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A controversial California Assembly bill that would have forced Ticketmaster to share its ticketing inventory with resale sites StubHub and SeatGeek has been amended with anti-resale provisions that would allow promoters like Live Nation to ban Stubhub and SeatGeek from selling its concert tickets in California.
The whiplash legislative maneuvering is the result of the music industry’s successful effort to thwart Oakland lawmaker Buffy Wicks’ attempt to address long-standing consumer complaints against Ticketmaster, forcing her to significantly water down the legislation.
The original version of the bill was introduced on April 8, when Wicks held a press conference with the California Consumer Federation and members of several state Chamber of Commerce groups and unveiled a plan, endorsed by StubHub and SeatGeek, to “make the ticket market more competitive.” To accomplish this, the bill proposed to outlaw Live Nation’s use of exclusive venue contracts, which Wicks said gave the company an unhealthy 80% share of the concert market and had led to a steep price increase for tickets since the company’s merger with Ticketmaster in 2009.
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Wicks’ bill also included a clause — shocking to many in the live entertainment space — that would have required Ticketmaster to develop software integrations allowing rival ticketing companies and ticket resale sites to pull ticketing inventory from the Ticketmaster site and sell it on their own sites. Wicks said she wanted to create a Kayak.com-style marketplace for tickets, where sites like StubHub and SeatGeek, along with smaller primary ticketing companies like Dice and Tixr, sold the same concert tickets Ticketmaster was selling.
The proposal was immediately opposed by professional sports teams including the Golden State Warriors and the San Francisco 49ers, along with concert promoters, venue operators, arts groups and a number of live music industry organizations including the National Independent Venues Association, the Recording Academy and the Music Artist Coalition. Critics said the bill stripped California venues of their rights to monetize their ticketing contracts and transferred the power to control how tickets were sold from artists and venues to third-party technology companies without any safeguards.
Wicks explained that the bill would help consumers by making ticketing companies compete to sell tickets, but opponents said sellers would still be incentivized to raise ticket prices for major concerts when demand significantly outpaced supply. Others argued that giving resale sites direct access to primary tickets would push more tickets into the hands of scalpers and cause prices to skyrocket.
Booking agent Sam Hunt with Wasserman Music described the bill as problematic during an April 16 subcommittee hearing, warning that it “punished artists” and “established a dangerous system for fans.”
“Artists agree that the ticketing process is deeply flawed,” said Hunt, before adding that the blame lies with “unregulated ticket brokers” and “the secondary platforms that allow them to exist and flourish.”
Facing universal opposition from the live music industry and several members of the committee, Wicks vowed to make changes to the legislation.
On Tuesday (April 24), during a hearing of the Assembly’s Privacy and Consumer Protection Committee, Wicks introduced a new, partially completed bill that exempted professional and collegiate sports teams from the new rules. More notably, it included a clause stating that it would be an artist’s decision “to determine the terms and conditions related to the sale, pricing, distribution and transfer of tickets to their events.”
That new language, which mirrors that of legislation in other states as well as proposed federal legislation, was interpreted to mean that artists would be given the right to block resale sites from selling their tickets, potentially ending the resale of concert tickets in California — a sharp contrast with the original bill.
Wicks said the amendment resulted from a compromise with other legislators and was still being revised and amended. Lobbyists for secondary sites like StubHub and SeatGeek testified that they would pull their support for the bill if the new language remained.
Wicks isn’t the only politician tackling ticketing initiatives. Since the high-profile crash of the Taylor Swift Eras Tour ticket sale in November 2022, Ticketmaster has come under fire from members of both parties in Congress and is reportedly the subject of a DOJ investigation on antitrust charges. State lawmakers across the country have largely tried and failed to pass legislation curbing Ticketmaster’s power, but few have swung and missed quite like Wicks, who initially chose to align her efforts with the secondary ticketing market.
Today’s modern live music industry is a diverse cross-section of competing multinational corporations and independent businesses made up of venue operators, talent agencies, concert promoters, artists and their managers, and primary ticketing companies. The broad group of competing interests doesn’t agree on much, except for their universal opposition to the ticket resale business, which many believe caused the Swift ticket sale crash. The bot attack that preceded the temporary disruption of the sale had all the hallmarks of similar attacks utilized by ticket scalping groups.
In its defense, reps for the secondary ticketing business argue that sites like StubHub and SeatGeek provide a safe marketplace to buy and sell tickets that has been embraced by consumers and duplicated by Ticketmaster, which operates its own resale business.
The friction between the music industry and the secondary market involves access to high-demand concerts by artists like Swift and Olivia Rodrigo. Lobbyists for resale sites say Ticketmaster unfairly blocks ticket resellers from accessing high-demand tickets. Ticketmaster officials argue their artist clients want their tickets to be sold directly to fans and not marked up on resale sites.
Following the introduction of Wicks’ revamped bill in California, a new round of debate ensued. During the committee discussion of the legislation, Assemblymember Isaac Bryan said that Wicks’ logic that a Kayak.com site would push ticket prices down was flawed, noting that with hotels, “There’s no secondary market to sell a room for two, three or four” times what was originally paid to book the room.
Assemblymember Lori Wilson added that Wicks should focus her efforts on determining whether Ticketmaster held a competitive or unfair advantage. Committee chair Rebecca Bauer-Kahan said legislators needed to focus on putting consumers first, adding, “We as a committee don’t necessarily think the largest problem is the monopoly at the front end but the brokers in the middle who are buying up the tickets and leading to a lot of the problems” in the marketplace.
Despite these reservations, the new, radically different legislation will move forward. After a brief vote, the rewritten bill passed in the Privacy and Consumer Protection Committee and now heads to the Appropriations Committee, where Wicks serves as chair.
What began as a music-only streaming platform evolved into a broader audio platform that included podcasts and audiobooks. Now, Spotify is venturing into video — in both snippets and long-form content, although the latter is only in an experimental phase.
During Tuesday’s Q2 earnings call, CEO Daniel Ek and interim CFO Ben Kung repeatedly referred to “the Spotify Machine” when explaining the company’s expansion beyond music. As Ek explained, the term means the company “isn’t just a sort of one-trick pony anymore, but it’s actually multiple verticals working together” to create more choice for consumers and drive more engagement.
“Because you may come for the music and stay for the audiobooks,” Ek said. “Some customers may come for the podcast and stay for the audiobooks.”
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The term makes sense: Spotify is an increasingly complex product with multiple moving parts, numerous audio and video formats, and a variety of paid tiers. Each new component to the machine is meant to make the company more valuable as a whole. Similarly, concert promoter and ticketing company Live Nation uses the term “flywheel” to describe how its various products and business segments provide momentum for the larger entity. But “the machine” has a better ring to it.
The machine is integral to becoming a sustainable, profitable company. As Spotify detailed in its 2022 investor day presentation, branching out from music will help improve its gross margins and become the profitable company it has long aspired to be. Music margins are roughly 30% of revenue — the remaining 70% goes to rights holders — and will top out at 35%, the company has said. At that 2022 presentation, Spotify said podcast margins can reach 40-50% gross margin and overall gross margin can get to 40% (gross margin rose to 27.6% in Q1 from 25.2% a year earlier).
The machine helps increase engagement. Spotify is more valuable if people spend more time using it. When engagement increases, churn decreases, which in turn reduces the expense involved in bringing those lapsed customers back. When engagement increases, free users are more likely to become paid subscribers. The last thing a streaming service wants is an infrequent customer who doesn’t enjoy the features or delve deep into its content. Audiobooks are a good example of keeping people hooked: Ek said that in the markets where audiobooks are available, 25% of users are listening to them. What’s more, in the first two weeks a Spotify user listens to audiobooks, Spotify sees “over two and a half hours of incremental usage on the audiobook side,” he said.
The machine gives users greater freedom of choice. Ek confirmed Spotify will have an audiobook-only subscription tier along with a music-only tier; the standard subscription tier offers both music and audiobooks. Over the years, Spotify has given consumers multiple options to choose from: an individual plan, a two-person plan called Duo, a multi-user family plan, and, in certain markets, the ability to purchase one day at a time. Spotify wants to provide “as much flexibility as possible in this next stage of Spotify” to convert more users to paid subscribers, Ek explained.
The machine is built to maximize value. Ek and Kung frequently mentioned a particular internal metric, a value-to-price ratio, that Spotify uses as a North Star these days. By adding podcasts, audiobooks and education, as well as features such as Wrapped — Spotify’s personalized year-end recap — Spotify delivers more value than it provided when it was a simpler, music-only service. Ek singled out the videos that Spotify has added in “11 or 12” markets and built anticipation for video clips that will allow artists to tell stories about their new releases. Such videos are one way Spotify is “focused on winning discovery” to make the platform a better listening experience, Ek said. Spotify’s recent foray into educational video courses in the U.K. is another stab at adding value.
The machine ultimately gives Spotify the ability to raise prices. When Spotify adds products and features, EK explained, it increases its value-to-price ratio. That, in turn, allows it to occasionally raise prices to capture the value it created. “The way you should think about this as investors is the better we can improve the product, the more people engage with our product, and the more value we ultimately create,” Ek said. “And the more value we create, the more ability we will have to then capture some of that value by price increases.” After more than a decade of value creation and stagnant prices, Spotify raised rates in July 2023. In April, it again hiked rates in select markets — including the United Kingdom and Australia — and is expected to expand those increases to additional markets.
The machine also requires a feat of engineering. “It’s a fairly complex machine,” Kung said, because Spotify has both variable-cost models, such as revenue sharing and per-hour royalties, and fixed-cost models — some in-house and licensed podcast content, perhaps. Ek added that “the machine takes care of all the complexity on the back end to deal with what was historically a very difficult problem to solve, which is multiple business models in one consumer experience.” Spotify’s engineering challenge is incorporating additional verticals into a seamless user experience without getting clunky — a criticism often launched at iTunes, which started as a music store and added videos, books, apps, podcasts and iTunes U, a place for educational materials. “Simplicity is hard,” a former Apple product designer once wrote. “Very hard. But when you get it, it’s beautiful.”
The machine might take some getting used to. As Spotify branches out to non-music verticals, it has stakeholders other than the music rights holders, artists and songwriters it has served for more than a decade. Now, Spotify also supports podcasters, authors and — although in the early stages — educators. That has already created some tension between music publishers and Spotify following news that Spotify considers its music-audiobook subscription offering to be a bundle under the Phonorecords IV mechanical rate structure in the United States. Subscription bundles allow Spotify to pay a slightly lower royalty rate. But really, is anybody surprised that the machine is trying to save a little money?
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The National Music Publishers’ Association’s (NMPA) model TikTok license, which is used by a number of the independent music publishers, will expire at the end of April, and there are no ongoing negotiations between the NMPA and TikTok to renew it.
That means that starting May 1, more songs will be removed from TikTok, joining the millions that have already been removed from the Universal Music Group’s catalog earlier this year. At the end of January, licensing negotiations between UMG and TikTok collapsed, resulting in UMG’s decision to pull its music off the platform. In an open letter sent to artists and songwriters, the company lamented that TikTok failed to pay the “fair value” for music. It also noted other concerns with the platform, including AI concerns and artist safety. TikTok replied within hours, calling UMG’s letter a “false narrative” and that it was “sad and disappointing that [UMG] has put their own greed above the interests of their artists and songwriters.”
It is unclear how widespread the impact of the NMPA’s lapsed license will be. A TikTok spokesperson claims that only a small percentage of its overall music library used the model license and that they are not sure TikTok users will even notice the removals. The spokesperson adds that TikTok is in talks with a number of the publishers who used the NMPA license about getting an individual license, including a few of the larger players that use the NMPA model license. TikTok declined to provide further details.
The NMPA is also tight-lipped about the size of this impact, given the decision of whether or not to individually renew TikTok licenses for May 1 is in the hands of its members, not the NMPA. While the NMPA cannot disclose which independent music publishers use its model license for TikTok, it appears that it is a popular option, used by a large number of firms, ranging from tiny boutiques to sizable independents. The major publishers and some large indies negotiate directly with TikTok already, but the NMPA’s TikTok model license exists as a service largely to help the smaller publishers who would have less negotiating power or resources to get the license on their own.
The NMPA also has model licenses with the other social media networks available to its members, including YouTube, Meta and others, and the organization says it will continue to offer these other model licenses to members. X, notably, is absent from this list because it does not pay for music that appears on its platform. The NMPA has been asking X to license and pay for music for years to no avail, leading the trade organization to launch a $250 million lawsuit against X in June 2023.
The NMPA’s decision to pull out of TikTok should come as little surprise. NMPA president and CEO David Israelite has been supportive of UMG, and its publishing company and NMPA member UMPG, and its choice to leave TikTok since the beginning. Right after UMG announced its exit, Israelite offered a statement, saying “it is extremely unfortunate that TikTok does not seem to value the music creators that fuel its business.”
On Feb. 2, Israelite gave a speech at the Association of Independent Music Publishers Grammy week event, announcing that the NMPA’s license was set to expire at the end of April. “I’m only going to say two things about TikTok: the first is I think music is tremendously important to the business model of TikTok, and, secondly, I am just stating the fact that the NMPA model license, which many of you are using, with TikTok expires in April,” he said at the time.
On March 5, the organization sent a letter to its members, explaining that the NMPA did not foresee renewing its license with TikTok and told members using their model license to negotiate directly with TikTok if they wanted to continue to be on the platform. Since then, the organization has not returned to the negotiating table with TikTok.
In a statement, TikTok said, “We have direct deals in place with thousands of music publishers — including NMPA members — and we will continue to engage with the entire publishing industry to help make their songs available on TikTok.”
Victims of the Astroworld music festival want their looming trial against Travis Scott, Live Nation and other organizers to be livestreamed to the public, citing a public demand for “transparency and accountability.”
After more than two years of litigation over the 2021 crowd crush at the Astroworld — a disaster that left 10 dead and hundreds injured — the first jury trial is set to kick off early next month. It will be a pivotal first test for hundreds of other lawsuits filed by alleged victims that claim the organizers were legally negligent in how they planned and operated the festival.
In a motion on Thursday (April 25), lawyers for the plaintiffs in the upcoming trial argued that it should be broadcast live on the internet, saying such a step was needed to “ensure that all those affected by the Astroworld tragedy can observe the proceedings and stay informed of the trial’s progress.”
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“The devastating scale of the events at Astroworld, combined with the involvement of high-profile defendants, has generated significant national attention and a legitimate public demand for transparency and accountability,” the plaintiffs’ lawyers write. “By livestreaming the trial, the Court will demonstrate its commitment to open and accessible proceedings, fostering public trust and confidence in the judicial system’s handling of this consequential matter.”
A ruling opening up her courtroom to cameras would be a major shift for the judge overseeing the Astroworld litigation. Back in 2022, citing the risk that potential jurors might become biased, Judge Kristen Hawkins imposed an unusually strong gag order that has severely limited public knowledge about the status of the case.
Media outlets like ABC challenged Judge Hawkins’ gag order, arguing that it was depriving the public of information about important judicial proceedings over a newsworthy event. But a Texas appeals court upheld the media ban last year without explanation.
Hundreds of lawsuits have been filed over the deadly crowd crush during Scott’s Nov. 5, 2021, headlining set at Astroworld. The cases, collectively seeking billions in damages, claim that organizers bear legal responsibility for the disaster because of poor safety planning and failure to stop the show after problems had been reported.
The lawsuits have spent much of the last two years in discovery, as the two sides exchanged information and took depositions of key figures. But now the first trial in the massive litigation — over a wrongful death case filed by the family of Madison Dubiski, a 23-year-old who died at Astroworld — is set to start on May 6.
In seeking to have that trial aired live, attorneys for Dubiski’s family argued that it was “impractical” for everyone involved in the litigation to attend the proceedings physically: “There are hundreds of plaintiffs and their family members, numerous defendants, and a multitude of counsel to account for.”
But they also hinted that they think the judge might have doubts about broadcasting the trial. The recording would be “conducted unobtrusively, with minimal disruption to the trial process,” the plaintiffs’ lawyers said, and the judge will have the ability to “pause or terminate the broadcast if necessary to preserve order or to protect sensitive information.” And witnesses would be sequestered and required not to watch the stream “to safeguard the fairness and impartiality of the proceedings.”
The judge will presumably rule on the motion in the next week before the trial gets underway.
A federal appeals court on Friday (April 26) upheld R. Kelly’s conviction on child pornography and enticement charges, rejecting his argument that the case against him was filed too late.
Eighteen months after a federal jury in Chicago found Kelly (Robert Sylvester Kelly) guilty, the U.S. Court of Appeals for the Seventh Circuit affirmed the 2022 guilty verdict, saying that he had been convicted by “an even-handed jury” and that “no statute of limitations saves him.”
“For years, Robert Sylvester Kelly abused underage girls. By employing a complex scheme to keep victims quiet, he long evaded consequences,” Judge Amy St. Eve wrote for a three-judge panel. “In recent years, though, those crimes caught up with him at last. But Kelly — interposing a statute-of-limitations defense — thinks he delayed the charges long enough to elude them entirely. The statute says otherwise, so we affirm his conviction.”
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Friday’s ruling affirms one of Kelly’s two felony sex abuse convictions. The other one — a September 2021 guilty verdict on racketeering charges brought by federal prosecutors in New York — is currently pending on appeal.
In the wake of Friday’s decision, Kelly can now appeal the verdict to the U.S. Supreme Court. But such appeals face extremely long odds, as the high court hears only a tiny fraction of the petitions it receives.
In a statement to Billboard on Friday, Kelly’s attorney, Jennifer Bonjean, said: “We are disappointed in the ruling but our fight is far from over. We will seek review from the Supreme Court and continue to pursue all of his appellate remedies until we Free R. Kelly. You can bet on that.”
After decades of accusations of sexual misconduct, Kelly was indicted in 2019 by federal prosecutors in both New York and Illinois. By the end of 2022, he had been convicted in both cases.
In Brooklyn, the feds accused Kelly of violating the federal RICO statute (Racketeer Influenced and Corrupt Organizations Act) by orchestrating a long-running scheme to recruit and abuse women and underage girls. After being convicted in September 2021, Kelly was sentenced to 30 years in prison.
In Chicago, a different team of federal prosecutors accused Kelly of violating child pornography laws, enticing minors for sex and obstructing justice by upending a 2008 criminal trial. Though he was acquitted on certain counts, Kelly was convicted in September 2022. The judge later sentenced him to 20 years in prison, but the vast majority of that sentence will be served concurrently with the New York sentence.
In appealing the Chicago verdict, Kelly’s attorneys argued that the case — over crimes that allegedly occurred in the late 1990s and early 2000s — had been filed well past the statute of limitations that existed at the time, which barred child sex abuse charges after a victim’s 25th birthday.
But in Friday’s ruling, the judges chose instead to apply the modern statute of limitations, which extends through the life of the victim.
“Kelly maintains that the old, pre-2003 statute of limitations should control,” Judge St. Eve wrote. “All the inducement of minors in this case, he points out, took place when he could expect a more generous statute of limitations. The law does not support Kelly’s position.”
The appeals court also rejected several other arguments from Kelly, including one challenging the procedural fairness of his trial and another against the propriety of his sentence.
With Kelly’s Chicago verdict affirmed, attention now turns to the U.S. Court of Appeals for the Second Circuit, which is currently weighing his Brooklyn conviction. That case was argued in court last month, when Bonjean told the judges that the RICO case against Kelly had stretched federal racketeering laws “to the point of absurdity.”
Major artists are speaking out about the state of concert ticketing.
“The current system is broken,” reads a new letter signed by over 250 artists, including Billie Eilish, Green Day, Fall Out Boy, Cyndi Lauper, Lorde and more. The letter, dubbed “Fix The Tix,” addresses pervasive issues in the ticketing industry, like fake tickets, misleading marketing strategies and unclear pricing.
Addressed to Maria Cantwell and Ted Cruz, the respective Chair and Ranking Member of the U.S. Senate Committee on Commerce, Science, & Transportation, the letter calls on the legislators to support the Fans First Act. The Act would take a series of steps to make ticketing more transparent for consumers, including banning “deceptive marketing tactics,” which lure fans into “paying more for tickets that may never get them into a show.”
“Predatory resellers have gone unregulated while siphoning money from the live entertainment ecosystem for their sole benefit,” the letter reads. “As artists and members of the music community, we rely on touring for our livelihood, and we value music fans above all else. We are joining together to say that the current system is broken.”
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Though the letter addresses American lawmakers, ticket resale practices are not limited to the U.S., and several Canadian acts have signed in support of letter’s aims, including Blue Rodeo, The Sadies, Cowboy Junkies, Suzie Ungerleider and Alvvays’ Alec O’Hanley.
“Marking tickets up is indicative of yet another layer in a broken system,” Canadian singer-songwriter Lauren Spear, who releases music as Le Ren and signed on to the letter, tells Billboard Canada. “It’s hard enough making money with streaming services taking revenue away from artists. Markups create an invisible hand that both gatekeeps the audience and pockets money that should be going to the labour of the musicians and crew.”
The Fans First Act would require ticket sellers to display the full price of a ticket from the outset of a purchase, tackling hidden fees that often catch consumers by surprise at the end of a transaction. – Rosie Long Decter
YouTube Aims to Support Canadian Artists In the Age of AI
Like many major labels and streaming companies, YouTube has a major presence in Canada. For artists and content creators, it provides access to an audience that stretches beyond borders.
“When you think about YouTube, the beauty for all artists and Canadian artists is the global reach,” says Vivien Lewit, Global Head of Artists at YouTube, in an interview with Billboard Canada, after a recent trip to Halifax for the Juno Awards. “There are over two billion really logged in viewers that watch music videos each month on YouTube. The exposure is enormous.”
With the Online Streaming Act becoming law, digital distributors and media will soon face updated government regulation and possible new forms of Canadian Content requirements. YouTube and its parent company Google have been critical of the act ever since it was introduced as Bill C-11. But much of the company’s criticism revolved around user-created content, which has since been clarified as immune from certain forms of regulation. YouTube maintains an ongoing partnership with record labels in Canada led by Canadian Head of Music Partnerships, Gabriel Obadia.
YouTube has a number of marketing and support initiatives and programs, and Lewit says they make sure to promote Canadian artists as part of all of them. Those include features like Artist on the Rise and Fifty Deep, a grant program to support Black artists. This year, Francophone Quebec rapper Lost was a participant.
YouTube Shorts has also been a big driver of the Punjabi Wave, including the B.C.-based Karan Aujla his collaborator Ikky. Together, they made YouTube’s list of most-watched music videos in Canada in 2023, and Aujla has 1.66 billion global plays in the last year. Numbers like those are hard to ignore, and those, along with streaming tallies, proved the potential of Punjabi music well before the Canadian music industry started to support it.
“It’s fascinating because I hear about the fast-growing popularity of Punjabi music in Canada from both our teams in India and our teams in Canada,” Lewit says.
In Canada, those YouTube numbers will now be recognized by Music Canada’s Gold/Platinum Singles Program. So, as in the U.S. since 2020, an artist with high stream counts on YouTube (or other Digital Service Providers like Apple Music) could earn a gold or platinum record.
Read more here about how YouTube is working with Canadian labels on another potential thread and opportunity: generative AI. – Richard Trapunski
Last Week In Canada: AP Dhillon’s Early Exit From Coachella
Over the past week, the feud between Kendrick Lamar and Drake has entered into a new, more modern realm than any rap beef before it: AI.
As the back and forth has escalated, and fans wait to see what each of the hip-hop heavyweights will say next, a number of fan-fabricated diss tracks began circulating on social media using AI voices to mimic the emcees. And while some were obviously not real — and, thankfully, were voluntarily labeled AI by their authors — others were more convincing, leading to widespread confusion.
People questioned if Drake’s “Push Ups” was real (it was), and if Lamar’s supposed reply, “1 Shot 1 Kill” was real, too (it wasn’t). YouTube is rife with more AI replications, and some are amassing big audiences, including one called “To Kill A Butterfly,” which has amassed 508,000 views to date. To make matters even more convoluted, Drake himself took part in the trend, employing AI to replicate the voices of West Coast legends Tupac Shakur and Snoop Dogg on his diss “Taylor Made,” released on X and Instagram on Friday without their permission, prompting Shakur’s estate to send Drake a cease-and-desist letter.
The phenomenon has illustrated the sizable impact that AI has already had on modern fandom, as impatient fans use generative AI tools to fill in gaps in the conversation and imagine further storylines with a type of uncanny accuracy that was never before possible. And for better or for worse, it has become the most prominent use-case of generative AI in the music industry to date.
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This trend in AI use has its origins with Ghostwriter, the controversial TikTok user who deepfaked Drake and The Weeknd’s voices on his song “Heart On My Sleeve” one year ago, in April 2023. In a cover story for Billboard, Ghostwriter and his manager first compared AI voice filters to a form of “fan fiction — a fan-generated genre of music,” as the manager put it.
Traditional, written fan fiction has been a way for fans to engage with their favorite media for decades — whether that’s franchises like Star Wars, Marvel or Twilight, or the music of stars like Drake and Lamar. In it, fans can expand on details that were never fully fleshed out in the original work and write their own storylines and endings. AI fan creations inspired by Drake and Lamar’s beef are doing something similar, letting music fans imagine the artist’s next move and picture collaborations that haven’t happened yet.
Historically, fan fiction is great for the original artist from a marketing point of view. It is one of many forms of user-generated content (UGC) on the internet today that can engage superfans further with the original project without its author having to lift a finger.
But with traditional fan fiction, fans could easily tell where the official canon started and ended, and the writing was often relegated to superfan hot spots like Watt Pad, Discord, Reddit or fan zines. This new form of ‘AI fan fiction’ makes this distinction a lot less obvious and spreads it much wider. For now, trained ears can still tell when AI voices are used like this today, given the slight glitchiness still found in the audio quality, but soon these models will be so good that discerning AI from reality will be virtually impossible.
There is still not a good way to confidently figure out which songs use AI and which do not, and to make matters worse, these fan-made songs are more commonly posted to general social media platforms than written fan-fiction. In a search about this rap beef on X or YouTube, listeners are likely to run into a few AI fan tracks along the way, and many lack the expertise of a superfan to sniff out and differentiate what’s real and what’s fake.
In a time when fans demand nonstop connection to and content from their favorite talents, it is especially common for fans of elusive artists to take matters into their own hands with AI tools — including voices as well as other generative works like images, videos and text. In the absence of a Kendrick response to Drake last week, for example, “1 Shot 1 Kill” was produced by a 23-year-old fan who goes by Sy The Rapper. In an interview with Complex, Sy said he used the tool Voicify to imagine Lamar on the track. (Notably, the RIAA recently reported Voicify to the U.S. government’s piracy watch list).
Followers of famously elusive artist Frank Ocean also had fun with generative AI in the last year, with one fan, @tannerchauct, showing others on X how to create their own alternative forms of Ocean’s album artwork using DALLE-2, an image generator. A Cardi B fan, @iYagamiLight, even dreamed up the creative direction for an entirely fictional Cardi B project with AI, earning them thousands of retweets in October. The user’s cover art rendered Cardi B in a bedazzled corset and posing in a clawfoot bathtub, peacock feathers fanning out around her. They also created a fake tracklist and release date.
The downside of fan-made works has always been the same: they have the tendency to infringe on the artist’s copyrights, to use an artist’s name, image, voice or likeness without permission, or to generally profit from the artist’s work without sharing the spoils. This new age of AI fan fiction and UGC makes all of these pre-existing problems exponentially harder to police.
The Cardi B fan, for example, did not disclose that their work was AI-generated or fictional, and instead paired their creative direction with the misleading caption “Cardi B just announced her long awaited sophomore album “Mayura” coming out Friday 12th January 2024!”
In a recent music law conference at Vanderbilt University, Colin Rushing, general counsel of the Digital Media Association (DiMA) downplayed the commercial impact of AI in music so far, saying that, since Ghostwriter, “one of the things we really haven’t seen in the [last] year is an epidemic of ‘fake-Drakes’ climbing the charts. We’re not seeing popular examples of this in the commercial marketplace.”
Rushing is right — that hasn’t happened yet. Even Drake’s own AI-assisted song is not on streaming services, and thus is not eligible for the charts. (and if the lawyer for Tupac’s estate has his way, it will soon be removed from the internet entirely.) But this rap feud has revealed that while it hasn’t impacted the charts or the “commercial marketplace” all that much, it has impacted something possibly even more important to an artist today: fandoms.
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After five years of success as an artist at EMPIRE, Babyface Ray looks to take the next step and evolve into an executive. Today (April 26), Ray announces the partnership between his label, Wavy Gang, and EMPIRE, allowing him to sign and develop talent.
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Ray’s first two signings are Samuel Shabazz and Rally.
“I appreciate the partnership with EMPIRE. We have been partners for the last couple of years, and I’m excited for the next chapter with them and my label Wavy Gang Entertainment,” Ray tells Billboard. “I appreciate the team over there. Ghazi, Nima, Tina, Ari and everyone who has had an impact on my career. It’s time to embark on this chapter.”
Ghazi Shami, CEO and founder of EMPIRE expressed excitement about teaming up again with Ray and watching him leap forward to become an industry executive. “Me and Ray locked in seven years ago. I watched him build his career brick by brick. I’m honored to further our partnership together. His trajectory is limitless. Wavy Gang for life,” he says.
Not only is Ray celebrating the newly minted partnership with EMPIRE, but he’s also savoring his newest accolade: a certified RIAA-gold plaque for his song “Ron Artest,” which features 42 Dugg—his first.
With momentum on his side, Ray looks to ramp up the intensity with his weekly installment of “Face Fridays.” His newest song, “Glory,” is befitting, highlighting the wins in Ray’s life and his gratitude. “You startin’ your discipline, you’re having your business, you’re stackin’ your chips / I’m writing my goals down, I’m knockin’ them all down, I’m scratchin’ the list,” he raps on the BrentRambo and LulRose produced song.
Check out the “Glory” video below.
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It’s time for another spindle around the Executive Turntable, Billboard’s comprehensive(ish) compendium of promotions, hirings, exits and firings — and all things in between — across music.
Sony Music Germany appointed Jean-Sebastien Permal and Jenny Walzer to run noted. records, the label giant’s newly launched electronic music imprint. A&R and strategy at the Berlin-based label will be handled by Permal, whose day job is vp of A&R for Europe & Africa, while marketing and operations will be the purview of Walzer, also a senior product manager at Sony Music. The label’s first signing is DJ-producer Anfisa Letyago, whose first track on noted. — “Feelin” — was just released.
Germany is the fourth-biggest market for recorded music, growing 7% in 2023, according to IFPI’s latest global report. The country also has the most dance music listeners on Spotify, on a monthly basis, according to figures via the annual IMS Business Report. Another key finding in that tome: “The global dance music business is now firmly in its post-pandemic growth phase,” with 17% annual growth and a valuation of $11.8 billion.
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“Electronic music as a genre has never been as potent as it is today,” said Permal. “We recognized the need to provide a home for artists with a strong and unique musical and visual identity. We are thrilled to have Anfisa Letyago as our first signed artist and are incredibly ambitious about her project.“
Meanwhile…
ASM Global named veteran sustainability strategist Lindsay Arell as its first-ever chief sustainability officer. The company’s portfolio already boasts more than 50 green certified venues, and Arell’s appointment speaks to its “leadership and commitment to sustainability,” says chief executive and president Ron Bension. Arell said she will will continue to lead Honeycomb Strategies, her 14-year-old consulting firm advising sports and events industry leaders on sustainable strategies. “I’m thrilled at the chance to spearhead ASM’s sustainability initiatives working alongside our teams and communities across our over 400 global venues.” Arell said. “By providing our venue teams with the necessary knowledge and resources, we can accelerate the progress of our program significantly.”
Reservoir made a slate of key promotions at Big Life, its UK-centric artist management agency. Kat Kennedy, Colin Roberts and Claire Kilcourse were promoted to partners, with Kennedy also taking on a new role as managing director, the company said. Combined, the trio have clocked roughly 46 years at Big Life — no small fete. “They’ve all shown incredible loyalty to the company,” said Big Life co-founder Tim Parry. “The longstanding relationships they have built with their clients are testament to their dedication, thoughtfulness, and expertise as managers, and I look forward to the continuing success they will bring to the Big Life brand.”
Samantha Sklar
Position Music promoted Samantha Sklar to vp of A&R at the Virgin Music-distributed indie publisher. Sklar, who joined Position in 2022 following a fruitful tenure at Warner Chappell Music, recently found success with the signing of Jack LaFrantz, who co-wrote Benson Boone’s hit “Beautiful Things.” While at WCM the A&R exec notably signed Stephen Kirk, co-writer of BTS’ “Butter.” Position Music head of A&R Mark Chipello dubbed Sklar a “publisher through and through [who] has an incredible drive to serve writers and create opportunities for them.”
Como No‘s founder Andy Wood announced he’s stepping down as director of the U.K.-based Latin music promoter company after 40 years, with Elena Beltrami unveiled as the new director. Wood will stay on as a non-executive board member. “On a daily basis I have felt humbled by the breadth of talent from Latin America and beyond that I have had the good fortune to work with,” said Wood, who formed Como No in 1985 and founded La Linea Festival, which just wrapped its 24th edition. “It’s been a privilege to work within a culture that I love, and with artists that I love in this great city of ours, for incredible audiences and with supportive venues and partners.” –Griselda Flores
AIM and BPI appointed Roxy Erickson as project manager of its ramped-up Music Climate Pact. The pact, initiated by the two UK organizations, works to bring music businesses together to take collective action to combat the climate crisis. The pact’s signatories include BMG, Beggars Group, Ninja Tune, Partisan Records, Secretly Group and the big three majors. Erickson is co-founder of Creative Zero, a collective of like-minded professions working to “generate positive environmental and social impact throughout the creative industries,” according to its website.
ALL IN THE FAM: Pam Sturchio is Billboard‘s new regional vp of brand partnerships, effective immediately. The Chicagoan joins Billboard after more than 10 years at Conde Nast, where she oversaw Midwest sales for the media company’s sprawling portfolio of brands … We also welcomed Lilian Gonzalez as our new e-commerce writer, based in Los Angeles. She was previously an associate producer at POPSUGAR, where she focused on all things beauty and fitness (including the Dance Fitsugar video series).
Joanne Hunter and Renata Muniz launched a new media and brand strategy agency called Out of Office Group. The partners, who both served as vps of media and brand strategy at Def Jam Recordings, have hit the ground running and are already working with several breakout acts, including KenTheMan, Shanae and Genia, among others. You can reach the LA-based Hunter and the NYC-based Muniz at info@outofofficegroup.com.
Dan P Carter, longtime curator of ‘The Rock Show’ on BBC Radio 1, joined Spinefarm Music Group as director of artist development. The London-based rock n’ roll evangelist will work alongside the Spinefarm team to sign and develop artists, and is set to report directly to general manager Jonas Nachsin. Other recent Spinefarm hires include Leah Devine and Tristan Pratt as marketing managers. Spinefarm’s current roster includes Bullet For My Valentine, Atreyu, Airbourne, Killing Joke, Black Label Society and While She Sleeps, among others.
Please & Thank You, an agency specializing in VIP events & experiences, hired a couple veterans of the experiential arts. Meg Pollaro is the Eddie Meehan-founded company’s new vp of business development and partnerships, following notable roles at CAA, WME/Endeavor and Superfly. At P&TY, she’ll connect the dots between brands, consumers and artists. Jason Barrett joined as vp of strategy and development following a GM role at WMX, the creative services division of Warner Music Group. At his politely named new job, Barrett will focus his efforts on creating long-term deals for artists, managers and agents.
Kendra Whitehead
NASHVILLE NOTES: Brown Sellers Brown welcomed Kendra Whitehead as director of artist relations and day-to-day management of Joe Nichols. The veteran radio promoter previously banked 11 years with BMG, specifically with Wheelhouse Records and Red Bow Records … The Folk Alliance International named Jennifer Roe executive director of the organization after holding the post in an interim capacity. She was previously the FAI operations director.
Recording Academy veteran Jeriel Johnson is celebrating early successes following the launch of Telescope Arts & Music Group, his own artist management and consulting company. Johnson, former executive director of the Academy’s DC chapter and most recently a senior director at UMG, announced that his first signing, Bajan singer-songwriter Ayoni, signed a record deal with Def Jam Recordings earlier this month. Johnson is also co-producing the next United States Army Field Band album and, as an artist, helped write a new track on Shenseea’s forthcoming album. You can reach Johnson at jeriel@telescopearts.com.
Endeavor hired public policy executive Matt Kaplan as vp of government relations. Kaplan was most recently director of public policy at Meta, with prior experience at Instacart and Lyft. In DC, he has worked for Sen. Sherrod Brown (D-Ohio) and the Biden-Harris campaign in 2020. His appointment at Endeavor was first reported by Variety.
Greg Kastelman joined Park Avenue Artists as co-director of artist bookings, working alongside co-director Devi Reddy. Kastelman spent the last five years running his own booking agency and brings to PAA a roster that includes Brazilian singer Badi Assad and Ethio-American singer Meklit Hadero, among others. “PAA’s approach reaffirmed my confidence that artist managers and agents could be compassionate and forward thinking, affirming artists in their journey,” Kastelman notes. “I am thrilled to be working alongside Devi and the agency to tackle big challenges and embrace unique opportunities.”
BOARD SHORTS: Indie music publishers trade body IMPF elected six new members to its board at its 2024 general assembly in Dublin. They are Emily Stephenson (Downtown Music Publishing), Rosa M. Vizcaíno Gómez (Ediciones Musicales Clipper’s), Claudia Mescoli (Edizioni Curci), Tatjana Bukvić (Tin Drum Music), Cecilia Léon Rodrigo (Ediciones Joaquín Rodrigo) and Denise Andrikopoulou (D-Version Music Publishing) … The National Association of Broadcasters elected five new members to its NAB Radio Board: Mary Menna (Beasley Media), Chris Forgy (Saga Communications), Erik Hellum (Townsquare Media), Tim Swift (Bonneville) and Jerry “J” Chapman (Woof Boom Radio).
Symphonic Distribution hired BMG and UMG veteran Stephen Nightingale as vp of A&R and business development, Canada. Reporting to Symphonic’s chief creative officer, Randall Foster, Nightingale will be responsible for expanding the independent music distribution and marketing company’s roster and building up its partnerships in the region. Based in Toronto, Nightingale was most recently vp of recorded music in Canada for BMG. Earlier in his career, he was a marketing and business development exec at Universal Music Group.
ROYAL TEA: Prince Harry and Meghan, the Duke and Duchess of Sussex, have a new executive communications team in place. Charlie Gipson is director of communications and will be point of contact for all UK and European media outlets. Kyle Boulia is deputy press secretary and director of communication for US media relations and is based in Los Angeles. They replace Miranda Barbot, who has been upped to vp of programs and media operation for the D&DofS.
ICYMI:
Elliott Wilson
Gary Roden abruptly resigned as general manager of Oak View Group’s Co-op Live, the UK’s biggest arena that’s been beset with hiccups ahead of its opening … Audacy reduced its workforce by “less than 2%” … Elliott Wilson was named editorial director of UPROXX, HipHopDX and Dime magazine … Kelli Skye Fadroski joined the AEG-owned Crypto.com Arena, Peacock Theater, and L.A LIVE as Manager of Communications.
Last Week’s Turntable: ‘Tiny Desk’ Maestro Has New Job
A time-tested revenue model in the theater and concert world is to price the front seats highest, and sell them early to the act’s dedicated followers, then fill out the house with cheap seats to optimize cash flow and lower risk. Recorded music does the opposite: when an album drops, an artist’s music is immediately available on all streaming services to every subscriber, leaving no room for passionate fans to self-select into pricier options.
In gaming, at least since the days of Minecraft, superfans have been given early access to titles prior to their publication, generating revenue, feedback and word of mouth.
Movie studios use a similar model, charging for early access to cinema screenings of major films roughly 45 days before they are widely available to stream (typically first as a purchase, then as a rental). Apple used this windowed approach seeking to maximize revenue with Killers of the Flower Moon and Napoleon, as did Amazon Prime with Air.
The record industry seems to have missed the memo. Other than an early misfire trying out streaming exclusives on the artist-owned Tidal service, it doesn’t use a windowed approach. This is a huge missed opportunity.
One way for recorded music to open a more lucrative, superfan-based future is to turn to one of the icons of its past: vinyl records. Rapper Travis Scott figured this out, pressing 500,000 double-vinyl records of his Utopia album and making it available the same day he dropped it on streaming services. Scott has now sold the majority of them at $50 a pop, taking the risk, and reaping the reward. What if he had released those analog vinyl records before the album was launched digitally on streaming? If he had sold half the stock before the digital release, he would have grossed $12.5 million, perhaps banking $10 million of that as profit, all while supercharging his marketing machine as all those superfans paraded their prized product to their friends.
A limited-edition package of Scott’s Utopia on red vinyl.
Courtesy of Cactus Jack Records
Like the boy who cried wolf, we’ve been told again and again that the resurgence in vinyl is a blip, not a trend. Yet for 18 straight years it has continued to surpass expectations. For the past three years, it’s made up over a tenth of all label revenues from the consumer and this year will see labels reap over a billion vinyl dollars, with no slowdown in sight.
Analog is surging in book publishing, too, as printed books are now outselling their digital counterparts 4-to-1 and bookstores are ascending. Not long ago that would have seemed inconceivable.
Now let’s look at where the vinyl meets the road: the math. While streaming is a music industry success story, it’s also a commoditization story – selling more and more for less and less. Back in 2001, Rhapsody charged $9.99 to access 15,000 catalog songs; today Spotify et al charge roughly the same for 120 million songs. Add the impact of family plan, where typically three people share a $15 per month account and the value of an account user has fallen by 10% and that’s before you adjust for inflation. Vinyl is bucking this trend. Since 2016, retail prices for the platters that matter have risen 30%.
Will Page
Anjelica Bette Fellini
For a streamer to provide a record label the same amount of value from an album as a vinyl buyer, a customer would need to press play over 5,000 times — or stream for almost two weeks straight without sleep. Let’s be crystal clear on what this comparison really means: consumers are paying more for the same with vinyl but paying less to access more with streaming. So if you want to hedge your intellectual property bets, you’d better put some chips on black and spin the wheel at 33 1⁄3.
Management guru Peter Drucker once quipped that “the customer rarely buys what the company thinks it’s selling him.” In the case of vinyl, over half of buyers don’t even own a record player. So they’re not buying the music — they’re buying merchandise that gives them a sense of identity and connection to the artist. With streaming, you merely press your thumb on a piece of glass; owning, holding and displaying a curated vinyl record with unique artwork has much deeper meaning to a fan.
There are similar conundrums concerning vinyl’s relationship with the creator. Remember that streaming unbundled the album – so you could have nine filler songs on a killer Number One record yet not get paid for those songs. The book Pivot showed that Gotye’s 2011 debut Making Mirrors was the most streamed album of the year, but it was all down to one hit: Somebody I Used to Know. Strip that hit out and this record falls out of the Top 100.
Vinyl captures more in the unit value — no fan can realistically give your album $30 via streaming — and all songs receive the same payout. Saturday Night Fever soundtrack is arguably the greatest vinyl success story in history; yet the obscure Ralph MacDonald track “Calypso Breakdown” from that album earned the same as the Bee Gees signature track “Staying Alive” for every album sold. Investors in music catalogs should take note: supporting more vinyl releases stands to monetize the vast majority of songs currently owned that make almost no money from streaming.
Vinyl is not without its challenges. Measuring the size of its remarkable continued success story is just one. Recent changes by Luminate, the go-to source for industry data, wiped off 40% of the measured volume overnight, by flipping from extrapolating the size of the market to counting only those who opt in. That’s getting fixed, and will assuage the people it’s upset, but the point remains, there’s way more vinyl being purchased than Luminate measures.
Fred Goldring
Natasha Fradkin
There are other challenges, too. If counting bricks & mortar retail is hard, what about tracking online physical retail that’s based anywhere yet serves everywhere? London-based Juno is a corner kick from Camden’s famous market and serves not just the UK and US, but Brazil and China in equal measure. Add the burgeoning second-hand platforms like Discogs and you get a sense that the true size of the market is a lot bigger than we give it credit for.
This brings us back to the potential of vinyl’s first mover advantage. Until the latter part of 2023, vinyl faced an enormous manufacturing backlog and demand far exceeded supply for even the biggest artists. Many vinyl albums were released many months after their initial streaming release.
A rise of small vinyl manufacturing plants have significantly decreased lag time and backlog. Travis Scott used the Poland-based team at Pressing Business to manufacture 500,000 double-disc, multi-cover, multi-colored Utopia albums in just five weeks, allowing for the highest vinyl debut for a hip-hop artist since records began in 1991. Combined with streaming, the album stayed at #1 for five weeks.
The record industry should start selling and delivering vinyl as an early access opportunity, not an afterthought. Pre-stream vinyl releases can create scarcity, exclusivity and therefore additional revenue from superfans who will jump at the chance to be the first to hear the music or own a limited edition version. Artists will benefit creatively as well, as superfans are the ones most likely to truly appreciate the album as a body of work, curated as the artist intended (and, many would argue, with better sound). Once music is thrown into the ocean of streaming, it often gets lost at sea, and all stakeholders lose something valuable. It’s time for the record industry to embrace the vinyl first mover advantage that is hiding in plain sight.
Will Page is the author of Pivot and former chief economist of Spotify, and Fred Goldring is an Entrepreneur, Entertainment Lawyer and co-founder of Pressing Business.