Business News
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It’s Friday, we’re in love with Executive Turntable, Billboard’s comprehensive(ish) compendium of promotions, hirings, exits and firings — and all things in between — across the music industry.
There’s no place like home for Tim Braüner, the longtime Atlantic Records A&R exec who’s set to return to his native Denmark early next year for an elevated role within WMG. Starting Feb. 1 in Copenhagen, Braüner will be director of international A&R for Warner Music Nordics and Warner Music Denmark. He’ll report to the incoming head of Warner Music Denmark and will also work closely with Mark Fry, president of Warner Music Nordics, as well as the territory heads of Finland, Norway and Sweden. He launched his music career at WMD back in 2016 before being recruited by Atlantic two years later to join the team in NYC. Currently vp of A&R, Braüner has signed and worked with Atlantic roster artists including CKay, Major League DJz, Studio Killers and Surf Curse. “It’s great to have Tim back in the Nordics,” said Fry. “We were so proud when he was tapped by Atlantic for an A&R job in New York and now he’s back with five years’ experience and a wealth of connections that’ll help him super serve our artists.”
Warner Music Group appointed Alexandra Condon as vice president of public policy and government affairs, making her the point-person between the label and policymakers across the EU and the UK. She’ll also stay in close contact with key trade orgs and other stakeholders and be an all-around public advocate for the company. The London-based Condon joins WMG after more than a decade at PRS for Music, where she crested as head of policy and public affairs, and played an important role in the UK collecting society’s campaigns for copyright legislation. She reports to Mark Baker, svp of PPaGA. “This is a pivotal time for the music industry, with many exciting challenges and opportunities in front of us,” Condon said. “It’s never been more important to ensure policymakers understand our business and the need for a legal framework that enables us to keep investing in artists and songwriters.”
Mike Chuthakieo was named the first chief revenue officer at 88rising, reporting to CEO and founder Sean Miyashiro out of Los Angeles. Chuthakieo leads brand partnership strategy develops new commercial partnerships at the music and media company, which aims to elevate Asian talent. Chuthakieo comes to 88rising from Pinterest, where as an industry lead he launched the entertainment and restaurant industry sales teams. Prior to Pinterest, he held roles at Pandora, FOX, Myspace and Wasserman Media Group, among others. “88rising’s explosive growth over the past years has been phenomenal to watch,” said the new CRO. “I’m humbled and excited by the opportunity to join the team and apply my expertise to continue broadening the reach of this cultural powerhouse.”
Music distribution and payments platform Stem hired Nick Terzo to help extend its reach with labels and other rights owners. As the company’s new head of label and catalog partnerships, Terzo will scout opportunities for pairings with indie labels, music IP funds and catalogs, as well as work on ways to boost Stem’s artist development efforts. The East Coaster arrives from his own catalog consultancy company Radical Songs, and before that held roles at Royalty Exchange, Columbia/Sony and Maverick. Since joining Stem, Terzo has already stacked up at least a couple wins: he facilitated or guided pacts with both Immortal Records and Brooklyn Music Distribution. He reports directly to Kristin Graziani, president of Stem Distribution. “Nick is a fantastic addition to our growing team,” Graziani glowed. “He brings an infinite wealth of experience, knowledge, and relationships that will undoubtedly expand our presence and amplify our capabilities.”
Dylan Berthier is Kobalt‘s new chief people & culture officer, based in London and reporting to CEO Laurent Hubert. Berthier has 20-plus years experience in leading HR teams, and recently navigated the impossible-sounding task of leading Activision Blizzard’s P&C team during Microsoft’s just-closed $69 million acquisition of the gaming giant. Hubert hailed Berthier as being adept at leading teams “of all shapes and sizes through times of change and expansion, facilitating innovation and ensuring organizations have a culture of excellence and ways of working to enable these transformations.”
ICYMI: Hipgnosis hired a new CFO and general counsel … Amazon Music shed jobs … Delia Orjuela and Ruben Abraham were picked to lead WMG’s Mexican music division … Island hired Jay Schumer away from Columbia … Sony Music Mexico aligned with Manuel Cuevas … Maria Inés Sánchez was appointed Sony Music Latin’s new vp of West Coast operations … and CAAers in Nashville will have new digs in 2025.
Spotify named Tim Foisset as head of label partnerships in Nashville. He will manage Nashville’s label partnerships team, including Gemma McInturff, Miller Guth and Meagan Bennington. Foisset previously spent 13 years at Warner Music Nashville, most recently serving as senior vp of commercial partnerships. Prior to WMN, Foisset was director of digital marketing at Razor & Tie out of New York City. –Jessica Nicholson
Independent live producer and promoter Danny Wimmer Presents increased its headcount by five as it looks to capitalize on recent growth. DWP’s newest team members: Lisa Brende, evp of intelligence, will lead a team using data and research to help DWP stay on task in making sure “the voice of the fan is at the heart of everything they do.” She previously held senior roles at TikTok and Sony Music. Steve Donovan, project manager, will oversee teams working on production, artist relations and hospitality. He arrives from Google, where he was a senior project manager. Dan Lerner, senior designer, responsible for crafting visually compelling projects for DWP. His past work as an illustrator and graphic designer includes many a poster and album cover. Ryan Brady, accounting manager, is tasked with streamlining the finance team at DWP. He has over seven years of experience, including at Live Nation. Tanvi Varma, staff accountant in DWP’s accounts receivable/payable desk. She arrives from Wasserman Media Group, where she worked in the sports division.
Secret City Records, the Montreal-based label home of Patrick Watson and The Barr Brothers, among others, elevated Magali Ould to the newly created role of general manager. Ould is tasked with managing the indie label’s day-to-day operations, reporting directly to company president and CEO Justin West. She has been a key member of the label for 12-plus years in communications and project management roles, including director of marketing. Ould has also been key in pushing Secret City’s expansion into Francophone music, working with Daniel Bélanger, Antoine Corriveau and others. “Secret City’s tremendous growth, as well as the accelerated pace of the changing market, both bring new challenges and opportunities, and drive the need for additional management infrastructure to ensure the relevant parts of the organization continue to function at the highest level,” said West.
Music financing company beatBread hired Spencer LeBoff to spearhead a new division that offers an expanded offering of highly customizable publishing advances for songwriters. His title at beatBread, which offers advances as little as $1,000 up to $3 million, is general manager of publishing. LeBoff arrives from BMG Music Publishing and previously spent time in A&R at Warner Music, where he worked with artists including Dua Lipa and Adam Lambert. “We’ve seen significant success building partnerships on the artist side since we launched in 2020, and it’s already clear that there is real demand from songwriters for our offering,” said founder and CEO Peter Sinclair. “Spencer is an outstanding leader, and we’re excited about where this business will go, and there is much more to come.”
Musicians On Call announced four new hires at the non profit, which brings live music to hospitals: Jenny Methling as senior director of strategic partnerships; Cindy Gonzalez and Simba Woodard as program coordinators; and Lia Okenkova as a grants coordinator. “This is an exciting time for Musicians On Call as we welcome new team members whose creativity and passion will help take our mission to new heights.” said Musicians On Call president & CEO Pete Griffin.
Talent agency Wasserman Music welcomed four new executives to its ranks. They are: Brad Goodman, LA-based senior vice president. He brings decades of experience and several clients — Melissa Etheridge, “Weird Al” and Ziggy Marley — from his time at WME. Sam Bartlett, vp of casinos and performing arts centers. The CAA and ICM veteran oversees the company’s roster when booking for casinos and other venues in the U.S and Canada. Taryn Haight, LA-based vp of strategy, electronic music. This new role looks for brand-building and non-touring opportunities for WM’s roster of dance artists. Guy Mason, London-based legal counsel. Joining from VCCP Group, Mason will support Wasserman’s European business affairs team. “Since the launch of Wasserman Music in 2021, we have always put a premium on our culture and on super-serving the artists we have the honor to represent around the world,” said Wasserman Music evp & managing executive Lee Anderson.
The Chamber Group promoted Shannon Atran to director of public relations at the boutique firm. In her new role, Atran will oversee PR campaigns and overall messaging — including in crisis situations — for a wide swath of TCG’s music clients, including Lil Wayne, Mass Appeal and Big Sean, among others. Atran joined TCG in 2019 following a four year stint at MWWPR. She is New York based and reports directly to Chris Chambers, TCG’s principal and founder. “Her work and attention to detail has earned her spot as a senior member of the team at the company and I look forward to seeing the direction her career takes from here,” says Chambers.
Outback Presents promoted Taylor Freeman to senior booking manager at the independent live events promoter. The Nashville-based Freeman joined Outback Presents four years ago and has zeroed in on comedy tours, primarily, including Taylor Tomlinson, Leanne Morgan and Dusty Slay. He began his career with a four-year tenure at WME, where h honed his craft in the music department. You can hit up Freeman at taylor.freeman@outbackpresents.com.
Nashville Notes: Republic Live hired Anne Stirk as director of marketing and brand strategy, where her duties include the Boots and Hearts Music Festival. She arrives from Spotify, where she was an artist and label marketing specialist … Bob Squance joined music publisher Lady Luck Songs as creative director. He arrives from Round Hill Music, where he served as senior director of A&R … PLA Media added senior social media and marketing consultant Pip Wynans, who was most recently a Crowd Surf digital marketing manager … The Country Music Hall of Fame and Museum hired Caroline Mullins as director of marketing. Prior to joining the museum, Mullins held positions at Lipscomb University and the Tennessee Performing Arts Center.
Last Week’s Turntable: Guitar Center CEO Axed?
Hipgnosis Song Management (HSM) has announced that Daniel Pounder will become the company’s next chief financial officer, replacing Chris Helm by the end of this year. HSM has also created a new position of general counsel, tapping Jonathan Baker for the job. Both join from BMG.
The news arrives after a number of personnel changes to the company in recent weeks, including Hipgnosis Songs Fund board chair, Andrew Sutch, and two other board members who either resigned or failed to win re-election to their seats.
Hipgnosis — which owns rights to songs by Journey, Bruno Mars, Justin Bieber, Rihanna, and many more — is comprised of three branches: Hipgnosis Song Management, Hipgnosis Songs Capital and Hipgnosis Songs Fund. The latter of the three has been mired in controversy in recent weeks after it was announced that the London-listed trust would not pay its investors a dividend because of new, lower projections for revenue.
During a shareholder continuation vote on Oct. 26, where investors were asked to vote on whether they wanted to keep the investment trust going or liquidate the fund, selling $440 million worth of catalogs to the private side of the company — Hipgnosis Songs Capital — which is backed by Blackstone, more than 80% of investors voted in favor of the board drawing up “proposals for the reconstruction, reorganization or winding-up of the company to shareholders for their approval within six months,” the board said in a regulatory filing. “These proposals may or may not involve … liquidating all or part of the company’s existing portfolio of investments.”
In his role as CFO, Pounder will oversee the finances and investment functions of all three. He has over two decades of experience in music finance and accounting, including senior roles at BMG, Viacom, Famous Music and Sony Music Publishing. He completed his accountancy training with Deloitte and was admitted into the Institute of Chartered Accountants in England and Wales in 2003. By 2013, he was admitted as a fellow.
Current CFO, Chris Helm, will pass the responsibilities to Pounder over the next month and a half. According to a press release, the two will be “working closely” together to do a complete hand over until then. Helm will then be leaving to “launch a new business of his own early next year.”
Baker will oversee the legal affairs of the company’s catalog acquisition and day-to-day legal and business affairs for Hipgnosis. He will coordinate with the company’s outside counsel, including Bill Leibowitz, and will hold the responsibility for governance and compliance matters for the company and the fund’s clients.
Previous to this, Baker has 20 years of legal experience. He joins from BMG, where he has been general counsel in the U.K. and evp legal and business affairs international since 2012. Prior to that role, he worked at Simkins, a media and entertainment law firm.
Merck Mercuriadis, CEO and founder of Hipgnosis Song Management, says of the appointments: “It is always a priority for me to continually strengthen our executive leadership team to ensure we have the best institutional investment, finance and music capabilities and experience to deliver the next stage of development for Hipgnosis and our funds. This was the case starting with the appointment of Ben Katovsky as president and Chief Operating Officer one year ago and we’re delighted to welcome Dan and Jon to round out this process, particularly as this group of leaders have a proven successful chemistry of working together.
He adds, “Dan’s extensive experience and expertise in global music finance, ability to leverage data and technology and proven track record in supporting and enabling growing businesses will be of significant value to HSM and our fund clients as we work to further institutionalize the reporting and rigor of the song asset class. Likewise, Jon’s experience and expertise in global music legal affairs will support our funds while allowing us to prioritize responsible governane and compliance for Hipgnosis.”
Releases by Travis Scott, SZA, Harry Styles and Luke Combs, along with continued paid subscription growth, helped Sony Music Entertainment revenues hit a record 408 billion yen ($2.83 billion at the quarter’s average exchange rate) in its fiscal second quarter ended Sept. 30, up 13.7% from the prior-year period, parent company Sony Corp. announced Thursday.
The company’s previous high for quarterly revenue was 363.7 billion yen ($2.57 billion) in the third quarter of fiscal 2022 (the quarter ended Dec. 31, 2022).
Adjusted operating income grew 10.9% to 97 billion ($672 million). Adjusted OI excludes the impact of a $41.2 million one-time benefit recognized in the prior-year quarter related to settlements of copyright infringement lawsuits. The appreciation of the yen contributed some of the revenue growth in the quarter. Of the 49.4 billion yen ($342 million) revenue increase, foreign exchange accounted for a 12.7 billion yen ($88 million) gain — about a quarter of the improvement.
Recorded music revenues grew 13.3% to 253.8 billion yen ($1.76 billion) on the strength of subscription streaming services such as Spotify, Apple Music and YouTube Music. Streaming revenue grew 14.4% to 173.9 billion yen ($1.2 billion), accounting for 69% of recorded music revenues. Other revenues, which encompass merchandise, licensing and live performances, jumped 51.6% to 50.9 billion yen ($352 million). Physical revenues dropped 14.4% to 20.8 billion yen and download sales fell 42.2% to 8.2 billion yen ($57 million), although the two categories combined accounted for only 11.4% of recorded music sales.
Miley Cyrus’s Endless Summer Vacation, Beyoncé’s Renaissance, Lil Durk’s Almost Healed, Doja Cat’s Scarlet and Luke Comb’s This One’s For You were also among Sony Music’s top ten recorded music releases ranked by revenue. In Japan, Sony Music Entertainment’s top title was Social Path, a Japanese-language EP by K-pop group Stray Kids released with JYP Entertainment. Social Path hit No. 1 on the Billboard Japan Hot Albums chart for two weeks in September.
In the music publishing division, a 14.8% increase in streaming revenue helped total publishing revenue increase 12.6% to 82.7 billion yen ($573 million). Other publishing revenue, which includes mechanical, performance royalties and synch licensing, grew 9.6% to 34.3 billion yen ($237 million).
The visual media and platform division rose 5.7% to 62.9 billion yen ($436 million) and accounted for 15.7% of Sony Music’s total revenue. The division includes mobile games, software for PCs and game consoles, and sales related to software development contracts.
Sony Music increased its full-year guidance for revenue by 5%, or 70 billion yen ($485 million), and adjusted operating income before depreciation and amortization by 4%, or 15 billion yen ($104 million). The upward revisions were due to the impact of foreign exchange, increased streaming revenues in the music publishing division and higher mobile game sales in the visual media and platform division.
Financial metrics for Sony Music’s second fiscal quarter ended Sept. 30, 2023:
Revenue of 408.7 billion yen ($2.83 billion), up 13.7% year over year.
Adjusted operating income of 97 billion yen ($672 million), up 10.9% year over year.
Recorded music revenue of 253.7 billion yen ($1.76 billion), up 13.3% year over year.
Music publishing revenues of 82.7 billion yen ($573 million), up 12.6% year over year.
Visual media and platform revenue of 62.9 billion yen ($436 million), up 5.7% year over year.
Oscar- and Grammy-winning composer-producer-musician A.R. Rahman has signed with WME, the agency tells Billboard.
Rahman’s work spans more than 160 film soundtracks and albums in more than half a dozen languages. His music has been featured in movies including Slumdog Millionaire, 127 Hours, Roja, Bombay, Dil Se, Taal, Lagaan, Vandemataram, Jodhaa Akbar and Ponniyin Selvan (I & II). Over the course of his career, he has collaborated with artists including U2, Mick Jagger, Coldplay, Nusrat Fateh Ali Khan, Michael Jackson, Michael Bolton, M.I.A., Vanessa Mae, the Pussycat Dolls, Sarah Brightman, Dido, Hossam Ramzy, Hans Zimmer and Akon. His band also recently enjoyed two sold-out tours: one in the United States in 2022, and the other in Europe this year.
For Slumdog Millionaire alone, Rahman won two Oscars, two Grammys, a Golden Globe and a BAFTA, among other awards.
Rahman’s orchestral compositions have been performed by the London Philharmonic Orchestra, the Los Angeles Philharmonic Orchestra, the Babelsberg Film Orchestra and the Birmingham Symphony Orchestra. In 2017, he was commissioned by the Seattle Symphony to create “The Flying Lotus,” his first composition solely for orchestra.
In addition to music, last year, Rahman directed India’s first-ever virtual reality movie, Le Music, and co-wrote and produced the 2019 film 99 Songs, which premiered at the Busan International Film Festival.
Rahman also works to inspire and nurture new talent via initiatives including the all-women Firdaus Orchestra — supported by United Arab Emirates Excellency Reem Al Hashimy — and the A. R. Rahman Foundation, which is dedicated to providing underprivileged children with music education. The foundation currently funds the KM Music Conservatory and its youth symphony, Sunshine Orchestra.
MGMT signed with Mom + Pop Music, the duo’s new label after a long run with Columbia Records. Mom + Pop will release the band’s fifth studio album, Loss of Life, on Feb. 23. The album is preceded by first single, “Mother Nature,” which is out now. Loss of Life will also include the track “Dancing in Babylon” featuring Christine and the Queens, marking the first-ever feature on an MGMT album. The new LP, the duo’s first since 2018’s Little Dark Age, was produced by Patrick Wimberly and mixed by Dave Fridmann.
New Zealand-Australian singer-songwriter-producer Jordan Rakei signed a long-term global record deal with Decca and Verve Forecast, which just released his latest single, “Flowers.” The Grammy-nominated artist has released a total of four studio albums; he was previously signed to Ninja Tune.
Texas rapper BigXthaPlug signed with Solid Foundation Management, making him the first artist outside of Quality Control Music to join the firm’s roster. Solid Foundation partner Brandon Farmer will co-manage the rapper alongside his current manager, Kyle Wilson. “Solid Foundation is open for business,” said Farmer in a statement on the signing. “There was a previous perception that Solid Foundation Management was exclusive to QC artists, but that’s no longer the case. We are here to work with anyone who is a good fit and is interested in our services.”
Chinese pop star Eason Chan renewed his contract with Universal Music Greater China. The announcement followed the release of Chan’s first studio album in five years, CHIN UP!, on Oct. 27. He has been with Universal Music Group for more than 19 years, first signing to Universal Music Hong Kong’s CinePoly label; he has since released a total of 22 albums and EPs. Chan is managed by Lisa Kan.
K-pop group KARD signed with UTA for representation in North America, South America, the United Kingdom and Europe. The group released its debut project in 2016. Its first mini-album, Hola Hola, hit the music charts in 32 countries only three hours after its release, according to a press release.
Austin Williams, known for his breakthrough song “Wanna Be Saved,” partnered with CAA for booking representation. The Nashville native signed to Missi Gallimore and Jim Wilkes’ T.R.U.T.H. Management Projects/Promotion and indie label Truth or Dare Records earlier this year. He also issued his debut EP, Wanna Be Saved, in September. – Jessica Nicholson
UMG Nashville signed Fort Worth, Texas native and singer-songwriter Louie Thesinger. “Having witnessed Louie’s magnetic charisma translate on stages across this country and watch the rabid fan base he is building, I know that Louie is going to widen the country music audience,” UMG Nashville chair/CEO Cindy Mabe said in a statement. “I am so inspired by Louie’s energy, purpose, and intention to expand the sound of country music through his own personal story and his songs. I am so proud to bring Louie into the Universal Music Group Nashville family!”
L.A.-based indie-pop artist Kacy Hill signed with Nettwerk, which released her new single, “No One,” on Friday (Nov. 3). Hill is managed by Michael Kadziulis of YMU Group; her booking agent is Spencer Pinson at Arrival Artists.
Increasing competition from other international markets is placing the United Kingdom’s long-held success as one of the world’s biggest exporters of music under threat, warns a new report from umbrella trade organization UK Music.
In 2022, music exports contributed 4 billion pounds ($4.9 billion) to Britain’s economy, according to the organization’s annual This Is Music study, which measures the economic impact of the U.K. music industry across live, record sales, publishing, merch and public performance revenue.
That figure is a 60% rise on 2021’s export total of 2.5 billion pounds ($3 billion at today’s currency rates) by Billboard’s calculations, although UK Music says that changes in the way that it collates data means that direct comparisons with previous years are not an accurate measure of growth.
Overall, the U.K. music industry contributed 6.7 billion pounds ($8.2 billion) to the country’s economy in 2022, up from 4 billion pounds in 2021, based upon the gross value estimates of money generated through music sales, concerts, recording studios, touring and music tourism — roughly equivalent to pre-tax profits and salaries.
According to figures released earlier this year by U.K. labels trade body BPI, the global success of Harry Styles, Glass Animals and Ed Sheeran helped British music exports climb to a record high of 709 million pounds ($910 million) in 2022 — the highest annual total since BPI began analyzing labels’ overseas income in 2000.
Whereas BPI’s numbers are based purely upon label trade revenue, UK Music’s export figures comprise all income generated overseas by British music companies and creators, including recorded music, publishing, international touring by homegrown artists and foreign visitors attending U.K. gigs and festivals (so-called music tourism).
UK Music reports that over 37 million people attended live concerts and festivals in the country in 2022, while the total number of people working in the British music industry last year rose to 210,000, up from 145,000 in 2021 when the coronavirus pandemic was still affecting the sector. In 2019, there were 197,000 people employed across the U.K. music business, states the This Is Music report.
Meanwhile, nontraditional revenue generated by audio-visual projects, such as concert films and biopics, as well as income from music-related TV productions and deals with hardware manufacturers, were up 96% year on year, reports UK Music, which declined to provide financial figures, but said it was an example of a small-but-growing income stream as the industry diversifies.
UK Music interim chief executive Tom Kiehl says the sector’s return to growth after the downturn brought on by the pandemic is welcome news, but cautioned that more support is needed from government if the United Kingdom is to maintain its longstanding status as the world’s second-biggest exporter of music, behind the United States.
“The U.K.’s competitors are increasingly well funded and can often count on far more support from their governments,” says Kiehl. He identified South Korea, Australia and Canada as three rival markets where national governments have invested heavily in music and cultural export offices to help grow their overseas markets.
In response, UK Music is calling upon British policymakers to implement a number of measures to boost growth, including tax credits for music businesses and securing a post-Brexit cultural touring agreement with the European Union.
“Otherwise,” warns Kiehl, “we risk the U.K. being left behind in the global music race.”
The United Kingdom is the world’s third-biggest recorded-music market behind the United States and Japan, with sales of just over $1.8 billion in trade value, according to IFPI’s 2022 Global Music Report.
By 2017, nightlife venues in Berlin were closing so quickly that the phenomenon had been dubbed clubsterben — “club death.”
As a result, the city — where nightlife is so woven into the social fabric that the local government has its own club commission — began scrambling to save venues, which were shuttering due to increased gentrification. One of the agencies they called for help was VibeLab, an Amsterdam-based consulting and advocacy agency that works to protect nighttime economies and cultures by using the language most city officials know best: data.
In Berlin, the company’s research resulted in the creation of a club cadastre, or a real-time map indicating the value, extent and ownership of nightlife venues in the city as they relate to taxation.
“The city would know where new development was happening, but they wouldn’t have a clue what the neighboring clubs were before giving out [a] new development permit,” says VibeLab co-founder Mirik Milan. “They didn’t have a tool to see if a cultural or independent space need[ed] protection from this development.”
Milan says the cadastre was a significant step in building the influence of the Club Commission and the nightlife industry with local government, helping expand the Commission’s operating budget from three to seven million euros over the last five years. The cadastre has also provided advocacy organizations with time to start campaigns to protect spaces before development permits are signed off on by the city.
Since launching in 2018, VibeLab has also created such tools for cities including Montreal, New York City, Tokyo and Riyadh, along with a forthcoming analysis of Nashville. On November 27, the company will present its report for Sydney to the government of New South Wales, with officials including John Graham – who oversees the territory’s nighttime economy – having already pledged their support to the report’s outcomes.
Reports, which can be completed in as little as five months and typically cost between $75,000 to $160,000, are commissioned by various agencies in each respective city. While specific goals shift from place to place, all reports are ultimately meant to give local officials a better idea of the scope and value of that city’s nightlife culture. (To wit, the VibeLab website proclaims the organization to be “defenders of the dark.”)
Mirik Milan
Once commissioned, members of the 10-person VibeLab team fly to town. Their first step is connecting with locals who can offer intel on what goes on when the sun goes down.
“These are maybe not the highest-ranking operators,” says Milan, “but people that really know what the scene is about: music journalists, small independent promoters, passionate people that go out often.”
The VibeLab team interviews these people while also aggregating data on neighborhood populations, land prices, census statistics, public transportation and more. A report on the size, value and general health of the scene – called a “creative footprint” – is then prepared.
These footprints foster initiatives like the Berlin cadastre, which helped local officials see that “a dot on the map is a business that supports 200 jobs and makes that neighborhood flourishing and Interesting and is probably why the developer wanted to do something there,” says Milan. “It’s very much about creating awareness and education.”
Protecting nightlife ecosystems is a cause Milan has professionally championed since his tenure as the night mayor of Amsterdam, effectively launching the position in both the city and others around the world. Serving from 2014 to 2018, Milan helped create 24-hour venue permits and worked on a crime reduction initiative around the city’s Rembrandtplein plaza. He also assisted officials in New York City, London, Paris and beyond to create similar roles and nighttime governance structures, which are meant to create a dialogue between municipalities, clubs, festivals, event promoters and residents. (Currently, 15 U.S. cities have night mayors.)
The VibeLab team is steeped in this work. Co-founder Lutz Leichsenring has been the spokesperson and executive board member of the Berlin Club Commission since 2009, and Asia Pacific director Jane Slingo is the co-founder of Sydney’s Global Cities After Dark summit, the director of the city’s Electronic Music Conference and a longtime artist manager. Crucially, the entire team is passionate about going out dancing.
“When you’re in an advocacy role [like night mayor],” Milan says of the difference between his former and current positions, “you often jump on every fire: a club that’s under pressure, a festival that has sound issues, or an act of violence. With VibeLab, we wanted to be ahead of the curve, strategizing about how we could ensure cities make the right decision before it goes wrong.”
Jane Slingo
The cultural and economic stakes are real. VibeLab data shows that in bigger cities, one in seven or eight people work in the nightlife industry. When venues close, these workers are out of jobs, artists have fewer options on where to play and nightlife culture, particularly independent and underground music culture, is stifled.
“The business model of cities works against preserving nightlife culture, because the model is to develop the land,” says Milan. “But what they’re forgetting is if they root out the reason why the land got valuable, you push creative communities further to the outskirts or just wipe it out completely. And that is very difficult to build back.”
VibeLab’s creative footprints have found that a few tactics on how to best protect these communities bear out globally.
“We see in our reports that the venue ladder is essential,” says Milan. “It’s very important to have a talent development pipeline. You need spaces [that hold] 150 people where artists can do their first gigs.”
Such a ladder would provide artists with places to play at every phase of their development, from a tiny club to a mid-size room to an arena. While creative footprints don’t differentiate between independent and corporate-owned venues, the smaller and often independent spaces are most likely to close amid real estate developments and economic downturns.
VibeLab reports have also discovered the efficacy of cultural grants that include micro funds, which earmark relatively modest chunks of money – between $5,000 to $20,000 – for artists to get albums mixed, pay for short tours and more. “Really often, cultural funding only ends up at institutions and with already established artists or musicians,” says Milan, but funding “smaller entities that don’t already have a track record is very important for building up a lively scene.”
Lutz Leichsenring
With venues around the world feeling the ongoing squeeze of rising rent and gentrification (the National Independent Venue Association reported that more than 25 U.S. clubs permanently closed in 2022), creative footprints also advocate for venues to become multidisciplinary spaces that can host a variety of functions and which are open daily, rather than the Thursday to Saturday schedules many of these spaces currently operate on.
The diversification of such spaces, VibeLab posits, will likely also create a better connection between venues and the locals who live near them. This relationship is likely to help these locals, who might otherwise register sound complaints and the like, better understand the value of a space and even start going there themselves.
Footprints also advise that more public funding be given to these spaces, so they’re not so reliant on alcohol sales. Reports have also found positive correlations between good public transportation, a large population of young people and a high density of music venues.
“A report is always a vehicle for a bigger process,” says Milan. He says a report’s direct effect is how it illustrate gaps, opportunities and policy incentives to officials, while also revealing blind spots or preconceptions city governments might have about nightlife.
Ultimately, VibeLab’s work is meant to protect an industry that, Milan says, is “still very much demonized” due to misconceptions about what happens in nightlife spaces and about how much nightlife culture contributes to any given city’s economy and quality of life.
“We are very passionate about the transformative power that nighttime culture and [artistic] communities have on cities,” says Milan. “We see ourselves as translators, connecting creatives, businesses, governments and institutions to boost creativity in local communities.”
Reservoir Media reported Tuesday (Nov. 7) that revenue grew by 15% year-over-year to $38.4 million for the second quarter of fiscal 2024, ending Sept. 30, 2023. During the quarter, the independent music company acquired new catalogs like Joe Walsh, Latin music icon Rudy Perez and country writer Brent Maher as well as continued expansion in its Arabic music catalog through its partnership with PopArabia — contributing to its inorganic growth.
This quarter’s rise in revenue, up from $33.3 million in Q2 of fiscal 2023, was mostly thanks to growth in its recorded music division, which was up 22% from last year’s second quarter, and publishing, which was up 8%. Reservoir notes that the growth in recorded music is largely driven by Chrysalis Music (acquired in 2019) and Tommy Boy (acquired in 2021) and partially offset by lower synchronization and film/tv licensing revenue, likely hindered by the WGA and SAG-AFTRA strikes.
Chrysalis’ sprawling catalog of masters includes “Dancing With Myself” by Generation X and “Nothing Compares 2 U” by Sinead O’Connor, whose catalog saw a 2,885% spike in listenership after her death earlier this quarter. Tommy Boy is home to some of hip-hop’s most pioneering players, including De La Soul, the trio that Reservoir ushered on to streaming services for the first time during Q4 of fiscal year 2023 to a solid monetary boost.
In the publishing sector of their business, Reservoir’s revenue reached $25.9 million, compared to $24.1 million in last fiscal year’s second quarter. The gain was a product of strong results in performance and mechanical revenue in particular. Performance monies were up 47% YoY and mechanical was up 25% YoY. These wins, however, were offset by changes with the Copyright Royalty Board — which regulates publishing royalty rates in the U.S. — Reservoir says, leading to a decrease in digital by $2.1 million which was recognized in the prior year quarter related to the newly affirmed royalty rates for the 2018-2022 period.
The company also signed a handful of award-winning frontline songwriters in the past quarter, including Steph Jones, Rob Ragosta, Cam Becker, Josh Record, and Wé Ani.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), a closely watched metric of profitability, was up 24% this quarter to $15.9 million.
Founder and CEO, Golnar Khosrowshahi, says the company is confident in its position, both in the U.S. and emerging markets “We are encouraged by the growing opportunities internationally and welcome recent additions of El Sawareekh and RE Media expanding our presence in the emerging markets,” she says. “We will continue to pursue acquisitions in the U.S. and across the globe, and we have the right team and strategy to close accretive deals enhancing the portfolio and building long term value for the business and our shareholders.”
Jim Heindlmeyer, CFO, says that, as a result of the company’s “consistent progress against our strategic growth plan demonstrates the resilience of our business model and ongoing tailwinds from the growing music industry,” Reservoir is raising both its revenue and adjusted EBITDA guidance for fiscal 2024. “We are pleased to announce another quarter of strong performance, driven by meaningful top-line growth in both business segments,” he says.
The company’s outlook for fiscal 2024:
Revenue is anticipated to be $133 million-$137 million for the year ending March 31, 2024, with 10% growth at midpoint
Adjusted EBITDA is expected to be between $50 million-$52 million with 10% growth at midpoint
Hipgnosis Songs Fund announced on Tuesday the appointment of Rob Naylor as board chair, replacing Andrew Sutch, who was removed as part of changes set in motion at last month’s shareholders meeting.
Naylor had been a top candidate, as Billboard sources indicated, and arrives at HSF following a tenure as board chair at Round Hill Music Royalty Fund, the public fund of Round Hill, which was recently sold to Concord as part of a $469 million sale. He is CEO of Intuitive Investments Group, a fund that invests in high growth life sciences companies, and held previous roles at JP Morgan Asset Management Limited, Panmure Gordon Limited and others.
Joining the board as a non-executive director is Francis Keeling, who held the same title at Round Hill Music Royalty Fund Limited until its recent sale. Keeling is currently executive vp of business development at Orfium, a rights management solutions company. A music industry veteran, he was previously global head of licensing at Spotify and before that, global head of digital business at Universal Music Group.
“On behalf of the Board, we are delighted that Robert and Francis have agreed to join Hipgnosis Songs Fund,” said Sylvia Coleman, senior independent director of HSF. “Robert and Francis’s appointments follow extensive engagement with shareholders, and their experience and knowledge working with investment companies, most notably at Round Hill Music Fund, will be invaluable to Hipgnosis as we look ahead to the next chapter.”
On Oct. 26, investors of the fund overwhelmingly demanded structural changes to the troubled music rights company — but in ways that don’t include selling off part of its 65,000-song catalog. More than 80% of Hipgnosis investors voted in favor of the board drawing up “proposals for the reconstruction, reorganization or winding-up of the company to shareholders for their approval within six months,” the board said in a regulatory filing.
Investors also voted 71.5% against the re-election of Sutch, then-board chair, speeding up his departure, which was already set for 2024. Fund directors Andrew Wilkinson and Paul Burger also resigned as part of strategic review of its leadership.
In emailed comment following the shareholders meeting, founder Merck Mercuriadis framed the vote as “an opportunity to reset and focus on the future.”
A rebound in performing rights and heightened demand for physical product helped the value of global music copyright reach $41.5 billion in 2022, surpassing the $40 billion mark for the first time, according to a report released Monday (Nov. 6).
While record labels commanded a majority of the global market, the $5 billion annual increase was “evenly shared” between recorded music and music publishing, noted the report’s author, Will Page. The 2022 tally represented a 16% increase at constant currency — and currency fluctuations played a major role. Page restated the value of global music copyright in 2021 to $36.9 billion from $39.6 billion due to updated foreign exchange rates. Almost $2 billion of the nearly $3 billion restatement came from IFPI’s global recorded music revenues, while about $1 billion of the adjustment came from music publishing.
Record labels accounted for $26 billion of the $41.5 billion sum, a 62.7% share that was lower than both 2021 (64.6%) and 2020 (63.5%). Since 2020, a slowdown in labels’ digital revenue has been offset by more than $1 billion in growth from physical formats from “accelerating demand for CDs in Asia” and an “insatiable need” for vinyl records in Europe and the United States: “And this isn’t going to slow down,” predicts Page.
Music publishers increased their share of the global total to 37.3%. Part of the reason publishers outperformed labels could be from what Page calls a “lag effect,” where labels tend to license to new streaming platforms before publishers. Another potential reason for publishers’ improvement is early accruals from the royalty increase in the United States from the Copyright Royalty Board, “a decision that will fully crystalize when the 2023 figures are calculated,” writes Page.
Publishers’ direct revenue rose from $3.7 billion to $4.1 billion but accounted for a smaller 9.9% share of total revenue, down from 10.2% in 2021. Songwriter CMOs rebounded with a 27.5% share of total revenue worth $11.4 billion, after taking a 25.3% share worth $9.2 billion in 2021 and a 27.2% share worth $8.5 billion in 2020. Page attributes CMOs’ improvement to music’s return to the live space after the pandemic, which drives gains in public performance royalties. Also, “inflation is embedded into blanket licenses,” wrote Page, meaning higher prices increase collections when the royalties are calculated as a percentage of revenue. Finally, as CISAC’s Gadi Oron has noted, CMOs have improved collections through a combination of content identification and improved licensing terms.
There’s a chance Page’s $41.5 billion figure is low. The estimate incorporates global recording revenue tallied by the trade group IFPI. But as Page notes in his report, MIDiA Research “has arguably done more research” on segments undercounted by IFPI’s various members, including the do-it-yourself artists who account for 10% of global streams, indie labels and the South Korean market. MIDiA Research put the value of global recorded music in 2022 at $18.9 billion, about 8% greater than the IFPI’s figure of $17.5 billion.
If MIDiA’s methodology is correct, says Page, the value of global copyright is closer to $45 billion than $40 billion and could be $50 billion sooner than people expect. When the music business hits that threshold, it will have doubled since Page’s 2014 report put the global value of music copyright at $25 billion.
Shares of SiriusXM gained 20.1% this week following the company’s third-quarter earnings on Tuesday (Oct. 31) that showed the satellite radio company, which also owns music streamer Pandora, was more profitable despite flat revenue and small losses of self-pay satellite and Pandora subscribers.
Shares of SiriusXM rose to $4.95, its highest closing price since Aug. 3. With the help of a 155,000 increase in promotional subscribers, the company’s total satellite radio subscribers were flat at 34 million. Revenue was unchanged from a year ago at $2.27 billion, but SiriusXM’s net profit grew nearly 50% to $363 million.
Investors will be watching intently next Wednesday (Nov. 8) when SiriusXM unveils a new streaming app as well as in-car innovations and new programming. “This leading content and upcoming product upgrade will be paired with our unmatched business model, which we expect to continue delivering significant and growing free cash flow in the years ahead,” said CEO Jennifer Witz during Tuesday’s earnings call.
The 20-stock Billboard Global Music Index gained 6.9% to 1,394.40, its best week-on-week performance since the index gained 7% in the week ended Nov. 25, 2022. Last week, the index almost fell into correction territory — a 10% decline from its recent high — but this week’s gains reduced the deficit to the high of 1,447.32 (week ended July 21) to 3.7%.
Eighteen of the index’s 20 stocks finished the week in positive territory. Of the two stocks to decline this week, Hipgnosis Songs Fund dropped only 0.8% while Abu Dhabi-based Anghami fell 15.9%.
Led by SiriusXM, the index’s three radio stocks had an average weekly gain of 13.3%. iHeartRadio, the largest radio company in the United States, gained 16.8% to $2.50. The company will report quarterly earnings on Tuesday (Nov. 9). Cumulus Media shares improved 2.9% to $4.91. Additionally, the index’s four live music companies gained an average of 8%, while record labels and publishers as well as streaming companies had average one-week gains of 3.8%.
Round Hill Music Royalty Fund was removed from the index this week after the completion of its $468 million acquisition by Concord. At the acquisition price of $1.15 per share, the London-listed Round Hill Music Royalty Fund gave investors a 47.4% year-to-date return.
Stocks everywhere enjoyed a strong week as the U.S. Federal Reserve left interest rates unchanged on Wednesday, leading investors to predict the central bank would forgo further rate hikes. In the United States, the Nasdaq composite rose 5.9% and the S&P 500 gained 5.2%. In the United Kingdom, the FTSE 100 rose 1.7%. South Korea’s KOSPI composite index gained 2.8%.
Live Nation shares rose 10.9% after the company’s third-quarter results on Thursday showed that the company hit all-time records in revenue and adjusted operating income (AOI). Total revenue reached $8.2 billion, up 32% year over year, and AOI rose 35% to $836 million. Ticketmaster revenue grew 57% to $833 million in the third quarter. Through mid-October, Ticketmaster sold 140 million tickets to Live Nation events — more than the 121 million sold in full-year 2022.
Even though consumers are feeling pinched by inflation, demand continues to be strong across venue sizes and geographies, according to president/CEO Michael Rapino. “I have weekly booking calls with the over 40 presidents around the world and we talk about from clubs up to stadiums and festivals,” Rapino said during Thursday’s earnings call. “We have not seen anything taper off in any sense.”
Other stocks surpassing a 10% gain were Chinese music streamer Cloud Music, which gained 12.7% to 96.35 HKD ($12.31), and New York-based Reservoir Media, which gained 12.1% to $5.95. Reservoir Media will release its latest quarterly results on Tuesday (Nov. 7).