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Online ticket resale platform StubHub is considering going public as soon as this summer if it can secure a valuation of more than $16 billion, according to media reports. The Information first reported on Friday (April 12) that StubHub is aiming for a valuation of $16.5 billion, or the valuation it received in 2021 during […]

SAG-AFTRA, the union representing roughly 160,000 actors, dancers, singers, recording artists and other media professionals, and all three major music companies reached a tentative multiyear agreement last week that includes guardrails for the use of artificial intelligence technology across the industry.
A successor to the SAG-AFTRA National Code of Fair Practice for Sound Recordings, the new deal received unanimous approval from the guild’s executive committee and, if ratified by member vote, will cover the period beginning Jan. 1, 2021 through Dec. 31, 2026. Participating labels include Sony Music Entertainment, Universal Music Group and Warner Music Group, as well as Disney Music Group.

The AI guidelines require that the use of terms such as “artist,” “singer” and “royalty artist” only refer to actual humans, plus the deal calls for clear consent, minimum compensation and other stipulations prior to the release of a sound recording using a digital replication of a real artist’s voice.

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The tentative contract also includes increased minimums, health and retirement improvements, and an increase in the percentage of streaming revenue to be covered by contributions.

“This agreement ensures that our members are protected,” said Duncan Crabtree-Ireland, SAG-AFTRA national executive director. “SAG-AFTRA stands firm in the belief that while technology can enhance the creative process, the essence of music must always be rooted in genuine human expression and experience. We look forward to working alongside our industry partners to foster an environment where innovation serves to elevate, not diminish, the unique value of each artist’s contribution to our rich cultural tapestry.”

The Record Label Negotiating Committee said, “Together, we’ll chart a successful course forward, embracing new opportunities and facing our common challenges, strengthened by our shared values and commitment to human artistry.”

A new law in Tennessee aimed at protecting artists from AI-powered voice mimicry has won widespread acclaim from the music industry, but some legal experts are worried such laws might be an “overreaction” that could have unintended consequences.  
Less than a year after a fake Drake song created using new artificial intelligence tools took the music world by storm, Tennessee lawmakers enacted first-in-the-nation legislation last month aimed at preventing exactly that scenario — the use of a person’s voice without their permission. The ELVIS Act (Ensuring Likeness Voice and Image Security) does that by expanding the state’s protections against the unauthorized use of a person’s likeness, known as publicity rights.  

The passage of the new law was hailed across the music business. Mitch Glazier of the Recording Industry Association of America called it an “incredible result.” Harvey Mason Jr. of the Recording Academy described it as a “groundbreaking achievement.” David Israelite of the National Music Publishers’ Association called it “an important step forward.” Any musical artist who has had their voice used without permission likely shares those sentiments.  

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But legal experts are more divided. Jennifer Rothman, a law professor at the University of Pennsylvania and one of the country’s top experts on publicity rights, rang alarm bells last week at a panel discussion in Nashville, warning that Tennessee’s new statute had not been necessary and had been “rushed” into law.  

“We don’t want a momentary overreaction to lead to the passage of laws that would make things worse, which is currently what is happening,” Rothman told her fellow panel members and the audience. “The ELVIS Act has a number of significant concerns that are raised, particularly with the broad sweep of liability and restrictions on speech.”  

In an effort to combat AI voice cloning, the ELVIS Act makes a number of key changes to the law. Most directly, it expands the state’s existing publicity rights protections to explicitly include someone’s voice as part of their likeness. But the new law also expands the law in ways that have received less attention, including adding a broader definition of who can be sued and for what.  

According to Joseph Fishman, a law professor at Vanderbilt University who has been closely tracking the legislation, that broader wording “sweeps in innocuous behavior that no one seriously thinks is a problem that needs solving” — potentially including tribute bands, interpolations, or even just sharing a photo that a celebrity didn’t authorize. 

“The range of acts that trigger liability is vast,” Fishman tells Billboard. “All the press around this law is focused on deepfakes and digital replicas — and those would indeed be covered — but the law as written goes so much further.”  

Here’s why: Historically, publicity rights in the U.S. have been mostly limited to commercial contexts — like advertisements that use a celebrity’s likeness to make it appear they’re endorsing a product. The singer Bette Midler once famously sued the Ford Motor Co. over a series of commercials featuring vocals by a Midler impersonator.

The new law effectively gets rid of that commercial limitation; under the ELVIS Act, anyone who knowingly “makes available” someone’s likeness without authorization can face a lawsuit. It also broadly defines protected voices as any sound that’s “readily identifiable and attributable to a particular individual.”

Those are great changes if you’re a musical artist trying to sue over a song that’s using a fake version of your voice, since the old conception of publicity rights likely wouldn’t apply to that scenario. But Fishman says they have serious potential for collateral damage beyond their intended target.  

“There’s nothing that would limit it to AI outputs, nothing that would limit it to deceptive uses,” Fishman said. “The lead singer in an Elvis tribute band who sings convincingly like The King certainly seems to fall under the definition. So do Elvis impersonators.”  

In an “even more extreme” hypothetical, Fishman imagined an “unflattering” photo of Elvis that he knew the Presley estate didn’t like. “The law seems to say I’d be liable if I sent that photo to a friend. After all, I’m transmitting his likeness, knowing that the rightsholder hasn’t authorized the use. Stop and think about that for a moment.”

The ELVIS Act does contain exemptions aimed at protecting free speech, including those that allow for the legal use of someone’s likeness in news coverage, criticism, scholarship, parody and other “fair use” contexts. It also expressly allows for “audiovisual works” that contain “a representation of the individual as the individual’s self” — a provision likely aimed at allowing Hollywood to keep making biopics and other films about real people without getting sued in Tennessee.

But confusingly, the law says those exemptions only apply “to the extent such use is protected by the First Amendment.” That wording, according to Rothman, means those exemptions essentially “don’t exist” unless and until a court rules that a specific alleged activity is a form of protected free speech, a costly extra step that will mostly benefit those who want to be in court. “This specific law creates great work for lawyers,” Rothman said. “So much work for lawyers.”  

Those lawyers are going to be filing real lawsuits against real people — some of whom are the scary, voice-cloning bad actors that the music industry wants to crack down on, but also some of whom are likely just regular people doing things that used to be legal.

“The law could absolutely lead to lots of lawsuits,” Fishman says. “There’s plenty of room here for people to test how far the statute can go, whether because they object to how they’re being depicted or because they see an opportunity for an extra licensing stream.”  

Though it only applies to Tennessee, the importance of the ELVIS Act is magnified because it is the first of likely many such legislative efforts aimed at addressing AI mimicry. At least five other states are currently considering amending their publicity rights laws to address the growing problem, and lawmakers on Capitol Hill are also weighing federal legislation that would create a national likeness statute for the first time.  

At last week’s roundtable, Rothman said those efforts were misguided. She said that laws already on the books — including federal trademark law, existing publicity rights laws, and numerous other statutes and torts — already provide avenues to stop voice cloning and deepfakes. And she warned that the proposed federal bills posed even more serious problems, like allowing someone to sign away their likeness rights in perpetuity.

For other legal experts critical of the ELVIS Act, including Harvard University law professor Rebecca Tushnet, the hope is that any subsequent legislation, whether at the state or federal level, can be more directly tailored to the actual AI-fueled deceptions they’re supposed to address. 

“Any new laws need to be far more targeted at specific harms,” says Tushnet, who has written extensively about the intersection of intellectual property and free speech. “Right now, this statute and other proposals are dramatically overbroad, and threaten legitimate creative conduct.” 

Warner Chappell Music has entered an agreement to administer Electronic Arts‘ music library. One of the world’s largest gaming companies, Electronic Arts is home to titles like The Sims, Medal of Honor, Madden NFL, Apex Legends and more. Explore See latest videos, charts and news See latest videos, charts and news EA Worldwide executive and […]

Gustavo Lopez has launched a new “full service” multimedia entertainment company, Globalatino Music Partners, Billboard can announce. The venture will offer label services, artist management, publishing, distribution and touring, according to a press release.
Globalatino launches with in-house new record label, ReLo-Co Music, in association with Alejandro Reglero (previously Saban Music Latin‘s executive vp/GM), GUAU Talent Connect, a division in the company that will specialize in brand partnerships, led by Augusto Mendoza, and Strat-Viz, which will oversee strategic marketing and content creation with Rodolfo Rodriguez at the head of that division.

Lopez has also entered partnerships with TuStreams and Warner Music Latina for distribution and marketing strategies for selected artists. And he acquired a “majority” stake in Cigol Music, the label home to Colombian hitmaker Blessd.

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“Over the years, I’ve been privileged to work with some of the most important artists in Latin music, enjoying tremendous success in diverse genres from reggaetón to música mexicana. Everything I’ve learned has now come together at Globalatino,” Lopez said in a statement. “Most recently working alongside entertainment visionary, Haim Saban, added to my lifelong commitment to artist development. At Globalatino we’re 100% dedicated to superserving our artists.”

The announcement comes three months after Virgin Music Group acquired Saban Music Latin’s catalog. For five years, Lopez served as the company’s CEO since Saban Music Group launched in 2019 by entertainment mogul Haim Saban, and later oversaw the creation of Saban Music Latin in 2022.

Prior to joining Saban, Lopez was the longtime GM and executive vp of Universal Music Latin, where he launched Latin urban label Machete Music, home to artists like Wisin & Yandel and Don Omar, and also ran Universal Music Latin Entertainment’s regional Mexican labels, Fonovisa and Disa. After leaving Universal in 2017, he launched indie music company Talento Uno, which was acquired by Saban.

About Globalatino, Lopez added, “We have the executive team, the expertise, the relationships, and the funding to help artists accomplish their dreams.”

Victoria Oakley is the new CEO of IFPI.Oakley will join the international labels trade association this June from global strategic communications and advocacy consultancy Portland, where she currently serves as CEO.

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The incoming chief executive has deep, international experience, having logged almost two decades in the British Diplomatic Service, with roles in London, Paris, Brussels, Washington D.C. and the Eastern Caribbean, where she was High Commissioner until 2016.

Later, she spent three years at Portland then joined Google as global public policy director. Oakley returned to Portland in 2022 in the role as CEO, leading a 300-strong team of strategic communications and public affairs professionals across London, Doha, Singapore, Nairobi, Paris, Berlin and Brussels.In her new leadership role, Oakley will coordinate with the Federation’s national group network as it continues its work in promoting and advocating for the value of recorded music and the rights of its 8,000 record company members, including the three major labels.

“I’m pleased that Vikki is joining the IFPI during this dynamic time for the music industry,” comments Sir Lucian Grainge, chairman and CEO, Universal Music Group. “Vikki brings the right skills and experience to help the global industry tackle important issues and opportunities collaboratively and with a fresh vision. We look forward to working with her.”

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Oakley, adds Robert Kyncl, CEO, Warner Music Group, “is a great choice to help lead the global campaign for the rights of artists and those who back them, and I’m excited she’s bringing her expertise and experience to IFPI.”

Says Rob Stringer, chairman, Sony Music Group: “Her decades of expertise combined with strong relationships around the world, will help us ensure music is recognized for the value it deserves and artists are always put first.”Oakley succeeds Frances Moore, who retired in December 2023 after leading the trade body since 2010.

Music stocks suffered their biggest one-week decline in nearly a year as inflation fears gripped the markets. In the U.S., the annualized inflation rate rose to 3.5% in March from 3.2% in February, the Department of Labor’s Bureau of Labor Statistics announced Wednesday. That drew concerns the U.S. Federal Reserve would alter its plan to cut interest rates in June. Combined with rising oil prices and weaker-than-expected earnings from banking giants JPMorganChase and Wells Fargo, there wasn’t much good news for investors. 

Fourteen of the 20 companies in the Billboard Global Music Index lost value this week. The index fell 3.2% to 1,782.67, the largest one-week drop since it lost 4.2% for the week ended July 28, 2023. Still, the Billboard Global Music Index is up 16.2% year to date and has increased 43% in the last 12 months. 

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Most major stock indexes lost ground this week. In the U.S., the S&P 500 dropped 1.6% to 5,123.41 and the Nasdaq composite fell 0.5% to 16,175.09. South Korea’s KOSPI composite index declined 1.2% to 2,681.82. China’s Shanghai Composite Index lost 1.6% to 3,019.47. The outlier was the U.K.’s FTSE 100, which improved 1.1% to 7,995.58.

Among music stocks, iHeartMedia was the biggest winner of the week after rising 6.3% to $2.18. The improvement came despite a lack of market-moving news or regulatory filing from the radio giant. In fact, the main reason iHeartMedia has been in the news lately has been less than flattering. In March, Forbes reported that iHeartMedia had paid ad revenue from Sen. Ted Cruz’s podcast, Verdict, to his political action committee (PAC). That led BP America to request that iHeartMedia not place its ads on podcasts that funnel ad revenue to PACs. Two campaign watchdogs, Campaign Legal Center and End Citizens United, allege that Cruz violated federal law and on Tuesday (April 9) formally asked the Federal Election Commission to investigate.

Hipgnosis Songs Fund, the London-listed company that invests in music rights, improved 5.7% to 74 pence ($0.92). HSF has gained 7.2% since the company’s board of directors released a damning due diligence report on March 28. Conducted by Shot Tower Capital, the report claimed the fund’s investment manager, Hipgnosis Song Management, overstated revenue and misled investors about the control it had over investments in its portfolio. The board will release its conclusions to the due diligence report by April 26 and will seek shareholder approval for its proposals at a not-yet-announced extraordinary general meeting. 

Sphere Entertainment dropped 10.7% to $41.80 this week. On Monday, after Seaport Global downgraded Sphere Entertainment to neutral from a buy rating on growth concerns, the company’s share price dropped 3.8% to $45.00. The stock dropped another 5.3% on Friday despite no news or regulatory filings. U2’s 40-show residency wrapped up on Mar. 2, and the band led Billboard’s Boxscore in February with a $56.5 million ross from 10 concerts. Rock band Phish will perform a four-show run at the Sphere in Las Vegas from April 18-21. 

Believe shares dropped 9.8% to 14.88 euros ($15.88) after Warner Music Group announced on Sunday it would not bid on the Paris-listed company. Back on Mar. 7, WMG revealed its interest in acquiring Believe and stated it would pay “at least” 17 euros per share, an amount well above the 15.00 euros ($16.01) per share offer by a CEO-led consortium. Investors immediately bet WMG’s effort would prevail by bidding up Believe shares to nearly 17 euros. From Mar. 28 to April 2, Believe was trading as high as $16.92 and closed above 16.50 euros from Mar. 25 to April 5. With WMG out of the picture, the consortium’s initial offer of 15 euros per share is the new ceiling. 

The index’s most valuable companies had relatively mild declines. Universal Music Group fell 2.0% to 27.04 euros ($28.85) and Spotify dropped 3.2% to $300.53. Live Nation lost 2.4% to $100.99. CTS Eventim fell 3.8% to 82.00 euros ($87.50). HYBE declined 4.9% to 213,000 won ($154.28). After deciding not to pursue Believe, Warner Music Group bucked the trend by rising 0.3% to $33.44. 

Quarterly earnings reports will give stocks a chance to rebound in the coming weeks. Of the release dates announced thus far, Spotify is first out of the gate on April 23 followed by Believe on April 24, Deezer on April 29, SiriusXM on April 30, Universal Music Group on May 2 and Warner Music Group on May 9.

After months of public handwringing over slow ticket sales, the annual Coachella Valley Music and Arts festival opens Friday (April 12) near Palm Springs with an anticipated attendance of nearly 200,000 fans over two weekends, sources tell Billboard, selling approximately 80% of the 250,000 tickets available for purchase this year. 
How the shortfall will impact the festival’s bottom line is unclear, but the sources close to the festival say the dip in sales, down 14%-17% over last year, is not as bad as many had predicted. The first weekend of the festival has historically sold out of tickets in a few hours, but this year, it took nearly a month for tickets to the first weekend to sell out. 

Coachella remains the most-attended and highest-grossing annual festival in North America, beating out Austin City Limits — which is also spread out over two weekends with an attendance capped at 75,000 people per weekend — and Electric Daisy Carnival at the Las Vegas Speedway, which saw attendance max out at more than 130,000 in 2022. 

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Coachella is also the largest media platform in the festival space, drawing in a massive viewership thanks to its partnership with YouTube and the hundreds of media credentials it assigns to major news outlets who provide nonstop coverage. In January, Gwen Stefani’s manager Irving Azoff told Billboard that one of the reasons No Doubt decided to stage their 2024 reunion performance at Coachella was due to the attention the festival attracted globally.  

But Coachella’s size and cachet doesn’t make it immune to the challenges facing much of the festival industry. A number of popular festivals set for the second quarter of 2024 — New Orleans’ JazzFest, which runs from April 25 to May 5, along with L.A.’s Beach Life festival in early May and Daytona Beach’s famed Welcome to Rockville festival May 9-12 — have not sold out of tickets, for example. Other popular events later in the year, like Governors Ball in New York (June 7-9), Electric Forest (June 20-23) and Lollapalooza (Aug 1-4), which used to sell out days after going on sale, haven’t sold out either. 

There’s little agreement on why sales have slowed. Ticket brokers used to buy up thousands of tickets to flip for profit on sites like StubHub, but sales volume for events like Coachella or Lollapalooza have dropped significantly in recent years as the markup potential has dwindled away.  

Booking agents from major agencies representing A-list talent have begun arguing that festivals need to create more lucrative financial incentives to attract better headliners, while many independent agents link the decline to price increases that have made tickets unaffordable. 

Ticket prices for Coachella increased $50 from 2022, when three-day GA passes cost $449, to $499 in 2024, an increase of about 11%. In 2019, prior to the pandemic, three-day GA passes were priced at $429. 

Booking agent JJ Cassiere, co-founder of independent booking agency 33rd and West, says festival fans are more sensitive to price increases than they have been in the past, especially younger fans who are seeing their spending power eaten away by inflation. 

“I’m very concerned about the fans who are finding themselves priced out of the market,” Cassiere tells Billboard, noting that even a $20 price increase can be a make-or-break hike for some fans.  

Other agents blame the dip in sales on headliner talent, arguing that the 2024 festival headliner pool — which, for Coachella, includes Lana Del Rey, Tyler the Creator, Doja Cat and No Doubt — doesn’t generate the same enthusiasm that touring artists like Taylor Swift and Beyoncé did in 2023. 

The festival’s lineup is a sign “that Coachella and nearly all other festival bookers had limited options when it came to talent,” says one booking agent who has worked with the festival for over a decade and asked to speak anonymously for this article. “The number of artists wanting to tour around festivals this year is very small.” 

For much of the 2010s, festivals were able to pay headlining artists as much as 50% more than artists would make headlining their own arena tours — after all, festivals often charged more for tickets, drew much larger crowds and covered much of an artist’s production costs. That began to change in 2016 and 2017, explains agent Jared Arfa with IAG, as ticketing companies like Ticketmaster and AEG AXS began focusing on the amount of money that scalpers were making selling tickets at large markups. To help close the gap and capture that revenue for artists, Arfa says, Ticketmaster and others began using programs like dynamic pricing and platinum to strategically increase the price of higher-demand tickets — such as front-row seats — and significantly increase how much artists were making at their own concerts.  

The result has been a huge increase in price, with the top 10 tours of 2023 earning an average of $5.7 million per show compared to 2017, when the top 10 tours were averaging $3.6 million per show — a 58% increase in only six years. 

“The issue for every festival now is that dynamic pricing is so good and prevalent that any artist big enough to headline a festival is more motivated to just headline their own shows,” one agent tells Billboard, noting that a headlining slot at Coachella in 2024 is less of a financial decision and more about artists “who are on their way up and need to make a statement.” 

“In the future,” the agent continues, “festivals need to adjust to accommodate this changing reality, by either paying headliners more or booking stronger undercards — but that’s not easy.” 

While headliners are important, Peter Shapiro with Brooklyn Bowl and Day Glo Ventures says spending more on talent isn’t always a viable long-term solution and notes that the best investments festival producers can make are in their festival community and overall experience. 

“People attend festivals because they enjoy an outdoor experience with other fans in a setting that feels comfortable,” Shapiro says. “That won’t change and the more organizers can invest in improving that experience, the more it will pay off in the years ahead.” 

Round Hill Music LP said Friday that producer and former American Idol judge Randy Jackson and management executive John Greenberg have joined the company as advisors.
Round Hill hopes the addition of Jackson and Greenberg will help it connect with a broader community of artists and further its ability “to source and secure early access to premium music rights investment deals in a competitive environment for high quality assets,” according to a press release.

Founded by Josh Gruss in 2010, Round Hill Music is a privately held fund that manages a portfolio of song rights worth around $900 million, according to the company. Concord acquired Round Hill’s publicly traded business, Round Hill Music Royalty Fund, last September in a deal originally valued at $469 million.

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Gruss said Jackson and Greenberg’s partnership will create business opportunities by reinforcing the company’s relationships with artists and songwriters.

“As one of the largest independent music rights holders in the world, we have big ambitions to grow our exposure to high quality, iconic music that stands the test of time and to continue to nurture the creator community through our wider group, which includes record labels, neighboring rights specialists and sync experts,” Gruss said in a statement. “We are looking forward to working with Randy and John to accelerate those ambitions and to continue unlocking music’s incredible potential on behalf of all our artists, writers and investors.”

A longtime musician and former A&R rep at Columbia Records and MCA Records, Jackson was an executive producer on the MTV series America’s Best Dance Crew as well as one of the original judges on American Idol.

Throughout his muti-decade career, Jackson has collaborated with Smokey Robinson, Whitney Houston, Aretha Franklin and performed with stars like Mariah Carey, Bob Dylan, Billy Joel, Bon Jovi, Keith Richards, Journey, Carlos Santana, Bruce Springsteen, Jerry Garcia and Bob Weir. According to the release, Jackson has earned more than 1,000 gold and platinum plaques, with over 200 million albums sold worldwide.

Greenberg is COO/founder of management company Shorebreak International. Since 1988, he has worked with artists including Steven Tyler, Duran Duran’s John Taylor, Mötley Crue’s John Corabi, Duff McKagan, Nickelback and Ratt.

As growth slows in large, developed markets, music companies are looking elsewhere for opportunities. Increasingly, companies are targeting superfans, the most fervent and high-spending of music consumers, to provide those revenue gains.  
The Pareto Principle says that roughly 20% of customers provide 80% of a company’s revenue. Whatever the breakdown, music companies are expecting more from a small subset of big spenders. Concert promoter Live Nation wants premium offerings such as VIP boxes to increase to 30% to 35% of its amphitheater business from the current 9%, president/CEO Michael Rapino told investors during the company’s Feb. 22 earnings call. Earlier this year, the heads of Universal Music Group and Warner Music Group revealed their desire to offer new types of services and products for the most fervent of music fans.  

Coming out of the pandemic, people — especially younger consumers — spent money “as a way to make up for lost time” and, later, to cope with stress, Intuit Credit Karma, a financial management platform, explained. Consulting firm McKinsey & Company calls this behavior “selective splurging.” According to a November 2023 global survey by McKinsey, 20% of all consumers planned to splurge on out-of-home entertainment such as concerts — less than restaurants (38%), apparel (34%) and travel (28%). 

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More than two in five Gen Z consumers (42%) spent more on live concerts than before the pandemic, according to a September 2023 survey by Qualtrics on behalf of Intuit Credit Karma. That was well above Millennials (34%), Gen X (19%) and Baby Boomers (11%). Last year, music fans paid high prices to see the two biggest cultural events: tours by Taylor Swift and Beyonce. Fittingly, Swift’s The Eras Tour was sponsored by Capital One, and some fans signed up for their first credit card as a result.  

A couple of years after pandemic restrictions ended, though, consumers have a spending hangover and seem less willing to reach deeper into their pockets. Ample data suggest that consumers are increasingly stressed from high prices — U.S. inflation rose to 3.5% in March from 3.2% in February — and the ending of pandemic-era forbearances that allowed people to put off payments on their mortgages and student loans.  

Splurging has given way to focusing on the basics. Consumers intend to spend more than usual on essentials such as gasoline, groceries, produce and pet food, as well as health and fitness, in the next three months, according to a McKinsey survey in February. In contrast, consumers intend to spend less on discretionary items: entertainment, domestic flights, hotel and resort stays, home improvement and alcoholic beverages. Luxuries such as jewelry, furniture and home decorations have the biggest gap between spenders and savers.

Rising debt is one reason consumers are pulling back on spending. In the United States, the ratio of credit cards and auto loans becoming past due by 90 days or more exceeds pre-pandemic levels. Delinquency rates are especially bad for younger consumers who are most likely to spend money on concerts and entertainment. In the fourth quarter of 2023, the Gen Z delinquency transition rate — transitioning into delinquency — reached 11.86% compared to 8.53% in the fourth quarter of 2021, according to the New York Federal Reserve. Millennials’ delinquency transition rate rose to 9.56% from 6.53% two years earlier. Gen X and Baby Boomers’ delinquencies are also trending up but faring better (7.01% and 4.78%, respectively).  

For many young consumers who have taken on debt, 2024 will be a year to pull back. A third of Millennials and Gen Z say they have a shopping addiction, according to a survey by Qualtrics for Intuit Credit Karma conducted in February and March of this year. About three-quarters of Millennials and Gen Z surveyed by Qualtrics say they plan to change how they spend money. A full 20% of them said 2024 will be a “no buy year,” a recent trend where people swear off spending except to replace items, and 56% said they will have a “low buy year,” meaning they will reduce shopping significantly.  

Credit card debt is nothing new, though, and some experts believe consumers can take it in stride. Although credit card balances increased in 2023, consumers “largely still have the wherewithal to repay their existing obligations,” according to credit monitoring service Experian. In fact, the average FICO credit score improved to 715 in 2023 from 714 in 2022 despite the average credit card balance increasing 10%. In February, credit ratings agency Fitch revised its forecast for U.S. real (adjusted for inflation) consumer spending to 1.3% from 0.6%, largely on the belief that consumers will draw down savings throughout the year.  

High-priced concert tickets and experiences might be out of the question, but superfan spending is also more mundane. Artists routinely put out new albums with multiple CD and vinyl LP variants knowing that their most hardcore fans consider them to be collectibles (and purchase them to help their favorite artists top the charts). Swift’s 2022 album Midnights had 20 different versions across all physical formats. Those album sales accounted for 1.14 million of the 1.58 million units sold in its first week of release. At $20 or $30 apiece, supporting a favorite artist doesn’t require going into debt.

Music isn’t a necessity like food and shelter, but it’s proved to be both recession-proof and pandemic-proof. Regardless of the rises and falls in consumer sentiment, inflation rates and unemployment trends, people will spend money on music. But the broader trends around consumer spending may mean that the growth the music business hopes to reap from those superfans may not be as lucrative, at least for now, as they may have hoped.