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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.
Sphere Entertainment is placing the creative and brand strategy for its Las Vegas orb in the capable hands of Ned McNeilage, who joins the company as chief creative officer. A creative leader with 30-plus years of experience under his belt, McNeilage will oversee all things creative, including Sphere’s in-house creative design studio and brand teams, as well as the cool task of programming the digital canvas that is the venue’s LED exterior — or Exosphere. Since opening last year, the Exosphere has dazzled/boggled onlookers with fireworks displays, a gigantic eyeball, the moon, Earth and other planets, terrifyingly vivid basketballs, one of those metal climbing geo-domes you probably fell off of as a kid (pictured) and what looked like a ball of rubber bands, among other artist choices. Prior to joining Sphere Entertainment, McNeilage served as CCO at a number of companies, including VML and Swift, as well as BBH USA, the global agency where he worked with brands like Samsung, American Express and Activision. Earlier in his career McNeilage served as group creative director for TBWAMedia Arts Lab, where he worked on projects for Apple Music, and he also created award-winning work during an eight-year run as a creative director at CAA.
“I am pleased to welcome Ned to Sphere Entertainment,” said Jennifer Koester, president of Sphere Business Operations. “Sphere is redefining immersive experiences, including through the Exosphere, which is an unparalleled digital canvas for public art and brand storytelling. Ned has worked with premier brands to spearhead memorable campaigns, and he will bring that expertise to not only support our partners in creating impactful brand moments at Sphere, but also continue to build the Sphere brand.”
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Meanwhile …
Hallwood Media, a Los Angeles-based label and agency that represents songwriters and producers, hired Roderick “PushaRod” Bullock as vice president of A&R/Management. PushaRod’s pedigree includes an extremely productive seven and a half year run as A&R of urban music at Interscope Geffen A&M, where his roster included Rich The Kid, Moneybagg Yo, Kamaiyah, Ian Connor, Neechie, Arin Ray, Mitch and Co Cash. As vp, PushaRod will continue to build Hallwood’s roster of talent and work closely with the agency’s existing artists, producers and writers, including Soundwave, David Stewart, Beach Noise and Yung Dza, among others. Hallwood is the brainchild of former Geffen president Neil Jacobson, who noted he “had the chance to watch Pusha discover and develop some of the most important artists at Interscope for the years we worked together. He pushes the envelope, he’s fearless outgoing and has one of the best Rolodexes in the game (Gen Z-ers please look up Rolodex).”
DEAG founder and CEO Peter Schwenkow marked his 70th birthday this week with the announcement that he’ll hand over management of the German concert promoter to his co-CEO Detlef Kornett, starting April 1. “The captain is leaving the bridge, but not the ship,” said Schwenkow. “I will continue to be part of the journey as an advisor to the company and – together with my son Moritz – as a major private shareholder in DEAG, in order to make my contribution to the company’s continued growth in the interests of all shareholders.” Over the course of 46 years, Schwenkow has seen DEAG grow to 600 employees across seven European countries, with continuous annual sales of over 300 million euros, he said. “You can be proud of your life’s work,” said supervisory board chairman Wolf Gramatke, “and we are sure that with your continued support, we can look forward to an exciting and prosperous future.”
Jeremy Skaller, Nat Pastor, Jay Sean, Jacqueline Saturn and Jared Cotter
Cory Grimes
Wake up, it’s 3AM Entertainment — a new indie label founded by Jay Sean, Jeremy Skaller and Jared Cotter, in partnership with Virgin Music Group. The label’s first project is “Heartless,” a new single from Sean, featuring Ikky and out next week (April 5). “Today’s music business is truly global, and 3AM Entertainment will focus on supporting artists from the South Asian diaspora on their journey to becoming global stars,” explained Sean. Skaller, co-founder of The Heavy Group, and Cotter, a vp of A&R at Range Media Partners, will serve as co-presidents of 3AM. Additional early risers are Jay Sean’s longtime manager, Thara Natalie, who’s been named chief operations manager; Madison Bickel, general manager; and Mahima Sharma as A&R who will be based in New Delhi. Jay Sean’s co-manager Aayushman Sinha will consult on A&R and strategy out of Mumbai. “No single artist has done more to bring South Asian music and culture to a global audience than Jay Sean,” said Nat Pastor, Co-CEO of Virgin Music Group. “Jeremy and Jared have been with Jay on that journey, and together the three executives have a strong track record in supporting and nurturing South Asian artists in their native countries and beyond.”
Island Records promoted recent Women in Music honoree Natasha Kilibarda to vice president of marketing and creative strategy. The NYC-based executive reports up to Jay Schumer, evp and head of marketing and business development, and will stay the course on spearheading campaigns for the surging Sabrina Carpenter and Chappell Roan, along with Brittany Howard and other prized Island-ers. “Natasha is one of the most passionate and creative marketers in music, the relationships she has with her artists and managers speak for themselves.” said Schumer “Her promotion couldn’t be more deserved.” Prior to joining Island in early 2022, Kilibarda spent six years at Warner Music, rising to director of marketing and artist relations in an LA-based role. Earlier in her career, she held roles at ATM Artists and Talenthouse.
Wasserman Music has promoted nine staffers to agent and touring roles across departments, in addition to a new, first-of-its-kind orchestral division. Newly promoted Team Wass members across the agency’s expanding global business include Alex Christie (agent), Annie Cole (manager, touring), Anna Kathryn Groom (manager, brand partnerships), Owen Hynes (manager, tour marketing), Kara Klein (manager, brand partnerships), Brittany Miller (director, festivals), Noah Plotnicki (agent), Lindsay Roblesi (agent) and Holly Rowland (agent). The new Orchestral division will be led by vice president Emily Threlfall Yoon; the new division represents IP-driven symphonic properties like SQEX’s Final Fantasy VII REBIRTH World Orchestra Tour and more than three dozen titles produced by Disney Concerts, including Marvel Studios’ The Infinity Saga Concert Experience, as well as a diverse group of world-class conductors, orchestrators, and arrangers. The division will also partner with artists across Wasserman Music’s client roster, such as John Legend, Melissa Etheridge, Laufey, and Zedd, to conceive and produce new programming symphonic projects. –Jessica Nicholson
Splash, a generative AI startup based in Australia, appointed music tech veteran Tracy Chan as its new CEO. Chan’s new gig follows a nearly two-year stint at SoundCloud, where he quickly rose from senior vp to chief content officer. Chan, who is based in San Francisco, remains a strategic advisor to the audio platform. He was previously vp and head of music at Twitch and earlier in his career spent several years as a product director at Spotify. Backed by Khosla Ventures, King River, Alexa Fund and Mawson, among others, Splash creates “music for the digital generation, excelling in genres like hyperpop, EDM, Glitch, Phonk, Trap, Lo-Fi, Hiphop & others” and developed its own Roblox game, also called Splash. “Across my career, I’ve seen that the best way to help artists make a sustainable living is by engaging and co-creating with fans,” he said in a statement. “Bringing that strategy together with Splash’s talent, tech and audience is an unbelievably exciting opportunity.”
Universal Music Publishing Group promoted Adriana Ramos to managing director of UMPG Brazil, immediately replacing longtime MD Marcelo Falcao in the role. Based in Rio de Janeiro, Ramos reports to Alexandra Lioutikoff, president of Latin America & US Latin for the publishing giant. A UMPGer since 2013, Ramos most recently served as head of creative (A&R and sync) and over the years has overseen licensing opportunities for UMPG’s writers across advertising, film, TV and games, including for Riot Games’ Valorant. Prior to joining UMPG, Ramos held positions at Brazillian indie label Deck, Warner Music and BMG, among others.“With tremendous vision and dedication, Adriana has been instrumental to the success of UMPG Brazil and her promotion is much-deserved,” glowed Lioutikoff, who also recognized outgoing MD Falcao for “solidifying our credibility in the market, building a great team of executive talent, and identifying, nurturing and supporting artists and songwriters” over the past three decades.
Primary Wave Music welcomed Julianne Wilson as senior director of creative sync, a role where she’ll use her experience in advertising and music supervision to maximize sync opportunities for Primary Wave artists and writers. The company also promoted Peter Kurczaba to the same title as Wilson and Derek Pierce to director of creative sync. The NYC-based Wilson joins PWM following roles at Walker and SixtyFour Music, and says she’s already been “doing some digital crate digging” for ways to champion the company’s artists. Kurczaba, who is based in Los Angeles, joined Primary Wave eight years ago as an intern and rose to a director role, working on covers, remixes and sync placements on shows like Welcome to Wrexham and Yellowjackets. Pierce, who moved from NYC to LA to join PWM in 2020, is responsible for syncs in Winning Time, Cocaine Bear and more. Al three report to Marty Silverstone, who oversees the department as president of global sync.
Regina Carter, a multi-Grammy nominated violinist and former MacArthur fellow, will join the faculty of the UCLA Herb Alpert School of Music later this year. Carter, who has taught at the New Jersey City University and the Manhattan School of Music, will be teaching courses in jazz history and performance, and urban musical culture. “I hope to inspire creative transformations within young musicians,” Carter said.
The NMPA SONGS Foundation, which supports up-and-coming writers, has a new board of directors. Songwriters include Justin Paul & Benj Pasek (Kobalt), Dan Wilson (UMPG), Lauren Christy (Reservoir), Allison Russell (Concord), Jordan Reynolds (Warner Chappell), Gaby Moreno (peermusic) and CAM (Sony Music Publishing). Industry director include Jon Platt (Sony Music Publishing), Carianne Marshall (Warner Chappell), Golnar Khosrowshahi (Reservoir), Kathy Spanberger (peermusic), Keith Hauprich (BMG), Jim Selby (Cocord), Alison Donald (Kobalt) and Jennifer Knoepfle (UMPG). Holdovers on the board in include Jewel Kilcher and NMPA execs David Israelite, Danielle Aguirre and Charlotte Sellmyer.
Avex USA Publishing hired Brennen Bryant as its new director of A&R. He’ll oversee Avex USA’s publishing division, including signings and implementing strategies across all deals and sessions. His first order of business was to help sign hip-hop/Jersey club producer DJ Smallz 732, following the success of co-creating “Everybody” by Nick Minaj and Lil Uzi Vert. “We are thrilled to welcome our new A&R Director to the Avex family to help us discover and develop the next generation of talented artists, writers and producers,” said Lou Al-Chamaa, Avex USA’s svp and head of A&R, publishing. “With his expertise and passion for music, we are confident that he will bring a fresh perspective to our A&R team.”
New Zealand-Australian singer Jordan Rakei is the first-ever “Artist In Residence” at the iconic Abbey Road Studios. Perks include full access to the entire building, including the same studios where The Beatles recorded, plus all the classic studio instruments and gear he can get his hands on. As AIR, Rakei will participate in Abbey Road-related outreach programs, including writing camps, mentoring sessions and he’ll help the studio test out potential audio equipment. “Jordan’s exceptional talent and unique approach to music embodies the spirit of innovation that Abbey Road Studios has always championed,” said Sally Davies, managing director. “I’m excited to see how this role unfolds, enhancing the creative legacy of Abbey Road Studios and setting new benchmarks for musical innovation and collaboration for years to come.”
Transgressive Records welcomed esteemed artist manager Moriah Berger for the hybrid role of A&R and marketing manager for North America. In the role, out of Transgressive’s New York office, Berger will work with roster artists on the end-to-end process of making and marketing albums and other creative projects. During her career in management, which has included stretches at Paradigm, Mick Management and Other Operation, Berger has worked with Sharon Van Etten, Angel Olsen, MUNA and Of Monsters & Men, among others. “From the first moment we met Moriah, we knew our tastes, values and approach were all aligned, whilst her revered background within the complex tapestry of artist management was an appealing prospect,” said Transgressive company directors Toby L, Tim Dellow and Lilas Bourboulon. “We cannot wait to watch her continue to thrive as a vital new force in Transgressive’s present and future.”
Artist Publishing Group promoted Matt MacFarlane and Olly Sheppard to senior vps of A&R. Together, MacFarlane and Sheppard will continue to oversee the publishing company while mentoring and developing the A&R team. Both execs have roughly nine years or more at APG, with MacFarlane’s client roster including Tax Taylor and Rio Leyva and Sheppard clocking wins including The Fast X Soundtrack and securing a placement for writers FAANGS and JBACH on the Barbie Soundtrack.
UK-based label and publisher Ostero hired Andy Griffin as campaign manager for Asia and Danny McNamara as an A&R and digital manager. Based in Thailand, Griffin’s focus will be on artist campaigns across Southeast Asia. Previously at Cr2 Records and UMG, McNamara will be responsible for artist recruitment and managing digital artist campaigns in Ostereo’s recordings department. “We are continuing to see huge growth and success within emerging markets, enabling us to develop strong, long-standing relationships within these territories,” said Nick Kirkby, CFO of Ostereo.
Metro Public Relations promoted Emily Hessel to vp of consumer communications and audio. Since joining Metro in 2018, Hessel has been instrumental in expanding the company’s podcast, audio and books strategic consumer communications services. The company’s audio digital clients include Lemonada Media and iHeartPodcasts, with its networks the include Will Ferrell’s Big Money Players Network.
ICYMI:
Concord named veteran exec Stephanie Hudacek — founder of Soundly Music — president of its Rounder Records … SM Entertainment, home to such K-pop stars as aespa and RIIZE, promoted Tak Young-jun to co-CEO alongside existing CEO Jang Cheol-hyuk. Tak was also named executive director of the company’s board.
Last Week’s Turntable: Tyler Hubbard’s New Publishing Shingle Names GM
BMI, which was acquired by New Mountain Capital in February, last night notified songwriters and publishers that its previous owners, mainly radio and TV stations, have followed through on their commitment to disburse a $100 million bonus from the undisclosed amount received for the sale — which sources say was over $1 billion — to songwriters and publishers. What’s more, it disclosed to each songwriter and publisher how much they will be receiving.
Songwriters and publishers expressed gratitude for the payout — after all, the sellers were under no legal obligation to share any of the sale price with BMI members. In fact, some consider it a very generous reward from the prior owners. However, other sources have suggested that morally, the previous owners should shared something, considering it was songwriters’ and music publishers’ rights that generated all the licensing revenue and created the value for the sale price to be achieved.
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In any event, publishers and songwriters contacted by Billboard Thursday (March 28) said they were engaging in mathematical analysis to try and figure out what their payment represented, even though BMI laid out on its website some details on how it arrived at each individual payout. According to the website, BMI looked at the most recent five years of payouts (2019-2023) and used that as a basis to determine how much each payout should be — after taking into consideration whether the songwriter’s catalog was there for all five years or is still there even if the songwriter has left. Then, it apparently divided songwriters into tiers based on undisclosed parameters and paid every songwriter or publisher in that tier the same amount according to the website. Only songwriters or publishers that had received over $500 in royalties were eligible for a bonus distribution.
BMI didn’t provide any information on how it calculated allocations other than to say it split the bonus payouts evenly between songwriters and publishers — and that sold catalogs’ bonuses would be pro-rated between the new owners and old owners. But it did disclose that the method it used “is different from how we calculate our quarterly distributions,” according to the letter signed by BMI president/CEO Mike O’Neill that accompanied news of the allocation. “We thought very carefully about how we determined this allocation and made every effort to be as inclusive as possible and have it applied to the greatest number of earning BMI affiliates,” O’Neill’s letter stated. “Your allocation is truly well deserved, and I’m very pleased to deliver it to you on behalf of BMI’s former shareholders. Moving forward, your future with BMI is brighter than ever.”
Meanwhile, publishers’ data teams spent the day analyzing the payouts, looking at instances where they could see payouts on multiple catalogs or songwriters with similar characteristics for the five-year terms in order to compare them. Others measured their bonus payout as a percentage of the $100 million or compared it to the suspected sale price.
Still others decided that the best way to measure the bonus was to add up all the royalties BMI paid for a song catalog for the five-year period to see what percentage of that amount the bonus comprised; and then to compare that percentage with other songwriters or catalogs. One such catalog, an A-level writer/producer with several No. 1 hits during the period, earned about $4.1 million from BMI over those five years and received a bonus of $47,000 — or a 1.15% bonus on the earnings for the period, according to one source who had access to that data.
Another publishing source says comparing songwriters on its rosters who are equally successful to what each received as a bonus created quite a bit of confusion. In one instance, when they compared two songwriters at the same level, both got the same amount even though one has been at BMI for all five years while the other has only been there for only a few of the five years. “BMI might file this under ‘no good deed goes unpunished’ or ‘looking a gift horse in the mouth,’ but so far I can’t see any rhyme or reason on how they are determining the payouts,” that publisher says, but quickly adds, “Having said that, I am very happy for getting the money.”
A BMI representative was unavailable to comment at deadline — the organization was holding its Trailblazers of Gospel Music Awards event in Atlanta on Thursday. But the O’Neill letter to those receiving bonus payments also noted that the new owners will give BMI increased capabilities and leave the organization in “the best possible position to tap into numerous growth opportunities that will ensure your long-term success…increasing your distributions, elevating the services we provide and exploring new revenue streams that will benefit you.”
LONDON — Utopia Music is planning to rebrand as Proper Group AG, named after its core physical music distribution business, to reflect changes to the Swiss-based firm’s “strategic direction,” the company said Thursday (March 28).
The proposed name change, which needs to be approved by shareholders, comes almost two months after co-founder and former head Mattias Hjelmstedt exited Utopia Music following a shake-up of its executive ranks.
“As Utopia has evolved under new leadership, we recognize the need to align our brand with our new strategy and as a result, new market positioning,” said Michael Stebler, who was appointed CEO in January, in a statement sent to Billboard.
“Our previous brand identity doesn’t accurately reflect who we are today and where we aim to go in the future,” said the chief executive – a former managing director of Investment Advisors Zug AG, which operated on behalf of Utopia’s majority shareholder group. Like Utopia Music, Investment Advisors Zug AG is headquartered in the scenic Swiss town of Zug, located close to Zurich.
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Utopia Music acquired Proper Music Group, the United Kingdom’s biggest independent physical music distributor, which provides distribution services for nearly 6,000 indie labels and service companies, for an undisclosed sum in January 2022.
Eight months later, the company bought up the assets of U.K.-based Cinram Novum — which provides warehouse, fulfillment and distribution services to music labels and home entertainment companies, including Universal Music Group, Sony Music Entertainment and [PIAS] — and renamed it Utopia Distribution Services (UDS).
Both acquisitions took place during a period of intense hyper-growth between 2020 and 2022 when Utopia rapidly acquired 15 companies spanning music tech, finance, publishing, marketing and distribution.
A well-documented downsizing followed, encompassing multiple rounds of job cuts, company divestments and ongoing legal actions, eventually leading to the appointment of a new CEO and executive team at the start of the year.
Changing the company’s name to Proper Group “represents a fresh start,” said Stebler, “and reflects the changes to our strategic direction, where distribution sits at the core of the commercial value chain.”
Under the new arrangement, Billboard understands that Utopia/Proper Group will be divided into four main departments: Proper Distribution, Proper Payments, Proper Processing and Proper Music Data.
Together, the company says, they will provide clients with a “comprehensive suite of tech services” — including cross-platform analytics and royalty tracking, processing and payments — all built around the firm’s music distribution business, which has long generated the bulk of its revenue.
“By leveraging the Proper brand,” the company will “benefit from the positive and strong brand equity Proper has in the music industry,” said Stebler.
The company’s executive team remains unchanged with Stebler supported by deputy CEOs Alain Couttolenc and Drew Hill, a long-serving veteran of the U.K. physical music industry, who doubles as Utopia/Proper Group’s chief of distribution.
Hill’s responsibilities include overseeing the U.K.’s biggest distribution warehouse for physical music and home entertainment — a 25,000-square meter facility in the town of Bicester with handling capacity of up to 250,000 units per day — which Utopia opened last year as part of a £100 million ($125 million) long-term deal with international logistics company DP World.
More recently, Utopia successfully secured around half of a Series C funding round (understood to total more than 15 million euros) with a second tranche of C-round funding underway. The funds will be used to drive commercial growth, enhance product development and strengthen the company’s balance sheet, Stebler told Billboard in January.
Shareholders will get to vote on the proposed name change when Utopia holds its Annual General Meeting at the start of May.
Hipgnosis Songs Fund, the troubled publicly traded music royalty company that owns full or partial rights to song catalogs from the Red Hot Chili Peppers, Shakira, Justin Bieber and Neil Young, issued a damning report Thursday (March 28) compiled by a third party that details missteps the fund and its investment advisor made leading to a 26% portfolio downgrade earlier this month.
The London-listed fund, which became the poster child for music as an investable asset class, cut the value of its portfolio earlier this month and told investors not to expect the resumption of dividends “for the foreseeable future” while the company focuses on paying down debts.
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Compiled by the board’s lead independent adviser, Shot Tower Capital, the report found that Hipgnosis Song Management, run by Hipgnosis founder and music manager Merck Mercuriadis, materially overstated the fund’s revenue and earnings before interest, taxes, depreciation and amortization (EBITDA) and supported catalog acquisitions with financial analysis that failed to meet “music industry standards.” Hipgnosis Songs Fund itself overstated the scope of its music assets — the kinds of royalties and administration rights it owned and its share of those rights — in disclosures to investors and regulators. And in a pitch last September to investors to sell some 29 catalogs to a sister Hipgnosis company, the fund included a better-than-could-be-expected post-deal valuation, the report found.
In a statement announcing the report, the fund’s board said it is exploring “all options for the future of the company,” and that it will release its strategic review and proposals by April 26.
Hipgnosis Song Management said it was still reviewing the report, which it received late yesterday. “However, there are aspects of the report that HSM strongly disagrees with and considers to be factually inaccurate and misleading,” the company stated.
“Throughout the life of the company, HSM has worked constructively, and in good faith, with the company’s board and other advisers to deliver the best outcome for the company’s shareholders,” the company continued. “Each adviser was recruited by the company’s board to advise on their specific area of expertise and with clear areas of responsibility.”
Investors found heart in the report; at the close of London markets on Thursday, Hipgnosis Songs Fund was trading at 0.69 pounds ($0.87), up 8.3% on the day and 30.43% above its 52-week low of 0.53 pounds ($0.69) set on March 4.
Here are some of the most revealing findings from Shot Tower’s report:
“The Fund overpa(id) for the majority of the catalogs it acquired.”
Hipgnosis Songs Fund, at the investment adviser’s direction, famously paid top-dollar for music assets — more than $2.2 billion overall. Today, those assets are worth $1.948 billion, with 67 of 105 acquisition deals currently worth less than their purchase price.
The investment advisor’s “diligence and underwriting standards” are the reason why.
Hipgnosis Song Management predicted aggressive growth, but three-quarters of its catalogs missed those expectations “by an average of 23% annually” and the overall annual royalties the fund earned from catalogs has fallen to $121.6 million from $134.2 million.
“Passive catalogs grew significantly better than catalogs managed by the Investment Advisor.“
A significant portion of the rights the fund had in its portfolio included passive rights. However, Mercuriadis and Hipgnosis Songs Fund’s board frequently touted that their industry expertise would be a valuable tool to make these rights outperform passive catalogs.
“The fund’s public reports contain disclosures that imply greater ownership control over songs… than would have been the case.”
Multiple reports from the fund presented that it had 100% “interest ownership” in acquired catalogs, which suggests ownership and control. “In fact, a material number of catalogs represent only a fractional, non-controlling income stream in the compositions without any copyright ownership,” the report reads.
Despite promoting itself as a caretaker of artists’ and songwriters’ works, Mercuriadis’ investment advisory group “failed to invest in systems and provide the services required to effectively manage a catalog of 40,000+ songs generating +120 million of royalty income annually.”
Hipgnosis Songs Management has not tracked or managed the catalog at the song level, and its legal bookkeeping included numerous oversights and missing files that could present complications to the collection of royalties.
The report found “multiple areas where fund expenses appear unrelated to the fund and/or are excessive.”
These costly items included $1.5 to $2 million spent annually for awards shows and public relations, “including significant payments to multiple music industry periodicals”; $1.2 million in fees in 2023 from deals the fund ended up not doing; and $5.7 million in fees related to the abandoned deal to sell catalogs to its sister fund, Hipgnosis Songs Capital.
SM Entertainment, home to such K-pop stars as aespa and RIIZE, promoted Tak Young-jun to co-CEO alongside existing CEO Jang Cheol-hyuk, the company announced Wednesday (March 27). Tak was also named executive director of the company’s board. Tak, who joined SM Entertainment in 2005, has served as COO since May 2023. Prior to that, he […]
Back in the 1980s and even the 1990s, Spanish artists like Raphael, Julio Iglesias and Camilo Sesto were hugely popular both in Latin America and among U.S. Latin audiences — a situation replicated in the 1990s and 2000s by the likes of global superstars like Mecano and Alejandro Sanz, both of whom hailed from Spain. […]
With performances by Lizzo, Queen Latifah, Ben Platt and Cynthia Erivo, plus appearances by former presidents Barack Obama and Bill Clinton, a fundraiser for Joe Biden at Radio City Music Hall on Thursday (Mar. 28) in New York could jump-start the incumbent’s so-far minimal public support from Democratic-leaning music stars for the upcoming 2024 presidential election.
“You’ll see more of that in the next couple of months,” predicts Hilary Rosen, former head of the Recording Industry Association of America (RIAA) and a longtime Democratic-leaning political analyst, referring to support from artists for the Biden campaign.
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It’s still early in the presidential campaign, but at this point, Biden’s endorsements from top music stars are a shadow of those he received in 2020, including from Taylor Swift, Beyoncé, Madonna, Ariana Grande, Cher and Melissa Etheridge. James Taylor and Lenny Kravitz performed at late-2023 fundraisers for the incumbent president, but beyond that, artists have mostly been silent.
That’s partially by design. Campaign representatives say the most impactful time for celebrity endorsements is late summer and fall, when more voters are paying attention to the election. A prime example of this timing was Bruce Springsteen‘s narration of an ad about Biden’s hometown, Scranton, Pa., that came out on Halloween 2020. “When it comes to celebrities, as you get closer to the election, more [of them] get engaged,” says Chris Korge, national finance chairman for the Biden Victory Fund. “Some help us with fundraising, others help us with grassroots and campaign events.”
But several Democratic supporters in the music business say they’re concerned about the lack of stars’ involvement in the election thus far. Part of that has to do with an uneventful primary season, with little rivalry within the candidates’ parties — President Obama drew early support from artists and celebrities when he was battling Hillary Clinton for the Democratic nomination in 2008, but not as much in 2012 when he was an incumbent running essentially unopposed. “I would not be surprised [by] a very high level of engagement as time goes on,” says Cliff Chenfeld, who founded Razor & Tie Records and created Kidz Bop and hosts events for Democratic candidates. “But I’ve seen two or three shows a week this year and I have yet to hear one artist mention one word about anything political or topical. I’ve heard somebody say, ‘Wow, we could be in for a tough year,’ but I haven’t really heard anything beyond that.”
In 2020, as was the case with Obama in 2008, Biden was the “change” candidate — an alternative to a Republican president after years of policies that were largely unpopular among young voters, on topics ranging from climate change to LGBTQ rights. Due to a primary battle that year with a more progressive rival, Sen. Bernie Sanders, Biden had to wait a few months for artists to support his candidacy. As late as August of that year, John Legend, Andra Day and Dave Matthews were among his few prominent music-star supporters.
Eventually, artists lined up to support Biden in 2020, but the president faces stronger headwinds among progressive artists and young voters in 2024, due in part to the Israel-Hamas war in Gaza. “I understand the frustration. He’s older, he hasn’t gotten any more inspiring and the idea that [he’ll be] a transitional candidate to bridge the gap from one generation to the next, that’s obviously not ringing true,” says Jordan Kurland, manager for Death Cab for Cutie and The Postal Service who has organized top artists on behalf of Democratic candidates. “But I’m voting for him because he’s our candidate, and obviously I’m going to choose democracy over what comes next under Trump. And I do think [Biden] has done a good job.”
Some Democrats in the music business say both of Biden’s campaigns, unlike Obama’s in 2008 and 2012, haven’t spent much time on outreach to music stars and their representatives. But they encourage the campaign to deploy artists with dependable fan bases in swing states from Pennsylvania to Arizona as quickly as possible. A music-business source who worked with the Biden campaign in 2020 on planning events and generating artist support came away frustrated: Biden campaign reps, he says, were “not enthusiastic four years ago, I can tell you that much. I have no reason to think they’re going to be more enthusiastic now.” The source adds that he wishes this year’s Biden campaign was “further ahead” in working with politically engaged artists.
Biden’s campaign plans to employ a celebrity-heavy “surrogate” program to oversee its artist outreach, as it did in 2020 when Olympic figure-skating champion Michelle Kwan served as director. Although that program has yet to kick in, many in the music business are confident the campaign won’t need to take elaborate measures to garner artist support. “You always hear about malaise and unenthusiasm,” says Peter Shapiro, a New York concert promoter and 20-year board member for Headcount, a nonpartisan group that has registered 1 million voters since 2004. “We always see it ramp up. People will realize the choices in front of them are significant.”
Several Biden supporters in the music business say that even if Democratic-leaning artists are hesitant to wholeheartedly endorse the president, they can speak in favor of down-ballot candidates or issues like abortion or climate change. Or they can criticize former President Donald Trump, who has artist supporters of his own, including conservative musicians Kid Rock and Jason Aldean.
Will any of it matter? In 2016, Beyoncé, Jay-Z, Springsteen, Katy Perry and other music stars performed at Hillary Clinton rallies days before the election, and she lost. “Will Taylor Swift save Joe Biden? Will she be that magic bullet that will save him from being six points down from Donald Trump?” Rosen asks facetiously.
“Let’s be realistic — most artists are not going to change a single person’s vote,” Rosen adds. “What they do is draw a crowd for voter registration and raising money. That’s what all campaigns want them for.”
BMG reported record high revenues of 905 million euros ($998 million) in 2023 as catalog acquisitions and growth in its publishing division from hit songs and albums by Bebe Rexha, the Rolling Stones and Lewis Capaldi contributed to 5.7% in organic revenue growth.
Operating earnings before interest, taxes, depreciation, and amortization (EBITDA) adjusted — BMG’s preferred metric for profit — was flat at 194 million euros ($214 million, based on the foreign exchange rate as of Dec. 31, 2023) compared to last year’s 195 million euros ($208 million, based on the year-end foreign exchange rate), as the German-owned music company incorporates a slew of changes introduced by new chief executive Thomas Coesfeld. Coesfeld said his strategy is improving revenue and operating EBITDA going forward, two metrics the company said have risen by roughly a third from 2021 to 2023.
“Many of these changes are having an immediate impact,” Coesfeld said in a letter to staff viewed by Billboard. “In the first two months of 2024 we have already seen a strong double-digit increase in revenue and an increase in EBITDA versus prior year.”
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Since Coesfeld took the helm in mid-2023, BMG announced a plan to take over digital sales of its artists’ music, a new physical distribution deal with UMG and increased investments in technology for a new client-facing mobile app, improved data analytics and speedier processing of royalties.
Catalog acquisitions have been a key component of Coesfeld’s contributions since he became BMG’s chief financial officer in 2021. Backed by the deep pockets of its parent company, the European media conglomerate Bertelsmann, BMG continued its steady pace of buying in 2023 with 30 catalog acquisitions, including those by The Hollies, Jet, Dope Lemon, Martin Solveig and Paul Simon’s music interests in Simon & Garfunkel’s recordings.
Major hits for the publishing division in 2023 included “I’m Good (Blue),” co-written by Bebe Rexha, and “Boy’s A Liar Pt. 2,” by BMG songwriter Mura Masa and performed by Pink Pantheress and Ice Spice, and the release of Hackney Diamonds by the Rolling Stones and Broken By Desire To Be Heavenly Sent by Capaldi.
Country music was a big driver for BMG’s label business in 2023 thanks to Jason Aldean‘s “Try That In A Small Town,” which hit No. 1 on Billboard’s Hot 100 chart during the first week of August, and three country chart-topping hits from Jelly Roll, including “Save Me,” recorded with Lainey Wilson, another of BMG’s country stars.
Here are some of BMG’s 2023 highlights:
Operating EBITDA adjusted remained stable at 194 million euros ($214 million) from the previous year of 195 million euros ($208 million).
From 2021 to 2023, revenue has risen by more than 36% and operating EBITDA adjusted has risen by more than 34%.
EBITDA margin was 21.4 percent compared to the previous year of 22.5%.
BMG made 30 catalog acquisitions in 2023.
The annual Music Biz Conference will move from its current Nashville home to Atlanta in 2025.
Specific dates and venues for Music Biz 2025 will be announced later. The conference will continue in its usual May timeframe.
Music Biz, which attracts more than 2,300 music business professionals each year, has been held in Music City for nearly a decade, and returns this year, from May 13-16.
“We’ve had a wonderful 10 years in Nashville. We love Nashville,” Music Business Association president Portia Sabin tells Billboard. “It’s been such a great place for us to grow and we are so appreciative and are very much looking forward to this year’s conference in Nashville.”
The move was inspired by the September 2022 launch of the Music Biz Roadshow program, which has traveled to cities including Atlanta, Dallas and Miami.
“With the Music Biz Roadshow, we bring our members to different cities across the U.S. for free educational programs for artists and musicians,” Sabin says. “We got inspired by doing that because there are so many great music cities out there in the U.S.”
Atlanta felt like a natural evolution for Music Biz. “When we first brought the conference to Nashville, it was a smaller version of what it is now. We feel like Atlanta has that growth potential,” Sabin adds, noting that music industry professionals from more than 30 countries attend Music Biz each year. “Atlanta has that great international hub airport, which will make it easier for people from abroad to get to [the conference]. We are excited to showcase another great American music city.”
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In 2013, the organization formerly known as the National Association of Recording Merchandisers (NARM) rebranded as the Music Business Association. Following a four-year stint in Los Angeles from 2011-2014, the Music Biz conference has been in Nashville since 2015. The Music Business Association headquarters continues to be located in Nashville.
Beginning in 2025, the Music Biz event will revert to the way it was scheduled in its NARM days when the conference frequently moved to a new city.
“We will be on probably a two-year schedule, staying in a town for two years before going to another town,” Sabin says, noting the conference could potentially be hosted in cities such as Miami and San Diego in the coming years.
“And I’m sure we will be back in Nashville at some point,” Sabin adds. ‘Nashville’s a fabulous city and we are so grateful to have been here for 10 years. We’re looking forward to this year’s conference in Nashville. Atlanta has so much going on in terms of the music industry there, and I think it has somewhat been overlooked in general. It’s a great spot to have the conference and have this important group of people showing up to do business there.”
Recorded music revenue in the United States grew 7.7% in 2023 over the prior year, reaching a high-water mark of $17.1 billion at retail, according to the RIAA. Within that headline number, $14.4 billion — or 84% — was driven by streaming, a figure that was also up 8% over 2022.
It’s the eighth straight year of revenue growth for the U.S. business, and the rounded 8% growth over last year’s $15.9 billion represents an uptick from 2022, when the business grew 6.1% over the prior year. And while the headline figure marks the third straight year that the business has set a record for revenue — previously set in 1999, when revenue hit $14.6 billion prior to Napster taking hold — when adjusted for inflation, it still falls far below that 1999 figure, which would be $26.9 billion at current rates.
Still, the U.S. business has been growing steadily over the past several years, and streaming has settled into being a fairly consistent piece of the revenue pie: This marks the fourth straight year that overall streaming accounted for between 83% and 84% of revenue, showing that streaming and the overall revenue picture are growing in lockstep. Within the streaming category, paid subscription streaming accounted for $11.2 billion, or 78% of all streaming revenue, up 9% over the $10.2 billion it accounted for last year; and the average number of full-tier U.S. subscriptions grew 5.7% to 96.8 million, up from 91.6 million last year.
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However, limited-tier subscription revenue — the bucket into which Amazon Prime, Pandora Plus, fitness services and other paid subscriptions that don’t include access to full, on-demand catalogs falls — dropped 4% to $1.0 billion. Meanwhile, ad-supported streaming service revenue grew 2%, to $1.9 billion, up from $1.8 billion in 2022; and digital and customized radio revenue, which includes services like SiriusXM and SoundExchange distributions, picked up 8% year over year, to $1.3 billion. Synch revenue grew by a similar rate, up 7.4% to $411 million.
In terms of sales, digital downloads continued their slide, with revenue down 12.2% year-over-year to $434.1 million, now representing just 3% of the overall industry. On the flipside, physical sales once again surged, up 10.5% to $1.91 billion (from $1.73 billion last year). That was largely driven by vinyl sales growth, which was up 10.3% year over year to $1.35 billion in revenue — an increase from $1.22 billion in 2022, as units jumped to 43.2 million from 40.5 million. CD sales revenue also grew by double-digit percentages, increasing 11.3% to $537.1 million from a $482.6 million mark in 2022, even as the number of CDs sold fell. The format saw 37 million sales in 2023, down from 37.7 million the year prior, suggesting a rise in average price per unit year over year.
Overall, the percentage breakdown between digital revenue and physical revenue — 89% to 11% — remained essentially the same as it has since 2018, only fluctuating 1% one way or the other in the intervening years. At wholesale, overall revenue grew by 7%, up to $11 billion from last year’s $10.3 billion, marking the second straight year that metric crossed the $10 billion plateau.