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By 2017, nightlife venues in Berlin were closing so quickly that the phenomenon had been dubbed clubsterben — “club death.”
As a result, the city — where nightlife is so woven into the social fabric that the local government has its own club commission — began scrambling to save venues, which were shuttering due to increased gentrification. One of the agencies they called for help was VibeLab, an Amsterdam-based consulting and advocacy agency that works to protect nighttime economies and cultures by using the language most city officials know best: data.
In Berlin, the company’s research resulted in the creation of a club cadastre, or a real-time map indicating the value, extent and ownership of nightlife venues in the city as they relate to taxation.
“The city would know where new development was happening, but they wouldn’t have a clue what the neighboring clubs were before giving out [a] new development permit,” says VibeLab co-founder Mirik Milan. “They didn’t have a tool to see if a cultural or independent space need[ed] protection from this development.”
Milan says the cadastre was a significant step in building the influence of the Club Commission and the nightlife industry with local government, helping expand the Commission’s operating budget from three to seven million euros over the last five years. The cadastre has also provided advocacy organizations with time to start campaigns to protect spaces before development permits are signed off on by the city.
Since launching in 2018, VibeLab has also created such tools for cities including Montreal, New York City, Tokyo and Riyadh, along with a forthcoming analysis of Nashville. On November 27, the company will present its report for Sydney to the government of New South Wales, with officials including John Graham – who oversees the territory’s nighttime economy – having already pledged their support to the report’s outcomes.
Reports, which can be completed in as little as five months and typically cost between $75,000 to $160,000, are commissioned by various agencies in each respective city. While specific goals shift from place to place, all reports are ultimately meant to give local officials a better idea of the scope and value of that city’s nightlife culture. (To wit, the VibeLab website proclaims the organization to be “defenders of the dark.”)
Mirik Milan
Once commissioned, members of the 10-person VibeLab team fly to town. Their first step is connecting with locals who can offer intel on what goes on when the sun goes down.
“These are maybe not the highest-ranking operators,” says Milan, “but people that really know what the scene is about: music journalists, small independent promoters, passionate people that go out often.”
The VibeLab team interviews these people while also aggregating data on neighborhood populations, land prices, census statistics, public transportation and more. A report on the size, value and general health of the scene – called a “creative footprint” – is then prepared.
These footprints foster initiatives like the Berlin cadastre, which helped local officials see that “a dot on the map is a business that supports 200 jobs and makes that neighborhood flourishing and Interesting and is probably why the developer wanted to do something there,” says Milan. “It’s very much about creating awareness and education.”
Protecting nightlife ecosystems is a cause Milan has professionally championed since his tenure as the night mayor of Amsterdam, effectively launching the position in both the city and others around the world. Serving from 2014 to 2018, Milan helped create 24-hour venue permits and worked on a crime reduction initiative around the city’s Rembrandtplein plaza. He also assisted officials in New York City, London, Paris and beyond to create similar roles and nighttime governance structures, which are meant to create a dialogue between municipalities, clubs, festivals, event promoters and residents. (Currently, 15 U.S. cities have night mayors.)
The VibeLab team is steeped in this work. Co-founder Lutz Leichsenring has been the spokesperson and executive board member of the Berlin Club Commission since 2009, and Asia Pacific director Jane Slingo is the co-founder of Sydney’s Global Cities After Dark summit, the director of the city’s Electronic Music Conference and a longtime artist manager. Crucially, the entire team is passionate about going out dancing.
“When you’re in an advocacy role [like night mayor],” Milan says of the difference between his former and current positions, “you often jump on every fire: a club that’s under pressure, a festival that has sound issues, or an act of violence. With VibeLab, we wanted to be ahead of the curve, strategizing about how we could ensure cities make the right decision before it goes wrong.”
Jane Slingo
The cultural and economic stakes are real. VibeLab data shows that in bigger cities, one in seven or eight people work in the nightlife industry. When venues close, these workers are out of jobs, artists have fewer options on where to play and nightlife culture, particularly independent and underground music culture, is stifled.
“The business model of cities works against preserving nightlife culture, because the model is to develop the land,” says Milan. “But what they’re forgetting is if they root out the reason why the land got valuable, you push creative communities further to the outskirts or just wipe it out completely. And that is very difficult to build back.”
VibeLab’s creative footprints have found that a few tactics on how to best protect these communities bear out globally.
“We see in our reports that the venue ladder is essential,” says Milan. “It’s very important to have a talent development pipeline. You need spaces [that hold] 150 people where artists can do their first gigs.”
Such a ladder would provide artists with places to play at every phase of their development, from a tiny club to a mid-size room to an arena. While creative footprints don’t differentiate between independent and corporate-owned venues, the smaller and often independent spaces are most likely to close amid real estate developments and economic downturns.
VibeLab reports have also discovered the efficacy of cultural grants that include micro funds, which earmark relatively modest chunks of money – between $5,000 to $20,000 – for artists to get albums mixed, pay for short tours and more. “Really often, cultural funding only ends up at institutions and with already established artists or musicians,” says Milan, but funding “smaller entities that don’t already have a track record is very important for building up a lively scene.”
Lutz Leichsenring
With venues around the world feeling the ongoing squeeze of rising rent and gentrification (the National Independent Venue Association reported that more than 25 U.S. clubs permanently closed in 2022), creative footprints also advocate for venues to become multidisciplinary spaces that can host a variety of functions and which are open daily, rather than the Thursday to Saturday schedules many of these spaces currently operate on.
The diversification of such spaces, VibeLab posits, will likely also create a better connection between venues and the locals who live near them. This relationship is likely to help these locals, who might otherwise register sound complaints and the like, better understand the value of a space and even start going there themselves.
Footprints also advise that more public funding be given to these spaces, so they’re not so reliant on alcohol sales. Reports have also found positive correlations between good public transportation, a large population of young people and a high density of music venues.
“A report is always a vehicle for a bigger process,” says Milan. He says a report’s direct effect is how it illustrate gaps, opportunities and policy incentives to officials, while also revealing blind spots or preconceptions city governments might have about nightlife.
Ultimately, VibeLab’s work is meant to protect an industry that, Milan says, is “still very much demonized” due to misconceptions about what happens in nightlife spaces and about how much nightlife culture contributes to any given city’s economy and quality of life.
“We are very passionate about the transformative power that nighttime culture and [artistic] communities have on cities,” says Milan. “We see ourselves as translators, connecting creatives, businesses, governments and institutions to boost creativity in local communities.”
Reservoir Media reported Tuesday (Nov. 7) that revenue grew by 15% year-over-year to $38.4 million for the second quarter of fiscal 2024, ending Sept. 30, 2023. During the quarter, the independent music company acquired new catalogs like Joe Walsh, Latin music icon Rudy Perez and country writer Brent Maher as well as continued expansion in its Arabic music catalog through its partnership with PopArabia — contributing to its inorganic growth.
This quarter’s rise in revenue, up from $33.3 million in Q2 of fiscal 2023, was mostly thanks to growth in its recorded music division, which was up 22% from last year’s second quarter, and publishing, which was up 8%. Reservoir notes that the growth in recorded music is largely driven by Chrysalis Music (acquired in 2019) and Tommy Boy (acquired in 2021) and partially offset by lower synchronization and film/tv licensing revenue, likely hindered by the WGA and SAG-AFTRA strikes.
Chrysalis’ sprawling catalog of masters includes “Dancing With Myself” by Generation X and “Nothing Compares 2 U” by Sinead O’Connor, whose catalog saw a 2,885% spike in listenership after her death earlier this quarter. Tommy Boy is home to some of hip-hop’s most pioneering players, including De La Soul, the trio that Reservoir ushered on to streaming services for the first time during Q4 of fiscal year 2023 to a solid monetary boost.
In the publishing sector of their business, Reservoir’s revenue reached $25.9 million, compared to $24.1 million in last fiscal year’s second quarter. The gain was a product of strong results in performance and mechanical revenue in particular. Performance monies were up 47% YoY and mechanical was up 25% YoY. These wins, however, were offset by changes with the Copyright Royalty Board — which regulates publishing royalty rates in the U.S. — Reservoir says, leading to a decrease in digital by $2.1 million which was recognized in the prior year quarter related to the newly affirmed royalty rates for the 2018-2022 period.
The company also signed a handful of award-winning frontline songwriters in the past quarter, including Steph Jones, Rob Ragosta, Cam Becker, Josh Record, and Wé Ani.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), a closely watched metric of profitability, was up 24% this quarter to $15.9 million.
Founder and CEO, Golnar Khosrowshahi, says the company is confident in its position, both in the U.S. and emerging markets “We are encouraged by the growing opportunities internationally and welcome recent additions of El Sawareekh and RE Media expanding our presence in the emerging markets,” she says. “We will continue to pursue acquisitions in the U.S. and across the globe, and we have the right team and strategy to close accretive deals enhancing the portfolio and building long term value for the business and our shareholders.”
Jim Heindlmeyer, CFO, says that, as a result of the company’s “consistent progress against our strategic growth plan demonstrates the resilience of our business model and ongoing tailwinds from the growing music industry,” Reservoir is raising both its revenue and adjusted EBITDA guidance for fiscal 2024. “We are pleased to announce another quarter of strong performance, driven by meaningful top-line growth in both business segments,” he says.
The company’s outlook for fiscal 2024:
Revenue is anticipated to be $133 million-$137 million for the year ending March 31, 2024, with 10% growth at midpoint
Adjusted EBITDA is expected to be between $50 million-$52 million with 10% growth at midpoint
Hipgnosis Songs Fund announced on Tuesday the appointment of Rob Naylor as board chair, replacing Andrew Sutch, who was removed as part of changes set in motion at last month’s shareholders meeting.
Naylor had been a top candidate, as Billboard sources indicated, and arrives at HSF following a tenure as board chair at Round Hill Music Royalty Fund, the public fund of Round Hill, which was recently sold to Concord as part of a $469 million sale. He is CEO of Intuitive Investments Group, a fund that invests in high growth life sciences companies, and held previous roles at JP Morgan Asset Management Limited, Panmure Gordon Limited and others.
Joining the board as a non-executive director is Francis Keeling, who held the same title at Round Hill Music Royalty Fund Limited until its recent sale. Keeling is currently executive vp of business development at Orfium, a rights management solutions company. A music industry veteran, he was previously global head of licensing at Spotify and before that, global head of digital business at Universal Music Group.
“On behalf of the Board, we are delighted that Robert and Francis have agreed to join Hipgnosis Songs Fund,” said Sylvia Coleman, senior independent director of HSF. “Robert and Francis’s appointments follow extensive engagement with shareholders, and their experience and knowledge working with investment companies, most notably at Round Hill Music Fund, will be invaluable to Hipgnosis as we look ahead to the next chapter.”
On Oct. 26, investors of the fund overwhelmingly demanded structural changes to the troubled music rights company — but in ways that don’t include selling off part of its 65,000-song catalog. More than 80% of Hipgnosis investors voted in favor of the board drawing up “proposals for the reconstruction, reorganization or winding-up of the company to shareholders for their approval within six months,” the board said in a regulatory filing.
Investors also voted 71.5% against the re-election of Sutch, then-board chair, speeding up his departure, which was already set for 2024. Fund directors Andrew Wilkinson and Paul Burger also resigned as part of strategic review of its leadership.
In emailed comment following the shareholders meeting, founder Merck Mercuriadis framed the vote as “an opportunity to reset and focus on the future.”
A rebound in performing rights and heightened demand for physical product helped the value of global music copyright reach $41.5 billion in 2022, surpassing the $40 billion mark for the first time, according to a report released Monday (Nov. 6).
While record labels commanded a majority of the global market, the $5 billion annual increase was “evenly shared” between recorded music and music publishing, noted the report’s author, Will Page. The 2022 tally represented a 16% increase at constant currency — and currency fluctuations played a major role. Page restated the value of global music copyright in 2021 to $36.9 billion from $39.6 billion due to updated foreign exchange rates. Almost $2 billion of the nearly $3 billion restatement came from IFPI’s global recorded music revenues, while about $1 billion of the adjustment came from music publishing.
Record labels accounted for $26 billion of the $41.5 billion sum, a 62.7% share that was lower than both 2021 (64.6%) and 2020 (63.5%). Since 2020, a slowdown in labels’ digital revenue has been offset by more than $1 billion in growth from physical formats from “accelerating demand for CDs in Asia” and an “insatiable need” for vinyl records in Europe and the United States: “And this isn’t going to slow down,” predicts Page.
Music publishers increased their share of the global total to 37.3%. Part of the reason publishers outperformed labels could be from what Page calls a “lag effect,” where labels tend to license to new streaming platforms before publishers. Another potential reason for publishers’ improvement is early accruals from the royalty increase in the United States from the Copyright Royalty Board, “a decision that will fully crystalize when the 2023 figures are calculated,” writes Page.
Publishers’ direct revenue rose from $3.7 billion to $4.1 billion but accounted for a smaller 9.9% share of total revenue, down from 10.2% in 2021. Songwriter CMOs rebounded with a 27.5% share of total revenue worth $11.4 billion, after taking a 25.3% share worth $9.2 billion in 2021 and a 27.2% share worth $8.5 billion in 2020. Page attributes CMOs’ improvement to music’s return to the live space after the pandemic, which drives gains in public performance royalties. Also, “inflation is embedded into blanket licenses,” wrote Page, meaning higher prices increase collections when the royalties are calculated as a percentage of revenue. Finally, as CISAC’s Gadi Oron has noted, CMOs have improved collections through a combination of content identification and improved licensing terms.
There’s a chance Page’s $41.5 billion figure is low. The estimate incorporates global recording revenue tallied by the trade group IFPI. But as Page notes in his report, MIDiA Research “has arguably done more research” on segments undercounted by IFPI’s various members, including the do-it-yourself artists who account for 10% of global streams, indie labels and the South Korean market. MIDiA Research put the value of global recorded music in 2022 at $18.9 billion, about 8% greater than the IFPI’s figure of $17.5 billion.
If MIDiA’s methodology is correct, says Page, the value of global copyright is closer to $45 billion than $40 billion and could be $50 billion sooner than people expect. When the music business hits that threshold, it will have doubled since Page’s 2014 report put the global value of music copyright at $25 billion.
Shares of SiriusXM gained 20.1% this week following the company’s third-quarter earnings on Tuesday (Oct. 31) that showed the satellite radio company, which also owns music streamer Pandora, was more profitable despite flat revenue and small losses of self-pay satellite and Pandora subscribers.
Shares of SiriusXM rose to $4.95, its highest closing price since Aug. 3. With the help of a 155,000 increase in promotional subscribers, the company’s total satellite radio subscribers were flat at 34 million. Revenue was unchanged from a year ago at $2.27 billion, but SiriusXM’s net profit grew nearly 50% to $363 million.
Investors will be watching intently next Wednesday (Nov. 8) when SiriusXM unveils a new streaming app as well as in-car innovations and new programming. “This leading content and upcoming product upgrade will be paired with our unmatched business model, which we expect to continue delivering significant and growing free cash flow in the years ahead,” said CEO Jennifer Witz during Tuesday’s earnings call.
The 20-stock Billboard Global Music Index gained 6.9% to 1,394.40, its best week-on-week performance since the index gained 7% in the week ended Nov. 25, 2022. Last week, the index almost fell into correction territory — a 10% decline from its recent high — but this week’s gains reduced the deficit to the high of 1,447.32 (week ended July 21) to 3.7%.
Eighteen of the index’s 20 stocks finished the week in positive territory. Of the two stocks to decline this week, Hipgnosis Songs Fund dropped only 0.8% while Abu Dhabi-based Anghami fell 15.9%.
Led by SiriusXM, the index’s three radio stocks had an average weekly gain of 13.3%. iHeartRadio, the largest radio company in the United States, gained 16.8% to $2.50. The company will report quarterly earnings on Tuesday (Nov. 9). Cumulus Media shares improved 2.9% to $4.91. Additionally, the index’s four live music companies gained an average of 8%, while record labels and publishers as well as streaming companies had average one-week gains of 3.8%.
Round Hill Music Royalty Fund was removed from the index this week after the completion of its $468 million acquisition by Concord. At the acquisition price of $1.15 per share, the London-listed Round Hill Music Royalty Fund gave investors a 47.4% year-to-date return.
Stocks everywhere enjoyed a strong week as the U.S. Federal Reserve left interest rates unchanged on Wednesday, leading investors to predict the central bank would forgo further rate hikes. In the United States, the Nasdaq composite rose 5.9% and the S&P 500 gained 5.2%. In the United Kingdom, the FTSE 100 rose 1.7%. South Korea’s KOSPI composite index gained 2.8%.
Live Nation shares rose 10.9% after the company’s third-quarter results on Thursday showed that the company hit all-time records in revenue and adjusted operating income (AOI). Total revenue reached $8.2 billion, up 32% year over year, and AOI rose 35% to $836 million. Ticketmaster revenue grew 57% to $833 million in the third quarter. Through mid-October, Ticketmaster sold 140 million tickets to Live Nation events — more than the 121 million sold in full-year 2022.
Even though consumers are feeling pinched by inflation, demand continues to be strong across venue sizes and geographies, according to president/CEO Michael Rapino. “I have weekly booking calls with the over 40 presidents around the world and we talk about from clubs up to stadiums and festivals,” Rapino said during Thursday’s earnings call. “We have not seen anything taper off in any sense.”
Other stocks surpassing a 10% gain were Chinese music streamer Cloud Music, which gained 12.7% to 96.35 HKD ($12.31), and New York-based Reservoir Media, which gained 12.1% to $5.95. Reservoir Media will release its latest quarterly results on Tuesday (Nov. 7).
Apple reported a blowout quarterly earnings report, with its serviced division (which includes Apple TV+, Apple Music and other media-related offerings) hitting another new record with $22.3 billion in revenue.
That was up from $19.2 billion a year ago, and from $21.2 billion in its last quarter.
In total, Apple delivered revenues of $89.5 billion in its fiscal Q4, with profits of $23 billion, reflecting strong demand for its iPhone line.
“Today Apple is pleased to report a September quarter revenue record for iPhone and an all-time revenue record in Services,” said Tim Cook, Apple’s CEO, in a statement. “We now have our strongest lineup of products ever heading into the holiday season, including the iPhone 15 lineup and our first carbon neutral Apple Watch models, a major milestone in our efforts to make all Apple products carbon neutral by 2030.”
Apple is seeking to improve its revenues and margins in its services business, raising prices on Apple TV+ and other subscription offerings last month. Apple TV+ now costs $9.99 per month, though it is also included in the Apple One subscription bundle, which includes products like Apple Arcade, Apple News, and extra cloud storage.
“We achieved all time revenue records across App Store, advertising, Apple Care, iCloud, payment services and video, as well as the September quarter revenue record on Apple Music,” Cook added on the earnings call.
As for Apple TV+, Cook touted Martin Scorsese’s new movie Killers of the Flower Moon, and noted the awards that ths ervice has garnered.
“We’re telling impactful stories that inspire imagination and stir the soul,” Cook said. “Making movies that make a difference is also at the heart of Apple TV+, and we were thrilled to produce Martin Scorsese’s Killers of the Flower Moon, a powerful work of cinema that premiered in theaters around the world last month.”
Apple CFO Luca Maestri added on the call that Apple’s services division now has “well more than one billion” subscribers.
Also on the call, Cook confirmed that the company is investing significantly in generative artificial intelligence: “Obviously we have work going on, I’m not going to get into details about what it is because as you know, we don’t we really don’t do that,” Cook said in response to a question from an analyst. “But you can bet that we’re investing, we’re investing quite a bit. We’re going to do it responsibly. And you will see product advancements over time where those technologies are at the heart of them.”
This article was originally published by The Hollywood Reporter.
It’s Friday! That means another spin around the Executive Turntable, Billboard’s comprehensive(ish) compendium of promotions, hirings, exits and firings — and all things in between — across the music industry.
Guitar Center tapped longtime board member Gabriel Dalporto to be the musical instrument re-and-etailer’s new CEO, effective immediately. The appointment follows the sudden departure of Ron Japinga, who joined the company in 2014 and has served as CEO since 2016. The company gave no reason for Japinga’s exit but did stress that he will no longer serve as a member of the board. Other changes in the offing include the return of Tim Martin as chief financial officer and the appointment of Ken C. Hicks as chairman of the board. Dalporto most recently served as CEO of online education platform Udacity, and he previously served in various senior roles at online lender LendingTree. He has been a member of the company’s board of directors since 2018. Leading that board, effective immediately, will be Hicks, currently the executive chairman of Academy Sports. Additionally, Martin is back in the CFO spot, which he occupied from 2012-2022. (He spent his break from slinging guitars as COO and CFO of Torrid Holdings, a direct-to-consumer apparel brand specializing in plus-size clothing.)
Sean Michael Gross, the head of WMG’s classical music unit in the UK, has added North America to his remit. As vice president of Warner Classics UK & North America, Gross will split his time between London and the States, and continue to report to Warner Classics president Alain Lanceron. The California native joined Warner in 2021 and in that short time has grown the label’s market share and workeed with a roster that includes Fatma Said and Abel Selacoe, among others. Prior to joining WMG, Gross accumulated professional credits at IMG Artists, 21C Media Group and Askonas Holt. “Sean has been a tremendous asset to our global Classics team in the last couple of years,” said Lanceron. “He is always at the forefront of change in the classical music sector, taking an innovative approach that embraces the future.”
The Orchard‘s largest office outside of NYC has given its co-leaders some title bumps. Effective immediately, Ian Dutt has been elevated from managing director to president of UK operations, while Chris Manning will now put managing director, UK and Europe on his business cards instead of general manager. Both are based in London — where they oversee a team of 150-plus employees and will continue to lead global efforts and day-to-day operations for the Sony-owned distribution company. Dutt joined Orchard in 2016 as part of its merger with Sony RED UK, where he was MD. Manning began his Orchard journey in 2008 and has held a plethora of positions there including label and operations manager, and senior director of international operations. They’ll continue to report to Colleen Theis, president and COO. “Ian and Chris will continue to spearhead operations for our artist and label partners, expand our network, and seek out amazing independent talent in our second biggest market,” said Theis. “Together, they are an unparalleled team who work tirelessly to connect our clients from the region to audiences worldwide.”
Bay Area indie label, publisher and distributor EMPIRE elevated industry veteran Elliott Peters to general counsel. Peters, who joined the company in 2020 and was most recently svp of global business, will now oversee EMPIRE’s legal and business affairs and be the fine print point person for all deals with DSPs and retailers. Prior to EMPIRE, Peters spent nearly two years as vp of business and legal affairs at SoundCloud, and before that held executive roles at RDIO — as it was being sold to Pandora — and Apple. He kicked off his music industry career in 2000 at Warner Music Group and over the course of 10 years at the major, rose to svp of head of digital and legal affairs. “Elliott has been tremendous in helping EMPIRE scale globally,” said EMPIRE CEO and founder, Ghazi. “As we continue to enter new markets around the world, Elliott will spearhead our efforts worldwide.”
Laura Mendoza joined Sony Music Publishing as managing director of its Colombia office, effective immediately. She’s based in Bogotá and reports directly to Jorge Mejia, Sony Music Publishing president & CEO, Latin America and U.S. Latin. A creative executive with 20-plus years in the music industry, Mendoza most recently served as head of label and artist solutions Central America, Andean & Southern Cone Region at Believe Distribution Services. Prior to that, she worked at Altafonte Music Network and at EMI Music Colombia. In her new role at Sony Music Publishing, she’ll be responsible for overseeing SMP Colombia’s business operations and advancing its growth initiatives, working closely with the company’s Latin America and U.S. Latin teams, as well as industry partners across the region. “It is an honor to work alongside so many talented professionals across the company,” Mendoza says. “Both the challenge and the opportunity of developing the careers of such a fantastic roster will allow me to contribute to a better industry and to the growth of SMP songwriters globally.” –Sigal Ratner-Arias
ICYMI: BMG terminated about 40 employees on Oct. 27, including executive vp of global repertoire Fred Casimir and senior vp of global repertoire Jason Hradil. The cuts effectively halted its international marketing department for recordings as well as its Modern Recordings label … Sounds Australia veteran Esti Zilber will take the reins at the national music export body, succeeding Millie Millgate as executive producer.
Kobalt promoted Sean Dishman to senior director of creative. The Los Angeles-based exec has clocked nine and a half years at the publishing administration company and was most recently creative director, having signed acts such as Madison Cunningham, Mac DeMarco, Jamila Woods, Poppy and Magdalena Bay, as well as some of Kobalt’s more whimsically named clients like King Gizzard & The Lizard Wizard and Totally Enormous Extinct Dinosaurs. Kobalt also credits Dishman with major assists in releases by Lil Yachty, The Wombats and Yeek, among others. “[Dishman’s] knowledge & passion for music spills over into all that he does for our clients,” glowed Jamie Kinelski svp and head of West Coast creative. “His impeccable taste makes him a valued member of our global creative team, and I am thrilled to see continued growth at Kobalt.”
Nashville-based writer/artist development company Eclipse Music Group promoted Penny Gattis to partner. As a co-owner, Gattis will continue overseeing the publishing division, while taking on an expanded role in the overall strategic direction of the firm, including the Eclipse Management and Penumbra Records divisions. Gattis joined Eclipse as general manager of publishing in 2020 and has since been instrumental in earning cuts with artists including Morgan Wallen, Luke Bryan and Jake Owen, as well as sync placements with brands including Lexus, Pizza Hut and Taco Bell. Gattis’s career also includes time at Round Hill Music, BMI and Tom-Leis Music. “Penny has the perfect combination of creativity, tenacity and relationships to support our creative clients and to advance Eclipse to the next level,” said Kurt Locher, principal of Eclipse Music Group.
Entertainment business management firm FBMM has named Jen Conger and Erica Rosa as owners. Conger has expertise in royalty analysis, domestic and international touring, sponsorship and endorsement deal negotiations, commercial insurance and estate planning. She oversees over $90 million in revenue each year on behalf of her clients. Conger also became the first female associate business manager in the firm’s history, and five years later, was promoted to business manager. Rosa joined FBMM as the firm’s first full-time royalty employee and was named vp, royalties and contract compliance in 2021. From 2020 to 2023, she relocated to Los Angeles to help establish the company’s Los Angeles office. Rosa has played an essential role in multiple eight- and nine-figure catalog sales and also oversaw unpaid royalty recoveries and prevention of loss revenues of over $200 million.
Blue Raincoat Music, an artist management, publisher and label all rolled into one, increased it London office by four in one fell swoop. Founded in 2014 by Robin Millar and former Chrysalis CEO Jeremy Lascelles, the Reservoir-owned company welcomes…
Dan Walton, project manager of catalogue reporting to Dermot James. Previously a product manager at Demon Music Group.
James Batsford, project manager reporting to Dermot James. Previously a freelance label consultant, but before that managed releases at Domino Records.
Ben Asplin, copyright manager of commercial music operations reporting to Tina McBye. Previously a royalties manager at BMG.
Tian Anderson, artist management assistant reporting to Amy Frenchum and Rupert King.
SMACK added Jaice Cousins as digital coordinator. The Ohio native and Belmont University graduate previously served as product data management coordinator for Warner Music Group. In her new role, Cousins will oversee SMACK’s social media management across all digital platforms, as well as contributing to marketing campaigns and strategy for SMACK clients including Walker Hayes, Kylie Morgan and Jenna Davis. Cousins will report to director of marketing and artist development Molly Bouchon.
“Outlaws & Mustangs” singer Cody Jinks has put together a new, independent team as he gears up for the release of his next album in 2024. The team includes Malia Barrett (president, Late August Records), Amber Dee (director of tour marketing), Joe Greenwald (vp of radio and streaming, Late August Records), Logan Hacker (day to day manager), Keith Kilgore (tour manager) and Liz Slyman (director of marketing). Jinks said in a statement, “As my team and I traverse the next part of this journey, it’s hard not to think that now I am truly more independent than ever. That is exciting.”
Point72 Ventures hired Brett Kernan as a new advisor at the investment firm. Since its 2016 launch by New York Mets owner Steve Cohen, Point72 has invested in 120-plus fintech, enterprise and consumer companies, including Range Media, Mirror and Hook. According to Kernan, he holds the distinction of being employee #1 at music tech company Splice, where he handled music partnerships for over seven years before co-founding early-stage investment group Wave7, where he has served as individual advisor for Soundful and JioSaavn.
The MAP Fund, a financial supporter of original live performance projects across the United States and its territories, appointed David Blasher as executive director. He had been interim executive director since the beginning of the year. Prior to joining MAP Fund, Blasher was director of global legal operations and innovation at NBCUniversal. MAP Fund also appointed Meital Waibsnaider as its new board chair and Ron Ragin as the inaugural director of programs.
Multi-discipline AI company Futureverse announced that Artist Partner Group founder and CEO Mike Caren has joined as a founding partner of its text-to-music venture called JEN. Expected to release in early 2024, Jen can form up-to three minute songs as well as help producers with half-written songs through offering ‘continuation’ and ‘in-painting’ as well. Other JEN principles include Futureverse co-founders Shara Senderoff and Aaron McDonald, as well as Alex Wang, the company’s head of AI research.
Last Week’s Turntable: Three Six Zero Adds Caron Veazey as Partner
MNTGE, a vintage clothing brand that integrates blockchain technology into its garments, partnered with Grimes‘ Elf. Tech initiative for a limited-edition merch collaboration. The deal will encompass vintage, one-of-one NFC chip-enabled vintage t-shirts and denim jackets, screen-printed with AI graphics designed by Grimes on the back and an Elf. Tech graphic screen-printed on the sleeve. The NFC chips will provide both a digital rendering of the garment and a certificate of authenticity, as well as the ability to preview new music from Grimes by scanning the chips on a smartphone. The Grimes + MNTGE jacket retails for $200 and the t-shirt retails for $50 here.
In other Grimes-related news, CreateSafe — the company whose Triniti API powers Grimes’ Elf.Tech platform — partnered with music technology platform Slip.stream to make more than 200 GrimesAI songs available to creators and fans in their video content and live-streams on any platform. Grimes unveiled the Elf.Tech platform in beta this past May, allowing fans to create and upload songs by cloning the singer’s voice.
DistroKid struck an expanded agreement with TikTok that will make music from artists distributed by DistroKid available across CapCut and TikTok’s Commercial Music Library as well as its recently unveiled social music streaming service TikTok Music, which is now available in Brazil and Indonesia and in beta in Mexico, Australia and Singapore. This is the first time music from DistroKid artists will be available on TikTok Music.
Additionally, DistroKid partnered with digital audio workstation FL Studio to distribute works uploaded to FL Cloud — described as a new service within the FL Studio 21.2 update that will offer producers a growing library of royalty-free loops and one-shots, unlimited AI-powered mastering and unlimited music distribution to all major digital streaming platforms.
Esports company GameSquare Holdings entered into a “definitive agreement” with FaZe Holdings to acquire online gaming and youth culture brand FaZe Clan “in an arm’s length all-stock transaction,” according to a press release. The release states that FaZe Clan and GameSquare generated annual revenue of roughly $138 million and reached a 26.3% gross margin last year. “Management expects to realize over $18 million in run-rate cost savings from the FaZe Clan acquisition, supported by reduced duplicate corporate costs and other cost savings,” the release continues. The combined company plans to give guidance following the close of the transaction, after which Richard “FaZe Banks” Bengtson will take over as FaZe Clan CEO; Thomas “FaZe Temperrr” Oliveira will take over as president; and Yousef “FaZe Apex” Abdelfattah will take over as COO. The transaction is expected to close in the fourth quarter of 2023, subject in part to the approval of FaZe Clan and GameSquare shareholders.
The Circuit Group, a recently formed entity designed to create business opportunities around artists’ intellectual property, signed a strategic partnership with U.K.-based house music label Defected Records. Under the deal, The Circuit Group will offer Defected, along with its sister- and sub-labels, expertise across its suite of services to help the label build its presence in North America. In turn, Defected will support The Circuit Group as it expands its presence in the United Kingdom, Europe and other territories globally.
Defected Records also signed an agreement with Reactional Music, the maker of an interactive music engine for video games. Under that deal, Defected licensed the masters for a selection of tracks from its catalog for use on Reactional’s music delivery platform and personalization engine for game developers. Songs to be made available under the deal include cuts from Bob Sinclar, Dennis Ferrer, Kings of Tomorrow, MK and The Shapeshifters, CamelPhat, Honey Dijon and John Summit.
Michael Bublé launched Fraser & Thompson, a new whiskey brand in partnership with longtime friend and master distiller and blender Paul Cirka. The whiskey is blended and bottled by Heaven Hill in Bardstown, Ky. and will be brought to market by spirits incubator WES Brands.
Warner Music’s ADA renewed its longstanding partnership with independent label LAB Records, which has released music by artists including Tommy Lefroy, BEKA, Beach Weather, Antony Szmierek, Des Rocs, Aziya, Crawlers, The K’s, Nell Mescal and Yoke Lore.
Sphere Entertainment partnered with Madison Square Garden Sports on a deal that will see next-generation Las Vegas venue Sphere become the official jersey patch partner of the New York Knicks. The Sphere logo will now appear on all Knicks game jerseys during both home and away games in the 2023-24 season; it will also be on Knicks practice jerseys, warm-up shirts and jerseys sold at Madison Square Garden’s in-arena retail locations as well as on shop.MSG.com.
Copyright management firm Pex and its rights initiative, RME, entered a collaboration with copyright protection platform Cosynd. Under the partnership, RME’s community of creators and rightsholders can utilize Cosynd’s copyright registration API to register their works with the U.S. Copyright Office.
ASM Global struck a partnership with Adventist Health that will see the California City of Stockton’s 10,000-seat facility renamed Adventist Health Arena. Upgrades to the arena will include a new 360-degree LED center-hung, ribbon boards, back-of-house enhancements and more.
Elsewhere, ASM Global signed a deal with the City of Andover, Kans., to manage and operate the Capitol Federal Amphitheater for five years beginning on Jan. 1, 2024. It also renewed its management agreement with the Jekyll Island Convention Center in Jekyll Island, Ga. through 2029, with an option for an additional five-year renewal after that.
Investors want serious, swift changes to make Hipgnosis Songs Fund more profitable and stable. That was the key takeaway from more than 80% of investors’ votes last week on how the London-listed trust that owns rights to songs by Journey, Bruno Mars and Rihanna should proceed. While the landslide vote opened the door to possibly winding up the pioneering publicly traded music royalty trust, it doesn’t spell an immediate end — more like the long beginning of company-wide rethink to improve the company’s stock price.
More than 80% of Hipgnosis investors voted in favor of the board drawing up “proposals for the reconstruction, reorganization or winding-up of the company to shareholders for their approval within six months,” the board said in a regulatory filing.
“These proposals may or may not involve … liquidating all or part of the company’s existing portfolio of investments.” Adding further uncertainty to the fund’s future is that, while its board devises a plan to restore regular dividends and boost a lagging share price, it must simultaneously find replacements for its chair, Andrew Sutch, and two other members, after those three either resigned or failed to win re-election to the board seats last week.
Sources say Round Hill Music Royalty Fund’s outgoing board chair, Rob Naylor, is being considered to chair of Hipgnosis Songs Fund’s board. Naylor is a former London banker and currently the chief executive officer of Intuitive Investments Group, a fund that invests in high growth life sciences companies. Naylor would have been closely involved in negotiating Round Hill’s $469 million sale of its public fund to Concord, which shareholders approved in mid-October and closed this week.
Jefferies analyst Matthew Hose says one route the board might take would be similar to Round Hill’s sale — Hipgnosis Songs Fund could sell itself to its sister fund Hipgnosis Songs Capital, which is jointly run by Mercuriadis’ investment advisor Hipgnosis Song Management and private equity goliath Blackstone, or it could sell itself just to Mercuriadis’ investment advisor Hipgnosis Song Management.
Although investors soured on an earlier plan to sell about 20% of the Hipgnosis Songs Fund to Hipgnosis Songs Capital, with Blackstone’s backing it remains among the most capable buyers and it knows the portfolio of songs well, analysts agree. There’s also a clause in the investment advisory group’s contract that says if the public fund ends its contract with investment advisor, the investment advisor can buy out the fund. The clause, which was laid out in the fund’s 2018 filings when it went public, was intended to help Mercuriadis reassure artists whose catalogs Hipgnosis acquired that he would always stay on as the relationship manager in charge of their songs and legacy.
While Hose says a sale to Mercuriadis and the investment manager could benefit all parties, “the question is whether this board is able to propose an ‘open’ sale process for the portfolio that extracts this fair value for shareholders, while still honoring the manager’s option, or will the existence of the option simply prohibit any realistic bids?”
Analysts who cover investment trusts like Hipgnosis Songs Fund say that about 80% of the time following a no continuation vote, a fund winds up, either through selling its assets to multiple buyers or all of the portfolio to a single buyer and then distributing those proceeds to shareholders minus any debt repayments.
The deliberation over which direction to take the fund will also rely on an updated valuation of the portfolio, which Hose says will likely see a downgrade since the disclosure in October that the fund’s valuers had inaccurately estimated certain CRB III royalty funds.
“We see the potential for weakness in the portfolio,” Hose says. “An independent valuation of the portfolio by a new valuer that gains the trust of the market … could be crucial here.”
SYDNEY, Australia — Sounds Australia stalwart Esti Zilber will take the reins at the national music export body, succeeding Millie Millgate as executive producer.
With effect from Monday, Nov. 20, Zilber, currently creative producer, will lead a team that includes Glenn Dickie (export music producer), Dom Alessio (digital export producer) and Larry Heath (associate producer).
“Esti has been such an integral part of the growth of Sounds Australia over the last 13 years,” comments Millgate, who leaves the organization to lead Music Australia as its inaugural director, “and I’m truly excited for the future of the program knowing what a compassionate and formidable leader she will be. Sounds Australia is in extremely safe hands.”
Joining Sounds Australia in 2010, Zilber has played a key role in developing and delivering Sounds Australia’s program around the world. “Her work with inbound buyers across Australia’s domestic music conferences has seen thousands of invaluable connections made between international industry and local artists and managers,” reads a statement announcing her promotion.
During the peak-pandemic years of 2021 and 2022, Zilber managed Sounds Australia’s Export Stimulus Program, which saw $1.2 million distributed, across three rounds, to over 320 Australian artists, crew and music professionals. That financial support was used to realize “significant career-defining moments” in global markets and earn much needed income after 18 months of cancelled work due to the impacts of the pandemic.
Prior to working at Sounds Australia, she was the executive assistant to legendary concert promoter Michael Chugg and managed the offices of Chugg Entertainment and, before that, worked in book publishing in New York and was the executive producer arts and culture at FBi Radio, the Sydney community radio station.
Sounds Australia will next year celebrate its 15th anniversary. Since its launch in 2009, Sounds Australia has managed the presentation of over 2,200 Australian artists on global show stages, covering 86 different international events, in 75 cities, across 26 countries. Its presence can be felt at the Aussie BBQ and Australia House at SXSW, and, for its 10th anniversary in 2019, the Central Park SummerStage with Australian artists San Cisco, Hermitude, The Teskey Brothers, WAAX, Tkay Maidza Australian Music Prize winning Indigenous hip-hop act A.B. Original.
Sounds Australia will “imminently” kick start a recruitment process for Zilber’s replacement, reads a statement.