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Strong album sales by K-pop groups Seventeen, Tomorrow X Together and New Jeans helped Korean music company HYBE enjoy record revenue of 2.18 trillion won ($1.67 billion), up 22.6%, in 2023, according to the company’s latest earnings report.
HYBE’s album sales from its Korean artists nearly doubled to 43.6 million last year from 22.2 million in 2022, while album sales accounted for 44.6% of total revenue, up from 31.1% the prior year. In Korea, Seventeen led the way with 15.9 million album sales (HYBE’s earnings release cited numbers from Circle Chart, which tracks sales only in Korea). Tomorrow X Together sold 6.5 million albums and NewJeans sold 4.3 million albums.
Streaming revenue got a boost from the company’s acquisition of Atlanta-based hip-hop label Quality Control in February 2023. Revenue from HYBE’s U.S. record labels — Quality Control as well as Big Machine Label Group — grew 70% to 150 billion won ($114.9 million) and accounted for nearly half of HYBE’s streaming revenue growth for the year. Streaming revenue from the company’s Korean labels outside Korea also performed well last year, increasing 102% to 107 billion won ($81.9 million). Within Korea, streaming revenue from those labels increased only 64%, however, to 41 billion won ($31.4 million).
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Concert revenue increased 39.1% to 359.1 billion won ($275 million) and accounted for 16.5% of total revenue, up from 14.5% in 2022. Much of that was due to volume, as HYBE had 125 concerts from seven touring artists in 2023 compared to 78 concerts from four touring artists in 2022.
Most other revenue sources declined year-over-year. Ads and appearances fell 12.3% to 141.9 billion won ($109 million). Merchandise and licensing dropped 17.7% to 325.6 billion won ($249 million). Content sank 15.1% to 289.9 billion won ($222 million). One bright spot was fan clubs, which increased 35.9% to 91.2 billion won ($70 billion).
Company-wide gross profit improved 19.7% to 1 trillion won ($773 million), lower than revenue’s 22.6% growth rate because cost of sales rose 25.2% (gross profit is sales minus cost of sales). Sales, general and administrative expenses increased only 17.7%, however, which helped operating profit improve 24.9% to 295.8 billion won ($227 million). Net profit soared 288% to 186.5 billion won ($143 million).
Korea’s share of HYBE’s revenue increased from 33% in 2022 to 36% in 2023. Japan’s share of revenue also increased, from 28% to 31%. North America fell from 32% to 26% despite the addition of Quality Control.
The Weverse social media platform ended the year with 10.1 million monthly active users (MAUs) in the fourth quarter, down from an all-time high of 10.6 million MAUs in the third quarter but well above the 8.5 million MAUs in the fourth quarter of 2022. Weverse finished the year with 122 artist communities, up from 71 at the end of 2022.
A lot of history was made last Thursday (Feb. 22) when the Odysseus space craft landed on earth’s moon. Not only did it mark the first time a private lander made lunar touchdown, but it saw an American craft return to the moon for the first time since 1972. Billboard can now reveal that the lunar lander made musical history as well, bringing digitized recordings from some of the most iconic musicians of all time to an arts-centric time capsule that’s currently sitting on the moon’s silent surface.
Filmmaker Michael P. Nash, whose acclaimed 2010 documentary Climate Refugees put a human face on climate change and is included in this lunar capsule, describes it as a “future ancient cave drawing” of sorts (his film is the sole documentary in this lunar payload). “In case we blow ourselves up with a nuclear weapon or a meteor hits us or climatic change wipes us out, there’s a testament of our history sitting on the moon,” he says.
This lunar art museum spans millennia, reaching all the way back to a Sumerian cuneiform fragment of musical notation up to modern-day beats by Timbaland. The digitized lunar archive includes material from 20th century icons Elvis Presley, Marvin Gaye, Santana, Jimi Hendrix, Chuck Berry, Sly & the Family Stone, Bob Marley, Janis Joplin, The Who and many more, as well as photos of everything from Woodstock to album art (naturally, a photo of Pink Floyd’s The Dark Side of the Moon is included) in a glass, nickel and NanoFiche structure built to last millions of, if not a billion, years.
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“This is music that stands the test of time,” says Dallas Santana, who came up with the idea of sending 222 artists to the moon and pitched it to the Arch Mission Foundation. Working with Galactic Legacy Labs, Space Blue (Santana’s company) curated the payload, which was affixed to the Intuitive Machines-built craft (that company had no creative input on this payload’s contents, nor did SpaceX, which launched the lander). Space Blue formed a partnership with Nash’s Beverly Hills Productions and Melody Trust — a company that owns the rights to some masters from a number of classic rock artists — for the purposes of this enterprise, appropriately titling it Lunar Records.
The archive from Melody Trust, which Santana says is about 25,000 songs deep, includes unreleased recordings from some of these musical legends, according to Santana. “Songs that have never been released, ever — they’re on the moon now,” he says, tipping to purportedly unreleased recordings of Hendrix captured prior to the formation of the Jimi Hendrix Experience. As a huge Hendrix fan, he says he was “immediately skeptical” about them at first but was pleasantly surprised to be wrong about them after months of “due diligence and analysis” from his advisors. “The world will find out about them,” he promises.
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As the curator of the musical moon museum, Santana says music from 1969 and artists who played Woodstock are a focal point of this collection for several reasons. On July 20, 1969, humans set foot on the moon for the time; just weeks later, the Summer of Love reached its pinnacle when 460,000 people gathered at the Woodstock Music Festival in a spirit of peaceful togetherness he hopes this capsule will evoke. Santana admits there’s a bit of historical irony here: many musicians of that generation pressured the U.S. government to stop spending money on lunar landings in favor of solving terrestrial problems, which was a part of the reason NASA suspended moon missions in 1972. Now, some of those artists are enshrined on the moon for up to a billion years.
While the Space Blue founder has previously teased an arts-centric payload on this mission, he specifically kept the names of the musicians known to a select few. “NASA doesn’t know – SpaceX doesn’t know yet,” he says. “Elon Musk is the greatest rocketeer of all time, we’re grateful for his company. When we decided to have conversations about musicians last year, we thought it was not appropriate to bring to it to his attention what we were going to do. And musicians were concerned about that. They said, ‘Does Elon Musk have anything to do with deciding what musicians go up there?’ And I said, ‘Absolutely not, this is a private payload.’”
He hopes the lunar payload – which also includes plenty of non-musical artistic achievements, including paintings by Rembrandt and Van Gogh – will “resurrect” the spirit of the Woodstock generation. “We need peace on the earth right now. We’ve brought to the moon the Summer of Love, the people and artists and messages that are needed on earth right now.”
The inclusion of Nash’s Climate Refugees documentary in the lunar art museum acknowledges another pressing concern facing us earthlings – climate change and the mass migration that’s likely to ensue. With an eye on what’s next, Nash is beginning to work on a sequel film called Chasing Truth. “My partners are Leonardo DiCaprio, his father, George DiCaprio, and the VoLo Foundation. We’re going back around the world to update this,” he says.
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“Both Leonardo and George are very clear this needs to be a solution-oriented film, more utopian than dystopian. This is going to give solutions,” Nash promises. “We’ve passed the point of changing lightbulbs – but that’s really important. There are power in numbers. Become part of something bigger than you. It’s going to take everybody to move us past this tsunami headed our way.”
After this mission, Lunar Records intends to continue rising. They are eying other lunar payloads of a similar nature, and even talking about placing an arts museum on Mars if a Martian landing comes to pass – meaning that Mars’ igneous rocks may have to make room for a new kind of rock before too long.
Space Blue and Michael Nash
Don Henley said Monday that he never gave away handwritten pages of draft lyrics to “Hotel California” and other Eagles hits, calling them “very personal” in testimony that also delved into an ugly but unrelated episode: his 1980 arrest.
Henley, the Grammy-winning co-founder of one of the most successful bands in rock history, is prosecutors’ star witness in an unusual criminal trial surrounding the lyrics sheets.
Henley says they were stolen decades ago from his barn in Malibu, California. He testified Monday that he was appalled when the material began turning up at auctions in 2012.
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“It just wasn’t something that was for public viewing. It was our process. It was something very personal, very private,” he said in a raspy drawl. “I still wouldn’t show that to anybody.”
The defendants are three collectibles experts who bought the pages years later through a writer who had worked with the Eagles on a never-published band biography. The defense maintains that Henley willingly gave them to the scribe.
Under cross-examination, Henley acknowledged that he didn’t remember “the entirety” of his conversations with the writer, Ed Sanders, who isn’t charged in the case. Nor, Henley said, could he recall whether he gave Sanders permission to take the documents off the property.
But Henley insisted he gave Sanders only access to the documents, not permanent possession of them, in the hopes that a firsthand view of “the time and effort that went into” the lyrics would improve the book.
He said he told Sanders he could look at the pages, ideally at a breakfast table in an apartment upstairs from the barn.
“I never gave him permission to keep those items,” Henley said.
At issue are about 100 sheets of legal-pad paper inscribed with lyrics-in-the-making for multiple songs on the “Hotel California” album, including “Life in the Fast Lane,” “New Kid in Town” and the title track that turned into one of the most durable hits in rock. Famed for its lengthy guitar solo and puzzlingly poetic lyrics, the song still gets streamed hundreds of millions of times a year.
The defendants — rare-book dealer Glenn Horowitz and rock memorabilia specialists Craig Inciardi and Edward Kosinski — have pleaded not guilty to charges including criminally possessing stolen property. Their lawyers say there was nothing illegal in what happened to the lyrics sheets.
The defense has signaled that it plans to question Henley, 76, about how clearly he remembers his conversations with Sanders during an era in which the rocker was living in his own fast lane. In an apparent attempt to defuse some of those questions, a prosecutor brought up Henley’s 1980 arrest.
Henley pleaded no contest in 1981 to a misdemeanor charge of contributing to the delinquency of a minor, after authorities found cocaine, quaaludes, marijuana and a 16-year-old sex worker naked and suffering from an overdose at his Los Angeles home the prior November. He was sentenced to probation and a $2,500 fine, and he requested a drug education program to get some possession charges dismissed.
Henley testified Monday that he’d been depressed about the Eagles 1980 breakup and had sought “an escape” by calling a sex worker.
“I made a poor decision which I regret to this day,” he said.
As for his memory, he said, “I can’t tell you what I had for breakfast last Friday morning, but I can tell you where we stayed when we played Wembley in 1975 and we opened for Elton John and the Beach Boys,” referring to London’s Wembley Stadium.
Sanders began working with the Eagles in 1979 on a band biography that never made it into print. He sold the documents to Horowitz, who sold them to Kosinski and Inciardi. Kosinski has a rock ‘n’ roll collectibles auction site; Inciardi was then a curator at the Rock & Roll Hall of Fame.
In a 2005 email to Horowitz, Sanders said Henley’s assistant had sent him the documents for the biography project, according to the indictment.
Henley reported them stolen after Inciardi and Kosinski began in 2012 to offer them at various auctions.
Henley also bought four pages back for $8,500 in 2012. He testified that he resented having to buy back what he contends was his own property. But he said he saw it as “the most practical and expedient” way to get the auction listing, which contained photos of the lyrics sheets, off the internet.
Kosinski’s lawyers, however, have argued that the transaction implicitly recognized his ownership.
Meanwhile, Horowitz and Inciardi started ginning up alternate stories of how Sanders got hold of the manuscripts, Manhattan prosecutors say.
Among the alternate stories were that they were left behind backstage at an Eagles concert, that Sanders received them from someone he couldn’t recall, and that he got them from Eagles co-founder Glenn Frey, according to emails recounted in the indictment. Frey had died by the time Horowitz broached that last option in 2017.
Sanders contributed to or signed onto some explanations, according to the emails. He hasn’t responded to messages seeking comment about the case.
Kosinski forwarded one of the various explanations to Henley’s lawyer, then told an auction house that the rocker had “no claim” to the documents, the indictment says.
Henley has been a fierce advocate for artists’ rights to their work. Since the late 1990s, he and a musician’ rights group that he co-founded have spoken out in venues from the Supreme Court to Congress about copyright law, online file-sharing and more. As recently as 2002, Henley testified to Congress to urge copyright law updates to fight online piracy.
Henley also sued a Senate candidate over unauthorized use of some of the musician’s solo songs in a campaign spot. Another Henley suit hit a clothing company that made t-shirts emblazoned with a pun on his name. Both cases ended in settlements and apologies from the defendants.
Henley also testified to Congress in 2020, urging copyright law updates to fight online piracy.
BMG announced on Monday (Feb. 26) an exclusive recordings agreement with the estate of the iconic Spanish flamenco guitarist Paco de Lucía. In a partnership with the Paco de Lucía Foundation, BMG is set to release Pepito y Paquito, an album featuring 21 previously unreleased tracks by Paco de Lucía and his brother Pepe, in May 2024.
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“We are delighted that these very special recordings, completely unknown until now, will finally be released with BMG on such a special date as the 10th anniversary of Paco de Lucía’s departure,” representatives of Paco de Lucía’s Estate said in a statement. “These recordings are an extraordinary document that reflects the first steps in the career of Paco de Lucía and Pepe de Lucía, and they are already part of the history of flamenco.”
According to a press release issued by BMG, the recordings — which date back to 1959 and 1960 — give flamenco fans an insight into the “early musical endeavors” of Pepe and Paco at the ages of 13 and 11, respectively. AI was used to help restore the recordings from a vintage Grundig TK46 tape recorder.
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“I never thought these recordings would ever see the light of day, but thanks to the tireless work of the team that has been part of this process, the tapes have finally been restored and are ready to be released,” added Pepe. “When I listened to the tapes again, more than 60 years after their original recording, I couldn’t believe that those children were my brother Paco and me. It is a wonderful recording that brings back fond memories of the happiest time of our lives and serves as a fitting finale to our careers.”
“It has been a privilege to work hand in hand with Pepe de Lucía and the Paco de Lucía Foundation for more than a year to document, restore, and finally publish these tapes that showcase the genius of these two brothers who changed the history of music in Spain and around the world,” said Javier Doria, BMG director A&R Spain.
The deal comes on the heels of a Paco de Lucía Legacy Festival, which took place in New York from Feb. 20-24 commemorating the 10th anniversary of Paco de Lucía’s death. A historical figure in flamenco and a key figure in the globalization of the music, Paco de Lucía was honored by more than 30 flamenco artists at the four-day event.
L to R: Francisco Sánchez Gómez (Paco de Lucía) and José Sánchez Gómez (Pepe de Lucía) with their mother Lucía Gomes Gonçalves
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If you don’t live under a rock, you are likely aware that Beyoncé released a pair of new songs earlier this month. One of them, “Texas Hold ‘Em,” has blanketed TikTok in recent days: Around 74,000 users had made videos incorporating the sound on February 18; this more-than-tripled over the course of a week, pushing the total number of clips using the track past 224,000 on February 25. “Texas Hold ‘Em” climbed from No. 2 to No. 1 on the latest Hot 100.
TikTok’s ability to help drive this kind of ubiquity has diminished in recent years — much to the chagrin of the music industry. “In 2019, you could catch a trend and go top five on Apple Music in like a day,” says Harrison Golding, vice president of strategic marketing at EMPIRE. “Now the platform is so mature that even if you get trends and user-generated content, the numbers may not correlate to streams.”
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And yet: “The virality of this Beyoncé record shows you the power of the platform,” says Nima Nasseri, a former vp of A&R strategy for Universal Music Group, where he worked on a team that ran TikTok campaigns for resurgent catalog hits like Trinidad Cardona’s “Dinero” and Phantogram’s “Black Out Days.” “It’s still there. You can’t discount it.” (Not that anyone was discounting it — more like lamenting the good old days when outcomes on TikTok were far easier to influence.)
The TikTok takeover of “Texas Hold ‘Em” carries extra weight because it feels like a potent reminder of the platform’s impact at a time when the music industry is eager to look for alternatives. Licensing negotiations between Universal Music Group and TikTok fell apart in January, which means that no official sounds from UMG artists have been available on the platform during February. And whenever TikTok faces a potential obstacle — U.S. politicians threaten to ban it, for example, or a massive song catalog is removed — music industry attention turns to Instagram and YouTube, which also have their own short-form video delivery systems (Reels and Shorts, respectively).
It’s possible that more music will come down from TikTok at the end of February — not just tracks by UMG’s artists, but also any songs that include contributions from Universal Music Publishing Group’s songwriters. It makes sense, then, that “artists and their teams are putting more strategy into all three platforms now,” according to Jen Darmafall, director of marketing for ATG Group. “Before, they would just make content that works for TikTok and then post it on the other platforms.”
Although recent history is littered with songs that exploded on TikTok and saw a correlated jump on streaming services, it’s always been much harder to find comparable examples associated with Reels and Shorts. “Reels is more self-contained,” Nasseri explains. “You can get 100,000 uses of a sound on Reels, and that won’t impact” plays on streaming services.
Historically, success on Reels creates “more of a passive following,” adds Ben Locke, director of A&R and marketing at the label Disharmony.
When it comes to Shorts, Golding includes it in all his rollouts, as do most music marketers. “Is it changing a record like TikTok can?” he asks. “No, not yet.”
Nasseri agrees: “You don’t see creates grow at the same rate on YouTube Shorts as they do on TikTok.” (Neal Mohan, YouTube’s CEO, recently wrote on the company’s blog that “Shorts is averaging over 70 billion daily views, and the number of channels uploading Shorts has grown 50% year over year.”)
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This all makes the recent success of Sawyer Hill’s “Look at the Time” that much more noteworthy: The song topped Spotify’s Viral 50 chart in the U.S. last week thanks in large part to listeners coming from Reels. “I’ve never seen virality from Reels like this that drove consumption in a meaningful way,” says Locke, who signed Sawyer Hill to Disharmony.
Locke actually found Sawyer Hill on TikTok (of course) late in 2022; “Look at the Time,” a parched power ballad riddled with reproachful guitar riffs, came out in June 2023. In the past few months, Locke says, Sawyer Hill “pivoted his strategy more to Reels, because he felt like there was less of an over-saturation of music on that platform.”
And recently, Locke continues, “his content is starting to get a ton of engagement.” The top comment on Sawyer Hill’s “Look at the Time” YouTube video is “Instagram brought me here, I’m glad the algorithm showed me this gem.” The second comment is more amusing — and more revealing: “Usually the songs that are advertised on insta SUCK but this is actually gorgeous.”
Tommy Kiljoy, who manages ThxSoMch, calls the success of “Look at the Time” “a major win for Instagram.” The platform “is still a little bit weird — you get more followers than engagement,” he says. But ThxSoMch’s latest single “Hide Your Kids” also recently enjoyed a boost from Reels. (Sawyer Hill and ThxSoMch are not signed to UMG labels, so their music is currently available on TikTok as well.)
It’s too early to know if this activity on Reels is an aberration or the start of a trend. On Friday, “Look at the Time” enjoyed its fifth day at No. 1 on Spotify’s U.S. Viral 50. Sitting nearby at No. 3 was Djo’s “End of Beginning.” Unlike Sawyer Hill, though, Djo’s success can be attributed directly to TikTok users, who have embraced the 2022 song in droves.
This just goes to show, “in the digital space, no one has the formula right now,” as Golding puts it. “We’re constantly trying to figure out what type of campaign is going to actually convert a new fan. It’s a few drops in a bucket here, a few drops there, and hope you catch a viral moment.”
The Universal Music Group purchased a majority stake in Nigerian record company Mavin Global, the iconic label founded by Don Jazzy that is home to Rema, Ayra Starr, Crayon and Ladipoe, among others. The deal is expected to be completed by the third quarter, pending regulatory approval, the companies announced.
Terms of the deal were not disclosed. However, Billboard reported in October that Mavin was being shopped by Shot Tower Capital at a valuation north of $125 million, with a sale price in the region of $150 million to $200 million; it was unclear if publishing was involved in the deal. As part of the investment arrangement, Don Jazzy — who founded Mavin in 2012, and also serves as CEO — and COO Tega Oghenejobo will continue to run the label.
“Our criteria for identifying partners is straightforward: great artists, great entrepreneurs, great people,” UMG chairman/CEO Lucian Grainge said in a statement announcing the deal. “With Don Jazzy, Tega, the Mavin Global team and their artist roster, we’ve found ideal partners with whom to grow together. Mavin’s brilliant artists have been catalysts in the transformation of Afrobeats into a global phenomenon and we’re thrilled to welcome them into the Universal Music Group family.”
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Mavin had already established a relationship with UMG, with Rema’s “Calm Down” — the biggest Afrobeats song of all time, which reached No. 3 on the Hot 100 last year — initially distributed by Virgin Music, with its remix featuring Selena Gomez licensed to Interscope; Starr, meanwhile, has a deal in place with Republic. “Calm Down” has racked up more than 1 billion on-demand streams in the U.S. alone since its release, with its global count many multiples higher.
The investment is designed to spur Mavin’s growth around the world, according to a press release, with focuses on both Mavin’s Artist Academy, which nurtures its roster in various musical and performance skills, and its executive leadership team, which is aimed at growing the next generation of African leaders in the music business.
“With our proven history of collaborations within the UMG family, we have a strong belief that they are the ideal partner for the next phase of our growth, given the diversity and potential of our business,” Oghenejobo said in a statement. “UMG is home to some of the world’s foremost music entrepreneurs and artists, making them a perfect match for our aspirations. By collaborating with UMG, we are dedicated to cultivating a vibrant creative environment that propels African music to new heights on the global stage.”
Winning the Mavin auction catapults UMG deeper into the Nigerian Afrobeats scene — the umbrella genre that encompasses Afropop, Afro fusion, high life and others that continues to explode around the globe. In the past several years, artists such as Wizkid, Davido and Burna Boy have blossomed into global superstars, while the likes of Rema, Starr, Tems, Tyla, Ckay, Asake and Fireboy DML have led a wave of young, emerging talent coming from the African continent. The movement has gained momentum to the point that the Recording Academy introduced a new Grammy Awards category for best African music performance, which was awarded to Tyla’s “Water” at the honors earlier this month.
Additional reporting by Ed Christman.
Nora Fatehi, a Canadian-born Bollywood star with Moroccan roots, has signed a recording contract with Warner Music as the actress, dancer and singer looks to add “global music star” to her professional accomplishments. Based in India, Fatehi will work closely with WMG teams in the U.S. and globally on music-related releases and projects, but remain signed with Indian label T-Series for her Bollywood work.
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Fatehi made her name across India performing what are known as item songs — special musical numbers inserted into a movie — in numerous Hindi, Telugu, Tamil and Malayalam films. Her appearance in the 2018 film Satyameva Jayate, in which she performed the Bollywood classic “Dilbar,” led to her recording and sining an Arabic version of the song in collaboration with Moroccan group Fnaire that has racked up hundreds of millions of views on YouTube.
Her other musical endeavors have included collaborations with Tanzanian artist Rayvanny for the Afropop track “Pepeta,” as well as British singer Zack Knight for the pop song “Dirty Little Secret.” She has also released several solo tracks, including “I’m Bossy” earlier this year. According to WMG, Fatehi’s Bollywood songs have garnered over five billion views on YouTube, such as “Saki Saki,” Kusu Kusu” and “Garmi.”
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In late 2022, Fatehi shared the stage with global stars Davido, Ozuna, Manal, Balqees, Rahma and GIMS at the closing ceremony of the FIFA World Cup 2022 in Qatar, where she grabbed the spotlight for the English version of Cup anthem “Light the Sky.”
Indian music fans spend over 24 hours each week listening to music, with top genres including Bollywood and Indian Pop, among others, according to IFPI’s latest Engaging With Music report. Fatehi’s background and versatility, along with being fluent in multiple languages, means she won’t be limited to the vast market of her home base. The Middle East and North Africa, for example, was the fastest growing region for music in 2022, jumping 24%, reported IFPI, while Asia grew by 15.4%.
“Nora is an extraordinary talent, electric performer, and cross-cultural superstar whose music reflects the rich diversity of her background,” said WMG CEO Robert Kyncl. “Her passion and ambition are infectious and we’re excited to help her reach new audiences, places, and heights across the globe.”
Alfonso Perez-Soto, president of emerging markets for WMG, added: “I’ve been blown away by Nora’s star power. She has the creative ability and sheer stamina you need to become one of the world’s biggest artists. We can’t wait to put the global resources of Warner Music at her disposal as she starts the next chapter of her music career.”
In the meantime, Fatehi’s film career continues in its upward trajectory with the release on Friday (Feb. 23) of Crakk – Jeethegaa Toh Jiyegaa, a Hindi-language film billed as the “first-ever extreme sports action film in India.”
“I’ve enjoyed great success in my career so far, but this deal is a significant step forward in my musical journey, a new chapter in my international career,” she said. “My ambition is to be a global music star and performer, connecting with fans all over the world. I want to use my diverse cultural background to create music and dance that brings everyone together! I’m excited to work with Warner Music to leverage their experience and expertise to help me fulfill this goal.”
Songwriters and publishers are due nearly $400 million in additional payouts following the Copyright Royalty Board‘s Phonorecord III final determination in August, according to information the Mechanical Licensing Collective (the MLC) released on Friday (Feb. 23). During the Phono III blanket license period (2021-2022), the MLC reports that digital service providers like Spotify, Amazon Music, […]
The American Federation of Musicians has reached a tentative agreement with the Alliance of Motion Picture and Television Producers as of Friday.
The agreement, which concerns basic theatrical motion picture and basic television motion picture contracts, comes with “historic breakthroughs” on streaming residuals and protections against AI, according to AFM. The agreement is unanimously recommended by the bargaining committee.
While AFM leadership said they could not comment on the exact details in the contract, they confirmed that the tentative deal language includes streaming residuals for musicians for the first time.
“This agreement represents a major win for musicians who have long been under-compensated for their work in the digital age,” said AFM International President and Chief Negotiator Tino Gagliardi. “We have secured historic breakthroughs in streaming residuals, established critical guardrails against the misuse of AI, gained meaningful wage increases and other important gains. This agreement represents a watershed moment for the artists who create the soundtracks for countless film and TV productions.”
The tentative agreement must be approved by AFM International Executive Board and then will next be submitted for ratification by roughly 2,000 members working under the contracts.
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The deal came after a first round of negotiations from Jan. 22 through Jan. 31 and then a second round that began Feb. 21 and lasted until the early hours of Feb. 23. The negotiations took place at the Sherman Oaks offices of the AMPTP.
AFM held a rally outside the offices on the first day of negotiations, with members from several other entertainment unions attending to show their support. The tentative agreement comes just ahead of the March 4 start date for negotiations between the AMPTP and the International Alliance of Theatrical Stage Employees and the Hollywood Teamsters.
“I want to congratulate our AFM Fair Share for Musicians bargaining unit members for their unwavering commitment to fighting for a contract that fairly compensates them for their invaluable contributions to film and TV and protects them in the ever-changing film and television industry,” Gagliardi concluded. “We were not alone in this negotiation, and we were proud to have the full backing of fellow unions: SAG-AFTRA, Writers Guild of America, IATSE, and the Teamsters. It was yet another powerful reminder that when we have solidarity in the labor movement, we can achieve great things. We also would like to thank Carol Lombardini, president of the AMPTP, as well as the AMPTP and its member companies, for helping bring these negotiations to a successful conclusion.”
This article was originally published by The Hollywood Reporter.
Cumulus Media led all music stocks this week by gaining 20.2% to $4.70 after the radio broadcaster announced it had employed a “poison pill” to ward off a Singapore-based investor.
In January, Renew Group Private Ltd increased its stake in Cumulus Media from 5.2% to 10.01%. To protect the best interests of all Cumulus shareholders, the board of directors explained, the company chose to enact a “limited-duration shareholder rights plan” that would dilute Renew Group’s equity if it exceeds a 15% stake. In justifying the move, Cumulus said Renew Group has investments in other media companies, including a direct competitor to Cumulus.
Music stocks were broadly up this week as the Billboard Global Music Index improved 1.5% to a new high of 1,684.49. The index is up 9.8% in the young year and has gained 38.4% over the past 52 weeks. Of the index’s 20 stocks, 13 finished the week in positive territory, six lost value and one was unchanged.
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Stock markets around the world reached new highs this week, too. In the United States, the Dow reached a new closing high of 5,088.80 on Friday (Feb. 23) after surpassing 5,100 for the first time earlier in the day. The Nasdaq composite also reached a new high on Friday and finished the week up 1.4% to 15,996.82. The S&P 500 improved 1.7% to a new closing high of 5,088.80. Japan’s Nikkei 225 index reached an all-time high on Thursday (Feb. 22), finally surpassing the previous record reached in 1989 when the Japanese economy was the world’s envy.
Music streamer LiveOne was the second-best performing music stock of the week after its shares jumped 17.9% to $1.71, bringing its year-to-date improvement to 22.1%. With no other music stocks posting double-digit gains, the next best performance came from Chinese music streamer Cloud Music. Its shares rose 4.1% to 90.95 HKD ($11.63) as Chinese stocks finished the week strong after hitting a five-year low in February. In an attempt to bolster the market, Chinese regulators this week established trading restrictions such as limits on short-selling and institutional investors.
Spotify shares gained another 4.0% this week to close at $256.10, bringing its year-to-date gain to an impressive 36.3% (which has added approximately $13.4 billion to its market capitalization). On Wednesday (Feb. 21), the company announced the creation of a new music advisory agency, AUX, that will connect brands with artists. The inaugural campaign matches Coca-Cola with DJ-producer Peggy Gou in what the company called “a long-term partnership that will span live concerts and events, social media content, a branded playlist, and on-platform promotional support.”
Live Nation shares finished the week up 2.2% to $95.32 and rose 2% on Friday following the company’s encouraging fourth-quarter earnings release. Morgan Stanley raised its price target from $110 to $120 in part because Live Nation said it expects double-digit growth in adjusted operating income in 2024 thanks to a busy touring schedule in its high-margin amphitheaters. “This is going to be a great year,” president/CEO Michael Rapino said during Thursday’s earnings call.
Radio broadcaster iHeartMedia was the index’s biggest loser of the week after dropping 12.5% to $2.32. The company will announce its results for the fourth quarter of 2023 on Feb. 29.