Business News
Page: 9
“Your record collection defines who you are; your book collection defines who you want to be.” — Will Page
When e-books were first introduced in 2007 (Amazon’s Kindle followed by Barnes & Noble’s Nook in 2009, and Apple’s iPad in 2010), people were loudly ringing the death knell for printed books. Digital devices had convenience and portability, and digital books could be instantly downloaded and consumed. Why would anyone choose to carry around or deal with a cumbersome printed book, or go to a bookstore, or have it delivered days later by Amazon, when 200 books could be held on a lightweight digital device, such as the original 1st Generation Kindle, and read immediately?
With the added decline of CDs and DVDs, the dominoes quickly fell; the 642-store Borders chain filed for bankruptcy in 2011, and Barnes & Noble closed its flagship store in early 2014 and separated out its Nook division. By 2018, Barnes & Noble had closed 400 stores.
Fast forward to 2023, when Barnes & Noble opened 30 new stores, and to 2024, when it opened 57 new stores (more than the total it opened between 2009 and 2019). It recently announced it would be opening an additional 60 stores in 2025.
Trending on Billboard
Incredibly, physical books now outsell digital books 4 to 1. What changed?
It seems that even younger readers have come to prefer the tactile experience of holding a physical book and being able to easily navigate through pages, and see an advantage in retaining information and focusing when reading on paper rather than on digital screens. Kids and teenagers now gather at bookstores after school, as they have come to see them as safe spaces, and regularly show off their books on BookTok. What lessons can the music business learn from what happened with the book business?
Let’s look at the arc of recorded music. Music formats went from vinyl to 8-track and cassette to DAT and CD. With the introduction of digital file sharing and downloads with Napster in 1999, and streaming music starting with Rhapsody in 2001 and then Spotify in 2009, it seemed that physical records were destined for the wastebin of history (and like so many others, I foolishly gave away or sold for peanuts my vinyl and CD collections). Digital music streaming posed the question of why anyone would need to “own” music when it could be listened to immediately on demand from a limitless library of virtually all music ever recorded, literally at one’s fingertips, from any location.
The record business followed a pattern similar to that of the book business. Major labels sold their vinyl pressing plants and let go of their manufacturing employees, and many of the pressing machines were sold for scrap (Bertelsmann alone reportedly scrapped 150 machines). In 2006, record store chain Tower Records closed all of its 89 U.S. stores and filed for bankruptcy, as did Sam Goody (which at one point had approximately 800 U.S. locations).
Streaming took over completely once the industry fully embraced it, and it now represents about 90% of all music consumption.
Just like printed books, vinyl albums have, incredibly, made an enormous comeback, with sales increasing for 18 straight years and representing U.S. sales of over $1.4 billion in 2024 (and predicted to be over $3.5 billion by 2033). What’s the throughline?
Simply put, human beings are built to socialize and interact with each other and “things” in person in real life, not online — and it’s finally catching up with us. People desperately need the slowed-down, tactile interactions that have been largely absent, particularly amongst Gen Z, who have grown up predominantly in the fast-moving digital world. Although there is clearly enormous benefit to people connecting and interacting globally via the web and social media, there are also significant downsides: isolation, echo chambers, addictions, social comparisons, loneliness, depression, self-harm and even suicide have risen significantly in the digital age (as have mass shootings). Are physical locations the antidote?
Bookstores and record stores are part of a breed of what are called “third spaces”, a term originally created in the 1980s by sociologist Ray Oldenburg. Third spaces refer to “a physical location other than work or home where there’s little to or no financial barrier to entry and where conversation is the primary activity.” As Barnes & Noble stated in its recent press release, “Our stores have become popular social spots.”
In a 2022 article in The Atlantic, Allie Conti described third spaces as “physical spaces for serendipitous, productivity-free conversation” which “incentivize lingering”, where one can learn “the art of hanging out,” “mingle and make small talk with strangers” and where there is always “the possibility of a wildly unexpected spontaneous encounter.”
However, with people frequently spending their leisure time in solitude in front of their personal screens at home, consuming digital media (movie theater attendance is on the decline as well), “the simple act of spending time with new people can be an unnecessarily complex challenge.” Young people will have to learn new skills and flex new muscles for third spaces to thrive. For example, according to one study, almost half of men aged 18-25 have never approached a woman in person to ask for a date. Kathy Giuffre, a professor at Colorado College, says “socializing is a learned skill,” and “a world made up of atomized, physically isolated people is a world without a true shared reality — which is a recipe for civic disengagement, misinformation, and perhaps even political extremism.”
Bookstores and record stores also offer a way to be around like-minded people in real life who have similar interests, creating the possibility of forming new bonds. Many famous musicians credit their time working in record stores as having given them a musical education they wouldn’t have otherwise received (and in some cases, it’s where they actually met their future band members). Keith Richards, Axl Rose, Slash, Iggy Pop, Dave Grohl, Rivers Cuomo, Jeff Tweedy, Nels Cline, Aimee Mann, Nikki Sixx, Nelly Furtado and Peter Buck are but a few, and many have cited musical suggestions made by record store clerks as leading them to what became their favorite music. One could argue that record stores might actually be better “third places” than bookstores because music is always playing, clerks are knowledgeable music fans themselves, and customers are regularly chatting and interacting.
The rebirth and growth of record stores beyond Record Store Day has already begun. Rough Trade recently tripled the size of their store in New York City’s Rockefeller Center, and Waterloo Records was recently purchased from its founders by new owners who plan to relocate and expand it. Vinyl record and high-end equipment retailer Supervinyl in Los Angeles has become a “go-to” destination for music aficionados and artists alike. Innersleeves, a local independent record store in the Hamptons, recently doubled the size of its physical space and even added a small stage for musical performances. Tower Records has 80 locations in Japan. And “vinyl listening bars” built with expensive high-end sound systems and curated musical collections inspired by bars in Japan have been opening up in major cities across the U.S.
If U.S. record store chains return as well, they’d be smart to take a page out of Barnes & Noble’s playbook when it comes to the physical design of its stores. The manager of each B&N store is given a free hand (even including how the B&N logo appears) to make it feel more like a local independent bookstore with localized aesthetics rather than an invading mass chain that looks exactly the same in all locations. The goal is to “create a more intimate, community-focused, books-first experience.” And many of the new stores even have a B&N Café, which record stores could adopt to emulate the “coffee house” circuit where many musicians of the ‘60s and ‘70s launched their careers and built local fan bases. As streaming music levels off and consumer patterns change, vinyl records, record stores and listening bars as “third places” could be a boon to the physical record business — provided our industry truly embraces the big opportunity which is staring it in the face (“AlbumTok,” anyone)?
Fred Goldring is an entrepreneur, entertainment lawyer and co-founder of Pressing Business, a vinyl record and CD manufacturer, and record labels Flatiron Recordings and Label 51.
It’s time to drop the needle on another Executive Turntable, Billboard’s weekly compendium of promotions, hirings, exits and firings — and all things in between — across the music business. There’s been quite a bit of staffing news this week, “Da Pope” included, so let’s get to it.
Downtown Music Publishing appointed Jason Taylor as vice president of business development, based in Los Angeles and reporting to chief creative officer Jedd Katrancha. Taylor, who brings prior experience from ICONOCLAST, Hipgnosis Songs Group and Big Deal Music Group, will focus on expanding DMP’s global roster, emphasizing legacy catalogs and B2B partnerships. Additionally, Bea Koramblyum was promoted to global head of business affairs and vice president of business development (GHBAVPBD for short), recognizing her role in strategic dealmaking and catalog growth. A newly appointed chair of the Music Business Association, Koramblyum has been key in deepening industry relationships. These appointments follow a strong year for DMP, including over 30 Grammy noms-noms and notable signings like Peso Pluma and Tori Amos. Katrancha praised both execs, saying “Jason brings a rare blend of creative instinct and commercial acumen, with a track record of cultivating long-term relationships and building enduring catalog value” and that “Bea’s expanded role is a reflection of the leadership and vision she has brought to Downtown for many years.”
Trending on Billboard
The change train keeps a-rollin’ at Audacy, with the departure of longtime chief technology officer Sarah Foss, effective May 2. Foss joined the company (then Entercom) in mid-2020 as chief information officer and helped guide the company through the pandemic. “We innovated. We cut costs. We modernized. We got scrappy. We held virtual planning events. We went back to the office,” she said in her announcement on LinkedIn. Taking over is Steve Rollins, reviving the CIO title, who will oversee all IT and technical operations at the radio and podcast giant. Rollins arrives from Gabstin LLC but he previously served as CIO of SESAC — where he worked with Kelli Turner, who replaced David Field earlier this year as Audacy’s president and CEO. The shakeup at Audacy has also seen the recent departures of CMO Paul Suchman (replaced by Jenny Nelson), COO Susan Larkin, chief digital officer J.D. Crowley, and general counsel Andrew Sutor (succeeded by Michael Dash).
Range Music launched a new composer division, expanding its music management services into film and television scoring. L.A.-based industry veteran Jeff Jernigan joins as the first hire, bringing a roster that boasts Steven Price (Gravity), Tom Howe (Ted Lasso) and Helen Park (KPOP). Jernigan, formerly with Kraft-Engel Management, will represent composers, music supervisors, songwriters and executive music producers, working alongside Leah Cook, Range’s vp of creative sync and strategy. Range already has a strong foothold in music supervision, with clients like Andrea von Forester (Yellowstone) and Jordan Carroll (Dear Evan Hansen), and Jernigan has worked with Range’s film co-presidents Fred Berger and Brian Kavanaugh-Jones on projects like La La Land and A Complete Unknown. “As the first hire for this division, Jeff brings with him a wealth of knowledge, an incredible roster, and vast experience working along our film division,” says Berger and RMP co-founding managing partner Matt Graham.
NASHVILLE NOTES: Country Music Hall of Fame and Museum curator of recorded sound collections Alan Stoker retired at the beginning of the month, exactly 51 years after he started with the institution. His audio preservation and remastering expertise has been applied to recordings by Hank Williams, Patsy Cline and Merle Haggard, among others … Prescription Songs promoted Kelly White to A&R Coordinator. Based in Nashville, she works with artists, songwriters, and producers across Atlanta, LA, and Nashville, including Big Boss Vette and Trent Dabbs. A Belmont University graduate, she recently organized a songwriting camp with Tay Keith’s Drumatized label and plans additional camps to support Nashville’s growing creative community … Christian imprint Centricity Music promoted five longtime team members to senior roles, including John Mays as president of A&R and Camy McArdle and Andrew Lambeth as co-GMs. John Stokes becomes svp of marketing and operations, and Chad Segura is now svp of publishing.
Reliant Talent Agency expanded its talent division with four agents. Scott Simpson has been named as head of talent, to lead Reliant’s Talent, Comedy, Unscripted Television and beyond. Also joining Reliant Talent Agency is Jonathan Perry, who will lead West Coast Talent, alongside talent agent Katie Edwards. Melanie Moreau will lead the Unscripted Department. Industry veterans, president Steve Lassiter and his partners Heath Baumor and Matt McGuire will lead the Nashville-based agency, which had a concentration in concert touring prior to this expansion. The new infrastructure will give the agency talent outposts in Chicago, Los Angeles, Nashville, New York and Tampa. –Jessica Nicholson
WME appointed Alexis Rosenberg as senior director of external relations in its Nashville office, a new role designed to enhance connections with the Nashville business and entertainment communities. Reporting to WME senior partners and Nashville co-heads Becky Gardenhire, Joey Lee and Jay Williams, Rosenberg will work with corporate communications and marketing to foster corporate partnerships, sponsorships and strategic relationships. She will act as a liaison across music, sports, and business sectors, boosting WME’s industry presence and client support. Rosenberg brings over a decade of experience in professional sports, including roles with the NBA’s Orlando Magic and Major League Soccer’s Nashville Soccer Club.
Ralph Torrefranca has been promoted to executive director of writer creative at Angry Mob Music Group, where he has been a key player since 2015. Torrefranca has significantly contributed to the success of hits like “My Fault” by Shaboozey and “She Likes It” by Russell Dickerson. He has also fostered the growth of writers and producers such as Bus and Bailey Bryan. In his new role, Torrefranca will continue to oversee the creative development of Angry Mob’s roster and expand his influence across company projects. He founded The New Normal, an inclusive writing camp that highlights underrepresented voices in music, with over 70% women participation and representation from over 10 cultural backgrounds. Torrefranca is based in L.A. and will continue to report to Angry Mob’s CEO Marc Caruso, who said “his ability to work with and develop relationships that reach the core of who our writers and artists are as humans and creatives is incredibly unique and unlike any other A&R in music publishing.”
RADIO, RADIO: Connoisseur Media acquired Alpha Media, forming a combined company under the Connoisseur name, led by CEO Jeff Warshaw. The new entity will operate 218 stations across 47 markets, covering 20% of the U.S., and rank among the top 10 U.S. radio groups by station count and revenue. The deal, subject to FCC approval, is expected to close in late 2025 … Hope Media Group promoted Jeff Evans to vp of radio, having joined as WayFM Network program director in July 2023. In his new role, he’ll oversee WayFM programming, all program directors, and the creative audio services department, enhancing talent development across the Houston media group’s brands, including WayFM, Vida Unida and the God Listens Prayer App.
444 Sounds, the label services and management firm founded by former HITCO marketing exec Joe Aboud, appointed Izzy Parrell as director of streaming and digital partnerships. Parrell will manage streaming and digital strategies, enhancing the firm’s focus on long-term artist development and fan engagement. Previously at Apple Music, she shaped the platform’s global editorial voice, specializing in viral and pop playlist curation. As part of Apple Music’s global programming team, Parrell worked on Apple Music’s Viral Hits playlist and contributed to the 100 Best Albums list. “I’m beyond excited to join 444 Sounds at such a pivotal moment.” said Parrell “This team is reshaping the future of digital strategy in today’s ever-evolving music landscape, and I’m honored to be part of a mission that champions creativity, culture, and community.”
Tresóna named Jann-Michael Greenburg as president of the specialty licensing company. Greenburg, who has served as vp of business affairs since 2017 and interim president since 2024, brings early-career experience as an analyst for Deloitte UK. Founded in 2009 and based in Scottsdale, Ariz., Tresóna uses proprietary technology to streamline music licensing, ensuring proper rights for performances and recordings. Mark Greenburg, Tresóna’s Founder and Chairman, praised Jann-Michael’s impact on the business and his commitment to fair remuneration for songwriters.
Dynamic Talent International further expanded its Nashville presence with the opening of its new office at 401 Commerce Street. The company has also hired Nashville-based agent Robert Baugh, who will work alongside fellow Dynamic Talent International representatives in promoting artists including Danielle Bradbery, Drew Green and Erin Kinsey. Dynamic Talent International has operated in Music City for the past decade and has been instrumental in the K-pop arena, helping P1Harmony become the first K-Pop act to play at the Grand Ole Opry and aiding K-Pop artists including Mamamoo. –J.N.
Alex Stolls is now partner at Boyarski Fritz LLP, a top music and entertainment law firm where he has worked since 2017. Specializing in entertainment and intellectual property law, NYC-based Stolls represents a high-profile roster that includes the Estate of Maurice White, Lil Kim, Will Smith, JISOO of BLACKPINK, and top producers like Louis Bell and Hit-Boy. He also serves as outside business affairs counsel for companies such as Create Music Group and BMG. His early career included roles at William Morris Endeavor and Cowan, DeBaets, Abrahams & Sheppard LLP. Founding partner Jason Boyarski praised Stolls as a “homegrown success story,” citing his strategic thinking and key role in the firm’s growth.
ICYMI:
Andrew Spencer
AEG promoted Katie Pandolfo from Dignity Health Sports Park to GM of Crypto.com Arena in L.A., effective June 1, succeeding Lee Zeidman … AEG also announced that Andrew Spencer has been named chief operating officer of AEG Presents Europe … EarthPercent, the Brian Eno-founded org taking on climate change, appointed five new U.S. board members … and Sara Nix and Joe Mortimer were named co-heads of creative at Capitol Music Group. [Keep Reading]
Last Week’s Turntable: New Head of Lumineers Label
EarthPercent, the organization co-founded by Brian Eno that works to take on climate change, has hired five new U.S. board members.
This group includes sustainability consultant and former vp of creative at Kobalt Music Emily Bines, YouTube’s manager of artist partnerships Courtney Marr, Los Angeles city council senior communications advisor Dae Levine, Warner Music Group’s new business & ventures rep Michael Delle Donne and longtime industry exec Harry Poloner, who will be the board’s U.S. chairman. Bines will serve as board treasurer, Levine as secretary and Marr and Dalle Donne as members.
“Music has the power to drive real change, and at EarthPercent, we’re using that power to take action on the climate crisis,” Poloner tells Billboard. “I’m honored to serve as board chairman in the U.S. and help mobilize the music industry to protect our planet.”
“We’re very honored to welcome such a strong and driven group to EarthPercent’s U.S. Board,” adds EarthPercent’s co-executive director Joel Gardner. “Their collective passion, experience and stewardship will be instrumental as we further grow our presence and impact across the states.”
Trending on Billboard
Founded in 2021, EarthPercent raises awareness and funding for climate initiatives — both in the U.S. and globally — by empowering artists and the broader industry to take meaningful action on real environmental solutions. Funding is achieved by getting artists and industry members to pledge a small portion of their income to the organization, which in turn directs it to climate-related projects. Funding also comes via partnerships, merch collaborations and individual fundraisers.
The project, which was also co-founded by music managers Adam Callan and Hiroki Shirasuka, has received support from approximately 300 artists and 50 industry organizations and raised approximately $2 million over the last four years. EarthPercent is also a partner of Sounds Right, the cross-DSP playlist that incorporates nature sounds into tracks and directs of a percent of each song’s royalties to conservation projects. “EarthPercent makes it easy for industry and artists to support the earth through music,”” Gardner continues, “and in our first four years we’ve made a real difference to some of the most impactful climate and biodiversity projects around the world.
“This is thanks to nearly 300 artists and 50 industry organizations joining us through pledges in their tours, records and publishing — collectively raising over $2 million. These new appointments are a really positive and exciting next step to further build our movement and unite the power of music in service of the planet.”
Warner Music Group reported quarterly revenue edged nearly 1% lower and net income was down almost 63% for the start of the year, as the label home of stars like Bruno Mars and Lady Gaga struggled with tough comparisons to last year’s quarter.
WMG reported overall revenue of $1.48 billion and recorded music revenue of $1.175 billion, a 1% decline, for the fiscal second quarter, which ended March 31, compared to a year ago. Publishing revenue rose 1% to $310 million. Net income was $36 million compared to $96 million a year ago, due to lower recorded music revenue, a $34-million loss due to exchange rates costing the company more on its euro-denominated loans and an $11 million increase in a certain kind of taxes.
Total digital revenue slipped 1% with streaming revenue roughly flat, which reflects the comparison to last year’s boon quarter, a lighter release slate and market share loss in China.
Trending on Billboard
WMG CEO Robert Kyncl says these results belie the green shoots showing from company’s cost-cutting and new releases strategy, which he says results in their growing market share of new releases. Songs performed by WMG artists like Mars, Billie Eilish, Benson Boone and Teddy Swims currently claim half of the spots atop Billboard’s Global 200 chart.
“Our strategy is starting to bear fruit, with our strongest chart presence in two years … As a result, our true strength this quarter was partially obscured by challenging comparisons with last year’s outperformance,” Kyncl said in a statement, referring in part to last year’s 13.5% subscription streaming growth. “As we replicate our strategy across other labels and geographies, and drive a virtuous cycle of greater reinvestment, we expect to deliver lasting value for artists and songwriters, and sustained growth and profitability for shareholders.”
Adjusted operating income before depreciation and amortization (OIBDA) declined 3% to $303 million, and adjusted OIBDA margin decreased half a percentage point to 20.4%.
Because it earns more than half of its income from outside of the United States, WMG releases earnings on constant currency basis — a method that updates last year’s revenue and other line items using this year’s foreign exchange rates.
On a constant currency basis, overall quarterly revenue rose 1% — though recorded music and publishing both still declined by 2% and 5% respectively — and adjusted OIBDA declined by 1%.
Growth in music and concert revenue pushed K-pop company SM Entertainment’s consolidated revenue to 231.4 billion KRW ($159 million), up 5.2% from the prior-year period. Operating profit of 32.6 billion KRW ($22 million) was up 109.6% while operating margin improved to 32.6% from 15.5%. SM’s concert revenue grew 58.0% to 39 billion KRW ($27 million) […]
Five years ago, fitness companies looked like the next big thing for music rights owners as the onset of the COVID-19 lockdown turned Peloton, the maker of high-tech stationary bicycles and treadmills, into a household name and the leader in a suddenly hot connected fitness market.
Peloton’s founder, John Foley, had created an online version of music-driven, brick-and-mortar studios such as SoulCycle. Unlike the staid strength and cardio products of earlier years, the new breed of bikes and treadmills manufactured by the company were internet-ready and could stream live or pre-recorded workouts. Other startups took notice, with competitors like Tonal and Hydrow vying for market share.
“There were fitness companies who saw what Peloton was doing, which was really putting music at the center of their workouts,” says Vickie Nauman, a licensing expert and founder/CEO of CrossBorderWorks. Instructors, some of whom would become small-time celebrities, used music to create identities and build communities. “This was the original founder’s vision,” she says.
Trending on Billboard
Flush with investment capital, fitness companies followed Peloton into expensive licensing agreements with rights holders to infuse music into their at-home products. Royalties from connected fitness companies, as well as social media and other new revenue streams, went from about 3% of the average catalog’s revenue in 2021 to “something like 7%” in 2023, according to Jake Devries, a director in Citrin Cooperman’s music and entertainment valuation services practice.
As it turned out, 2020 and 2021 were peak at-home fitness. The financial impact of the post-pandemic fitness bubble was seen in Universal Music Group’s results for the fourth quarter of 2024: A decline in its fitness business accounted for a nearly one percentage-point decline in its subscription growth rate, equal to approximately $12.5 million. And during its most recent earnings call on April 29, the company noted that fitness revenue was flat in the first quarter.
After pandemic restrictions ended, the stay-at-home fitness business ran into competition from gyms and fitness studios as people returned to public life. As a result, according to numerous people who spoke with Billboard, connected fitness companies had less cash to put into music licensing and, realizing they didn’t need massive catalogs and didn’t have the expertise to properly manage the rights and issue royalty payments, looked for more affordable, less arduous options.
Peloton, founded in 2012, was a trailblazer in at-home fitness. Its studio-quality bikes, which currently cost between $1,445 and $2,495, are outfitted with touchscreens that stream live and on-demand content for an additional $44 per month. Music is a focal point for the online classes, just as brick-and-mortar studios like SoulCycle incorporate popular songs into their workouts. Despite the high prices of Peloton’s bikes, online content has a greater financial impact: In its latest fiscal year, subscriptions accounted for 63% of the company’s $2.7 billion of revenue and 96% of its $1.2 billion of gross profit.
Music enhances online workouts in the same way it makes going to a fitness studio or a gym more enjoyable. But building cycle workouts around setlists of specific songs isn’t straightforward. Unlike brick-and-mortar locations that require only blanket licenses from performance rights organizations such as ASCAP and BMI, Peloton required more expensive direct licenses to incorporate music into its streaming content. After being sued by music publishers for copyright infringement in 2019, Peloton settled the following year and began negotiating the proper licenses.
Such a license had never been done for a fitness company, so major labels and publishers modeled custom licenses for Peloton based on their deals with Spotify and other on-demand music platforms, according to a licensing executive familiar with the negotiations. The agreements called for Peloton to pay rights holders based on a monthly per-subscriber fee, and the pool of royalties would then be proportionally divided based on usage, according to this person.
Peloton had built a name for itself in the fitness community by 2019, but it was supercharged the following year by the COVID-19 pandemic. As people stayed away from public places such as gyms and fitness studios, Peloton’s revenue jumped from $384 million in fiscal 2019 to $1.45 billion two years later, and its share price climbed from $27 following its September 2019 initial public offering to $171 in January 2021.
The enthusiasm for at-home fitness also benefited Peloton’s competitors. Hydrow, which offers rowing machines with Peloton-like streaming content, raised $25 million in June 2020 and another $55 million in March 2022. Tonal, a connected strength training platform, had raised a total of $90 million by 2019, before the pandemic piqued interest, then raised $110 million in September 2020 and $380 million in two funding rounds in 2021 and 2023 — the latter at a lower valuation.
As other connected fitness companies quickly sought music licenses to replicate Peloton’s success, rights holders offered them a version of the Peloton license, which provided them rights to large catalogs. (Peloton, the lone publicly traded company of the bunch, revealed in its 2021 annual report that it had a catalog of 2.6 million tracks.) “Once there was a model, it was always going to be easier to replicate a model you think is working than create a new licensing deal,” says the licensing executive.
But these fitness startups, desperate to corner share in a fast-growing market, initially made some missteps. “Because it was such a race, I think that many online fitness companies saw this as an existential opportunity, and they did not take the time to investigate what they were getting into,” says Nauman. “And so, they licensed all of this music, and that sent a signal to rights holders all over the world that fitness was going to be an enormous new line of business.”
The Peloton-style licenses weren’t cheap. Record labels and publishers were “aggressive with the rates they were asking for a lot of the services,” says an attorney familiar with the terms of the licensing contracts. An app-based product would likely pay 30% of revenue to music rights holders, according to this person, while hardware-based products with higher overhead and costs would pay approximately 16% of revenue. “That’s a pretty big share of revenue for a company that is not a music company,” the attorney adds.
The Peloton-style sync licenses also came with more complexity than fitness companies could handle. Managing a music catalog requires technology and know-how that fitness companies don’t have. They needed help matching compositions to sound recordings to ensure licenses were acquired from all rights holders, and the reporting required for PROs and making direct payments to record labels and publishers were outside of the fitness companies’ expertise.
As fitness companies dealt with stagnant growth, they laid off staff and tightened their budgets. From February 2022 to May 2024, founder/CEOs at Peloton, Tonal and Hydrow were forced out. When Peloton replaced Foley with former Spotify CFO Barry McCarthy in February 2022 and announced plans to lay off 20% of its corporate staff, its share price was trading under $30, down more than 82% from its high mark just 13 months earlier. Tonal and Hydrow each laid off about 35% of their workforces in 2022, and Hydrow further thinned its staff in 2023.
Sync licenses are crucial to Peloton because classes are often built around playlists, and music is crucial to the indoor cycling experience. But not every connected fitness product needs to integrate music in a way that requires a more expensive, Peloton-style license. For many other companies, a non-interactive, DMCA-compliant radio service with pre-cleared music is more than adequate.
Constrained by tighter budgets, some connected fitness companies started looking for alternatives to their original licenses. Today’s connected fitness CEOs tend to be most concerned about the cost and complexity of music licensing and the likelihood of being sued, says Jeff Yasuda, founder/CEO of Feed.fm, a provider of licensed music to connected fitness companies such as Hydrow, Tonal, Future and Ergatta. Being able to use popular music in their apps isn’t a priority.
“For a fitness company, your job is to make the best jumping jack app on the planet,” says Yasuda. Making a mistake handling music rights would put a company in jeopardy of facing lawsuits brought by music rights holders. “It’s just not worth the risk,” he says.
Feed.fm assures clients that the rights are compatible with various laws in different countries. It provides pre-cleared catalogs from Sony Music, Warner Music Group, Merlin, Insomniac Music Group and A Train Entertainment, and it works with record labels to create thematic stations, including one curated by CYRIL, a recording artist for Warner-owned Spinnin’ Records, and a Brat-inspired station featuring Charlie xcx, Dua Lipa, Chappell Roan and other artists that represent the brat summer of 2024. A rights holder itself, Feed.fm has signed 40 to 50 artists, which its vp of music affairs, Bryn Boughton, says gives it greater flexibility in licensing.
Outsourcing the licensing ultimately saves fitness companies money, says Con Raso, co-founder/managing director of Australia-based Tuned Global. Raso’s pitch to fitness companies is to invest money in marketing and let companies like Tuned Global handle the technology. “We don’t think, unless you’re doing it on a massive scale, you’re going to save money,” he says. Raso estimates that Tuned Global can remove 70% of clients’ costs versus licensing music and managing rights themselves.
Beyond traditional fitness apps, there’s big potential for licensing ambient or mood music for a new wave of mental health-focused apps. In the last six months, Raso has seen an uptick in demand for licensed music from companies more broadly associated with health and medical care. Consumers have a wide choice of apps for yoga, meditation, mindfulness and sleeping that incorporate music. Led by companies such as Calm, the market for spiritual wellness apps hit $2.16 billion in 2024, according to Researchandmarkets.com, and will grow nearly 15% annually to $4.84 billion by 2030. Record labels have already made forays into this space. Universal Music Group, for example, formed a partnership in 2021 with MedRhythms, which uses software and music to restore functions lost to neurological disease or injury.
The COVID-era boom of connected fitness products, though, seems all but over, having failed to live up to lofty expectations. Chalk it up to the chaotic nature of the pandemic and fast-moving startups battling for market share, says Nauman. “I don’t think it’s anybody’s fault,” she says. “I think it was such a lightning-in-a-bottle time that they were in a race to get to market as fast as they possibly could.”
Additional reporting by Liz Dilts Marshall.
With the Music Business Association getting ready to hold its annual conference for the first time in Atlanta after nearly 10 years in Nashville, some longtime attendees thought the move might diminish turnout. But the organization’s president, Portia Sabin, says the event (May 12-15) is on track to match last year’s total attendance of 2,200 industry executives. More importantly, she adds that sponsorships for the convention are outpacing last year’s numbers.
That’s a crucial factor, because this conference — and others the organization hosts throughout the year — provides about 60% of Music Biz’s revenue, according to its most recently available 990 form, which nonprofit organizations are required to file annually with the IRS. For the year ended Sept. 30, 2023, $1.85 million of Music Biz’s $3.07 million in revenue came from its programs, while another $1.214 million came from membership fees, contributions, and grants. That revenue supports the organization’s staff, which consists of 10 employees, as well as covers the expenses of its operations, including its Nashville office and events.
Since taking the helm in 2019, Sabin has led the organization’s evolution from a trade group focused on music merchandisers into one that serves the broader music business. As part of that mission, she has helped the organization grow into an international force, with executives from 168 overseas music companies coming to Atlanta for this year’s conference. She has also worked to diversify the organization, increasing the presence of women and minorities on its board of directors, which has been expanded to 25 members to ensure Music Biz represents all sectors of the industry. “We’re always trying to be inclusive here,” she says.
Trending on Billboard
In preparation for this year’s event, Billboard caught up with Sabin to discuss what attendees can expect.
So are you and the Music Biz Assn. staff ready to rock and roll?
We are so ready to rock and roll!
How is the conference shaping up so far?
It’s shaping up amazingly. Our sponsorships are off the charts—way over what we budgeted for. Our hotel has been sold out for months, and all the overflow hotels are sold out too. So it’s shaping up great.
Where does attendance stand compared to last year?
We’re on track — about the same as last year [when 2,200 attended]. Attendance at this conference is always a little unpredictable because people book their hotels really early, but many wait until after South by Southwest to register. It’s just how it is.
Why did you decide to move the conference to Atlanta after nearly a decade in Nashville?
Multiple reasons. One was that I wanted to return to the older model where we moved around to great music cities, like Atlanta. The music industry is in many great cities in America, it’s not all just Los Angeles, New York and Nashville. Another reason was financial. Nashville has become increasingly expensive, and we didn’t want to raise conference fees or see hotel room prices skyrocket. So, we really wanted to keep costs down for our members and for our attendees and keep make sure the conference is reasonably priced.
What’s the makeup of this year’s attendees?
When I was hired in 2019, the board expressed that they wanted Music Biz to become a global organization that reflects the fact that the music industry is global. I think we’re really achieving that. A lot of people from overseas have gotten excited about the conference—they’ve seen it as a value add to their business. This year we’ve got 256 attendees from 168 companies coming from overseas.
Is the Trump-era tariff chaos affecting attendance?
There may be a person here or there who feels like they are not willing to travel at this time. But, we saw a similar thing the first year back after the pandemic, right? Then some people said, ‘Listen, I just can’t travel, and just I don’t feel safe.’ I feel like there’s always something going on where some people won’t attend for one reason or another.
Beyond the international presence, how else has the conference evolved over the last five years?
Our fastest-growing membership sector is tech, which I think reflects what’s going on in the industry as a whole. And it’s different now. Ten or 15 years ago, tech companies entered music with no real understanding — they were like, ‘I’ve got a cool idea for an app.’ And it was just dumb stuff that was not needed. Now, they’re more informed, trying to solve real problems. We’re seeing real solutions with real benefits. But now [the tech] people got more with the program, and they are like ‘let’s learn about the music industry and then figure out what problems need to be solved.’ So we’re seeing people coming into the industry with real solutions that give benefits to various players in the industry. Our tech sector has grown a lot.
What other changes have you seen?
Since I’ve been here, we have really worked hard to be more inclusive. So we have more publishing members now. We have people from the live sector—ticketing and touring. It’s become abundantly clear that the music industry has to work together here. We can’t just silo ourselves like maybe once we thought we could, 25 or 30 years ago.
From a publishing perspective, the CMOs (collective management organizations) seem to be getting a lot of attention this year.
Our programming is totally crowd-sourced, so we open the call for proposals, and then we just work through the proposals. The interest in publishing at the conference is huge, and we got a lot of proposals for CMOs programming this year, and a lot of it was coming from European members. So we have some really great, high level attendance from those folks. People were very excited about publishing and we even have a dedicated publishing track this year that’s sponsored by EMPIRE.
You mentioned a growing tech presence. Does that have its own track too?
One of the new themes is “new tech trends” and its programming that focuses on the new stuff that is happening in tech that people can learn from. For instance, one panel I’m really excited about is “From Piracy to Profit: What Adult Entertainment’s Digital Revolution Can Teach Us About the Future of Music.” This panel sounds really futuristic but it’s also about learning from other sectors in digital entertainment.
Will there be programming for DIY artists?
Yes, absolutely. We offer a special ticket price of $49 for artist and we give them a full day of programming on Monday (May 12) where they can get information on making and running a business and it’s topped off with the Spotify party at night.We also do the Roadshow were we visit 3-7 cities a year. We just did one last month in Toronto, as our first international show.
What other programming highlights can you share?
We have a new track called Human of Music, focused on workforce well-being. Another favorite is Workflow Workshop, which focuses on what we do and how we can do it better. And we are still doing the “Let’s Talk Physical” track, which we also do quarterly through online webinars. At the conference it will be on Monday. And there is always the Record Store Day Town Hall [on Wednesday, May 14]. We love the retail sector; it is very near and dear to my heart. We try to support that sector as much as possible.
Is there an AI track this year? What about metadata?
Last year we did a track on AI because it is just so ubiquitous. This year we said, let’s just intersperse it through the programming. So in every track there is at least one panel that’s got something to do with AI, because that was just what was submitted when we made the call out for programming. As for the Metadata summit, because there are so many other pieces, it’s become like the Metadata Technology and Rights Summit; and that’s on Wednesday morning.
You crowd-source your panel programming, but how do you evaluate the success of sessions afterward?
One thing I want to say about the surveys is people would sometimes say the panelists were great but the moderator was boring. So over the last two years, we have been offering moderator training pre-conference, just to improve their skills. We did it in April with a professional moderator trainer, and it’s free for a moderator on the program.
Having attended for years, I know the hotel layout really matters. How does this year’s venue stack up?
This year’s hotel, in my opinion, is more conducive for the conference than the JW Marriott in Nashville — because it’s just really straightforward. You walk in and there’s a big lobby, then you go up the escalator, and there’s a big atrium, and that’s the central hub of where everything will be, with the programming panel rooms branching off from there. That central hub, sponsored by Downtown, will have seating and tables; it’s the sort of place where everyone can hang out. Downtown will have a DJ there at different times of the day, which is awesome.
Will there be live music?
Yes! Every evening event features music. The Spotify-sponsored welcome bash on Monday night will have live performances. The Wednesday night Bizzy Awards, sponsored by Warner Music Group, will also feature live artists. Performing artists include Kayla Park and Yami Sadie.
Will there be a trade show floor?
No, but there will be companies displaying what they do in spaces around the central hub. We call that “activations” and they are all filled.
How are you handling the private meetings that are a big part of the conference?
The private meetings will be happening. All the meeting rooms sell out quickly. We know that is a big thing for people so we structure our programming and try to build it so there is a block open for lunch and other meetings. And while we love the panels, there are other ways for people to interact. So this year, we have a bunch of round tables. We have sync round tables. We have women’s leadership round tables. We’ve got the Startup Lab, where startups can meet with [potential] investors and with people who have been in the industry for a while who can act as advisors for startups.
Now the big question: where’s the bar?
There are two bars in the lobby—one is a standard hotel bar, and the other is a sunken bar sponsored by TuneCore.
Last question. Last year, you said the Atlanta conference would feel like summer camp. Is that happening?
Well, I bought some footie pajamas so I can walk around the hotel in them. And yes, it will feel really summer campy because every floor is going to be filled with just our people so it will be a lot of fun.
Blue Note Jazz Club has confirmed that plans to open a new venue in London, England will proceed following the granting of a late license by the local council. The 350-capacity venue will be the first Blue Note Jazz Club to be established in the U.K. and is slated for an early 2026 opening.
The news follows reports of opposition by the Metropolitan Police Service and local residents. In February a Licensing Sub-Committee Report from the City of Westminster outlined a number of objections from the local police enforcement, who objected to the venue’s opening on the grounds it would undermine the licensing objective of “prevention of crime and disorder”.
The move was criticised by a number of local musicians and industry figures, with claims that the council was stifling the capital’s nightlife scene. The venue was initially granted a license that would see the club close at 11:30 p.m., but Steven Bensusan – president of Blue Note Entertainment Group and son of the original Blue Note Cafe founder Danny Bensusan – told Sky News that the opening of its planned European flagship venue may not be viable without a late license. “If they’re not giving us a late license, I can’t imagine how they would be supportive of other smaller venues, which are important for the ecosystem in general.”
Trending on Billboard
However the Westminster City Council has since reversed its opposition and said that the “venue management have engaged extensively with local people to improve their application and address the concerns that were raised by the police.”
The venue will be based in the basement of the St Martins Lane hotel in Covent Garden in central London. The license will allow the club to open until 1 a.m. on Monday to Saturday, to midnight on Sundays.
The Blue Note Jazz Club will host two performance spaces: a main room with 250 person capacity, alongside a secondary 100 person capacity space. The venue will host a full-service kitchen and beverage menu and will be open for dinner throughout the week.
The new venue will continue the expansion of Blue Note Jazz Clubs internationally. The original club in New York City was opened in 1981, and new venues have since opened in Milan, Beijing, Shanghai, Tokyo, Rio de Janeiro and São Paulo. Stevie Wonder, Tony Bennett, Ezra Collective and more have all performed at the club and its sister institutions.
Steven Bensusan, president of Blue Note Entertainment Group said in a statement, “We’re excited to be coming to London and grateful to Westminster Council for recognising what Blue Note can bring to the city’s nightlife. As we prepare to open in early 2026, we’re looking forward to bringing world-class jazz and a deep cultural legacy to one of the greatest music cities in the world.”
Andrea Bocelli signed an exclusive, five-year worldwide agreement with AEG Presents for the creation and management of his live performances, in collaboration with his management team (Veronica Berti and Francesco Pasquero), agency WME and record label Universal Music Group. The deal, which begins on Jan. 1, 2026, covers all of Bocelli’s ticketed live events globally.
Mark Ambor, who scored his first Billboard Hot 100 entry with the smash 2024 track “Belong Together,” signed to Capitol Records. The singer-songwriter is currently touring in Europe and set to play festivals including Governors Ball, Lollapalooza (in both Chicago and Berlin) and Outside Lands. He concluded his North American tour last year.
Don McLean (“American Pie”) signed with Day After Day Productions for exclusive global touring representation. The singer-songwriter currently has more than a dozen tour dates lined up in the U.S.
Trending on Billboard
Country singer-songwriter Ink signed with Big Loud Records and Electric Feel Records. She is managed by SALXCO. Ink co-wrote three tracks for Beyoncé’s Cowboy Carter, including “16 Carriages,” “Texas Hold ‘Em” and “American Requiem,” as well as Kendrick Lamar and SZA’s smash single “Luther,” among many other credits.
Management firm Shelter Music Group announced the signings of five artists: Cheap Trick, Boys Like Girls, Chiodos, American Hi-Fi and Dead Poet Society. Cheap Trick is gearing up for its 2025 tour and a new album; Boys Like Girls will support the Jonas Brothers on its 20th anniversary stadium and arena tour; Chiodos is currently touring to promote the 20th anniversary of All’s Well That Ends Well and will embark on another tour in the fall, with a new studio album and more touring to come next year; American Hi-Fi are gearing up to celebrate the 25th anniversary of the band’s self-titled debut album; and Dead Poet Society are set to tour across Europe and the U.K. this summer, and later across the U.S. in support of Chevelle.
New Found Glory signed to Pure Noise Records, which released the band’s latest single, “100%.” The band is set to perform at Slam Dunk Music Festival before touring with The Offspring and Jimmy Eat World on the SUPERCHARGED: Worldwide in ’25 Tour in North America, followed by several U.K. headline dates.
Country singer-songwriter Mark Chesnutt signed with Conway Entertainment Group/Ontourage Management for management and Absolutely Publicity for PR. Chesnutt is represented by Risha Rodgers at WME’s Nashville division for live bookings.
RaeLynn signed with The Valory Music Co., which will release her latest track, “Heaven Is a Honky Tonk,” on Friday (May 9) in partnership with Red Van Records/Jonas Group Entertainment. The country singer-songwriter is touring with Jason Aldean on his Full Throttle Tour this summer.
British Columbia-based singer-songwriter Luca Fogale signed to Nettwerk, which released “Begin,” his first single of 2025, with more music set for release in the coming months. Fogale just wrapped a headline tour of North America and is currently touring in Europe. He’s managed by Colin McTaggart and Piers Henwood at Amelia Artists and booked by Grant Paley at Midnight Agency for Canada.
R&B artist RAAHiiM (“Peak (Fed Up)”) signed with MNRK Music Group, which released his single “Just Like Me” on Friday (May 2). He’s set to support Jessie Reyez on her North American tour beginning on June 10. RAAHiiM is managed by Joven Haye and booked by Olivia Mirabella, Yves Pierre and Jacqueline Reynolds-Drumm at CAA.
Capitol Christian Music Group signed singer-songwriter Eli Gable, whose debut single, “Holy Ghost Town,” releases May 16. The Ohio native moved to Nashville in 2020 and creates music that blends worship, folk and rock styles. Gable will join Rend Collective on the Folk! 2025 Fall Tour starting Oct. 17 in Portland, Maine. The CCMG roster also includes Chris Tomlin, Blessing Offor, Crowder and Franni Cash. – Jessica Nicholson
Universal Music Korea signed hip-hop artists Okasian and Bryan Chase. Both rose to prominence in Korea as part of The Cohort’s hip-hop crew. Both recently featured on “LOV3,” a track off Sik-k and Lil Moshpit’s [K-FLIP+] EP released in March.
Though economic uncertainty lingers, some music companies’ stocks got boosts following their first quarter earnings releases this week, while a better-than-expected jobs report on Friday (May 2) lifted stocks across the board.
K-pop companies were among the top performers of the week. Led by HYBE’s 13.8% gain following its first quarter earnings report on Tuesday (April 29), the four South Korean companies had an average share price gain of 10.3%. JYP Entertainment rose 11.7% and SM Entertainment, which announces earnings on Wednesday (May 7), improved 9.0%. YG Entertainment gained 6.6%.
The 20-company Billboard Global Music Index (BGMI) rose 3.6% to 2,690.13, its fourth consecutive weekly improvement. At 2,690.13, the BGMI has improved 19.1% since a two-week slide and stands just 2.4% below its all-time high of 2,755.53 set during the week ended Feb. 14.
Trending on Billboard
Music stocks slightly outperformed the Nasdaq and S&P 500, which rose 3.4% and 3.1%, respectively. Foreign markets were mostly positive but more subdued. The U.K.’s FTSE 100 rose 2.2%. South Korea’s KOSPI composite index gained 0.5%. China’s SSE Composite Index lost 0.5%.
Universal Music Group (UMG) gained 4.3% to 25.86 euros ($29.23) following a quarterly earnings report showing that recorded music subscription revenue grew 11.5% and overall revenue improved 11.8%. JP Morgan analysts’ conviction on UMG “remains very high,” and the strong quarter “should help rebuild confidence and share price momentum” dented by Pershing Square’s sale of $1.5 billion in UMG shares, analysts wrote in an investor note on Tuesday.
Spotify finished the week up 3.7% to $643.73 despite its shares dropping 3.4% on Tuesday after the company’s first-quarter earnings report included guidance on second-quarter subscription additions that seemed to underwhelm investors. Gross margin of 31.6% beat Spotify’s 31.5% guidance. Loop Capital raised Spotify to $550 from $435, while Barclays lowered it to $650 from $710. UBS maintained its $680 price target and “buy” rating. Guggenheim maintained its “buy” rating and $675 price target.
Live Nation, which reported first quarter earnings on Thursday (May 1) and predicted a “historic” 2025, gained 2.3% on Friday and finished the week up 0.7%. A slew of analysts updated their price targets on Friday. Two were upward revisions: Jefferies (from $150 to $160) and Wolfe Research (from $158 to $160). Two were downward revisions: Rosenblatt (from $174 to $170) and JP Morgan (from $165 to $170).
Nearly all streaming stocks posted gains. LiveOne was the week’s top performer, jumping 18.0% to $0.72. Chinese music streaming companies Cloud Music and Tencent Music Entertainment gained 11.6% and 7.1%, respectively. French music streamer Deezer gained 1.4% to 1.44 euros ($1.63) after the company’s first-quarter earnings on Tuesday. Abu Dhabi-based Anghami fell 3.1% to $0.62.
Cumulus Media fell 33.% to $0.14. Most of the decline came on Friday as the stock ceased trading on the Nasdaq and began trading over the counter.
Created with Datawrapper
Created with Datawrapper
Created with Datawrapper