Business News
Page: 87
Gustavo Lopez has launched a new “full service” multimedia entertainment company, Globalatino Music Partners, Billboard can announce. The venture will offer label services, artist management, publishing, distribution and touring, according to a press release.
Globalatino launches with in-house new record label, ReLo-Co Music, in association with Alejandro Reglero (previously Saban Music Latin‘s executive vp/GM), GUAU Talent Connect, a division in the company that will specialize in brand partnerships, led by Augusto Mendoza, and Strat-Viz, which will oversee strategic marketing and content creation with Rodolfo Rodriguez at the head of that division.
Lopez has also entered partnerships with TuStreams and Warner Music Latina for distribution and marketing strategies for selected artists. And he acquired a “majority” stake in Cigol Music, the label home to Colombian hitmaker Blessd.
Trending on Billboard
“Over the years, I’ve been privileged to work with some of the most important artists in Latin music, enjoying tremendous success in diverse genres from reggaetón to música mexicana. Everything I’ve learned has now come together at Globalatino,” Lopez said in a statement. “Most recently working alongside entertainment visionary, Haim Saban, added to my lifelong commitment to artist development. At Globalatino we’re 100% dedicated to superserving our artists.”
The announcement comes three months after Virgin Music Group acquired Saban Music Latin’s catalog. For five years, Lopez served as the company’s CEO since Saban Music Group launched in 2019 by entertainment mogul Haim Saban, and later oversaw the creation of Saban Music Latin in 2022.
Prior to joining Saban, Lopez was the longtime GM and executive vp of Universal Music Latin, where he launched Latin urban label Machete Music, home to artists like Wisin & Yandel and Don Omar, and also ran Universal Music Latin Entertainment’s regional Mexican labels, Fonovisa and Disa. After leaving Universal in 2017, he launched indie music company Talento Uno, which was acquired by Saban.
About Globalatino, Lopez added, “We have the executive team, the expertise, the relationships, and the funding to help artists accomplish their dreams.”
Victoria Oakley is the new CEO of IFPI.Oakley will join the international labels trade association this June from global strategic communications and advocacy consultancy Portland, where she currently serves as CEO.
Explore
Explore
See latest videos, charts and news
See latest videos, charts and news
The incoming chief executive has deep, international experience, having logged almost two decades in the British Diplomatic Service, with roles in London, Paris, Brussels, Washington D.C. and the Eastern Caribbean, where she was High Commissioner until 2016.
Later, she spent three years at Portland then joined Google as global public policy director. Oakley returned to Portland in 2022 in the role as CEO, leading a 300-strong team of strategic communications and public affairs professionals across London, Doha, Singapore, Nairobi, Paris, Berlin and Brussels.In her new leadership role, Oakley will coordinate with the Federation’s national group network as it continues its work in promoting and advocating for the value of recorded music and the rights of its 8,000 record company members, including the three major labels.
“I’m pleased that Vikki is joining the IFPI during this dynamic time for the music industry,” comments Sir Lucian Grainge, chairman and CEO, Universal Music Group. “Vikki brings the right skills and experience to help the global industry tackle important issues and opportunities collaboratively and with a fresh vision. We look forward to working with her.”
Trending on Billboard
Oakley, adds Robert Kyncl, CEO, Warner Music Group, “is a great choice to help lead the global campaign for the rights of artists and those who back them, and I’m excited she’s bringing her expertise and experience to IFPI.”
Says Rob Stringer, chairman, Sony Music Group: “Her decades of expertise combined with strong relationships around the world, will help us ensure music is recognized for the value it deserves and artists are always put first.”Oakley succeeds Frances Moore, who retired in December 2023 after leading the trade body since 2010.
Music stocks suffered their biggest one-week decline in nearly a year as inflation fears gripped the markets. In the U.S., the annualized inflation rate rose to 3.5% in March from 3.2% in February, the Department of Labor’s Bureau of Labor Statistics announced Wednesday. That drew concerns the U.S. Federal Reserve would alter its plan to cut interest rates in June. Combined with rising oil prices and weaker-than-expected earnings from banking giants JPMorganChase and Wells Fargo, there wasn’t much good news for investors.
Fourteen of the 20 companies in the Billboard Global Music Index lost value this week. The index fell 3.2% to 1,782.67, the largest one-week drop since it lost 4.2% for the week ended July 28, 2023. Still, the Billboard Global Music Index is up 16.2% year to date and has increased 43% in the last 12 months.
Trending on Billboard
Most major stock indexes lost ground this week. In the U.S., the S&P 500 dropped 1.6% to 5,123.41 and the Nasdaq composite fell 0.5% to 16,175.09. South Korea’s KOSPI composite index declined 1.2% to 2,681.82. China’s Shanghai Composite Index lost 1.6% to 3,019.47. The outlier was the U.K.’s FTSE 100, which improved 1.1% to 7,995.58.
Among music stocks, iHeartMedia was the biggest winner of the week after rising 6.3% to $2.18. The improvement came despite a lack of market-moving news or regulatory filing from the radio giant. In fact, the main reason iHeartMedia has been in the news lately has been less than flattering. In March, Forbes reported that iHeartMedia had paid ad revenue from Sen. Ted Cruz’s podcast, Verdict, to his political action committee (PAC). That led BP America to request that iHeartMedia not place its ads on podcasts that funnel ad revenue to PACs. Two campaign watchdogs, Campaign Legal Center and End Citizens United, allege that Cruz violated federal law and on Tuesday (April 9) formally asked the Federal Election Commission to investigate.
Hipgnosis Songs Fund, the London-listed company that invests in music rights, improved 5.7% to 74 pence ($0.92). HSF has gained 7.2% since the company’s board of directors released a damning due diligence report on March 28. Conducted by Shot Tower Capital, the report claimed the fund’s investment manager, Hipgnosis Song Management, overstated revenue and misled investors about the control it had over investments in its portfolio. The board will release its conclusions to the due diligence report by April 26 and will seek shareholder approval for its proposals at a not-yet-announced extraordinary general meeting.
Sphere Entertainment dropped 10.7% to $41.80 this week. On Monday, after Seaport Global downgraded Sphere Entertainment to neutral from a buy rating on growth concerns, the company’s share price dropped 3.8% to $45.00. The stock dropped another 5.3% on Friday despite no news or regulatory filings. U2’s 40-show residency wrapped up on Mar. 2, and the band led Billboard’s Boxscore in February with a $56.5 million ross from 10 concerts. Rock band Phish will perform a four-show run at the Sphere in Las Vegas from April 18-21.
Believe shares dropped 9.8% to 14.88 euros ($15.88) after Warner Music Group announced on Sunday it would not bid on the Paris-listed company. Back on Mar. 7, WMG revealed its interest in acquiring Believe and stated it would pay “at least” 17 euros per share, an amount well above the 15.00 euros ($16.01) per share offer by a CEO-led consortium. Investors immediately bet WMG’s effort would prevail by bidding up Believe shares to nearly 17 euros. From Mar. 28 to April 2, Believe was trading as high as $16.92 and closed above 16.50 euros from Mar. 25 to April 5. With WMG out of the picture, the consortium’s initial offer of 15 euros per share is the new ceiling.
The index’s most valuable companies had relatively mild declines. Universal Music Group fell 2.0% to 27.04 euros ($28.85) and Spotify dropped 3.2% to $300.53. Live Nation lost 2.4% to $100.99. CTS Eventim fell 3.8% to 82.00 euros ($87.50). HYBE declined 4.9% to 213,000 won ($154.28). After deciding not to pursue Believe, Warner Music Group bucked the trend by rising 0.3% to $33.44.
Quarterly earnings reports will give stocks a chance to rebound in the coming weeks. Of the release dates announced thus far, Spotify is first out of the gate on April 23 followed by Believe on April 24, Deezer on April 29, SiriusXM on April 30, Universal Music Group on May 2 and Warner Music Group on May 9.
Round Hill Music LP said Friday that producer and former American Idol judge Randy Jackson and management executive John Greenberg have joined the company as advisors.
Round Hill hopes the addition of Jackson and Greenberg will help it connect with a broader community of artists and further its ability “to source and secure early access to premium music rights investment deals in a competitive environment for high quality assets,” according to a press release.
Founded by Josh Gruss in 2010, Round Hill Music is a privately held fund that manages a portfolio of song rights worth around $900 million, according to the company. Concord acquired Round Hill’s publicly traded business, Round Hill Music Royalty Fund, last September in a deal originally valued at $469 million.
Trending on Billboard
Gruss said Jackson and Greenberg’s partnership will create business opportunities by reinforcing the company’s relationships with artists and songwriters.
“As one of the largest independent music rights holders in the world, we have big ambitions to grow our exposure to high quality, iconic music that stands the test of time and to continue to nurture the creator community through our wider group, which includes record labels, neighboring rights specialists and sync experts,” Gruss said in a statement. “We are looking forward to working with Randy and John to accelerate those ambitions and to continue unlocking music’s incredible potential on behalf of all our artists, writers and investors.”
A longtime musician and former A&R rep at Columbia Records and MCA Records, Jackson was an executive producer on the MTV series America’s Best Dance Crew as well as one of the original judges on American Idol.
Throughout his muti-decade career, Jackson has collaborated with Smokey Robinson, Whitney Houston, Aretha Franklin and performed with stars like Mariah Carey, Bob Dylan, Billy Joel, Bon Jovi, Keith Richards, Journey, Carlos Santana, Bruce Springsteen, Jerry Garcia and Bob Weir. According to the release, Jackson has earned more than 1,000 gold and platinum plaques, with over 200 million albums sold worldwide.
Greenberg is COO/founder of management company Shorebreak International. Since 1988, he has worked with artists including Steven Tyler, Duran Duran’s John Taylor, Mötley Crue’s John Corabi, Duff McKagan, Nickelback and Ratt.
As growth slows in large, developed markets, music companies are looking elsewhere for opportunities. Increasingly, companies are targeting superfans, the most fervent and high-spending of music consumers, to provide those revenue gains.
The Pareto Principle says that roughly 20% of customers provide 80% of a company’s revenue. Whatever the breakdown, music companies are expecting more from a small subset of big spenders. Concert promoter Live Nation wants premium offerings such as VIP boxes to increase to 30% to 35% of its amphitheater business from the current 9%, president/CEO Michael Rapino told investors during the company’s Feb. 22 earnings call. Earlier this year, the heads of Universal Music Group and Warner Music Group revealed their desire to offer new types of services and products for the most fervent of music fans.
Coming out of the pandemic, people — especially younger consumers — spent money “as a way to make up for lost time” and, later, to cope with stress, Intuit Credit Karma, a financial management platform, explained. Consulting firm McKinsey & Company calls this behavior “selective splurging.” According to a November 2023 global survey by McKinsey, 20% of all consumers planned to splurge on out-of-home entertainment such as concerts — less than restaurants (38%), apparel (34%) and travel (28%).
Trending on Billboard
More than two in five Gen Z consumers (42%) spent more on live concerts than before the pandemic, according to a September 2023 survey by Qualtrics on behalf of Intuit Credit Karma. That was well above Millennials (34%), Gen X (19%) and Baby Boomers (11%). Last year, music fans paid high prices to see the two biggest cultural events: tours by Taylor Swift and Beyonce. Fittingly, Swift’s The Eras Tour was sponsored by Capital One, and some fans signed up for their first credit card as a result.
A couple of years after pandemic restrictions ended, though, consumers have a spending hangover and seem less willing to reach deeper into their pockets. Ample data suggest that consumers are increasingly stressed from high prices — U.S. inflation rose to 3.5% in March from 3.2% in February — and the ending of pandemic-era forbearances that allowed people to put off payments on their mortgages and student loans.
Splurging has given way to focusing on the basics. Consumers intend to spend more than usual on essentials such as gasoline, groceries, produce and pet food, as well as health and fitness, in the next three months, according to a McKinsey survey in February. In contrast, consumers intend to spend less on discretionary items: entertainment, domestic flights, hotel and resort stays, home improvement and alcoholic beverages. Luxuries such as jewelry, furniture and home decorations have the biggest gap between spenders and savers.
Rising debt is one reason consumers are pulling back on spending. In the United States, the ratio of credit cards and auto loans becoming past due by 90 days or more exceeds pre-pandemic levels. Delinquency rates are especially bad for younger consumers who are most likely to spend money on concerts and entertainment. In the fourth quarter of 2023, the Gen Z delinquency transition rate — transitioning into delinquency — reached 11.86% compared to 8.53% in the fourth quarter of 2021, according to the New York Federal Reserve. Millennials’ delinquency transition rate rose to 9.56% from 6.53% two years earlier. Gen X and Baby Boomers’ delinquencies are also trending up but faring better (7.01% and 4.78%, respectively).
For many young consumers who have taken on debt, 2024 will be a year to pull back. A third of Millennials and Gen Z say they have a shopping addiction, according to a survey by Qualtrics for Intuit Credit Karma conducted in February and March of this year. About three-quarters of Millennials and Gen Z surveyed by Qualtrics say they plan to change how they spend money. A full 20% of them said 2024 will be a “no buy year,” a recent trend where people swear off spending except to replace items, and 56% said they will have a “low buy year,” meaning they will reduce shopping significantly.
Credit card debt is nothing new, though, and some experts believe consumers can take it in stride. Although credit card balances increased in 2023, consumers “largely still have the wherewithal to repay their existing obligations,” according to credit monitoring service Experian. In fact, the average FICO credit score improved to 715 in 2023 from 714 in 2022 despite the average credit card balance increasing 10%. In February, credit ratings agency Fitch revised its forecast for U.S. real (adjusted for inflation) consumer spending to 1.3% from 0.6%, largely on the belief that consumers will draw down savings throughout the year.
High-priced concert tickets and experiences might be out of the question, but superfan spending is also more mundane. Artists routinely put out new albums with multiple CD and vinyl LP variants knowing that their most hardcore fans consider them to be collectibles (and purchase them to help their favorite artists top the charts). Swift’s 2022 album Midnights had 20 different versions across all physical formats. Those album sales accounted for 1.14 million of the 1.58 million units sold in its first week of release. At $20 or $30 apiece, supporting a favorite artist doesn’t require going into debt.
Music isn’t a necessity like food and shelter, but it’s proved to be both recession-proof and pandemic-proof. Regardless of the rises and falls in consumer sentiment, inflation rates and unemployment trends, people will spend money on music. But the broader trends around consumer spending may mean that the growth the music business hopes to reap from those superfans may not be as lucrative, at least for now, as they may have hoped.
Country music is having a major moment in Canada, and the CCMA Awards is getting one of the genre’s biggest stars. Thomas Rhett will host the Canadian Country Music Association’s annual award ceremony on Sept. 14, 2024 at Rogers Place in Edmonton. And the American star will be joined by a homegrown star in the making, Alberta singer and actor MacKenzie Porter.
This year’s awards take place during a big time in Canadian country, with major festivals popping up across the country and new bridges being made with Nashville.
In addition to topping the Billboard Country Airplay chart 20 times, Rhett also has 16 No. 1 hits on Canadian country radio, so he’s a natural choice to cross the border to host Canada’s biggest country music awards.
Trending on Billboard
“The way Canadian fans have embraced me throughout my career is something I never take for granted,” Rhett tells Billboard Canada. “Every time we come there, we are blown away by the energy they bring and the love they have for country music.”
Travelling between Canada and Nashville, Porter is also making a big splash on both sides of the border. With 900 million streams already, she’s got a new album, Nobody’s Born With a Broken Heart, coming out on April 26 on Big Loud Records.
“I personally think this year is going to be the best show yet,” she continues. “Canadian country music has never been better, and having the show in Alberta, home of country music, feels very fitting!”
CCMA president Amy Jeninga says they carefully selected the hosts “based on their significant contributions to the Canadian country music community,” with Rhett’s major Canadian fanbase playing “a crucial role in our country music ecosystem.” Plus, two of his band members are Canadian musicians, she notes.
Porter, meanwhile, is a great representative of Alberta’s country music scene, she says. She’s also a woman making waves in a genre that is typically overrepresented by male artists.
Nominations and programming have yet to be announced, but the CCMAs will get a lead-in from Country Music Week 2024, which kicks off in Edmonton on Wednesday, September 11.
The CCMAs will air on Saturday, September 14 at 8 p.m. ET on CTV, CTV.ca and the CTV app. – Richard Trapunski
Canadian Songwriter Tobias Jesso Jr. Earns SOCAN Award for Dua Lipa Hit
Tobias Jesso Jr. made a small splash as a solo recording artist, including a spot on the 2015 Polaris Music Prize shortlist for his album Goon, but he’s spent close to the last decade focused on writing for others. He’s seen major international success, including winning the first ever Grammy for Songwriter of the Year.
Jesso Jr. now has a huge repertoire of hits, contributed to songs by Adele, Miley Cyrus, Harry Styles, XXXTENTACION and more. Last year, he sold his goldmine catalog to Hipgnosis Song Management.
Now, he’s getting some recognition in his home country again, specifically from Canadian performance rights and royalty-collecting organization SOCAN. On April 5 in L.A., Jesso received a SOCAN No. 1 Song Award, for co-writing Dua Lipa’s “Houdini.” This smash hit topped the Billboard Hot Dance/Electronic Songs chart for 14 weeks, starting in Nov. 2023, and it has earned more than 380 million plays on Spotify, and more than 104 million views on YouTube. – David Farrell & Richard Trapunski
More Than 10% of the Most-Streamed Songs in Canada are by Canadian Artists
According to a new report, of the 1,000 most-streamed artists in Canada, 113 are Canadian. Laying a Foundation for Success, published by Music Canada — the association representing major music labels in Canada — takes a look at Canadian streaming data to determine whether Canadian artists are getting heard. Studying the 10,000 most popular artists in Canada in 2022, economist Will Page finds that 889 were Canadian. Of the 10,000 most popular songs, 1,013 were Canadian.
At the upper echelons of popularity, the trend holds: roughly 10% of the thousand most-streamed artists and songs were Canadian. Canadian artists like Tate McRae and Charlotte Cardin outranked popular American stars like Selena Gomez on that list. Other Canadians amongst the 1,000 most-streamed artists include country singer Josh Ross, Punjabi-Canadian artist Karan Aujla, pianist Alexandra Stréliski and singer Lauren Spencer Smith.
“In a world where fans can listen to any artist, from any country in the world, and with nearly every recorded song at their fingertips, listeners are choosing Canadian music,” says Music Canada CEO Patrick Rogers.
Of the 889 Canadian artists amongst the top 10,000, roughly 75% perform in English, while 20% perform in French. Page notes that the third most-popular language segment is Punjabi music, which is also the fastest-growing music language in the country, and accounts for 3% of the 889 musicians.
Recorded music revenues in Canada have doubled since 2014, when Spotify launched, and are now as high as they were before the launch of iTunes in 2004. Page notes that according to consultancy MIDIA, Canadian recorded music revenues could soon hit a billion dollars for the first time.
The government is preparing to implement Bill C-11, the Online Streaming Act, which became law last year, and Page’s report recommends some policy changes. One is the “Mandate, Don’t Dictate” approach, which would entail moderate government interventions such as requirements that Canadian artists be indexed highly on playlists, or that streaming services pay into the Canadian music industry in the same way as radio broadcasters.
Ultimately, for every one stream within Canada, Page writes, Canadian artists are getting roughly 10 abroad. Any government music strategy should focus on helping Canadian music thrive on the international stage, he says. – Rosie Long Decter
Last Week In Canada: Tegan and Sara Lead Campaign Against Anti-Trans Policies
It’s time for another spindle around the Executive Turntable, Billboard’s comprehensive(ish) compendium of promotions, hirings, exits and firings — and all things in between — across music.
Warner Music Group has big plans for the sonically rich markets of Bangladesh, Nepal, Pakistan and Sri Lanka — and is putting longtime Warner Music India managing director Jay Mehta in charge of those efforts. The launch of Warner Music South Asia is the label’s endorsement of the vibrant traditions and significant potential of the music markets across the region, home to more than 400 million people, plus the dynamic diasporas around the globe supporting local artists. The new affiliate will operate out of Dubai and be headed by Mehta, who adds managing director of Warner Music South Asia to his business card, but will continue as MD in India and work closely with Alfonso Perez Soto, WMG’s president of emerging markets. Warner isn’t exactly starting from scratch in the region, having announced a partnership with Pakistani music production company Giraffe earlier this year, and acquiring a majority chunk of Sri Lankan digital music firm Divo in 2023. WMG and Giraffe’s first project is season 15 of the popular music performance series Coke Studio in Pakistan. “I’m so delighted to launch Warner Music in Bangladesh, Nepal, Pakistan, Sri Lanka and other SAARC territories,” said Mehta. “These are exciting markets with brilliant artists who historically haven’t had the opportunity of plugging into the global music industry. That’s all set to change.”
Currently based in Mumbai, Mehta has racked up the wins since launching Warner Music India in March 2020, juuust before the pandemic ground the globe to a halt. Within the first six months of WMI’s existence, the company executed a licensing deal with Mumbai-based label Tips Music and quickly closed a series of partnership deals to distribute increasingly popular Indian regional-language music and founded Maati, a label devoted to Indian folk music. In 2022, WMI signed an exclusive partnership with local label Jjust Music in an effort to boost its share of the Bollywood music market. Last year, WMI teamed with Warner Music Canada to launch 91 NORTH RECORDS to boost artists of South Asian heritage. And earlier this year, WMI expanded its partnership with Global Music Junction (GMJ), the music and entertainment subsidiary of JetSynthesys.
Trending on Billboard
“This is a major moment for Warner Music,” said Simon Robson, president of international, recorded music. “We’re now open for business in a series of countries that have rich musical traditions and strong global connections through their extensive diasporas. We’re already working on exciting projects in Pakistan and other territories and there’s much more to come.”
Meanwhile…
SESAC‘s music services division is getting built out with a new hire and two promotions. This week, the growing team welcomed Andy Bodkin as president of international, where he’ll center his focus on growing the services division — with a portfolio that includes HFA, AudioSalad and Audiam — on a global scale. Bodkin was previously group CEO at music publisher Out of the Ark, but for the bulk of his career (to the tune of 18 years) he served as an executive at Christian Copyright Licensing International (CCLI). Additionally, SESAC promoted Rose Cook to chief operating officer of music services, where she’ll work with the company’s entire portfolio, which also includes Mint and Rumblefish, to drive efficiencies in licensing, royalty collection and admin services. Previously, Cook served as the co-head of licensing at SESAC Performing Rights before her promotion to svp of operations of SESAC Music Group in 2022. She reports to SMG COO Malcolm Hawker. Finally, Monica Hertz is promoted to senior director of operations, where she’ll report to Cook and focus her efforts on the rollout of the company’s shared services platform. She joined SESAC in 2017.
Warner Chappell Music promoted Jenni Pfaff to executive vp of strategy, integration and operations. In her elevated role, Pfaff will continue to lead people strategy at the publisher, plus annual goal-setting initiatives and WCM’s new data-driven, songwriter-focused Business Intelligence division. A WCMer since 2019, Pfaff joined as people strategy leader before a promotion to senior vp. In 2021, she added head of global strategic integration and operations to her title. Prior to WCM, Pfaff operated her own HR firm (pfaff HR) and logged 17 years at PwC, Activision Blizzard, Northrop Grumman and other companies. The 2022 Billboard Women in Music honoree continues to report to CEO Guy Moot and COO Carianne Marshall. “Jenni has been on this journey with us from the beginning, helping transform how we operate as a global team so we can continue to do great work for our songwriters and their incredible songs,” said Moot and Marshall. “She is deeply committed to Warner Chappell and has spearheaded initiatives that allow us to be more collaborative. Technology, business, and data go hand-in-hand, and the work that we’re doing with Robert [Kyncl] and team will help shape the future of music publishing.”
BMI veteran Erin Crawford was promoted to assistant vp of affiliate customer service experience, putting her at the fore of the performance rights organization’s new customer service initiative that includes a call center and hotline (844-BMI-4255). The call center team should be full staffed by June and will include bilingual agents and expanded hours, the PRO said. Crawford joined BMI in 2020 as executive director of distribution & administration services, where she led teams responsible for writer and publisher affiliations and online services support. Prior to BMI, she clocked 18 years at The Nielsen Company, rising to svp and general manager of Nielsen Music — an important position managing relationships with Billboard, labels, publishers, promoters and other music companies.
French music conference and festival MaMA said co-founder Daniel Colling has decided to retire and will transfer ownership of the 15-year-old event to co-founder Fernando Ladeiro-Marques. Joining him for the 2024 edition, being held in Paris Oct. 16-18, will be Emmanuel Legrand as the coordinator of MaMA conference, Emily Gonneau as curator, and Flavien Appavou and Elise Yacoub as coordinators. “We will continue to honour the legacy of MaMA as a key industry gathering,” said Ladeiro-Marques. “We also want it to be the leading forum to explore the future of our industry and the place where we will invent tomorrow’s music business. In addition, MaMA festival will continue to feature up-and-coming artists at a time when they need, more than ever before, windows of exposure.”
BOARD SHORTS: Round Hill Music added former American Idol judge Randy Jackson and management executive John Greenberg as advisors. In the roles, Jackson and Greenberg will support Round Hill’s executive team in deal sourcing and artist relations … AI Fund managing director Andrew Ng replaced former MTV CEO Judy McGrath on Amazon‘s board of directors … The National Museum of African American Music (NMAAM) in Nashville elected Brian Sexton and Keri Floyd Kelly to its board of directors. They’ll both serve three-year terms.
RoEx, the tech startup behind AI-powered mixing platform Automix, hired Jason Reed as head of growth and operations. Reed’ll focus on growing RoEx’s audio production tools, plus building B2B partnerships around the company’s audio engine API, Tonn. Reed arrives from Roundhouse Trust, where he was senior product owner. His past positions include head of technology at Domino, global head of marketing at FUGA and head of digital at Ministry of Sound Recordings. Reed is based in London and reports to RoEx chief David Ronan.
ICYMI:
Silvia Montello
CAA appointed nine managing directors and changed up its agency board membership … Shakeup at UK indie music trade body AIM as CEO Silvia Montello abruptly resigned. COO Gee Davy has stepped in as interim chief and also the new role of chief policy officer … and the Recording Academy promoted Adam Roth to evp of global partnerships & business development.
Last Week’s Turntable: Warner Chappell In Sync With Zync Veteran
Creative Artists Agency has appointed nine managing directors and changed up its agency board membership.
The new managing directors include Rob Light, Howard Nuchow, Joe Cohen, Michael Levine, Joel Lubin, Maha Dakhil, Chris Silbermann, Tiffany Ward and Paul Danforth. CFO Carol Sawdye and chief legal officer Hilary Krane will continue in their roles.
The managing directors will work alongside CAA co-chairman and CEO Bryan Lourd, co-chairmen Kevin Huvane and Richard Lovett and president Jim Burtson on varying strategic business and operational matters.
The agency board will work with the CAA co-chairmen and president “on ensuring the continued strength of the company’s highly regarded culture of service, collaboration, and opportunity, built for personal client service,” including dealmaking, training and development and innovation. The move marks the latest rework for the agency since its sale to Artémis, the investment firm controlled by François-Henri Pinault, last September.
Trending on Billboard
Members of the agency board include Katie Anderson, Emma Banks, Lorrie Bartlett, Matt Blake, Alan Braun, Austin Brown, William Brown, Libby Bush, Ben Dey, Jaime Feld, John Garvey, Liz Gray, Sloan Harris, Jeff Krones, Franklin Latt, Brandon Lawrence, Michelle Kydd Lee, Joe Machota, Lisa Joseph Metelus, Matthew O’Donohoe, Praveen Pandian, Dan Rabinow, Rachel Rusch, Roeg Sutherland, Nick Thimm, Natalie Tran and Ida Ziniti.
“Today’s announcement highlights not only the strength, momentum, breadth and depth of today’s CAA, but the incredibly exciting promise of our future, with two new teams of exceptionally talented, proven leaders, committed to serving our clients and colleagues,” said Lourd. “We have always been clear in our mission – to deliver world-class personal service to world-class clients. With our expanded corporate leadership structure and an entire company of the world’s best dealmakers, creative thinkers and career representatives, CAA has never been better positioned to help clients capture the best opportunities and navigate the challenges of today’s media and sports industries.”
This article was originally published by The Hollywood Reporter.
For the past decade, on-demand streaming drove incredible gains in recorded music revenue, which climbed from $6.7 billion in 2014 to $17.1 billion last year in the U.S. alone. Now there’s only so much room for growth in the U.S. and Europe, and developing markets aren’t as predictable. But look, up in the sky, it’s a nerd, who could help an artist buy a plane, it’s SUPERFANS!
Basically, now that the music business takes in a modest amount of money from an enormous number of people, it needs to find ways to also capture much larger amounts of money from smaller numbers of more dedicated fans. A July 2023 Goldman Sachs report said there was a $4.2 billion “addressable market opportunity for superfan monetization,” and Billboard just reported on how this same excitement is sweeping labels — as well as some of the challenges they will face. Of course, this is just an MBA’s way of saying what most fans already know: They want to buy more from their favorite acts than access to their music on a streaming service. The question — besides who actually qualifies as a superfan! — is how to find them and what they want.
To get sense of what this business might look like, let’s look at the iconic group that pioneered one kind of superfan model, as well as newer stars that have turned a very different model into something of a science: the Grateful Dead and K-pop groups. Both are very popular — phenomenally so by some measures — but neither is exactly mainstream in the way that Taylor Swift or Beyoncé is. Their popularity is deeper than it is wide. Neither the Dead nor K-pop is for everyone — both tend to inspire either devotion or disdain — but the fans who like them tend to go all-in.
Trending on Billboard
Those fans help these acts overperform by different measures. The Dead only ever had one hit single, but the band had the highest-grossing tours in 1991 and 1993, partly thanks to hardcore Deadheads who saw multiple shows, and the 2023 Dead & Company tour grossed as much ($114.7 million) as the last BTS tour ($113.6 million), according to Billboard Boxscore. K-pop acts dominate the sales market. In 2023, K-pop acts had seven of the top-selling CDs in the U.S., three of the top-selling albums, and none of the top albums by total consumption, once streaming was included. On a relative basis compared to other acts, their fans buy more than they listen — a great business considering that many of those buyers probably listen to those albums on streaming services as well. (K-pop is far more popular internationally.)
Both the Dead and the K-pop groups essentially doubled-down on what they do well in order to super-serve their fans. The Dead built its reputation as an improvisational live act, the best in popular music, and it never completely captured that same magic in the studio. So after the group broke up in 1995, it started to release more live recordings, and a 2006 deal with Rhino led to increasingly-ambitious reissue projects — a 73-CD set of the 1972 European tour, a series of reissues available every quarter on a subscription-first basis, and an 80-CD set of one show from each year of the band’s 30-year career. Recently the group broke a record for having the most albums on the top 40 spots in the Billboard 200. This undercounts their business success, though, since some of the box sets Rhino releases sell for more than $100.
K-pop acts tend to focus on selling merchandise, and given the declining number of CD players, many young fans probably see CDs as more of a souvenir than a way to listen to music. K-pop is all about fandom — having it, displaying it, and in some cases arguing about it — so those acts tend to sell merchandise that appeals to a collector’s mentality. (I find it odd that some fans buy CDs in different colors, but I probably have a dozen live versions of the Grateful Dead’s “Dark Star,” and some people find that a bit much, too.) K-pop fans spend a considerable amount of money on merchandise — $24 a month, according to research from Luminate, which is 140% more than the average U.S. listener. From a financial perspective, K-pop acts are basically in the tchotchke business; BTS sells clothes, jewelry and even Uno cards. And while the Dead sells more than its share of merchandise, including “drinkware” and “home goods,” it has always really been a live band, in both art and business terms.
The music industry tends to see these business models as exceptions, since it’s dominated by labels that are very much in the recorded music business. But they might also offer inspiration on how to turn a star-level audience into a superstar-level career. (The Dead’s business, which is still overseen by Warner Music’s Rhino, also shows that many superfans don’t fade away — I saw a few concerts in 1991, and I plan to buy the next vinyl box set, too.) Charts change much faster than loyalties.
What can the rest of the business learn from these successes? Most important, that it’s both possible and potentially difficult to monetize superfans — they’re willing to spend money, but only on the right items; BTS live recordings might not do as well as an expanded clothing line. And that requires expertise. Rhino president Mark Pinkus works closely with the Dead, as does archivist Dave Lemieux. They choose the shows fans want to hear and know which to sell as part of the Dave’s Picks reissue series and which belong in box sets. K-pop fans are enthusiastic, but also demanding — they want to buy branded hoodies, but only if they’re designed the right way.
Selling streaming subscriptions to a mass audience requires executives who could focus on the mainstream. Getting part of that audience to spend twice that much money on a single act is certainly possible — but it takes a different skill entirely.
South Korean investment and management firm Beyond Music has acquired the music catalog of Puerto Rican reggaetón star Yandel, including his publishing interests and royalties, his share of performance royalties and neighboring rights royalties. The acquisition is a “first of its kind” for an Asian music company that’s acquiring a Latin artist’s catalog directly, according to […]