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If it’s Friday, you know it’s high time for another spin around the Executive Turntable, Billboard’s comprehensive(ish) compendium of promotions, hirings, exits and firings — and all things in between — across music.
BMG made a switch in Brazil, promoting Daniel Fernandes to general manager as Jasmina Zammit departs to take on an international role at the music company’s Berlin headquarters. During his short time at BMG — he joined in 2022 as senior director of A&R — Fernandes is credited with signing Élcio di Carvalho, Ariel Donato and Raffa Torres. He was previously at Sony Music-owned Brazilian label Som Livre. BMG Brazil is based in São Paulo, where Fernandes and his team will work closely with Julio Vieira, vp of finance & operations for Latin America. BMG’s operation in São Paulo was launched in 2016 and evolved from managing existing repertoire to developing its own local signing strategy, offering music publishing and recordings under one roof. “I thank Jasmina for her trust and am looking forward to working with our amazing Brazilian roster and to further grow our local catalogue,” said Fernandes. “The opportunity to lead BMG Brazil’s team is both an honor and a privilege and I am thrilled and excited about the journey ahead.”
Daniel Fernandes and Jasmina Zammit
BMG
German-born Zammit is what you’d call a BMG lifer, having joined as an executive assistant in 2008 — the year it relaunched after Bertelsmann sold its stake in Sony BMG — and rising over the years to vp of international licensing and marketing in Berlin before making the move to Brazil, as general manager, in 2018. Two years later she was appointed managing director. “Setting up and heading the Brazilian operation has been quite a challenge, but foremost an amazing experience!” she writes on LinkedIn. “I am truly grateful for everyone who has helped me navigate through the peculiarities of the local music industry. Thank you to all the business partners, artists and writers for their trust!”
Zammit’s new role back home in Berlin is focused on Latin America and emerging markets.
Warner Music Group‘s global catalog team hired Jeremy Sponder as vice president of U.S. marketing for international repertoire. In his new role, Sponder manages stateside marketing activations for UK/international catalogs of both the shallow and deep persuasions. He’s based in NYC and reports to team vp of communications Lauren Papapietro, while also working closely with Katie Graham and Stuart Wheeley. Sponder shimmies over to WMG’s catalog team from ADA Worldwide, the company’s artist and label services arm, where he has been vp of catalog since 2021. Prior to ADA, Sponder marketed deep/shallow catolog content for UMG’s catalog division, UMEe, and before that spent time five years at at Sony Music-owned indie distributor The Orchard.
Nashville-based live entertainment promoter Outback Presents promoted Jenny Reid to vice president of ticketing, overseeing all ticketing operations and focusing on country and comedy events. Reid and her ticketing team have managed tours in North America for artists and comedians including Alabama, Nate Bargatze, Taylor Tomlinson and John Crist. Reid has been with Outback Presents for four years and previously worked at Huka Entertainment, Ticketfly and Eventbrite. “Jenny has built an incredible team that we are extremely proud of,” says Smardak. “With over ten years of experience in ticketing and box office operations, Jenny has lead the force to establish a powerful ticketing team at Outback.” –Jessica Nicholson
Board Shorts: Music Venue Trust, the UK charity that looks after the interests of some 900 grassroots venues, added four folks to its board of trustees. Joining are Ausa Qureshi, music program manager at Summerhall in Edinburgh; Emma Bownes, a programmer at The O2; Jane Beese, director of music at Factory International; and musician Rhoda Dakar. They join existing trustees Bonita McKinney, Phyllis Belezos, Scott Taylforth, Chris Prosser, Simon Hilton, Sarah Thirtle, Jason Dorman, and Jeremy Pritchard. Exiting the board are Sarah Clover KC and Lohan Presencer … Hipgnosis Songs Fund appointed Christopher Mills, the CEO of North Atlantic Smaller Companies Investment Trust, as an independent non-executive director of the company. HSF also disclosed the committee chair positions of the following members: Cindy Rampersaud, audit and risk management; Robert Naylor, nomination; Simon Holden, portfolio; and Francis Keeling, management engagement.
Last Week’s Turntable: New Leaders at Kakao and Vibe
Hipgnosis Songs Fund capped off an eventful 2023 by lowering the value of its music catalog amidst internal conflict over exactly what the company’s star-studded catalog is worth.
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The publicly listed royalty fund said its operative net asset value per share declined 9.2% to $1.74 on Sept. 30 from $1.92 on March 31, according to its half-year earnings report on Thursday (Dec. 21). The sharp decline stemmed primarily from a “material reduction” in expectations for CRB III and CRB IV income.
The company’s self-reported valuation has long exceeded the value implied by its share price and estimates of equity analysts. In recent months, Hipgnosis Songs Fund has proposed and completed partial catalog sales at discounts to their net asset values.
New board chair Robert Naylor‘s statement to investors described a strained relationship with the fund’s investment advisor, the Merck Mercuriadis-led Hipgnosis Song Management, over the valuation of the five-year-old company’s catalog that includes stakes in songs by Neil Young, Journey and Fleetwood Mac.
Two days earlier, the board postponed the release of half-year earnings after the investment advisor produced a “heavily caveated” opinion on the catalog valuation provided by independent firm Citrin Cooperman that was “materially higher than the valuation implied by proposed and recent transactions in the sector.”
Internal conflicts continued while the results were delayed. According to Naylor, the board’s request of Hipgnosis Song Management about “the matter to be published on the Company’s website in order to provide transparency for shareholders” was rebuffed “under the confidentiality clauses of the Investment Advisory Agreement.”
On Thursday, Naylor urged Hipgnosis Songs Management to provide an opinion on the valuation of Hipgnosis Songs Fund “without caveats” to provide greater transparency to shareholders. In the absence of a caveat-free opinion, the board urged investors to use “a higher degree of caution and less certainty” than normal when considering its fair value and operative NAV.
Hipgnosis Songs Fund shares fell 1% to 0.70 GBP on Thursday.
Gross revenue from continuing operations declined 26.9% to $63.2 million from $86.4 million in the six-month period ended March 31, 2023.
Net revenue from continuing operations declined 29.7% to $54 million from $76.8 million. About half of the decline came from a $11.9 million reversal of accrued royalties in October. Excluding those accrued revenues, net revenue grew 14% to $65.8 million.
Pro-forma annual revenue (PFAR), which measures gross royalties received and excludes revenue accruals, grew 10.4% to $64.9 million.
Following shareholders’ vote against continuation at the annual general meeting on Oct. 26, Hipgnosis Songs Fund transformed its board of directors by naming Naylor to succeed Andrew Sutch as chairman and adding Francis Keeling, a former Universal Music Group executive, and Christopher Mills, CEO and investment manager at North Atlantic Smaller Companies Investment Trust, to replace Andrew Wilkinson and Paul Burger, both of whom left prior to the annual general meeting.
The new board undertook a strategic review and named Shot Tower Capital as lead advisor to conduct due diligence on the catalog. On Thursday, Naylor said he was pleased with the strategic review’s progress thus far. “This process will help the new Board bring forward proposals for delivering value to shareholders,” said Naylor.
But Naylor also described “ongoing failures in the financial reporting and control process” since he joined the board. “Whilst we consider substantial progress has been made in identifying and rectifying these issues,” Naylor added, “we have had to suspend the dividend for at least the remainder of the year in order to ensure compliance with our banking covenants.”
12/21/2023
The year saw both record revenues and widespread upheaval amid the rise of new technologies and existential questions about the future of the industry.
12/21/2023
A federal appeals court on Thursday ruled against Nirvana and revived a child pornography lawsuit filed by the man who appeared as a nude baby on the cover of the band’s 1991 album Nevermind.
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Spencer Elden, now in his 30s, claimed the photo – one of the most iconic album covers in rock history – violated federal child pornography laws by displaying a sexualized image of a minor. But a lower ruled last year that he had waited far too long to bring his lawsuit.
In a decision overturning that ruling, the U.S. Court of Appeals for the Ninth Circuit ruled that each new republication of the image – including a highly-publicized 30th anniversary re-release in 2021 – could constitute a new “injury” to Elden that would reset the statute of limitations.
“Victims of child pornography may suffer a new injury upon the republication of the pornographic material,” Judge Sandra Segal Ikuta wrote for a three-judge panel. “This conclusion is consistent with the Supreme Court’s view that every viewing of child pornography is a repetition of the victim’s abuse.”
The ruling does not mean that Elden has won the case. The lawsuit will now return to a lower court, where he must actually prove that the image meets the definition of child pornography – something Nirvana vigorously disputes and some legal experts doubt.
In a statement to Billboard, Nirvana’s attorney Bert Deixler called the ruling a “procedural setback” that did not affect their core arguments: “We will defend this meritless case with vigor and expect to prevail.”
An attorney for Elden did not immediately return a request for comment.
Originally released Sept. 24, 1991, Nevermind reached the top spot on the Billboard 200 in January 1992 and ultimately spent 554 weeks on the chart. The album has sold more than 30 million copies and is widely considered one of the most influential in the history of popular music.
The album’s cover — a nude infant swimming in a pool chasing after a dollar attached to a fishhook — was long interpreted as an edgy critique of greed and capitalism. But in his 2021 civil lawsuit, Elden claimed it was something else entirely: the kind of “lascivious” display of a minor’s genitals that’s prohibited under federal child pornography statutes.
“Spencer’s true identity and legal name are forever tied to the commercial sexual exploitation he experienced as a minor which has been distributed and sold worldwide from the time he was a baby to the present day,” he claimed at the time.
In addition to Nirvana’s corporate entity, the lawsuit also named Kurt Cobain’s estate, Universal Music Group, Dave Grohl and a number of other companies and individuals. The lawsuit was a civil action, and no allegations of criminal wrongdoing by anyone have been raised.
Nirvana sharply disputed that the image amounted to child pornography, but argued first that the case should be dismissed for a simpler reason: the statute of limitations. They cited the fact that Elden had seemingly endorsed his role in rock history on a number of occasions, including prior to the cutoff year for the 10-year statute of limitations.
“Long before 2011, as Elden has pled, Elden knew about the photograph, and knew that he (and not someone else) was the baby in the photograph,” the band claimed in its motion to dismiss the case. “He has been fully aware of the facts of both the supposed ‘violation’ and ‘injury’ for decades.”
In a ruling in September 2022, a federal judge agreed with Nirvana’s arguments. He ruled that the 10-year time limit began when a victim “reasonably discovers” either the crime or the injury caused by it – and that under either time limit, Elden had clearly filed his case too late.
But in Thursday’s decision, the Ninth Circuit said the time limits were more like those used in defamation cases and other “dignitary torts,” where a new repetition of the offending publication could give grounds to sue, despite the statute of limitations.
“The online dissemination of child pornography haunts victims long after their original images or videos are created,” the court wrote. “As the Supreme Court has explained, the victim’s knowledge of publication of the visual material increases the emotional and psychic harm suffered by the child.”
The court added later: “If a victim learns a defendant has distributed child pornography and does not sue, but then later learns the defendant has done so again many years later, the statute of limitations … does not prevent the plaintiff from bringing a claim based on that new injury.”
The French government’s decision to impose a new tax on music streaming platforms will be highly damaging for the country’s music industry and sets a “dangerous precedent” for other markets, warn streaming executives opposing the levy.
France’s National Assembly officially approved the tax charges on Tuesday (Dec. 19) as part of the country’s 2024 finance bill.
It specifies that streaming services such as Spotify, Deezer and Apple Music earning above 20 million euros ($22 million) in annual turnover will have to pay a new tax charge of 1.2% on all streaming revenue generated in France in addition to their existing tax duties. Social media platforms like Facebook and TikTok which license and feature music will also be subject to the tax charges.
The money will be used to help fund a national body to support the French music sector, The Centre National de la Musique (CNM), which was created in 2020 and is already partly financed by the live music industry.
The new levy comes into effect from Jan. 1, although music streaming services are still waiting for confirmation of when the first payment will be due to the French authorities.
‘A REAL BLOW’
Deezer CEO Jeronimo Folgueira says the tax on streaming platforms’ earnings will have “negative consequences for the entire music industry in France.”
“It is the worst possible outcome of all the different scenarios that we could have ended up with,” Folgueira tells Billboard. “Adding taxes is the worst way of trying to support the industry. It sets a very dangerous precedent for other markets.”
In a statement, a spokesperson for Spotify France called the tax “a real blow to innovation, and to the growth prospects of recorded music in France.”
The company said it is “assessing the implications of such a tax” and “strongly remain opposed to this unfair, unjust and disproportionate measure.”
On Wednesday (Dec. 20), Spotify France announced that it was pulling financial support for two local music festivals, the Francofolies de la Rochelle and the Printemps de Bourges, to help offset the extra tax burden.
Plans to tax music streaming platforms’ earnings in France have long been mooted by authorities and were first proposed in April by then-senator Julien Bargeton, who initially suggested a tax rate of 1.75% for services like Spotify, Deezer, Apple Music, Amazon Music and YouTube Music to support the French music industry.
In response, streaming executives and stakeholders from across the country’s music industry put forward a number of alternative funding solutions, including making a voluntary annual contribution of 14 million euros ($15 million) towards The Centre National de la Musique.
Executives closely involved in those talks tell Billboard that the voluntary contribution proposal — which involved the participation of collecting societies and music producers and was tiered depending on a company’s business and turnover — received “near unanimous” backing from across the sector, apart from Amazon, which refused to commit. (Amazon Music, Apple Music and YouTube Music all declined or didn’t respond to requests to comment when contacted by Billboard).
With the music industry unable to agree on an alternative offer, the French Senate voted in November to approve the new tax measures, which were formally ratified earlier this week.
TAX BURDEN
President Emmanuel Macron’s decision to tax music streaming companies to fund cultural programs follows the same principles the country already applies to the film industry. For many decades, the French government has imposed a tax levy on cinema ticket sales (currently amounting to 10.7% of the ticket price) to fund public body The French National Centre of Cinema (CNC).
Since 2010, publishers and distributors of television services, including streaming platforms like Netflix and ad-funded videos platforms such as YouTube, as well as DVD and Blu-Ray retailers, have paid a similar mandatory contribution set at 5.15% of turnover.
Like its cinema counterpart, funding for The Centre National de la Musique will come from across the French music industry, but executives at Spotify and Deezer believe it places an unfair burden on streaming companies who already pay out around 70% of their revenues to rights holders alongside their existing tax commitments in France. They include sales tax (VAT) at 20% and a 3% tax on digital services.
At present, the French live music industry pays a higher rate of tax contribution (3.5% on concert tickets) towards the CNM, but ticketing companies pay a lower rate of VAT sales tax (around 5%) compared to digital music platforms.
Physical music retailers, recording studios, radio services and labels are exempt from paying the new 1.2% levy.
“We’re not questioning the need to finance The Centre National de la Musique or be taxed. What we’re questioning is the decision to only target one distribution format – DSPs,” says one France-based music executive, speaking to Billboard anonymously.
Folgueira says the tax unfairly impacts on European streaming platforms like Deezer and Spotify, which have heavily invested in developing the local market, and disproportionately advantages American tech giants like Google, Apple and Amazon who have a smaller on-the-ground presence and “can easily absorb the costs.”
Paris-based Deezer is the market leading subscription streaming service in France and generates around 60% of its 451 million euros ($478 million) yearly revenue in the country. A tax rate of 1.2% on domestic turnover works out at around 3.2 million euros ($3.5 million), according to Billboard’s calculations.
CUTS COMING?
Folgueira says the new tax burden could possibly mean that Deezer is forced to pass on the extra costs “along the value chain,” which could include reviewing agreements with labels and rights holders.
The CEO says that it’s likely to mean Deezer cutting spend on domestic music projects and marketing, while price rises for subscribers is another possible outcome. “None of which is a good outcome for boosting the French market,” cautions Folgueira.
France is the world’s sixth largest recorded music market with €920 million in revenue in 2022, up 6.4% on the previous year, according to IFPI’s Global Music Report.
Folgueira’s concerns are shared by executives at Spotify. Speaking last week to local news network France Info, Antoine Monin, director general of Spotify France said that the company will reduce its investment in the market as a result of the taxes and said “France will no longer be a priority for Spotify.”
Billboard understands that Spotify France will be making further cost saving announcements in the coming weeks with subscription price rises among the options on the table.
Confirmation of a new tax charge for streaming companies in France comes at a pivotal time for Spotify, which posted an operating profit of 32 million euros ($35 million) in the third quarter of 2023 but has also undergone three rounds of job cuts this year.
Earlier this month, Spotify co-founder and chief executive Daniel Ek announced that the company was to close more than 1,500 posts internationally, representing around 17% of its global workforce.
“For many months now, we have been denouncing the risks underlying the creation of such a tax, particularly in terms of the loss of attractiveness for platform investments in France,” says Alexandre Lasch, managing director of French labels body SNEP. “It is precisely the artists produced in France who will be the victims.”
Despite streaming companies’ opposition to the levy, other sectors of France’s music business have welcomed the increased funding towards domestic culture.
Guilhem Cottet, managing director of the French association of independent music companies UPFI, says the establishment of a mandatory contribution to the CNM from streaming companies will help drive diversity and innovation in the sector.
“The current remuneration model is unjust towards a lot of musical genres which are not heavily listened to by young people — mostly rap and electronica — in France. And if there’s no decent remuneration, labels will cease producing these genres,” says Cottet.
“The tax is a regulation tool to ensure the CNM is able to finance them and make sure diversity prevails.”
Vinyl Group announced on Thursday a binding agreement to acquire The Brag Media, publisher of Australian and New Zealand editions of Rolling Stone and Variety, as well as publisher of its own tiles including TheBrag. com, Tone Deaf and industry news outlet The Music Network.
The proposed takeover of Brag Media, pending certain conditions and expected to close by Jan. 31, is being funded by an $11 million AUD ($7.5 million USD) round of investment in Vinyl Group by billionaire Wisetech Global chief executive Richard White, who when completed will own more than a third of the ASX-listed business. With funding in place, Vinyl Group’s purchase of 100% of Brag Media will break down as $8 million in cash and a further $2 million in deferred compensation through cash or stock.
Brag Media originated as Seventh Street Media in 2017, launching local trade outlet The Industry Observer and youth-focused title Don’t Bore Us, before rebranding as The Brag Media in 2019 — the same year it partnered with Billboard parent Penske Media to launch Rolling Stone Australia. Brag also represents the digital audiences in the market for Billboard and The Hollywood Reporter, as well as Rotten Tomatoes, Hypebeast and others. In 2022, Brag bought The Music Network and shuttered Industry Observer. Based on unaudited figures disclosed in the announcement, The Brag Media generated $8.39 million in revenue in its current fiscal year, generating a net profit of $334,824.
Once the acquisition is complete, Brag Media’s portfolio will join a Vinyl Group that also includes music credits specialist Jaxsta, social networking platform Vampr and online record store Vinyl.com. As part of the deal, Brag Media’s co-founder and CEO Luke Girgis is set to remain as publisher and managing director of the company’s publishing business.
“Vinyl Group’s suite of products work together to empower participants of the music ecosystem and reach all corners of the creator economy, and we can’t wait to start working with the iconic mastheads that Luke and The Brag Media have successfully developed in Australia,” said Vinyl Group CEO Josh Simons, who took over the top job in late June following the departure of Beth Appleton. “We’ve identified several impactful synergies between the two businesses that will deliver immediate cost efficiencies and revenue, including streamlining Vampr’s in-app ads business and leveraging The Brag Media’s impressive audience reach to bolster Jaxsta, Vinyl.com and Vampr in the market.”
Girgis added that he “couldn’t be happier about” the consolidation. “Right from the earliest discussions we had, it was clear that the Board, Josh and the team shared our vision for the future of the business, and I’m thrilled that they’ve made this commitment with us.”
White said there is “no doubt that iconic brands like Rolling Stone and Variety make sense and add value to VNL. Combined under the leadership of Josh and Vinyl Group, the consolidated business and team will have a lot more growth levers and options.”
Vinyl Group is Australia’s only ASX-listed music business and trades under the ticker code VNL (it was JXT before a recent parent company name change). Its share price jumped 22% to .055 following the acquisition announcement.
Medallion, a direct-to-consumer platform that helps artists build relationships with their fans, has raised $13.7 million in Series A funding, the company announced Thursday (Dec. 21). The funding will help Medallion, which is led by former Songkick CEO Matt Jones, “to accelerate an ambitious technical roadmap,” the company said in a statement.
The round was co-led by Dragonfly and Lightspeed Faction and included Coinbase Ventures, Infinite Capital, J17, Third Prime, Zeal Capital and previous investor The Chernin Group. Also taking part in the round were music industry investors including Metallica’s Black Squirrel Partners; Bill Silva Entertainment; Guy Lawrence of electronic duo Disclosure; Foundations Artist Management; producer duo Jungle; the band Mt. Joy; management company Method; DJ and producer Tiga; and TAG Music, a joint venture between Gabe Saporta and Atlantic Records.
This marks Metallica’s third notable investment in 2023 via Black Squirrel. In March, the band purchased Furnace Record Pressing, a vinyl manufacturer in Alexandria, Va. Then in August, Black Squirrel was the lead investor in a $5 million funding round for Word Collections, a publishing administration firm launched by TuneCore founder Jeff Price.
Launched in 2022, Medallion provides a white-label platform for artists to create online communities that deliver experiences and products to their fans. Its client roster includes such artists as My Morning Jacket, Sigur Ros, Santigold, Tycho, Greta Van Fleet and two of its investors, Mt. Joy and Jungle.
For Rob Hadick, general partner at Dragonfly, Medallion represents a shift in thinking about providing fans with more than music and content. “Medallion is building the infrastructure to enable artists to directly interact with their highest intent customers through new and exclusive products and experiences, while simultaneously owning the customer relationship themselves and driving net new revenue opportunities around their IP,” Hadick said in a statement. “We believe this paradigm shift will permeate across the entirety of the creator economy.”
“Artists only have direct relationships with a fraction of their fanbase. Medallion solves this problem by unlocking direct artist-to-fan connection,” said Will Leas at Lightspeed Faction in a statement. “The team has a history of building pioneering technology for the world’s biggest artists, and we are thrilled to back them on this journey.”
Medallion previously raised $9 million in seed funding from Betaworks, POAP Ventures, Polygon Ventures, The Chernin Group, Red Light Ventures, Linkin Park’s Mike Shinoda and Tycho.
SiriusXM is facing a lawsuit from New York’s attorney general over allegations that the satellite radio and streaming service has made it “extremely difficult” for listeners to cancel their subscriptions.
In a complaint filed Wednesday (Dec. 20) in Manhattan court, Attorney General Letitia James’ office accused SiriusXM of subjecting canceling customers to “a lengthy and burdensome endurance contest,” which allegedly requires phone conversations with a live agent and extended time spent on hold.
“Sirius deliberately wastes its subscribers’ time even though it has the ability to process cancellations with the click of a button,” attorneys from James’ office wrote in the lawsuit. “The only reason Sirius requires cancelling subscribers to interact with a live agent at all is to maximize its opportunity to retain them as subscribers.”
In a statement announcing the lawsuit, James said it followed an investigation that showed SiriusXM was “trapping consumers” with its cancellation process, including by training its employees “not take ‘no’ for an answer.”
“Having to endure a lengthy and frustrating process to cancel a subscription is a stressful burden no one looks forward to, and when companies make it hard to cancel subscriptions, it’s illegal,” James said. “Consumers should be able to cancel a subscription they no longer use or need without any issues, and companies have a legal duty to make their cancellation process easy.”
Following the filing of the lawsuit, a spokeswoman for SiriusXM said the company would “vigorously defend against these baseless allegations,” saying that they “grossly mischaracterize” its practices.
“It’s telling that the New York Attorney General issued a press release before providing SiriusXM with a copy of the complaint,” the company statement said. “Like a number of consumer businesses, we offer a variety of options for customers to sign up for or cancel their SiriusXM subscription.”
According to the new lawsuit, SiriusXM automatically renews subscriptions at the end of a term unless a user calls on the phone to cancel. The lawsuit claims that users are sometimes forced to wait as long as 25 minutes just to connect with an agent, who then subject them to a “six-part script” in which they are trained to repeatedly refuse to actually terminate the subscription.
“Sirius requires its live agents to present a series of renewal offers to retain the consumer as a subscriber,” the AG’s office wrote in the lawsuit. “But when a consumer declines an offer, or refuses to hear further offers, Sirius instructs its agents not to take ‘no’ for an answer.”
By doing so, SiriusSM forces subscribers to “devote inordinate amounts of time, patience, and stamina trying to cancel a subscription they no longer wish to pay for,” the lawsuit says, even though they have a “legal and contractual right to cancel anytime using a process that is simple and efficient.”
Just one day after announcing a delay in publishing interim financial results for the six months ended Sept. 30, Hipgnosis Songs Fund has announced the appointment of a new auditor.
In a press release on Wednesday (Dec. 20), the Merck Mercuriadis-led company said it had appointed KPMG Channel Islands Limited as its new auditor, “with immediate effect for the financial year ended” Mar. 31, 2024. KPMG succeeds PricewaterhouseCoopers (PwC) in the role.
The release notes that the appointment of KPMG will be subject to approval by the company’s shareholders at a general meeting “to be convened in due course.”
“The previous auditor, PwC CI, has deposited with the Company a statement confirming that there are no matters to be brought to the attention of the Company’s members or creditors,” the release adds.
On Tuesday, Hipgnosis Songs Fund said it would delay publishing its financial results over concerns about its valuation, explaining that the valuation it received from an independent firm was “materially higher than the valuation implied by proposed and recent transactions in the sector.” These transactions include the proposed $417.5 million sale of 29 catalogs to Blackstone-backed Hipgnosis Songs Capital — a price reflecting a 24.3% discount from a valuation dated March 31 — and last week’s sale of 20,000 “non-core songs” to an undisclosed buyer for $23.1 million, which the company said reflects a 14.2% discount on the songs’ valuation as of early fall.
Hipgnosis Songs Fund now expects to announce its financial results on New Year’s Eve, according to the regulatory filing.
Hipgnosis is composed of three companies: Hipgnosis Song Management, Hipgnosis Songs Capital and Hipgnosis Songs Fund, the latter of which has been the subject of controversy for months. On Oct. 16, the London-listed trust revealed that it would not pay its investors a dividend due to new, lower revenue projections. On Oct. 26, more than 80% of the fund’s investors demanded structural changes to the music rights company, voting in favor of the board drawing up “proposals for the reconstruction, reorganization or winding-up of the company to shareholders for their approval within six months.”
Last month, it was also announced that the fund will not declare dividends before the fiscal year, which begins in April, to ensure it has enough on its ledger to pay contractually mandated catalog bonuses.
Hipgnosis Songs Fund owns full or partial rights to the song catalogs of artists including Justin Bieber, Neil Young, Bruno Mars, Jimmy Iovine, 50 Cent, Shakira, Blondie, Justin Timberlake and Lindsey Buckingham.
Hipgnosis Songs Fund ended the day up 1.43% on the London Stock Exchange following the announcement of the new auditor.
After a probation-reform bill became Pennsylvania law last Friday, chart-topping rapper Meek Mill teared up and a key music-business advocacy group echoed his support.
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“We are definitely happy about these results,” says Prophet, co-founder, president and CEO of the Black Music Action Coalition, a group of attorneys, artists, label executives and managers formed in 2020 to address racism in the industry. “No laws have completely given us what we need, but these are huge steps. If I were a governor in any state, I’d be looking at what Pennsylvania did and following suit — especially in an election cycle.”
In 2008, just as his music career was taking off, 18-year-old Mill was sentenced to prison for a drug and firearm conviction. A court overturned the ruling 11 years later, and earlier this year, Pennsylvania’s then-governor, Tom Wolf, pardoned him for the original charges. Mill, who lives in Philadelphia, has been on probation for much of his life, and has advocated for criminal-justice reform for years. After Gov. Josh Shapiro signed the legislation Friday, the rapper spoke of not being able to pick up his son from school in New Jersey due to parole regulations. “They labeled us felons,” he said at Friday’s ceremonial bill-signing. “I had to fight against that the whole time to gain my respect and be who I am today.”
The new Pennsylvania law passed a bipartisan state senate vote last Thursday, despite opposition from the ACLU, which said it will “risk making probation worse.” The law, known as Comprehensive Probation Reform, requires probation reviews after either two years or half of a misdemeanor sentence, or four years or half of a felony sentence. It also urges judges not to send people back to jail for minor technical parole violations.
“We all learned from Meek’s case because it shined a light on the injustices in our probation system,” Shapiro told reporters after signing the law.
In addition to praising the new Pennsylvania law, the BMAC’s Prophet predicted the result will inspire artists, people of color and young people to be more politically active. “What that does is trigger the alarm to many young people, a base that for the most part is either uninspired or not engaged, to see that they actually have political power,” he says. “The Black vote saved the 2020 election. We haven’t gotten a lot in return. Now the Democrats and the Republicans are going to be held to a level of accountability that hasn’t been seen before.”
“People are inspired. People are saying, ‘Look, Meek just changed the law,’” Prophet adds. “It’s that sort of simplicity of the process that inspires people.”