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The Record Plant, the storied Los Angeles recording studio where Michael Jackson, Prince, Beyoncé, Lady Gaga and dozens of other music superstars made classic albums for decades, is one step closer to a sale now that veteran producer Rafa Sardina has purchased its assets for $500,000 during a bankruptcy proceeding last week. Sardina, who has won four Grammys and 13 Latin Grammys and has worked with Jackson, Stevie Wonder and Sheryl Crow, among others, takes over ownership of dozens of speakers, sound boards, microphones, cassette decks, CD recorders and other valuable sound equipment that was the heart of the studio for decades.
Founded in 1968, the Record Plant has been the standard for music production due to its high-end equipment and an emphasis on service and luxury that made megastars feel like they were in their own homes. Thanks to perks like a hot tub room, stars such as John Lennon and Fleetwood Mac took over studio rooms in the Plant’s early days; after it moved to its current location on North Sycamore Avenue in Los Angeles, Beyoncé rented every room to make her album Lemonade and Kanye West and Pharrell rode motorized scooters through the hallways.
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Sardina, who interviewed successfully at Record Plant early in his career before deciding to work at a different studio, did not respond to requests for comment about why he made the purchase offer. A lower bid, according to court documents, came from Italian producer Patrizio Moi, who has occupied a Record Plant studio room known as Digi-Plant since 2014. He offered $50,000.
Moi and the studio’s latest owner, Philip Lawrence of Bruno Mars‘ songwriting team, the Smeezingtons, have been battling over possession of the Record Plant for several years. Moi has declared in U.S. district court that Lawrence and his associates first offered him a co-ownership deal, then, in 2020, sold him the entire studio for $1. The two sued each other until last year, when Lawrence’s company, Philmar, declared bankruptcy, forcing the court to sell the Record Plant’s assets in order to pay off his debts. Moi argued to the court that he should take over the equipment and other property, but the judge, Victoria Kaufman, ruled against him.
Moi has said he hopes to take over the studio and run it as if it never closed. That will be harder to do so now that the studio’s high-tech equipment is likely to be removed, but he remains optimistic. Per his earlier agreement with Lawrence, he owns the Record Plant trademark and website domain. It is possible that Moi makes a deal with the land owner, CIM Group, to take over the lease.
“There’s a lot of moving pieces,” Moi says by phone.
However, the bankruptcy court’s trustee, Amy Goldman, disputed the previous arrangements between Lawrence and Moi, because Lawrence “retained possession of the property” and never transferred it to Moi even after their 2020 agreement. The judge agreed with Goldman — effectively denying Moi’s claim to any of the equipment or other property inside the studio. “The property can be sold free and clear,” Kaufman wrote last week.
Sardina’s purchase of the equipment, which includes multiple valuable microphones, including what Moi calls “stuff you cannot find anymore,” has not fully closed. The court’s trustee Goldman must “deliver all relevant and related sale documents to effectuate and close the sale and related transactions,” according to the judge’s ruling.
The $500,000 set to be paid by Sardina’s company, Firefly Music Row, will be used to pay off the debts of Lawrence’s company, Philmar, according to court documents.
Since Lollapalooza ushered in the era of the modern music festival in the early 1990s, one main power source has been driving them all: diesel generators. These mobile devices have been particularly crucial to the festival industry given that many of these events take place in open fields and parking lots that aren’t connected to the power grid.
But generators are also environmentally problematic. At the biggest festivals, they can burn through thousands of gallons of diesel fuel over a weekend, spewing carbon emissions that altogether make them the second biggest carbon emitters in live music, after emissions created by fan travel. They’re also loud, and they kind of stink.
“You can hear them from the stage, you can smell them from the stage,” says Adam Gardner of the band Guster, and who also co-founded the music sustainability nonprofit REVERB. “It’s just unpleasant.”
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But the live events industry, and the festival industry in particular, is amidst what seems to be a sea change in how events are powered. And increasingly, the more viable alternative to the diesel devilry is simple — batteries.
Last month, the Lollapalooza 2024 mainstage was powered entirely by batteries, which kept the lights, sound and other power components on during performances by Chappell Roan, Megan Thee Stallion, SZA, The Killers and more. A rep for Lollapalooza tells Billboard that with this effort, the festival saw a 67% reduction in both fuel use and greenhouse gas emissions over prior years, when batteries had not been used. This equates to the sparing of 26 metric tons of greenhouse gas emissions, or the equivalent to five homes’ electricity use for a year. The use of batteries also saved over 3,000 gallons of fuel. Lollapalooza says this initiative made it the first major U.S. festival to power its mainstage on a hybrid battery system.
“I’ve heard some rumors about competitors being maybe a little jealous that we were the first ones to do it,” says Jake Perry, the director of operations and sustainability at C3 Presents, which produces Lollapalooza.
Lolla’s effort helped demonstrate that what may seem risky is actually a reliable alternative that’s evolving power options for live events. “There’s a lot of fear and apprehension over providing the power that’s turning the show on,” says Perry. “But there were, like, zero issues.”
The battery set up at Lollapalooza 2024
Dusana Risovic
REVERB, a 501c3 nonprofit that’s focused on sustainability in music for 20 years and was co-founded by Gardner and his wife, environmentalist Lauren Sullivan, estimates that each year, U.S. festivals burn the equivalent of 46 million miles driven by gasoline powered vehicles. As battery technology evolves, they’re becoming a more viable solution to the issue, if organizers can be convinced that they’re reliable enough to use.
“If there’s a choice between sustainability and reliability, everyone’s going to choose reliability,” says Greg Landa, CEO of CES Power, the industry’s leading mobile power provider for festivals. “The pop star doesn’t want to be on stage if there’s no audio or lighting.”
But early adopters have demonstrated batteries’ efficacy. In May, Northern California’s two-day Mill Valley Music Festival was powered entirely by batteries. At the 2023 edition of Willie Nelson’s Luck Reunion near Austin, Texas, the REVERB team powered all four stages with batteries, setting up a temporary on-site solar array to charge them. By 2024, the entire event was battery powered, with the only generators on site being inside the tour buses of the artists playing. In total, 350 gallons of diesel fuel were used at Luck in 2022, with that number down by 90% in 2023 and 100% in 2024, tour buses notwithstanding. This year, REVERB also brought battery power to SXSW, using it to power an outdoor stage for public performances by artists including Bootsy Collins.
REVERB and Overdrive Solutions’ solar setup at Luck Reunion 2024
Courtesy of REVERB
These efforts were backed by REVERB’s Music Decarbonization Project, which aims to eliminate carbon emissions created by the music industry. The Project made headlines in 2023 when it brought a temporary solar array to Lollapalooza in Chicago, using it to charge the battery system that powered the mainstage during a headlining set from Billie Eilish, arguably the modern artist most vocal about sustainability. (Eilish helped launch and fund REVERB’s Music Decarbonization Project in 2023.)
Through this initiative with Eilish, “we were able to help Lollapalooza [get] to where they are now, where they were able to take it upon themselves,” says Gardner, “which is exactly the point of the Music Decarbonization Project.”
Lollapalooza’s use of battery power in 2024 came after years of the fest searching for the battery technology to make it happen, with C3 testing batteries from myriad manufacturers over the last few years at events including Austin City Limits and North Carolina’s High Water.
“The technology is evolving very quickly,” says Perry. “This year it finally got to a point where it was big enough and capable enough to put it into an installation this size.” The effort falls into Live Nation’s goal of cutting its emissions by 50% by 2030.
Battery power at a festival functions in essentially the same way as in a hybrid car; think of battery systems as a hybridization of the stage. How long batteries last depend on what’s being powered (i.e. a stage, a lighting source, a food vendor, etc.), how long it’s powered for and the battery’s storage capacity.
Partnered with CES, Lollapalooza 2024 used lithium ion batteries made by industrial equipment manufacturer Atlas Copco. All batteries, regardless of manufacturer, can carry only a certain amount of charge and must have charge added during the event. Each battery is connected to a secondary power source that charges it back up when necessary.
As such, how green batteries actually are varies by the way they’re charged. Batteries can be powered off the grid if utility power is available, or from a generator running off diesel (the most common option) or biodiesel, which has less of a carbon footprint but can be hard to source. Solar panels don’t require any fuel to be burned, although setting up the necessary solar array at an event can be time- and space-intensive.
But even when using diesel backup generators, batteries are more efficient. Landa says that if the company put a 60 kw battery at an event site, it’s unlikely the battery would ever be using that full 60 kw power, with levels more likely to be at 30-45 kw depending on what it’s powering. At that rate, the battery would likely last four to five hours before being charged by the generator, thus using less fuel.
“That’s the hybrid approach we’re talking about,” Landa says.
Batteries also have built-in computers, making them able to report how much power they’re using at any given time. When they need to be charged, they automatically turn on their power sources. When they reach the necessary level of charge, they automatically turn this backup source back off. And because batteries are intelligent, if a failure occurs, they’ll instantly flip on the backup source to avoid power interruptions.
“They’re telling you everything in real time,” says Gardner. “You can literally monitor your power usage on an iPhone as it’s happening.”
According to Landa, the top mobile battery suppliers are currently Caterpillar, Atlas Copco and portable power solutions supplier POWR2. The Vermont-based Nomad offers transportable battery systems designed for rapid deployment and operation at the utility (or grid) level, although Alex Crothers of the Burlington-based music production company Higher Ground incorporated Nomad batteries into the company’s 2024 summer season, along with batteries from Overdrive Solutions. Crothers is currently exploring how to make these batteries into backup power for the venues he co-owns, given that the concert series only happens a few times a month due to the weather. Meanwhile, Overdrive Solutions provides battery power stations and systems and has partnered with AEG on myriad events, assisting with planning and on-site execution.
“A lot of them use the same technology in their guts,” Gardner says of all these products.
As battery technology improves, there could come a time when they can be charged with utility power before being transported to a festival, then run for the duration without being recharged. “That is not where we are today,” says Landa. “But that is the goal.” As batteries become more efficient, they’ll also likely become smaller, which will allow more of them to fit on a shipping truck and reduce costs and carbon emissions related to transport. Some batteries currently being made by Overdrive Solutions are already as small as a rolling suitcase.
The current hybrid battery model is what makes it possible for artists to say that their shows are completely battery powered, even though there are generators on site. “When you hear about Coldplay, they brought just as many generators as they brought batteries,” says Landa. “While Chris Martin was on stage, he may have been without any emissions, but there were diesel generators charging those batteries [after]. I’m not trying to greenwash this.”
At Lollapalooza 2024, generators ran on b14 biodiesel, a blend of diesel and biodiesel, with C3 partnering with CES and sustainability consultancy ZAP Concepts (who worked with Coldplay on their Music of the Spheres Tour, which pledged to reduce the band’s direct carbon emissions from production, freight and band and crew travel by at least 50%) to make the project a reality.
Of course, batteries have many festival applications beyond powering stages. REVERB worked with Coachella and Stagecoach to put up battery-powered light towers that were charged by solar. “Festival organizers loved it,” says Gardner, “because they didn’t have to run out to light towers on the outskirts of the festival in their golf carts and fill up the diesel generators.”
REVERB and Overdrive Solutions’ solar setup at Coachella
Courtesy of REVERB
Perry of C3 says that after the success of 2024, Lollapalooza will likely roll out additional battery usage incrementally, ultimately working to entirely replace the roughly 70 generators on-site annually. This endeavor will become easier as the general supply of batteries increases, as currently, Perry says, “these types of high-capacity batteries are low supply, high demand.”
He adds the price of the Lolla mainstage project was “not cheap,” with the festival partnering with CES, Live Nation’s sustainability program Green Nation and T-Mobile to cover costs. Landa says that while lithium-ion batteries currently cost about five times the price of diesel generators, batteries are rechargeable and built to work for a decade or longer, so buyers can spread the cost out over time.
Landa predicts that, as with electric cars and iPhones, prices will come down as technology evolves, with a trickle-down effect likely to occur. “Think electric vehicles at the top,” he says, “then think industrial applications, then think events and entertainment at the bottom of the funnel. We need the guys ahead of us to drive down cost and increase the supply chain so that it makes sense by the time it gets to the bottom of the funnel.”
As this happens, and as the industry grapples with sustainably — particularly in the face of events being affected by major and extremely freaky weather events — initiatives like REVERB’s work at Luck Reunion and SXSW and what C3 did at Lolla 2024 are meant to build broad trust, showing the industry what this technology is and that it works.
“I think the most positive feedback that I got was that it went unnoticed,” Perry says of Lolla’s batteries. “For me, an operational person, the biggest kudos is to be smooth and unseen.”
LONDON — Four months after opening its doors following a troubled, repeatedly delayed launch, Co-op Live has announced the appointment of Guy Dunstan as general manager and senior vice president of the United Kingdom’s biggest entertainment arena. Dunstan succeeds interim GM Rebecca Kane Burton, who was parachuted into the role in April when the venue’s original manager, Gary Roden, resigned several days after an ill-fated preview test event.
Dunstan, who has over 25 years of experience in the live events industry, most recently as managing director of arenas for NEC Group, where he was responsible for the 15,685-capacity Resorts World Arena and 15,800-capacity Utilita Arena in Birmingham, takes up the post at the Oak View Group-owned venue Oct. 21. As part of the executive reshuffle, Burton is promoted to executive vp of venue management for OVG International, where she will oversee the firm’s facilities, sports, entertainment, and hospitality divisions.
Located in the city of Manchester, Co-op Live is OVG’s first major project outside the United States and cost £365 million ($462 million) to build. Billed as a “game-changing” best-in-class arena facility, the much-hyped 23,500-capacity venue was originally due to open April 23 but high-profile construction delays led to multiple rounds of show cancellations before British rock band Elbow became the first act to officially play at the Populous-designed arena on May 14.
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Since then, Co-op Live has staged over 35 events, including shows by the Eagles, Pearl Jam, Liam Gallagher, Jonas Brothers and Megan Thee Stallion, and sold more than 900,000 tickets. In November, MTV’s Europe Music Awards (EMAs) will be held at the venue, marking the first time the event has been held in Manchester. Other upcoming bookings for 2024 include Paul McCartney, Janet Jackson, Crowded House, Glass Animals and Charli XCX.
“As we move into the next chapter of the venue’s story, Guy’s leadership will be a significant asset in helping us achieve our goals for Co-op Live to become the most sustainable arena in Europe and a first-choice venue for artists and fans worldwide,” said Jess Koravos, president of OVG International, in a statement announcing Dunstan’s appointment.
“What’s really exciting for me is that this venue has been specifically designed for live music and live entertainment,” Dunstan, a former chair and vice chair of the National Arenas Association, tells Billboard in an exclusive interview.
“When I first walked in and had a tour with [OVG chairman and CEO] Tim Leiweke I immediately said: ‘This is a dream to be able to work in a venue like this.’ Because everything has been designed to be focused on the customer experience and focused on the artist experience. That 365-million-pound investment means it is the top venue in the market, which makes it so exciting for me to be coming in to run it.”
Here, Dunstan discusses his vision for Co-op Live, his thoughts on the arena’s tumultuous launch, the recent furore around dynamic ticketing in the U.K. and more.
Congratulations on your appointment. What are you goals and long-term ambitions in the role?
A lot of great work has been done since the venue opened in terms of getting Co-op Live established and getting the promoters and artists used to working in the venue. That’s provided a great platform for me to be able to now come in, evaluate and focus on the areas that we need to carry on doing well, as well as those that we need to continually improve on. That’s what I’ve learnt in the past 28 years: our business doesn’t stand still. It’s continually evolving. Every day they’ll be a challenge that is thrown at you. And you have to have a structure and a team in place to deal with those unforeseen circumstances. Longer term, it will be about making sure that we’re providing the best possible experience for everybody who comes into the venue – front of house, back of house – and to thrive in that environment.
Co-op Live look inside
Nick Flynn
You were not involved with Co-op Live at the time of its troubled launch but as someone working in the live music business you must have followed the story closely.
My heart went out to the team. Every venue has had a day or a period where there’s been an issue, or a crisis and it has been under the spotlight. At that time, I reached out to one or two members of the team and took a very supportive view on that. What’s been great since then is how the team has bounced back and have really focused on the event programme. All the events that we’ve done since that opening period has really moved that [conversation] forward very quickly. 36 events have already been done. 900,000 tickets sold. In our business you have to learn, adapt, move on and grow. And I’ve definitely seen that in the time that I’ve been able to look at the venue.
What has been the reputational damage to Co-op Live from that chaotic three-week opening period and the many shows that were cancelled?
Things move forward very quickly. You’re as good as your last event and since the arena has been operating it’s been providing some great shows. Liam Gallagher was quoted as saying this venue is up there with [New York City’s] Madison Square Garden. The Eagles were saying the amenities, sight lines and facilities are what other venues should strive for. So that’s what I think is now driving that reputation. People are experiencing what the venue is all about and the focus is now on continuing that journey. We’ve got a venue that is first-in-class and that reputation and the awareness of that will grow every time we put an event on. When fans buy tickets and come into the venue that’s where their perceptions will really be built.
One of the biggest criticisms of Co-op Live from visitor reviews is the high price of food and drinks with a pint of beer costing almost £9.00 (almost $12.00). How do you justify those prices?
Since the pandemic there’s been a huge increase in cost in terms of food and beverage provision, so those prices are in line with the general arena market, and we have to reflect that in the price that we pass on to the consumer. What I would focus on there is the quality and range of the product [available]. When you walk into Co-op Live, one of the things that really strikes you is that the facilities feel like what you would expect to see on a high street or at the high-end range of clubs and bars. 15-20 years ago, venues at this level were essentially just bowls with a functional concourse for people to get around and some holes in the wall to get a burger and a warm pint. There was no real focus on the customer experience, but that’s where our industry has evolved over time and Co-op Live has taken it to a new level.
Courtesy of Oak View Group
Co-op Live is OVG’s first arena outside of the U.S. and marks the start of the company’s international expansion plans. What impact has OVG’s entrance into the European market had on the touring and arena business?
It’s really important from a U.K. point of view that we’re an attractive proposition to artists and promoters. We’ve got over 20 arenas operating in the U.K. and introducing top-quality facilities into the market is a real positive because the whole market benefits from that. What OVG have done is refreshed the focus on venue management. I think there was probably a complacency in there. The market was well established with the major operators and what OVG have done is come in and completely focused on venues providing great customer experience, state of the art facilities and venues that are actually designed for the product they are delivering. I think OVG have really shifted that focus and revolutionized the way that operators look at their own venues.
One of the biggest stories in the U.K. live music industry recently has been the furore over dynamic pricing on tickets for Oasis’ comeback tour next year. What are your views on dynamic ticketing and is it something that Co-op Live welcomes?
Ticket pricing and how that is set is very much an artist and promoter focus. As venues, we will work with promoters to make sure we are facilitating their needs and requirements, but the subject of [dynamic pricing] is something I’m going to leave to artists and promoters to take a position on. The venue has no benefit from how that plays out.
Nevertheless, a key part of your business model is offering concert goers a wide range of premium, and VIP upsell seating options?
We don’t want customers coming to just one show a year to see their favorite artist. We want them to have a really great experience when they’re here and want to come back again and again. And we’ve seen that through the growth of premium, which has really shifted. There was a gap in the [premium] offer that [Co-op Live] has helped meet. In the past there was a big gap between the highest-level premium and general admission and to many people premium was seen as not attainable. Now there’s different entry levels and it is affordable. The proof is in the pudding in that demand for those premium experiences, over and above just buying a standard ticket, has grown immensely.
Earlier this year, a Parliamentary committee called for a new voluntary tax to be added to arena and stadium tickets sold in the United Kingdom to support struggling grassroots music venues. Is that something OVG and Co-op Live supports?
Yes. Where there is an opportunity to put a voluntary levy or artist-led additional fund onto the ticket that can then go back into supporting the grass roots sector is something we will support as an organization. There’s a will and a momentum to take this forward right across the live music chain, from artists to promoters to venues. This is something we have to do that benefits the sectors that really need that support.
U.K. live music trade groups have also been calling for a cut in VAT sales tax on concert tickets, which is currently set at 20%, to bring the sector closer in line with other European countries. What impact would that have on the U.K. live business?
The benefit would be felt right the way through [the ecosystem] – from venues of our size and nature to the grass roots sector. There is clear evidence [from other European countries where the VAT rate is lower than the U.K.] that it does benefit the live business. [Cutting VAT on tickets] is something I completely endorse because hopefully it brings ticket prices to a level that is more attractive. But also it can be used to support other parts of the eco system and enable it to be more viable at a grass roots level.
One of the biggest issues facing the live sector post-pandemic is the rise in costs throughout all levels of the production chain, coupled with wider economic pressures impacting on consumer spending. How do you offset those cost rises and what are you doing to make sure live music remains affordable for fans?
That’s been a real challenge, particularly over the past three years or so in running venues of the size and scale that we operate. We have got to be really agile in the way that we manage costs and there’s costs that we have to continually review and monitor. Equally, we have to be mindful of how we deliver the customer experience and price sensitivity is really important. What I do see is that whilst the cost-of-living crisis has been a major issue globally, people are still really keen to come to entertainment venues. We’ve not seen an impact on ticket sales and what we have also seen is that people are still willing to spend money in the venues.
Harry Styles, who grew up in the small Cheshire village of Holmes Chapel, around 30 miles outside of Manchester, is an investor in Co-op Live and advised on aspects of the venue’s design. Can we expect to see him perform at the venue anytime soon?
When he is ready to tour, we’re ready and welcome for him to come and play and we really hope we’re the first venue [he chooses] when he comes back to play in the U.K. market.
The U.S. government and TikTok will go head-to-head in federal court on Monday as oral arguments begin in a consequential legal case that will determine if – or how — a popular social media platform used by nearly half of all Americans will continue to operate in the country.
Attorneys for the two sides will appear before a panel of judges at the federal appeals court in Washington. TikTok and its China-based parent company, ByteDance, are challenging a U.S. law that requires them to break ties or face a ban in the U.S. by mid-January. The legal battle is expected to reach the U.S. Supreme Court.
The law, signed by President Joe Biden in April, was a culmination of a years-long saga in Washington over the short-form video-sharing app, which the government sees as a national security threat due to its connections to China. But TikTok argues the law runs afoul of the First Amendment while other opponents claim it mirrors crackdowns sometimes seen in authoritarian countries abroad.
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In court documents submitted over the summer, the Justice Department emphasized the government’s two primary concerns. First, TikTok collects vast swaths of user data, including sensitive information on viewing habits, that could fall into the hands of the Chinese government through coercion. Second, the U.S. says the proprietary algorithm that fuels what users see on the app is vulnerable to manipulation by Chinese authorities, who can use it to shape content on the platform in a way that’s difficult to detect.
TikTok has repeatedly said it does not share U.S. user data with the Chinese government and that concerns the government has raised have never been substantiated. In court documents, attorneys for both TikTok and its parent company have argued that members of Congress sought to punish the platform based on propaganda they perceived to be on TikTok. The companies also claimed divestment is not possible and that the app would have to shut down by Jan. 19 if the courts don’t step in to block the law.“Even if divestiture were feasible, TikTok in the United States would still be reduced to a shell of its former self, stripped of the innovative and expressive technology that tailors content to each user,” the companies said in a legal brief filed in June. “It would also become an island, preventing Americans from exchanging views with the global TikTok community.”
Opponents of the law stress a ban would also cause disruptions in the world of marketing, retail and in the lives of many different content creators, some of whom also sued the government in May. TikTok is covering the legal costs for that lawsuit, which the court has consolidated with the company’s complaint and another filed on behalf of conservative creators who work with a nonprofit called BASED Politics Inc.
Though the government’s primary reasoning for the law is public, significant portions of its court filings include classified information that has been redacted and hidden from public view. The companies have asked the court to reject the secret filings or appoint a district judge who can ferret through the material, which the government has opposed because it will cause a delay in the case. If admitted into the court, legal experts say those secret filings could make it nearly impossible to know some of the factors that could play a part in the eventual ruling.
In one of the redacted statements submitted in late July, the Justice Department claimed TikTok took direction from the Chinese government about content on its platform, without disclosing additional details about when or why those incidents occurred. Casey Blackburn, a senior U.S. intelligence official, wrote in a legal statement that ByteDance and TikTok “have taken action in response” to Chinese government demands “to censor content outside of China.” Though the intelligence community had “no information” that this has happened on the platform operated by TikTok in the U.S., Blackburn said there is a risk it “may” occur.
In a separate document submitted to court, the DOJ said the U.S. is “not required to wait until its foreign adversary takes specific detrimental actions before responding to such a threat.”
The companies, however, argue the government could have taken a more tailored approach to resolve its concerns.
During high-stakes negotiations with the Biden administration more than two years ago, TikTok presented the government with a draft 90-page agreement that allows a third party to monitor the platform’s algorithm, content moderation practices and other programming. TikTok says it has spent more than $2 billion to voluntarily implement some of these measures, which include storing U.S. user data on servers controlled by the tech giant Oracle. But it said a deal was not reached because government officials essentially walked away from the negotiating table in August 2022.
Justice officials have argued complying with the draft agreement is impossible, or would require extensive resources, due to the size and the technical complexity of TikTok. The Justice Department also said the only thing that would resolve the government’s concerns is severing the ties between TikTok and ByteDance given the porous relationship between the Chinese government and Chinese companies.
But some observers have wondered whether such a move would accelerate the so-called “decoupling” between the U.S. and its strategic rival at a time when other China-founded companies, such as Shein and Temu, are also making a big splash in the West. Last week, the Biden administration proposed rules that would crack down on duty-free products being shipped directly from China.
For its part, ByteDance has publicly said TikTok is not up for sale. But that has not stopped some investors, including former Treasury Secretary Steven Mnuchin and billionaire Frank McCourt, from announcing bids to purchase the platform. However, even if such a sale would occur, it would most likely be devoid of TikTok’s coveted algorithm, leaving a big question mark on whether the platform would be capable of serving up the type of personally tailored videos that users have come to expect.
The political alignments on the issue are playing out in unconventional ways.
The law, which passed with bipartisan approval in Congress, had encountered resistance from some progressive and Republican lawmakers who voiced concerns about giving the government the power to ban a platform used by 170 million Americans. Former President Donald Trump, who tried to ban TikTok while in office, is now opposing a ban because that would help its rival, Facebook, a platform Trump continues to criticize over his 2020 election loss.
In court, free speech and social justice groups have submitted amicus briefs in support of TikTok, arguing it restricts the First Amendment rights of users and suppresses the speech of minority communities by disrupting a tool many of them use to advocate for causes online. Some libertarian groups with ties to ByteDance investor Jeff Yass have also filed briefs supporting the company.
Meanwhile, the Biden administration has received the backing of more than 20 Republican attorneys general, former national security officials and China-focused human rights groups who are asking the court to uphold the law.
Rimas Publishing, known for its influence in urban music and its management of stars like Bad Bunny, Arcángel and Eladio Carrión, is launching Faith Sounds, a platform dedicated to supporting and elevating Christian music artists, Billboard Español can announce today (Sep. 16) exclusively. The project seeks to offer a formal structure and advanced resources to Christian artists, providing collaboration opportunities, songwriting camps and a support network to boost their careers.
Faith Sounds is not a recent idea, but rather the evolution of a commitment that Rimas Publishing has maintained since its beginnings: supporting music with a positive message, Emilio Morales, managing director of Rimas Publishing, and Christopher Hernández, who will lead the marketing division, tell Billboard Español. “This was born from a need to be able to give even more visibility to these significant artists within our roster,” says Hernández. “The goal is to elevate them, create new collaborations and take them to different areas that perhaps they could not have reached on their own.”
The platform currently has a roster of 12 artists, covering a wide range of genres within Christian music. Among the most notable names are Lizzy Parra, a Christian trap singer from the Dominican Republic; as well as producer Barajas; Christian reggaeton artist Gabriel EMC; and gospel crooner Shamaai, all three hailing from Puerto Rico.
Additionally, they have established key alliances with companies such as Adarga Entertainment, and the Gospel Music Association (GMA), which has allowed them to access new opportunities in the niche and give greater visibility to their artists at important events such as the Dove Awards. According to Morales, the support of influential Christian companies has allowed Faith Sounds to gain credibility and establish itself in the sector.
Faith Sounds also seeks to foster collaboration between Christian and secular music artists. Camps have already been held in conjunction with Capitol Christian Music Group, with talents from both sides participating. “We invest in ensuring that our A&Rs, who are exposed to the biggest artists and producers in the world — the same person who may be serving Cris MJ, Lyanno, or Eladio [Carrión] one day — are the same persons who will be providing service to the client who is participating in the camp,” Morales adds.
With Faith Sounds, Rimas Publishing seeks to continue breaking patterns and offer Christian artists a broader and more diverse audience by breaking down barriers between Christian and secular music.
Billy McFarland, the convicted fraudster behind the disastrous Fyre Festival of 2017, has announced new dates for the long-awaited follow-up to the often-mocked Bahamian influencer event that landed him in prison for four years, owing victims more than $26 million in restitution.
Earlier this week, McFarland took to the Today Show to “announce” the new dates for Fyre Fest II, which he now says will take place April 25-28 on “a private island off the Caribbean coast of Mexico.” By most counts, however, this is the third or fourth version of a sequel to the event McFarland has broadcast to his followers. McFarland has been hyping up a follow-up to the disastrous 2017 Bahamas festival since he went to prison in late 2018, changing the date for his redemption-style event several times while carefully removing or updating past references to Fyre II each time he updates his social media sites.
According to court documents, McFarland has been writing up a plan for the event — first called PYRT festival — since he was incarcerated at Elkton Federal Correctional Institute in Ohio on charges of fraud and lying to the FBI. McFarland immediately begin hawking the event on TikTok when he got out of prison in mid-2022 with a scavenger hunt. McFarland had fans looking through empty bottles by late November of that year for free tickets to an event he’d eventually rebrand as Fyre Fest II in August of 2023, where he claimed to have placed 100 tickets on sale for $499 a pop and immediately sold out of them, which would have generated nearly $50,000 in revenue.
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The date for that event was scheduled for late 2024 and at one point McFarland bragged there were more people signing up for his event than buying tickets for Coachella. Besides the first 100 tickets allegedly sold to Fyre II, fans have only been able to “sign up” for tickets to the sequel event, clicking through a form-style website where they are encouraged to apply for the opportunity to buy tickets to Fyre Festival II, with prices ranging from $1,400 to $1.1 million. At this point, fans can’t buy tickets for the event — they can only apply to attend.
McFarland detailed the venture to both the Wall Street Journal and NBC News, saying that he hopes to gather about 3,000 people for the event and also promises “an incredible production company who’s handling everything from soup to nuts” for the fest.
“We have the chance to embrace this storm and really steer our ship into all the chaos that has happened, and if it’s done well, I think Fyre has a chance to be this annual festival that really takes over the festival industry,” McFarland told NBC.
McFarland has not avoided legal trouble since leaving prison. Last year he was served a civil summons, which claimed he ripped off an investor who gave him $740,000 for his new venture. An attorney for 54-year-old Jonathan Taylor of New York — who met McFarland while both were serving prison sentences at Elkton — said Taylor struck an agreement with McFarland and his business partner, Michael Falb (also named as a defendant), in which they allegedly offered him one-third equity in the venture, PYRT Technologies, in exchange for a $740,000 investment. Taylor claims McFarland and Falb then reneged on the deal by refusing to grant him the equity they promised or to return the money despite his demands that they do so. A judge later ruled that Taylor needed to refile the lawsuit to push the case forward.
McFarland has managed to stay busy with other ventures since leaving prison. In May, McFarland won a heavily hyped martial arts fight against a social media influencer, defeating the heavily favored crypto YouTuber Justin “Jchains” Custardo via TKO during the main event of Karate Combat’s Influencer Fight Club series at the Consensus conference in Austin, Texas.
McFarland has also launched the PYRT marketing agency and been heavily involved in the promotion of the song “ONBOA47RD,” a pro-Donald Trump rap song from Fivio Foreign and Kodak Black.
Live Nation, Warner Music Group and Spotify helped lead a music stocks rebound this week as global markets recovered from a disastrous prior week.
The Billboard Global Music Index gained 3.2% to 1,800.75 to retake nearly two-thirds of the previous week’s losses. Last week, just three of the index’s 20 stocks were gainers. This week, 11 stocks finished in positive territory while nine lost value. The seven multi-sector companies — recorded music, publishing and agencies — had an average gain of 2.3%. Six streaming companies had an average gain of 2.6%.
Major indexes also posted gains after last week’s downturn. In the United States, the Nasdaq jumped 6.0% to 17,683.98 and the S&P 500 climbed 4.0% to 5,626.02. In the United Kingdom, the FTSE 100 rose 1.1% to 8,273.09. South Korea’s KOSPI composite index improved 1.2% to 2,575.41. China’s Shanghai Composite Index was an exception, dropping 2.2% to 2,704.09, its lowest close since Feb. 5, 2024.
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Concert promoter Live Nation jumped 6.5% to $98.82 on Friday, its best closing price since $101.40 on May 22. CEO Michael Rapino gave investors a convincing narrative about Live Nation’s past, present and future at the Goldman Sachs Communacopia & Technology Conference on Tuesday (Sept. 10). Speaking about the potential for growth outside of the U.S., Rapino talked about taking the model used in Austin, where it built the Moody Center (in partnership with Oak View Group) and is getting “25-plus-percent return on capital.”
While the U.S. is filled with arenas because of basketball’s popularity, soccer-dominant Europe and South America don’t have the same infrastructure, Rapino explained. Growing a presence in those areas means building the venues, which provides better profits than being a venue operator. And it can be done more affordably than the cost of many arenas in the U.S. “We’re not building a billion-dollar Chase Center [the home of the Golden State Warriors basketball team in San Francisco],” Rapino said. “We’re building a $300 million-$400 million music venue, and we can get a great return on capital and expand the market. So that’s our greatest opportunity.”
After SiriusXM merged with Liberty Media’s tracking stock, Liberty SiriusXM, the new stock — also trading under the SIRI ticket — finished closed at $24.51, down 10.2%, after taking into account a 1-for-10 stock split. SiriusXM initiated post-merger trading at $25.25 and rose 2.6% on Tuesday before reaching a high of $29.05 on Wednesday. The company said the merger of SiriusXM and Liberty SiriusXM stocks was done to simplify the capital structure and support the company’s future growth.
In its first press release following the merger with Liberty SiriusXM tracking stock, SiriusXM provided updated free cash flow guidance of $1 billion for 2024, a $200 million drop from the guidance provided on Aug. 1. The $200 million change reflects about $70 million of closing costs and incremental interest and about $130 million related to “historical, year-to-date outflows at Liberty SiriusXM Holdings Inc. prior to the closing of the transaction.” The company left unchanged its guidance for revenue ($8.75 billion) and adjusted earnings before interest, taxes, depreciation and amortization ($2.7 billion).
Spotify gained 4.7% to $338.01, erasing most of its 5.9% loss two weeks prior. On Thursday, Guggenheim increased its estimate for fourth quarter monthly average users and average revenue per user and raised its third quarter gross margin estimate. Analysts spoke with a publishing executive who had positive things to say about Spotify’s audiobook offering and its positive impact on the publishing business. Guggenheim maintained its “buy” rating and $420 price target.
Multi-sector companies performed especially well this week. Warner Music Group gained 5.1% to $29.02 after Tigress Financial cut its price target to $44 from $52 on Thursday but retained a “buy” rating on the stock. Reservoir Media rose 5.3% to $7.72. Universal Music Group improved 2.9% to 23.60 euros ($26.17). Most K-pop stocks rebounded after a rough week. Although HYBE lost 1.0%, YG Entertainment gained 4.9%,SM Entertainment improved 3.2% and JYP Entertainment rose 1.7%.
A trio of streaming companies were among the week’s worst performers. China’s Cloud Music fell 4.7% to 91.95 HKD ($11.79). China’s top music streamer, Tencent Music Entertainment, fell 6.7% to $9.52. Abu Dhabi-based Anghami dropped 7.8% to $0.83.
Donald Trump infringed copyrights by using Eddy Grant’s iconic “Electric Avenue” in a 2020 campaign video without permission, a federal judge ruled Friday (Sept. 13), rejecting Trump’s argument that he made legal fair use of the song.
Grant sued Trump in 2020 after the then-president used his 1982 hit in a social media video attacking Joe Biden. Grant said he reacted with “dismay” when he began receiving inquiries asking if he had approved the Republican candidate’s use of his music.
Trump’s lawyers had argued the video was shielded under copyright’s fair use doctrine, which allows for the “transformative” re-use of protected works in certain situations. But in Friday’s ruling, Judge John G. Koeltl sharply rejected that argument.
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“In this case, the video has a very low degree of transformativeness, if any at all,” the judge wrote. “The video is best described as a wholesale copying of music to accompany a political campaign ad.”
A spokesperson and an attorney for the Trump campaign did not immediately return requests for comment.
Trump has repeatedly faced blowback amid the 2024 election from artists who don’t want him to use their music. Beyoncé, Celine Dion, the Foo Fighters, ABBA and Sinead O’Connor‘s estate have all spoken out or threatened action, and the White Stripes and the estate of Isaac Hayes have both filed lawsuits against him and his campaign.
Four years earlier, Grant filed a similar case over Trump’s “wrongful and willful” use of “Electric Avenue,” a funky, reggae-infused track about the 1981 Brixton riot, named for a road running through that London neighborhood. The song reached No. 2 on the Hot 100 in the summer of 1983 and ultimately spent 22 weeks on the chart.
The video at issue, shared by Trump on Twitter, featured a red “Trump” train outrunning a handcar driven by Biden, as audio clips of Biden’s speeches played above Grant’s 1982 hit. Grant’s attorneys said the campaign had refused to remove the clip even after they were warned — meaning that Trump was acting as if he was “above the law.”
Facing those allegations, Trump’s legal team argued that the video amounted to fair use, claiming the campaign had transformed Grant’s song into a vehicle to criticize Biden. In 2021, Judge Koeltl hinted that he would likely reject that argument on the grounds that it “misapprehends” how fair use works, but he said it was too early to decide the issue.
On Friday, the judge made good on his warnings, largely adopting the same rationale as his 2021 decision. He noted that Trump’s video “did not edit the song’s lyrics, vocals, or instrumentals at all” and had “offered no justification for their extensive borrowing.”
Trump’s attorneys had argued that the video had “transformed Grant’s original conception of ‘Electric Avenue’ as a protest against social conditions into a colorful attack on the character and personality traits of a rival political figure.” But the judge was entirely unswayed by that defense — saying that it would only count as fair use if Trump had used the song to attack Grant, not Biden.
“The animation does not use ‘Electric Avenue’ as a vehicle to deliver its satirical message, and it makes no effort to poke fun at the song or Grant,” Judge Koeltl wrote, quoting directly from his earlier decision.
Friday’s ruling means that Trump and his campaign have been held legally liable for copyright infringement, but it leaves undecided the amount he must ultimately pay Grant in damages. That issue will be resolved in future proceedings.
An attorney for Grant did not immediately return a request for comment.
You can’t say no one’s getting rich from streaming. In an indictment unsealed in early September, federal prosecutors charged musician Michael Smith with fraud and conspiracy in a scheme in which he used AI-generated songs streamed by bots to rake in $10 million in royalties. He allegedly received royalties for hundreds of thousands of songs, at least hundreds of which listed as co-writer the CEO of the AI company Boomy, which had received investment from Warner Music Group. (The CEO, Alex Mitchell, has not been charged with any crime.)
This is the first criminal case for streaming fraud in the U.S., and its size may make it an outlier. But the frightening ease of creating so many AI songs and using bots to generate royalties with them shows how vulnerable the streaming ecosystem really is. This isn’t news to some executives, but it should come as a wake-up call to the industry as a whole. And it shows how the subscription streaming business model with pro-rata royalty distribution that now powers the recorded music industry is broken — not beyond repair, but certainly to the point where serious changes need to be made.
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One great thing about streaming music platforms, like the internet in general, is how open they are — anyone can upload music, just like anyone can make a TikTok video or write a blog. But that also means that these platforms are vulnerable to fraud, manipulation and undesirable content that erodes the value of the overall experience. (I don’t mean things I don’t like — I mean spam and attempts to manipulate people.) And while the pluses and minuses of this openness are impossible to calculate, there’s a sense in the industry and among creators that this has gradually become less of a feature and more of a bug.
At this point, more than 100,000 new tracks are uploaded to streaming services daily. And while some of this reflects an inspiring explosion of amateur creativity, some of it is, sometimes literally, noise (not the artistic kind). Millions of those tracks are never heard, so they provide no consumer value — they just clutter up streaming service interfaces — while others are streamed a few times a year. From the point of view of some rightsholders, part of the solution may lie in a system of “artist-centric” royalties that privileges more popular artists and tracks. Even if this can be done fairly, though, this only addresses the financial issue — it does nothing for the user experience.
For users, finding the song they want can be like looking for “Silver Threads and Golden Needles” in a fast-expanding haystack. A search for that song on Apple Music brings up five listings for the same Linda Ronstadt recording, several listings of what seems to be another Ronstadt recording, and multiple versions of a few other performances. In this case, they all seem to be professional recordings, but how many of the listings are for the same one? It’s far from obvious.
From the perspective of major labels and most indies, the problems with streaming are all about making sure consumers can filter “professional music” from tracks uploaded by amateur creators — bar bands and hobbyists. But that prioritizes sellers over consumers. The truth is that the streaming business is broken in a number of ways. The big streaming services are very effective at steering users to big new releases and mainstream pop and hip-hop, which is one reason why major labels like them so much. But they don’t do a great job of serving consumers who are not that interested in new mainstream music or old favorites. And rightsholders aren’t exactly pushing for change here. From their perspective, under the current pro-rata royalty system, it makes economic sense to focus on the mostly young users who spend hours a day streaming music. Those who listen less, who tend to be older, are literally worth less.
It shows. If you’re interested in cool new rock bands — and a substantial number of people still seem to be — the streaming experience just isn’t as good. Algorithmic recommendations aren’t great. Less popular genres aren’t served well, either. If you search for John Coltrane — hardly an obscure artist — Spotify offers icons for John Coltrane, John Coltrane & Johnny Hartman, the John Coltrane Quartet, the John Coltrane Quintet, the John Coltrane Trio and two for the John Coltrane Sextet, plus some others. It’s hard to know what this means from an accounting perspective — one entry for the Sextet has 928 monthly listeners and the other has none. If you want to listen to John Coltrane, though, it’s not a great experience.
What does this have to do with streaming fraud? Not much — but also everything. If the goal of streaming services is to offer as much music as possible, they’re kicking ass. But most consumers would prefer an experience that’s easier to navigate. This ought to mean less music, with a limit on what can be uploaded, which some services already have; the sheer amount of music Smith had online ought to have suggested a problem, and it seems to have done so after some time. It should mean rethinking the pro-rata royalty system to make everyone’s listening habits generate money for their favorite artists. And it needs to mean spending some money to make streaming services look more like a record store and less like a swap-meet table.
These ideas may not be popular — streaming services don’t want the burden or expense of curating what they offer, and most of the labels so eager to fight fraud also fear the loss of the pro-rata system that disproportionately benefits their biggest artists. (In this industry, one illegitimate play for one song is fraud but a system that pays unpopular artists less is a business model.) But the industry needs to think about what consumers want — easy ways to find the song they want, music discovery that works in different genres, and a royalty system that benefits the artists they listen to. Shouldn’t they get it?
Despite having to pay more for everyday goods and services, Americans feel like they’re in a better place financially than earlier this year. How they choose to increase and cut back their spending, though, varies from music to vacations to groceries.
The data show consumers are generally in a good place. The latest numbers from University of Michigan’s survey of consumers released today (Sept. 13) show consumer sentiment is the best since May and 40% above its June 2022 low. Deloitte’s financial well-being index rose for the third straight month in August and has risen from 95.9 to 102.6 over the last year, which suggests that consumers are feeling good enough about their finances to increase spending on a range of products and services.
Listen to travel and leisure companies and you’ll get the impression that inflation-weary, cash-strapped consumers are holding close to their wallets. In August, Airbnb missed earnings and warned of slowing demand, while Booking.com told investors that it expected slower growth in the number of nights booked by customers. Disney’s theme parks are seeing softer demand. Comcast’s Universal theme park revenue fell 11% in the most recent quarter after having a record 2023.
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The concert business, though, doesn’t share the malaise of theme parks and vacation rentals. “We don’t see [a slowdown],” Live Nation CEO Michael Rapino said Tuesday (Sept. 10) at the Goldman Sachs Communacopia & Technology Conference in San Francisco. “And you almost hate saying it, because everyone else is saying it, but we do think we have a very unique product.” Live Nation, the world’s largest concert promoter and ticketing company, had a record second quarter with total revenue of $6 billion, up 7%, and expects 2024 will be a record year.
Concerts have the advantage of creating a more visceral reaction than other types of entertainment. And because it’s in-person and live, Rapino explained, it’s a unique experience with a competitive advantage. “[Fans] want to connect with that artist,” he said. “There’s no digital duplicate replication here. You cannot watch that show at home. You do not get goosebumps when you watch it on Apple TV.”
Live music isn’t totally immune to economic woes, of course. Numerous tours — including The Black Keys and Jennifer Lopez — have been cancelled due to poor ticket sales. Festivals ranging from Desert Daze in California to Beale Street Music Festival in Memphis pulled the plug in 2024 due to economic reasons. And as Billboard has documented in recent years, the financial strain of touring artists following the pandemic has been very real. Higher costs for transportation, fuel and food have forced artists to economize and cut back on expenses to turn a profit.
Fans are still spending dearly on a small number of superstars, though. Surge pricing used in the Oasis on-sale inflated the cost of primary tickets beyond many fans’ comfort zones. Sphere in Las Vegas has drawn high-spending fans to residencies by U2, Phish and Dead & Co., and The Eagles’ upcoming shows should do similarly well. Prices to Adele’s final residency performance at The Colosseum at Caesar’s Palace in Las Vegas before an indefinite hiatus soared beyond $17,000 for top-tier seats.
Consumers continue to spend on recorded music, too. According to the RIAA’s mid-year report, the parts of the business that involve direct consumer spending — subscriptions, physical formats and digital downloads — rose 4.7% in the first six months of 2024. Subscription revenue improved 5.1% and surpassed 60% of total recorded music revenue. Spending on physical music formats fared even better, rising 12.7% on the strength of a 17.0% increase in vinyl sales. Download spending, an increasingly inconsequential part of the business, fell 15.8%.
Segments that don’t represent consumer spending — ad-supported streaming, synchronization royalties and SoundExchange royalties — rose just 0.9%. Ad-supported on-demand streaming, the biggest component of the non-spending segment, rose just 1.7%. (SoundExchange royalties include ad-supported streaming in addition to satellite radio royalties, which stem from direct consumer spending, and cable radio stations, which do not.) Synchronization royalties — it reflects the money flowing into advertisements and TV and film production — dropped 9.8%.
Elsewhere in the entertainment business, spending is mixed. U.S. movie ticket sales were down to $3.6 billion from $4 billion, though the pop culture sensation of Barbie and Oppenheimer in the summer of 2023 made for a tough comparison. U.S. video game revenue is expected to rise about 2.2% to $47 billion in 2024, according to market research firm Newzoo.
While consumer are looking to splurge on entertainment, they’re much more price conscious about everyday items. According to the consulting company McKinsey, people are cutting back on spending on essentials — especially gasoline and fresh produce — as well as home improvement and domestic flights.
During a 1980 presidential debate, Ronald Reagan posed a now-famous question: “Are you better off than you were four years ago?” In 2024, many Americans feel they were better off in 2020 — even though the economy was crippled by the pandemic that year. The music industry is better off today than four years ago. And although recorded music growth has slowed this year, 2024 will be better than 2023, too.