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A judge set bail Tuesday at $750,000 for a former Los Angeles-area gang leader charged with orchestrating the killing of hip-hop legend Tupac Shakur in 1996 and said he can serve house arrest with electronic monitoring ahead of his trial in June.
Court-appointed attorneys for Duane “Keffe D” Davis told The Associated Press after the hearing in Las Vegas that they believe he can post bail. They had asked for bail of not more than $100,000.
The lawyers argued in a court filing a day before that their client — not witnesses, as prosecutors had said — faced danger. And they say that their 60-year-old client is in poor health after battling cancer, which is in remission, and that he won’t flee to avoid trial.
“We believe he can” post bail, public defender Robert Arroyo said after Tuesday’s hearing.
The lawyers accused prosecutors of misinterpreting a jail telephone recording and a list of names provided to Davis’ family members, and of misreporting to the judge that Davis poses a threat to the public if he were released.
Davis “never threatened anyone during the phone calls,” said Arroyo and Charles Cano, deputy special public defenders, in their seven-page filing Monday. “Furthermore, (prosecutors’) interpretation of the use of ‘green light’ is flat-out wrong.”
The “green light” reference is from a recording of an October jail call that prosecutors Marc DiGiacomo and Binu Palal provided last month to Clark County District Judge Carli Kierny, who presided over the bail hearing.
The prosecution’s filing made no reference to Davis instructing anyone to harm someone, or to anyone associated with the case being physically harmed. But the prosecutors added that “In (Davis’) world, a ‘green light’ is an authorization to kill.”
“Duane’s son was saying he heard there was a greenlight on Duane’s family,” Davis’ attorneys wrote, using his first name. “Duane obviously did not know what his son was talking about.”
Davis’ lawyers also used his first name Monday, asking Kierny to consider what they called “the obvious question.”
“If Duane is so dangerous, and the evidence so overwhelming,” they wrote, “why did (police and prosecutors) wait 15 years to arrest Duane for the murder of Tupac Shakur?”
Prosecutors point to Davis’ own words since 2008 — in police interviews, in a 2019 tell-all memoir and in the media — that they say provides strong evidence that he orchestrated the September 1996 shooting.
Davis’ attorneys argue that his descriptions of Shakur’s killing were “done for entertainment purposes and to make money.”
Davis, originally from Compton, California, is the only person still alive who was in the car from which shots were fired in the drive-by shooting that also wounded rap music mogul Marion “Suge” Knight. Knight is now serving 28 years in a California prison for an unrelated fatal shooting in the Los Angeles area in 2015.
Davis’ attorneys noted Monday that Knight is an eyewitness to the Shakur shooting but did not testify before the grand jury that indicted Davis ahead of his arrest arrest Sept. 29 outside his Henderson home. Las Vegas police had served a search warrant at the house in mid-July.
Davis has pleaded not guilty to murder and has been jailed without bail at the Clark County Detention Center in Las Vegas, where detainees’ phone calls are routinely recorded. If convicted at trial, he could spend the rest of his life in prison.
Davis maintains he was given immunity from prosecution in 2008 by an FBI and Los Angeles police task force investigating the killings of Shakur in Las Vegas and rival rapper Christopher Wallace, known as The Notorious B.I.G. or Biggie Smalls, six months later in Los Angeles.
DiGiacomo and Palal say any immunity agreement was limited. Last week, they submitted to the court an audio recording of a Dec. 18, 2008, task force interview during which they said Davis “was specifically told that what he said in the room would not be used against him, but (that) if he were talk to other people, that could put him in jeopardy.”
Davis’ attorneys responded Monday with a reference to the publication 12 years ago of a book written by former Los Angeles police Detective Greg Kading, who attended those interviews.
“Duane is not worried,” the attorneys said, “because his alleged involvement in the death of Shakur has been out in the public since … 2011.”
This is The Legal Beat, a weekly newsletter about music law from Billboard Pro, offering you a one-stop cheat sheet of big new cases, important rulings and all the fun stuff in between.
This week: A judge clears French Montana of copyright infringement but sympathizes with his accuser; T.I. and his wife face the latest sexual assault accusations to rock the music industry; Cher battles with her son over a potential conservatorship; and much more.
THE BIG STORY: French Montana’s “Technical” Copyright Victory
Imitation might be the “sincerest form of flattery,” but it isn’t always copyright infringement. That was the key takeaway from an unusual federal court ruling last week, in which a judge dismissed a copyright lawsuit against French Montana – but almost seemed to regret that she had to do so?
The case against French (Karim Kharbouch) was filed by a little-known Chicago artist named Hotwire The Producer (Eddie Lee Richardson), who claimed the star rapper’s 2013 hit “Ain’t Worried About Nothin’” featured an unlicensed sample of his earlier song “Hood Pushin’ Weight.”
In a decision Thursday, Judge Nancy L. Maldonado ruled that French’s song did not technically infringe the rights that Richardson had secured – he registered only the copyright to a sound recording, not the underlying musical composition. But she also expressed “great sympathy” for Richardson, lamenting that he had failed to fully register his copyrights and saying that the outcome of the case “might have been very different” if he had.
“If it is any consolation, imitation is the sincerest form of flattery, and the Court hopes that Richardson will not be deterred in his musical endeavors, now armed with a better understanding of copyright law,” Judge Maldonado wrote. “As it is, though, Richardson’s evidence in this particular case is insufficient to establish copyright infringement.”
For more on what the judge had to say in her opinion — including advising French not to celebrate too much over a “technical win” – go read our full story.
Other top stories this week…
T.I. SEX ASSAULT CASE – The rapper and his wife Tiny were hit with a civil lawsuit claiming they drugged and sexually assaulted a woman they met in a Los Angeles nightclub in 2005. In the complaint, lawyers for the unnamed Jane Doe accuser said that T.I. (Clifford Harris) and Tiny (Tameka Harris) gave her a spiked drink after she was introduced to them in the VIP section of a club, then brought her back to their hotel room where they “forced her to get naked” and assaulted her. In a statement to Billboard, the couple “emphatically and categorically” denied the allegations and vowed to fight back against a lawsuit that they said the plaintiff had been threatening to file for years.
JIMMIE ALLEN ATTORNEY SHAKEUP – More than six months after Jimmie Allen was hit with a pair of sexual assaults, news broke that the country star was parting ways with the legal team that’s been representing him (from the Tennessee law firm Baker Donelson) in the cases. The move to swap lawyers quickly prompted objections from his accusers, who say he’s obstructing the progress of the litigation by “moving through attorneys.”
CHER FIGHTS SON OVER CONSERVATORSHIP – A Los Angeles judge declined to immediately put Cher’s son (Elijah Blue Allman) into a legal conservatorship – an arrangement she is seeking over his opposition — but said he would take up the issue again later this month. Cher petitioned for the conservatorship late last year, arguing that Elijah’s struggles with addiction and mental health have left him unable to manage his money and potentially put his life in danger by making him able to buy drugs.
TUPAC MURDER BAIL BATTLE – A hearing is set for Tuesday over whether Duane “Keffe D” Davis, the former Los Angeles-area gang leader charged with orchestrating the killing of hip-hop music legend Tupac Shakur, should be released on bail. The proceedings had initially been scheduled for last week, but were delayed after prosecutors raised new arguments for why Davis poses a threat to the public if he is released.
MAREN MORRIS DIVORCE SETTLED – Maren Morris reached a settlement to resolve her divorce proceedings against singer/songwriter Ryan Hurd, her husband of five years. Under the terms of the deal, Morris, 33, will pay Hurd, 37, $2,100 per month in child support as the two evenly split time with their three-and-a-half-year-old son, Hayes Andrew. Most of the rest of the settlement was stipulated in a prenuptial agreement, which the couple signed in 2018 and updated in 2022.
Bailee Madison — best known as an actor for her roles in films and TV shows including Pretty Little Liars: Original Sin, Just Go With It, The Strangers: Prey at Night and A Week Away — has signed with Jonas Group Entertainment’s Red Van Records ahead of the release of her upcoming song, “Kinda Fun,” […]
Mexican American artist Xavi has signed with WME for global representation in all areas, as reported by Billboard last week. The last few months have been pivotal for the 19-year-old singer-songwriter (born Joshua Xavier Gutiérrez) who kicked off 2024 with his first No. 1 on any Billboard chart thanks to his romantic corrido “La Diabla,” […]
Universal Music chairman/CEO Lucian Grainge has released his annual New Year’s memo to staff today (Jan. 9), and used the moment to largely congratulate the world’s largest music company on what was, by many metrics, a huge year for the label and publishing conglomerate.
In his 2,500 word note, obtained by Billboard, Grainge went over many of the points that he raised in his New Year’s note in 2023, when he called for an “updated model” for the music industry, calling for streaming royalty reform in the face of increased fraud and a flood of non-artist music on platforms, and a forward-looking policy in confronting the challenges and opportunities brought by AI, including government protections for copyright and creators. And in this year’s letter, he touted UMG’s achievements on those fronts in the past year, citing the “several global platforms, including the world’s largest music platform, have already adopted artist-centric principles that will transform the way artists are compensated for their work,” referencing new royalty models proposed by Deezer, Spotify and others.
And on the AI front, Grainge cited UMG’s Responsible AI initiative, which lobbied the U.S. Congress on behalf of creators in protecting their works, as well as UMG’s partnership with YouTube to allow artists to develop tools to be able to utilize the advances that AI has brought. Grainge also mentioned UMG’s efforts in the spaces of health and wellness, climate change, sustainability and societal change, through its many task forces and foundations that have fought to promote and donate to coalitions that have helped feed the homeless, promote initiatives that use music to contribute to improved mental and physical health and other initiatives, including increased health care opportunities for musicians and their families.
And he also touted the massive success of UMG’s artists, publishing clients and labels, which dominated year-end charts, including Billboard’s. “To put it succinctly: UMG is the most successful company in the history of the music industry and every one of us should be enormously proud of what we have accomplished together, let alone what I know we will accomplish going forward,” Grainge wrote.
In shifting towards the future, Grainge first noted that UMG had continued its global expansion in the past year, particularly through the expansion and restructuring of distribution company Virgin Music Group, in the Middle East/Northa Africa, Thailand, India and China, to name a few. That is a plan that Grainge says promises to continue: “We will keep growing our presence around the world by doing just what we do in more established music markets: signing and developing local artists; providing local labels and entrepreneurs with global promotion, distribution, and a full suite of artist services; and acquiring local labels, catalogs and artist services businesses.”
In terms of other plans for 2024, Grainge notes that “both the pace of change and our industry leadership will increase significantly.”
In his 2023 note, Grainge wrote about the importance of addressing streaming royalty reform and making sure artists get their deserved share of the royalty pie; in 2024, he’s focused more on “grow[ing] the pie for all artists, by strengthening the artist-fan relationship through superfan experiences and products.” Grainge says that will be accomplished both through internal improvements and through partnerships with various platforms. And he promised to continue their already-underway push in protecting and promoting creators’ voices in the AI discussion.
“In short,” Grainge writes, “We are creating the blueprint for the labels of the future.”
What that blueprint may look like is still to come, however; Grainge also notes that the company will “further evolve our organizational structure,” suggesting that changes to how the overall company operates are on the horizon.
“As you know, over the past several years, we have been investing in future growth, not just expanding geographically and leveraging new technologies, but building our e-commerce and D2C operations,” Grainge writes. “In 2024, as we continue our industry-leading investments in A&R and artist development, we will further evolve our organizational structure to create efficiencies in other areas of the business, so we can remain nimble and responsive to opportunities as they arise, while also taking advantage of the benefits of our scale. In the face of so much change and opportunity, standing still is never an option.”
Read Grainge’s full New Year’s note to staff below.
Dear Colleagues,
Happy New Year! I want to express my deepest gratitude to every one of you for all of your hard work and also to take a few moments to review with you some of the highlights of 2023 and preview some of what’s to come in 2024.
Once again, 2023 saw Universal Music lead the industry in all major financial and competitive performance metrics, at the same time our artists broke records and topped the charts around the world. To put it succinctly: UMG is the most successful company in the history of the music industry and every one of us should be enormously proud of what we have accomplished together, let alone what I know we will accomplish going forward.
In fact, even beyond our artists’ extraordinary achievements and our financial results, there was so much more to be proud of this year.
By the beginning of 2023, it had become obvious that if the industry were to continue to thrive and the value of our artists’ work respected, a number of critically important issues would have to be confronted. As the industry leader we had a clear vision of how to address these issues. And then we went out and took bold steps to turn that vision into reality.
Last January, for example, I wrote to you about the streaming royalty model. A new model was needed, one that would properly reward the artist-fan relationship and disincentivize fraud and gaming the system. Because artists are at the center of everything we do, we called it the “Artist-Centric Model.”
I’m proud to say that in just a matter of months, several global platforms, including the world’s largest music platform, have already adopted artist-centric principles that will transform the way artists are compensated for their work. In the coming months, I believe you will see more platforms adopting these principles. Why? Because it is the right thing to do both for artists and for the wider music ecosystem. As this new model becomes widespread, the impact will be profound: a healthier, more equitable and more vibrant music ecosystem that rewards all artists — be they major, indie or DIY — at all stages of their careers.
In the same way, we showed the industry the way forward when it came to confronting the challenges and opportunities of AI.
Early on in 2023, many “experts” viewed AI as a looming threat. Our view? Just as we had done with so many other previous proclamations of doom, we rejected that short-sighted appraisal. On the contrary, we saw AI as presenting opportunities. And then, just as we did with streaming, we went out to turn those opportunities into reality.
We launched our Responsible AI initiative this year with two goals in mind. First, to lobby for “guardrails,” that is public policies setting basic rules for AI. In the U.S., for example we are lobbying for legislation that would establish a federal right of publicity to harmonize the protections of artists’ image, likeness and voice from AI deepfakes. We were the first music company to call upon the U.S. Congress to protect artists against unethical uses of AI.
Our second goal was to forge groundbreaking private-sector partnerships with AI technology companies. In the past, new and often disruptive technology was simply released into the world, leaving the music community to develop the model by which artists would be fairly compensated and their rights protected. In a sharp break with that past, we formed a historic relationship with our longtime partner, YouTube, that gives artists a seat at the table before any product goes to market, including helping to shape AI products’ development and a path to monetization.
Because we fundamentally believe the best way to ensure responsible AI development is through partnership and market-led solutions, in addition to YouTube, we are collaborating with several platforms on numerous opportunities and approaches — always with artists at the forefront of our thinking. In addition, our artists have begun working with some of the latest AI technology to develop tools that will enhance and support the creative process and produce music experiences unlike anything that’s been heard before. And to leverage AI technology that would benefit artists, we continue to strike groundbreaking agreements with, among others, Endel and BandLab.
We also advanced our initiatives in areas from health and wellness to sustainability and the environment.
The intersection of music and health is another exciting area about which I am especially passionate. We’ve all had experiences in which music changed our mood or comforted us in times of emotional crisis, or even helped us physically. In fact, it’s one of the reasons why so many of us have chosen to spend our careers in music. I’ve long wanted the powerful relationship between music and health to be more than a handful of subjective observations and anecdotes so that it could become a key component of our strategy.
Building upon our success in creating a robust commercial category in fitness, we’re now leading the industry in music and health. In September, we produced the first-ever Music + Health Summit where we brought our artists together with health entrepreneurs and leading neuroscientists to advance this new category. This came on the heels of us entering into a series of more than 40 license agreements to amplify the possibilities in this space. For example, we are pioneering a new category that we call “prescription music,” an evidence-based health technique built on scientific and medical research. What excites me is that it’s cost-effective, non-invasive and drives truly beneficial results. While it’s a field still in its infancy, this area will become an increasingly important component of our strategy.
In the same spirit of promoting positive change in society, our employees also accomplished amazing things. Throughout 2023, our All Together Now Foundation, Task Force for Meaningful Change, Green Team, Unhoused Coalition, and Employee Matching Program contributed to more than 500 organizations around the world, and supported over 1.2 million meals for those in need.
Moreover, in the more than three years since we established a groundbreaking relationship with the non-profit Music Health Alliance (MHA), 500 UMG and UMPG recording artists, songwriters and their families in the U.S. have received life-changing medical care. With this year’s dramatic jump in the need for mental health care within the artist and songwriter community, the MHA partnership significantly increased its support in that area.
Our efforts to move the industry on issues concerning sustainability and the environment led UMG and Bravado to host the first music industry sustainability summits in L.A., London, and New York. The series brought together industry leaders and innovators who made commitments to institute sustainable solutions across a range of categories including events, merchandise, touring and more. We co-founded the Music Industry Climate Collective, the new music industry alliance to address global climate change. And we became the first standalone major music company to win the approval of its greenhouse gas emission reduction targets by the Science Based Targets initiative, the gold standard for establishing corporate climate goals.
All of these initiatives are of course ultimately powered by the success of our artists and songwriters and the support that our employees around the world provide them. So let’s turn to the achievements of our artists and songwriters which were nothing short of astounding in 2023. Here are just a few examples.
Globally in 2023, UMG had:
On Spotify: Six of the Top 10 global artists: Taylor Swift (at No. 1), The Weeknd, Drake, Feid, Karol G and Lana Del Rey.
On Apple Music: 13 of the Top 20 most-streamed songs globally, with Morgan Wallen’s “Last Night” at No. 1.
On Deezer: The three most-streamed artists worldwide with The Weeknd, Taylor Swift and Imagine Dragons.
On YouTube: Three of the Top 5 songs, with Toosii’s “Favorite Song” at No. 1.
On Vevo: Karol G was the ‘Most Watched Artist’ for the third consecutive year.
On Amazon: The top two artists (Taylor Swift and Morgan Wallen), three of the Top 5 songs and albums, and the world’s most requested artist on Alexa (Taylor Swift).
And to break it down by region:
On Spotify: The four most-streamed artists in the U.S.: Taylor Swift, Drake, Morgan Wallen and The Weeknd.
On Apple Music: Five of the top seven songs in the U.S., with Morgan Wallen’s “Last Night” (at No.1), and “You Proof”; Drake & 21 Savage, “Rich Flex” and “Spin Bout U”; and Lil Baby “Freestyle”.
On the Billboard 200: Six of the Top 10 albums—Morgan Wallen’s One thing At A Time (No. 1), Taylor Swift’s Midnights (No. 2), Drake, 21 Savage’s Her Loss, Metro Boomin’s Heroes & Villains, Morgan Wallen’s Dangerous: The Double Album and Taylor Swift’a Lover;
Republic Records was named Billboard’s top label for the third consecutive year.
In the UK, according to the Official Charts Company, UMG had seven of the Top 10 artists, including Taylor Swift at No. 1, Drake and The Weeknd in the top five.
Also in the UK, UMG had all of the three nominees for the prestigious 2024 BRITs Rising Star award, with Island’s The Last Dinner Party taking the award, marking the third consecutive year a UMG artist has won.
In Germany, after having ALL of the Top 10 albums for a week in mid-November, a feat never before accomplished by any company; UMG finished the year with six of the Top 10 albums.
In Japan, UMG had five of the Top 10 albums according to Billboard Japan, including King & Prince at No. 1, while Ado’s single “Show” held the top spot on the weekly streaming chart for 14 consecutive weeks to finish the year.
In France, UMG had five of the Top 10 tracks overall, and three of the Top 5 tracks on Apple Music.
In Australia, UMG had the No. 1 album for 34 weeks this year, with albums from Taylor Swift, Sam Smith, Morgan Wallen, Lana Del Rey, Metallica, Peach PRC, Lewis Capaldi, Niall Horan, G Flip, Powderfinger, Olivia Rodrigo, Drake, Troye Sivan and The Rolling Stones.
In Canada, UMG had eight of the Top 10 albums, including albums from Morgan Wallen at No. 1, Taylor Swift, Metro Boomin, and The Weeknd, and held the No. 1 album for 33 weeks this year.
UMG Sweden’s Loreen won the Eurovision Song Contest with her single “Tattoo” and UMG Sweden had five of the Top 10 artists on Spotify.
At the Latin Grammys, Karol G swept three major awards, including Album of the Year, and Juanes won Best Pop/Rock Album, marking his 25th Latin Grammy award.
Feid continued his massive rise in 2023, as the third most-streamed Latin artist on Spotify, while Sebastián Yatra was recognized as “Artist of the Year” at the 2023 RIAA Honors.
In China, Wu Qingfeng’s Mallarme’s Tuesday won “Album of the Year” at the Golden Melody Awards.
In Indonesia, “Tak Segampang Itu” by Anggi Marito was the top song of the year on Spotify.
Juan Karlos became the first artist from the Philippines to enter the Top 100 Global Spotify Charts with his song “Ere,” which was No. 1 in the Philippines for 10 weeks.
Our Universal Music Publishing Group songwriters also performed spectacularly:
On Spotify’s 2023 most-streamed artists globally, we had four out of the Top 5 (Taylor Swift, Bad Bunny, The Weeknd and Drake) and seven out of the Top 10.
On Spotify’s most-streamed albums globally, we had four of the Top 5 (Bad Bunny, Taylor Swift, SZA, The Weeknd) and seven of the Top 10.
On Apple Music: UMPG had an interest in seven of the Top 10 most-streamed songs in the U.S.
On Billboard’s Hot 100 Songwriters in the U.S., UMPG had three of the Top 5 with Taylor Swift, Jack Antonoff and SZA.
In total, a spectacular performance. We should all be so proud of our artists and songwriters and the work we do to bring their music to the world.
In 2023, we also continued our strategy to expand our presence in high growth markets around the world — both through the strength of our companies in those regions as well as the expansion of Virgin Music Group.
We acquired Chabaka Music, a leading MENA-based company, as well as a majority stake in RS Group in Thailand.
In India we strengthened our position domestically with an exclusive partnership with Represent, a leading management company.
In China we signed new long-term agreements with superstar Eason Chan and with 2022’s No. 1 IFPI global album seller Jay Chou, that includes his JVR Music label.
Looking to 2024, both the pace of change and our industry leadership will increase significantly. We’ll be moving quickly and meaningfully on many different fronts.
Our pioneering artist-centric strategy will extend its reach. We first focused on a fairer way to allocate the streaming pie among real artists by addressing fraud and other aspects that deprive artists of their just compensation. The next focus of our strategy will be to grow the pie for all artists, by strengthening the artist-fan relationship through superfan experiences and products. We are already in advanced discussions with our platform partners regarding this phase and will have more to announce in the coming months. In addition, we will be building our in-house capabilities through groundbreaking partnerships that will accelerate our artists’ ability to create experiential, commerce and content offerings for their fans. In short, we are creating the blueprint for the labels of the future.
As for AI, we will continue building opportunity for our artists, while also leading the fight to protect them from unethical uses of this technology. And all around the world, we will continue to prioritize and fight for policies in the service of artistry — not at the expense of it. We also expect to announce more real-world commercial applications for artist-driven, ethical AI.
We will keep growing our presence around the world by doing just what we do in more established music markets: signing and developing local artists; providing local labels and entrepreneurs with global promotion, distribution, and a full suite of artist services; and acquiring local labels, catalogs and artist services businesses.
As you know, over the past several years, we have been investing in future growth, not just expanding geographically and leveraging new technologies, but building our e-commerce and D2C operations. In 2024, as we continue our industry-leading investments in A&R and artist development, we will further evolve our organizational structure to create efficiencies in other areas of the business, so we can remain nimble and responsive to opportunities as they arise, while also taking advantage of the benefits of our scale.
In the face of so much change and opportunity, standing still is never an option.
We must continue to fight for our artists and songwriters and stand up for the creative and commercial value of music.
Our vision of the future is filled with possibilities, and acting on our strategy will make those possibilities real — for our artists, our employees, our shareholders and the entire music ecosystem.
I promise 2024 will be an extremely exciting and transformative year for our company.
Lucian
Did You Get the Memo? Read Last Year’s Note From Lucian Grainge
LONDON — Paid-for streaming revenues grew to a record high of £1.86 billion ($2.4 billion) in the United Kingdom last year, helping drive a 9.6% rise in overall music spending, according to year-end figures from the Digital Entertainment and Retail Association (ERA).
In 2023, British music fans spent a total of £2.2 billion ($2.8 billion) on music purchases via subscriptions to music streaming services like Spotify and Apple Music, and vinyl and CD purchases. That’s more-or-less equal to 2001’s total, the historic peak of the CD era, when U.K. music sales stood at just over £2.2 billion, reports ERA. When compared to 2019, the last full year pre-pandemic, music sales have climbed by almost 39% in the space of four years.
Driving the growth was a 9.8% year-on-year rise in subscription streaming revenues, while spending on physical formats was up 10.9% to £311 million ($395 million) the London-based organization says in its preliminary annual figures published on Tuesday (Jan. 9).
Breaking down physical music revenues, vinyl album sales grew 18% to £177 million with Taylor Swift’s 1989 (Taylor’s Version), The Rolling Stones’ Hackney Diamonds and Lana Del Rey’s Did You Know There’s A Tunnel Under Ocean Blvd among the year’s best-selling titles.
Despite CD sales falling 7% year-on-year in volume terms to 10.8 million units, revenue from the long-written-off format actually rose 2% in 2023 to £126 million ($160 million), marking the first increase in CD revenue in two decades.
ERA says the growth can be attributed to the format’s continued popularity among dedicated music fans, keen to buy their favorite artists in multiple and deluxe formats, as well as a rise in the number of Gen Z and Millennials buying CDs.
This Life by British pop group Take That was 2023’s top CD album in the U.K. with just over 127,000 units sold. Swift’s 1989 (Taylor’s Version) was the year’s second most popular CD release.
Streaming now makes up more than 88% of all music sales in the U.K., compared to 64% five years ago, with physical formats accounting for 9.4% of today’s market, according to labels trade body BPI, which released its year-end listening figures last week.
BPI reports that more than 179 billion music tracks were streamed in the U.K. in 2023, up 12.8% on the previous year’s total, with the equivalent of 182.8 million albums streamed or purchased in 2023 across digital and physical formats, up 10% on the previous 12 months.
In a statement, ERA CEO Kim Bayley said the year-end figures represented a “red letter day” for the U.K. music industry with the rise in revenues “a testament not just to the creativity of artists, but to the entrepreneurial drive of digital services and retailers.”
Although both ERA and BPI use Official Charts Company sales data as the basis for their reporting, the two organizations take different approaches to measuring the health of the recorded music business. ERA’s figures are based on retail spending in the U.K., whereas BPI’s measure music consumption levels. (ERA’s subscription streaming numbers are estimates based on information provided by digital services and label trade income reported to BPI). BPI and ERA are both due to publish their full annual reports later in the year.
Overall, revenues across the U.K. entertainment market – comprising of music, video and games retail sales – were up 7% on 2022’s total to a record high of £11.9 billion ($15.1 billion), marking the eleventh successive year of growth. Streaming and digital services accounted for almost 92% of entertainment revenue, reports ERA.
Of the three sectors, recorded music sales are in third place, trailing both games and video (comprising of video-on-demand subscription services such as Netflix and DVD sales), which totaled £4.7 billion ($6 billion) and £4.9 billion ($6.2 billion) respectively.
The U.K. is the world’s third biggest recorded music market behind the U.S. and Japan with sales of just under $1.7 billion in trade value, according to IFPI’s 2023 Global Music Report.
On Wednesday, Jan. 31, the Recording Academy’s Producers & Engineers Wing will come together with its Songwriters & Composers Wing at the Grammy Museum in downtown L.A. to host “A Celebration of Craft.” The event will honor Leslie Ann Jones, a seven-time Grammy winner and the first woman chair of the Recording Academy’s board of trustees (1999-2001), who has been a top recording and mixing engineer and record producer for more than four decades.
The celebration — a first joint Grammy Week event for the Academy’s craft wings — will kick off the Academy’s official events in the lead-up to the 66th annual Grammy Awards.
The event will also shine a light on this year’s nominees for songwriter of the year, non-classical.
“I’m so excited for our Producers & Engineers and Songwriters & Composers Wings to come together for A Celebration of Craft later this month,” Harvey Mason jr., CEO of the Recording Academy, said in a statement. “I look forward to joining with music people from both of these communities to kick off our Grammy Week celebrations.”
Maureen Droney, vp of the Producers & Engineers Wing, added in a statement: “From her decades-spanning recording career to her work as former chair of the Recording Academy’s board of trustees, a co-chair of the P&E Wing, and much more, Leslie Ann Jones has always been committed to the music community and to excellence in recording.”
In her statement, Susan Stewart, MD of the Songwriters & Composers Wing, said: “A Celebration of Craft will mark the first Grammy Week event for the Songwriters & Composers Wing since our Wing was founded in 2021, and we could not be more enthusiastic to come together with our community for an evening dedicated to celebrating their creativity.”
Jones has held staff positions at ABC Recording Studios in Los Angeles, the Automatt Recording Studios in San Francisco, Capitol Studios in Hollywood, and now Skywalker Sound, where she records and mixes music for records, films, video games and TV and produces records, primarily in the classical genre.
Jones, the daughter of famed comedy recording star Spike Jones, serves on the advisory board of Institute for the Musical Arts and on the board of directors of the Game Audio Network Guild (G.A.N.G.). She is also an artistic advisor to the Technology and Applied Composition degree program at the San Francisco Conservatory of Music.
Jones was inducted into the NAMM TEC Hall of Fame in 2019 and was the recipient of the 2022 G.A.N.G. Lifetime Achievement Award. She is also a member of the Library of Congress’ National Recording Preservation Board.
Grammy Week culminates with the 66th annual Grammy Awards at Los Angeles’ Crypto.com Arena on Sunday, Feb. 4. The ceremony will be broadcast live on CBS and stream live and on-demand on Paramount+ at 8-11:30 p.m. ET/5-8:30 p.m. PT.
Warner Music Group and Red Light Management have entered into a strategic partnership designed to help Red Light artists better target the world’s second-biggest music market, Japan.
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Under the pact, Warner Music Japan’s international marketing and ADA divisions will work with Red Light to build a marketing and label channel for Red Light artists. They will also work to foster collaboration between Red Light artists and domestic performers in Japan.
The partnership kicks off with the promotion of Ghostly Kisses, the musical project of French-Canadian singer-songwriter Margaux Sauvé, who is signed to British label Akira Records. She performed for the first time in Tokyo in December ahead of her new album release set for early this year.
Red Light Management’s roster of artists, writers and producers includes Dave Matthews Band, Punctual, Enrique Iglesias, Brittany Howard, Lady A, Lionel Richie, Interpol, ODESZA, Phish, The Strokes, Sabrina Carpenter, Chris Stapleton, Danny L Harle and Lewis Thompson.
James Sandom, managing partner at Red Light Management, said in a statement, “We’re super excited to partner with Warner Music on this initiative to help our artists with a dynamic new route into Japan. The Japanese market has unique characteristics, a landscape requiring bespoke attention and knowledge of the local music and entertainment sector. Bringing this knowledge together with our artists will help them build fan communities in this special market, with the aim of enabling a new generation of artists to find success in Japan.”
Kaz Shimada, COO of Warner Music Japan, added, “In recent years we have worked hard to help international artists connect with local fans as we transitioned from physical to digital. This exciting new partnership is another significant step forward, as we combine our experience promoting some of the biggest global stars in Japan with Red Light Management’s super-talented managers and amazing roster of artists.”
SoundCloud has been eyeing a sale — and actively pursuing initiatives internally “that would increase the valuation of the company” — since the second half of 2022, according to two former employees who spoke to Billboard on the condition of anonymity. Meanwhile, COO and CFO Drew Wilson is preparing to leave the company after nearly three years in the role, according to a staff memo obtained by Billboard.
Sky News reported on Sunday that SoundCloud was planning to pursue a sale in 2024. This has been in the works “for some time,” one former employee tells Billboard. “A lot of decision making has been based on this.”
SoundCloud announced it was slashing 8% of its workforce last May — less than a year after a 20% cut — to achieve “profitability this year,” as CEO Eliah Seton wrote in an email to staff at the time. “The ambition to reach profitability was not just for the obvious reason of being profitable,” the former employee continues. “The bigger need was for this, to sell the company. The stakeholders have major investments; it’s time.” (SoundCloud previously secured a $170 million investment led by The Raine Group and Temasek in 2017, and an additional $75 million investment from SiriusXM in February 2020.)
A rep for SoundCloud declined to comment. The Raine Group also declined to comment.
SoundCloud leadership had previously tossed around the idea — a best case scenario — of reaching a $2.5 billion valuation for the company, sources said. (The company likes to aim big: In internal meetings, executives also expressed a hope that one of the artists SoundCloud signed to deals in 2022 would have a major chart hit, one of the employees said; this has not happened.)
The more commonly cited valuation goal, the sources say, was around $1 billion. “There’s a billion-dollar-plus opportunity in front of us,” Tracy Chan, who joined SoundCloud as senior vp of creator in 2022, said at an all-hands meeting that year. One of SoundCloud’s former employees said most of the interest in the company came from private equity firms, not music companies.
For comparison’s sake, when Square acquired TIDAL in 2021, the streaming service was valued at around $375 million. Though SoundCloud is not just a streaming service — it also provides tools to creators to help them distribute, market, and monetize music. Creator tools and services brought in more than $26 million for the platform in the first quarter of 2023, according to screenshots from an all-hands meeting shared with Billboard, nearly as much as subscriptions ($29.9 million).
Those screenshots indicate that SoundCloud had a gross profit of around $22 million in the first quarter of the year. But it spent around $4 million on marketing and another $23 million on staffing and general and administrative expenses, leaving it around $5 million short of breaking even.
In May 2023, SoundCloud aimed to reduce that headcount cost through a second round of cuts. (Profitability has been a goal since 2022, if not before: “Investors are looking for companies that are a little more stable right now,” former CEO Michael Weissman told staff during an all-hands meeting that followed the first round of layoffs in 2022. “Investors are looking for companies that are very profitable.”) The company said it finally reached profitability in December.
“Now that we have achieved profitability and are making progress on our strategic plan, we have nothing but opportunity in front of us,” Seton wrote in an email to staff on Monday (Jan. 8) that was obtained by Billboard. “As we have mentioned in previous All Hands [meetings] and AMAs, we will explore a range of options for our capital structure, but there is nothing to report right now, nor will there be any time soon.”
Radio company Audacy has reached a deal with a supermajority of lenders for a prepackaged Chapter 11 bankruptcy deal that will reduce its debt from $1.9 billion to $350 million, the company announced Sunday (Jan. 7). The agreement, first disclosed last week by The Wall Street Journal, will give Audacy’s debt holders equity in the reorganized company.
Chapter 11 proceedings began on Sunday in the United States Bankruptcy Court for the Southern District of Texas. Audacy filed a proposed plan of reorganization that incorporates the terms of the agreement with lenders. The company expects the court to hold a confirmation hearing in February and to exit bankruptcy proceedings once it receives FCC approval.
Some of Audacy’s lenders have committed to providing $57 million in debtor-in-possession financing — $32 million from a term loan and $25 million from an increase in an existing accounts receivable financing facility. The financing, along with the company’s cash from operations, will help Audacy maintain its operations and pay its employees, vendors and partners.
Once the plan is approved by the court, the terms of the current board of directors will expire and a new board of directors will be assigned. The plan of reorganization calls for the new board of directors to adopt a management incentive plan to reward employees and directors of the reorganized company. The plan will set aside 10% of new common stock for stock options, restricted stock, appreciation rights and other equity-based awards.
A 2017 merger with CBS Radio helped Audacy — then named Entercom — expand its business but also increased its debt load. The interest payments would have been more manageable in a growing business, but “the perfect storm of sustained macroeconomic challenges over the past four years facing the traditional advertising market has led to a sharp reduction of several billion dollars in cumulative radio ad spending,” David J. Field, Audacy chairman/president/CEO, said in a statement. “These market factors have severely impacted our financial condition and necessitated our balance sheet restructuring.”
The Philadelphia-based company’s portfolio of about 230 radio stations includes WCBS in New York, KROQ in Los Angeles, WFAN Sports Radio in New York and WBBM Newsradio in Chicago. Audacy’s podcasting brands include two studios, Cadence13 and Pineapple Street Studios, and Popcorn, an online marketplace for connecting creators and brands.
Sunday’s announcement eliminated nearly half of Audacy’s remaining equity value as the company’s share price fell 47.1% to $0.1058 on Monday. Audacy has traded over the counter since it was delisted from the New York Stock Exchange in May. A 30-for-1 reverse stock split increased the share price from $0.07 to $2.13 on June 30, but the stock lost nearly all its value over the next six months as financial problems mounted.