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BMG is getting out of the live music business. The German music company agreed to sell its stakes in two live music companies, Undercover and Karo, to the minority shareholders, the company announced Friday (Dec. 22). The move comes less than a month after the company said it would focus on its core recorded music […]
Deezer shares fell 6.4% this week after France’s National Assembly approved a 1.2% tax on streaming revenue on Tuesday (Dec. 19). The new tax, which is meant to support local cultural programs, taxes effect in January and will be owed on top of existing tax obligations.
Deezer CEO Jeronimo Folgueira called the tax “the worst possible outcome of all the different scenarios” the company faced from the French government. “Adding taxes is the worst way of trying to support the industry,” he told Billboard. France is Deezer’s home and largest market, accounting for roughly 60% of its revenue in the first nine months of 2023, according to the company’s latest earnings report.
Spotify immediately pulled sponsorship support for two local music festivals to help offset the additional tax burden. France is not as important to Spotify as to Deezer, however, and the new tax was probably not a factor in the 1.3% decline in Spotify’s share price this week. Spotify would be far more affected if other countries followed France’s lead — a possibility raised by Deezer’s Folgueira. “It sets a very dangerous precedent for other markets,” he warned.
SiriusXM investors were unfazed by the news that the New York attorney general’s office had sued the company for allegedly making customers go through a “burdensome” cancellation process. The satellite radio company’s stock finished the week up 1.3% to $5.47 despite a lawsuit that alleges SiriusXM “deliberately wastes its subscribers’ time even though it has the ability to process cancellations with the click of a button.” The company said it will “vigorously defend against these baseless allegations” that “grossly mischaracterize” its practices.
The Billboard Global Music Index fell 0.3% to 1,517.98, lowering its year-to-date gain to 30.0%. Nine of the index’s 20 stocks posted gains this week; 11 stocks ended the week in negative territory.
Shares of streaming company LiveOne gained 10% to $2.21 after the company on Tuesday (Dec. 19) raised its guidance for revenue for its fiscal year ended March 31, 2024, to a range of $118 million to $120 million, up from $105 million to $110 million. The company also said that it’s finalizing a restructuring of its merchandising business, first announced on Dec. 14, that will reduce headcount by 75 to 100 staffers and result in $5 million to $10 million of cost savings.
Three other companies in the Billboard Global Music Index posted gains of 5% or more this week. Sphere Entertainment Co. rose 5.4% to $34.32. Warner Music Group improved 5.1% to $35.29. And K-pop company SM Entertainment gained 5% to 90,100 won ($69.32).
Major indexes fared better than music stocks as investors reacted positively to Friday’s announcement by the Federal Reserve that U.S. prices rose less than expected in November. In the United States, the Nasdaq composite gained 1.2% to 14,992.97 and the S&P 500 improved 0.8% to 4,754.63. In the United Kingdom, the FTSE 100 rose 1.6% to 7,697.51, while South Korea’s KOSPI composite index climbed 1.4% to 2,599.51.
Ruth Seymour, the hard-driving broadcast pioneer who transformed KCRW into a public radio powerhouse during her 32-year run at what was a sleepy Santa Monica-based station, died Friday. She was 88.
Seymour died after a long illness at her home in Santa Monica, former KCRW producer/publicity director Sarah Spitz announced.
The Bronx-born Seymour joined the FM station in 1977 as a consultant and became general manager a few months later. Her mission statement for KCRW was “to matter,” and she built it to be “singular, idiosyncratic, daring, independent, smart and compelling” — six words she employed over and over in her fundraising letters and on-air subscription drives.
During her tenure, KCRW became the West Coast flagship station for National Public Radio and launched a mix of news, talk, music, current affairs and cultural programming that included the signature music show Morning Becomes Eclectic; Which Way L.A.?, hosted by Warren Olney in the wake of the 1992 L.A. riots; Le Show, hosted by Harry Shearer; the political roundtable Left, Right and Center; To the Point; and The Politics of Culture.
“I believe we catch a lot of listeners by surprise,” she told the Los Angeles Times in a 1982 interview. “They tune in for one thing, just leave the radio on, and then find themselves wrapped up in something they didn’t expect.”
Through the internet and popular podcasts like The Business, hosted since 2009 by The Hollywood Reporter’s Kim Masters, KCRW gained a strong national profile and reputation before she retired in February 2010 and was succeeded by her onetime assistant, Jennifer Ferro, now station president.
“Ruth was singular in every way. She had a powerful vision that never wavered. There was a spirit in Ruth that no one else has,” Ferro said in a statement. “She didn’t just save NPR or create a new format — Ruth took chances and made decisions because she knew they were right. She trusted her gut. She broke rules and pursued excellence in ways that can’t easily be explained. She was a force of nature.
“Ruth’s legacy lives on at KCRW. She inspires us to be original, to host the smartest people, the most creative artists and to talk to our audience with the utmost respect for their intellect.”
The older of two sisters, Ruth Epstein grew up across the street from the Bronx Zoo. Her father was a furrier and her mother a garment worker, and the family didn’t have a telephone until she was 15.
She attended Sholem Aleichem Folk School in addition to public school and then City College of New York, where she studied one-on-one with the renowned Yiddish linguist Max Weinreich.
Seymour came to Los Angeles in 1961 to accompany her husband, the poet Jack Hirschman, who had landed a teaching job at UCLA after a stint at Dartmouth University, and she was hired as the drama and literary critic at the FM station KPFK. There, she interviewed the likes of Andy Warhol and Anne Sexton.
After freelancing in Europe for station parent Pacifica Radio, she returned to KPFK to serve as program director in 1971, and she produced a celebrity cast reading of selected scenes from the Watergate tapes with Shearer, Rob Reiner and, as President Nixon, Christopher Guest.
However, she was fired in 1976, a couple of years after the FBI had raided the station looking for a cassette from Patty Hearst and the Symbionese Liberation Army that KPFK had put on the air.
When Seymour arrived at KCRW, it was owned by the Santa Monica School District, had just five employees and was operating out of two converted classrooms on a playground at John Adams Junior High School.
Seymour replaced the oldest transmitter west of the Mississippi with a new one in 1979. Also that year, she ran NPR’s new two-hour Morning Edition program three times each weekday starting at 3 a.m. in a bid to outmaneuver L.A.’s then-leading public station, KUSC. “That way nobody was going to have [the programs] when I didn’t have them,” she said.
She let Shearer do pretty much anything he wanted on his weekly one-hour program.
“Ruth was a towering figure in public radio, embracing a breadth of subject matter and styles that, frankly, does not seem possible anymore,” he said in a statement. “She imagined a listener who was endlessly curious, open to a wide range of opinions and music, and worked tirelessly to satisfy that listener. There will not be one like her again.”
Said Seymour in 1987: “Our audience always understood what we were trying to do. From the very beginning, we were regarded as slightly demented. Not exactly irresponsible but adventurous, interesting. And idealistic.”
She would get the station a new home in the basement of the student activities building at Santa Monica College, which licenses KCRW, in 1984. She also advocated for passage of a 2008 municipal bond that built the station’s first stand-alone building, now located on the campus of SMC’s Center for Media and Design.
In 1996, Seymour made KCRW the first station to carry Ira Glass’ This American Life outside of its home base, Chicago’s WBEZ. She also did interviews, including one with poet Allen Ginsberg in 1985.
“My favorite mental image of Ruth was during the first war in Iraq,” NPR special correspondent Susan Stamberg recalled. “She put on a radiothon to raise money to send NPR correspondents to cover it (the great Anne Garrels and others). And to make her on-air pitches, she wore camouflage and combat boots! She knew it would be war to raise the funds, and she dressed for the challenge. I loved and admired her enormously and found her to be a great teacher and inspirer.”
The Times wrote in 1995 that Seymour ruled “with an iron fist … she is renowned for attracting and nurturing brilliant on-air talent and for swiftly cutting them loose if they step out of line or their Arbitron ratings slump.” In 2004, she would fire radio personality Sandra Tsing Loh after she said “fuck” on the air.
“Well, you’re not allowed to do that, especially if you use it as a verb, which she did, and especially if you use it as a verb on Sunday morning in the middle of Weekend Edition,” she recalled a few years later. (The engineer on duty, however, is supposed to replace an expletive with a bleep).
Seymour replaced Claude Brodesser-Akner as host of The Business with Masters, who heard from the exec minutes after she had been laid off by NPR during the 2008 recession. “She called me before I had even gotten into my car,” Masters recalled. “I didn’t know her. She said, ‘Sweetheart, are they meshuga? Their loss will be my gain.’”
During every Hanukkah from 1979-2007, Seymour hosted the three-hour live show Philosophers, Fiddlers and Fools, which featured Yiddish folk music, songs and stories and a memorial to the Holocaust. “I always broadcast the program on Friday evenings so I could bid my listeners a gut yontif,” she said in 2010.
Years after she divorced Hirschman, she changed her surname in 1993 to honor her paternal Polish-born great-grandfather, a rabbi.
Survivors include her daughter, Celia; her sister, Ann, and brother-in-law, Richard; her niece, Jessica; her nephew, Daniel; and cousins Anita and Greg. Her son, David, died at age 25 from lymphoma.
A public memorial service is being planned.
This story was originally published by The Hollywood Reporter.
Holiday music has exploded in popularity over the last decade as listeners hit play, again and again, on their favorite Christmastime songs on their favorite streaming services. The top 100 holiday tracks — track sales and on-demand audio streams in November and December — rose more than ten-fold from 2014 to 2022 compared to all-genre growth of 165% over those years.
But one group of songs has been left out of the holiday gold rush: religious songs.
Back in 2014, the top holiday song was Pentatonix’s version of “Mary, Did You Know?,” a song penned by Mark Lowry and Buddy Greene in 1991 and originally recorded by Christian recording artist Michael English the same year. In the November to December holiday listening period, that recording of “Mary, Did You Know?” had 276,000 track equivalent units, according to Luminate — with 92% coming from download purchases.
In 2022, the top song was a secular one: Mariah Carey’s omnipresent “All I Want for Christmas Is You,” which amassed 1.6 million track equivalent units in November and December. In 2023, both Carey and Brenda Lee’s “Rockin’ Around the Christmas Tree” are on pace to do even better thanks to constantly growing streaming numbers and the artists’ heavy media presences. Universal Music Group Nashville’s campaign for Lee, which included making an official video and an appearance on NBC’s Christmas at the Opry television special, pushed “Rockin’ Around the Christmas Tree” to No. 1 on the Hot 100 for the weeks ended Dec. 9 and 16.
In contrast, this year’s top religious holiday song, Pentatonix’s “God Rest Ye Merry Gentlemen,” ranks just No. 47. That lower ranking means fewer royalties from tracks and streams than the 46 secular songs in front of it. From Nov. 3 to Dec. 14, “God Rest” has only 19% of the track equivalent units of the No. 1 recording, “All I Want for Christmas Is You.”
The shift to secular holiday music has been abrupt. Pentatonix took the No. 1 spot in 2014 and the No. 2 spot in 2015, but by 2017, the top 10 holiday tracks were filled entirely with secular songs. Since 2018, no religious track has pierced the top 40. One of the top religious songs in recent years, Nat King Cole’s “O Come All Ye Faithful,” was No. 50 in 2022 and No. 46 in 2021.
Secular music’s command of the top 100 holiday recordings has widened over the last decade. In 2014 and 2015, 14 and 13 religious songs were among the top 100 holiday tracks, respectively. In each of the last three years, however, religious songs have accounted for only seven or eight of the top 100.
This change means religious songs have missed out on the recent financial bonanza. As secular songs dominate holiday listening, religious songs have won a smaller share of royalties. In 2014, 14 religious songs accounted for 83% of the top 100 holiday tracks’ royalties, according to Billboard’s estimate based on Luminate data. By 2022, seven religious songs accounted for just 4% of the top 100’s royalties. This year will have a similar disparity as only eight religious songs are currently in the top 100 holiday tracks.
Demographic shifts and the nature of popular holiday music suggest religious music will have a tough time making a comeback. As Billboard has reported, once a track becomes a holiday favorite, it gains a competitive advantage over other holiday tracks. That’s not to say a religious song can’t climb up the ranks in the coming years. But it takes multiple years for a new holiday recording to stick with listeners, and the young recordings with the most success — such as “Merry Christmas” by Elton John & Ed Sheeran and “Like It’s Christmas” by Jonas Brothers — are all secular. And with a declining Christian population in the United States to boot, it seems consumer sentiment is likely to match that trend, favoring songs about a special feeling this time of year over biblical themes.
Each week we’ll be sharing the most important news from the north with Canada’s top music industry stories, supplied by our colleagues at Billboard Canada.
For more Canadian music coverage visit ca.billboard.com.
Bryan Adams Splits With Longtime Manager
After a memorable handshake agreement in Vancouver 44 years ago, manager Bruce Allen and client Bryan Adams have broken up. As confirmed by a source with direct knowledge of the situation, Adams is now self-managing his career.
Bruce Allen
There has been no public announcement of the falling-out, but Bruce Allen Talent’s website no longer lists Adams as a client, and the “Run to You” rocker’s website similarly strikes any mention of Allen as his manager. Insiders say that Adams, short-term, is handling his own affairs.
Allen, now 78, has earned his mostly Canadian client list untold millions of dollars. Among them include some household names such as Bachman-Turner Overdrive, Loverboy and, more recently, Michael Bublé and Jann Arden.
The breach in the handshake agreement is believed to be over artistic direction, in particular Adams’ insistence on investing heavily in new music and videos in recent years. READ MORE
Spotify’s Global Job Cuts Hit Canada
On Dec. 4, Spotify announced it would be slashing its global workforce by 17%. Billboard Canada has learned that Nathan Wiszniak, Head of Artist & Label Partnerships at Spotify Canada, was among those laid off.
At the time of Spotify’s announcement, just a few days after unveiling its popular Spotify Wrapped campaign, it was unclear how many of the roughly 1,500 jobs cut would come from Canada. A spokesperson from Spotify Canada declined to share, but confirmed that Wiszniak was part of the layoffs.
Wiszniak has worked at Spotify Canada for nine years and was one of the founding members when the music streaming company expanded to Canada in 2014. In his role in Music Partnerships, he worked to promote Canadian music and artists and give them a global platform on Spotify.
“From the outset, my mission was to establish and promote an ecosystem that would propel the growth of our industry,” Wiszniak writes in an email to Billboard Canada.
Asked about his accomplishments, he highlights his role in championing Punjabi-Canadian artists like Ikky, Karan Aujla and AP Dhillon (all three appeared on Billboard Canada’s inaugural Punjabi Wave cover) and contributing to their exponential growth and in nurturing the early careers of breakout Canadian artists like Jessie Reyez, Daniel Caesar and Charlotte Cardin.
In the last two years however, he says, Wiszniak’s primary role has been “educating government stakeholders about the intricacies of streaming…during a regulatory phase that occurs once in a generation.” He’s likely referring to Bill C-11, the Online Streaming Act, which will update Canada’s media policy for the first time in decades. Spotify is at the heart of that bill’s implementation, which could require the company to make more direct and mandatory financial contributions to the Canadian music industry via government regulations.
On Nov. 30, just a few days before the layoff announcement, Wiszniak spoke at the Online Streaming Act hearings, arguing that “imposing initial base contributions on platforms before defining critical elements of the broadcast policy is premature, and risks overlooking the many ways that Spotify already contributes to and supports Canadian and Indigenous artists.” READ MORE
New IFPI Report Reveals Canadian Distrust of AI
The International Federation of the Phonographic Industry (IFPI) has released a new report detailing how music fans all over the world listen to music, with specific stats for participating countries. Music Canada has shared new data about Canadian listening habits from the report.
Most notably, it includes some vital Canadian perspectives on one of this year’s hot-button topics in the music industry: artificial intelligence. Many are not in favour, at least not of the wild west version of AI that has flooded the internet this year. 76% of Canadians believe that AI shouldn’t be employed to impersonate or clone a musician without their approval.
Even more Canadians — 85% — believe that music created solely using AI should be labelled as AI-generated, and also that human musicians are an essential part of music creation. The data indicates that in ongoing debates over the role of AI in music, Canadian consumers could support certain amounts of regulation and protections for artists.
AI music is already flooding streaming services, and Spotify allegedly removed tens of thousands of AI-generated songs from its platform earlier this year, to prevent those songs from acquiring fake streams and inflated royalties. Meanwhile, TikTok user @ghostwriter977 released an AI-created fake Drake and The Weeknd song earlier this year, gathering millions of streams before the song was taken off streaming platforms. According to the IFPI report, 77% of Canadians agree that AI systems should list which music has been used to train their tools.
The report included over 43,000 respondents from 26 countries, and concludes that globally, we’re listening to more music in more ways than ever. People around the world listen to an average of 20.7 hours of music per week — up from 20.1 hours in 2022 — and the use of paid streaming platforms is rising. For the 16-24 demographic, though, short-form videos are the top method of music listening, not audio streaming services.
On average, Canadians use 7.2 different methods to encounter music and hop between eight different genres. Half of Canadians subscribe to audio streaming services, while a quarter access music through unlicensed methods. In addition to how we listen to music, the report also highlights what music does for us: 83% of Canadians say that music is important to their mental health. READ MORE
Last Week’s Headlines: Top TikTok Tracks, Montreal’s Music and Noise Laws
Santa Fe Klan has signed a management deal with Prajin Parlay Inc., effective immediately, Billboard has learned today (Dec. 22). The indie record label is also home to música Mexicana phenomenon, Peso Pluma.
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“Santa Fe Klan has accomplished an incredible amount for música Mexicana and his community over the last few years,” CEO and manager of Peso, George Prajin, said in a press statement. “He is an impressive young man and we are looking forward to helping him continue cultivating his skills as both a musician and businessman.”
“As I enter this next chapter in my career I’m excited to join the Prajin Parlay roster and I’m excited for my fans to see everything we have planned for 2024,” added the renowned Mexican rapper born Ángel Quezada.
Additionally, Prajin is a partner in Doble P Records alongside Peso, who expressed “I’ve always admired Santa Fe Klan and I know he’s going to make a great addition to our family.”
On the 2023 Billboard Year-End charts, Prajin Parlay Inc.—also home to Jasiel Nuñez, Tito Doble P, and more—landed No. 1 on the Hot Latin Songs Publisher chart. The label, next to Doble P Records, had a breakthrough year ranking high on many of the year-end Billboard charts including Hot Latin Songs Imprint, Regional Mexican Albums Labels, and Independent Labels, to name a few.
Born in Guanajato, Mexico, Santa Fe Klan (his artistic name is an ode to his barrio) recorded and uploaded his own music to YouTube and SoundCloud when he was a teenager. His love for rap and hip-hop music was inspired by artists such as Cartel de Santa and MC Davo, and his ultra-personal and raw lyricism ultimately landed him collaborations with artists such as Snoop Dogg, Lupillo Rivera, and Calibre 50.
His first entry on Billboard‘s Hot Latin Songs arrived in April 2022 with “Mar y Tierra,” part of his fifth studio album Mundo, which debuted at No. 4 on Latin Pop Albums and No. 11 on Latin Rhythms Albums.
Earlier this year, Santa Fe earned his first career No. 1 on the Regional Mexican Airplay chart with the Los Ángeles Azules and Cazzu-assisted “Tú y Tú.”
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.”