Business
Page: 285
Vinyl Group now has a fourth pillar.
Following the completion of its acquisition of The Brag Media, the Sydney-based music and tech specialist doubles-down on its mission to build revenue and integrate its new asset.
As previously reported, the transaction is funded with a new investment by billionaire WiseTech Global founder and CEO Richard White, by way of an A$11 million ($7.5 million) placement and debt facility, uniting the only music specialist company listed on the Australian Securities Exchange (ASX) with the market leader in premium youth content and events.
Explore
Explore
See latest videos, charts and news
See latest videos, charts and news
“Our real mission or vision that we all have in the company is to empower and power all facets and parts of the music ecosystem,” Vinyl Group CEO Josh Simons tells Billboard.
When the group, previously known as Jaxsta, prior to a rebrand in early December, spotted an opportunity with The Brag Media, “we also knew that the company was going to evolve into more of a portfolio music company,” Simons continues.
Prior to the purchase, Vinyl Group’s portfolio was built on the three pillars of its music credits business Jaxsta; the leading music industry social-professional network and talent marketplace Vampr; and Vinyl.com, the online record store. The Brag Media, with its range of titles including Rolling Stone AU/NZ, Variety Australia, Tone Deaf and trade title The Music Network, is its fourth pillar.
Vinyl.com is a “very fast growing ecommerce platform, it speaks to the fan,” Simons continues, “but a huge part of connecting the dots here is connecting fans as creators, and media and events and everything that The Brag does, fills that gap.” When the opportunity came across the table, and “when we knew what direction they were boldly headed in, it made a lot of sense and got us excited very quickly.”
The amalgamation of both business presents “some really obvious low hanging synergies,” he explains, pointing to sales synergies between Vampr and The Brag Media as one example, “but broadly speaking, it plugged a hole in this broader flywheel of servicing all participants in the music ecosystem.”
People, product and process – “that’s really always my focus,” explains Simons.
The co-founder of Vampr, Simons was elevated from chief strategy officer to CEO in June 2023, succeeding Beth Appleton, who stepped down as CEO with immediate effect.
“Revenue, cost efficiency and profitability remain the top priorities for Jaxsta,” Simons commented at the time of his ascension, “and I look forward to building on the current momentum.”
The agenda remains the same.
“The headline KPI was four quarters of consecutive revenue growth and moving towards profitability,” Simons says. “Under my tenure, we’ve released three quarters of performance. And in each quarter, we’ve averaged 204%, quarter over quarter.” The Brag deal “turbo charges that”.
The completion of the acquisition was confirmed with a statement Feb. 1, when stock was trading at $0.063. At the close of trading today (Feb. 8), VNL stock was trading at $0.066, for a market cap of $41.73 million.
Prior to the deal going through, The Brag Media bolstered its executive team with a triumvirate of appointments. Dane Robertson returned to the company in the newly-created role as head of client and event partnerships in Australia and New Zealand, following a stretch at media firm Pedestrian Group. Also, Denise Barnes joined as client projects director following six-plus years with lifestyle site Man of Many, most recently as head of branded content, and Anan Salvarinas joined the team as senior creative strategist, following two-and-a-half years with LADbible Australia, including a recent run as senior creative (brand).
This year is an “important” one for the business “as we focus on integrating The Brag Media into Vinyl Group’s properties as well as continued strong growth of our technology products,” explains Simons in the Feb. 1 statement to the ASX. “We now have a very clear path to profitability.”
Warner Music Group (WMG) revenue reached a record $1.75 billion from October through December, the company announced Wednesday (Feb. 7). That’s up 17.5% from the prior-year quarter (up 15.9% at constant currency), as both the recorded music and publishing divisions posted their best-ever quarterly revenues.
With Spotify and other streaming services having raised prices in 2023, WMG’s digital revenue increased 16% and streaming revenue grew 16.6%. The company also posted gains in physical sales, licensing revenue and music publishing performance royalties, though the company saw declines in recorded music artist services and expanded rights revenue. Net income rose 55.6% to $193 million and operating income improved 33.6% to $354 million.
“These results reflect the impact of our chart-topping artists, hit-making songwriters, iconic catalog, and laser focus on execution by all our teams,” CEO Robert Kyncl said in a statement. “As we deliver our plan to accelerate our growth, we are becoming more efficient, increasing operating leverage, and freeing up more funds to invest in music and tech, which in turn will drive further sustainable growth.”
Moments after WMG released the quarter’s results — an earnings call will take place Thursday morning (Feb. 8) — news broke that the company will eliminate its staff by 10%, primarily through the sale of owned and operated media companies such as Uproxx and HipHopDX. The company will also eliminate its in-house ad sales function and plans to wind down its podcasting brand, The Interval, as well as social media publisher IMGN. The reductions will free up $200 million in cost savings that can be reinvested elsewhere, Kyncl wrote in a memo to staff obtained by Billboard.
WMG shares were up 6.4% to $36.19 in after-hours trading following the late afternoon release of earnings results and staff reductions.
Excluding three extraordinary items, WMG’s revenue growth was 12.1% (10.6% at constant currency). A previously disclosed licensing agreement extension for an artist’s catalog added $68 million of revenue and a digital licensing agreement renewal added $27 million to the quarter. The termination of a distribution agreement with BMG resulted in $13 million less revenue than the prior-year quarter.
Recorded music revenue improved 16.6% to $1.45 billion on the success of Zach Bryan, Bruno Mars, the Barbie soundtrack and Jack Harlow, whose track “Lovin on Me” first reached No. 1 on the Billboard Hot 100 singles chart in December and recently spent its fourth non-consecutive week atop the chart dated Feb. 3. The segment’s digital revenue grew 13.1% to $908 million while physical revenue climbed 15.8% to $154 million. Licensing revenue jumped 84.5% to $179 million.
Music publishing revenue grew 21.6% (19.7% at constant currency) to $304 million thanks to a 32.2% improvement in streaming revenue and a 31.5% gain in digital revenue. Mechanical royalties — which are tied to downloads and physical purchases — rose 7.1% to $15 million. Publishing’s synch revenue was flat at $39 million as lower commercial licensing activity in the United States was offset by the timing of some legal settlements.
WMG’s margins improved nearly across the board in the quarter. Company-wide, the company’s operating margin rose 2.5 percentage points to 20.3% and its adjusted operating income before depreciation and amortization (OIBDA) margin rose 3.3 percentage points to 25.8% (and was flat excluding BMG’s termination, the license extension and digital license renewal). Recorded music’s adjusted OIBDA margin rose 4.4 percentage points to 28.5% and its operating margin improved 3.1 percentage points to 25.9%. The publishing division’s operating margin rose 1.1 percentage points to 20.7% while its adjusted OIBDA margin declined 0.5 percentage points to 28.3%, due primarily to the impact of exchange rates.
Warner Music Group announced Wednesday (Feb. 7) that its quarterly revenue grew 17% for the period ended Dec. 31, 2023, up 11% in normalized revenue, to $1.75 billion, its highest quarterly mark ever, ahead of its earnings call Thursday. At the same time, CEO Robert Kyncl announced in an internal memo to staff obtained by Billboard that the company will be reducing its workforce by 10%, or some 600 people, as part of a plan to free up $200 million in cost savings to reinvest into the company.
Much of that workforce reduction, Kyncl wrote, will come in the form of Warner’s owned and operated media properties — such as Uproxx and HipHopDX, which it acquired in August 2018 — as well as in corporate and support roles. “Earlier today, we began exiting our O&O media properties, as well as our in-house ad sales function,” Kyncl wrote. “These are dynamic platforms, but they operate outside our core responsibilities to our roster. We’re in an exclusive process for the potential sale of the news and entertainment websites Uproxx and HipHopDX, with more to say on that soon. After a thorough exploration of alternatives, we’ve decided to wind down the podcasting brand Interval Presents and social media publisher IMGN.”
Kyncl further added that Warner is making the move from “a position of strength,” noting that the company currently has five of the top 10 songs on the Hot 100, “and that’s the smart time to change, innovate and lead. Music is constantly morphing, so we need to morph with it.”
That $200 million in cost savings will be realized by the end of September 2025, Kyncl said in the memo; some of those laid off have already begun to be informed, while the “vast majority” will be notified “by the end of September 2024,” he writes.
“As we carry out our plan, it’s important to bear in mind why we’re making these difficult choices,” the memo continued. “We’re getting on the front foot to create a sustainable competitive advantage over the next decade. We’ll do so by increasing funding behind artists and songwriters, new skill sets, and tech, to help us deliver on our three strategic priorities,” which he says includes growing engagement with music, increasing the value of music and evolving how Warner’s teams work together.
Read Kyncl’s full note to staff below.
Hi everyone,
We just finished our first All Hands of 2024 from LA.
This is a pivotal moment in the evolution of this great company, so I wanted to make sure you heard about it directly from me. As I outlined in my note last month, 2024 is a year during which we will double down on our core business and move at an increased velocity to seize the incredible opportunities for music in the new world.
This week, our recording artists make up five of the top 10, and our songwriters have six of the Top 10, on the Billboard Hot 100. Today, we’re revealing our latest quarterly results: we grew 11% in normalized revenue. And with growing momentum in Recorded Music streaming and excellent results in Music Publishing, we hit our highest quarterly revenue ever. We’re in a position of strength, and that’s the smart time to change, innovate, and lead. Music is constantly morphing, so we need to morph with it.
Today, we’re announcing a plan to free up more funds to invest in music and accelerate our growth for the next decade. To do that, we have to make thoughtful choices about where we put our people, resources, and capital. So, as part of that plan, we’ll be realizing approximately $200 million in annualized cost savings by the end of September 2025. The majority of these savings will be reinvested, putting more money behind the music.
Our plan includes reducing our workforce by approximately 10%, or 600 people – the majority of which will relate to our Owned & Operated media properties, corporate and various support functions.
We’ve already begun to inform many of the impacted employees, and the vast majority will be notified by the end of September 2024. I recognize this is unsettling news. To the people who will be leaving us: you deserve a heartfelt thank you for your hard work and dedication. We’re fortunate that you’ve been part of the team. We’ll be moving as thoughtfully and respectfully as possible, so you have the critical information you need, and we’ll support you through this transition.
Earlier today, we began exiting our O&O media properties, as well as our in-house ad sales function. These are dynamic platforms, but they operate outside our core responsibilities to our roster. We’re in an exclusive process for the potential sale of the news & entertainment websites Uproxx and HipHopDX, with more to say on that soon. After a thorough exploration of alternatives, we’ve decided to wind down the podcasting brand Interval Presents and social media publisher IMGN. Maria and I continue to discuss the ongoing evolution of WMX, and how best to further improve our services to artists and labels, and she’ll update the team in the coming weeks.
As we carry out our plan, it’s important to bear in mind why we’re making these difficult choices. We’re getting on the front foot to create a sustainable competitive advantage over the next decade. We’ll do so by increasing funding behind artists and songwriters, new skill sets, and tech, to help us deliver on our three strategic priorities:
Grow the engagement with Music
Discovering and developing artists and songwriters is at the heart of everything we do. We’ll turbocharge our efforts and investments, with additional focus on high growth geographies and vibrant genres, as well as using our data and insights to help original talents cut through the increasing noise, and taking a holistic global approach to maximizing the potential of their catalogs.
Increase the value of Music
This is one of our industry’s largest and most complex opportunities and one that we’re working on diligently, whether it’s new DSP deal structures or building superfan experiences to help artists connect directly with their most passionate followers.
Evolve how we work together
In order to grow at an accelerated pace, we need to structure our organization so that we can grow efficiently and continue to invest more into music at the same time. That requires being intentional about where centralized shared functions make sense, versus where they are best fully dedicated. This will empower subject matter experts, while scaling our resources. We already made moves in this direction by centralizing our technology, finance and business development teams last year.
Above all, we’re positioning ourselves to be first, to be different, and to be exceptional. I – and the entire leadership team – will be keeping you updated as we make progress. In May, we’ll hold our next All Hands meeting, which we’ll devote to our best new music, as well as our most promising projects.
Thank you for your understanding, passion, and determination. We’re in an amazing industry, we’re partnered with many extraordinary artists and songwriters, and now is the time for us to pioneer the future.
Robert
Gains in recorded music and improved digital royalties helped Reservoir Media’s revenue increase 19% to $35.5 million in the fiscal third quarter ended Dec. 31, the company announced Wednesday (Feb. 7).
Strong results in the quarter allowed Reservoir Media to raise its guidance for its full fiscal year ending March 31. Guidance for full-year revenue increased from a range of $133 million to $137 million to a range of $140 million to $142 million, implying 15% annual growth at the midpoint. Adjusted guidance on earnings before interest, taxes, depreciation and amortization (EBITDA) increased from a range of $50 million to $52 million to a range of $53 million to $55 million, which would be a 16.5% year-over-year improvement. Reservoir Media also raised its guidance when it released its previous earnings in November.
The results “demonstrate our ability to manage the business and deploy capital to further grow our portfolio,” CEO Golnar Khosrowshahi said during Wednesday’s earnings call. “Along those lines during the quarter, we continued to invest in our business, with an emphasis on further diversifying our portfolio across various music genres.”
Recorded music revenues grew 32%, to $10 million, inclusive of catalog acquisitions. The segment’s digital revenue grew 26% to $6.6 million while physical revenue rose 51% to $1.7 million. Synch revenue doubled to $800,000 and neighboring rights royalties gained 16% to $1 million.
Publishing revenue dominated total revenue, though, improving 15% to $23.1 million. Publishing’s digital revenues grew 30% to $13.9 million and synch revenue gained 9% to $4 million. Performance, mechanical and other revenue fell from the prior-year quarter.
Synch revenue from both segments was affected by the writer and actor strikes in 2023, explained CFO Jim Hendlmeyer. A “very promising” ad market helped synch revenue during delays in TV and film production, he added.
The quarter was also helped by Reservoir Media’s numerous signings and acquisitions, including Theo Katzman, the founding member of Vulfpeck and a collaborator with such artists as Carly Rae Jepsen and Teddy Geiger. In December, Reservoir signed singer-songwriter grentperez, for whom it handles administration and creative aspects with its Australian sub-publisher, Mushroom Music. In October, the company signed a global publishing deal with Joe Walsh. Its last announced acquisition was the catalog of Arthur “Boogie” Smith in November.
Reservoir highlighted Grammy success for the songwriters and producers on its roster. Among the winners was best folk album winner Joni Mitchell, who signed a publishing administration deal with the company in 2021. Killer Mike, who signed with Reservoir in 2022, won in three rap categories: Best Rap Song (“Scientists & Engineers”), Best Rap Album (Michael) and Best Rap Performance (“Scientists & Engineers”). Elsewhere, Khris Riddick-Tynes’ collaboration with SZA, “Snooze,” won best R&B song and Blue Raincoat Music client Phoebe Bridgers had a hand in four awards, including best rock song, with her group boygenius.
Shares of Reservoir Media increased 6.1% to $7.26 early Wednesday morning before falling to $6.49, down 5.1%, by midday.
Kelsea Ballerini has renewed her deal with her longtime label, Black River Entertainment. Ballerini first signed with Black River in 2013; over the ensuing decade, she has earned five No. 1 hits on Billboard‘s Country Airplay chart, including “Legends,” “Love Me Like You Mean It” and the Kenny Chesney collaboration “Half of My Hometown.” Variety […]
Since Laura Gonzalez lost her job as a Spotify software engineer in December, when the streaming giant cut 1,500 employees in its third round of 2023 layoffs, she has struggled to reassert herself in a shifting music business.
As companies like Universal Music Group and BMG downsize for strategic purposes, Gonzalez has observed through job listings and interviews — that public-relations, media and streaming jobs are thinning out while the social-media and ticket-sales sectors remain more or less robust. “It is scary, I’m not going to lie,” says Gonzalez, a San Diego singer and guitarist who fronts shoegaze band Memory Leak. She adds that the “competition is insane,” noting she spent her one-year Spotify career building revenue streams for artists beyond royalties. “I found myself having to study and refresh on topics I had not thought of since I was in university — data structure and algorithms.”
From the point of view of music-business job-seekers, the employment landscape has taken a recent turn into the unknown. For the last several years, boosted by streaming growth and a spike in demand during COVID-19 home quarantine, labels, DSPs (digital service providers) and other streaming-focused companies were expanding and hiring. But UMG’s chairman, Lucian Grainge, has warned staff for months that the world’s biggest label is on the brink of severe cost-cutting.
For that reason, according to Pieter Wolter, founder of The Music Recruiters, an Amsterdam-based company that recruits people in the music business and connects them to job opportunities, job-seekers with music-business experience in human resources, finance or other transitional skills might consider recession-proof sectors such as health insurance. He expects music-business job growth in artificial intelligence, data analytics and the metaverse, but perhaps not imminently.
“It’s not like all these people who are laid off will be able to transition easily into those areas. This will depend on network and experience,” he says. “It’s clear the music industry is changing. There’s not a single area where I’m aware of super-strong hiring, like you could have seen in the past at digital distributors — or technology bursts you sometimes see.”
There are bright spots in the industry. Jon Loba, BMG’s new president of frontline recording, declared last month that he would immediately start beefing up his A&R team in Los Angeles. (In October, the Berlin-based label and publisher laid off 30 staffers as part of what CEO Thomas Coesfeld called “a strategy for future growth.”) And record-setting tours by Taylor Swift and Beyoncé have helped to create “lots of great growth opportunity for years to come” on the live side, Michael Rapino, president/CEO of Live Nation, told investors last August.
“Jobs will look different and there will be more competition, but I don’t think we need to completely freak out,” says Andreea Magdalina, Coachella’s community director and founder of shesaid.so, a music-business community of women and nonconforming gender people that hosts an online job portal. “What’s tough is people looking for jobs right now, because things are shifting really quickly. The market is going through a consolidation phase.”
For now, though, online recruiters are seeing bleakness in the business. (In addition to recent layoffs at DSPs and labels, music journalism has taken a devastating hit, with Conde Nast downsizing Pitchfork and newspapers such as the Los Angeles Times firing entertainment writers and editors.) Recent music-related opportunities on ZipRecruiter, according to Julia Pollak, the company’s chief economist, have been in teaching, therapy or junior-level positions.
“There’s not tremendous growth happening in these industries,” she says. “The sort of high-paying music-manager kind of roles that are the most attractive are in very short supply.”
Noticing the same trends over two months of unemployment, Gonzalez has broadened her job search: “I’m hopeful that I can find something where I can make an impact, whether it’s in the music industry or a different industry. It’s all a learning path.”
LONDON — Hipgnosis Songs Fund’s shareholders have voted overwhelmingly in favor of passing a special resolution that authorizes the payment of up to 20 million pounds ($25 million) to prospective bidders seeking to acquire the fund’s assets.
The special resolution was approved by 99.9% of the fund’s shareholders at an extraordinary general meeting held in London on Wednesday (Feb. 7), according to a regulatory filing.
It gives Hipgnosis Songs Fund‘s (HSF) board of directors the power to pay a fee capped at £20 million to any prospective bidder or bidders making a “bona fide” offer or offers to acquire one or more of the company’s subsidiaries which own music assets, and/or some of the fund’s music rights on favorable terms. The fee is meant to reduce the risk of making an offer for Hipgnosis Songs Fund’s music catalogs by providing “significant protection” against their due diligence and acquisition costs.
In a statement, Robert Naylor, chairman of Hipgnosis Songs Fund, thanked shareholders “for their continuing support” and said the company’s board “remains focused” on its strategic review, “under which it is looking at all options to deliver shareholder value.”
The London-listed 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, hopes that the enticement of a large fee will help draw potential bidders.
In October, shareholders voted against the music royalties fund’s proposed $440 million deal to sell 29 catalogues to Hipgnosis Songs Capital – a partnership between investment giant Blackstone and the fund’s investment adviser Hipgnosis Song Management – citing the lack of an “up-to-date” valuation.
October’s annual meeting of shareholders also saw a majority of investors vote against a resolution “to continue running the fund in its current form” — a so-called “continuation vote” — commencing a six-month countdown for the board to come up with a plan “for the reconstruction, reorganisation, or winding-up of the company.”
That led to the installation of a new executive board with Naylor replacing Andrew Sutch as chairman in November.
Last year wrapped with Hipgnosis lowering the value of its music portfolio following what Naylor described to investors as a strained relationship with its investment advisor, the Merck Mercuriadis-led Hipgnosis Song Management (HSM), over the catalog’s worth.
This year has so far begun on an equally rocky footing with the fund’s board of directors calling into question HSM’s ability to field competitive bids for its assets.
A major sticking point is the investment advisor’s call option, which gives it the right to purchase the company’s portfolio if its contract with the fund is terminated with less than 12 months’ notice, among other scenarios. The fund’s board contends that Hipgnosis Song Management’s call option harms its ability to receive competitive bids.
Last week, Mercuriadis announced that he will be stepping down as chief executive officer of Hipgnosis Song Management to take up a newly created chairman role with Ben Katovsky replacing him as CEO.
Hipgnosis Songs Fund’s share price was roughly flat at 65 British pence ($0.84) following Wednesday’s extraordinary general meeting.
Tom March has been named the new chairman/CEO of Capitol Music Group, and Lillia Parsa has been named co-president of the label group alongside co-president Arjun Pulijal, Interscope Geffen A&M chairman/CEO John Janick announced in a memo today (Feb. 7). The new leadership group was announced one day after previous CMG chair/CEO Michelle Jubelirer announced she was stepping down with immediate effect yesterday (Feb. 6).
March, who has spent the past two years as U.S. president of Geffen Records, becomes the fourth head of Capitol in the 2020s, after longtime label chief Steve Barnett retired at the end of 2020, then A&R veteran Jeff Vaughn led the label for less than a year before Jubelirer took over in December 2021. Prior to his stint at Geffen — which is the home to Olivia Rodrigo, and has a high-profile partnership with BTS and HYBE, among other artists — March was the co-president of Polydor Records in the U.K. for six years, where he helped develop Glass Animals and worked the Interscope roster in the U.K. In his new role, he’ll oversee Capitol Records, Blue Note Records, Motown Records, Astralwerks, Harvest Records and Capitol Christian Music Group, and report to Janick.
Parsa arrives at Capitol after six years at Universal Music Publishing Group, where she worked with the likes of recent best new artist Grammy nominees Ice Spice and Gracie Abrams, as well as Renee Rapp, Julia Michaels, Louis Bell, Omer Fedi and many more, with clients that worked on No. 1 Hot 100 songs like The Kid Laroi and Justin Bieber’s “Stay,” Lizzo’s “About Damn Time,” Ariana Grande’s “Positions” and more. Parsa will report to March and join Pulijal, who has been president of CMG since January 2022, as co-president. Both March and Parsa will be based at the Capitol Tower in Hollywood.
“I’ve worked closely with Tom for the better part of a decade, first as he looked after IGA repertoire in his role as co-president of Polydor in the U.K. and more recently in his position as president of Geffen,” Janick said in a statement. “He is a passionate and savvy executive who is a relentless advocate for artists and is committed to building successful executive teams. I know he will thrive in this important new role. Lillia is a gifted creative executive with very strong relationships throughout our business. I’ve personally gotten to know her over the years through artists we’ve signed together and via the amazing roster of songwriters she’s assembled at UMPG. I’m excited for her to take on this key position at Capitol, working alongside Arjun to continue to build a powerful platform for Capitol Music Group.”
These executive moves come amidst a broader restructuring happening at parent company Universal Music Group, which chairman/CEO Lucian Grainge announced in an internal memo last week. As part of that overhaul, Janick will now oversee Interscope, Geffen, Capitol, Motown, Priority, Verve and Blue Note, while Republic Records CEO Monte Lipman will oversee Republic, Def Jam, Island and Mercury. That memo also included a note that said, “In the coming weeks, John and Monte will be making further announcements about structure, resources and next-generation partnerships.” Jubelirer’s exit yesterday was the first exit since the announcement was made.
Jubelirer had been at Capitol for more than a decade, and had begun to turn around a recently-flagging label in her two years in charge: In 2023, Capitol racked up a 6.66% market share in the U.S., including a 5.90% current market share — which measures releases from the past 18 months — which was fifth among all labels for the full year. Both numbers were up significantly over her first year at the helm in 2022, when Capitol’s overall market share stood at 6.40% and current market share was 4.97%. That responsibility for the 80-year-old institution will now fall to March.
“I’m thrilled to be charged with leading Capitol Music Group,” March said in a statement. “The company’s deep legacy includes so many iconic artists and records that have long played important roles in my life, and the opportunity to help write CMG’s next chapter is a dream come true. I’m excited for Lillia to be joining me to define the creative direction of the company; she is spectacularly talented, and one of the most respected A&R executives in the business today.
“Together, we’ll work with Arjun and the brilliant CMG team to enhance the careers of artists on our current roster, as well of those who will be joining us in the future,” March continued. “John Janick and I have forged a great working relationship over the past decade, and it’s only become stronger with our amazing run at Geffen. That will absolutely intensify as we take CMG to the next level and share in even greater success together. I’m grateful to all of the artists at Geffen for their incredible music I’ve had the privilege to work on these past two years, and for the teams at Geffen and IGA who have been so supportive along the way.”
Capitol has a long history in the music business, having been the home of The Beatles, Bee Gees, ABBA, The Beach Boys, Nat King Cole and many iconic artists, and more recently the label for Katy Perry, Sam Smith, Maggie Rogers, Lewis Capaldi, Niall Horan, Toosii, Queen Naija, Ice Spice, Kodak Black and many more. Having been under the EMI Music umbrella for decades, Capitol was sold to Universal Music in 2012 in a $1.9 billion deal, after which it became a standalone frontline music group until this month, when it was shifted under Janick’s purview.
“I’m excited to be working with Tom to write the next creative chapter for Capitol Music Group; to work with an array of artists that currently call CMG home, as well as those that will be joining us in the near future,” Parsa said in a statement. “I’m also looking forward to working alongside Arjun as co-president of a company with such an illustrious and ongoing legacy. I thank John Janick for this great opportunity, and my longtime mentor [UMPG Chairman & CEO] Jody Gerson for always supporting me and encouraging this next important step in my career.”
Jermaine Dupri‘s legendary So So Def Recordings has signed a multi-year agreement with Create Music Group that encompasses all of the label’s recordings, publishing and back catalog. In addition, Dupri will supervise the launch of new artists and music under the partnership and double as Create Music Group’s the newly appointed creative director.
Explore
See latest videos, charts and news
See latest videos, charts and news
Concurrent with his new appointment, Dupri will segue from CEO of So So Def Recordings to its chairman & founder. He, in turn, has named Bryan Patrick Franklin to replace him as CEO and Joe Romulus Esq. as head of legal business affairs. In his role as creative director for Create Music Group, Dupri will work on “expanding the company’s impact on the cross-section between music and culture,” as noted in the press release announcing the news.
Dupri, a Grammy-winning producer and member of the Songwriters Hall of Fame, stated in the release, “I have been looking for a home for the entire So So Def brand so I can continue to do what I started.” Last year, So So Def celebrated its 30th anniversary.
Jonathan Strauss, CEO & founder of Create Music Group, commented, “Jermaine has been one of the most successful and impactful forces in music for the last three decades. We are honored that he and his team have decided to partner with us for both his catalog and future output.”
Dupri’s talent as a songwriter-producer is behind such platinum and multi-platinum songs as Mariah Carey’s “We Belong Together” (which won him the Grammy for best R&B song), Usher’s “Nice & Slow,” Xscape’s “Just Kickin’ It” and his own “Money Ain’t a Thang” featuring Jay-Z. He also produced the hits “Burn” and “Confessions Part II,” from Usher’s diamond-certified Confessions album. Upon founding So So Def Recordings in 1993, Dupri helmed a roster of R&B/hip-hop and pop hitmakers that included Xscape, Da Brat, Jagged Edge and Anthony Hamilton. A DJ and the second rapper after Jay-Z to be inducted into the Songwriters Hall of Fame, Dupri also established the plant-based ice cream alternative JD’s Vegan.
Create Music Group was founded in 2015. The Hollywood-based data-driven media and technology firm has worked with stars and global brands such as Jennifer Lopez, Marshmello and PepsiCo. Among the media networks that Create Music Group operates are the independent music distribution platform Label Engine and the Gen Z-focused digital entertainment and marketing agency Flighthouse.
Martin Kirkup, the well-respected co-founder of Direct Management Group, died Sunday, Feb. 4 while vacationing in Hawaii, according to his family. He was 75.
Kirkup currently managed Katy Perry, k.d. lang and Au/Ra, but over his decades-long career had also worked with artists including the B-52s, Counting Crows, Tracy Chapman, the Go-Go’s, Adam Lambert and many others.
Explore
See latest videos, charts and news
See latest videos, charts and news
“Martin Kirkup and I conceived Direct Management while drinking Raki at a restaurant high above the Bosphorus in Istanbul, escaping the Los Angeles Olympics in 1984,” said Direct Management Group co-founder Steven Jensen in a statement. “We were both fans of alternative pop music and focused on establishing a boutique management company to support that exciting genre of music. I’m proud to have built Direct Management with Martin and Bradford Cobb to the global presence it has today, with integrity, honor and ingenuity, much of which was contributed by Martin. His influence is a permanent fixture of the Direct Management culture.”
The Tynemouth, U.K.-born Kirkup came to the U.S. in 1973 as a visiting professor of English Literature at the University of Rhode Island. Shortly thereafter, he moved to New York and joined A&M Records as east coast publicity director, eventually ascending to vp of artist development and working with such artists as Peter Frampton, Styx, Squeeze, Joe Jackson, the Police and Joan Armatrading.
Kirkup and Jensen opened Direct in Los Angeles in April 1985, with early clients Boy Meets Girl, Echo & The Bunnymen and Orchestral Maneuvers in the Dark, as well as guiding Roxy Music’s Bryan Ferry on his first solo international tour. In 1989, Direct experienced tremendous success with the B-52s’ quadruple-platinum album, Cosmic Thing, which included the massive hit “Love Shack.”
In the ‘90s, Direct continued to grow, working with the Counting Crows for a decade during which the band sold more than 25 million albums. Other clients during that decade included David Byrne, Joe Jackson, Seal and the New Radicals. In 1998, Bradford Cobb joined the company as a manager, becoming a partner in 2012.
Under the three principals, the company flourished in the early 2000s, overseeing the careers of lang, Perry, the Go-Go’s and Jamie Cullum. Subsequent clients also included Lambert and Steve Perry. Signing Katy Perry in 2004 was automatic, Kirkup told Billboard in 2012. “To us, it’s not remarkable that she’s hugely successful-without sounding like wise-asses, that’s why we signed her,” Kirkup says. “We really believed in her and felt she had huge potential.”
“Martin Kirkup was a class act, a gentleman, and he was brilliant,” Cobb told Billboard in statement. “Over my 25 years working alongside him at Direct, he had a major influence on my growth as a manager and a human. Of his many talents, one that I admired most was his ability to take a problem and dissect it down to its core, finding a solution with a calm demeanor that gave everyone around him confidence. Martin had excellent taste in music, and he had great reverence for the artists who created it. He was witty with a wicked sense of humor. Martin was also warm and genuinely caring, and it was an honor to be his partner.”
Kirkup, who was on Billboard Power 100 list in 2017, was a fierce advocate for his artists, but always found time to help the next generation of executives. He doled out advice freely, mentoring a number of younger managers who came to him for advice.
He is survived by his wife Lale Kirkup, daughter Melisa Kirkup Blatt and son-in-law Ben Blatt, son John Kirkup and daughter-in-law Lorien Kirkup, and three grandchildren, Sam, Abigail, and Ivy. Details on a celebration of life will come at a later date.