Business
Page: 279
A federal judge is refusing to alter the conditions of NBA YoungBoy‘s house arrest to let him to spend more time in the recording studio creating music, unswayed by arguments from the rapper’s attorneys that his record sales have dropped as a result of his lockdown.
Explore
Explore
See latest videos, charts and news
See latest videos, charts and news
The rapper, who is currently under house arrest while awaiting trial on federal gun charges, had argued that he needs to be able to travel to the studio to “produce the quality of music that his fans expect” – and that his label had informed him that “sales have suffered” because he had not been able to do so.
But in a ruling Monday, Judge Shelly Dick denied that request. Although she loosened restrictions to allow YoungBoy (Kentrell DeSean Gaulden) more access to mental health treatments, the judge said his request for more studio time could potentially put people in harm’s way, including the rapper himself.
“The conditions imposed on Gaulden’s pretrial release are designed to reasonably assure the safety of both Gaulden and others,” Judge Dick wrote. “Given the vague bounds of the request, and in light of the history of violence aimed at Gaulden and those around him, the court is more troubled by the threat that the proposed modification imposes on Gaulden’s safety.”
Attorneys for YoungBoy did not immediately return a request for comment.
YoungBoy was indicted by Louisiana federal prosecutors in March 2021 on charges of “felon in possession of a firearm,” after he was allegedly found with two guns during a September 2020 incident in Baton Rouge. Possessing guns would be illegal for YoungBoy since the rapper was previously convicted in 2017 of aggravated assault with a firearm.
When YoungBoy was arrested in Los Angeles on those charges, another gun was found in his car, leading to a similar case brought by California federal prosecutors. Following a three-day trial last year, YoungBoy was acquitted on that charge. But he’s still facing a looming trial in Louisiana over the original 2021 indictment.
In October, his attorneys moved to alter the terms of his pre-trial house arrest, citing the “deterioration of Mr. Gaulden’s mental health due to the long period of social isolation.” In addition to asking for more medical treatment, they warned that his career was in “jeopardy” due to his “seclusion from the fans that consume his music.” They said that “analysis” by his label (Atlantic Records) indicated that “sales have suffered due to his limited ability to produce quality recordings.”
“Music and entertainment is Mr. Gaulden’s only way of earning a living and supporting his family,” the star’s attorneys said. “Mr. Gaulden has exhausted all his options for recording in his home with a very limited production crew.”
They told the judge that YoungBoy “needs to be able to travel to and from recording studios on occasion in order to continue to produce the quality of music that his fans expect.” They also asked for the ability to “film studio music videos to promote his music.”
“No professional recording artist can survive and maintain a career without studio quality audio & video production,” YoungBoy’s lawyers wrote.
But in a response last month, federal prosecutors argued strongly against any such changes. They called the request “hopelessly vague” and warned that it “generates more questions than answers.”
“Where are the studios? Who is allowed there? Will individuals that are not allowed at his home be present at the studios? How many people will be at the studios?” prosecutors wrote in their filing. “Will the defendant’s ‘employment related’ studio activity be subject to the same time restrictions applicable to his home incarceration?
Notably, prosecutors pointed to previous statements from Atlantic Records CEO Julie Greenwald to support their point. During a hearing in 2021 over whether YoungBoy would be granted pre-trial release, Greenwald testified in court that the label would re-create a recording studio in his home to ensure that he was able to stay under house arrest rather than need to be held in jail.
“We would build a studio in the house that he would be staying to make sure he abides by the rules that he has to,” Greenwald said at the time, according to court transcripts. She said they would be “basically bringing his work environment to him” and that they “can get good recordings” from such a set up.
In their motions last month, prosecutors cited Greenwald’s testimony to undercut YoungBoy’s claims that he needed to travel to the recording studio to maintain his career.
“Given that the defendant’s work environment may be brought to him, there simply is no need for travel and participation in other undefined ‘employment related activity,’” prosecutors wrote.
Although Monday’s order denied YoungBoy’s request to change the rules themselves, the judge said he could “continue to seek Court-approval” for travel to a studio or other music-related requests on a case-by-case basis. And she granted his request for more flexibility to “attend medical appointments,” saying he could do so if they were “specifically approved in advance” by federal authorities.
YoungBoy’s trial is currently set to kick off in July 2024.
Hipgnosis Songs Fund has announced a last-second delay in publishing interim results for the six months ended Sept. 30, citing concerns over its valuation following a series of hiccups for the Merck Mercuriadis-led company.
The fund, which owns full or partial rights to the song catalogs of artists ranging from Justin Bieber, Neil Young, Bruno Mars, Jimmy Iovine, 50 Cent, Shakira, Blondie, Justin Timberlake, Lindsey Buckingham and many more, was scheduled to publish it financial results on Tuesday (Dec. 19) but now expects to announce on New Year’s Eve, according to a regulatory filing.
In explaining the delay, the Hipgnosis board said the valuation it received from an independent firm was “materially higher than the valuation implied by proposed and recent transactions in the sector,” namely two deals involving itself: a proposed $417.5 million sale of 29 catalogs to Blackstone-backed Hipgnosis Songs Capital, a price reflecting a 24.3% discount from a valuation dated March 31, and last week’s sale of 20,000 “non-core songs” to an undisclosed buyer for $23.1 million, which it said reflects a 14.2% discount on the songs’ valuation as of early fall.
Due to the disparity between the independent valuation and the “implied” one tied to recent trends and proposed sales, the board sought advice from its in-house investment advisor, Hipgnosis Song Management Limited, which delivered a “heavily caveated” opinion that led to the board’s concerns as to the valuation of HSF listed in the interim results scheduled to be disclosed today.
Hipgnosis is comprised of three companies: Hipgnosis Song Management, Hipgnosis Songs Capital and Hipgnosis Songs Fund. The latter of the three has been mired in controversy in recent months after it was announced that the London-listed trust would not pay its investors a dividend because of new, lower projections for revenue. On Oct. 26, investors of the fund overwhelmingly demanded structural changes to the music rights company, with more than 80% of Hipgnosis investors voting in favor of the board drawing up “proposals for the reconstruction, reorganization or winding-up of the company to shareholders for their approval within six months.”
Last month the company announced that the fund will not declare dividends before the new fiscal year, which begins next April, in order to ensure it has enough on its balance sheet to pay contractually-mandated catalog bonuses.
Investors are still processing the news, with the company’s stock only slightly down, roughly 2%, in mid-day trading on the London Stock Exchange.
Groundbreaking Los Angeles-based disc jockey Jim Ladd, whom Tom Petty & The Heartbreakers immortalized in their 2002 song “The Last DJ,” died suddenly Sunday of a heart attack. He was 75.
A Los Angeles fixture, Ladd worked up and down the Los Angeles radio dial, including stints at KNAC, KMET and KLOS. He was considered the last freeform DJ in the country, allowed to pick his own song selections.
After leaving KLOS in 2011, he was quickly picked up by SiriusXM’s Deep Tracks channel, where he appeared until his death. Over the decades, he was well known for his interviews with such artists as John Lennon, Pink Floyd, Stevie Nicks and Led Zeppelin.
The Doors drummer John Densmore paid tribute to Ladd on social media, posting on X, “’The Last DJ’ has crossed the tracks. There wasn’t a more soulful spinner of music. The songs he played were running through his blood, he cared so much for rock n’ roll. Irreplaceable… a very sad day, which can only be handled by carrying his spirit forward.”
Densmore’s Doors bandmate Robby Krieger also posted, “Rest in peace, Jim Ladd. He was the best friend in radio The Doors ever had. Even when people forgot about us in the late ‘70s, he kept playing our music.“
Ladd started his career at Long Beach, Calif.’s KNAC in 1969 as FM radio was burgeoning and quickly established himself as one of Southern California’s leading rock voices. In an undated interview with Michael Simone, he said of his mentors and being at the forefront of FM radio, “We were inventing this thing as we were going along, so what I would say in radio [for role models], it is pretty much everybody that I’ve worked with that I’ve learned from or borrowed from. … As far as role models in my life, Martin Luther King would be one, and certainly when I was growing up, John Lennon and Jim Morrison were two others who had a great influence on me, as well as [Roger] Waters.”
Waters and Ladd had a long friendship, with Ladd playing a rebel DJ on Waters’ 1987 Radio K.A.O.S. album and touring with Waters on the Radio K.A.O.S. On the Road outing.
From KNAC, Ladd moved to KLOS in 1971 and then had stops at Los Angeles stations KMET, KMPC and KLSX before returning to KLOS in 1997, where he stayed for 14 years. As Billboard reported in 2011, when he was let go from KLOS after Cumulus bought the station, he signed off with Pink Floyd’s “Shine On Your Crazy Diamond.”
Ladd inspired “The Last DJ” song, which Petty told journalist Jim DeRogatis was “about a DJ who becomes so frustrated with his inability to play what he wants that he moves to Mexico and gets his freedom back.”
Flowers will be placed on Ladd’s star on the Hollywood Walk of Fame at 11 a.m. on Tuesday. He received his star in 2005. “His legendary voice and unparalleled contribution to the world of radio have left an indelible mark on the industry,” Ana Martinez, producer of the Hollywood Walk of Fame star ceremonies, stated in a statement. “Jim’s passion for music and his unique ability to connect with his listeners will always be remembered fondly.”
SiriusXM is airing tributes to Ladd, who is survived by wife Helene, on Deep Tracks as well as other classic rock channels.
Bridgeport Music is conducting an audit of the Mechanical Licensing Collective (The MLC), according to the Federal Register. Bridgeport, which represents the interests of George Clinton and Funkadelic, is best known for its bullish approach to copyright enforcement, once accusing more than 800 artists and labels of infringement in one lawsuit in the early 2000s. […]
When Frances Moore started in the Brussels office of The International Federation of the Phonographic Industry (IFPI) in 1994 as regional director for Europe, the trade organization represented six major labels that made most of their money selling CDs – and mostly in Europe and the U.S. When she retires at the end of this year, she will leave a business with three majors that’s truly global and focused on streaming. In between, Moore scored some of the key policy wins that made that happen, especially since ascending to the top job in 2010. She also transformed IFPI into a global force and served longer as CEO than any of her predecessors.
Moore started just as the major labels and other media companies began pushing for laws to protect digital content – an effort that ultimately resulted in the 1998 Digital Millennium Copyright Act in the U.S., and the 2001 Copyright and Information Society Directive in the European Union. One of her major achievements was IFPI’s passage of the 2019 copyright directive that addressed some of its shortcomings by tightening up some of the safe harbor rules that created a “value gap” between what rightsholders made from licensed services like Spotify and what they got from user-upload-fueled services like YouTube. In between, she led IFPI efforts to extend the term of copyright protection for recordings in Europe and establish a public performance right for recordings in China, plus strengthened IFPI’s operations in markets that barely existed when she started at the organization three decades ago.
You announced in July that you would retire at the end of the year, but some executives can’t quite picture that – you have a reputation for working extremely hard. What are your plans?
I can’t really picture me retiring, either! Come the first of January, I’ll tell you the answer. I’ll take a rest at the beginning and see what happens afterwards.
You’re leaving an organization that’s much more international than the one you joined in 1994.
When I joined, the two big markets were Europe and the U.S., and the bulk of the industry’s revenues came from those two places – the other territories were much smaller. But IFPI was always an international organization: There was already an office in Hong Kong and two small offices in China, so it was more a question of how you brought everyone together.
You started in Brussels and played a major role in building up the organization there.
There was a Brussels representation [when I started] but they didn’t really have U.S. [style] lobbying and that’s what I brought to build a campaign for the [2001] copyright directive. Back in the ‘90s, Europe had a lot to learn about lobbying. I remember suggesting to one of the major national groups that they bring in a lobbyist and they were shocked. It was as if I had suggested bringing in a lady of the night. Lobbying wasn’t seen then as a clean profession.
You started at IFPI right before the first copyright directive and one of your big accomplishments as CEO was to get the 2019 copyright directive passed. That was supposed to address some of the issues with the first one, but the implementation of it in different EU countries has varied. How do you see that?
For the first copyright directive, we built something at the European level that we never had before – we had 32 organizations working together from books, film, music, you name it. In implementing the WIPO treaty, we had a good, strong directive that let companies go online with confidence. When it came to the second one, the issue was what we called ‘the value gap’ [the difference between what it cost companies to license content and how little some of them were paying to use it]. Companies were doing deals with one hand tied behind their back. That was a hard campaign to fight, not because of the arguments – people could see that – but because we had huge opponents. Now some of these companies we work with and they’re a part of the success of the music industry. But as far as EU Parliament, they said this was the hardest-fought campaign they ever had to deal with. Luckily, they came through in the end.
In theory, you got what you needed. But the directive was implemented quite poorly in some countries, especially Germany.
There are 27 countries and there’s one that hasn’t implemented it yet – Poland. But Donald Tusk [who became Polish Prime Minister on December 13], will make sure it’s implemented. In most countries, it has been done faithfully. In Germany and in Belgium, we had problems and we’re taking it to court. But it was a signal more than anything else. To some degree, once it was adopted, the tech companies realized that they had to do what it was asking for.
What do you consider your biggest accomplishment?
I think my biggest accomplishment was putting together an A-level team. I don’t like the cult of personality – everything we do, we do as a team.
Your job is like herding cats – there are the national recording business organizations and the major labels – now small, medium, and large. It’s a very tough act to follow.
The job isn’t to be an expert in legal policy – the job is to hold the ball tight and keep running forward. There’s a global search [for a successor] and I think we’ll be able to announce the person shortly, and I wish that person all the best. The most important thing is that the companies speak with one voice – then everything else becomes easier.
Frances Moore and Taylor Swift
Dave J Hogan/Getty Images
You’ve had support on policy issues over the years from some very famous artists. Did you ever get starstruck?
I’m a Scottish rationalist – I don’t do starstruck. We have this program, Friends of Music, when artists come to the Parliament and they perform, and it moves you. I remember Jamie Cullum was performing in Strausberg [Germany] and at one point he stopped playing on the keys of his piano and just strummed on the wood. It was pure music. I don’t get starstruck but I get impressed beyond belief with talent.
You are leaving an organization that’s much more diverse than the one you joined in 1994. For example, you have women regional directors in Sub-Saharan Africa, the Middle East and North Africa (MENA) and Latin America. Was that a priority for you?
That was the state of the world [in 1994] – it wasn’t just the recording industry. In my case, there was never a point of saying I’m going to recruit a woman – you can only put together an A-level team if you choose the best candidates. We have six regional teams, and three are led by men and three are led by women. That’s balanced but not deliberately balanced – it just worked out that way.
What’s going to be the most important priority for your successor?
AI, because if you don’t get it right, it could decimate the industry. That’s the big one. There are some technology companies saying that there are text and data mining exceptions and we fit in there, so we don’t have to respect copyright. Wrong.
The European Union is looking into whether Elon Musk’s online platform X breached tough new social media regulations in the first such investigation since the rules designed to make online content less toxic took effect.
Explore
Explore
See latest videos, charts and news
See latest videos, charts and news
“Today we open formal infringement proceedings against @X” under the Digital Services Act, European Commissioner Thierry Breton said Monday in a post on the platform formerly known as Twitter.
“The Commission will now investigate X’s systems and policies related to certain suspected infringements,” spokesman Johannes Bahrke told a press briefing in Brussels. “It does not prejudge the outcome of the investigation.”
The investigation will look into whether X failed to do enough to curb the spread of illegal content and whether measures to combat ” information manipulation,” especially through its crowd-sourced Community Notes fact-checking feature, were effective.
The 27-nation EU also will examine whether X was transparent enough with researchers and will look into suspicions that its user interface, including for its blue check subscription service, has a “deceptive design.”
“X remains committed to complying with the Digital Services Act, and is cooperating with the regulatory process,” the company said in a statement. “It is important that this process remains free of political influence and follows the law. X is focused on creating a safe and inclusive environment for all users on our platform, while protecting freedom of expression, and we will continue to work tirelessly towards this goal.”
A raft of big tech companies faced a stricter scrutiny after the EU’s Digital Services Act took effect earlier this year, threatening penalties of up to 6% of their global revenue — which could amount to billions — or even a ban from the EU.
The DSA is a set of far-reaching rules designed to keep users safe online and stop the spread of harmful content that’s either illegal — such as child sexual abuse or terrorism content — or violates a platform’s terms of service, such as promotion of genocide or anorexia.
The EU has already called out X as the worst place online for fake news, and officials have exhorted owner Musk, who bought the platform a year ago, to do more to clean it up. The European Commission, the EU’s executive arm, quizzed X over its handling of hate speech, misinformation and violent terrorist content related to the Israel-Hamas war after the conflict erupted.
Every time Taylor Swift shows up in Kansas City, people eat more donuts.
Last July, Donutology’s two stores in the city made 20,000 donuts in a single weekend after marketing “Tayl-gating” 30-packs, including Lavender Glazes and Caramel Is a Cat bismarcks, to meet the demand of 74,000 Swifties at two Arrowhead Stadium concerts. The stores hastily hired former employees for around-the-clock frying and assigned their marketing director, Abby Meyer, to help in the packaging department. “It hasn’t really died since then,” Meyer says.
Unlike other U.S. cities on last summer’s Eras tour, Kansas City’s Swiftie boom continues, thanks to the singer’s high-profile presence in the city this fall with her boyfriend, Travis Kelce of the NFL’s Chiefs. And Donutology isn’t the only one cashing in on the buzz: Local businesses such as clothing shops Westside Storey and Made In KC and restaurants Piropos and Prime Social have significantly boosted their sales, social-media views and website traffic over the past few months.
“We can’t attach a number to it,” says Tim Cowden, president/CEO of the Kansas City Area Development Council. “It’s an incredible opportunity that she is providing our region.”
According to the city’s Economic Development Council, Eras tickets across the United States sold at an average price of $1,200, so the Kansas City shows generated $88.8 million in revenue. Additionally, Swifties bought $1,300 to $1,500 worth of meals, merch and other goods throughout the tour, and for Kansas City, that amounted to an overall financial impact of $185 million to $200 million. Then, after Swift’s widely viewed appearance last Sunday in a vintage Chiefs sweatshirt during the team’s game against the Green Bay Packers, Westside Storey, which sold her the item, landed an unprecedented 100 online orders in the two or three days after the game, according to the store’s owner, Chris Harrington.
“It’s quite insane,” says Harrington. “It’s just driven traffic like we’ve never had before. We’re waiting to see when it ends.”
Piropos, the Argentine restaurant where Swift and Kelce had a Kansas City dinner date in late October, reports a similarly massive word-of-mouth reaction. “We didn’t put up any sign. People just called us,” says Cristina Worden, the restaurant’s owner. “We got more reservations, we have more commentary. It’s been great for every business.”
The Eras-related sales spike in Kansas City took Keith Bradley, co-owner of the 11-store gift-and-apparel chain Made In KC, by surprise. Ticketholders streamed into town, buying apparel, jewelry, candles and hats, and the stores scrambled to adapt by launching Swift-themed drinks and friendship bracelets. Nearly three months later, when Swift attended her first Chiefs game, “it felt like that was a new wave,” Bradley says, adding that his shops’ most popular holiday-season products are “anything Taylor and Travis,” such as candles and T-shirts.
The Swift-Kelce romance is a feel-good, fast-moving story and a “buzzworthy partnership,” as Katie Essing, a University of Missouri assistant teaching professor of marketing, describes it — which allows brands to attach themselves for exposure without fearing backlash or consequences. After Swift publicly ate chicken fingers with ketchup and what appeared to be ranch dressing at a Chiefs game in late September, KFC referred to Swift on social media as its “Ranch Queen” and Heinz launched a new flavor called Ketchup and Seemingly Ranch. “Brands having anything to do with ranch could jump on social media,” Essing says. “And that’s what we see happening with the brands in the Kansas City area with this relationship.”
The Eras Tour was so huge — grossing $900 million plus, with 63,000 ticket sales per show, or 3.3 million overall, according to Billboard estimates — that officials and businesses in host cities had to be asleep to not take advantage of the marketing opportunities. Tampa named Swift “honorary mayor”; Las Vegas lit up its Gateway Arches in colors representing all of her albums; and Seattle’s Japonessa Sushi Cocini racked up $10,000 in sales of “Reputation” sushi rolls and cocktails packed with glitter. But only Kansas City has extended its Swiftie effect beyond Eras.
Kansas City mayor Quinton Lucas says the NFL Draft in April, which reportedly drew 312,000 attendees and generated $164.3 million, led to “flack” from some local businesses. (Owners complained about street closures, excessive traffic and high parking costs that kept regular customers away.) “Taylor Swift was the opposite — for almost no municipal investment, we’re getting a heck of an investment,” he tells Billboard. “Any mayor would love to have Taylor Swift just start randomly coming to their city. This is great for our economy. It’s great for our culture. It’s great for letting people know we have this dynamic city. Life kind of sucks, so it’s nice to just see two happy people enjoying life.”
SiriusXM’s announcement that it planned to merge its stock with Liberty SiriusXM Group, a tracking stock of Liberty Media, helped the SiriusXM share price climb 16.4% to $5.40 this week after it lagged for much of 2023. Friday’s high mark of $5.78 nearly brought the stock back to where it ended 2022, at $5.84 per share.
The deal, which requires regulatory approval and is expected to be completed in the third quarter of 2024, “will create value for all stockholders by eliminating the tracking stock structure, enhancing liquidity and allowing former LSXM stockholders to participate directly in the ongoing performance of SiriusXM,” said Greg Maffei, Liberty Media president/CEO, in a statement released Tuesday (Dec. 12).
Elsewhere, Live Nation climbed 9.2% to $93.00 this week thanks in part to an investor note by Morgan Stanley analysts that raised the price target to $110 from $100. Analysts pointed to a “secular shift” in consumer spending on experiences, the company’s increased disclosure about its Venue Nation business and a “highly unlikely” chance the Department of Justice will break up the company following its antitrust probe. Morgan Stanley’s $110 price target implies the stock, which is up 33.4% year to date, has 18% upside after Friday’s close.
Those big gains from SiriusXM and Live Nation, as well as a 4.1% gain from Universal Music Group, one of the index’s most valuable components, helped the Billboard Global Music Index increase 2.2% this week to a record 1,522.78. Nine of the index’s 20 stocks finished the week in positive territory, 10 stocks lost ground and one was unchanged.
Other indexes soared this week after the U.S. Federal Reserve held interest rates unchanged on Wednesday (Dec. 13) and indicated it would cut interest rates three times in 2024. The tech-heavy Nasdaq composite set a record closing price of 14,813.92 on Friday, marking a 2.8% gain for the week. The S&P 500 is still 2% away from its high mark after finishing the week up 2.5% to 4,719.19. In the United Kingdom, the FTSE 100 rose 0.3% to 7,576.36. South Korea’s KOSPI composite index gained 1.8% to 2,563.56.
The Billboard Global Music Index’s second-largest increase came from Reservoir Media, which gained 15% to $6.82. The stock’s $6.89 closing price on Thursday was its highest since $7.06 on Feb. 16 and is 31.4% above its 52-week low of $5.19 set on Aug. 10. Chinese music streamer Tencent Music Entertainment gained 8.0% to $8.88.
Hipgnosis Songs Fund gained 4.9% to 0.701 pounds ($0.89) after the company announced on Monday (Dec. 11) the sale of 20,000 non-core music assets for $23.1 million. The proceeds will be used to pay down its revolving credit facility. On Friday, the company also announced the appointment of Christopher Mills as an independent non-executive director effective immediately. Mills, who has a reputation as an activist investor, is CEO/investment manager of North Atlantic Smaller Companies Investment Trust and founded Harwood Capital Management in 2011. Following the news, Hipgnosis Songs Fund shares rose 2.3% on Friday.
Music streaming company Anghami dropped 30.4% to $0.94, bringing its three-week decline to 66.5%. Other than Anghami, however, no other stock finished the week with a loss greater than 5%. iHeartMedia fell 4.9% to $2.52 and MSG Entertainment dropped 3.2% to $31.16.
The concert business has had a record year in 2023 — tours by Taylor Swift and Beyoncé were pop culture moments, festivals roared back to life and consumers’ splurging on tickets seemed to defy gravity. There’s likely more good news on the horizon, too. By all forecasts, next year is shaping up for continued success, even as consumers still feel pinched by inflation.
Among the big names to announce stadium tours next year are The Rolling Stones, Foo Fighters, Green Day and a pairing of Journey and Def Leppard. Chris Stapleton, Zach Bryan and Luke Combs will hit both stadiums and arenas. Drake, Bad Bunny, Thirty Seconds to Mars, Hootie & the Blowfish, New Kids on the Block, Alanis Morissette and The Trilogy Tour featuring Enrique Iglesias, Ricky Martin and Pitbull will play arenas and amphitheaters. Taylor Swift’s The Eras Tour continues in 2024, too, with 85 shows announced for Asia, Australia and North America.
Advanced ticket sales suggest consumers remain eager to see their favorite artists perform live. Through mid-October, Live Nation’s event-related deferred revenue — from ticket sales to events that had not yet occurred — was up 39% year over year, according to the company’s third-quarter earnings release.
AEG Presents, the second-largest promoter, is “feeling really positive” about 2024 tours across all venue sizes and genres, says Rich Schaefer, president of global touring. “I think people are discovering new artists and want to see big shows — and they’re willing to pay for it.” They’re buying well in advance, too: AEG put tickets on sale for 76 Zach Bryan shows in 2024 — some won’t happen until December — and has “largely sold everything out,” says Schaeffer. “That artist especially has a crazy connection with his fans. They’ve seen videos of what his shows are like, and I think everybody wants to experience it.”
Those big tours — and thousands of others — are counting on consumers to continue to open their wallets despite continued high prices for staples and living expenses, rising debt delinquencies and Americans’ credit card debt reaching a record level in the third quarter. The holidays are presenting mixed signals: Black Friday spending was up 2.5% compared to 2022, but numerous surveys have found consumers plan to spend less on gifts this year.
Consumers may feel beleaguered, but they continue to spend to see their favorite artists perform live. “I have weekly booking calls with the over 40 presidents around the world and we talk booking clubs up to stadiums and festivals, and we have not seen anything taper off in any sense,” said Live Nation CEO Michael Rapino during the company’s Nov. 2 earnings call. The company is “not seeing any pullback in any way” in consumer demand regardless of the region or venue size, he added.
A big question, though, is whether consumers will be in a spending mood throughout 2024. A new Goldman Sachs economic outlook report says the U.S. economy today is better than was expected a year ago, inflation will continue to subside and the likelihood of a recession in 2024 is “limited.” The latest data from the University of Michigan is encouraging: U.S. consumer sentiment soared in December and people’s expectations for year-ahead inflation dropped to 3.1% from 4.5% last month.
Whatever uncertainties exist — including falling savings rates and weakening credit conditions — have not materialized in ticket sales thus far. “We certainly see the headlines [about macroeconomic conditions], but it’s not flowing through to numbers that we can see,” Lawrence Fey, CFO of secondary ticket marketplace Vivid Seats, said during a Nov. 7 earnings call.
One could simply look at who’s touring in 2024 to get a sense of where ticket buyers are thinking. “You got The Stones going on the road in parts in North America,” says Doug Arthur of Huber Research Partners. “They’re always a pretty big draw. The Stones are pretty savvy historically about touring when they think the economics support it.”
Consumers’ willingness to spend increasing amounts on live music isn’t a new trend — although some of 2023’s record-setting box office numbers appear to be the result of music fans may be clamoring for live events in after suffering through pandemic-era restrictions. The concert industry has benefited from a lasting shift among consumers from goods to experiences over the last 10 to 15 years, says Brandon Ross, an analyst with LightShed Partners.
This year’s boffo box office numbers weren’t outliers, and Ross expects to see “outsized performance on a global basis” in 2024. “There has been a year-and-a-half long concern for a broader pullback in consumer spending,” says Ross. “I don’t think will not impact growth, but I think there’s substantial tailwind supporting this industry.”
Those tailwinds probably won’t be strong enough for next year’s touring business to duplicate 2023’s stellar growth rate — but no one seems to be expecting that. “I don’t think you’re talking about another up 30% type of year, and I don’t think [Live Nation is] talking about that either,” says Arthur. “But can the concert revenues be up high single digits between volume, fans per show, price per ticket and spending per fan? Yeah, I think that’s not unreasonable at all.”
Artists and promoters will continue to encounter high costs in 2024 — labor, catering, buses and staging are stretched thin with a high number of big tours on the road. That’ll continue to push ticket prices up. Even so, AEG hasn’t seen resistance to higher prices, says Schaefer. “There’s very few instances where we think that pricing is responsible for tickets not selling.”
Warner Chappell Music has signed Mick Jones, founding member of Foreigner, to a global publishing deal. Foreigner’s recorded music is already being looked after by Warner’s Rhino Entertainment, so this deal unites publishing and records for Jones under one roof.
Explore
See latest videos, charts and news
See latest videos, charts and news
Barry Weiss, CEO/co-founder of RECORDS and RECORDS Nashville, has announced his publishing company Bossy Songs, which was formerly called TwentySeven Music Publishing. Like RECORDS, Bossy Songs is a venture in partnership with Sony. Their first signing is Dan Gleyzer, a songwriter and producer behind songs from BTS and Meghan Trainor.
In honor of the 30th Anniversary of Snoop Dogg’s seminal album Doggystyle, Death Row Pictures has partnered with Extreme Music — a production music library associated with Sony Music Publishing — to create Death Row Pro. Together, the two will aim to deliver a mix of unheard tracks from the Death Row vaults. It will also aim to create new songs “fueled by the iconic Death Row DNA.”
Warner Chappell Music‘s U.S. Latin team has signed Gabito Ballesteros to an exclusive publishing administration agreement. A breakout star in Mexico’s thriving music scene, he has worked with acts like Peso Pluma, Becky G, Piso 21, Fuerza Regida, Miguel Cornejo and Natanael Cano.
Warner Chappell Music has signed Jay Versace to a global publishing agreement. A producer behind SZA’s “SOS,” Lil Yachty’s “Lil Diamond Boy,” Tyler, the Creator’s “Safari” and many more, Versace says he is “very honored to create amongst such talented and inspiring creatives” at WCM.
300 Publishing has signed Sean Momberger to a global publishing deal. Momberger is best known for his work on Jack Harlow’s “First Class” as well as other hits for Doja Cat, Justin Bieber and Chris Brown. He joins a roster that also includes 1st Class and Jumbo Sounds as well as artists like Hunxho and Young Thug.
UMPG has signed a new global publishing agreement with Mónica Vélez. With multiple Latin Grammys to her name, Vélez is best known for her work on songs like “Ataúd” by Los Tigres del Norte and “Mientes” by Camila.
Reservoir has signed Vulfpeck’s Theo Katzman to a global publishing deal. This is Katzman’s first-ever publishing deal and includes his entire catalog and future works outside of his compositions made with Vulfpeck. He also has a solo artist project and has written songs with artists like Carly Rae Jepsen, Rett Madison, Kesha, Teddy Geiger and Louis Cato.
Regalias Digitales, an independent music publisher that specializes in both Latin and non-Latin music, has signed a number of new talents — ranging from reggae to hard rock — to global publishing administration deals. They include The Warning, Akwid, Pikete Opacalo, Branden Cox, Lil Gnar, J Swey, The Reverend Horton Heat, The Slackers and Passafire.
Downtown Music Publishing has signed Josh Ramsay, the songwriter behind Carly Rae Jepsen’s “Call Me Maybe,” to a global publishing administration and creative services deal. This includes Ramsay’s back catalog of hits, including other major songs for Nickelback, 5 Seconds of Summer and Faber Drive.
Warner Chappell Music has signed pop songwriter Sam Backoff to a global publishing deal. The Nashville-based writer has written with Graham Barham, Ben Johnson, Jessie Murph, Ernest, Beau Bailey, Karley Scott Collins, KK Johnson, Zoe Clark, Carson Wallace and Savana Santos. The deal was made in partnership with Underscore Works’ Charly Salvatore.
Kobalt has signed actor and composer Tituss Burgess to a worldwide publishing administration agreement. The deal includes the works from his artist projects and his musical The Preacher’s Wife, which will debut at Atlanta’s Alliance Theater in Spring 2024.
Innercat Music Publishing and UMPG Latin recently hosted a three-day synch songwriting camp at InnerCat Studios in Miami. The camp included a mix of writers signed to both companies, including writers traveling from Colombia, Mexico and Los Angeles.