Business
Page: 193
R. Kelly’s attorney on Monday (Mar. 18) urged a federal appeals court to overturn the singer’s sexual abuse convictions, warning that the case against Kelly stretched federal racketeering laws “to the point of absurdity” and could potentially turn college fraternities into illegal conspiracies.
At a hearing before the Court of Appeals for the Second Circuit, lawyer Jennifer Bonjean told a panel of judges that Kelly’s employees had just been “unwitting” staffers performing “anodyne” tasks for a famous person, not a group with a criminal “purpose” like the Mafia or a drug cartel.
Seeking to reverse Kelly’s conviction under the federal RICO law (Racketeer Influenced and Corrupt Organizations Act), Bonjean accused prosecutors of using that law in a “preposterous” new way.
Trending on Billboard
“The government has extended the RICO statute to a set of circumstances that is so beyond what the framers intended, which was to get at organized crime,” Bonjean said. “Now, we’re talking about an organization with an alleged criminal, but not organized crime.”
After decades of accusations of sexual misconduct, Kelly was convicted in September 2021 on nine RICO counts related to accusations that the singer had orchestrated a long-running scheme to recruit and abuse women and underage girls. In 2022, he was sentenced to 30 years in prison.
At Monday’s hearing, Bonjean repeatedly told the judges that the government had failed to prove that members of Kelly’s organization knew crimes were being committed, meaning the RICO law didn’t apply. She said, for instance, that staffers didn’t know any of the women were underage.
But Assistant U.S. Attorney Kayla Crews Bensing, arguing back for the government, sharply rejected that claim: “The defendant had a system in place that lured young people into his orbit and then took over their lives,” she told the judges.
Bensing pointed to specific evidence that members of Kelly’s organization had been aware of the organization’s ill intent. She cited testimony that one victim had been approached by a member of Kelly’s entourage at a McDonalds, that she told him that she was only 16 years old and that he had then given her Kelly’s number and told her to call him. Another Kelly employee testified that he had answered phones for “Kelly’s girlfriends,” Bensing said, some of whom he identified as “mid-aged teenagers.”
“This is all evidence that the jury was entitled to infer that Kelly’s inner circle knew what was going on: that he was recruiting and maintaining underage women for sexual activity,” Bensing said.
Kelly faces long odds in his battle to topple his conviction, as federal appeals courts only overturn a small percentage of the convictions that are appealed each year. But Bonjean has had success in such cases in the past, most notably winning a 2021 ruling that overturned Bill Cosby’s 2018 sex assault conviction.
Following Monday’s arguments, the court will issue a ruling in the coming months.
Like in many appeals, large parts of Monday’s hearing were spent wrangling over in-the-weeds legal issues, like whether a single sexual act could fit the definition of “forced labor” under federal law, or whether Bonjean even had a procedurally proper way to fight her appeal since Kelly’s previous attorneys had failed to challenge the instructions given to the jury at trial.
On her main point about whether RICO requires an illicit “purpose,” Bonjean repeatedly faced pushback from the judges. The judges pointed out on multiple occasions that there is no written requirement that the law only be used against outright criminal organizations, and one judge specifically noted that labor unions had been repeatedly charged with violating RICO.
“RICO is looking at organizations, that are then used to commit criminal acts,” Judge Denny Chin said. “It doesn’t have to be a criminal organization. It could be a completely legitimate organization. But if it engages in racketeering activity, it violates RICO.”
But Bonjean remained adamant, arguing that the statute could not be brought to bear against an organization like Kelly’s, which she said merely had the purpose of promoting his musical career and personal brand.
“This was not a collection of people who had a purpose to recruit girls for sexual abuse,” Bonjean said. “Whether they turned a blind eye, whether some of them suspected that some of these girls were underage, that’s a whole different matter.”
“Once we get into that sort of territory, where we’re going say that that constitutes a RICO enterprise, we have a lot of organizations, we have a lot of frat houses, we have all types of organizations that are now going to become RICO enterprises,” Bonjean added.
Pushing the point further, Bonjean said that such an approach would have allowed federal prosecutors to charge infamous Ponzi scheme perpetraor Bernie Madoff with RICO violations rather than the slew of fraud charges he actually faced. At that point, Judge Richard J. Sullivan cut in.
“Well, he got 150 years,” Sullivan said. “I don’t think that it mattered.”
Live Nation shares gained 4.0% to hit $103.77 this week, marking the stock’s best closing price since May 2, 2022, and the first time the concert promotion giant had five straight closes above $100 since late April and early May that same year.
Other music stocks didn’t fare as well. Most of the 20 companies in the Billboard Global Music Index dropped this week, with 13 stocks losing ground and just seven finishing the week in positive territory. The index fell 0.1% to 1,697.90, marking the first time it’s decreased in successive weeks since it fell during three consecutive weeks in October 2023. Multi-week declines are rare for the index: Since the beginning of 2023, it has had just two two-week declines, two three-week declines and one four-week decline (in July and August 2023). This week’s slight drop brought the index’s year-to-date gain to 10.8%.
In a relatively quiet week free of earnings releases or market-moving news, there was roughly an even mix of gains and losses from the most valuable companies. Universal Music Group increased 2.1% to 27.32 euros ($29.77) while Spotify dropped 1.7% to $254.89 and Warner Music Group (WMG) fell 2.9% to $32.94. Elsewhere, German promoter CTS Eventim rose 2.1% to 76.70 euros ($83.56) and reached a new 52-week high of 77.80 euros ($84.76).
Trending on Billboard
K-pop companies rebounded after a string of weekly declines. HYBE improved 2.3% to 199,000 won ($149.59) and SM Entertainment climbed 2.5% to 74,900 won ($56.30). YG Entertainment jumped 6.3% to 43,050 won ($32.36) but is still down 19.6% year to date.
French indie music company Believe finished at 15.52 euros ($16.91), still well above the 15.00 euros ($16.34) tender offer by a consortium that seeks to take the company private. WMG has expressed interest in Believe at 17.00 euros ($18.52) per share.
The companies with the largest gains and losses are among the least valuable on the index. The week’s greatest gainer was Abu Dhabi-based music streamer Anghami, which rose 15.6% to $1.11 and has a market capitalization of just $30.7 million — less than 0.1% of Spotify’s. Radio broadcast giant iHeartMedia and French music streamer Deezer had the index’s biggest losses of 10.0% and 10.3%, but iHeartMedia’s market cap is only $255 million while Deezer’s is about 245 million euros ($267 million).
The index’s four live music stocks had an average gain of 0.9% this week, topping the 0.4% gain of the seven record label and publishing stocks. Five streaming stocks averaged a less than 0.1% decline. Three radio companies — iHeartMedia, Cumulus Media and SiriusXM — had an average decline of 5.1%.
Key U.S. indexes also saw small declines this week. The Nasdaq composite fell 0.7% to 15,973.17. The S&P 500 fell 0.1% to 5,117.09. In the United Kingdom, the FTSE 100 gained 0.9% to 7,727.42. South Korea’s KOSPI composite index declined 0.5% to 2,666.84. China’s Shanghai Composite Index grew 0.3% to 3,054.64.
In their much-cited 2023 paper “Glocalisation of Music Streaming within and across Europe,” Will Page and Chris Dalla Riva note that the rise of global streaming platforms correlates with the strengthening of local music.
This seemingly contradictory state is what the authors refer to as “glocalisation” — or “glocalization” in the American spelling. And in Latin music, that phenomenon has led to a spike in local genres like corridos, banda, funk and Argentine rap in recent years.
According to Pedro Kurtz — Deezer’s head of music for LATAM, speaking on a SXSW panel titled “Latin Music Momentum In The Age of ‘Glocalization’” on Tuesday (Mar. 12) — it’s about relatability.
Trending on Billboard
“We listen to music that we relate to, that represents us culturally. You look at artists and they’re speaking my language, and everything moves from there.”
Kurtz appeared on the panel alongside Cris Garcia Falcão, MD of label and artist strategy/GM of Latin at Virgin Music, and Sandra Jimenez, head of music in Latin America at YouTube — and the conversation (which I moderated) often turned lively between the three Brazilian executives.
Their points of view not only highlighted the glocalization phenomenon and how democratization and streaming dramatically changed Latin music, but also the similarities and differences between the Brazilian and Latin American markets, which many tend to lump together — even though they’re vastly different.
Although Brazil is an enormous and powerful market, the music is in Portuguese, and there is still a language barrier that must be broken down in order to break through internationally; even Brazilian megastar Anitta had to sing in Spanish to get noticed.
But, notes Jimenez, “There is no language barrier for Spanish. It’s almost like one big country. It’s a region with more than 300 million people. It’s a huge region.”
Its sheer size has given the region clout.
On YouTube, Latin America is “one of the top three regions in the world in terms of music consumption,” said Jimenez. For Deezer, added Kurtz, “It’s the second most important region in terms of streaming and engagement.”
And the vast majority of the content consumed on streaming platforms in Latin America is local.
For example, Falcão said that before the pandemic, “It was more about Anglo content. Now, it’s more democratic. Everyone should understand our region and our culture and adapt.”
Those who do, win. In Brazil, more than 80% of music consumption is local. In Mexico, says Kurtz, “72% of our streaming comes from local artists. It’s a big number, and local branches are getting more autonomy. Back in the day, we had other forces pushing music.”
Beyond the numbers, there are other intangibles. The Latin diaspora globally has led to music in Spanish, in particular, being consumed all around the world — and that phenomenon was accentuated during the pandemic. “It made us more internal,” said Jimenez. “It wasn’t possible to meet with friends and family, so we created community.”
As Latin music consumption has increased, so has music creation and investment in the region. Kurtz says that starting in 2020, Deezer has seen its number of weekly pitches in the region almost double — reflecting an increased interest in making music.
“It’s about people valuing their own cultures, and the charts are basically a mirror of that,” he said.
The global record business will soon pop the champagne to celebrate another year of streaming-led revenue growth, judging from the handful of individual country revenue figures for 2023 made public so far this year. The IFPI won’t release its 2023 report until Thursday (Mar. 21), but major markets such as the United Kingdom, France, Germany, Spain and Japan have already released data that shows 2023 produced another bumper harvest for record labels.
But while streaming continues to push markets in positive directions, growth has slowed, and revenue in some markets remains well below the levels of the CD era. Worse yet, some countries may have insufficient streaming growth to get back to earlier peaks.
SNEP, the recorded music trade group in France, issued a stark warning this week when it announced that the country’s 2023 revenue rose a respectable 5.1% to 968 million euros ($1.05 billion at the average exchange rate in 2023). But even though digital revenue rose 8.8% to 620 million euros ($671 million) and streaming revenue climbed 9.2%, a 10% increase in subscription streaming revenue “remains too weak to fully fuel the development of the market even though it is the primary source of value creation,” SNEP wrote in its 2023 report.
Trending on Billboard
France might reasonably be expected to be faring better in 2024. The country was the sixth-largest recorded music market in 2022, according to the IFPI, and is the home of Deezer, an early entrant to the music subscription market. But in 2023, France had only a 16% penetration rate for paid subscribers, according to SNEP, “one of the lowest among the main music territories. The growth in revenue from these subscriptions is slowing down here while our market is far from having reached maturity.” This isn’t a brand-new concern: SNEP sounded the same alarm a year ago.
So, while streaming is creating new opportunities globally for labels, publishers and creators, it hasn’t grown enough to help France recapture revenue lost during the fall of the CD in the 2000s. France’s revenue of 968 million euros in 2023 was 25% below the 1.3 billion euros of revenue it enjoyed in 2002. In contrast, the U.S. market’s $15.9 billion in recorded music revenue was well above the peak of the CD era, $14.5 billion, set in 1999, according to the RIAA.
Elsewhere, some major recorded music markets have announced decent gains in 2023 without voicing the kind of dire warning seen in France.
The German recorded music industry grew 6.3% in 2023, the BVMI announced Mar. 6. Digital revenue grew 8.4% and accounted for 81.5% of total revenue. Audio streaming rose 8.4% and accounted for 74.8% of the total market and 92% of digital revenue. Physical sales accounted for 18.5% of total revenue and rose 0.1% from 2022. CD sales dropped 5.9% but accounted for 11.3% of total revenue and about 61% of physical revenue. Vinyl sales grew 12.6%.
Spain’s recorded music market grew 12.3% to 520 million euros in 2023, Promusicae announced Tuesday (Mar. 12). Streaming grew 17.3% to 398.6 million euros ($432 million) and accounted for 77% of total revenue, which was a remarkable 150% higher than the low point of 159.7 million euros ($212 million) in 2013. But, like France, Spain has yet to match its peak revenue from the CD era. Last year’s revenue was on par with the 475 million euros ($534 million) seen in 2005, itself a sharp decline from revenue that surpassed 700 million euros ($630 million) in 2001.
Aside from SNEP in France, only the BPI in the United Kingdom sounded an alarm of any sort. The market’s recorded revenue rose 8.1% in 2023 to a record 1.43 billion pounds ($1.78 billion), the organization announced Thursday (Mar. 14), with streaming revenue increasing 8.4% to 962 million pounds ($1.2 billion) and accounting for 67.4% of total revenue, up from 67.3% in 2022 and well above the 8.6% seen a decade earlier. But BPI CEO Dr. Jo Twist cautioned not to take the growth for granted and emphasized the need for “significant label investment” to keep the market prosperous.
There’s a reason the kind of gains music markets are seeing currently might not feel like unqualified success stories: inflation. Adjusted for inflation, revenue in France last year was actually 48% below 2002; and in 2022, the United States was 38% below its 1999 peak.
These major markets’ failure to return to CD-era highs helps explain the music business’s unprecedented land rush as companies invest in developing markets in search of export-ready artists and untapped streaming potential. Both majors and independents are investing in Africa, the Middle East/North Africa, Asia and South America — regions with large populations, under-monetized streaming markets and exportable music that could generate royalties in Western countries.
Those developing markets, and some major ones like the United States and United Kingdom, helped global recorded music trade revenue reach a new high of $24 billion in 2021, surpassing the $23.2 billion from 1999 (unadjusted for inflation). While both the United States and United Kingdom surpassed their CD era peaks in 2021 (without adjusting for inflation), some other major markets are still trying to recapture their glory days. Growth-minded companies in those markets may have to look beyond their borders to get there.
Jimmie Allen‘s former manager has agreed to dismiss her lawsuit claiming the country singer sexually assaulted her, ending the case less than a year after it was filed.
In court papers filed Thursday (Mar. 14), attorneys for Allen and his unnamed Jane Doe accuser — his former day-to-day manager — jointly asked a federal judge to dismiss her claims against the country singer. In the same filing, Allen also agreed to drop his counter-suit accusing the woman of defamation.
Jane Doe’s attorney, Beth Fegan at the law firm FeganScott, confirmed the agreement to Billboard: “FeganScott can confirm that Jane Doe and Jimmie Allen have reached a mutual accord as to Plaintiff’s claims and Mr. Allen’s counterclaims and have agreed to dismiss them The decision reflects only that both parties desire to move past litigation.”
Trending on Billboard
A rep for Allen did not immediately respond to a request for comment.
Though the claims against Allen will be dropped, the case will continue against management firm Wide Open Music, where the Jane Doe plaintiff was employed, and its founder, Ash Bowers. In her lawsuit, the accuser says Wide Open and Bowers didn’t do enough to protect their employee from Allen’s abusive behavior and fired her when she complained about it.
The agreement also won’t fully end Allen’s legal woes. The country star will continue to face a second lawsuit, filed by another Jane Doe, who claims that the singer assaulted her in a Las Vegas hotel room and secretly recorded it. That case remains pending.
Allen was a rising star in the country music world at the start of last year, but in May and June he was hit with the pair of sexual abuse lawsuits in quick succession. Following the accusations, his label, booking agency, former publicist and management company all suspended or dropped him.
The first case, filed on May 11, alleged that Allen had “manipulated and used his power” over the woman on his management team to “sexually harass and abuse her” over a period of 18 months that elapsed from 2020 to 2022.
“Plaintiff expressed in words and actions that Jimmie Allen’s conduct was unwelcome, including pushing him away, sitting where he could not reach her, telling him she was uncomfortable and no, and crying uncontrollably,” the woman’s lawyers wrote in the complaint. “However, Allen made clear that plaintiff’s job was dependent on her staying silent about his conduct.”
The second lawsuit, filed on June 9, accused Allen of battery, assault and other wrongdoing over an alleged July 2022 incident at the Cosmopolitan Hotel in Las Vegas. Though the Jane Doe in that case says she had “willingly joined Allen in the bedroom,” she claimed she had “repeatedly told him she did not want him to ejaculate inside her” because she was not on birth control, but that Allen had done so anyway. She also claimed that he had secretly filmed the encounter on his phone despite the fact that she had “not consented to being recorded”
Allen strongly denied all the accusations, saying he would “mount a vigorous defense.” He later counter-sued both women — accusing the management employee of defaming him and claiming that the other woman had stolen the phone he allegedly used to record her.
HipHopWired Featured Video
Source: Brandon Bell / Getty
It seems the complaints behind McDonald’s ice cream machines have hit the fed’s radar. The DOJ has formally addressed their faulty equipment.
The Verge is reporting that the global fast food chain’s signature soft served dessert is the topic of discussion for the not only the United States Department Of Justice but also the Federal Trade Commission. On Thursday, March 14 both the agencies submitted a joint filing regarding the Digital Millennium Copyright Act. In essence the DMCA criminalizes any production, deviation and repairing of any copyrighted works.
The act covers all McDonald’s ice cream machines as they regard to as “commercial and industrial equipment.” These appliances are actually purchased from Taylor Products Inc., an ice cream equipment supplier based out of Edison, New Jersey thus they are the only party who can perform repairs on the machines. Furthermore, the technicians who are licensed to service the machines are few and far between. The DOJ’s submission asking that the DMCA be reviewed citing “renewing and expanding repair-related exemptions would promote competition in markets for replacement parts, repair, and maintenance services, as well as facilitate competition in markets for repairable products.”
According to Gizmodo restaurants lose an average of $625 dollars a day when their ice cream machines are inoperative. McDonald’s has yet to formally comment on the DOJ’s filing.
To many people, Joe Keery is the actor known for playing Steve Harrington on the beloved Netflix show Stranger Things, or Gator Tillman on the most recent season of FX’s Fargo. What those people may not know is that he’s also the creative behind the music releases under the moniker Djo and has been releasing music for the past five years under that name through Sony-owned AWAL. He started by licensing his music through the company’s distribution service and, over the years, rose through its tiered offerings to release two projects via its AWAL Recordings label.
The most recent of those projects was Decide, Djo’s 2022 album that broke through and was well received by critics, garnering him his biggest looks from the music press to date. Now, two years later, the Decide track “End of Beginning” has become a massive hit on TikTok. The song has flown to the top of the TikTok 50 chart and landed “End of Beginning” not just a spot in the top 25 of the Hot 100 (it currently sits at a new peak of No. 23) but into the top 10 of both the Global 200 (at No. 6) and the Global Ex-U.S. charts (No. 7) as the song explodes not just Stateside but around the world.
Trending on Billboard
That marks a huge success for Djo and serves as an example of how AWAL’s tiered offerings can help an artist go from hobbyist side project to worldwide success; it also helps earn AWAL CEO Lonny Olinick the title of Billboard’s Executive of the Week. Here, Olinick talks about the success of “End of Beginning,” Djo’s rise through the AWAL ranks and how the company helped support the song’s growth as it began to take off on social media. “We are seeing many people who are discovering ‘End of Beginning’ and loving the song, and are digging deeper,” Olinick says. “And when they do, discovering that the person behind it is so talented in many different ways is just adding to their connection to the project.”
This week, Djo’s “End of Beginning” jumps into the top 10 of Billboard’s Global 200 (No. 6) and Global Ex-U.S. charts (No. 7), his first global chart entry and first top 10. What key decision did you make to help make that happen?
Projects that create meaningful impact always begin with the right A&R decision. You never lose when you partner with artists who have a real creative vision, the drive to be successful and great music to go along with it. That has been the case with Joe and this project since day one.
When it comes to the success of this record, the way we have structured AWAL really allows us to mobilize on a global basis immediately. As we started to see “End of Beginning” react, we were able to spread the story in every country, tied in with the specific way it was reacting. That meant everything from press to content creation to DSP partnerships to radio, depending on the market. Joe even went to the U.K. to present at the Brits and visit key partners, with only a few days’ notice.
Djo first started out distributing his music through AWAL, then rose up through the company’s offering tiers to now doing full recordings deals with AWAL. How did you help guide that trajectory?
We are really lucky that we work in a system that allows us to find the best way to work with music we are passionate about. Ultimately, the projects help guide this process themselves. It becomes pretty clear when an artist is raising their hand and is in the right place to be supported further. I think the traditional way of looking at it — that an artist goes from doing everything on their own to counting on someone else to do everything — isn’t relevant in today’s world. The ramp should be guided by the connection an artist has made with an audience and the potential to grow beyond that base.
In Joe’s case, that is exactly what happened. When we first started working with him, he needed distribution and marketing/content advice. If we had pushed to do more too fast, we might have suffocated the creative process and organic growth he was experiencing as an artist. By the second project, there was a more defined fan base and he was ready for our team to handle marketing and push the story globally. And then we have a moment with “End of Beginning” where we are pushing every lever available to a record label on a global basis. And most importantly with that, pushing them in a way that is focused on creating fans of Djo, not just fans of “End of Beginning.”
“End of Beginning” was originally released two years ago, then caught a new wave on TikTok earlier this year. How were you able to capitalize on that to continue to boost the song’s success?
It is critically important that we let the artist and the art dictate what is possible. In this case, we started to see such great engagement around this song and amazing content being created. Joe was excited to continue the dialogue with the audience and so our job was to spread this in a way that respected the song and artist. From there, we dig into the who, what and where of the moment. From creating new content to support the song, to pitching DSPs, radio and press, and facilitating in-person moments, our team created and executed this strategy on a global basis. And importantly, it changes in real time as the moment evolves.
But most importantly, this has to be led and driven by the artist and that is what happened with Joe. And Joe is supported by an amazing manager in Nick Stern, who has always known when to lean into moments and when to let the fans do what they do on their own.
The song’s appearance in the top 10 on the global charts speaks to the enormous success it’s having not just in the U.S., but also around the world. How have you worked to help the song grow internationally?
To start with, we don’t care where an artist is signed or even where they are based. We let the fans tell us where there is an opportunity to engage further. Since this is ingrained in our DNA, we look at every artist with a global perspective. That has meant that our team has spent as much time focusing on what we can do in Latin America and Asia as we have on what can be done in the U.S., U.K. and Europe. As it turns out, the audience for this song is everywhere and so our team has been everywhere. But it’s easy to say we want to be global. What’s hard is to create and execute a unique plan for each and every market, and that is exactly what our team has done.
Djo — Joe Keery — is also an actor that many people know from Stranger Things and Fargo. How has his success in other mediums also helped you guys with his music career?
To be honest, this is one of the things that makes this project most meaningful and that starts with Joe. Even when I was introduced to the project five years ago, I had no idea it was Joe. I listened to the music and loved it and only found out after the fact. And that has been the way Joe has wanted it to be. He puts the music first and doesn’t want people to listen to it or discover it because he is an actor. And because of that, he has built up a hugely engaged music audience first, many of whom don’t know that he is behind Djo.
It has been interesting to watch this moment evolve. We are seeing many people who are discovering “End of Beginning” and loving the song and are digging deeper. And when they do, discovering that the person behind it is so talented in many different ways is just adding to their connection to the project.
What else are you looking to do to continue to push the song, and Djo’s career overall, moving forward?
Career is the most important part of that question. We are relentlessly focused on using this moment to create new fans for Djo, vs. just fans of “End of Beginning.” We are seeing great engagement with his whole catalogue and there are so many great songs he has put out that are getting new exposure. We believe there is a lot of life left in this song, but at the end of the day, we are spending a lot of time planning out the next two years and continuing to build a story that has already been five years in the making. So many artists have moments that they aren’t ready for and you see that, quickly, it can only be about the song. In this case, we have an artist and their team who has done the work in so many different ways and is fully ready.
How has AWAL shifted along with the music business in the last few years?
We have been fortunate to be ahead of where the industry is going for a while now. We always had fair deals and a model that allowed us to partner with artists in different ways. And most importantly, we always were a music company that prioritized being in business with artists that we love and knowing how to truly develop those artists. Our track record of developing meaningful artists really is different from any other non-traditional company.
But that doesn’t mean we are in any way complacent. I find that our team is hungrier than we have ever been. And being a part of Sony has been an incredible accelerant to everything we planned to do. We have doubled down on the creative side of our business both in helping on the music side and the content side. The creative part of our jobs is what we ultimately all are here for. We have also built out the global side of our business even further. We have new teams in India, Spain, Brazil, Mexico and Nigeria with more offices opening up in the coming months. I look at the last eight years as the hard preparation work for where the market was going. It is fun to see now how uniquely positioned we are even as so many others are trying to adapt to this new music world.
Billboard Power Players is expanding to Canada for the first time in 2024, nominations have now officially opened via this nomination form.
For its relative size, the country has produced some huge international success stories over the last decade, with artists like Drake, The Weeknd, Shawn Mendes, Justin Bieber and Tate McRae making big waves on the world stage.
That’s the case behind the scenes, too, including previous Power List honourees like Kristen Burke, the president of Warner Music Canada and the only female head of a major label in Canada; Wassim “Sal” Slaiby of The Weeknd’s XO Records and the founder of Universal Arabic Music; and Michael Rapino, the Canadian-born president and CEO of Live Nation who finished fourth on the recently revealed 2024 Power 100 list, behind only Taylor Swift and the global CEOs of two major labels.
Trending on Billboard
Billboard Canada Power Players, however, will be the first time the award will be exclusive to Canadians or those who’ve made an impact in Canada’s music industry. – Richard Trapunski
New U.S. Visa Fees Could Prove Costly for Canadian Musicians
The U.S. Citizenship and Immigration Services (USCIS) has published its final rule updating visa fees in several categories, along with a Frequently Asked Questions page summary.
Overall, creative arts petitioners will be hit with higher costs, increased petition prep requirements, and lengthier times for premium processing. This will affect Canadian and other musicians, as well as art workers, travelling across the border to play in the U.S.
After consultation with stakeholders including the American Federation of Musicians, final fees have been reduced from the initial amounts proposed by the Department of Homeland Security for nonprofits and certain small businesses with 25 or fewer employees.
The new fees, though, could prove costly for Canadian musicians, for whom crossing the border is a necessary part of a music career.
The fee increases were originally for early 2023, but will now take effect on April 1, 2024. – David Farrell
Music Declares Emergency Will Host a Climate Summit in Halifax Ahead of the Juno Awards
Music Declares Emergency (MDE) Canada is looking to spark conversation about the climate crisis at this year’s Juno Awards. Ahead of the ceremony on March 24, the advocacy organization will host a Mini Music Climate Summit at the Halifax Central Library, on March 22, to promote the need for climate action in the music industry.
The free, one-day event will consider topics such as sustainable transportation, carbon calculation, merch and food, and much more, providing an opportunity for industry members to share best practices and develop strategies around curbing emissions in the industry. MDE Canada previously held Canada’s first Music Climate Summit in Toronto in 2022.
The climate summit accompanies MDE Canada’s Climate Emergency Concert on March 17 in Halifax, where artists like Talia Schlanger and Jenn Grant will pay tribute to Neil Young and Joni Mitchell, two Canadian musicians who have used their platforms to promote environmental awareness. – Rosie Long Decter
Last Week ‘In Canada’: No to ‘Laughs,’ But Yes to Women in Music
LONDON — Strong growth in streaming, vinyl and even CD sales saw music spending in the United Kingdom increase for a ninth consecutive year in 2023, according to annual figures from labels trade body BPI published Thursday (March 14).
Total U.K. recorded music sales — comprising digital and physical revenues, public performance rights and sync — climbed 8.1% to 1.43 billion pounds ($1.8 billion) last year.
That’s the highest nominal amount ever achieved in the U.K in one year, although when the figures are adjusted for inflation, last year’s record revenues are actually 478 million pounds ($610 million) below the 1.9 billion pounds ($2.4 billion) where the music industry should have been in real terms since 2006, the first year when public performance and sync were included in the annual total, reports BPI.
Driving the growth was an 8.4% year-on-year rise in streaming revenues, which increased to 962 million pounds ($1.2 billion) and accounted for just over 67% of annual trade revenues in 2023 — broadly flat with its share of the U.K. market in the previous 12-month period. Ten years prior, streaming represented just 8.6% of British labels’ income.
Trending on Billboard
Breaking down streaming revenue, paid subscriptions to services like Spotify and Apple Music generated 827 million pounds ($1 billion), up 8.1% on 2022, while ad-funded revenue grew by over 12% to 71 million pounds ($90 million) and video streaming trade income rose 6.9% to 64 million pounds ($82 million).
Download sales fell 5.8% to 26 million pounds ($33 million), while total digital revenue was 989 million pounds ($1.2 billion), up 7.9% on the previous year.
BPI reports that nearly 2,250 artists registered more than 10 million audio streams in the U.K. last year — a rise of 17% over the past two years — with Miley Cyrus’ “Flowers” the most-streamed track, racking up almost 200 million audio and video streams. Behind Cyrus was Dave and Central Cee’s “Sprinter” (160 million streams) and “Escapism” by Raye featuring 070 Shake (142 million streams).
In terms of physical format sales, labels and artists received 243 million pounds ($310 million) in 2023, up almost 13% on 2022, when physical trade revenues dropped by a tenth.
Fueling physical’s recovery was a double-digit (18.6%) rise in vinyl album revenues, which totaled £142 million ($181 million) on the back of popular new releases by Taylor Swift, The Rolling Stones and Lana Del Rey, who had the top three best-selling vinyl titles in the U.K. last year with 1989 (Taylor’s Version), Hackney Diamonds and Did You Know There’s A Tunnel Under Ocean Blvd, respectively.
More surprisingly, CD revenues also grew in 2023, up 5.4% year-on-year to just under £100 million ($127 million) with Take That’s This Life the year’s biggest-selling CD release.
Despite the compact disc’s resurgence, which BPI partly attributed to high-profile annual marketing events such as Record Store Day and National Album Day, vinyl moved further ahead as the country’s leading physical format in terms of label income, making up just over 58% of all physical music trade revenue, compared to 55% the previous year.
Public performance revenue climbed 7% year-on-year to 155 million pounds ($198 million), while sync sales dropped 7.6% to just under 40 million pounds ($51 million).
BPI’s year-end figures differ from those released by the Digital Entertainment and Retail Association (ERA) in January as the two organizations have different counting methods.
BPI’s financial figures are based on Official Charts Company (OCC) data and a survey of its record label members, which include the U.K. arms of Universal Music Group, Sony Music Entertainment and Warner Music Group, as well as over 500 independent labels. ERA’s year-end results, which also use OCC data, also include retail value, hence the higher numbers.
The U.K. is the world’s third biggest recorded music market behind the U.S. and Japan with sales of just under $1.7 billion in trade value, according to IFPI’s 2023 Global Music Report.
“Led by streaming, this ninth consecutive annual rise in recorded music revenues highlights how a balanced and prosperous market enabled by significant label investment can help even more artists to succeed,” said BPI CEO Jo Twist in a statement.
The Black Eyed Peas and Daddy Yankee are facing a lawsuit over allegations that they illegally sampled from classic 90s song “Scatman (Ski-Ba-Bop-Ba-Dop-Bop)” — a case that claims the artists “simply lied” in order to “avoid paying a larger licensing fee.”
In a lawsuit filed March 8, the company that owns the rights to “Scatman” accuse will.i.am (William Adams), Daddy Yankee (Luis Ayala Rodríguez) and others of “clear-cut copyright infringement” over their use of Scatman John’s ear-catching 1995 track in their own 2022 song “Bailar Contigo.”
The current owners of “Scatman” (Iceberg Records AS) claim that they granted a “limited license” allowing the superstars to use the underlying written music, but explicitly warned that a license to actually sample from the sound recording would cost more. The case claims the artists agreed to those terms, but that their “assurances turned out to be pretense.”
Trending on Billboard
“After comparing the tracks, it is apparent that the derivative work and the song are so strikingly similar that defendants have used the sound recording of the song, rather than just the composition, as agreed,” attorneys for Iceberg write in their lawsuit. “Defendants simply lied to plaintiff about not using the sound recording in order to avoid paying a larger licensing fee.”
The new case highlights the distinction between sampling (the use of an actual recording of an artist’s performance) and interpolation (the use of the same music but re-performed by the new artists). Sampling licenses require paying the owners of both the master and publishing copyrights to a given song, and thus typically cost more than interpolation licenses.
In the case of “Scatman” and “Bailar Contigo,” Iceberg claims it inked an interpolation deal with the Black Eyed Peas and Daddy Yankee in October 2022 in return for 75 percent stake in the publishing rights to the new song and a 5 percent income stream from the new recording. But Iceberg, which also owns the master to the song, says the contract “made clear” that the agreement was not a sampling deal.
“Rights to the recording of the original work (so called master rights) are not subject of this approval and require separate licensing,” the 2022 agreement purportedly read.
But when the song was released in November 2022, Iceberg’s lawyers say it obviously included a sample, not just an interpolation: “Although it appears that defendants attempted to manipulate the sound recording slightly to hide their infringement, the work remains so strikingly similar to the song that it could not have been created without using the song’s sound recording.”
Reps for both the Black Eyed Peas and Daddy Yankee did not immediately return requests for comment on the allegations. In addition to naming will.i.am as a defendant, the lawsuit also named Black Eyed Peas members apl.de.ap (Allen Pineda Lindo) and Taboo (Jaime Luis Gomez); it did not name not Fergie, who left the group in 2018.
Faced with only being able to secure an interpolation deal and not an outright sample clearance, artists will sometimes re-record a song in ways that sound very similar to the original recording. But that practice can ruffle feathers with the owners of masters, and has led to disputes in the past.
Last year, Rick Astley filed a high-profilelawsuit against Yung Gravy over the rapper’s breakout 2022 hit that heavily borrowed from the singer’s iconic “Never Gonna Give You Up,” alleging that the new track — an interpolation that sounded a whole lot like an outright sample — broke the law by impersonating Astley’s voice. In that case, Gravy cleared the underlying music (which Astley does not own) but failed to secure a license to sample the master.
The lawsuit, premised on Astley’s likeness rights, raised big questions about sound-alike songs and sampling, but the dispute was settled on confidential terms in September.