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Pam Matthews will retire from her role as executive director at the International Entertainment Buyer’s Association (IEBA) in the first quarter of next year after 11 years at the helm of the talent buying and booking organization.  Matthews modernized the group’s annual conference in Nashville, transforming the once sleepy get-together into a must-attend annual conference […]

This is The Legal Beat, a weekly newsletter about music law from Billboard Pro, offering you a one-stop cheat sheet of big new cases, important rulings and all the fun stuff in between.
This week: A lawyer repping alleged Diddy victims is accused of extorting settlements out of “innocent celebrities” by linking them to the rapper; NBA YoungBoy reaches a plea deal to resolve prescription drug charges; Sony settles a copyright lawsuit over Whitney Houston’s biopic; and much more.

THE BIG STORY: Mystery Celeb Sues Diddy Crusader For Extortion

Back in October, shortly after Houston attorney Tony Buzbee announced that he’d be filing a torrent of abuse litigation against Sean “Diddy” Combs, he gave an interview to TMZ warning that he was also planning to sue other celebrities who had “allowed it to go on” and “said nothing” about the alleged abuse: “All of these individuals and entities in my view have exposure here,” he said.

Trending on Billboard

During the same interview, Buzbee confirmed that he’d already been sending legal demand letters to those high-profile individuals and that some had quickly inked settlements to avoid lawsuits and keep their names private. In a clip from the TMZ newsroom discussing the interview, one staffer said: “It just feels like a money grab!”

Now, it turns out that sentiment is shared by one of the celebrities Buzbee is targeting.

In a lawsuit filed Monday (Nov. 18) in Los Angeles, an unnamed “John Doe” celebrity accused Buzbee of extortion, claiming the attorney was threatening to unleash “wildly false horrific allegations” if they weren’t sufficiently paid off. Repped by a legal team from the white shoe law firm Quinn Emanuel, the mysterious “public figure” called Buzbee’s efforts a “cynical extortion scheme” aimed at “innocent celebrities” who have “any ties to Combs — no matter how remote.”

The case raises uncomfortable questions about the American legal system. Are threats of civil litigation and demands for settlement simply a cost-effective way for attorneys to seek justice for victims? Or are they tantamount to legalized blackmail, exploiting the publicity surrounding lawsuits and the risk of reputational ruin to coerce unearned payouts?

To Buzbee, who immediately announced that he would move forward with his lawsuit against the mystery celeb, it’s clearly the former: “It is obvious that the frivolous lawsuit filed against my firm is an aggressive attempt to intimidate or silence me and ultimately my clients,” he said in a statement following the filing of the extortion case. “That effort is a gross miscalculation.”

Other top stories this week…

MORE DIDDY NEWS – Prosecutors accused the disgraced rapper of seeking to “subvert the integrity” of his sex trafficking case from jail, including by contacting witnesses and orchestrating “social media campaigns” to influence public opinion and taint the jury pool. The star’s lawyers quickly fired back, claiming prosecutors had obtained their evidence by improperly searching his cell and violated his right to attorney-client privilege — actions they called “outrageous government conduct.”

LIL DURK UPDATE – Represented by a prominent new criminal defense attorney, Lil Durk pleaded not guilty to federal murder-for-hire charges over an alleged plot to kill rival rapper Quando Rondo in a 2022 shooting. At the same arraignment hearing, the judge also set a tentative trial date for early January, but that schedule could (and very likely will) be moved back as the case proceeds.

PLEA DEAL – Rapper NBA YoungBoy pleaded guilty to his role in a large-scale prescription drug fraud ring that operated out of his multimillion-dollar home in Utah — a location where he was already serving under house arrest stemming from earlier gun charges. The deal came with a 27-month prison sentence, but the penalty was suspended pending the resolution of YoungBoy’s firearms case.

METAL SETTLEMENT – Megadeth and lead singer Dave Mustaine agreed to pay $1.4 million to resolve allegations that they still owed commissions to Cory Brennan, a longtime manager who says he was “unceremoniously” fired and replaced by Mustaine’s son. But the deal will not resolve Mustaine’s countersuit, in which he claims that Brennan’s “repeated management failures” caused him serious harm.

“REAL LOVE” RESPONSE – Universal Music Group (UMG)asked a federal judge to dismiss a copyright lawsuit claiming Mary J. Blige’s 1992 hit “Real Love” sampled from “Impeach the President” by the Honey Drippers — a legendary piece of hip-hop source material used by Run-DMC, Dr. Dre and others. UMG argued that the accuser (Tuff City Records) popped up “out of the blue” decades later to sue over two tracks that “sound nothing alike.”

YE SUED YET AGAIN – The rapper (formerly Kanye West) was hit with a lawsuit over Vultures 1 from a group of Memphis rappers who claim the star and Ty Dolla $ign committed “brazen” copyright infringement by sampling from a 1994 song called “Drink a Yak (Part 2)” even after failing to secure a license. The new case is just one of more than a dozen that have been filed against Ye over claims of unlicensed sampling or interpolating during his prolific career.

WHITNEY CASE CLOSED – Sony Music reached an undisclosed settlement to end a lawsuit claiming the producers of the 2022 Whitney Houston biopic (Whitney Houston: I Wanna Dance With Somebody) never fully paid to use her songs, including “I Will Always Love You” and “I’m Every Woman.” The case, filed in February, said such licenses were particularly valuable in the context of musical biopics: “It is nearly impossible to explain the importance of a musician’s creative genius or unique style and talent without the use of the musician’s music.”

Global Citizen has made two key appointments to their executive leadership team, the company tells Billboard. Katie Hill, senior vp of music, entertainment and artist relations, has been promoted to chief music and entertainment officer, while lfeoma Chuks-Adizue has been hired as Global Citizen’s first-ever MD in Africa.
Hill has been at the company since 2014, leading the music, entertainment and artist relations team in securing renowned acts for Global Citizen’s festivals and campaigns to support the international education and advocacy organization’s mission to end extreme poverty. She’s worked closely with Beyoncé, Rihanna, Kendrick Lamar, Billie Eilish, Finneas, Coldplay, BTS‘ Jung Kook, BLACKPINK‘s LISA and many more artists, as well as their management teams, to ensure Global Citizen’s mission is clear and accessible. She also developed the company’s Ambassadors and Advocates for Change program, which has built long-term partnerships with Usher, Hugh Jackman and Priyanka Chopra Jonas.

“I’m thrilled to be joining Global Citizen’s executive leadership team as Chief Music and Entertainment Officer. It’s been an honor to help build such an important movement, which truly leverages the power of music and entertainment to create positive change in the world,” Hill tells Billboard in a statement. “When I reflect on the impact that has been achieved over my last 10 years at Global Citizen, I am inspired by the passion and dedication of so many incredible artists and partners across the industry that have joined us in the fight to end extreme poverty. I can’t wait to build on this collaborative impact.”

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Chuks-Adizue will spearhead Global Citizen’s activities in Africa, implementing its strategy across the continent including the next installment of Move Afrika: A Global Citizen Experience. In November 23, Lamar and his company, pgLang, teamed up with Global Citizen to create Move Afrika, a first-of-its-kind touring circuit across Africa that aims at driving economic investment, creating jobs and supporting entrepreneurship opportunities in each host country. Lamar headlined Move Afrika: Rwanda in Kigali last December, with pgLang set to serve as the curator of Move Afrika until 2028. According to a press release, that event employed more than 1,000 Rwandans and engaged 75% local crew and production staff, with a specific focus on creating opportunities for skill development and international skill training. Ghana joined Rwanda as a host country for Move Afrika earlier this year.

In her new role, Chuks-Adizue will oversee key partnerships that span business development, marketing, broadcast and event production, as well as Global Citizen’s Africa-based teams and operations. Based out of Global Citizen’s office in Lagos, Nigeria, Chuks-Adizue will also work closely with the company’s executive leadership in New York, playing an instrumental role in building relationships with private sector partners and within the philanthropic community.

“I’m honored to be joining the Global Citizen team in this newly created position to drive efforts and impact across Africa. Powered by everyday advocates, campaigns and events that span the world, Global Citizen’s efforts are critical to ending extreme poverty, and I’m humbled to bring my experience and leadership to this vital work,” says Chuks-Adizue. “I look forward to working with many fantastic partners to continue the momentum and growth of Move Afrika, the pioneering music touring circuit, and drive economic investment, job creation and entrepreneurship opportunities across the continent.”

Prior to joining Global Citizen, Chuks-Adizue served as executive director commercial at Chemical and Allied Products PLC (CAP PLC), a prominent paints manufacturer and distributor in Nigeria, and held key leadership roles at Procter & Gamble Nigeria and Cadbury Nigeria.

“Ifeoma’s extensive leadership experience, together with her passion for advocating for women and girls across Africa, perfectly aligns with Global Citizen’s mission,” adds Global Citizen president Liza Henshaw. “Her vast networks of relationships across various sectors will be instrumental in advancing our work across the African continent for years to come.” 

UnitedMasters has announced the promotion of music industry veteran Gerardo Mejía to the newly created position of senior lead of Latin music. This advancement recognizes Mejía’s significant contributions to the company’s growth and influence in Latin music.
Mejía, previously serving as an A&R at UnitedMasters, has been instrumental in expanding the company’s reach within the Spanish-language genre, boasting several achievements including discovering and signing 2024 breakout Latin superstar FloyyMenor, a teenaged rapper from Chile.

“UnitedMasters has really granted me the runway and latitude to follow my instincts and seek out artists who are unconventional, yet undeniable,” said Mejía in a press release. “They’ve given me the utmost trust, and it’s been incredible to continue my journey here. I’m very thankful and excited for what the future holds. The sky is most definitely the limit.”

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Under his guidance, FloyyMenor’s viral hit “Gata Only,” featuring Chris MJ, put Chilean reggaetón on the global map. Additionally, it won the Billboard Latin Music Award for Global 200 Latin Song of the Year and held the No. 1 spot on the Hot Latin Songs chart for 14 consecutive weeks, marking a historic achievement as Floyymenor and Chris MJ became the first Chileans in 25 years to top this list.

“Gerardo lives and breathes music. He has been a major force in the explosion of Latin music globally,” said UnitedMasters founder/CEO, Steve Stoute, in a press release. “He has an impeccable ear for talent and a knack for artist development while empowering his artists to exceed their potential time and time again. It’s a pleasure to announce this much-deserved promotion.”

UnitedMasters vp of music/head of A&R, Mike Weiss added, “We are incredibly proud to be promoting Gerardo to this role. Gerardo has continued to reinvent himself while discovering star artists for many years. This success did not happen overnight, and we can’t wait for the future in our Latin Music business.” 

As Mejía steps into his new position, he carries a robust record of multi-industry achievements. He first gained international attention as a young Ecuadorian immigrant turned U.S. pop sensation with his 1990 hit “Rico Suave.” The track not only charted impressively—peaking at No. 7 on the Billboard Hot 100, No. 2 on Hot Rap Songs, and No. 12 on Dance Singles Sales—but also played a pivotal role in ushering Latin music into the U.S. mainstream. Transitioning from Latin pop performer to Latin Power Player, Mejía’s strategic roles in artist development and A&R at major labels have continually shaped the evolving landscape of the music industry.

His tenure at Interscope Records was marked by facilitating Enrique Iglesias’ U.S. breakthrough, and he further impacted Latin’s growth by fostering the reggaeton movement during his time at Univision Records. Transitioning seamlessly into entrepreneurship, he also launched Rico Suave Coffee, intertwining his music and business acumen. This breadth of experience underscores his ability to shape the future of Latin music at UnitedMasters with a strategic and innovative approach.

Read our previous profile of Gerardo Mejía here.

Presumably, a lot of artists want their shows to be as environmentally friendly as possible. But with many factors contributing to a sustainable performance — from power sources to food vendors to fan transportation — it’s challenging for an artist to put on a truly green event without involving the many partners it takes to put on a show.
Now, a new initiative from U.K. live music advocacy group LIVE (Live Music Industry Venues and Entertainment) aims to help.  

Together with representatives from AEG, Live Nation, Wasserman, WME, CAA, UTA and other major players in the touring industry, including U.K. promoter Kilimanjaro Live, LIVE has written a collection of “green clauses” — suggested language that can be written into contracts between artists and agents, agents and promoters, and other agreements in order to produce sustainability-minded shows from the ground up.  

These green clauses offer recommendations for creating energy efficiency; waste reduction; water conservation; prioritizing plant-based, local and sustainable food; encouraging attendees to travel to the show using lower carbon emission transport; offering sustainable and ethical merch; and much more.  

Trending on Billboard

The project comes from LIVE’s working group, LIVE Green, which is led by Carol Scott — the principal sustainability advocate at global event producer TAIT — along with LIVE Green’s impact consultant Ross Patel. The suggested contractual language was launched on the LIVE Green website in October, and Patel tells Billboard that “there is absolutely a commitment to adopt them” within the industry, adding that “in some cases, those conversations are already happening.” 

Along with the clauses, LIVE Green has created a resource hub with information on how to execute sustainability practices and reduce carbon emissions at shows. These free guidelines primarily reflect the needs and capabilities of projects in the U.K. and North America, although Patel says the hub maintains a high level of relevancy for most event organizers, touring artists and their teams globally. 

Here, Patel talks about the goals of the clauses, how sustainability-minded tours by major artists have helped lay the groundwork and why, in his words, “doing something is always going to be better than doing nothing.” 

What were the conversations like in putting these clauses together, particularly given that you were working with global entities like Live Nation, AEG and the big agencies?

To a large degree, there wasn’t any disagreement in the primary content of what we were asking for, in terms of key things that need to be addressed, such as energy, power, water, food and transport. Those aspects were not really commented on. The red lining was to get clauses more in line with the tone of [each company’s] existing contract templates. They have to build them into contracts they already use, so a lot of it was just trying to make it fit.  

What was the process like, with so many participants whose needs and wants are related, but also specific? 

There was one sticking point we managed to resolve, which was the purpose of what this template was being designed for. It’s to provide something for anyone to have access to and to adopt and adapt as they see fit. In the end, we opted for an all-parties, best-endeavors wording, because that’s the thing that is going to be the most relevant to the most people.  

What were the sticking points? 

Of course, if you’re an agent, you’re going to want to see something that’s in favor of the artist. If you’re a promoter or venue, you’re going to want something more in favor of the venue or promotions company. As a working group, and certainly from LIVE Green’s perspective, we felt an all-parties and best-endeavors approach was the best way to start, with getting something out in the industry that wasn’t going to be a shock to the major corporates. We want them to participate in this, so that when someone now sees this in a contract, or when they now speak to each other to figure out how they want [a contract to look], there’s a starting point that isn’t in favor of either side. 

That makes sense.  

The next practical step is, let’s say Live Nation and WME — because they do so much business together — they will have templates they’ve already agreed on and negotiated. There’s a baseline that they’re happy with. They do that all the time, with lots of different clauses. This just happens to be one that is focused on sustainability that wasn’t in contracts before. 

How useful have sustainably-minded tours by artists like Billie Eilish and Coldplay been in creating examples for what you’re doing? 

It feels like the industry is ready for this because we have case studies of big booking agents, big promoters and big artists actioning what we’re now sharing with everyone else. They might have been just one-offs, but they’re operating. [It demonstrates] that it’s an option. 

If a venue hosts a Coldplay show, and that contract states the venue must do certain things for sustainability, then the following week, that venue has another artist who also has these clauses in their contracts, the hope is that those adjustments will eventually become permanent.   

Now, more often than not, larger venues tend to make the adjustment for the show, then revert to whatever their previous installation was. With a more consistent request of these changes, inevitably it will make sense for them to keep these things in place. 

So this small group of artists who are showing shows can be done this way are important, in terms of being a proof of concept? 

Exactly. There’s more and more examples of [these things working]. Hopefully this will put us in a position where the impetus is on everyone to help deliver these things. Some people will be further along than others. Some artists might already have contracts that far surpass what we’ve introduced. Some promoters or venues might already have their own sustainability criteria that’s far more developed than what we’re asking artists to sign up to.  

The point is that we’re hoping to expedite the conversation. Where someone might be further along, they can share what’s being done. There is now almost a contractual recognition to get them to where the other person is, to bring everybody up. 

Ross Patel

Courtesy of Ross Patel

To what extent do you think people feel more inclined to participate given that they’re already living with the realities of climate change?  

There’s a number of reasons, and that’s definitely one. I don’t think anyone can deny — well, there are still people that seem to be able to deny climate change somehow — but I think the majority of people have witnessed and experienced the impacts of climate change. Certainly, from an industry perspective, there is an ever-increasing and urgent need to acknowledge and address this and act, because we’re seeing how it’s affecting tours. We’re seeing the very real impacts of flooding, droughts, travel issues. We are losing business as an industry due to climate change.  

That’s something I think people are seeing on a terrifyingly regular basis, and therefore it’s at the top of the agenda. With the increased buoyancy of the live industry [after the pandemic], people have more to contribute, because it is a cost implication. It’s one that needs to be factored in as part of doing business. I wish we could have been in this position to do something earlier, but we’re here now, so let’s just move the dial as quickly as we possibly can. 

How are advancements in technology helping the cause? 

We now have proven, stable technology that allows you to run festival stages and live events on battery cells and don’t require diesel generators. We did have those three or five years ago. Hopefully through proven technological advances within the industry, we can not only introduce the audience to that which excites them and gives them a feeling of positivity and safety and hopefulness, but we can move those case studies and proof of concepts into policy and make these things contractually obligated. We can’t do that specific thing yet, but that is what I would like to see down the line. But that will be very much market dependent, artist dependent, event dependent. 

How enforceable are these clauses as the templates stand? What will be the tipping point for getting these things into contracts as a legal obligation? 

That will have to be in line with policy. We could, for example, write that if an event doesn’t provide fuel cells, then the contract is null and void. But is that a reality for that show, in that market, on that tour? Possibly, or possibly it just isn’t. There has to be a degree of people acknowledging what’s being asked of them in specific areas, and then, more importantly, using the resource hub that LIVE Green has developed.  

But using best endeavors means you’re looking at what’s in the clauses and doing anything you possibly can to respond to what’s in them. Doing something is always going to be better than doing nothing. 

Given the incoming administration in the U.S. and its anticipated loosening of environmental regulations, do you feel or fear there will be decreased momentum around this project and projects such as these?

My personal feeling is that the initiative will have a greater degree of support from the industry because of the election. Of course, any climate-related agenda now will be challenging to uphold, but the creative industries still have an opportunity to influence and drive audience behavior change through positive messaging and innovative climate solution implementation. There may not be a policy demand or regulation in place for a particular action, but that doesn’t and shouldn’t stop us from progressing anyway. It’s what the consumer, fans and wider industry want!

Louisiana-based rapper NBA YoungBoy pleaded guilty Monday to his role in a large-scale prescription drug fraud ring that operated out of his multimillion-dollar home in Utah.
The 25-year-old artist, whose real name is Kentrell Gaulden, walked into a courtroom in Logan, Utah, with his head hung low as he entered the plea for his part in the alleged scheme, KTVX-TV reported.

Gaulden was originally charged in the Logan District Court with 46 charges related to the alleged crime. On Monday, he pleaded guilty to two counts of third-degree felony identity fraud, two counts of third-degree felony forgery, and six counts of misdemeanor unlawful pharmacy conduct. Gaulden entered a “no contest” plea to the remaining charges.

Trending on Billboard

As part of a plea deal, Gaulden will not serve prison time in Utah. Instead, his four felony charges were reduced to Class A Misdemeanors and he was ordered to pay a $25,000 fine, the television station reported.

District Judge Spencer Walsh agreed to suspend a prison sentence as Gaulden is expected to serve a “substantial” 27 months in federal prison for related charges in a case stemming out of Weber County, Utah. Following his release, Gaulden will then be placed on five years of federal supervised probation.

“This is somewhat of a unique case where there have been multiple jurisdictions involved both in the federal and the state systems,” said state prosecutor Ronnie Keller. “This is just really a smaller cog in the bigger wheel of ultimately seeking justice.”

Gaulden had been living in Utah under house arrest having previously been allegedly involved in a 2019 Miami shooting. His relocation to Utah came as part of a deal in 2021 in which his lawyers argued that “moving to Utah would keep YoungBoy out of trouble.”

During his hearing Monday, Walsh said it was clear that Gaulden was a very talented young man.

“I’ve seen so many times where you have young men and women who have a lot of talent and potential. They can be robbed of that potential when they start to really struggle with their addictions,” Walsh told Gaulden. “I don’t want that for you.”

Walsh continued saying, “I’m sure that in your future, once you’re done with your federal prison time, you can be really successful on federal probation and have a really bright future where you can reach your full potential in every aspect of your life. Best of luck to you, Mr. Gaulden.”

Sony Music has reached a settlement to end a lawsuit claiming the producers of Whitney Houston’s 2022 biopic Whitney Houston: I Wanna Dance With Somebody never fully paid to use her songs.
The case, filed earlier this year, alleged that the companies behind the movie had signed deals for sync licenses to feature songs like “I Will Always Love You” in the film – but that more than a year after it was released, the label still hadn’t been paid a dime for those rights.

In a motion filed Monday in New York federal court, attorneys for Sony say they will drop the case voluntarily. The motion did not provide any terms of the apparent settlement, and neither side immediately returned requests for comment.

Trending on Billboard

Riding a wave of enthusiasm for musical biopics – 2018’s Bohemian Rhapsody earned more $900 million at the box office and Baz Luhrmann’s 2022 “Elvis” made $288 million – “I Wanna Dance” was released in December 2022 to middling reviews and an underwhelming return of $59.8 million gross.

A little over a year later, Sony added a copyright lawsuit to the movie’s woes – claiming the movie had featured “some of the most iconic and popular sound recordings of all time” without properly paying for them.

The February lawsuit claimed that Anthem Films, Black Label Media and others behind the movie had signed a sync license agreement on Dec. 5, 2022 – less than ten days before the movie’s release – covering the use of Sony’s sound recordings of Houston’s songs, also including “Greatest Love of All,” “I’m Every Woman” and the titular “I Wanna Dance with Somebody.”

Sony argued that the producers did so because they essentially had to if they wanted to create “a biopic about the life and music of Whitney Houston.”

“Unlike other types of films, musical biopics by their nature require use of the subject musician’s music, as it is nearly impossible to explain the importance of a musician’s creative genius or unique style and talent without the use of the musician’s music,” Sony wrote.

But the label said that by August 2023, it still had not been paid anything under that deal. After notifying Anthem of the problem, the company allegedly told Sony that it was waiting on funds from a tax credit owed by the state of Massachusetts. But such a payment never came, Sony said.

“As a result of Anthem’s failure to pay the fees to SME, it is clear that there was no license or authorization to use the SME Recordings used in the Film,” the company’s attorneys wrote. “Nevertheless, the Film embodying the SME Recordings was, and continues to be, exhibited, distributed, and exploited.”

HarbourView Equity Partners has acquired the master royalty income of renowned jazz guitarist, singer-songwriter and 10-time Grammy Award winner George Benson. Terms of the transaction were not disclosed. In the press release announcing the transaction, HarbourView Equity Partners founder and CEO Sherrese Clarke Soares said, “We maintain a commitment to be a canon for legendary culture […]

Amazon Music is updating its “Unlimited” subscription tier to give subscribers in the U.S., UK and Canada access to audiobooks from Audible’s library of one million-plus titles, the company announced on Tuesday (Nov. 19).
With the new perk, Amazon Music Unlimited follows in the footsteps of Spotify, which revamped its subscription offerings earlier this year to include a bundle of songs and audiobooks together. Though Spotify angered songwriters and publishers by arguing it didn’t need to pay the full mechanical royalty rate since it offered multiple royalty-earning services in one, it appears that Amazon Music will work with publishers to determine new rates privately. According to a statement by the National Music Publishers’ Association (NMPA), the trade organization is “optimistic” about Amazon’s new offering and is “engaged” with the company in a “respectful and productive way” to find a compensation model for publishers that “will not decrease revenue for songwriters.”

Subscribers to AMU’s individual plan and primary holders of family plans are entitled to one audiobook of any length per month, a perk that continues even after each billing cycle. For those whose appetite for audiobooks exceeds the one-per-month offer, additional titles can be acquired through Audible via monthly subscriptions or a la carte purchases. 

Trending on Billboard

The additional perk comes without an increase in price — for the time being. Steve Boom, vp of audio, Twitch and games, said Amazon’s strategy is be “to add new things to the product” that add value and later “figure out what the right pricing strategy is in the long term.” In the U.S., AMU costs $9.99 for Prime members and $10.99 for non-Prime subscribers, both less than Spotify’s $11.99 monthly fee and, for non-Prime subscribers, equal to to Apple Music’s $10.99 price.  

Spoken-word content has already proven a valuable complement to music. After AMU added podcasts in 2020, subscribers embraced having both music and spoken-word content in the same app, noted Boom. “The convenience of having both music and spoken word in the same app has proven really effective. It makes logical sense to bring audio books into it as well.”

Audiobooks will not be made available to Amazon Music Prime, the tier included with a basic Prime subscription, or Amazon Music Free, a free option with playlists, radio stations and podcasts. 

The concept of “bundling” multiple services together has become a hot-button issue for songwriters and publishers. At the start of March, Spotify Premium subscriptions, including family and duo tiers, were quietly reclassified as bundled offerings, with both music and audiobooks included in the plans.

According to the stipulations of Phonorecords IV — the government-regulated guidelines that dictate the mechanical royalty rates for streaming from 2023-2027 — bundled services can qualify to pay out a lower royalty rate for publishing given that subscription dollars must be split between multiple services (in this case, books and songs). As a consequence, Billboard calculated that publishers and songwriters will earn an estimated $150 million less in U.S. mechanical royalties than previously expected in the 12 months following the change.

At the time, NMPA’s CEO/president David Israelite said he would “declare war” on Spotify — and he subsequently launched a multi-pronged effort to stop the streamer. This included sending Spotify a cease and desist for unlicensed lyrics, video and podcast content; filing a legislative proposal with both the U.S. House of Representatives and the Senate Judiciary Committees; and filing a Federal Trade Commission complaint. Around the same time, the Mechanical Licensing Collective (the MLC) sued Spotify for “improperly” classifying these tiers as bundles.

“We are optimistic about the new Amazon bundle,” Israelite told Billboard in a statement. “Amazon has engaged with the music publishing and songwriting industry in a respectful and productive way, unlike Spotify. We expect this new Amazon bundle will not decrease revenue for songwriters. Unlike Spotify, Amazon is looking at music creators as business partners and seeking to have a deal in place before the first round of royalty payments. This is in stark contrast to Spotify who is trying to pervert the compulsory license and slash what they pay songwriters.”

The NMPA and Amazon Music have not yet reached a final agreement.

“I feel like that guy in Don’t Look Up,” says Andrew Batey, co-CEO/co-founder of streaming fraud detection company Beatdapp. “I’ve been yelling about the comet coming for years, and so many people haven’t taken it seriously. Now, I think it’s arrived.”
On Nov. 4, Universal Music Group sued TuneCore and its parent company Believe in a $500 million copyright infringement lawsuit, claiming that TuneCore’s “business model” of letting users upload a massive volume of songs for a low flat rate is powered “by rampant piracy” and that TuneCore “makes little effort to hide its illegal actions.”

According to the lawsuit, some of these uploads are remixed or sped up versions of UMG hits and titled with slight misspellings of the artists or works they are infringing — like “Kendrik Laamar,” “Arriana Gramde,” “Jutin Biber” and “Llady Gaga.” UMG also alleges that TuneCore has “taken advantage of the content management claiming system” on YouTube “to divert” and “delay… payment of royalties” that belong to record labels.

Trending on Billboard

The nine-figure lawsuit serves as a searing indictment of the way one of the world’s largest DIY distributors is allegedly conducting its business. It’s also being viewed as an indictment of the business model of DIY distribution as a whole because, as Jamie Hart — founder of publishing administration company Hart & Songs — explains, “These problems are definitely not unique to TuneCore.” Throughout her career, Hart has spent time at SoundCloud and at Downtown’s YouTube royalty collection service AdRev (now part of FUGA), learning about the intricacies of rights management online, and why it can get so messed up. “This is happening across all self-upload distribution companies at a big rate, and it has been happening for years.”

Along with users profiting from content containing copyrighted material that doesn’t belong to them (sometimes colloquially referred to as “fraud,” “fraudulent content,” or “modified audio” in certain contexts), experts say DIY distributors are also usually the pipes that let in an excessive amount of songs that will be used in “streaming fraud” schemes — a term used to describe the process of artificially juicing stream counts to siphon money out of the royalty pool.

Batey and fellow Beatdapp co-founder/co-CEO Morgan Hayduk see this is the start of a serious crackdown on distribution companies like TuneCore, with “a small window for [distributors] to get on board” and clean up their issues with infringement and fraud before it leads to serious consequences. For those unwilling to put in the extra effort to prevent much of the illegal activity on their services, the Beatdapp leaders fear the financial penalties from streaming services or lawsuits from rights holders, like UMG, could be harsh enough to put some of the small players out of business and lead to consolidation.

“We don’t want to see consolidation,” Hayduk says. “It’s healthy to have a lot of distributors in the market, for users and for our business, too. We want to see them clean up their act, but they need to start now.”

Over the last few years, there have been a number of efforts made to address the growing problems in DIY distribution — from streaming fraud to copyright infringement to sheer volume. Last year, TuneCore, Distrokid, CD Baby, Symphonic, Downtown and more joined together to form the Music Fights Fraud coalition, an attempt to self-police these issues through a shared database. (Since then, Beatdapp alleges that there has only been an increased amount of streaming fraud across the industry.) Spotify also announced new amendments to its royalty payment models in an effort to curb these issues, including financial penalties for distributors and labels that perpetuate fraud.

But this fall, a number of high-profile instances of anti-fraud regulation have started popping up in quick succession. In September, federal prosecutors indicted a North Carolina musician in the first ever federal streaming fraud case, alleging he used two distributors to upload “hundreds of thousands” of AI-generated tracks, and then used bots to stream them, earning him more than $10 million since 2017.

Then, in October, TikTok cited issues with “fraud” as its reason for walking away from renewing its license with Merlin, a digital licensing coalition representing thousands of indie labels and distributors. Instead, TikTok reached out to Merlin members individually — something which TikTok says could help them curb fraud from specific members, but which Merlin calls an excuse to “fractionalize” its membership and “minimize” TikTok’s fees for indie music.

Experts are torn about whether or not the problems at these DIY distributors will be easy or hard to solve. One DIY distribution employee, who requested anonymity, says stopping bad activity is a never ending game of “wack-a-mole” and that it is “impossible to catch everything” even with a quality control team. “There’s so much content pushed through at once that a lot slips through the cracks.” They add, however, that there is too much of an emphasis on “quantity over quality” at these companies and that they need to hire more quality control personnel than they have right now.

But Larry Mills, senior vp of sales at Pex, a company that provides tools for content identification and rights management, believes “it actually isn’t that hard of a problem to solve. Some distributors and DSPs are just making a business decision to use lesser technologies that aren’t tuned to finding modified audio or covers until they are forced to.”

Beyond contracting a third-party service, like Pex or Beatdapp, or spending a millions on more full-time staffers, there are also much more simple measures that can be taken. Greg Hirschhorn, CEO/founder of distributor Too Lost and a member of the Music Fights Fraud coalition, said in an October interview that his company has seen significant success by simply requiring users to submit a photo ID and a selfie before uploading songs to Too Lost. “There’s no hiding from it, and it’s easy,” Hirschhorn says. “If you break the law using our site, I have your information, and I can just send it to local law enforcement or to the streaming service.” Hirschhorn claims he has offered to implement this same service for fellow MFF members, but he says no one has taken him up on it.

According to Mills, the new UMG lawsuit against Believe has encouraged more action. “Thankfully, people are starting to take this seriously. Our phones are certainly ringing more since [the UMG lawsuit],” he says.

An employee at one of the DIY distributors also has seen a change in attitude about these problems in light of the UMG lawsuit. “A lot of us [in distribution] have been talking about this lawsuit,” this person says. “This is a systemic issue in distribution. No company is blameless … Other distributors should be f-cking nervous.”

For those in the business of helping artists and writers collect their rightful royalties online, like Hart and Jon Hichborn, founder of royalty tracking company Records on the Wall, “There’s too much responsibility on the rights holder,” as Hichborn puts it, to police their copyrights. “It’s mind boggling. I track down royalties 24/7. Imagine if I wanted to be a musician who was writing and performing? There would not be enough time in the day to do it all.”

Still, the continued dysfunction and challenges stemming from DIY distributors has birthed a lucrative cottage industry for companies like Pex, Beatdapp, Hart & Songs, Records on the Wall and more that are designed to clean up the mess that is protecting copyrights and collecting royalties on the internet today. “My business unfortunately does thrive on everybody screwing up,” laughs Hichborn. “It’ll never go away.”

It’s unclear what the future looks like for DIY distributors. While Beatdapp foresees “extinction” for distributors that don’t get their act together, Hirshhorn predicts great change “in the amount of quality control, the amount of KYC [“know your customer” checks], the amount of diligence required,” but he doesn’t see it as an apocalyptic event. As he’s found with the implementation of ID checks, even if the scale of songs a distributor releases goes down some, a distributor can still thrive. Too Lost, he says, is doing better than ever, earning over $50 million in annual revenue this year.

“At the end of the day, you just shouldn’t be able to make money on the internet — whether it’s from music, gaming, or the creator economy — if you don’t disclose exactly who you are,” Hirshhorn says. “That just makes total sense… The music industry is always slow to adopt any changes, but this is what the future will look like.”