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At the beginning of 2024, the always-changing music business is going through rapid transformation unlike anything in the last decade. How music companies organize themselves is changing. How royalties are calculated and paid is changing. How companies engage with fans is changing. And investors have different expectations of public companies — more focus on margins, less obsession with growth.
Music companies’ earnings results for the fourth quarter of 2023 will provide insights into how companies have performed and, more importantly, what they expect to do in the future. Only one company, SiriusXM, has announced to date. Next week’s earnings releases include Spotify (Tuesday, Feb. 6), Reservoir Media (Wednesday, Feb. 7) and Warner Music Group (Thursday, Feb. 8). Universal Music Group (UMG) announces earnings on Feb. 28. Here are some things to watch for in upcoming earnings calls.
The scope of layoffs
In October, UMG executives primed investors for cost-cutting measures that would improve margins and allow for investments in growth opportunities. The result would be hundreds of layoffs, according to a Jan. 12 Bloomberg report. On Thursday, UMG revealed some details of a bi-coastal label group restructuring. But what’s missing, so far, are details on the number of layoffs and the cost savings UMG expects to get from a restructuring. UMG’s fourth-quarter earnings release on Feb. 28 will be an opportunity for analysts to ask the company to give an update on its restructuring plans. As Billboard noted last week, the music industry is seeing widespread layoffs despite continued streaming growth. Warner Music Group (WMG), Downtown Music Holdings and BMG cut jobs in 2023. Digital music companies have shrunk their head counts, too: Spotify, Amazon Music, SoundCloud, Tidal and Bandcamp went through downsizings of various sizes.
More troubles in TikTok-land?
When UMG failed to renew its licensing contract with TikTok, it made licensing to the social video platform a major topic of conversation for upcoming earnings calls. Analysts and investors should want to know how a company’s negotiations with TikTok are proceeding and whether to expect an interruption if the two sides cannot reach an agreement. TikTok and WMG reached an agreement in July 2023, but investors may want progress reports from other public companies — Reservoir Media, Believe, Sony Music — about their licensing talks.
UMG’s decision is not without precedent: In 2008 and 2009, WMG pulled its catalog from YouTube for nine months while the two companies’ licensing negotiations were at an impasse. In 2011, Google launched an audio music streaming service, Music Beta by Google, without licenses from both Sony Music Entertainment (SME) and WMG. When Google added MP3s to its Google Music service later that year, the SME and WMG catalogs were initially absent.
The direct financial hit to UMG will be minimal since TikTok accounts for 1% of the company’s revenue, UMG stated in an open letter about the licensing talks. But because TikTok is an important promotional vehicle and a popular place to discover music, the indirect financial hit is more substantial. Investors always want to know about direct dollar impacts of a company’s moves, and they should want to understand the downsides of leaving a hit-making social platform.
How much have price increases mattered?
Music subscription prices didn’t budge for over a decade before succumbing to change in 2022 and 2023. The big fish was Spotify, which finally raised prices in the United States and other major markets in July. A higher price creates a multiplier effect on top of existing subscriber growth and will augment what would have otherwise been record quarterly revenues. The gains should come without an increase in churn: Spotify CFO Paul Vogel said during an Oct. 27 earnings call that Spotify didn’t lose any subscribers in the third quarter due to the price increase.
For record labels and publishers, a 10% price increase atop year-over-year subscriber growth stands to accelerate revenue growth. Guggenheim analysts said in a recent note to investors that they expect price increases at Spotify, YouTube and Deezer to raise UMG’s subscription revenue growth to 14.8% in the fourth quarter from 13.0% in the third quarter.
The state of the advertising business
While the subscription market has been strong, the ad-supported side of the business has struggled to keep chase. Through the first three quarters, Spotify’s ad-supported streaming revenue increased 14.9% year over year. That’s better than the 11.4% improvement in subscription revenue but well below the 22.2% and 62.1% gains in ad revenue in full-year 2022 and 2021, respectively.
Broadcast radio has fared even worse. Companies such as iHeartMedia, Cumulus Media and Audacy have blamed a slowdown in national broadcast advertising on some disappointing earnings in recent quarters.
SiriusXM provided the latest clue about broadcast advertising. “SiriusXM’s advertising revenue remains challenged,” CFO Tom Barry said during Thursday’s earnings call, “which we believe is a product of a tough broadcast advertising market.” Elsewhere, however, SiriusXM’s digital advertising improved versus 2022: Pandora had “strong growth” in its podcasting and programmatic advertising businesses, added Barry.
Some positive news in recent days shows advertising — perhaps not for broadcast businesses — is rebounding. U.S. ad spending in November was up 25% year over year, according to MediaRadar, an advertising intelligence company. The number of advertisers declined 8%, however, suggesting existing advertisers were ramping up spending.
More good news came from major ad-driven tech companies. Google’s advertising revenue in the fourth quarter increased 11% from the prior-year period, the company announced Wednesday, up from year-over-year improvements of 3.3% and 9.5% in the second and third quarters, respectively. Meta’s revenue grew 25% and its ad impressions rose 28% in the fourth quarter, the company announced Thursday.
The mission to reach superfans
Major music companies are suddenly taking a greater interest in serving superfans, those heavy-spending consumers that drive the concert and merchandise businesses but have less effect in a world of flat-rate, all-you-can-eat music subscription services. The 80-20 rule says 80% of a company’s business comes from 20% of its consumers. With music streaming, however, a $10.99-per-month service doesn’t capture a superfan’s willingness to pay more for additional value. Spotify hinted that “superfan clubs” were in the works in an announcement about the Digital Markets Act in the European Union. UMG CEO Lucian Grainge’s letter to staff in January said the company will focus on “strengthening the artist-fan relationship through superfan experiences and products.”
The problem isn’t that consumers won’t pay more money to engage with their favorite artists. The problem is no platforms have found a winning formula. Numerous previous attempts to court superfans fizzled. Drip, a platform that allowed artists to provide fans with music and other items for a recurring monthly fee, lasted from 2011 to 2016 (it relaunched a Kickstarter in 2017 but shut down in 2018). PledgeMusic shut down in 2019 amidst financial problems and allegations of improprieties. Most recently, startups’ attempts to use Web3 technologies to build superfan communities ran headfirst into the public’s sudden distrust of cryptocurrency and disinterest in NFTs. Given Spotify’s market size and resources, though, the company could make a real impact.
Benson Boone has had a few appearances on the Hot 100, scraping No. 100 with “Ghost Town” in November 2021 and reaching No. 82 with “In the Stars” in May 2022. But nothing has compared with his latest song, “Beautiful Things,” which rocketed onto the chart at No. 15 in its first week. The track garnered 15.7 million on-demand U.S. streams in the week ending Jan. 25, according to Luminate, and debuted at No. 5 on the Streaming Songs chart.
That instant success for the song has been a long time coming. Boone signed to Warner Records alongside Dan Reynolds’ Night Street Records in October 2021 and has emerged more than two years later as a heavy hitter, having spent that time in writing rooms honing his craft and developing as an artist. That’s the exact type of story that many have said is in the past in the current record business.
Now, he’s become just the latest in Warner’s recent run of success stories, which are coalescing in the first part of this year as Zach Bryan, Teddy Swims, Kenya Grace and Boone all occupy spots in the top half of the Hot 100. Meanwhile, another Warner artist, Brandy Clark, is one of the top-nominated acts at this weekend’s Grammy Awards with six nominations. This success with Boone, Clark and other artists such as Billy Strings (three Grammy noms), Rufus du Sol, Nessa Barrett and others earns Warner Records executive vp of A&R Jeff Sosnow the title of Billboard’s Executive of the Week.
Here, Sosnow talks about the rapid rise of Boone’s latest hit, the songwriting and artist success story Clark is enjoying and the evolution of artist development in the modern record business at a time when many deride the major labels as chasing after virality and one-off unicorn hits. “In this moment,” Sosnow says, “the artist development piece at Warner Records is no bulls—.”
This week, Benson Boone’s “Beautiful Things” debuted at No. 5 on the Streaming Songs chart and No. 15 on the Hot 100. What key decision(s) did you make to help make that happen?
It starts with the music. I had worked with producer Evan Blair over the last few years with another one of my artists, Nessa Barrett. I had a hunch Evan and Benson would hit it off and work well together. “Beautiful Things” was the first song that came together. After that, it really became a collaborative effort between our viral and marketing teams supporting Benson and his manager Jeff Burns’ incredible social campaign and teasing cadence. But certainly, it comes back to the music resonating in such a way with potent visuals that make for a magical moment.
Boone signed to Warner alongside Dan Reynolds’ Night Street Records in October 2021. What work have you done to help develop him as an artist over the past few years?
Dan and his brother, Mac, had signed Benson, and Jon Chen at Warner Chappell turned me on to Benson who at the time had one song, “Ghost Town.” Together with co-publisher Coulter Reynolds we have put Benson with a group of core writers and producers after some trial and error. He found his footing and confidence as a writer and artist. The level of consistency in his writing is reflected over the arc of two years of consistent streaming. And it’s not just one or two big songs. But then you throw in the fact that Benson is a world-class performer and you watch thousands of kids sing every word to every song — not just the bigger ones — and you know the hard work and patience has paid off. Some used to call this artist development.
This is his third Hot 100 entry, but first in the top half of the chart. What is it about this song that has made it resonate so much — and so quickly?
A great vocal can never be underestimated. I think Benson’s passion cuts through. There’s an urgency and a universal lyric. But again, his clever visuals on the social platforms and effective music video helped punctuate the visceral feel the song has.
Brandy Clark is nominated for six Grammys this year, part of a dozen nominations that artists you’ve signed have earned. What made her year so special, and how has she developed and grown as a songwriter and artist?
Brandy is the most prolific songwriter I’ve ever worked with. It’s been an honor to work with Lenny Waronker on Brandy’s last few records. She always amazes us because we literally go through upwards of 100 to 150 demos to get to what comprises the album. Brandy’s openness to collaboration is a key ingredient to her success. It was an amazing moment when I was able to get Michael Pollack in with Brandy for just one day. They came out with “Dear Insecurity,” which is simply one of the most powerful songs of this or any year. Enter Brandi Carlile to produce and feature on the song, and you walk out with a timeless record. As great as the album itself is, “Dear Insecurity” was always the centerpiece for me.
How has the rise of different technologies and social apps changed how the role of A&R functions?
Many A&R people rely heavily on data, and it is such an incredible tool to have. We have always had various iterations of data — watching market-by-market ticket sales, radio spins, etc. But other constants that seem to prevail in the A&R process are a great song and a great voice. So technology hasn’t really affected one’s gut instinct and intellectual ability to speak to artists and producers and make decisions about pulling the trigger on a signing, or whether a song is working or not.
A lot of people bemoan the state of artist development these days, but many of the artists you’ve signed have grown and developed extended careers. What would you say about the perception that labels don’t invest in artist development like they used to?
I don’t think labels as a whole have really, truly been beacons of artist development the last five years. I can say that what Aaron [Bay-Schuck] and Tom [Corson] have done in their time at Warner Records is to trust me with acts like Billy Strings, Rufus Du Sol, Benson, Nessa and Michael Marcagi. Each has a different arc and story, but the common thread is patience and belief in the artists and the A&R person’s ability to have real, honest conversations that will push them while also protecting and supporting them for the long haul. And in this moment, the artist development piece at Warner Records is no bulls—.
Global superstar Drake is making moves to expand his influence. His OVO Sound label has announced a new partnership with the Santa Anna Label Group, an artist and label services company launched by Sony Music last year.
Through the partnership, OVO will remain a distinct label with its own roster, but will benefit from distribution, marketing and promotion, A&R services, finance and accounting, and more from the American company.
Santa Anna is a new venture, launched in January 2023 by Sony Music and Alamo Records CEO Todd Moscowitz, with the goal of helping artists and entrepreneurs to develop their businesses within the industry. This isn’t Moscowitz’s first encounter with the Toronto label: the industry executive was CEO of Warner Records in 2012, when OVO was originally founded under the Warner banner.
“After 10 years, it’s exciting to reunite with the OVO Sound team to collaborate on new ways to support their impressive roster of artists,” Moscowitz said of the new partnership. “Together, I look forward to working with a best-in-class management team to develop opportunities to help scale their business and take their artistry to new heights.”
OVO was founded by Drake, producer Noah “40” Shebib and manager Oliver El-Khatib. The roster includes popular Toronto talent like Majid Jordan, DVSN and PARTYNEXDOOR, and is headed by former Warner A&R executive Mr. Morgan. This new announcement comes after Majid Jordan’s fall 2023 release of the duo’s latest LP, Good People, and ahead of PARTYNEXTDOOR’s P4, expected soon.
The OVO brand — October’s Very Own, named after Drake’s birth month — includes live music at OVO Fest and a brick-and-mortar clothing store in Toronto, as well as the label. In the decade-plus since OVO’s launch, the label has largely focused on Canadian acts, though they also represent Dutch artist (and their first female signee) Naomi Sharon.
The partnership indicates that Drake’s business ambitions are only growing. Will OVO expand its focus beyond Canada? Or will the new investment be directed towards discovering new artists like they did recently with 6ixBuzz collaborator Smiley? –Rosie Long Decter
Vancouver-Based Beatdapp Partners with Universal Music Group to Detect Fraud
Vancouver-based Beatdapp has become the leading streaming fraud detection company in the music industry today after successfully raising C22M in growth financing and newly announced partnerships with SoundExchange, Napster and a “strategic collaboration” with Universal Music Group.
Last year, the company analyzed more than two trillion streams and 20 trillion data points for its five core categories of customers: DSPs, music labels, collection societies, creator tool services and music distributors.
Beatdapp asserts that as much as 10% of global streams are fraudulent, with the result that as much as US$1B in royalties end up in fraudsters’ pockets. Latest statistics suggest more than 100,000 tracks are uploaded every day. These are on top of the 100M tracks Spotify hosted in 2023, with over 30M added annually at the current rate of uploading.
The company claims to detect fraud with more than 99% accuracy. That’s become especially pertinent as Spotify has eliminated royalties for songs with less than 1,000 songs, in a claimed effort to crack down on fraud. Fraud is also a major topic of conversation when it comes to artificial intelligence, a point of existential angst for many in the music industry.
Recently, Universal Music Group has also been up front when it comes to fair distribution of royalties, pulling its entire song catalogue from TikTok at the end of January. In a widely distributed open letter, the major record company accused the platform of “trying to build a music-based business, without paying fair value for the music,” according to a new open letter.
In the meantime, companies offering fraud detection or protection could have major value within the music industry. –David Farrell & Richard Trapunski
Tokyo Police Club Says Goodbye
Tokyo Police Club, one of the most successful Canadian indie rock bands of the last two decades, is calling it quits — but not before four more hometown goodbye shows in Toronto from Nov. 27-29 at History.
Though they began in Ontario, a press release announcing the band’s breakup says the members of the band are now spread out from Los Angeles to Toronto to Prince Edward Island.
In a joint statement signed by “Dave, Graham, Josh and Greg,” the group explains that, “It’s time for us to say goodbye! This band has meant so much to us for so many years, but all magical things must come to an end. Tokyo Police Club will always stand for the connection we have shared ever since we were teenagers, and it’s brought so many amazing people and moments into our lives.”
Tokyo Police Club was formed by four high school friends in Newmarket, Ontario, and comprises vocalist and bassist Dave Monks, keyboardist Graham Wright, guitarist Josh Hook, and drummer Greg Alsop. The group made a splash with an acclaimed debut EP, A Lesson In Crime, in 2006, going on to release two more EPs and five full-length albums and tour internationally, from Coachella to The Late Show with David Letterman.
Among other nominations, the band was twice up for the Juno Award for Alternative Album of the Year, in 2011 for Champ and in 2019 for TPC, its final full-length release.
After the band’s first goodbye show was announced, there’s been overwhelming demand for more. Now, it’s a four-night stand in Toronto. Additional live dates could also be in the works, they hint. –Kerry Doole
Last Week in Canada: Chilly Response to Pitchfork Changes
Primary Wave Music has partnered with Brazilian music company Nas Nuvens Catalog. The deal marks Primary Wave’s first major move into the fast-growing Brazilian music market. Nas Nuvens Catalog is the leading independent Brazilian company focusing on the acquisition, management and marketing of music catalogs, and is one of the five largest music companies in Brazil.
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BMG has signed a publishing partnership with hitmaker Jeff “Gitty” Gitelman and his company Playground Media. Known for his recent work with Victoria Monet, Jelly Roll, Jessie Murph, Mary J Blige, Hozier, Jennifer Lopez and more, Gitty’s new agreement with BMG will allow him to continue to expand his roster of new creatives at Playground Media.
Downtown Music Publishing has signed Grammy-winning singer-songwriter Colbie Caillat to a global publishing agreement. This new deal includes future works as well as the administration of her full catalog, including “Bubbly” and “Lucky.” She is also signed to Downtown on the recorded music side.
Anthem Entertainment has acquired the catalog of songwriter Chantal Kreviazuk, including her own releases “Boot”, “In This Life”, “Time”, “Weight Of The World” and “Get To You.” It also includes hits she has written for other artists, like “Feel This Moment” by Pitbull and “Rich Girl” by Gwen Stefani.
Warner Chappell Music has purchased the catalog of hitmaker Jenna Andrews. This includes hits like “Butter” and “Permission to Dance” by BTS as well as “Supalonely” by Benne and Gus Dapperton, “July” remix by Noah Cyrus featuring Leon Bridges, and more.
Concord Music has signed Sleeping At Last‘s Ryan O’Neal to a global publishing deal, including both his catalog and future works. Since 1999, Sleeping At Last has written, produced and released over 20 albums and EPs, including “Turning Page,” which was featured on the soundtrack of The Twilight Saga: Breaking Dawn — Part 1.
Warner Chappell Music and Lady Fairchild Publishing have signed Ashley Ray to a global publishing deal. Known best for penning Little Big Town’s “The Daughters,” along with other songs for Ruston Kelly, Lori McKenna, Sean McConnell, and more, Ray’s new publishing deal will have her continuing to work with Little Big Town’s Karen Fairchild, founder of Lady Fairchild Publishing. This is a new publishing company, focused on artist development.
Concord Music Publishing has purchased selections of Cary Barlowe‘s catalog, including Chris Young’s “Famous Friends” and “Raised on Country,” as well as songs recorded by Kelsea Ballerini, Brett Kissel, Chris Tomlin, Rascal Flatts, Lauren Alaina, Little Big Town, Mickey Guyton, and more. The company has been working with Barlowe for years and in addition to the catalog news, the company also announces that it has extended Barlowe’s publishing deal through its creative joint venture, Hang Your Hat Music, including Barlowe’s full catalog and future works.
Prescription Songs has signed songwriting-production duo BaeRose to its roster. Comprised of best friends Dana “BaeBae” Victoria and Mariah Rose “MRose” Martinez, the duo has already been in the studio with the likes of Chris Brown, Roddy Ricch, Jason Derulo and more.
Blue Raincoat Music has signed a new global publishing deal with songwriter-producer and Lightning Seeds frontman Ian Broudie. The deal includes the majority of his catalog and will see him reunited with Jeremy Lascelles, CEO of Blue Raincoat, who was Broudie’s longtime publisher when he was at Chrysalis Music in the 1990s.
Warner Chappell Music has signed Sara Bares to a global publishing deal. Based in Nashville, the rising songwriter has worked with Leah Mason, Simon Jonasson, Oliver Frid, Tanner Adell, Ashley Kutcher and Camille Parker to date.
It’s time for another quick whirl around the Executive Turntable, Billboard’s comprehensive(ish) compendium of promotions, hirings, exits and firings — and all things in between — across music. Get to know the most powerful people in the music biz in the latest Power 100 list.
Crypto.com Arena, home of Lakers, Kings, Clippers and Sparks, hired Ron Little as the Los Angeles landmark’s vice president of security. Little will lead all event and non-event security and risk management services for the arena, and assist with planning safety protocols. He arrives in LA from Seattle, where he served as director of security for Lumen Field, Lumen Field Event Center and the WAMU Theater. Prior to the Emerald City, he held various roles in Oakland, most notably as GM for SMG at Oracle Arena and the Oakland-Alameda Coliseum. Over the course of his 30-plus years in the biz, he also worked with Bill Graham Presents, Live Nation and the Bonnaroo Music Festival. “With a wealth of experience and a deep understanding of the industry, Ron brings a unique perspective that aligns seamlessly with our vision,” says Lee Zeidman, president of Crypto.com Arena. “His strong industry relationships will undoubtedly contribute to the success of the arena, and we eagerly anticipate his leadership in overseeing a diverse range of events here in Los Angeles.”
Sony Music Entertainment looks to pounce on double-digit growth in Asia with the appointment of Kenny Ong as the label group’s new managing director for Malaysia, Vietnam, Singapore and special projects Southeast Asia, effective immediately. Ong’s job will be to expand Sony’s share of the pie in the region — revenue in all of Asia rose 15.4% in 2022, according to IFPI — and champion Southeast Asian artists. Ong was previously CEO of Astro Radio, the top radio power in Malaysia, and between 2015 and 2021 was managing director of Malaysia, Singapore and Indochina for Universal Music Group. “Our region is poised for continued growth, and to seize the opportunity it will require more creativity and diligence,” said Shridhar Subramaniam, SME’s president of corporate strategy and market development, Asia and Middle East.
Madison Square Garden Entertainment and Sphere Entertainment hired Laura Franco as evp and general counsel for both companies, effective Feb. 20. Franco, who wields 30-plus years in legal experience, including most recently as chief legal and compliance officer at Bumble, will report directly to executive chairman and CEO James L. Dolan. As general counsel, Franco will direct all business legal affairs, including complex transactions, at both companies. Prior to Bumble, parent of the same-named dating app, she served as evp and general counsel of CBS. “We are pleased to welcome Laura to the MSG Family of Companies,” said Dolan. “Laura’s background handling high-profile corporate and business legal matters at premier media companies will be a valuable addition to our Legal teams, and we look forward to leveraging her expertise as both companies pursue their business strategies.”
Curb Records promoted several staffers, with Craig Powers rising to svp of media and continuing to spearhead mainstream/crossover radio success with label artists including for King + Country and Natalie Grant; Powers had served as vp of media since 2020. Lori Hartigan has been promoted to national director of media; Hartigan has been with Curb for 10 years and has served the past eight years as director of west coast promotion. Additionally, Todd Thomas will move into the director of west coast promotion role (having previously served as director, southwest promotion), while Bailey White has been hired as director of southwest promotion. White comes to Curb after three years with Black River Entertainment’s promotion team. –Jessica Nicholson
Warner Music UK appointed Natasha Billing to svp of commercial and data insights, and promoted Nick Allum to her vp of data and insight. The label said these moves coincide with a shift in WMUK’s approach to data analytics and revenue generation, and will ultimately assist in nurturing artists’ careers by amplifying audience engagement and fueling innovation. Billing’s previous work includes stints at ASOS and Made.com, as well as a three-year stretch in a strategy role at Warner Music International. Allum, who reports to Billing, is tasked with building an in-house data and insight team and will manage audience, revenue and marketing data collection for the company’s labels. “With our new setup, and under Natasha and Nick’s leadership, we are well positioned to offer the best support possible to our artists, labels and partners, while further promoting and accelerating WMUK’s incredible frontline and catalogue releases,” said Isabel Garvey, WMUK’s chief operating officer, to whom Billing reports.
Cherie Hu, a respected music tech researcher and founder of data-driven learning platform Water & Music, landed a full-time teaching job at Syracuse University‘s prestigious Bandier Program for Recording and Entertainment Industries. Beginning in the fall semester, Hu will teach students about emerging technologies and new music industry models as part of Syracuse’s Newhouse School of Communications, where she currently adjuncts. Hu plans to continue her involvement with Water & Music in a more strategic role. As a journalist, Hu covered the intersection of music and tech for Billboard, Forbes, Pitchfork and NPR Music, among other outlets, and received the Reeperbahn Festival’s Award for International Music Business Journalist of the Year in 2017. “Cherie Hu is in an elite echelon of analysts creating the absolute best work and thinking about the future of the music industry,” said Bill Werde, director of the Bandier program and former editorial director of Billboard. “I’ve respected and learned from her work for years, and am thrilled to welcome her to the Bandier, Newhouse and Syracuse family, to continue her industry-leading work, and to teach our students about what’s next in music industry business models, marketing and platforms.”
Music-licensing company Epidemic Sound appointed former Amazon and Grubhub exec Sam Hall as chief product officer, starting Feb. 5. In his new role, Hall will lead Epidemic’s product department to boost its B2B/B2C offerings. He joins from CLEAR, where he was CPO at the US-based tech company. At Grubhub, Hall also oversaw the development of B2B/B2C offerings, and during his near-decade at Amazon was instrumental in building the company’s mobile business from the ground up. “We’ve made huge strides in the sophistication of our product offering to content creators of all kinds in the past three years, introducing tools that make it almost frictionless to soundtrack content,” said Oscar Höglund, co-founder and CEO. “We’re delighted to welcome Sam to accelerate this progress together; he brings a focus on customer experience across both B2B and B2C, and will be instrumental in developing a next-generation soundtracking experience for our creative community.”
Artist Partner Group announced a wide slate of promotions at the label. Eli Piccarreta has been elevated to svp of A&R, Corey Calder is moving up to svp of marketing and creative services, Jessica Kelm is now vp of marketing and digital operations, and Ashlee Merritt now has senior marketing director on her business card. APG, label home to a roster that includes Odetari, 6arelyhuman, Lay Bankz, The Sweepers and NLE Choppa, was founded in 2004 and is parent to Artist Publishing Group.
The Bryan Adams joined music-sharing tech startup Songbox as a co-founder. Using Songbox, creators can track when a file has been delivered, whether it’s been listened to and how long songs have been played. Additionally, the platform allows for creators to upload and share music video content. The Canadian rock icon said in a statement, “Songbox allows me to share new music that I’m working on in a way that I couldn’t before. I don’t need to send out MP3 files or physical products, so it keeps my ideas and early versions safe and secure until I’m ready to officially release the songs.” –J.N.
Jazz musician Branford Marsalis was named artistic director for the Ellis Marsalis Center for Music in his hometown of New Orleans. The center, which uses music to help foster community and deliver services to underserved kids and musicians, was established in 2012 and is named after Marsalis’ father. “My dad was a teacher, in music and in life,” Branford Marsalis said. “After Hurricane Katrina, he envisioned a haven for the underserved musicians and children in his hometown of New Orleans. He spent the last decade of his life committed to turning that dream into a reality at the Ellis Marsalis Center for Music. It is my honor to step into the role of Artistic Director at the Center and to continue to drive its mission. I hope to make my dad proud.”
BOARD SHORTS: Leo Premutico, co-founder of renowned ad agency Johannes Leonardo, was named chairperson of the 2024 AMP Awards for Music & Sound. As Show Chair, Premutico will be tasked with helping assemble the AMP Awards Curatorial Committee … The National Association of Broadcasters appointed iHeartMedia regional president Jeanna Berge to its radio board of directors, replacing Joel McCrae.
Nice Life Recording Company promoted Bradley Haering to the fresh position of evp of A&R, and hired Mikelle Schwartz as evp or marketing for the indie label. Both are based in Los Angeles and report to founder/CEO Ricky Reed and Larry Wade, who is COO. Haering has been at the company since its formation in 2014 and is credited with signing the label’s Grammy-nominated band The Marías. Schwartz arrives from 88rising, where she was svp of marketing, with previous stops at Warner Records and Kemosabe Records. “I am thrilled for this next chapter at Nice Life Recording Company with these expanded positions,” said Reed. “Mikelle brings over 15 years of marketing experience, making her an invaluable asset to our Nice Life team at the leadership level. Brad, who has been with us since the beginning will oversee A&R in this newly added position as we continue to expand the Nice Life roster.”
Sony Music Publishing UK hired ZaZa Kazadi as senior A&R manager and promoted Adrienne Bookbinder to senior A&R manager of UK and Europe, and Nasra Artan to senior European A&R manager. All three are based in the company’s London office, with Kazadi and Bookbinder reporting to David Ventura, president and co-managing director, and Artan reporting to Ventura and Johnny Tennander, svp of international. Kazadi previously worked in management at Never Dies Management and spent two years as A&R manager at BMG Music Publishing.
Jon Granat joined JDM Music + Sound, makers of custom sound design for movie advertising, as a partner. Granat arrives from Nettwerk Music Group, where as svp of global sync licensing, he led a team working on creative, licensing and biz development for a roster including Passenger, St Lucia and Vacations. Prior to NMG, Granat worked with companies ranging from BMG, Chrysalis and Warner Chappell Music, among others. “I’m beyond thrilled to welcome Jon to the company,” said Joel Dean, a founding partner of JDM Music + Sound. “His wealth of experience across the music industry will be invaluable to bringing opportunities to the JDM catalog and our roster of composers.”
BMI veteran MaryAnn Keen was promoted to director of creative in the PROs Nashville office. Keen joined BMI in 2016 and was most recently the creative associate director, instrumental in scouting and signing new songwriters and coordinating event, such as the Key West Songwriters Festival. She has gained experience working with emerging writers and established hitmakers including Heath Warren, Mackenzie Carpenter and Brett Tyler, among others. Keen will continue to report to BMI’s Leslie Roberts, AVP of Creative Nashville.
Believe elevated Kristof Jansen to vp of Groove Attack, the digital firm’s rap and hip-hop brand in Germany. Approaching ten years at the company, Jansen most recently served as director of repertoire development for A&R at both Believe and Groove Attack. He’ll work out of the Cologne office and continue to report to Thorsten Freese, GM of Believe Germany.
Musicians on Call, a non-profit that brings music to the bedsides of patients, promoted six key staffers: Nicole Rivera to vp of programs, Sara Kolodziejczak to vp of development, Tarah Duarte to senior manager of strategic partnerships, Alli Prestby to creative manager, and Audrey Jadwisiak and Orenda Senior to program manager. “These team members have excelled in their roles and significantly improved the foundation of Musicians On Call. Our programs and national brand, along with the overall health of our organization, have all benefited from their leadership, creativity and ingenuity,” said MOC CEO Pete Griffin.
ICYMI:
Merck and Louis.
Universal Music Group honcho Lucian Grainge put Monte Lipman and John Janick in charge of a restructured label model that rejiggers its web of frontline labels to align them under two main companies … Utopia Music co-founder Mattias Hjelmstedt exited the company … Hipgnosis founder Merck Mercuriadis (pictured) is stepping down as CEO of Hipgnosis Song Management … Kris Lamb is elevated to evp and GM of Big Machine Records … which is part of Big Machine Label Group, which promoted Mike Rittberg to COO and Clay Hunnicutt rising to evp of label operations.
Last Week’s Turntable: All Songs Host Considered, Accepted
LONDON — Mattias Hjelmstedt, the co-founder and former head of Utopia Music, has exited the company following a shake-up of the Swiss-based firm’s executive ranks earlier this year.
Hjelmstedt departure from Utopia was announced in a memo to staff on Thursday (Feb. 1) sent by recently appointed CEO Michael Stebler and the board of directors.
The memo, which has been viewed by Billboard, states that Hjelmstedt handed in his resignation after “long discussions” with board members because he wanted to dedicate more time towards pursuing “new projects and challenges.”
“The board and I are, as I’m sure you are too, extremely grateful to Mattias for creating and running this amazing company for significant periods of time,” Stebler, who represents the majority shareholder group behind Utopia Music, told staff.
Referring to the company’s well-documented past struggles, which included multiple rounds of job cuts, company divestments and ongoing legal actions, Stebler said he was grateful for the “tough but necessary decisions” that Hjelmstedt began implementing in late 2022.
“I can say with absolute certainty that this was necessary for the company’s survival,” said Stebler, who has been at the helm of Utopia Music since mid-January.
In the memo, Hjelmstedt said the decision to step down from his roles with Utopia “was not taken lightly, but it comes with a deep belief that it’s the right thing to do.”
He went on to say that he firmly believed the company “will continue to grow and succeed” said the new management team means that the firm, which is headquartered in the Swiss-town of Zug, is “in capable hands.”
“As I move forward, I am excited to see how Utopia will evolve and I am cheering you all on, as I will always be one of Utopia’s biggest fans,” the co-founder told staff.
Swedish entrepreneur Hjelmstedt co-founded Utopia Music in 2016 with Thomas Gullberg and led the company through a period of intense hyper-growth between 2020 and 2022 when it rapidly bought up 15 companies.
Acquisitions in that time included music tech company Musimap; Lyric Financial, a Nashville-based provider of royalty-backed cash advances; and Proper Music Group, the United Kingdom’s leading independent physical music distributor, which provides distribution services for over 5,800 indie labels and service companies.
A just-as-quick downsizing swiftly followed, beginning with the axing of around 230 jobs in late 2022 and the subsequent offloading of three of Utopia’s businesses — Absolute Label Services, U.S.-based music database platform ROSTR and U.K.-based publisher Sentric.
During this rocky period, Hjelmstedt served as interim chief executive — taking over from Markku Mäkeläinen — and stayed at the helm of the company up until the appointment of Alain Couttolenc as chief exec last October. (Couttolenc switched roles to deputy CEO earlier this year when Stebler was appointed to the top job).
More recently, Hjelmstedt held the post of Utopia executive’s chairman and, since December, served as a member of the board.
The company he co-founded and which counts the United Kingdom and United States among its biggest revenue markets provides music companies with a range of financial and tech product services, including royalty tracking and processing, as well as its core U.K. physical distribution business operated through Proper Music Group and Utopia Distribution Services (formerly Cinram Novum). The latter’s clients include Universal Music Group, Sony Music Entertainment and [PIAS].
Speaking to Billboard in January in a rare interview, Hjelmstedt said the ethos behind Utopia Music, whose motto is “Fair pay for every play,” has always been to use technology to help artists, creators and rights holders receive higher returns.
“We have never been about disrupting or taking over the industry,” said Hjelmstedt. “It’s always been about helping the industry be better and grow.
Merck Mercuriadis will step down as chief executive officer of catalog investment advisor Hipgnosis Song Management, the company announced on Friday (Feb. 2). The executive, who spent years managing the careers of artists like Elton John, Beyoncé and Guns N’ Roses before launching Hipgnosis, will transition to a newly created chairman role and will continue to “lead engagement” with industry stakeholders on behalf of the business, it said.
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Taking on the CEO role will be Ben Katovsky, HSM’s president and chief operating officer since joining the company in October 2022. He boasts almost two decades of experience in the music industry, most recently in a seven-year tenure as chief operating officer at BMG.
“One of our most important goals has been to bring an institutional rigor to Hipgnosis Song Management,” Mercuriadis said. “Over the last 16 months, Ben has done an amazing job building the team and HSM’s capabilities to deliver the best possible service to our clients and I’m certain this appointment makes us stronger.”
Added Katovsky, “I am proud to be asked to lead HSM through its next chapter, building on all Merck has achieved. In my time in the music industry I haven’t come across anyone who can match his rapport and relationships with songwriters and artists.”
Hipgnosis Song Management is the investment advisor for Hipgnosis Songs Fund, the publicly-listed royalty fund with a catalog that includes stakes in songs by Neil Young, Justin Bieber, Journey, Lindsey Buckingham, Blondie, Justin Timberlake and many other artists and writers. HSF capped a turbulent 2023 by lowering the value of its catalog following what new board chair Robert Naylor described to investors as a strained relationship with the Mercuriadis-led HSM over the catalog’s value.
A third Hipgnosis, Hipgnosis Songs Capital, is a joint venture between HSF and investment giant Blackstone. It is wrapped in a proposal to acquire 29 catalogs for $440 million to help the public fund reduce its debt and improve its share price.
In January, the public fund’s board of directors leveled several complaints against its namesake advisor, calling into question its ability to field competitive bids for its trove of assets. A main sticking point is the investment advisor’s call option — a right to purchase the company’s catalogs if its contract is terminated with less than 12 months’ notice, among other scenarios — which the board contends harms the fund’s ability to receive competitive bids.
The fund’s board wants to make the bidding process more attractive and on Jan. 18 announced a proposal to pay bidders a 20-million-pound ($25.4 million) fee to cover due diligence and acquisition costs when they pursue a purchase of HSFs assets. Shareholders will vote Feb. 7 on that proposal.
HSM said in its announcement that it has sought approval from the fund for the management transition.
In further comment, Katovsky praised HSM’s two clients — HSF and HSC — for their “vision, ambition and on-going commitment to grow music as an asset class through HSM,” and said he hoped to collaborate well with the fund’s board going forward.
“I particularly hope we will be able to work constructively with the Board of Hipgnosis Songs Fund Ltd, as I believe that HSM is best able to deliver value for their shareholders whether they decide the Company has a future as a long-term operation or wish to pursue the sale of assets following their strategic review,” he said.
Added Mercuriadis, “Having invested almost $3 billion on behalf of our clients in extraordinarily successful songs we are at an important juncture in our development where the services we provide to our clients are of paramount importance. Our commitment remains stronger than ever. We look forward to continuing our work with songwriters and the creative community to create the greatest possible opportunities from the iconic and culturally important Songs which we manage on behalf of HSM’s clients.”
Nearly 300 artists, songwriters, actors and other creators are voicing support for a new bipartisan Congressional bill that would regulate the use of artificial intelligence for cloning voices and likenesses via a new print ad running in USA Today on Friday (Feb. 2).
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The bill — dubbed the No Artificial Intelligence Fake Replicas And Unauthorized Duplications Act (“No AI FRAUD” Act) and introduced in the U.S. House on Jan. 10 — would establish a federal framework for protecting voices and likenesses in the age of AI.
Placed by the Human Artistry Campaign, the ad features such bold-faced names as 21 Savage, Bette Midler, Cardi B & Offset, Chuck D, Common, Gloria Estefan, Jason Isbell, the estate of Johnny Cash, Kelsea Ballerini, Lainey Wilson, Lauren Daigle, Lamb of God, Mary J. Blige, Missy Elliott, Nicki Minaj, Questlove, Reba McEntire, Sheryl Crow, Smokey Robinson, the estate of Tomy Petty, Trisha Yearwood and Vince Gill.
“The No AI FRAUD Act would defend your fundamental human right to your voice & likeness, protecting everyone from nonconsensual deepfakes,” the ad reads. “Protect your individuality. Support HR 6943.”
The Human Artistry Campaign is a coalition of music industry organizations that in March 2023 released a series of seven core principles regarding artificial intelligence. They include ensuring that AI developers acquire licenses for artistic works used in developing and training AI models, as well as that governments refrain from creating “new copyright or other IP exemptions that allow AI developers to exploit creators without permission or compensation.”
In addition to musical artists, the USA Today ad also bears the names of actors such as Bradley Cooper, Clark Gregg, Debra Messing, F. Murray Abraham, Fran Drescher, Laura Dern, Kevin Bacon, Kyra Sedgwick, Kristen Bell, Kiefer Sutherland, Julianna Margulies and Rosario Dawson.
The No AI FRAUD Act was introduced by Rep. María Elvira Salazar (R-FL) alongside Reps. Madeleine Dean (D-PA), Nathaniel Moran (R-TX), Joe Morelle (D-NY) and Rob Wittman (R-VA). The bill is said to be based upon the Senate discussion draft Nurture Originals, Foster Art, and Keep Entertainment Safe Act (“NO FAKES” Act), which was unveiled in October.
“It’s time for bad actors using AI to face the music,” said Rep. Salazar in a statement at the time the legislation was announced. “This bill plugs a hole in the law and gives artists and U.S. citizens the power to protect their rights, their creative work, and their fundamental individuality online.”
Spurred in part by recent incidents including the viral “fake Drake” track “Heart On My Sleeve,” the No AI FRAUD Act would establish a federal standard barring the use of AI to copy the voices and likenesses of public figures without consent. As it stands, an artist’s voice, image or likeness is typically covered by “right of publicity” laws that protect them from commercial exploitation without authorization, but those laws vary state by state.
The bill was introduced on the same day a similar piece of legislation — the Ensuring Likeness Voice and Image Security (ELVIS) Act — was unveiled in Tennessee by Governor Bill Lee. That bill would update the state’s Protection of Personal Rights law “to include protections for songwriters, performers, and music industry professionals’ voice from the misuse of artificial intelligence (AI),” according to a press release.
Since its unveiling, the No AI Fraud Act has received support from a range of music companies and organizations including the Recording Industry Association of America (RIAA), Universal Music Group, the National Music Publishers’ Assocation (NMPA), the Recording Academy, SoundExchange, the American Association of Independent Music (A2IM) and the Latin Recording Academy.
You can view the full ad below.
Two days after Universal Music Group (UMG) announced it would likely pull its music catalog from TikTok over a licensing dispute, indie publishing giant Primary Wave Music has come out in support of the company’s decision.
In a statement released Thursday (Feb. 1), Primary Wave, led by founder/CEO Larry Mestel, said it applauds UMG “for standing up to TikTok and its blatant disregard for artists and songwriters” while blasting TikTok’s response to UMG’s decision, which UMG announced in an open letter addressed to its artists and songwriters on Tuesday (Jan. 30).
“The notion that TikTok would try to rationalize willfully underpaying artists because, the platform says, it offers artists ‘promotion’ is a decades-old canard that has no place in any modern music business,” the Primary Wave statement continues. “Artists and songwriters need to be compensated appropriately for their work and protected from unethical uses of AI. Period. We’re proud to stand alongside UMG and the artist advocates that have called upon TikTok to appropriately pay and protect the songwriters and artists who are critical to the growth and cultural relevance of the platform.”
Primary Wave represents multiple artists and estates with deals with UMG, including Olivia Newton John and Bob Marley.
In UMG’s open letter, the company — which boasts such superstars as Taylor Swift, BTS, Drake and The Weeknd on its roster — announced that all UMG music would be removed from TikTok after its current licensing deal expired Thursday (Jan. 31) while citing deep disagreements over artist compensation, artificial intelligence, TikTok’s alleged failure to combat infringing musical works and user safety. It also accused TikTok of attempting to “bully” UMG “into accepting a deal worth less than the previous deal, far less than fair market value and not reflective of their exponential growth” by threatening to selectively remove the music of some of UMG’s developing artists.
Just hours later, TikTok responded by accusing UMG of putting “greed above the interests of their artists and songwriters” while slamming what it called UMG’s “false narrative and rhetoric…the fact is they have chosen to walk away from the powerful support of a platform with well over a billion users that serves as a free promotional and discovery vehicle for their talent.”
On Thursday (Feb. 1), UMG responded to TikTok by saying the platform’s own statement “perfectly sums up its woefully outdated view: Even though TikTok (formerly Musical.ly) has built one of the world’s largest and most valuable social media platforms off the backs of artists and songwriters, TikTok still argues that artists should be grateful for the ‘free promotion’ and that music companies are ‘greedy’ for expecting them to simply compensate artists and songwriters appropriately, and on similar levels as other social media platforms currently do.”
UMG’s catalog began disappearing from TikTok on Thursday.
Clive Davis introduced nine-time 2024 Grammy nominee SZA to present the Clive Davis Visionary Award to her manager and label heads, Top Dawg Entertainment president Terrence “Punch” Henderson and Anthony “Top Dawg” Tiffith, at Billboard’s 2024 Power 100 event last night (Jan. 31).
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The star-studded event bringing together the most influential and powerful figures in music was held at Neuehouse in Hollywood, where the legendary record executive Davis took the time to outline the successes and exploits of Tiffith and Henderson since the launch of TDE in 2004.
“Throughout my career, I’ve always had the great fortune of working with truly remarkable producers who created hits and helped shape the careers of some of the biggest and brightest stars in music,” Davis said. “The executives we are honoring tonight, their names are Anthony Tiffith and Terrence Henderson; you know them as Top Dawg and Punch. They without question share the gift of all those outstanding producers who have made their mark on music history.”
Davis then turned his speech to SZA, whom he called “one of today’s most exciting music artists,” and ran through a number of the accomplishments she has racked up in the past year. “SZA’s latest acclaimed album, we all know, S.O.S., has earned a whopping nine 2024 Grammy nominations, the most of any artist this year, and it includes album of the year, record of the year, song of the year, best progressive R&B album and best R&B song,” he said. “S.O.S. was No. 1 for 10 weeks on the Billboard 200, and — this is amazing — all 23 of the album’s tracks charted on the Billboard Hot 100, with five top 10s.”
He then introduced SZA, who gave a speech that lauded Punch and Top Dawg for their vision in believing in her since the very beginning of her career.
“I was just talking to Punch the other day about how much vision he had to have to see what he saw in me with no credentials,” she said. “I really was looking insane and behaving insane and refused writers and all these things, and he believed in me. People would come to him and tell him he should change how I look, or I should be doing these kind of beats or working with these writers, and he didn’t change a single thing about me. He completely believed and constantly told me that I was the greatest, which I thought was ridiculous, and I was so grateful for his delusion. You know, Top literally also somehow had this belief in me, and I was nothing like any of my family members in TDE, I didn’t come from the same place, I was just a different type of person, and no matter how many times we would have conversations that differed, he would fight to understand me.”
She then introduced Punch and Top Dawg to speak. The latter kept it short — “You know me, I’m behind the scenes all the time; I’m like SZA, I don’t like all these cameras and the limelight,” he said — before turning it over to Punch.
“When you think about a visionary, you have to have foresight. And coming from where we come from — we both come from the Nickerson Garden projects — you have to have vision, you have to have foresight. And usually you don’t; you can’t see past your circumstances, or even see past what’s right in front of you,” he said. “So from there, we went on to be 20 years in in this business. That takes a razor-sharp vision, for sure. Even to help different artists, like a young girl from the suburbs of Maplewood, New Jersey, to reach the top of the pop charts, that’s crazy, and that also takes vision. So to the visionaries, keep seeing things with your eyes closed, and see it through.”
Find the full 2024 Billboard Power 100 list here.