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Corporate finance veteran Michael Grau joins Madison Square Garden Entertainment Corp in a dual-capacity, with duties for overseeing the live entertainment specialist’s financial matters.
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Effective from Feb. 12, Grau joins the business as executive VP, finance, then, following a transition period, adds responsibilities of CFO from April 1.
In this role, Grau will work closely with MSG Entertainment’s executive management team to support the long-term direction of the company, reporting to MSG Entertainment’s executive chairman and CEO James L. Dolan.
Also, he will provide strategic financial insight on all facets of the business, and deal with financial planning and analysis, controllership, treasury, investor relations, tax, and procurement functions.
Grau joins MSG Entertainment from Altice USA, the publicly-traded cable communications company, where he served as CFO. He took that role in 2019 following a nearly 20-year career at Cablevision Systems Corporation, which was acquired by Altice in 2016.
“We are pleased to welcome Michael to MSG Entertainment in this important role,” comments Dolan. “Michael was previously a key member of our finance team at Cablevision, and he brings significant financial and operating experience to this role, which will prove valuable as we continue to advance the company’s key initiatives.”
“MSG Entertainment is a leader in live entertainment, and I am honored by the opportunity to leverage my experience in this role,” adds Grau. “I look forward to working with the company’s management team, and the entire finance department, to help ensure we continue to deliver excellence across our financial operations and drive business priorities.”
MSG Entertainment’s portfolio includes New York’s Madison Square Garden, The Theater at Madison Square Garden, Radio City Music Hall, Beacon Theatre, and The Chicago Theatre, and the original production, the Christmas Spectacular Starring the Radio City Rockettes.
The group last year finalized a spin-off that separated the pure-play live music business from MSG Entertainment’s state-of-the-art venue in Las Vegas, sports television network and hospitality businesses.
After negotiating a new contract with film and TV producers for the last 10 days, the American Federation of Musicians (AFM), the 70,000-member union that represents musicians in orchestras and on-air performances, has “not resolved our core issues” and will continue negotiations later this month, according to a statement put out Monday (Feb. 5) by Tino Gagliardi, the union’s international president and chief negotiator.
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“The time is now,” Gagliardi tells Billboard over Zoom. “The business model has changed, and the way we are compensated needs to reflect that.”
Echoing the Hollywood writers and actors unions, which went on strike for months in 2023 before resolving their contracts with the Alliance of Motion Pictures and Television Producers (AMPTP), the AFM identified its top issues as higher compensation, improved streaming residual payments, better healthcare and protections against artificial intelligence (AI). To the latter issue, Gagliardi said in Monday’s statement that AI protections are necessary “so our sound and/or image cannot be captured or used without consent, credit, and compensation.”
Gagliardi adds to Billboard: “I’m going to continue to fight and we’re going to continue our argument for fair treatment for musicians until we actually come to a deal. Am I confident we’re going to get one? I’m never confident. It’s up to them to show me that they’re willing to make a deal.”
AMPTP reps did not respond to requests for comment.
Members of the Writers Guild of America, SAG-AFTRA, IATSE and other Hollywood unions have been supporting the AFM since contract negotiations began with a Jan. 22 rally at the offices of the AMPTP in Sherman Oaks, Calif.
The writers and actors unions’ 2023 agreements with the AMPTP make Gagliardi hopeful for a timely AFM deal. “The solidarity in the entertainment guilds is very solid this time around,” he says, “unlike some of the issues we’ve had in the past.”
At the January rally, Teamsters Local 399 secretary-treasurer Lindsay Dougherty told a crowd of union supporters: “We learned a hard, long lesson last year that we had to be together since day one. That’s going to be the difference going into this fight for the musicians, is that we’re all together in this industry.”
Negotiations will resume Feb. 21 and Feb. 22, according to Gagliardi.
“Rap beef is so washed and tired. Exhausting. Embarrassing. Just f—ing over all corny as f—.”
The rapper Coi Leray made this pronouncement in a since-deleted tweet on Jan. 26. She was responding to an Eminem verse in a new Lyrical Lemonade song titled “Doomsday Pt. 2,” but the spat — and Leray’s suggestion that beef was a waste of energy — was quickly forgotten.
That’s because, that same day, Megan Thee Stallion released “Hiss,” a withering track that hurls vitriol at blogs, exes, shit-talkers, copycats, “Z-list hoes,” and more. Nicki Minaj is not named in the song, but she took offense to a line, and has spent her subsequent days letting the world know in interviews and on social media. She also attacked Megan Thee Stallion in a venomous new song called “Big Foot.”
All of this has been great for the commercial reception of “Hiss,” which launched at No. 1 on the Hot 100, far higher than Megan Thee Stallion’s last single, “Cobra” (No. 32). On-demand audio streams of “Cobra” started at around 1.7 million the day of release and then slid to a plateau around 1.1 to 1.2 million, according to Luminate. “Hiss” started out higher — earning 3.2 million on-demand audio streams opening day — and then began to make a similar slide, falling to 2.3 million plays by Sunday, a drop of around 27%. However, when Minaj released “Big Foot” Sunday at midnight, streams of “Hiss” shot back up — hitting 3.8 million on Monday, a jump of more than 60% — and they stayed strong for the rest of the week.
That’s all worth real money. Billboard estimates that “Hiss” earned around $121,000 in royalties from those on-demand audio streams — about $33,000 of which came from that “Big Foot” bump. (Megan Thee Stallion recently signed a distribution deal with Warner Music Group.) “Big Foot,” meanwhile, has earned more than $44,000 in recorded music royalties from its audio streams, Billboard estimates. (These figures don’t take into account other sources of streams or sales, which were especially significant for Megan Thee Stallion.)
In an industry where the competition for attention is fiercer than ever, the combination of controversy and celebrity remains the closest thing to a surefire winner. “When you’re in a very crowded marketplace with however many songs coming out on streaming services every day, you have to figure out an angle to cut through the noise,” says Eddie Blackmon, a longtime A&R. “Obviously this is cutting through the noise.”
“Beef always helps music, because it just brings attention,” adds another rap executive who requested anonymity to speak candidly. “In the clickbait world that we’re in, that gets the headlines, that’s what people talk about, that gets the barbershops going. People react to negativity more than they do positivity.”
Megan Thee Stallion has already proved adept at using celebrity and controversy to galvanize headlines and streaming, of course. When she released “WAP” with Cardi B in 2020, conservatives objected to the sexually explicit lyrics, turning the single into a culture-war-flashpoint — and a No. 1 hit. (When the two rappers released “Bongos” in 2023, it failed to incense right-wing commentators, debuted at No. 14, and quickly faded from view.) Lil Nas X achieved a similar feat with “Montero (Call Me By Your Name),” transforming conservative outrage over the track’s video into a tail-wind that propelled him to No. 1.
These days, culture war controversy may be the most effective rocket fuel for hits. For two other examples that helped mint No. 1’s in 2023, see Oliver Anthony Music’s “Rich Men North of Richmond” and Jason Aldean’s “Try That in a Small Town.”
Hip-hop feuds are another strain of controversy with their own long history, fodder for many an internet list: MC Shan vs. KRS-One; Lil’ Kim vs. Foxy Brown; Jay-Z vs. Nas; 50 Cent vs. Ja Rule; Meek Mill vs. Drake; Minaj vs. Remy Ma, and many, many, many more.
Sha Money XL produced 50 Cent’s “Wanksta,” a hooky Ja Rule diss that came out in 2002. “That was 50’s first break-through record,” Sha Money XL says. “DJs went crazy with it.”
A dispute between artists “is definitely going to raise your attention,” the producer and longtime record executive adds. “The bad thing is there can be fights, shoot-outs, that come with it.”
Listeners love to take sides in abstract debates — which rapper is more talented, or more of a sellout — especially in an era where zealous fan armies vie for primacy online, but there can be dangerous real-world consequences. “With beefs there can be a bravado there; guys want to hurt each other or defend their ego,” says Ray Daniels, a veteran hip-hop executive and host of The GAUDS Show.
In the case of Megan Thee Stallion and Nicki Minaj, Daniels continues, “no one is saying, ‘tool up and get security up.’ So to me, it’s a great thing that they’re using their platforms to shine lights on each other, whether that’s good light or bad light. Both songs are streaming; it’s obviously working.” (Though while streams of “Hiss” rebounded and stayed high, “Big Foot” enjoyed a big debut — 4.1 million on-demand audio streams — then fell off quickly, logging 1.1 million plays in the last day of the track week, according to Luminate.)
If sales can be a side effect of some spats, they can also be the main event, the whole purpose of the fracas. 50 Cent and Kanye West battled over who would sell more units in 2007, as did Minaj and Travis Scott in 2018. (At the time, Minaj memorably ridiculed Scott as “this Auto-Tune man coming up here selling f—ing sweaters.”)
Squabbles over sales also help drive sales, of course — it’s not a coincidence that West’s Graduation earned the biggest opening week of his career at that point. “Some skeptical hip-hop fans believe that most of these feuds are merely cheap marketing stunts meant to help sell records,” The New York Times noted at the time. “This feud was unabashedly a marketing stunt, with record sales not the hidden agenda but the main point.”
“We know there are real beefs and then there are manufactured beefs,” acknowledges Blackmon, who started his career working at West’s G.O.O.D. Music label. “But they all help build awareness of the songs that are being released. It’s all marketing at the end of the day. If it takes on a life of its own, the companies and teams around it figure out how to fan the flame.”
That fanning process can happen more quickly in the social media era. “Social media makes little things bigger, magnifies the tension and the opinions,” Sha Money XL notes.
Many of the prominent music- and culture-focused accounts on X, Instagram, and TikTok are entrepreneurial, meaning they accept money for posts. “People spend tens of thousands of dollars across Instagram, blogs, and X culture accounts,” says one digital marketer who is not working with either Megan Thee Stallion or Minaj. “Narrative-based campaigns are everything. You’re getting the internet to see the parts of the story you want them to see; if you wanted to hurt somebody, for example, you seed out their low first-week numbers [when they release an album], knowing that everybody’s just gonna roast them.”
“Black Twitter has had a field day right now with this whole feud” between Minaj and Megan Thee Stallion, the digital marketer adds. His advice: “Keep fueling it.”
“You want to continue the conversation,” a second digital marketer uninvolved with either rapper agrees. If a rivalry is developing, he continues, artist’s teams can go to culture-focused accounts and pay $50 or $100 for posts asking something as simple as, “who’s harder?” “It’s much easier to push a narrative on X, especially if you’re a large artist,” the digital marketer says. “You’re going to get impressions just by using the name.”
Both Megan Thee Stallion and Minaj seem keenly aware that their clash has the potential to drive clicks. Even as Minaj insults Megan Thee Stallion in “Big Foot,” she claims that she’s doing her rival a favor: “It’s the most attention you’ve ever gotten.” Meanwhile, “Hiss” targets anyone “usin’ my name for likes.” “All this free promo,” Megan raps. “I’m turnin’ a profit.”
K-pop is having amazing charts and sales success and selling out large venues around the world, but the South Korean companies behind those artists are off to a terrible start in 2024.
Through Friday (Feb. 2), four K-pop stocks — HYBE, SM Entertainment, JYP Entertainment and YG Entertainment — have fallen an average of 17% year to date. HYBE, home to BTS and its members’ various solo projects, has had the best performance with a 12% decline, while JYP Entertainment is the worst of the group with a 24.1% loss. Elsewhere, YG Entertainment has lost 14.7% and SM Entertainment is down 17.4%. Korean stocks in general have gotten off to a much better start: Through Feb. 2, the KOSPI composite index of Korean companies increased 5.5%.
Investors may feel K-pop’s finances are less than reliable after news broke this week that Kakao Corp. is auditing SM Entertainment’s financial practices following its acquisition of a 40% equity stake in 2023, according to reports out of South Korea. Kakao’s audio committee is investigating “the appropriateness of investment decisions made by SM management without holding prior consultations with Kakao,” a Kakao official told The Korea Times. For the time being, Kakao is only auditing SM Entertainment’s books, not overhauling its management or considering selling its shares. Amidst heavy media coverage in Korea, Kakao went as far as to issue a statement on Monday (Jan. 29) to dispel rumors it will sell its stake in SM.
Spotify, on the other hand, is soaring ahead of its fourth-quarter earnings report on Tuesday (Feb. 6). The music streaming giant gained 3.8% to $222.31 this week, bringing its year-to-date gain to 18.4%. Spotify shares rose 1.6% on Friday after news broke the company had signed a new distribution deal with popular podcaster Joe Rogan. Spotify will sell ads for and distribute The Joe Rogan Experience on several multiple podcast platforms, according to the Wall Street Journal. So, unlike the previous deal, Rogan’s show will not be exclusive to Spotify and will be available on YouTube and elsewhere.
Although Rogan is no longer exclusive to Spotify, the deal could be extremely lucrative. An upfront minimum guarantee and ad revenue share could be worth up to $250 million, according to the report. While Rogan has proved to be enduringly popular, Spotify kept its relationship with the comedian while maintaining distance from its previous strategy of high-priced, exclusive content deals. Call Her Daddy is no longer exclusive to Spotify, Barack and Michelle Obama departed for Amazon’s Audible, and the former royals, Prince Harry and Meghan Markle, were not renewed.
Investors’ enthusiasm for Spotify hasn’t spilled over to other music streaming companies, however. Abu Dhabi-based music streamer Anghami fell 10.1% to $0.98 this week, bringing its year-to-date decline to 5.8%. Three other music streaming companies also posted losses: France’s Deezer fell 2.3%, U.S.-based LiveOne sank 5.3% and China’s Cloud Music dropped 6.2%. Tencent Music Entertainment, China’s largest music streaming company, rose 0.4%.
The Billboard Global Music Index fell 0.4% to 1,588.68 this week as 13 of the 20 stocks posted losses and only seven stocks finished the week in positive territory. Stocks were broadly up in the United States: the Nasdaq composite gained 1.1% to 15,628.95 and the S&P 500 improved 1.4% to 4,958.61. In the United Kingdom, the FTSE 100 dropped 0.3%. South Korea’s KOSPI composite index gained 5.5%. China’s Shanghai Composite Index sank 6.1% to 2,730.15.
German concert promoter CTS Eventim was the greatest gainer this week with a 4.1% gain. Two other live entertainment companies, Sphere Entertainment Co. and MSG Entertainment, ended the week up 2.8% and 0.7%, respectively.
Among the week’s biggest losers was Hipgnosis Songs Fund, which fell 7.5% to 0.653 pounds per share. Hipgnosis fell 2.5% on Friday after news broke that Merck Mercuriadis is stepping down as CEO of the fund’s investment advisor, Hipgnosis Song Management, and will become chairman. President/COO Ben Katovsky will take over the CEO role.
What a difference a year makes. Last year’s Entertainment Law Initiative (ELI) Grammy Week Event was held during a recording business boom when AI was still an issue on the horizon and TikTok seemed like a surefire way to break new artists. This year’s event, held Friday (Feb. 2), took place amid a boom shadowed by clouds of uncertainty, including a difficult environment for new artists, a restructuring of Universal Music Group’s labels and what looks like the start of a battle with TikTok.
The winner of this year’s ELI writing contest, law school student Olivia Fortunato, wrote about the idea of a federal post-mortem right of publicity — a subject that was barely on the radar of most lawyers a year ago. The keynote speaker, Capitol Music Group chair/CEO Michelle Jubelirer, seemed to hint that her time running the label might be nearing an end. And the Entertainment Law Initiative Service Award Honoree, Atlantic executive vp of business & legal affairs/general counsel Michael Kushner, mentioned how much the industry has changed since the CD era in a way that could be taken as a sign of more changes to come.
Jubelirer’s speech got a good deal of attention, coming as it did a day after Universal Music Group (UMG) announced a restructuring of its labels that would put Republic chairman/CEO Monte Lipman in charge of the company’s East Coast labels and Interscope chairman/CEO John Janick in charge of its West Coast ones. That raises some questions about the future of Capitol Music Group that Jubelirer’s speech didn’t answer, but she dropped a hint. (A PR representative for Capitol declined to comment.)
Jubelirer said that her mantra was a question: “Am I changing the record company more than it’s changing me?” Standing at the event, “I am engaged in that very evaluation,” she said. “Asking myself that very question. And, for the first time in a very long time, I’m not so sure of the answer.”
Most of her speech was more upbeat: She spoke of growing up in Altoona, Penn., as a fan of Guns N ‘ Roses; how she went from a job in mergers and acquisitions law to Sony to the music law firm now known as King, Holmes, Paterno & Soriano; and her time at Capitol Music Group, where she worked with Katy Perry, Paul McCartney and, most recently, Ice Spice. She also praised several mentors and friends, including Universal Music Publishing Group CEO Jody Gerson, and took a moment to point out her mom, “the silver vixen over there.”
Atlantic Music Group chairperson/CEO Julie Greenwald presented the ELI Service Award to Kushner, who has worked closely with her and Atlantic chairman/CEO Craig Kallman. Kushner came to Atlantic after stints at Universal, Sony and PolyGram, where he started around the same time as Sony Music Entertainment executive vp of business affairs/general counsel Julie Swidler. After Greenwald spoke, Kushner received the customary video tribute, filled with praise both serious and silly.
Kushner then spoke about the importance of mentorship and the changes he has seen in the music business, where the only constant seems to be change itself.
Universal Music Group (UMG), the world’s largest music company, released an open letter to its artists and songwriters on Tuesday (Jan. 30) stating that the company’s music would soon leave TikTok due to disagreements over compensation, artificial intelligence, infringing works and harassment. TikTok replied a few hours later, calling UMG’s letter a “false narrative” and […]
At the beginning of 2024, the always-changing music business is going through rapid transformation unlike anything in the last decade. How music companies organize themselves is changing. How royalties are calculated and paid is changing. How companies engage with fans is changing. And investors have different expectations of public companies — more focus on margins, less obsession with growth.
Music companies’ earnings results for the fourth quarter of 2023 will provide insights into how companies have performed and, more importantly, what they expect to do in the future. Only one company, SiriusXM, has announced to date. Next week’s earnings releases include Spotify (Tuesday, Feb. 6), Reservoir Media (Wednesday, Feb. 7) and Warner Music Group (Thursday, Feb. 8). Universal Music Group (UMG) announces earnings on Feb. 28. Here are some things to watch for in upcoming earnings calls.
The scope of layoffs
In October, UMG executives primed investors for cost-cutting measures that would improve margins and allow for investments in growth opportunities. The result would be hundreds of layoffs, according to a Jan. 12 Bloomberg report. On Thursday, UMG revealed some details of a bi-coastal label group restructuring. But what’s missing, so far, are details on the number of layoffs and the cost savings UMG expects to get from a restructuring. UMG’s fourth-quarter earnings release on Feb. 28 will be an opportunity for analysts to ask the company to give an update on its restructuring plans. As Billboard noted last week, the music industry is seeing widespread layoffs despite continued streaming growth. Warner Music Group (WMG), Downtown Music Holdings and BMG cut jobs in 2023. Digital music companies have shrunk their head counts, too: Spotify, Amazon Music, SoundCloud, Tidal and Bandcamp went through downsizings of various sizes.
More troubles in TikTok-land?
When UMG failed to renew its licensing contract with TikTok, it made licensing to the social video platform a major topic of conversation for upcoming earnings calls. Analysts and investors should want to know how a company’s negotiations with TikTok are proceeding and whether to expect an interruption if the two sides cannot reach an agreement. TikTok and WMG reached an agreement in July 2023, but investors may want progress reports from other public companies — Reservoir Media, Believe, Sony Music — about their licensing talks.
UMG’s decision is not without precedent: In 2008 and 2009, WMG pulled its catalog from YouTube for nine months while the two companies’ licensing negotiations were at an impasse. In 2011, Google launched an audio music streaming service, Music Beta by Google, without licenses from both Sony Music Entertainment (SME) and WMG. When Google added MP3s to its Google Music service later that year, the SME and WMG catalogs were initially absent.
The direct financial hit to UMG will be minimal since TikTok accounts for 1% of the company’s revenue, UMG stated in an open letter about the licensing talks. But because TikTok is an important promotional vehicle and a popular place to discover music, the indirect financial hit is more substantial. Investors always want to know about direct dollar impacts of a company’s moves, and they should want to understand the downsides of leaving a hit-making social platform.
How much have price increases mattered?
Music subscription prices didn’t budge for over a decade before succumbing to change in 2022 and 2023. The big fish was Spotify, which finally raised prices in the United States and other major markets in July. A higher price creates a multiplier effect on top of existing subscriber growth and will augment what would have otherwise been record quarterly revenues. The gains should come without an increase in churn: Spotify CFO Paul Vogel said during an Oct. 27 earnings call that Spotify didn’t lose any subscribers in the third quarter due to the price increase.
For record labels and publishers, a 10% price increase atop year-over-year subscriber growth stands to accelerate revenue growth. Guggenheim analysts said in a recent note to investors that they expect price increases at Spotify, YouTube and Deezer to raise UMG’s subscription revenue growth to 14.8% in the fourth quarter from 13.0% in the third quarter.
The state of the advertising business
While the subscription market has been strong, the ad-supported side of the business has struggled to keep chase. Through the first three quarters, Spotify’s ad-supported streaming revenue increased 14.9% year over year. That’s better than the 11.4% improvement in subscription revenue but well below the 22.2% and 62.1% gains in ad revenue in full-year 2022 and 2021, respectively.
Broadcast radio has fared even worse. Companies such as iHeartMedia, Cumulus Media and Audacy have blamed a slowdown in national broadcast advertising on some disappointing earnings in recent quarters.
SiriusXM provided the latest clue about broadcast advertising. “SiriusXM’s advertising revenue remains challenged,” CFO Tom Barry said during Thursday’s earnings call, “which we believe is a product of a tough broadcast advertising market.” Elsewhere, however, SiriusXM’s digital advertising improved versus 2022: Pandora had “strong growth” in its podcasting and programmatic advertising businesses, added Barry.
Some positive news in recent days shows advertising — perhaps not for broadcast businesses — is rebounding. U.S. ad spending in November was up 25% year over year, according to MediaRadar, an advertising intelligence company. The number of advertisers declined 8%, however, suggesting existing advertisers were ramping up spending.
More good news came from major ad-driven tech companies. Google’s advertising revenue in the fourth quarter increased 11% from the prior-year period, the company announced Wednesday, up from year-over-year improvements of 3.3% and 9.5% in the second and third quarters, respectively. Meta’s revenue grew 25% and its ad impressions rose 28% in the fourth quarter, the company announced Thursday.
The mission to reach superfans
Major music companies are suddenly taking a greater interest in serving superfans, those heavy-spending consumers that drive the concert and merchandise businesses but have less effect in a world of flat-rate, all-you-can-eat music subscription services. The 80-20 rule says 80% of a company’s business comes from 20% of its consumers. With music streaming, however, a $10.99-per-month service doesn’t capture a superfan’s willingness to pay more for additional value. Spotify hinted that “superfan clubs” were in the works in an announcement about the Digital Markets Act in the European Union. UMG CEO Lucian Grainge’s letter to staff in January said the company will focus on “strengthening the artist-fan relationship through superfan experiences and products.”
The problem isn’t that consumers won’t pay more money to engage with their favorite artists. The problem is no platforms have found a winning formula. Numerous previous attempts to court superfans fizzled. Drip, a platform that allowed artists to provide fans with music and other items for a recurring monthly fee, lasted from 2011 to 2016 (it relaunched a Kickstarter in 2017 but shut down in 2018). PledgeMusic shut down in 2019 amidst financial problems and allegations of improprieties. Most recently, startups’ attempts to use Web3 technologies to build superfan communities ran headfirst into the public’s sudden distrust of cryptocurrency and disinterest in NFTs. Given Spotify’s market size and resources, though, the company could make a real impact.
Global superstar Drake is making moves to expand his influence. His OVO Sound label has announced a new partnership with the Santa Anna Label Group, an artist and label services company launched by Sony Music last year.
Through the partnership, OVO will remain a distinct label with its own roster, but will benefit from distribution, marketing and promotion, A&R services, finance and accounting, and more from the American company.
Santa Anna is a new venture, launched in January 2023 by Sony Music and Alamo Records CEO Todd Moscowitz, with the goal of helping artists and entrepreneurs to develop their businesses within the industry. This isn’t Moscowitz’s first encounter with the Toronto label: the industry executive was CEO of Warner Records in 2012, when OVO was originally founded under the Warner banner.
“After 10 years, it’s exciting to reunite with the OVO Sound team to collaborate on new ways to support their impressive roster of artists,” Moscowitz said of the new partnership. “Together, I look forward to working with a best-in-class management team to develop opportunities to help scale their business and take their artistry to new heights.”
OVO was founded by Drake, producer Noah “40” Shebib and manager Oliver El-Khatib. The roster includes popular Toronto talent like Majid Jordan, DVSN and PARTYNEXDOOR, and is headed by former Warner A&R executive Mr. Morgan. This new announcement comes after Majid Jordan’s fall 2023 release of the duo’s latest LP, Good People, and ahead of PARTYNEXTDOOR’s P4, expected soon.
The OVO brand — October’s Very Own, named after Drake’s birth month — includes live music at OVO Fest and a brick-and-mortar clothing store in Toronto, as well as the label. In the decade-plus since OVO’s launch, the label has largely focused on Canadian acts, though they also represent Dutch artist (and their first female signee) Naomi Sharon.
The partnership indicates that Drake’s business ambitions are only growing. Will OVO expand its focus beyond Canada? Or will the new investment be directed towards discovering new artists like they did recently with 6ixBuzz collaborator Smiley? –Rosie Long Decter
Vancouver-Based Beatdapp Partners with Universal Music Group to Detect Fraud
Vancouver-based Beatdapp has become the leading streaming fraud detection company in the music industry today after successfully raising C22M in growth financing and newly announced partnerships with SoundExchange, Napster and a “strategic collaboration” with Universal Music Group.
Last year, the company analyzed more than two trillion streams and 20 trillion data points for its five core categories of customers: DSPs, music labels, collection societies, creator tool services and music distributors.
Beatdapp asserts that as much as 10% of global streams are fraudulent, with the result that as much as US$1B in royalties end up in fraudsters’ pockets. Latest statistics suggest more than 100,000 tracks are uploaded every day. These are on top of the 100M tracks Spotify hosted in 2023, with over 30M added annually at the current rate of uploading.
The company claims to detect fraud with more than 99% accuracy. That’s become especially pertinent as Spotify has eliminated royalties for songs with less than 1,000 songs, in a claimed effort to crack down on fraud. Fraud is also a major topic of conversation when it comes to artificial intelligence, a point of existential angst for many in the music industry.
Recently, Universal Music Group has also been up front when it comes to fair distribution of royalties, pulling its entire song catalogue from TikTok at the end of January. In a widely distributed open letter, the major record company accused the platform of “trying to build a music-based business, without paying fair value for the music,” according to a new open letter.
In the meantime, companies offering fraud detection or protection could have major value within the music industry. –David Farrell & Richard Trapunski
Tokyo Police Club Says Goodbye
Tokyo Police Club, one of the most successful Canadian indie rock bands of the last two decades, is calling it quits — but not before four more hometown goodbye shows in Toronto from Nov. 27-29 at History.
Though they began in Ontario, a press release announcing the band’s breakup says the members of the band are now spread out from Los Angeles to Toronto to Prince Edward Island.
In a joint statement signed by “Dave, Graham, Josh and Greg,” the group explains that, “It’s time for us to say goodbye! This band has meant so much to us for so many years, but all magical things must come to an end. Tokyo Police Club will always stand for the connection we have shared ever since we were teenagers, and it’s brought so many amazing people and moments into our lives.”
Tokyo Police Club was formed by four high school friends in Newmarket, Ontario, and comprises vocalist and bassist Dave Monks, keyboardist Graham Wright, guitarist Josh Hook, and drummer Greg Alsop. The group made a splash with an acclaimed debut EP, A Lesson In Crime, in 2006, going on to release two more EPs and five full-length albums and tour internationally, from Coachella to The Late Show with David Letterman.
Among other nominations, the band was twice up for the Juno Award for Alternative Album of the Year, in 2011 for Champ and in 2019 for TPC, its final full-length release.
After the band’s first goodbye show was announced, there’s been overwhelming demand for more. Now, it’s a four-night stand in Toronto. Additional live dates could also be in the works, they hint. –Kerry Doole
Last Week in Canada: Chilly Response to Pitchfork Changes
It’s time for another quick whirl around the Executive Turntable, Billboard’s comprehensive(ish) compendium of promotions, hirings, exits and firings — and all things in between — across music. Get to know the most powerful people in the music biz in the latest Power 100 list.
Crypto.com Arena, home of Lakers, Kings, Clippers and Sparks, hired Ron Little as the Los Angeles landmark’s vice president of security. Little will lead all event and non-event security and risk management services for the arena, and assist with planning safety protocols. He arrives in LA from Seattle, where he served as director of security for Lumen Field, Lumen Field Event Center and the WAMU Theater. Prior to the Emerald City, he held various roles in Oakland, most notably as GM for SMG at Oracle Arena and the Oakland-Alameda Coliseum. Over the course of his 30-plus years in the biz, he also worked with Bill Graham Presents, Live Nation and the Bonnaroo Music Festival. “With a wealth of experience and a deep understanding of the industry, Ron brings a unique perspective that aligns seamlessly with our vision,” says Lee Zeidman, president of Crypto.com Arena. “His strong industry relationships will undoubtedly contribute to the success of the arena, and we eagerly anticipate his leadership in overseeing a diverse range of events here in Los Angeles.”
Sony Music Entertainment looks to pounce on double-digit growth in Asia with the appointment of Kenny Ong as the label group’s new managing director for Malaysia, Vietnam, Singapore and special projects Southeast Asia, effective immediately. Ong’s job will be to expand Sony’s share of the pie in the region — revenue in all of Asia rose 15.4% in 2022, according to IFPI — and champion Southeast Asian artists. Ong was previously CEO of Astro Radio, the top radio power in Malaysia, and between 2015 and 2021 was managing director of Malaysia, Singapore and Indochina for Universal Music Group. “Our region is poised for continued growth, and to seize the opportunity it will require more creativity and diligence,” said Shridhar Subramaniam, SME’s president of corporate strategy and market development, Asia and Middle East.
Madison Square Garden Entertainment and Sphere Entertainment hired Laura Franco as evp and general counsel for both companies, effective Feb. 20. Franco, who wields 30-plus years in legal experience, including most recently as chief legal and compliance officer at Bumble, will report directly to executive chairman and CEO James L. Dolan. As general counsel, Franco will direct all business legal affairs, including complex transactions, at both companies. Prior to Bumble, parent of the same-named dating app, she served as evp and general counsel of CBS. “We are pleased to welcome Laura to the MSG Family of Companies,” said Dolan. “Laura’s background handling high-profile corporate and business legal matters at premier media companies will be a valuable addition to our Legal teams, and we look forward to leveraging her expertise as both companies pursue their business strategies.”
Curb Records promoted several staffers, with Craig Powers rising to svp of media and continuing to spearhead mainstream/crossover radio success with label artists including for King + Country and Natalie Grant; Powers had served as vp of media since 2020. Lori Hartigan has been promoted to national director of media; Hartigan has been with Curb for 10 years and has served the past eight years as director of west coast promotion. Additionally, Todd Thomas will move into the director of west coast promotion role (having previously served as director, southwest promotion), while Bailey White has been hired as director of southwest promotion. White comes to Curb after three years with Black River Entertainment’s promotion team. –Jessica Nicholson
Warner Music UK appointed Natasha Billing to svp of commercial and data insights, and promoted Nick Allum to her vp of data and insight. The label said these moves coincide with a shift in WMUK’s approach to data analytics and revenue generation, and will ultimately assist in nurturing artists’ careers by amplifying audience engagement and fueling innovation. Billing’s previous work includes stints at ASOS and Made.com, as well as a three-year stretch in a strategy role at Warner Music International. Allum, who reports to Billing, is tasked with building an in-house data and insight team and will manage audience, revenue and marketing data collection for the company’s labels. “With our new setup, and under Natasha and Nick’s leadership, we are well positioned to offer the best support possible to our artists, labels and partners, while further promoting and accelerating WMUK’s incredible frontline and catalogue releases,” said Isabel Garvey, WMUK’s chief operating officer, to whom Billing reports.
Cherie Hu, a respected music tech researcher and founder of data-driven learning platform Water & Music, landed a full-time teaching job at Syracuse University‘s prestigious Bandier Program for Recording and Entertainment Industries. Beginning in the fall semester, Hu will teach students about emerging technologies and new music industry models as part of Syracuse’s Newhouse School of Communications, where she currently adjuncts. Hu plans to continue her involvement with Water & Music in a more strategic role. As a journalist, Hu covered the intersection of music and tech for Billboard, Forbes, Pitchfork and NPR Music, among other outlets, and received the Reeperbahn Festival’s Award for International Music Business Journalist of the Year in 2017. “Cherie Hu is in an elite echelon of analysts creating the absolute best work and thinking about the future of the music industry,” said Bill Werde, director of the Bandier program and former editorial director of Billboard. “I’ve respected and learned from her work for years, and am thrilled to welcome her to the Bandier, Newhouse and Syracuse family, to continue her industry-leading work, and to teach our students about what’s next in music industry business models, marketing and platforms.”
Music-licensing company Epidemic Sound appointed former Amazon and Grubhub exec Sam Hall as chief product officer, starting Feb. 5. In his new role, Hall will lead Epidemic’s product department to boost its B2B/B2C offerings. He joins from CLEAR, where he was CPO at the US-based tech company. At Grubhub, Hall also oversaw the development of B2B/B2C offerings, and during his near-decade at Amazon was instrumental in building the company’s mobile business from the ground up. “We’ve made huge strides in the sophistication of our product offering to content creators of all kinds in the past three years, introducing tools that make it almost frictionless to soundtrack content,” said Oscar Höglund, co-founder and CEO. “We’re delighted to welcome Sam to accelerate this progress together; he brings a focus on customer experience across both B2B and B2C, and will be instrumental in developing a next-generation soundtracking experience for our creative community.”
Artist Partner Group announced a wide slate of promotions at the label. Eli Piccarreta has been elevated to svp of A&R, Corey Calder is moving up to svp of marketing and creative services, Jessica Kelm is now vp of marketing and digital operations, and Ashlee Merritt now has senior marketing director on her business card. APG, label home to a roster that includes Odetari, 6arelyhuman, Lay Bankz, The Sweepers and NLE Choppa, was founded in 2004 and is parent to Artist Publishing Group.
The Bryan Adams joined music-sharing tech startup Songbox as a co-founder. Using Songbox, creators can track when a file has been delivered, whether it’s been listened to and how long songs have been played. Additionally, the platform allows for creators to upload and share music video content. The Canadian rock icon said in a statement, “Songbox allows me to share new music that I’m working on in a way that I couldn’t before. I don’t need to send out MP3 files or physical products, so it keeps my ideas and early versions safe and secure until I’m ready to officially release the songs.” –J.N.
Jazz musician Branford Marsalis was named artistic director for the Ellis Marsalis Center for Music in his hometown of New Orleans. The center, which uses music to help foster community and deliver services to underserved kids and musicians, was established in 2012 and is named after Marsalis’ father. “My dad was a teacher, in music and in life,” Branford Marsalis said. “After Hurricane Katrina, he envisioned a haven for the underserved musicians and children in his hometown of New Orleans. He spent the last decade of his life committed to turning that dream into a reality at the Ellis Marsalis Center for Music. It is my honor to step into the role of Artistic Director at the Center and to continue to drive its mission. I hope to make my dad proud.”
BOARD SHORTS: Leo Premutico, co-founder of renowned ad agency Johannes Leonardo, was named chairperson of the 2024 AMP Awards for Music & Sound. As Show Chair, Premutico will be tasked with helping assemble the AMP Awards Curatorial Committee … The National Association of Broadcasters appointed iHeartMedia regional president Jeanna Berge to its radio board of directors, replacing Joel McCrae.
Nice Life Recording Company promoted Bradley Haering to the fresh position of evp of A&R, and hired Mikelle Schwartz as evp or marketing for the indie label. Both are based in Los Angeles and report to founder/CEO Ricky Reed and Larry Wade, who is COO. Haering has been at the company since its formation in 2014 and is credited with signing the label’s Grammy-nominated band The Marías. Schwartz arrives from 88rising, where she was svp of marketing, with previous stops at Warner Records and Kemosabe Records. “I am thrilled for this next chapter at Nice Life Recording Company with these expanded positions,” said Reed. “Mikelle brings over 15 years of marketing experience, making her an invaluable asset to our Nice Life team at the leadership level. Brad, who has been with us since the beginning will oversee A&R in this newly added position as we continue to expand the Nice Life roster.”
Sony Music Publishing UK hired ZaZa Kazadi as senior A&R manager and promoted Adrienne Bookbinder to senior A&R manager of UK and Europe, and Nasra Artan to senior European A&R manager. All three are based in the company’s London office, with Kazadi and Bookbinder reporting to David Ventura, president and co-managing director, and Artan reporting to Ventura and Johnny Tennander, svp of international. Kazadi previously worked in management at Never Dies Management and spent two years as A&R manager at BMG Music Publishing.
Jon Granat joined JDM Music + Sound, makers of custom sound design for movie advertising, as a partner. Granat arrives from Nettwerk Music Group, where as svp of global sync licensing, he led a team working on creative, licensing and biz development for a roster including Passenger, St Lucia and Vacations. Prior to NMG, Granat worked with companies ranging from BMG, Chrysalis and Warner Chappell Music, among others. “I’m beyond thrilled to welcome Jon to the company,” said Joel Dean, a founding partner of JDM Music + Sound. “His wealth of experience across the music industry will be invaluable to bringing opportunities to the JDM catalog and our roster of composers.”
BMI veteran MaryAnn Keen was promoted to director of creative in the PROs Nashville office. Keen joined BMI in 2016 and was most recently the creative associate director, instrumental in scouting and signing new songwriters and coordinating event, such as the Key West Songwriters Festival. She has gained experience working with emerging writers and established hitmakers including Heath Warren, Mackenzie Carpenter and Brett Tyler, among others. Keen will continue to report to BMI’s Leslie Roberts, AVP of Creative Nashville.
Believe elevated Kristof Jansen to vp of Groove Attack, the digital firm’s rap and hip-hop brand in Germany. Approaching ten years at the company, Jansen most recently served as director of repertoire development for A&R at both Believe and Groove Attack. He’ll work out of the Cologne office and continue to report to Thorsten Freese, GM of Believe Germany.
Musicians on Call, a non-profit that brings music to the bedsides of patients, promoted six key staffers: Nicole Rivera to vp of programs, Sara Kolodziejczak to vp of development, Tarah Duarte to senior manager of strategic partnerships, Alli Prestby to creative manager, and Audrey Jadwisiak and Orenda Senior to program manager. “These team members have excelled in their roles and significantly improved the foundation of Musicians On Call. Our programs and national brand, along with the overall health of our organization, have all benefited from their leadership, creativity and ingenuity,” said MOC CEO Pete Griffin.
ICYMI:
Merck and Louis.
Universal Music Group honcho Lucian Grainge put Monte Lipman and John Janick in charge of a restructured label model that rejiggers its web of frontline labels to align them under two main companies … Utopia Music co-founder Mattias Hjelmstedt exited the company … Hipgnosis founder Merck Mercuriadis (pictured) is stepping down as CEO of Hipgnosis Song Management … Kris Lamb is elevated to evp and GM of Big Machine Records … which is part of Big Machine Label Group, which promoted Mike Rittberg to COO and Clay Hunnicutt rising to evp of label operations.
Last Week’s Turntable: All Songs Host Considered, Accepted
LONDON — Mattias Hjelmstedt, the co-founder and former head of Utopia Music, has exited the company following a shake-up of the Swiss-based firm’s executive ranks earlier this year.
Hjelmstedt departure from Utopia was announced in a memo to staff on Thursday (Feb. 1) sent by recently appointed CEO Michael Stebler and the board of directors.
The memo, which has been viewed by Billboard, states that Hjelmstedt handed in his resignation after “long discussions” with board members because he wanted to dedicate more time towards pursuing “new projects and challenges.”
“The board and I are, as I’m sure you are too, extremely grateful to Mattias for creating and running this amazing company for significant periods of time,” Stebler, who represents the majority shareholder group behind Utopia Music, told staff.
Referring to the company’s well-documented past struggles, which included multiple rounds of job cuts, company divestments and ongoing legal actions, Stebler said he was grateful for the “tough but necessary decisions” that Hjelmstedt began implementing in late 2022.
“I can say with absolute certainty that this was necessary for the company’s survival,” said Stebler, who has been at the helm of Utopia Music since mid-January.
In the memo, Hjelmstedt said the decision to step down from his roles with Utopia “was not taken lightly, but it comes with a deep belief that it’s the right thing to do.”
He went on to say that he firmly believed the company “will continue to grow and succeed” said the new management team means that the firm, which is headquartered in the Swiss-town of Zug, is “in capable hands.”
“As I move forward, I am excited to see how Utopia will evolve and I am cheering you all on, as I will always be one of Utopia’s biggest fans,” the co-founder told staff.
Swedish entrepreneur Hjelmstedt co-founded Utopia Music in 2016 with Thomas Gullberg and led the company through a period of intense hyper-growth between 2020 and 2022 when it rapidly bought up 15 companies.
Acquisitions in that time included music tech company Musimap; Lyric Financial, a Nashville-based provider of royalty-backed cash advances; and Proper Music Group, the United Kingdom’s leading independent physical music distributor, which provides distribution services for over 5,800 indie labels and service companies.
A just-as-quick downsizing swiftly followed, beginning with the axing of around 230 jobs in late 2022 and the subsequent offloading of three of Utopia’s businesses — Absolute Label Services, U.S.-based music database platform ROSTR and U.K.-based publisher Sentric.
During this rocky period, Hjelmstedt served as interim chief executive — taking over from Markku Mäkeläinen — and stayed at the helm of the company up until the appointment of Alain Couttolenc as chief exec last October. (Couttolenc switched roles to deputy CEO earlier this year when Stebler was appointed to the top job).
More recently, Hjelmstedt held the post of Utopia executive’s chairman and, since December, served as a member of the board.
The company he co-founded and which counts the United Kingdom and United States among its biggest revenue markets provides music companies with a range of financial and tech product services, including royalty tracking and processing, as well as its core U.K. physical distribution business operated through Proper Music Group and Utopia Distribution Services (formerly Cinram Novum). The latter’s clients include Universal Music Group, Sony Music Entertainment and [PIAS].
Speaking to Billboard in January in a rare interview, Hjelmstedt said the ethos behind Utopia Music, whose motto is “Fair pay for every play,” has always been to use technology to help artists, creators and rights holders receive higher returns.
“We have never been about disrupting or taking over the industry,” said Hjelmstedt. “It’s always been about helping the industry be better and grow.