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Madison Square Garden executive James Dolan is facing a sexual assault lawsuit that claims he pressured a masseuse into unwanted sex while his band was touring with the Eagles — and that he later facilitated an incident in which she was also assaulted by Harvey Weinstein.
In a lawsuit filed Tuesday (Jan. 15) in Manhattan federal court, Kellye Croft says that Dolan coerced her into “unlawful and unwelcome sex acts” on repeated occasions after she was hired to serve as a massage therapist for the Eagles’ Glenn Frey during the 2013 tour.
Croft says she thought the job on the concert tour — on which Dolan’s band JD & The Straight Shot opened for the Eagles — was “her big break” and the “opportunity of a lifetime.” But she says she quickly realized the real reason she was there.
“Dolan was extremely assertive, and pressured Ms. Croft into unwanted sexual intercourse with him,” writes Croft’s attorney, Douglas Wigdor. “Ms. Croft was disgusted by Dolan, but her youth and extreme loneliness while on the road with strangers, as well as Dolan’s immense power, made it possible for Dolan to manipulate Ms. Croft and lure her under his control.”
Dolan is the majority owner/CEO of Madison Square Garden Entertainment Corp., a live music giant that operates the famed New York City arena in addition to Manhattan’s Radio City Music Hall, the Las Vegas Sphere and other prominent venues.
Tuesday’s lawsuit also claims that Dolan later secretly orchestrated a 2014 encounter between Croft and his friend Weinstein, the disgraced film producer whose many sexual assault allegations helped spark the #MeToo movement in 2017. Weinstein is currently serving a decades-long prison sentence after being convicted on multiple felony charges.
Croft’s lawyers say Dolan arranged the early 2014 meetup, during which Weinstein allegedly invited her to his hotel room under the guise of discussing an opportunity for her to work as a massage therapist for actors on movie sets. After she refused his “escalating” behavior and returned to her room, her lawyers say Weinstein chased her down the hall, “barged into Ms. Croft’s hotel room” and proceeded to sexually assault her.
In a response sent to Billboard, Dolan’s attorney, E. Danya Perry, said there was “absolutely no merit to any of the allegations against Mr. Dolan” and that the references to Weinstein were “simply meant to inflame.” Perry alleges the claims were an “act of retaliation” by Wigdor, describing him as “an attorney who has brought multiple cases against Mr. Dolan and has not, and cannot, win a judgment against him.”
“Mr. Dolan always believed Ms. Croft to be a good person and is surprised she would agree to these claims,” Perry wrote. “Bottom line, this is not a he said/she said matter and there is compelling evidence to back up our position. We look forward to proving that in court.”
In his own statement, Wigdor said that “our firm has not lost multiple cases to Dolan — that is a fabrication.” He said that with the filing of the lawsuit, “it is time to finally hold Dolan accountable for his outrageous conduct.”
In addition to Dolan and Weinstein, the lawsuit also names several entities owned by The Azoff Company, the privately held company founded by legendary music industry executive Irving Azoff. Though Azoff himself is not individually named as a defendant, the lawsuit claims he was “extremely close friends” with Dolan as well as a frequent business partner — and that Azoff’s companies thus enabled Dolan’s alleged abuse.
“In addition to the extremely close personal relationship between Dolan and Irving Azoff, Dolan was a critically important business partner for the Azoff Entities,” Croft’s lawyers write. “The Azoff Entities thus benefited from facilitating Dolan’s behavior to the extent it kept their partner, a notoriously erratic billionaire, happy.”
In a statement to Billboard, a representative for Azoff strongly denied the lawsuit’s allegations: “Irving Azoff is not a party to this lawsuit. Neither he nor his companies had any involvement in any alleged misconduct by others.”
An attorney for Weinstein did not immediately return a request for comment.
Nashville-based Big Loud, home to artists including Morgan Wallen and HARDY, has revealed a joint venture with Nashville-based indie modern rock label Severance Records.
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Former Elektra Entertainment co-president Mike Easterlin, along with former Atlantic Records GM/senior vp of A&R Steve “Stevo” Robertson, serve as co-presidents of Severance Records. The new label launches with flagship signing Dexter and The Moonrocks, who are booked by WME’s Mike Krug, and managed by Lion’s Claw Entertainment’s Chris Schoemann, and Joe Greenwald (Marketing & Promotion).
“Stevo and I could not be more excited to be joining the Big Loud family,” Easterlin said in a statement. “(Big Loud Partners) Seth (England), Joey (Moi), Craig (Wiseman), and (Big Loud Rock / Big Loud Management Partner + President) Greg (Thompson) have been so supportive from the first time we met about building this partnership together. Watching the company that Big Loud has become in the country space only drives Stevo and I to want to make Severance Records the same kind of force in the alternative space. Our goal is to be rooted in Nashville, but global in vision.”
Prior to his work as co-president of Elektra, Easterlin had worked as president and GM at two of the company’s labels – Fueled By Ramen and Roadrunner Records. His career also includes roles at Virgin Records and Island Def Jam. Along the way, he’s worked with artists including Smashing Pumpkins, Lenny Kravitz, Nickelback, Panic! At The Disco, Paramore and Bailey Zimmerman.
During his 25-year tenure at Atlantic Records, Robertson signed Shinedown, Paramore, Rainbow Kitten Surprise, Knox and A Day to Remember, and helped develop artists including GAYLE, Collective Soul, Seven Mary Three, Matchbox 20 and more.
“I’m a fan of so much of the music Mike and Stevo have discovered and promoted throughout their careers,” Big Loud Partner / Producer / President of A&R Joey Moi said in a statement. “Working with them on building and establishing some incredible new rock and alternative acts is something we’re all really looking forward to.”
“Mike and Stevo have championed some of the most exciting, culture-driving music of the last two decades, so when the opportunity to work with them in this capacity came up, it was an instant ‘yes,’” Big Loud partner and CEO Seth England said in a statement. “We’re grateful to partner with them and build a legacy together with Severance.”
“When Mike (Easterlin) and I laid the groundwork for Severance Records, we were driven by a genuine love for rock music and an instinct to follow its evolving path,” Robertson said in a statement. “In an industry that seemed to have momentarily turned away from rock, we felt a strong undercurrent – a shift back towards the authentic sounds of guitars and raw attitude. Dexter and The Moonrocks struck a chord with us immediately. While being influenced by greats like Nirvana and Kings Of Leon, they’re a bridge to the future of rock, blending influences from rock legends and contemporaries like Rainbow Kitten Surprise and Colter Wall. Their sound is the DNA of Severance Records – rediscovering and redefining rock with a fresh perspective, especially with a nod to Southern roots.
“We’re shaping a unique culture. Our focus is alternative – alt-rock, alt-pop, alt-country, and indie rock. We’re drawn to authentic, unconventional sounds. Dexter and The Moonrocks are at the forefront of that. As our first signing, they represent the distinct sound of Severance Records.”
Sean “Diddy” Combs and alcohol giant Diageo reached a settlement Tuesday to resolve a lawsuit over their soured tequila partnership, ending a bitter legal battle that saw the embattled hip-hop star and mogul accuse the company of racism.
Combs, who is now facing multiple sexual assault lawsuits, claimed in the lawsuit that Diageo had breached their agreement by failing to adequately support his DeLeón brand of tequila. In doing so, he accused Diageo of treating his product line “worse than others because he is Black.”
The detailed terms of Tuesday’s settlement were not disclosed, but Diageo and Combs said in a joint statement that the agreement would leave the two with “no ongoing business relationship,” removing Combs from any further involvement in not just DeLeón but also the company’s popular Cîroc vodka.
“Sean Combs and Diageo have now agreed to resolve all disputes between them,” the two sides said in a joint statement. “Mr. Combs has withdrawn all of his allegations about Diageo and will voluntarily dismiss his lawsuits against Diageo with prejudice.”
The abrupt settlement with Diageo came as Combs is facing multiple accusations of sexual assault. After he quickly settled a rape lawsuit filed in November by longtime romantic partner Cassie, he was then quickly sued again by three different times by three different women over similar allegations. Diddy has strongly denied all such accusations and vowed to clear his name in court.
Before any of those allegations came to light, Combs sued Diageo in May, claiming the company breached his partnership deal for DeLeón. But he also went a lot further than that, claiming Diageo had “typecast” the tequila as a “Black brand” that could only be sold to “urban” consumers, harming its sales and leaving it lagging behind competing Diageo brands like Casamigos and Don Julio.
“Cloaking itself in the language of diversity and equality is good for Diageo’s business, but it is a lie,” Combs’ lawyers wrote. “While Diageo may conspicuously include images of its Black partners in advertising materials and press releases, its words only provide the illusion of inclusion.”
Diageo responded a month later, calling the lawsuit a “bad faith, sham action” filed by a star who had “amassed nearly one billion dollars” from their partnership but now wanted to “extract” billions more.
“These allegations are nothing more than opportunistic attempts to garner press attention and distract the court from the fact that plaintiff’s breach-of-contract claim is entirely without merit,” the company’s attorneys wrote. “Diageo categorically denies these accusations.”
Diageo demanded that the case be sent to private arbitration, citing a provision in Diddy’s partnership contract that they said required such disputes be handled out of court. The company argued that, if Diddy’s “inflammatory rhetoric” about racism was removed, the case was nothing more than a “garden variety” business dispute that must be arbitrated. But in September, the judge overseeing the case rejected that argument, meaning the case would have moved forward in state court, with the trial open to the public.
Members of a group of men who say they were sexually abused as boys by a Japanese entertainment mogul are accusing the company behind the scandal, previously known as Johnny’s, of not being sincere in dealing with the victims.
Shimon Ishimaru, who represents the victims’ group, said many have not yet received compensation. The group has asked to meet with company officials, but that has not happened, he said at a news conference with three other men who said they were victims.
Ishimaru is among hundreds of men who have come forward since last year, alleging they were sexually abused as teens by boy band producer Johnny Kitagawa. Kitagawa, who died in 2019, was never charged and remained powerful in the entertainment industry.
The company finally acknowledged Kitagawa’s long-rumored abuse last year. The company’s chief made a public apology in May. The Japanese government has also pushed for compensation.
The company, which has changed its name from Johnny & Associates to Smile-Up, said Monday (Jan. 15) it has received requests for compensation from 939 people. Of those, 125 have received compensation, it said in a statement. The company has set up a panel of three former judges to look into the claims.
“We are proceeding with those with whom we have reached an agreement on payments,” it said, while promising to continue with its efforts.
It did not immediately respond to a request for comment on Monday’s news conference.
The victims’ group said it has been approached by dozens of people who had been told by the company that there was not enough evidence to honor their claims. Details were not disclosed.
The company’s production business, known previously as Johnny’s, has continued under a different name, Starto Entertainment.
According to multiple accounts, Kitagawa abused the boys in his Tokyo luxury mansion, as well as other places, such as his car and overseas hotels, while they were performing as Johnny’s dancers and singers. The abuse continued for several decades.
The repercussions of the scandal have spread. In standup comedy, several women have alleged sexual abuse by a famous comic. He has denied the allegations.
The U.N. Working Group on Business and Human Rights, which is investigating the Johnny’s abuse cases, is to issue a report in June, including recommendations for change.
The Associated Press does not usually identify people who say they were sexually assaulted, but Kitagawa’s recent accusers have given their names. Critics say what happened and the silence of Japan’s mainstream media are indicative of how the world’s third largest economy lags in protecting human rights.
Mike Taylor, the U.S.-born music man who forged an outstanding major label career in his adopted homeland, Australia, where he A&R’d Delta Goodrem’s mega-hit album Innocent Eyes, has died following a battle with cancer. He was 54.
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“After enduring a long illness, Michael Taylor passed away peacefully on Jan. 11, 2024, in Brewster, New York, surrounded by family and loved ones,” reads a message circulated by family members.
Taylor moved to Sydney, Australia in 2001 when he joined Sony Music as head of A&R for Sony Music. There, Taylor worked on Goodrem’s Innocent Eyes, an album that created history, and cleaned up on the charts – and later, awards ceremonies.
Innocent Eyes logged an unprecedented 29 weeks at No.1 on the ARIA Albums Chart following its release in March 2003, and was declared the highest-selling album award at the ARIA Awards two years running. Delta snagged seven ARIA Awards in 2003, and was the first artist to have five No. 1 singles on the Australian chart from a debut album.
Taylor was rewarded by Sony Music with a stint in the U.S., where he served as senior director with the major’s Epic Records division. Less than two years later, he was back in Sydney, starting what would be a 15-year tenure with Universal Music Australia, which included stints as executive VP, A&R and founding general manager and head of UMA imprint, Island Records Australia.
At UMA, he was instrumental in growing the company’s domestic roster, signing a lineup of stars including Hilltop Hoods, Havana Brown, Baker Boy, Briggs, Clare Bowditch, Shane Nicholson, The McClymonts and Dean Lewis.
In September 2022, Taylor announced plans to leave his post as managing director of UMA, citing personal reasons and to dedicate more time to ongoing treatments.
Earlier in his career, Taylor had A&R stints in the U.S. with Columbia Records and at Madonna’s Maverick Recording Company.
For much of his time Down Under, Taylor’s was the only American accent to be heard at showcases and awards parties.
“I loved it then, and love it now. Living in Sydney is such an enjoyable life style,” he told this reporter in 2013, on his move to Australia. “I grew up in New York and lived in the city for years, so I wanted a change. In terms of the music scene and industry in Australia, I think it’s really vibrant, and punches way above its weight class for its population size.”
Outside of his day-to-day duties, Taylor and Peter Coquillard, now senior manager and head of international, Milk and Honey, established the Bali Songwriting Invitational, a camp where music creators could collaborate in paradise.
“Great songs are the key to success for an artist,” Taylor explained. “Writing in an environment that takes you out of your normal day to day can act be a catalyst to special songs.”
As news of his passing spread through the Australian industry, friends and colleagues remembered Taylor as one of the good guys, passionate about music, loyal to his people.
“Professionally respected and personally admired by everyone in the business,” is how Darren Aboud, COO at Select Music Agency, remembers his friend and former colleague. “He was a joy to work with; he gave so much back and his knowledge about cocktails was only surpassed by his knowledge of music.” Taylor and Aboud were appointed joint managing directors for Universal Music Labels Australia, as part of a restructuring unveiled in 2014. “His five-year fight with cancer was extraordinary,” recounts Aboud. “He was determined to live the best life no matter what he was up against.”
Adrian Wauchope, senior VP commercial at Warner Music Australasia, salutes Taylor as “a legend and a true music man,” while Don Elford, director of global partnerships at ASM Global, remembers Taylor as “the real deal.”
Taylor is survived by his wife Jenny and son Charlie.
His life and career will be celebrated this Saturday, Jan. 20 during a service at St Lawrence O’Toole Church, in Brewster, New York. A party will follow. In lieu of flowers, donations can be made to Charlie Taylor’s college fund.
Billboard is expanding its global footprint in Asia with the launch of Billboard Korea. The expansion, in partnership with Global Entertainment Media Group (GEMG), will be dedicated to the flourishing Korean music scene. Billboard Korea‘s first issue, Billboard K Vol.1, is scheduled for release in June. “We are thrilled to announce our expansion into Korea,” […]
Universal Music Group (UMG) shares rose 3% on Friday — the same day news broke that the company will lay off hundreds of staffers — and finished the week up 6.9% to 26.95 euros ($29.54). The prospect of cost savings made UMG the top-performing music stock of the week, beating French music streaming company Deezer’s 6.5% gain and 6% improvements by both Chinese music streamer Tencent Music Entertainment and live entertainment company MSG Entertainment.
UMG first let investors know it was planning layoffs in its October earnings call. On Friday, a report by Bloomberg said UMG is planning layoffs as early as this quarter, primarily in its recorded music division. A company spokesperson declined to comment on the scope and timetable of the layoffs but told Billboard UMG is “creating efficiencies” in certain areas of the business “so we can remain nimble and responsive to the dynamic market, while realizing the benefits of our scale.” UMG’s stock gained 14.7% in 2023.
Despite no stocks finishing the week with double-digit gains, the 20-company Billboard Global Music Index rose 3.6% to a record 1,566.45 as 12 companies posted gains and eight companies’ share prices declined. Streaming companies led the way with an average gain of 3.9%. Live music companies averaged a 0.7% improvement. Record labels and publishers dropped an average of 1.5%. Radio companies lost an average of 4%.
Music stocks topped the tech-heavy Nasdaq composite, which gained 3.1% to 14,972.76 and easily bested the S&P 500’s 1.8% increase to 4,783.83. In the United Kingdom, the FTSE 100 fell 0.8% to 7,624.93. South Korea’s KOSPI composite index dropped 2.1% to 2,525.05.
The index got a big lift from Spotify’s 4.9% gain to $203.03 this week. Spotify has surged 12.4% since it announced layoffs on December 4 and pledged to operate more efficiently. On Thursday, Spotify closed above $200 for the first time since Feb. 1, 2022. At Friday’s closing price, the stock is up 120.5% in the last 52 weeks.
Live Nation finished the week up 1.6% to $90.66 after Roth analyst Eric Handler upgraded the stock to “buy” and increased the price target from $92 to $114. The $114 price target implies a nearly 26% upside from Friday’s closing price.
Shares of French music company Believe fell 10.5% to 8.97 euros ($9.83) on Friday’s news that the company’s investors were pursuing taking the company private. According to a Reuters report, Believe’s largest shareholders, which includes founder Denis Ladegaillerie and U.S. investment firm TCV, have been working with advisors to gauge the interest of private equity firms. In the first nine months of 2023, Believe, the owner of digital distributor TuneCore and record labels such as PlayTwo and Jo&Co, had revenue of 630.4 million euros ($691 million), up 14.8% year over year.
While other companies in recorded music and publishing posted gains this week, K-pop stocks were down across the board. HYBE’s 2% decline to 247,000 won ($188.05) was the best of the four South Korean music companies. JYP Entertainment fell 8.3% to 96,600 won ($73.54). Two others each dropped 5.9%: SM Entertainment closed at 88,200 won ($67.15) and YG Entertainment finished the week at 43,100 won ($32.81).
This year, Billboard Canada will introduce the first Canadian edition of Power Players. The list will celebrate individuals pivotal in advancing Canadian music and boosting artists who are making a global impact.
Billboard Canada’s Power Players celebration will take place on Sunday, June 2, 2024, with an event held on the opening night of the long-running music festival and industry conference, Canadian Music Week (CMW).
CMW founder Neill Dixon says he noticed a void within the music industry and was looking for a method to spotlight key industry professionals. In its 42-year history, CMW has established itself as the central hub for industry professionals from Canada and across the globe. The introduction of Billboard Canada‘s Power Players list is set to provide a significant boost, propelling these industry voices to new heights.
“[It’s] a recognition long overdue for Canada,” says Dixon.
Canada’s music industry is in a pivotal moment of transformation. Following the breakout success of artists like Drake, The Weeknd, Justin Bieber and Shawn Mendes over the last decade and a half, a new generation of emerging artists is making its mark on the world stage.
In 2023, Tate McRae established herself as a global star, hitting No. 1 on the Billboard Canadian Hot 100 and Billboard‘s Global 200. Punjabi-Canadian artists like Karan Aujla and AP Dhillon made major waves across the world and signalled the global potential of Canada’s cross-cultural music scene. Meanwhile, with Canadian Content regulations and the Broadcasting Act under review for the first time in a generation, the industry is being reshaped and rethought before our eyes.
The Power Players list will be peer-nominated and selected by the Billboard Canada team. Nominations are set to open in February. – Richard Trapunski
Luminate 2023 Year-End Report Reveals Canadians Love Old Music, Afrobeats and Country
In 2023, Canadian total album consumption was up, while album sales — including physical and digital — declined slightly, according to the Luminate Year-End Music Report released this week.
While Luminate usually releases a separate Canadian report, this year the country’s data is included with the full global report.
In Canada, catalog sales are strong. Luminate compared growth in catalog consumption versus current release consumption, and found that in Canada, catalog represented 73.1% of music consumption while current releases represented only 26.9%. Catalog consumption also grew more than current release consumption last year, at 17.4% versus 9.1%.
Canada came in ninth place on Luminate’s list of the top 10 countries by streaming volume, with 145.3 billion streams. Canada doesn’t appear on the top 10 countries by streaming growth list, however, where India took the number one spot. Canada is also one of five countries outside the United States where hip-hop and R&B perform the best on streaming.
In Canada, Afrobeats had a big year thanks to Rema and Selena Gomez‘s “Calm Down,” (which finished second on Luminate’s list of top 10 songs of 2023 in Canada by audio- and video-on-demand streams) but Latin music has struggled to break through in the same way as it has in the United States, with 2023 heavy-hitters Peso Pluma and Karol G failing to land on Canada’s year-end charts. Country is very popular, though: Morgan Wallen is on Canada’s top 10 albums of 2023 by total equivalent album units, finishing at No. 1 with One Thing at a Time and at No. 4 with Dangerous: The Double Album. Further down the list is Luke Combs’ Gettin’ Old at No. 9.
Find all of the Luminate year-end lists and data insights, both for Canada and the United States, here. – Rosie Long Decter
Rêve Finds Some “Contemporary Love” on the Billboard Canadian Hot 100
This week marks the first Billboard Canadian Hot 100 since the holidays, and with the drop-off of seasonal songs, there’s lots of room for shakeups on the charts. The opening has certainly benefitted Montreal dance-pop artist Rêve, who has a new entry on the charts this week: Her new song, “Contemporary Love,” lands at No. 77.
This isn’t Rêve’s first Canadian Hot 100 appearance; her single “Whitney” finished at No. 68 on 2023’s year-end Canadian Hot 100 and cracked the top 10 on Billboard‘s Dance/Mix Show Airplay chart in the United States. A previous single, “CTRL + ALT + DEL,” peaked at No. 38 on the Canadian Hot 100 and was certified platinum. In 2023, Rêve released her full-length debut, Saturn Return, and was featured in Billboard‘s Dance Artist of the Month series. She also picked up a Juno Award for Breakthrough Artist.
“Contemporary Love,” a cut off Saturn Return, was released along with a music video in July. The track is now picking up steam following Rêve’s guest judge appearance on Canada’s Drag Race at the end of 2023, where she gave pointers to the competitors on a girl group challenge. The energetic dance-pop track, featuring very ’80s synth bass and drum fills as well as a rapid-fire chorus, has an intensity that could propel it even further up the chart.
Also making moves on the Canadian Hot 100 this week is Tate McRae, who returns to No. 1 with “greedy” following a holiday hiatus. The Calgary pop star is also blowing up in the United States, having just claimed the No. 3 spot on the Billboard Hot 100, behind Jack Harlow‘s “Lovin On Me” and Taylor Swift‘s “Cruel Summer.” Might she have enough momentum to take the No. 1 spot in the coming weeks?
Notably, McRae currently has two other songs on the Canadian Hot 100: “exes” at No. 19 and “run for the hills,” which hit a new peak at No. 34. Both are also charting on the U.S. Hot 100. – Rosie Long Decter
We live in the age of unparalleled music discovery and easy and cheap, often free, access to the world’s music. Listeners have never had it better. Luminate, the company that tracks music streaming and sales globally, said in its 2023 year-end report that its database of ISRCs — international sound recording codes, the identifiers given to unique recordings that allow them to collect royalties — reached 184 million in 2023.
But most of those songs barely register with listeners. Of those 184 million tracks, 60% — 109.5 million — weren’t streamed enough times to pay for a cup of coffee. About 16% — 30 million tracks — were streamed from 101 to 1,000 times. Another 18% — 33.9 million — were only streamed up to 10 times.
For companies that must handle the deluge of new music, the more alarming statistic is the number of tracks that went completely ignored. A quarter of those 184 million tracks —45.6 million — were not played even once, according to Luminate. That’s 45.6 million tracks with official ISRCs, made available through one of many digital distributors and taking up server space, that didn’t receive a single play last year. Not too long ago, 45.6 million was the entirety of a streaming service’s licensed catalog!
A few decades ago, the promise of streaming — as popularized by the 2006 book The Long Tail — was the ability for niche music to find an audience. No longer faced with the limited shelf space of a brick-and-mortar retailer, consumers could explore deep catalogs and find music they loved rather than buy whatever was readily available.
The economics of streaming is what helps more music get heard. On a streaming service, the cost of listening to one more song is zero. At most, it’s the value of the time spent listening to the song. With downloads, the cost of enjoying one more song is 99 cents (or $1.29 for the more popular tracks). The all-you-can-eat streaming service’s flat fee means people don’t have to pay more to consume more. Ad-supported streaming doesn’t even have a flat fee — the cost of listening is the cost of waiting through an advertisement.
The low cost of streaming, although great for music discovery and falling into musical rabbit holes, has never been a guarantee a recording will find an audience. In written testimony in 2016 to the Copyright Royalty Board, Will Page, then Spotify’s director of economics, noted that in 2013, 20% of Spotify’s 20 million-track catalog received no streams. Spotify “is not just increasing the sheer number of tracks available to the public,” Page wrote, “it’s ensuring that music can actually be heard.”
Well, not everything was getting heard. One-fifth of a catalog going untouched is a large void, but it was an improvement: Page also noted that a 2008 U.K. study found that over 80% of digital tracks went unsold. Just because digital distribution and inexpensive recording tools lowered the barriers to entry didn’t mean people would buy the music. Still, streaming allowed more music to get heard. But as the amount of music released annually exploded, the number of unheard tracks deepened dramatically. In 2013, when Spotify’s catalog had 20 million tracks, only 4 million didn’t get a single stream. Last year, Luminate counted 11 times that many tracks across all streaming services that didn’t receive one stream.
Streaming platforms, for all their playlists and ability to personalize the listening experience, can’t draw attention to every new recording. The better business decision appears to be to guide listeners to music they’ll most likely enjoy. Playlists are popular places to find new music, but the most popular ones cover only a small fraction of the more popular new releases. According to Chartmetric data shared with Billboard, there were 5,256 unique tracks on Spotify’s New Music Friday playlist last year (it currently has 4.8 million followers). Chartmetric tracked about 8.4 million tracks released in 2023 on Spotify last year (it doesn’t track every track uploaded to the service). That means 0.06% of those new releases found their way onto New Music Friday. A new track had an even lower odds of appearing on Spotify’s Today’s Top Hits playlist (34.6 million followers), which had only 201 unique tracks in 2023.
Of course, Spotify and other streaming platforms have far more than those two playlists, as well as personalization features and algorithm-driven tools to introduce people to music. And there is some evidence listeners are branching out well beyond the most popular tracks.
According to Luminate data shared with Billboard, the top 10,000 U.S. tracks’ share of total on-demand audio streams fell from 50.4% in 2018 to 40.3% in 2023. By Billboard‘s estimate, as streaming exploded in those six years, the 10.1 percentage-point swing equates to 377 billion on-demand audio streams that migrated from the top 10,000 tracks to less popular music. That’s a collective win for today’s do-it-yourself artists, hobbyists, bedroom producers, aspiring professionals and working-class musicians — and a more modest win for any single artist’s royalty income.
But 38 million new tracks per year seems to have broken the system. Those services reach far more users today than seven years ago. People have shifted their listening time from owned media (CDs, downloads) and radio to streaming. And yet with more streamers and more time spent streaming, a quarter of all commercially available tracks received zero streams in 2023.
There are financial implications to this sea of unheard and seldom-heard music. The marginal cost of server space is small, but the cost of handling music at this scale isn’t zero. Staff must be hired to build and maintain systems that ingest tracks, manage assets and handle royalty accounting. Cloud storage must be obtained for tens of millions of tracks with little to no economic value. If a quarter of the products aren’t selling because supply and demand are mismatched, that’s a big deadweight loss to the industry. This hasn’t been lost on labels, distributors and streaming platforms, of course. One solution has been to adopt new royalty calculations that set a minimum threshold of streams to receive royalty payouts.
None of this is a surprise. ISRCs are inexpensive for an artist to obtain, and it’s never been easier to record a song and upload it to a digital platform. There will continue to be a mismatch between the supply of music and listeners’ demand for that amount of music. The question is what the music industry wants to do about it.
As Universal Music Group chairman/CEO Lucian Grainge forecast in an October earnings call, saying that the company would need to “cut to grow,” UMG is expected to begin laying off employees as soon as this quarter.
Bloomberg first reported the news Friday morning (Jan. 12) that in the next few months hundreds of jobs will be cut from the company that has around 10,000 staffers worldwide.
A spokesperson for UMG declined to confirm the number or the timetable, but in a statement said, “We continue to position UMG to accelerate its leadership in music’s most promising growth areas and drive its transformation to capitalize on them. Over the past several years, we have been investing in future growth—building our ecommerce and D2C operations, expanding geographically, and leveraging new technologies. While we maintain our industry-leading investments in A&R and artist development, we are creating efficiencies in other areas of the business so we can remain nimble and responsive to the dynamic market, while realizing the benefits of our scale.”
In his New Year’s memo to the company, Grainge hinted at changes, writing the company will “further evolve our organizational structure.”
Despite the cuts, Grainge has promised further growth. In his same memo, he noted UMG’s global growth in the past year, including the restructuring and expansion of distribution company Virgin Music Group into such areas as the Middle East, Africa, India and China.
That is a plan that Grainge said promises to continue: “We will keep growing our presence around the world by doing just what we do in more established music markets: signing and developing local artists; providing local labels and entrepreneurs with global promotion, distribution, and a full suite of artist services; and acquiring local labels, catalogs and artist services businesses.”
The news comes while the U.S. recorded music industry continues to grow, despite the potential for streaming saturation and growing challenges from artificial intelligence. U.S. music consumption grew 12.6% in 2023 to 1.1 billion units (measured as album sales plus track equivalent albums and streaming equivalent albums), according to a year-end report issued by Luminate on Wednesday. With that double-digit gain, the U.S. market had its biggest one-year gain since consumption grew 15% in 2019.
UMG remains the leader in U.S. market share, bolstered by artists like Taylor Swift, Morgan Wallen, Post Malone and Olivia Rodrigo. For 2023, its record label market share was 35.84%, up 33.57% from 2022.
Warner Music Group already experienced layoffs, cutting roughly 4% of its staff last year.