% uptick in subscription streaming revenue. Swims and Boone held the No. 1 and 2 spots on the Billboard Hot 100 songs chart in the first quarter, while Megan Thee Stallion‘s “Hiss” debuted in the No. 1 spot in February.
“This quarter, we saw massive hits from artists across different genres and all stages of development – exactly the kind of mix we want,” said WMG CEO Robert Kyncl on a call with investors. “[The increase in streaming revenue] was driven by stronger music performance as well as subscriber growth and subscription price increases.”
Trending on Billboard
Recorded music revenue grew by 4% to $1.19 billion overall in the quarter compared to a year ago, as the termination of Warner’s distribution agreement with BMG was a drag on the division’s streaming and digital revenue growth and made for a challenging year-ago comparison. Excluding the impact of BMG terminating its distribution agreement and not renewing its digital license deal with WMG, total revenues were up 8.8%.
Music publishing revenue grew by 19% to $306 million as WMG songwriters’ contributions to hits like Jack Harlow’s “Lovin On Me,” Ariana Grande’s “We Can’t Be Friends” and Kanye West and Ty Dolla $ign’s “Carnival” drove a more than 30% uptick in music publishing streaming revenue.
Kyncl said Warner’s growing global market share in music publishing was thanks to organic growth — like signing decorated British singer/songwriter Raye early in her career. But it was the company’s inorganic growth plans that generated the first question from analysts on the company’s earnings conference call.
In April, WMG called off plans to submit a binding offer to acquire French music company Believe.
“We decided not to pursue it for a variety of reasons that I cannot go into,” Kyncl said in response to an analyst’s question about the decision. “We have a clear strategy in expanding our offerings to serve more artists across a wider array of their careers. We are building against that … We always look at ways to accelerate beause all of this work takes time. Any time there is an option in the market to accelerate our roadmaps, we will look at it.”
Ultimately, the acquisition and bidding process for Believe pushed Warner to disclose publicly it was considering making an offer, but the time WMG had to conduct due dilligence was brief and “not in our control,” Kyncl said, which also played a part in WMG walking away.
The company is “staying vigilant about M&A opportunities” that could enhance it’s goal of providing “lower-touch services that many independent artists, labels and songwriters rely on.”
Warner Chappell announced a partnership with BandLab and its artist service platform ReverbNation that aims to provide administration and a full-service JV tier to develop BandLab’s most promising writers.
A former YouTube executive and advocate for technology and music, Kyncl ended the call with a plug for “Where That Came From,” an AI-generated song by Grammy-award winning country star Randy Travis. Travis has suffered from aphasia since 2013, limiting his ability to sing. That he was able to release new music for the first time in years last week, was “a wonderful example of what is possible with AI,” Kyncl said.
Blackstone looked poised to take over Hipgnosis Songs Fund (HSF) on Thursday after Concord Music said it would not outbid the global investment firm.
Concord surprised Blackstone and the broader market on April 18 when it announced it had the unanimous support of HSF’s directors to take over the troubled music royalty fund for £0.93 ($1.14), a bid that valued the company at $1.402 billion.
Explore
See latest videos, charts and news
See latest videos, charts and news
Concord once raised its offer to $1.25 per share, but Blackstone stole the board’s endorsement when it made it a superior offer that valued the company at $1.6 billion on April 29. Concord said Thursday that its last offer was final and will not be increased, effectively bowing out of the bidding war.
While Blackstone’s bid still needs approval from 75% of Hipgnosis Songs Fund shares, it has been the most likely buyer for shareholders looking for an offramp from the 5-year-old fund’s tumultuous last six months.
Trending on Billboard
Hipgnosis Songs Fund’s assets, which include stakes in the catalogs of Red Hot Chili Peppers, Neil Young, Journey, Lindsey Buckingham, Blondie and others, are prized by its investors and rival music companies, but the fund has been plagued by management and accounting missteps that overstated both revenue and its portfolio’s valuation, according to a due diligence report by investment bank Shot Tower Capital released March 28. HSF’s share price plummeted after its board cancelled the dividend and slashed the value of its portfolio.
Blackstone already owns two other entities under the Hipgnosis name — the private music assets investment fund Hipgnosis Songs Capital (HSC) and the the Merck Mercuriadis-led investment advisor Hipgnosis Song Management (HSM) .
An option in HSM’s contract effectively makes Hipgnosis Songs Fund Blackstone’s to lose. The option, which dates back to the fund’s initial public offering in July 2018, stipulates that the entity that Blackstone owns could match any take-over offer for the fund’s assets, a clause intended to give artists confidence their song rights and royalties would not frequently change hands.
HSF’s board will meet in June and is expected to hold a shareholder vote to approve Blackstone’s bid, with a deal ultimately coming to a close possibly in mid-July.
Influential shareholder advisory groups Institutional Shareholder Services and Glass Lewis advised Universal Music Group (UMG) investors to vote their disapproval of a UMG compensation report that details CEO Lucian Grainge‘s 2023 pay package, which included a one-time $100 million stock and options award, when it’s put to an advisory vote at UMG’s annual meeting on May 16.
Explore
Explore
See latest videos, charts and news
See latest videos, charts and news
It’s the second year in a row that ISS and Glass Lewis have criticized Grainge’s compensation package –with ISS calling it “excessive” and Glass Lewis saying it has “severe reservations” about UMG’s remuneration report – and it could stir opposition among investors, many of whom expressed reservations about payouts at last year’s annual meeting.
UMG did not respond to a request for comment.
Trending on Billboard
While investor advisory votes are non-binding and Grainge and other UMG executives are expected to keep their compensation regardless of the outcome, they are considered a measure of investor sentiment, which has hardened in recent years.
Last year, a slim majority of UMG investors – roughly 59% of shares – voted in favor of the executive pay packages for Grainge, who has been CEO of UMG since 2010, and his deputy CEO Vincent Vallejo, at the company’s annual meeting.
Other media and entertainment companies have fared worse. Investors in Cumulus Media overwhelmingly rejected CEO Mary Berner‘s $4.5 million 2023 compensation earlier this month. Last June, 53% of Live Nation shares were voted against CEO Michael Rapino‘s nearly $139 million 2022 compensation package.
Rapino and Live Nation’s president/CFO Joe Berchtold, who earned $52.4 million in 2022, were the best paid music executives of that year, and the board of the world’s largest concert promotion and ticketing company said that pay reflected “strong leadership decisions” made during the pandemic that contributed to a record-breaking $16.7 billion in Live Nation revenue in 2022.
Grainge, 64, was the third highest paid music executive of 2022, having made a total compensation of 47.3 million euros ($49.7 million) thanks to a 28.8 million euros ($30.3 million) performance bonus in addition to a base salary of 15.4 million euros ($16.2 million).
For 2023, Grainge’s base salary and cash bonus were reduced by half to 7.5 million euros (just over $8 million) and 15.16 million euros (nearly $16.3 million), respectively. The significant boost to his total compensation is owed to a one-time transition equity award worth 92,406,852 euros (roughly $100 million) that is comprised of 50% restricted stock units and 50% performance stock options. The performance stock options vest over the coming five years and can only be excised once UMG’s stock hits certain thresholds. UMG’s stock last traded at 29.23 euros ($31.44).
Taking into account other short-term and long-term incentives and benefits, Grainge’s total 2023 compensation is 138,814,000 euros or $128,264,000 based on a monthly average foreign exchange rate of 0.924.
The shareholder advisory firms were aligned in their concerns over how UMG’s pay practices compared to similar companies and argued the one-time transition award was not sufficiently linked to the company’s stock performance.
ISS said Grainge’s pay was more than 25 times higher than the median pay of CEOs from a peer group that included companies like Spotify and Vivendi.
In its report, Glass Lewis cited an alert published by Eumedion, the Dutch Corporate Governance Forum for institutional investors, which said it was “unclear if the company can count on societal support for the CEO’s total remuneration … in addition to the dissent shareholders expressed at the company’s 2023 general meeting.”
UMG said in its annual report that “the increase in remuneration year-over-year is primarily driven by the transition to a more performance-based and share-based remuneration package.”
UMG’s stock rose 17% in 2023, “which it believes is indicative of the success of its recent remuneration practices in incentivizing the creation of value,” according to the Glass Lewis report.
ISS also recommended investors vote against the election of Bill Ackman, the billionaire investor whose Pershing Square Capital Management owns 10.25% of UMG, and also against Cyrille Bollore, Manning Doherty, Catherine Lawson-Hall, James Mitchell and Vincent Vallejo, because the board “lacks sufficient independence among its members.”
Mexican hitmaker Peso Pluma has signed with CAA in all areas. The corridos singer has had a massive year leading regional Mexican music’s global movement, all while making history along the way. In 2023 alone, Peso Pluma entered 24 songs on the Hot 100, including the global smash hit “Ella Baila Sola,” his collaboration with […]
Cinq Music has acquired the music catalog of hitmaker Flow La Movie, Billboard can announce. The late producer’s robust catalog includes reggaetón megahits “Te Boté” and “La Jeepeta” — the former topped Billboard‘s Hot Latin Songs for 14 weeks in 2018. The catalog acquisition comes nearly three years since Flow La Movie (born José Angel […]
Shares of Live Nation jumped 7.2% to $94.66 on Friday following the company’s earnings report on Thursday (May 2), which showed the concert promotion and ticketing giant had a record first quarter. Revenue of $3.8 billion was up 21% year over year, and the company said it expects strong results in 2024 from its arena and high-margin amphitheater businesses.
Investors may have been encouraged by Live Nation’s insistence during Thursday’s earnings call that the U.S. Department of Justice does not pose a mortal threat to the company. Commenting about an April 16 Wall Street Journal article about a pending DOJ lawsuit, president and CFO Joe Berchtold dismissed the notion that regulators could force Live Nation to sever its concert promotion and ticketing businesses. “Very little of the conduct the DOJ has raised with us relates to the combination of ticketing and promotion resulting from the merger,” he said. “And most of what does was anticipated and addressed by the consent decree allowing the merger to go forward.
“Based on the issues we know about,” Berchtold added, “we don’t believe a breakup of Live Nation and Ticketmaster would be a legally permissible remedy.”
Trending on Billboard
Live Nation hasn’t fully recovered since news of a pending DOJ lawsuit broke. Through Wednesday (May 1), Live Nation shares had lost 11.5% since the WSJ article. Friday’s 7.2% gain helped Live Nation recover nearly half of that loss.
Numerous analysts see upside in Live Nation’s stock. On Tuesday, Deutsche Bank initiated coverage of Live Nation with a $120 price target and a “buy” rating. Following Thursday’s earnings release, Jefferies upped its price target to $115 from $114, Wolf Research raised its price target to $131 from $128, and Benchmark increased its price target to $132 from $130. CFRA downgraded Live Nation to “hold” from “strong buy,” however, and lowered its price target to $105 from $120.
Live Nation was one of the best-performing music stocks in a week the vast majority of them posted gains. Seventeen of the index’s 20 stocks gained ground this week, helping the Billboard Global Music Index improve 3.8% to 1,824.29 and nearly match the all-time high of 1,841.66 reached four weeks ago. Two stocks — Abu Dhabi-based music streamer Anghami and New York-based label and publisher Reservoir Media — posted losses and one stock, French music company Believe, was unchanged.
Universal Music Group shares climbed 4.9% to 28.92 euros ($31.16) following its first-quarter earnings release on Thursday and its announcement of a renewed licensing deal with TikTok. UMG’s earnings rose 6% (8% at constant currency) to 2.59 billion euros ($2.8 billion) and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) improved 13.2% to 591 million euros ($640 million).
K-pop company SM Entertainment was the week’s best performer after gaining 5.9% to 85,800 won ($63.27). Warner Music Group rose 5.4% to $34.14. iHeartMedia climbed 5.1% to $2.25. Cumulus Media gained 2.6% — and rose 4.2% on Friday — after its first-quarter earnings showed its 2.7% decline in revenue, to $200 million, was in line with previous guidance.
SiriusXM shares improved 3.3% to $3.12 this week despite falling 7.2% on Monday after its first-quarter earnings report showed the company’s self-pay subscribers dropped by 1.4%. Many analysts cut their price targets in the wake of the earnings. Barrington dropped SiriusXM to $4.75 from $5.75 and maintained its “outperform” rating. Deutsche Bank lowered its price target to $3.75 from $5 and kept its “hold” rating. Goldman Sachs dropped its price target to $3.25 from $3.50 and upgraded its rating to “neutral” from “sell.”