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For the second straight year, and third in the last four, the top honors in the Big Four Grammy categories were all split among different record labels, as Republic Records (Taylor Swift, album of the year for Midnights), Columbia Records (Miley Cyrus, record of the year for “Flowers”), Interscope Geffen A&M/Atlantic Records (Billie Eilish, song of the year for “What Was I Made For?”) and RCA Records (Victoria Monét, best new artist) all divvied up the major prizes.
This year, that breaks down into a split among the three major label groups, as both Universal Music Group (UMG) and Sony Music Entertainment (SME) accounted for two each, while Warner Music Group (WMG) earned one. (The discrepancy between the four categories and five label wins is because Eilish’s win for song of the year is technically split; she is a Darkroom/Interscope recording artist for UMG, but the song appeared on the Barbie soundtrack, which was released by WMG’s Atlantic Records.) In 2023, the top four was split evenly across the three majors and an independent, with Columbia (Harry Styles, album of the year for Harry’s House), Atlantic (Lizzo, record of the year for “About Damn Time”), Verve (Samara Joy, best new artist) and indie label Redwing (Bonnie Raitt, song of the year for “Just Like That”) scoring wins.
Among the Big Four and the top seven genres by U.S. market share — pop, rock, R&B, hip-hop, Latin, country and dance — RCA and Atlantic picked up the most wins, tying for five apiece, as Monét (best new artist, best R&B album) and SZA (best pop duo/group performance, best R&B song, best progressive R&B album) led the way for RCA while Eilish (song of the year for her track on the Barbie album), Fred Again… (best dance/electronic recording with Skrillex and Flowdan, best dance/electronic music album) and Paramore (best rock album, best alternative music performance) paced Atlantic. Interscope, through Eilish and a trio of awards for acclaimed group boygenius (best rock song, best rock performance and best alternative music album) landed four, while Loma Vista/Concord, off a big night for Killer Mike (best rap album, best rap song, best rap performance), racked up three.
Aside from that, honors were largely evenly divided, with no other label picking up more than two awards. Swift led Republic’s pair of wins (she also won best pop vocal album), while Cyrus led Columbia’s two (she also earned best pop solo performance); a pair of victories for Chris Stapleton (best country song and best country solo performance) landed two wins for UMG Nashville; BMG got two for best pop dance recording for Kylie Minogue’s “Padam Padam” and best country album for Lainey Wilson’s Bell Bottom Country; and UMG Latin earned best musica urbano album for Karol G’s Mañana Será Bonita and Juanes’ Vida Cotidiana, which came in a tie with Natalia Lafourcade’s De Todas Las Flores (Sony Latin) for best Latin rock or alternative album.
The rest were spread across a number of labels, including Def Jam (Coco Jones, best R&B performance), Warner Records (Zach Bryan, best country duo/group performance with Kacey Musgraves), Alamo (Lil Durk, best melodic rap performance with J. Cole), EMPIRE (PJ Morton, best traditional R&B performance with Susan Carol), Blackened (Metallica, best metal performance) Prajin/The Orchard (Peso Pluma, best Música Mexicana album), Cosmica (Gaby Moreno, best Latin pop album) and Ruben Blades Music (Ruben Blades, best tropical Latin album).
Overall, that gave Universal Music Group 11 of those victories, with indies racking up 10, Sony nine and Warner Music Group six.
The music industry’s Cold War with TikTok just turned very hot — and extremely complicated. By the end of the month, Universal Music Group (UMG) will require the platform to take down music it controls even a small part of, by using what some music executives call “the nuclear option.” This will prevent some other rights holders from making money on TikTok — but at least some of them are cheering it on.
On Jan. 30, the day before UMG’s latest deal with TikTok lapsed, the company announced in an open letter that “we must call time out on TikTok” and began removing its recorded music from the platform. After a 30-day grace period, UMG says it will also require TikTok to take down any song in which Universal Music Publishing Group (UMPG) controls any rights. That means songs by Harry Styles, SZA and Bad Bunny; those with writing credit from creators like Metro Boomin and Jack Antonoff; and even those that sample compositions by UMPG songwriters. In some markets, that might account for more than half of the music used on the platform.
The question is what this means for the rest of the business. Styles, SZA and Bad Bunny are three of the biggest acts signed to or distributed by Sony Music Entertainment, so this would affect that label, as well as Warner Music Group, BMG and scores of independents. From the end of February until UMG and TikTok reach a new licensing deal, they will not earn any money on music to which UMG has any rights — a relatively minor income stream at this point — while losing out on an important source of promotion. In the long term, of course, a win for UMG that pushes TikTok to pay more for the rights to music could also help the entire industry.
This Cold War turned hot pretty suddenly. For years, rights holders have embraced TikTok as a promotional vehicle while griping about the short-form video platform’s low payouts in what seemed like a repeat of the music industry’s contentious relationship with YouTube. Both can pay less than other platforms because in many cases they can essentially operate under the Digital Millennium Copyright Act, which allows them to make available content uploaded by users until rights holders ask for a takedown. In language that sounds like it could have come from YouTube a decade ago — or from a file-sharing service a decade before that, for that matter — in a statement released on social media, TikTok said that UMG had abandoned a popular platform “that serves as a free promotional and discovery vehicle for their talent.” Basically, they offer exposure. But as creators and rights holders might say — and here you have to imagine a Borscht Belt delivery — you could DIE of exposure!
UMG’s move came at the worst possible time for TikTok: the day before a Senate committee hearing on child safety and social media, during an escalating Middle East conflict that has focused negative attention on TikTok’s Chinese ownership, and during a week when much of the music business was in Los Angeles for the Grammys. This isn’t entirely a coincidence: UMG’s long-term deal actually expired at the end of 2023, and Jan. 31 was just the end of a one-month extension. (A source close to TikTok said that the two sides were close to a deal at the end of December, while a source close to UMG said that was not the case.) Fair or not, the pressure in Washington could be substantial. (I have serious concerns about a Chinese-owned app becoming an important source of news on Taiwan, but I’m not sure that has much to do with music licensing.)
So far, there has been some support for UMG from other companies in the music business. Neither of the other two major labels would comment — Sony declined and a spokesperson for Warner did not return messages — and it’s unlikely that they will, for antitrust reasons. Primary Wave, Downtown and Hipgnosis have expressed support for Universal, though. And at a Grammy Week music publishers event, National Music Publishers’ Association (NMPA) president/CEO David Israelite pointed out that the model contract with TikTok that’s used by many NMPA members expires in April.
Tik-tok, indeed.
The dynamic here is complicated but potentially revolutionary. For the last two decades, most of the negotiations between media and technology companies have involved a few rights holders that each control significant amounts of content and a platform that has a larger share in its market than they do — think labels and streaming services or book publishers and Amazon. Since antitrust law almost always prevents big companies from negotiating together — a lesson Apple and some book publishers learned the hard way — the platforms have an advantage. In this case, UMG managed to get more leverage by using publishing rights that by their nature will affect impact a lot of compositions, creating a situation where some small companies can cheer it on.
The question is what happens after February. Rights holders can live without the money they make on TikTok, but what about the platform’s promotional value for breaking artists? For now, presumably, artists on other labels who don’t work with UMPG songwriters will gain an advantage. If this dispute lasts a few months, that might give smaller labels enough of an advantage to matter. If it lasts longer than that, though, TikTok could face more competition, too. The company has suggested that music accounts for a modest amount of the platform’s value, but that would be tested if TikTok has to compete against other short-form video platforms that have rights to use music that it doesn’t.
The more likely scenario is that UMGand TikTok will reach an agreement — perhaps one that both will grumble about but accept — and then over time find ways to work together that benefit both sides, plus creators of all kinds. Short-form video could eventually grow into a truly important revenue stream. By that time, of course, a new platform will probably come along to challenge that, too.
A year into SoundCloud’s fan-powered royalties, a departure from the traditional “pro rata” method of calculating streaming royalties, artists have a better understanding of their fan bases and a better chance to monetize their listeners, according to a new report by author, podcaster and economics professor Will Page.
Fan-powered royalties — known more broadly as user-centric royalties — is a method for calculating streaming payouts to independent artists based on individual fans’ listening on SoundCloud. The traditional, pro-rata model divvies up a large revenue pool based on a track’s total number of plays. In that scenario, an up-and-coming artist shares the same royalty pool as the biggest superstar.
User-centric royalties turn a big pool into smaller silos by splitting a listener’s subscription or advertising revenue based on only the tracks they streamed. If a listener streams only independent artists, most or all of the user’s subscription or advertising revenue will go to those artists. Since SoundCloud first announced fan-powered royalties in 2021, Warner Music Group and Merlin have agreed to use the calculation approach for their artists.
SoundCloud singles out an artist’s biggest fans and gives artists the tools to engage with those supporters through person-to-person messaging. With the help of tools that help artists engage directly with their fans on the SoundCloud platform, a small number of what SoundCloud calls “true fans” will provide an “outsize” share of an artist’s royalties. (Page did not define “true fan” or explain the threshold that separates them from less passionate ones.) The combination of the engagement tools and the fan-powered royalties “make this true fan game the most desirable to play,” wrote Page.
The promise of fan-powered royalties is a more sustainable business model for up-and-coming and working-class musicians. For SoundCloud, a well-known springboard for young musicians’ entry into the big leagues, a model that benefits independent artists over major-label superstars would help cement that platform’s credentials in the creator community.
So, Page offered three case studies that examined artists in different stages of their careers. In 2022, Rapper Lil Uzi Vert opted into fan-powered royalties and gave SoundCloud an exclusive on the track “Space Cadet” from his Red & White EP. As a result, according to Page, “more of Uzi’s listeners became true fans, and those true fans made up an even greater proportion of the overall revenue.” With fan-powered royalties and insights from the platform, true fans accounted for 6.5% of the rapper’s audience in July 2022, up from 5.2% in the previous month, as well as 71.8% of his revenue, up from 54.6%. The audience he gained was engaged: 6% of them were true fans, 69% were classified as engaged and only 9% were passive listeners.
To show that fan-powered royalties can help a mid-tier, independent artist, Page offers the example of Kelow LaTesha, a rapper with about 14,000 SoundCloud followers. LaTesha used fan-powered royalties to reach more listeners. True fans’ share of her revenue jumped to 45.7% in July 2022 from 32.2% in June 2022. The number of true fans increased, but because she gained a greater share of passive listeners, LaTesha’s true fans accounted for 1.4% of her listeners, down from 1.7%.
The do-it-yourself case study, focusing on EDM producer/DJ ShortRound, improved both his true fans and his revenue from those fans. From June to July 2022, true fans’ share of DJ ShortRound’s SoundCloud audience climbed from 3% to 4.4% and their share of his revenue jumped from 77.7% to 82%.
SoundCloud’s adoption of fan-powered royalties pre-dated a larger effort to make streaming more financially viable for labels and artists. Universal Music Group partnered with streaming service Deezer in 2023 to improve payouts to professional musicians while reducing payouts to background noise and other types of audio content that arguably provide less value to listeners. In Europe, politicians are calling for “fairer models of streaming revenue allocation” for artists.
SoundCloud’s approach might not be the best approach for all streaming platforms, but the handful of case studies is evidence that the approach works for SoundCloud. The combination of fan-powered royalties and creator tools “opens a new path to prosperity that the entire music industry should understand,” wrote Page.
K-pop is having amazing charts and sales success and selling out large venues around the world, but the South Korean companies behind those artists are off to a terrible start in 2024.
Through Friday (Feb. 2), four K-pop stocks — HYBE, SM Entertainment, JYP Entertainment and YG Entertainment — have fallen an average of 17% year to date. HYBE, home to BTS and its members’ various solo projects, has had the best performance with a 12% decline, while JYP Entertainment is the worst of the group with a 24.1% loss. Elsewhere, YG Entertainment has lost 14.7% and SM Entertainment is down 17.4%. Korean stocks in general have gotten off to a much better start: Through Feb. 2, the KOSPI composite index of Korean companies increased 5.5%.
Investors may feel K-pop’s finances are less than reliable after news broke this week that Kakao Corp. is auditing SM Entertainment’s financial practices following its acquisition of a 40% equity stake in 2023, according to reports out of South Korea. Kakao’s audio committee is investigating “the appropriateness of investment decisions made by SM management without holding prior consultations with Kakao,” a Kakao official told The Korea Times. For the time being, Kakao is only auditing SM Entertainment’s books, not overhauling its management or considering selling its shares. Amidst heavy media coverage in Korea, Kakao went as far as to issue a statement on Monday (Jan. 29) to dispel rumors it will sell its stake in SM.
Spotify, on the other hand, is soaring ahead of its fourth-quarter earnings report on Tuesday (Feb. 6). The music streaming giant gained 3.8% to $222.31 this week, bringing its year-to-date gain to 18.4%. Spotify shares rose 1.6% on Friday after news broke the company had signed a new distribution deal with popular podcaster Joe Rogan. Spotify will sell ads for and distribute The Joe Rogan Experience on several multiple podcast platforms, according to the Wall Street Journal. So, unlike the previous deal, Rogan’s show will not be exclusive to Spotify and will be available on YouTube and elsewhere.
Although Rogan is no longer exclusive to Spotify, the deal could be extremely lucrative. An upfront minimum guarantee and ad revenue share could be worth up to $250 million, according to the report. While Rogan has proved to be enduringly popular, Spotify kept its relationship with the comedian while maintaining distance from its previous strategy of high-priced, exclusive content deals. Call Her Daddy is no longer exclusive to Spotify, Barack and Michelle Obama departed for Amazon’s Audible, and the former royals, Prince Harry and Meghan Markle, were not renewed.
Investors’ enthusiasm for Spotify hasn’t spilled over to other music streaming companies, however. Abu Dhabi-based music streamer Anghami fell 10.1% to $0.98 this week, bringing its year-to-date decline to 5.8%. Three other music streaming companies also posted losses: France’s Deezer fell 2.3%, U.S.-based LiveOne sank 5.3% and China’s Cloud Music dropped 6.2%. Tencent Music Entertainment, China’s largest music streaming company, rose 0.4%.
The Billboard Global Music Index fell 0.4% to 1,588.68 this week as 13 of the 20 stocks posted losses and only seven stocks finished the week in positive territory. Stocks were broadly up in the United States: the Nasdaq composite gained 1.1% to 15,628.95 and the S&P 500 improved 1.4% to 4,958.61. In the United Kingdom, the FTSE 100 dropped 0.3%. South Korea’s KOSPI composite index gained 5.5%. China’s Shanghai Composite Index sank 6.1% to 2,730.15.
German concert promoter CTS Eventim was the greatest gainer this week with a 4.1% gain. Two other live entertainment companies, Sphere Entertainment Co. and MSG Entertainment, ended the week up 2.8% and 0.7%, respectively.
Among the week’s biggest losers was Hipgnosis Songs Fund, which fell 7.5% to 0.653 pounds per share. Hipgnosis fell 2.5% on Friday after news broke that Merck Mercuriadis is stepping down as CEO of the fund’s investment advisor, Hipgnosis Song Management, and will become chairman. President/COO Ben Katovsky will take over the CEO role.
What a difference a year makes. Last year’s Entertainment Law Initiative (ELI) Grammy Week Event was held during a recording business boom when AI was still an issue on the horizon and TikTok seemed like a surefire way to break new artists. This year’s event, held Friday (Feb. 2), took place amid a boom shadowed by clouds of uncertainty, including a difficult environment for new artists, a restructuring of Universal Music Group’s labels and what looks like the start of a battle with TikTok.
The winner of this year’s ELI writing contest, law school student Olivia Fortunato, wrote about the idea of a federal post-mortem right of publicity — a subject that was barely on the radar of most lawyers a year ago. The keynote speaker, Capitol Music Group chair/CEO Michelle Jubelirer, seemed to hint that her time running the label might be nearing an end. And the Entertainment Law Initiative Service Award Honoree, Atlantic executive vp of business & legal affairs/general counsel Michael Kushner, mentioned how much the industry has changed since the CD era in a way that could be taken as a sign of more changes to come.
Jubelirer’s speech got a good deal of attention, coming as it did a day after Universal Music Group (UMG) announced a restructuring of its labels that would put Republic chairman/CEO Monte Lipman in charge of the company’s East Coast labels and Interscope chairman/CEO John Janick in charge of its West Coast ones. That raises some questions about the future of Capitol Music Group that Jubelirer’s speech didn’t answer, but she dropped a hint. (A PR representative for Capitol declined to comment.)
Jubelirer said that her mantra was a question: “Am I changing the record company more than it’s changing me?” Standing at the event, “I am engaged in that very evaluation,” she said. “Asking myself that very question. And, for the first time in a very long time, I’m not so sure of the answer.”
Most of her speech was more upbeat: She spoke of growing up in Altoona, Penn., as a fan of Guns N ‘ Roses; how she went from a job in mergers and acquisitions law to Sony to the music law firm now known as King, Holmes, Paterno & Soriano; and her time at Capitol Music Group, where she worked with Katy Perry, Paul McCartney and, most recently, Ice Spice. She also praised several mentors and friends, including Universal Music Publishing Group CEO Jody Gerson, and took a moment to point out her mom, “the silver vixen over there.”
Atlantic Music Group chairperson/CEO Julie Greenwald presented the ELI Service Award to Kushner, who has worked closely with her and Atlantic chairman/CEO Craig Kallman. Kushner came to Atlantic after stints at Universal, Sony and PolyGram, where he started around the same time as Sony Music Entertainment executive vp of business affairs/general counsel Julie Swidler. After Greenwald spoke, Kushner received the customary video tribute, filled with praise both serious and silly.
Kushner then spoke about the importance of mentorship and the changes he has seen in the music business, where the only constant seems to be change itself.
Universal Music Group (UMG), the world’s largest music company, released an open letter to its artists and songwriters on Tuesday (Jan. 30) stating that the company’s music would soon leave TikTok due to disagreements over compensation, artificial intelligence, infringing works and harassment. TikTok replied a few hours later, calling UMG’s letter a “false narrative” and […]
Megan Thee Stallion has found a new home as she’s entered an “innovative agreement” with Warner Music Group while maintaining her independence.
Billboard reported in December that Megan would be working with WMG and utilizing the company “for distribution and services.” The distribution deal has since been signed and was announced officially on Friday afternoon (Feb. 2).
Within the structure of the unique partnership, the Houston Hottie will have access to WMG’s global services ranging from music promotion to distribution and worldwide marketing.
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On the music side, Megan will keep releasing tunes independently through her Hot Girl Productions label and work collaboratively with Warner Music Group. The deal allows Thee Stallion to keep ownership and control of her masters as well as her publishing.
“This is the beginning of an exciting new chapter of my life and career,” Megan said in a statement. “I’m really focused on building an empire and growing as an entrepreneur, so I’m proud to take this next step in my journey and work with Max Lousada and the entire Warner Music Group team in this new capacity. I know we’re going to create history together.”
Roc Nation will still be involved in managing the Grammy-winning rapper separate from the new Warner agreement.
Warner’s 300 Ent. previously distributed Megan’s music from 2018 through last November while the rapper was entrenched in a dispute with former label 1501 Certified Entertainment.
The tumultuous relationship was muddied with claims of 1501 keeping royalties from Megan and not allowing her to release music as she pleased.
The turbulent agreement between Meg and the Carl Crawford-led 1501 finally came to an end in October following a yearslong battle in court.
“Meg is not just a superstar,” WMG Recorded Music CEO Max Lousada added. “She’s an artistic force and a mogul in the making — authentic and unapologetic in defining her own unique place in the cultural landscape. So many relate to her remarkable story and have witnessed her come into her power on her own terms.
“At Warner, we’re creating an environment where original talents can explore both their creativity and entrepreneurialism, while building long-term careers. Following on her success with 300, we’re excited to continue our journey with Meg through this dynamic new partnership, with our global teams, infrastructure, and expertise supporting her every step of the way.”
Megan Thee Stallion has released a pair of singles independently, the second of which arrived last week with “HISS.” The fiery track saw her send indirect shots at Drake, Nicki Minaj, and more while blasting to top the U.S. Spotify and Apple Music Global charts.
The 28-year-old is on pace to earn her 32nd Billboard Hot 100 entry and a lofty debut on the elusive charts. Megan has two No. 1 hits on the Hot 100 and six Billboard 200 placements to her name. Her song catalog has earned 10.3 billion on-demand streams (including user-generated content, or UGC, which does not count toward Billboard’s charts), according to Luminate.
Find Megan’s post to Instagram celebrating the deal with WMG below.
Each year during Grammy week, members of the Association of Independent Music Publishers‘ (AIMP) gather at Lawry’s steakhouse in Beverly Hills to hear a speech from David Israelite, president and CEO of the National Music Publishers’ Association (NMPA). In it, Israelite discussed the successes of the Music Modernization Act, the new UMG TikTok licensing feud, the viability of artificial intelligence regulation, and the more.
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He started the presentation with slides showcasing the publishing revenue for 2022, divided by categories: performance (48.29% or $2.7 billion), mechanical (20.27% or $1.1 billion), synch (26.07% or $1.4 billion), and other (5.37% or $300 million). Synch, he says, is the fastest growing source of revenue.
Israelite focused much of his time on addressing the Music Modernization Act, which was passed about five years ago. “I don’t want you to forget is just how amazing the Music Modernization Act was and is for this industry,” he said. “I believe that it is the most important legislation in the history of the music business… You’re going to start to take for granted some of the things… but we had to fight and win to get this done.” He pointed to successes of the landmark law like the change in the rate standard to a willing seller, willing buyer model and its creation of the Mechanical Licensing Collective (The MLC).
Earlier this week, the MLC (and the digital licensee coordinator, DLC) began the process of its first-ever re-designation. This is a routine five-year reassessment of the organization and how well it is doing its job of administering the blanket mechanical license created by the MMA. As part of the re-designation process, songwriters, publishers and digital services are allowed to submit comments to the Copyright Office about the MLC’s performance. “Many of you will have a role in offering your opinions to the copyright office about that,” says Israelite. “The process needs to be respected and played out, but [The MLC] will be re-designated, and it is an absolute no brainer decision. There’s a lot about the MLC that I want to remind you about.”
Israelite then highlighted the organization’s “transparency,” the lack of administration fees for publishers and that the projection of 2023 revenue from streaming for recorded music ($6.3 billion) and publishing ($1.7 billion) “the split is the closest it has ever been,” attributing this, in part, to the MLC’s work.
He also addressed Grammy week’s biggest story: the UMG TikTok licensing standoff. “I’m only going to say two things about TikTok: the first is I think music is tremendously important to the business model of TikTok, and, secondly, I am just stating the fact that the NMPA model license, which many of you are using, with TikTok expires in April.” At that time, the NMPA can either re-up its model license with TikTok or walk away. If it were to pull a similar punch to what UMG has done, indie publishers could either negotiate with TikTok directly for their own license, or they could also walk away from the platform.
Later, in addressing artificial intelligence concerns, he pledged his support for the creation of a federal right of publicity, but he admitted “I want to be honest with you, it does not have a good chance.” Even though the music business is vying for its adoption, Israelite says that film and TV industry does not want it. “Within the copyright community we don’t agree… and guess who is bigger than music? Film and TV.”
Still, he believes there is merit in fighting for the proposed bill. “It might help with state legislative efforts and it raises the profile,” he said, but Israelite stated that his priority for AI regulation is to require transparency from AI companies and to keep records of how AI models are trained.
The greatest impact of Universal Music Group and TikTok’s licensing stalemate will likely not come from UMG’s superstar artists leaving the platform, it will come from the loss of its songwriters.
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Losing music from record label signees like Taylor Swift, Drake, Morgan Wallen, BTS, Olivia Rodrigo and more on TikTok is seismic on its own, but media coverage of the now-expired license that lapsed on Jan. 31 has largely ignored that the world’s largest music company’s songwriters are leaving, too. That means that any record that was touched by a Universal Music Publishing Group (UMPG) songwriter will also be subject to removal from the platform — even if it was released on a non-UMG label. Artist-songwriters like Harry Styles, Bad Bunny and SZA are three of many notable examples of UMPG writers that release music under non-UMG labels that will be affected. Artists who work with UMPG hitmakers like Metro Boomin, Jack Antonoff or Fred again.. could also face this.
In today’s pop and rap markets, writing rooms are considered to be bigger than ever, crediting anywhere from one to 30 contributors in extreme cases like cases like Travis Scott’s “Sicko Mode.” A typical pop song on the radio likely has at least three or four people receiving publishing. This, mixed with the fact that UMPG is one of the largest music publishers in the world with 4 million copyrights to its name, means that removing all songs with UMPG interests will impact just about every other record label and music publisher in some way.
In the third quarter of 2023, it was calculated that UMPG held a fifth of the market share on the Billboard’s Pop Airplay and Hot 100 charts. For Country Airplay, UMPG represented a tenth of the chart.
There’s also a chance of this standoff spreading to other publishers this spring. On Thursday (Feb. 1), at the Association of Independent Music Publishers event in Beverly Hills, National Music Publishers Association president and CEO David Israelite revealed during a speech that his organization’s TikTok model license is up for renewal in April. This license is negotiated by the trade association and adopted by a large number of the country’s independent publishers.
The NMPA has been known for its aggressive approach to licensing negotiations with other social media sites, games and apps in recent years, including a recent $250 million lawsuit against X (formerly Twitter) for alleged copyright infringement, and it would not be surprising if the trade organization considered following suit with UMG. If that happened, all indie publishers would be on their own to decide whether they wanted to negotiate with TikTok directly or leave the platform.
Already 21 of the 50 tracks on the TikTok Billboard Top 50 chart have been removed due to their UMG affiliation, but so far those take downs have focused on the company’s recordings, not publishing. Removing UMPG songs will be a far more arduous and complicated task than removing UMG records, given there are sometimes multiple recordings by multiple artists for the same underlying song. Publishing metadata — which keeps track of who wrote what song — is also notoriously incomplete or incorrect. In some cases, the metadata is often not even finalized and input until weeks or months after a song is released, making matters even more complicated.
It is widely believed that the process of taking down publishing interests will likely take a while and will be piecemeal and spotty, potentially forcing the UMPG team to police the platform and to issue takedown notices.
In the interim, UMG and TikTok are showing no signs of backing down. TikTok said the music company had “put their own greed above the interests of their artists and songwriters” after the letter was released. UMG fired back with another statement Thursday, calling TikTok’s view on compensating artists and songwriters “woefully outdated.” Amidst all the finger pointing, TikTok users are attempting to fill the gaps with non-UMG songs or covers of UMG records, while at least one UMPG writer, Metro Boomin, took to the internet to show his support: “It’s about damn time,” he posted to X.
A Los Angeles judge on Friday (Feb. 2) denied Lizzo’s motion to toss out a bombshell sexual harassment lawsuit filed by three of her former backup dancers, dismissing certain accusations but allowing the case as a whole to move forward toward a trial.
Facing allegations of harassment and discrimination, Lizzo argued last year that case should be dismissed under California’s anti-SLAPP statute — a special law that makes it easier to quickly end meritless lawsuits that threaten free speech (known as “strategic lawsuits against public participation”). Her lawyers argued that the accusers were using the lawsuit to “silence” her.
But in a detailed, 34-page decision, Judge Mark H. Epstein ruled that the anti-SLAPP statute didn’t quite fit all of the lawsuit’s allegations. He tossed out some claims – including a particularly loaded charge that Lizzo fat-shamed one of her dancers – but ruled that remainder of the case could go forward.
Figuring out the proper balance – between protected speech and illegal discrimination – was “no easy task,” Judge Epstein wrote, but he said he had “tried to thread this needle.”
“It is dangerous for the court to weigh in, ham-fisted, into constitutionally protected activity,” the judge wrote. “But it is equally dangerous to turn a blind eye to allegations of discrimination or other forms of misconduct merely because they take place in a speech-related environment.”
The case against Lizzo, filed in August by dancers Arianna Davis, Crystal Williams and Noelle Rodriguez, accuses the singer (real name Melissa Jefferson) and her Big Grrrl Big Touring Inc. of creating a hostile work environment through a wide range of legal wrongdoing, including not just sexual harassment but also religious and racial discrimination. The alleged weight-shaming, the lawsuit claims, amounted to a form of disability discrimination.
In one particularly vivid allegation, Lizzo’s accusers claimed she pushed them to attend a live sex show at a venue in Amsterdam’s famed Red Light District called Bananenbar, and then pressured them to engage with the performers, including “eating bananas protruding from the performers’ vaginas.” After Lizzo herself allegedly led a chant “goading” Davis to touch one performer’s breasts, the lawsuit says, Davis eventually did so.
Repped by Hollywood defense attorney Martin D. Singer, Lizzo fired back in October, arguing that Davis, Williams and Rodriguez had “an axe to grind” against the star because they had been reprimanded over “a pattern of gross misconduct and failure to perform their job up to par.”
“Plaintiffs embarked on a press tour, vilifying defendants and pushing their fabricated sob story in the courts and in the media. That ends today,” Singer wrote. “Instead of taking any accountability for their own actions, plaintiffs filed this lawsuit against defendants out of spite and in pursuit of media attention, public sympathy and a quick payday with minimal effort.”
The filing came with sworn statements from 18 members of Lizzo’s touring company who dispute many of the lawsuit’s specific factual accusations. That included several who challenged the headline-grabbing claim that Lizzo fat-shamed some of her dancers — a particularly loaded allegation against a singer who has made body positivity a key part of her brand.
Lizzo’s counter-attack came under the anti-SLAPP law. Anti-SLAPP motions are filed every day, but it was unusual to see one aimed at dismissing a harassment and discrimination lawsuit filed by former employees against their employer. They’re more common in precisely the opposite scenario: filed by an individual who claims that they’re being unfairly sued by a powerful person to silence accusations of abuse or other wrongdoing.
In their filings, Lizzo’s lawyers argued that the anti-SLAPP law could still apply to the current case because of the creative nature of the work in question. They called the lawsuit “a brazen attempt to silence defendants’ creative voices and weaponize their creative expression against them.”
But in his ruling on Friday, Judge Epstein largely rejected that argument. He said that conduct relating to speech is protected and that California law “law wisely disfavors chilling such conduct.” But he cautioned that free speech was not a magic wand against allegations of employer wrongdoing.
“The fact that the alleged incidents take place in the entertainment or speech world is no shield of invulnerability or license to ignore law enacted for the protection of California’s citizens,” the judge said.
The judge dismissed a sexual harassment allegation involving a nude photoshoot on the set of the reality competition series Lizzo’s Watch Out for the Big Grrrls; a disability discrimination accusation around one dancer’s allegation that she was fired from Lizzo’s tour after disclosing her mental health issues; and another allegation stating that Lizzo’s camp intentionally interfered with the dancers’ other job prospects after placing them on a “soft hold” and telling them they could not accept other work.
Lizzo and Shirlene Quigley, the captain of the singer’s dance team, will still have to face other allegations of sexual harassment, as well as accusations of racial and religious discrimination.
“We’re very pleased with the judge’s ruling, and we absolutely consider it a victory on balance,” said the dancers’ lawyer, Ron Zambrano, in a statement. “He did dismiss a few allegations, including the meeting where Arianna was fat shamed, the nude photo shoot, and dancers being forced to be on ‘hold’ while not on tour. However, all the other claims remain, including sexual, religious and racial discrimination, sexual harassment, the demeaning visits to the Bananenbar in Amsterdam and Crazy Horse in Paris, false imprisonment, and assault. The ruling also rightfully signals that Lizzo – or any celebrity – is not insulated from this sort of reprehensible conduct merely because she is famous. We now look forward to conducting discovery and preparing the case for trial.”
In his own statement, Lizzo’s lawyer, Stefan Friedman, said: “We are pleased that Judge Epstein wisely threw out all or part of four of the plaintiffs’ causes of action. Lizzo is grateful to the judge for seeing through much of the noise and recognizing who she is – a strong woman who exists to lift others up and spread positivity. We plan to appeal all elements that the judge chose to keep in the lawsuit and are confident we will prevail.”