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True to its title, Brenda Lee‘s “Rockin’ Around the Christmas Tree” — which just notched its second straight week at No. 1 on the Billboard Hot 100 — brings in some serious green over the holiday season.
Billboard estimates that in 2022, the enduring holiday hit racked up $2.7 million in master recording revenue for Lee and her label, Universal Music Group, and $1.274 million in publishing revenue, totaling nearly $4 million, on the strength of 464 million on-demand streams and 25,000 track downloads.
So far this year, Billboard estimates the master recording has garnered $1.6 million in revenue and about $700,000 in publishing revenue, or $2.3 million total, on the strength of 301 million on-demand global streams and 16,000 track downloads.
In the United States last year, “Rockin’ Around The Christmas Tree” generated nearly 1.75 million song consumption units (track downloads and on-demand streaming), while it has so far accumulated 967,000 song consumption units (and, within that, 301 million on-demand streams) in 2023.
But there’s still plenty of holiday season left — and when you compare the 49-week period that has elapsed so far this year with the same period in 2022, it’s clear that “Rockin’” is on track to surpass last year’s total. The song’s 967,000 song consumption units to date in 2023 is far ahead of last year’s 807,000 song consumption units (and 195 million streams) at the same point. (Luminate doesn’t compile global song consumption units).
“Rockin’ Around the Christmas Tree” was solely written by the late Johnny Marks, whose publishing company, St. Nicholas Music, would get the publishing revenue. Marks wrote a number of other holiday favorites including “Rudolph the Red-Nosed Reindeer,” “A Holly Jolly Christmas,” “Silver and Gold” and “I Heard the Bells on Christmas Day.”
The above estimates don’t include whatever royalties come in from licensing the song to Christmas compilation albums; while the publishing total doesn’t include whatever revenue is generated from cover versions.
After splitting with her original record label in October, Megan Thee Stallion is entering a new era: A source at Warner Music Group confirmed to Billboard that the artist has signed a distribution agreement with the company that includes services from a select global team.
For years, Megan Thee Stallion was embroiled in a legal battle over the deal she signed early in her career with 1501 Certified Entertainment, which released her music in partnership with 300 Entertainment. (300 was acquired by Warner Music Group in 2021.) In October, the rapper and 1501 “reached a confidential settlement to resolve their legal differences,” making Megan Thee Stallion — who is managed by Roc Nation — a free agent. “I’m so excited to be doing something for the first time independent since it was just me and my mama,” she said during an Instagram Live session.
Artists prize distribution deals because they typically get to retain ownership of their recordings. At the same time, Megan Thee Stallion will still benefit from WMG’s global infrastructure, marketing muscle and longstanding relationships at radio and television. Her team will include some staffers from 300 Entertainment as well as others across the company. (A rep for Megan Thee Stallion did not respond to requests for comment.)
These types of distribution agreements within major label systems have become more common in the modern music industry once artists gain a certain amount of leverage. Some young acts that have fast-climbing viral hits are even able to negotiate similarly favorable agreements right at the start of their careers, which would have been unthinkable a decade ago.
There is a potential downside to these arrangements: Because labels stand to earn less revenue from distribution deals, they may be less incentivized to throw their full weight behind these artists. Still, this is a dream scenario for many artists because it inverts the traditional music industry power dynamic.
Historically, artists handed their recordings over to a label in perpetuity in exchange for an advance and the chance to become a household name. Now it’s possible to have the best of both worlds. “That’s an amazing position to be in, to keep your copyright and still be famous,” says Tab Nkhereanye, a senior vp of A&R at BMG. (BMG has long offered artists licensing deals; in these agreements, ownership of recordings typically reverts back to an artist after a set period, conditional upon recouping the costs of the deal.)
As a result of these shifts in the industry, though, the term “independent” has become so roomy as to be nearly meaningless. It now stretches from an act self-releasing homemade recordings on TuneCore for a handful of fans all the way to Bad Bunny, who fills stadiums and tops charts around the world while enjoying lavish funding from The Orchard, which is owned by Sony Music. Most basketball players probably wouldn’t group together Giannis Antetokounmpo and a decent guy in a local pickup game, but that’s sort of what happens on a daily basis in the music industry. Adding to the confusion — “indie” is now often used to describe a specific style of rock music, regardless of whether it’s released by a major or independent label.
In many cases, “I don’t know that [independent] is really an applicable phrase anymore,” says Lulu Pantin, founder of Loop Legal. “The big distinction is self-funding versus receiving funding from an outside source.” “Now it seems like you’re either an unsigned artist or an independent artist,” adds Todd Rubenstein, founder of Todd Rubenstein Law.
Artists once required a hefty amount of financial support to record, manufacture, distribute, and market their music. Signing with a major record company meant acts had more resources at their disposal, while remaining independent signified a scrappier, bootstrapping approach, usually with a select group of labels — 4AD, for example, or Secretly Canadian. “Releasing on XL at one point was the height of independence,” says Ben Blackburn, who manages girl in red.
The initial outlay required to get a successful artist project off the ground plummeted with the rise of production programs accessible on laptops, digital distribution companies, streaming services, and social media platforms. Artists had a “newfound ability to compete on the same level without [the major labels], and in doing so, the ability to claim more control and literal ownership,” says Nabil Ayers, president of Beggars Group US.
“With digital distribution, artists weren’t going to keep doing perpetuity deals on the master side for five albums and an 18 point royalty,” adds Nick Stern, a longtime artist manager. “It was just a matter of time.”
In the second half of the 2010s, especially during the SoundCloud rap era, it became more common to hear about major labels chasing artists who were already amassing streams by the million. This meant that record companies had to give up a lot for the privilege of being associated with the artists, rather than the other way around.
Today many rising artists and their managers are intent on giving away as little as possible. This means that the major labels have all beefed up their distribution-and-services offerings, making attractive deals like the one obtained by Megan Thee Stallion more prevalent. “All of these major players with power and money decided to head into the [distribution] fray,” says Blackburn.
Sony Music has had the most success with the distribution-and-services model: It runs these deals through The Orchard, which enjoyed a bigger current market share in 2023 than any frontline label other than Republic and Interscope. The Orchard is hardly a loner, though; every major label group has at least one, if not more, distribution companies. (Warner has the Alternative Distribution Alliance, though Megan’s deal doesn’t run through ADA, according to a source with knowledge of the arrangement.)
“There are a lot of options out there for people to find those kinds of deals now that there weren’t even two years ago, and certainly weren’t five years ago when we started,” says J. Erving, a manager and founder of the artist services and distribution company Human Resources (which was acquired by Sony Music in 2020). “Initially a lot of artist managers and executives thought that type of deal was subpar in terms of your ability to have success. Now it’s something that’s sought after.”
A side effect of this new desirability, though, is “there really is no clear delineation of what it means to be truly independent,” Pantin says. “Independence now is a flexible term,” Blackburn adds. “It’s also a commodified term.”
This means the music industry would probably benefit from developing a new vocabulary to distinguish between artists with wildly different levels of financial support. “The record industry is currently lumped into two sectors: the majors and the independents, or ‘the rest,’” Ayers says. “‘The rest’ is actually a very disparate group of interests that don’t belong in a single bucket. We need a better way to describe the growing number of entities out there.”
Rubenstein agrees: “A deal with a major — or major independent label — is different than using a larger distributor that provides limited services, which is different than being your own ‘label’ and just loading your music up via DistroKid and jumping on TikTok,” he notes.
For now, as Blackburn puts it, “independence in the eye of the beholder.”
Last week, during Spanish Broadcasting System’s third quarter earnings call, Albert Rodriguez, the company’s president and COO, announced that he was leaving his post. While the announcement came as a surprise, Rodríguez says that, after 25 years at SBS, he is leaving in good terms.
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“I’m going to stay on as a consultant during the transitioning period,” he told Billboard in his only interview following his announcement. “We’re leaving in excellent terms and I’m very appreciative to Raul [Alarcón],” he added, referring to the chairman and CEO of the company, to whom Rodríguez directly reported to.
Rodriguez is still evaluating his future plans, but will likely launch his own consulting company.
SBS is the formidable Latin media company whose suite of radio stations in the top markets in the U.S. include La Mega in New York, the most-listened to Spanish language radio station in the country, according to Nielsen. SBS also operates the AIRE Radio Networks, a national radio platform of over 300 affiliated stations.
Rodríguez joined the company 25 years ago, initially as a general salesperson, and climbed the ranks. In June, 2021, he was named president, making it the first time in 36 years that the company named a new president, and first time it was led by a non-family member.
Working with Raúl Alarcón, who he calls a “beacon” of the Hispanic community, was a major highlight during his long tenure at SBS.
“The team we built is like family [to me]. We have performed better than all our industry peers,” says Rodríguez. A point of major pride, he says, was the launch of the Aire network, “which has grown immensely in terms of revenue and content and distribution.”
“We served very passionately the Hispanic voice in America,” adds Rodríguez of SBS, noting that despite Hispanics making up 20% of the total U.S. population, they represent only 6% of the U.S. market’s total advertising budget for 2022, according to the Hispanic Marketing Council. Moving forward, he says, “I want to be a leader in developing and increasing share to the multicultural space.”
Datwon Thomas has been named to the newly created role of executive producer, talent, for Dick Clark Productions (DCP). In his role, which takes effect immediately, Thomas will be part of DCP’s in-house talent team, collaborating on talent strategy, relations, bookings and creative, leveraging his experience from his 13-year stewardship of VIBE. Thomas will work out of both the New York and Los Angeles offices.
Thomas will also assume the role of editor-at-large of VIBE, supporting big-picture strategy for the brand. In addition, he will maintain his role as PMC’s vice president, culture and media, building diversity initiatives and programs for the company.
“I am thrilled to start this new chapter in my media and entertainment career,” Thomas said in a statement. “My time as editor-in-chief of VIBE has been incredibly rewarding. I would like to thank my staff of all eras for their hard work and support. Entering this new role is a valued achievement and one I take as an honor. I have been consulting with the DCP team for years, and during that time, my love of the rush of live television has grown. I look forward to getting even more involved in all aspects of great projects with amazing talent.”
“We’re very excited to have Datwon bring his experience and unmatched expertise in hip-hop and R&B to DCP,” Jay Penske, chairman, founder and CEO, Penske Media, and CEO, Dick Clark Productions, said in a statement. “His deep relationships and innate creative sensibilities will be instrumental in shaping the future vision of DCP’s world class portfolio of shows.”
Most recently, Thomas served as VIBE’s editor-in-chief. During this time, he pioneered new initiatives for hip-hop and R&B media and created platforms to showcase and discover emerging and established artists.
Since 2019, Thomas has worked closely with the DCP team as a consulting producer for flagship programs including the American Music Awards, Billboard Music Awards, Academy of Country Music Awards and Dick Clark’s New Year’s Rockin’ Eve with Ryan Seacrest.
Prior to VIBE and PMC, Thomas held positions as the editor-in-chief of hip-hop’s street authority, XXL Magazine, and founder/editorial director of XXL Presents Hip-Hop Soul, among other posts.
Whenever Ed Sheeran has toured Australia and New Zealand, he has partnered with Frontier Touring, the live division of the dominant independent music company, Mushroom Group. And he breaks records with almost monotonous regularity.
He did it with his Divide tour in 2018, which sold more than 1 million tickets in the market, according to Frontier, breaking Dire Straits’ record that had stood since the 1980s. And Sheeran did it again with his most recent trek, The Mathematics Tour, which filled stadiums across the country earlier this year, smashing the all-time ticket sales record on consecutive nights (March 2-3) at the Melbourne Cricket Ground, according to Frontier.
But this year’s tour was different. Mushroom Group’s legendary founder, Michael Gudinski, was not waiting at the airport to greet Sheeran. No Michael to see him off, either, or run amok on the adventures for which the good friends were famous.
“The reason I’m here right now,” Sheeran told the 105,000-strong Melbourne audience on March 2, “is because of an idea that he formed about eight years ago, and said, ‘Ed, you need to play in the round, in the MCG, with a band.’ I’d only started playing stadiums at this point, and I was like, ‘That place is really big. I’ve never played with a band.’ ” But Gudinski “convinced” him, he says, after his Divide tour ended. “I really wish he was here tonight,” Sheeran added.
Michael, the larger-than-life chairman and founder of Mushroom Group, which includes Frontier Touring and more than 20 music company brands, died March 2, 2021, at age 68.
The Mushroom Group and its staff was a family under Michael, and it remains so under his son, Matt, who now helms the company as chairman/CEO.
Michael (left) and Matt Gudinski in 2019.
Mushroom Creative House
Matt, 38, steered the business and its 300 staffers through the pandemic that crushed the live industry. Now Mushroom’s touring and agency activities have bounced back, and business is booming. As the company celebrates its 50th anniversary, Matt has taken the opportunity to look ahead and to remember the company’s achievements and challenges.
Matt had little time to grieve the death of his father. With his appointment to the top job confirmed in April 2021, he hit the ground running. He was at the helm when Mushroom announced its new talent management division, Mushroom Management; a multilayered international pipeline deal with Universal Music’s Virgin Music; the realignment of Frontier Touring; the launch of new booking agency MBA and events/touring company MG Live; and a partnership with hip-hop specialist Valve Sounds.
In 2021, he navigated Mushroom’s break with Harbour Agency, following claims from former staff of past management misbehavior at the agency.
On Nov. 26, dozens of Australia’s leading artists performed at Mushroom’s 50th-anniversary concert at Melbourne’s Rod Laver Arena — a venue where a statue of Michael, holding aloft his finger in the familiar No. 1 gesture, stands outside the entrance. Such Mushroom family acts as Jimmy Barnes, The Teskey Brothers, Amy Shark, The Temper Trap, Vika & Linda, DMA’S, Paul Kelly, Ross Wilson, Kate Ceberano and Missy Higgins joined the event that aired on the Seven Network, performing a mix of originals and classics from across the Mushroom catalog, including “Working Class Man,” “Holy Grail,” “Sweet Disposition,” “Riptide,” “It’s Only the Beginning,” “Before Too Long” and “Living in the 70s.”
The countdown to the concert included the Nov. 24 release of an all-star covers collection, Mushroom: 50 Years of Making Noise, and the theatrical release in August of Ego, The Michael Gudinski Story, a documentary on the executive whose death was mourned by many of the superstars he worked with, from Paul McCartney and Bruce Springsteen to Dave Grohl and Sheeran.
Veteran Mushroom artist Paul Kelly was among those on the bill of a Nov. 26 televised concert to mark the company’s anniversary.
Tim Lambert/Mushroom Creative House
In 1972, when Michael was just 20, he launched Mushroom Records, which soon became Australia’s indie music juggernaut. The company has shaped the country’s music culture like no other brand. Today, Mushroom Group embraces touring, booking agencies, publishing, merchandising/marketing services, venues, exhibition/events production, neighboring rights, branding, labels, talent management and more. (Warner Music acquired and absorbed the Mushroom Records label in Australia over a decade ago.)
“To survive 50 years as an independent music entertainment company is something we’re extremely proud of,” Matt says. “And throughout this year, we’ve tried to celebrate not only the history of the company, but the future.”
What were the first business challenges you took on when your father died?
We were still deep within the pandemic. And there were a lot of unknowns about how the music industry and the wider entertainment industry would move forward and recover from that. Without live music, it was an extremely challenging time for Mushroom Group and its survival. I’m really proud to be sitting here two-and-a-half years on from that, and I can confidently say that the Mushroom Group as a whole is in its best shape it has ever been.
What is your earliest memory of your father at work at Mushroom?
I’d always come into the office from a very young age, after school or even on holiday. We’d be going on tours together, whether it be Jimmy Barnes or Billy Joel. Before I’d even hit double [digits], I had a real passion for it. I was a budding concert promoter and entrepreneur, similar to my dad at a young age.
What was your first job in the music business?
When I was around 12 years old, I started trying to run some different events at different town halls, mostly for [those] under 18 and promoting bands. The first event I did wasn’t that successful; thenI started to hit my stride and was pretty much hooked. When I was about 16, I started getting involved with managing some upcoming artists and began to have influence in the A&R side of the group.
Your father was such a boisterous individual. What’s your management style?
It’s always an open-door policy and very collaborative. My dad was obviously a larger-than-life figure, and maybe some people out there thought that Mushroom was all about him, a one-man band. It was never that, never will be. Now there’s an opportunity for so many great people who’ve been part of the Mushroom Group for a long period of time to build up their profiles and really make a mark on this company and its future. Bringing their vision to life is something I’m very passionate about.
A U.S. No. 1 hit was high on your father’s wish list. What’s on yours?
At the time he had that dream, Australian artists having success [in] the biggest music market, the U.S. — outside of a very select few — was a foreign concept. Now there are so many artists that are making noise, having success globally. International success is a big priority, a big goal of mine. We have some artists who are doing really well, but we’d like them to go even further.
Michael Gudinski in 1979.
Mushroom Group Archive
You’ve recently had Robbie Williams, Paul McCartney, Sam Smith and Paramore tour Australia with Frontier Touring. Foo Fighters are next up. How would you describe the live business right now?
We’ve definitely had the biggest touring period in our history since the return to live. More artists are wanting to come here than ever before, and so many artists are selling more tickets than ever. But there’s still so many challenges to deliver these tours, whether it’s rising costs, economic challenges or just the competitiveness in the market. Everyone’s selling more tickets, but it’s more competitive than ever.
Your father was very proud of you for landing a Drake tour. How did that come about?
Drake was an artist that I was following from quite early and had been trying to get to come to Australia for many years before we finally landed his tour in 2015. It was a coup to get such a global superstar like Drake to tour Australia when we did. And we’ve had a few successful tours with him since then. Bruno Mars was another artist I brought to Australia very early.
Taylor Swift’s last tour in Australia was with Live Nation. Now Frontier Touring is producing her tour, which is scheduled for February.
We’ve worked with Taylor many times before. She loves Australia. And we’re looking forward to hosting her again. To get her back working with Frontier is something that we’re really excited about. I know it would have meant a lot to my dad, who had a great relationship with Taylor. I don’t think we’ve ever seen that demand for a tour like this, not just for Frontier, but for any promoters. For every one person who has bought a ticket to her tour, there are probably another 20 in Australia who want a ticket.
Your father was a relentless traveler and loved it. Is that something you enjoy?
My dad loved getting out there and building relationships, showing up anywhere in the world to see an artist that we worked with or that we wanted to work with. I definitely do the same. Travel in our industry coming out of the pandemic has probably changed a little bit, and the technology has evolved, but that’s how you create, maintain and grow great relationships.
How has Mushroom survived as an independent while so many other indies have gone belly up or been absorbed by multinationals?
The core of Mushroom is to invest in supporting Australian talent and to take it to the world. My dad was big on the saying of being a leader, not a follower. We’ve continued to evolve and adapt; it’s why we sit here with so many different business arms to the Mushroom Group, because we’re not reliant on one. If we were just a record label, we would have struggled to survive to this point. [We’ve been] able to continually evolve and ensure that we’re looking for the next thing, not the current thing. And investing in great people and other great entrepreneurs has really allowed us to stay successful over such a long period of time. Part of what makes us unique is the fact that it is a family affair. So many people at Mushroom have been there a long time. And we’re really an extension of our family. That’s what else has made us survive.
How did your father prepare you to take the reins at Mushroom?
It’s all about reputation in our business. He just instilled into me those key fundamentals: how to ensure that the business moves forward and all the foundations that he’d laid go on for a long time. Mushroom’s success is really down to amazing people, great artists, loyalty and strong overall values. I was lucky enough that for a number of years my dad and I were working closely together, and the Mushroom Group expanded so much over the past 10 years. A lot of the areas we moved into were things that not only were we driving together, but that I was driving and really taking the reins on. I was well prepared to take on the greater responsibility. I’ll always say it: My dad and I love what we did so much because we did it together. It’ll never be the same doing it without him.
Overcoming the Tyranny of Distance
A restructured Frontier touring continues to bring superstars to Australia.
Dion Brant was named CEO of Frontier in 2022.
Ian Laidlaw
Australian promoter Frontier Touring has come roaring back from the 2021 death of founder Michael Gudinski and a pandemic that hobbled the live industry.
“We’ve completed around 160 tours since the restart of touring in mid-2022,” Frontier CEO Dion Brant says. “It has been a strong 18 months,” he adds, noting the company had 44 tours on sale as of early November. According to year-end Billboard Boxscore data, Frontier ranks as the No. 7 promoter worldwide for 2023.
Founded by Gudinski in 1979, Frontier was established on the core value of prioritizing artists and fans. The company has continued to channel this ethos since touring restarted following the health crisis.
In recent months, Ed Sheeran, Paul McCartney, Billie Eilish, Sam Smith and Luke Combs have played stadiums and arenas across Australia as part of Frontier-produced tours. Sheeran’s Mathematics Tour sold over 830,000 tickets across 12 shows in Australia and New Zealand and left excess demand, Brant says.
The heat isn’t dissipating from the market anytime soon.
Throughout the Southern Hemisphere summer, Frontier will promote treks for Robbie Williams, Foo Fighters and Taylor Swift, whose Eras Tour has sold out seven 2024 stadium shows across Sydney and Melbourne, Australia’s most populous cities.
The so-called “tyranny of distance” — a phrase coined in 1966 by Australian historian Geoffrey Blainey — makes the country a challenging touring market. “It is more expensive” post-COVID-19, Brant says. The cost to “move people and freight is much higher than pre-COVID. An already marginal business is even more marginal.”
Even the price of replacement turf has soared. “Artists and their agents are working harder than ever to make touring viable, to get their artists in front of audiences in a way that still stacks up financially,” Brant continues. “We all play our part in that.”
Brant was promoted in March 2022, heading up a new leadership team, part of wider restructuring designed to help the “legacy, mission and culture” of Frontier to flourish following Gudinski’s death in March 2021.
Brant reports to the Frontier board, which includes Michael’s son, Mushroom Group chairman/CEO Matt Gudinski; Jay Marciano, chairman/CEO of AEG Presents, which has a joint venture with Frontier; and AEG Presents Asia Pacific president/CEO Adam Wilkes, who was appointed Frontier chairman as part of the restructuring.
Legendary Australian concert promoter Michael Chugg, executive chairman of Chugg Entertainment, reunited with former business partner Michael Gudinski to form a joint venture in 2019. More recently, Chugg joined the Frontier leadership team alongside Matt, Frontier senior promoter Gerard Schlaghecke and others.
As live entertainment returned, Frontier has welcomed a new golden age of stadium shows, promoting gigs by Billy Joel, Foo Fighters and Elton John. In years past, Australia would host “two to three stadium tours a summer for all promoters, if we had a big summer,” Brant says. “That seems to have changed.”
“Twenty years ago, people were lamenting what would happen to the business when The Rolling Stones, Eagles and Neil Diamond-type acts stopped filling stadiums,” he says. Not anymore. Brant points to the evolution in stage production and the quality of new artists now making their mark.
Adds Brant: “To be in stadiums eight times over a couple of summers is big for Frontier.”
This story originally appeared in the Dec. 9, 2023, issue of Billboard.
More people around the globe are listening to licensed music services than ever before — and are doing so via a growing number of different platforms — but piracy continues to divert cash from creators’ pockets, while a majority of music fans think that artificial intelligence (AI) should not be used to clone music artists’ voices without authorization, according to a new consumer survey from international recorded-music trade organization IFPI.
IFPI’s “Engaging with Music 2023″ study reveals that music consumers are spending on average 20.7 hours listening to music weekly, up from 20.1 hours in 2022 – or the equivalent of an extra 13 three-minute songs per week.
The London-based organization found that 73% of the 43,000-plus music fans it surveyed listen to their favorite artists through subscription or ad-supported audio streaming service such as Spotify, Apple Music or Amazon Music, down slightly from last year’s figure of 74% (IFPI says that the small decrease is down to a change in accounting methodology, rather than a drop in real terms). The proportion of paying subscribers rises from 46% in 2022 to 48% this year.
Audio subscription services are the most used format, accounting for around a third (32%) of music fans’ weekly listening time, closely followed by video streaming via platforms like YouTube or TikTok, which make up 31% of consumption.
On average, people now use more than seven different methods to engage with music, reports IFPI, with other popular formats including radio listening (17%), purchased music (9%) and attending live concerts (4%).
In line with previous years, the adoption of subscription streaming services is highest among younger listeners, with 60% of 16–24-year-olds and 62% of 25-34-year-olds surveyed saying they use subscription music platforms. Usage drops to 28% in the 55-64-year-old age bracket, although consumption is up year-on-year across all age demographics.
Among 16-24-year-olds, short form video platforms such as TikTok are listed as the most popular way that they engage with music on a daily basis, followed by audio subscription streaming services and then video streaming formats like YouTube.
The top five countries where people spent the most time listening to music through a subscription streaming service were Sweden (61% of people surveyed), Mexico (57%), Germany (55%), the U.S. (53%) and New Zealand (52%), with the United Kingdom dropping out of the top five.
Overall, IFPI reports a 7% year-on-year rise in time spent listening to music on paid streaming services – a slower rate of growth than the 10% rise in listening time in 2022.
Artificial Intelligence and the Persistent Piracy Problem
For the first time, IFPI’s research team asked music fans for their views on how they think artificial intelligence will impact on the industry. Nearly eight in ten (79%) said that human creativity is essential to the creation of music and 74% of respondents said that AI should not be used to clone or impersonate music artists without authorization.
The vast majority of people surveyed supported the need for AI systems and developers to be transparent and clearly identify any training data they have used to create new music works, which is one of the key provisions of the recently agreed EU AI Act.
The IFPI report was compiled by surveying internet users aged 16-64 between August and October across 26 countries, including the United States, Japan, United Kingdom, Germany, France, China, Australia, Brazil, Canada, Mexico, Indonesia and Saudi Arabia.
Collectively, these markets accounted for more than 91% of global recorded music revenues in 2022, according to this year’s IFPI Global Music Report. IFPI says the report is the largest music survey of its kind ever conducted.
In terms of genres, pop remains the most popular type of music globally, followed by rock, hip-hop/rap, dance/electronic and Latin. On average, music fans said that they listened to more than eight different genres of music with local-language genres such as K-pop in South Korea or Amapiano in South Africa increasingly popular in domestic markets.
Writing in the study’s foreword, IFPI chief executive Frances Moore says its findings demonstrate how the music industry has evolved to give “artists more opportunities than ever to find audiences,” who are in turn “discovering and engaging with more music in an increasing number of ways.”
Nevertheless, music piracy remains an ongoing issue that has “a severe and direct impact on royalties,” warns Moore. Of those surveyed, 29% of respondents said that use unlicensed or illegal methods to listen to or obtain music, down slightly from the previous year.
Stream-ripping sites remain the most popular way for consumers to access copyright-infringing music, IFPI found, with 41% of 16-24-year-olds confessing to using them. One in five people (20%) said they had used an unlicensed mobile app to illegally download music.
The listening study also contains separate reports looking at music consumption in China, India, Indonesia, Nigeria, the Philippines, Saudi Arabia, UAE and Vietnam.
In China, which last year overtook France as the fifth-biggest music market worldwide with revenues of $1.2 billion, 96% of people surveyed said they now used licensed music streaming services with the total number of hours spent listening to music each week increasing to just under 30 hours among respondents.
Despite the rapid growth in streaming in China, 75% of people surveyed said that they still used unlicensed or illegal ways to access music, demonstrating that piracy remains a serious issue in the world’s most populous country.
Responding to the report’s findings, Moore said that tackling all forms of copyright infringement on a global basis would continue to be a priority for IFPI to “ensure the most secure digital environment possible for music creators and fans alike.”
A federal court jury has decided that Google’s Android app store has been protected by anticompetitive barriers that have damaged smartphone consumers and software developers, dealing a blow to a major pillar of a technology empire.
The unanimous verdict reached Monday came after just three hours of deliberation following a four-week trial revolving around a lucrative payment system within Google’s Play Store. The store is the main place where hundreds of millions of people around the world download and install apps that work on smartphones powered by Google’s Android software.
Epic Games, the maker of the popular Fortnite video game, filed a lawsuit against Google three years ago, alleging that the internet search giant has been abusing its power to shield its Play Store from competition in order to protect a gold mine that makes billions of dollars annually. Just as Apple does for its iPhone app store, Google collects a commission ranging from 15% to 30% on digital transactions completed within apps.
Apple prevailed in a similar case that Epic brought against the iPhone app store. But that 2021 trial was decided by a federal judge in a ruling that is under appeal at the U.S. Supreme Court.
The nine-person jury in the Play Store case apparently saw things through a different lens, even though Google technically allows Android apps to be downloaded from different stores — an option that Apple prohibits on the iPhone.
Just before the Play Store trial started, Google sought to avoid having a jury determine the outcome, only to have its request rejected by U.S. District Judge James Donato. Now it will be up to Donato to determine what steps Google will have to take to unwind its illegal behavior in the Play Store. The judge indicated he will hold hearings on the issue during the second week of January.
Epic CEO Tim Sweeney broke into a wide grin after the verdict was read and slapped his lawyers on the back and also shook the hand of a Google attorney, whom he thanked for his professional attitude during the proceedings.
“Victory over Google!” Sweeney wrote in a post on X, the platform formerly known as Twitter. In a company post, Epic hailed the verdict as “a win for all app developers and consumers around the world.”
Google plans to appeal the verdict, according to a statement from Wilson White, the company’s vice president of government affairs and public policy.
“Android and Google Play provide more choice and openness than any other major mobile platform,” White said.
Depending on how the judge enforces the jury’s verdict, Google could lose billions of dollars in annual profit generated from its Play Store commissions. The company’s main source of revenue — digital advertising tied mostly to its search engine, Gmail and other services — won’t be directly affected by the trial’s outcome.
The jury reached its decision after listening to two hours of closing arguments from the lawyers on the opposing sides of the case.
Epic lawyer Gary Bornstein depicted Google as a ruthless bully that deploys a “bribe and block” strategy to discourage competition against its Play Store for Android apps. Google lawyer Jonathan Kravis attacked Epic as a self-interested game maker trying to use the courts to save itself money while undermining an ecosystem that has spawned billions of Android smartphones to compete against Apple and its iPhone.
Much of the lawyers’ dueling arguments touched upon the testimony from a litany of witnesses who came to court during the trial.
The key witnesses included Google CEO Sundar Pichai, who sometimes seemed like a professor explaining complex topics while standing behind a lectern because of a health issue, and Sweeney, who painted himself as a video game lover on a mission to take down a greedy tech titan.
In his closing argument for Epic, Bornstein railed against Google for exploiting its power over the Android software in a way that “has led to higher prices for developers and consumers, as well as less innovation and quality.”
Google has staunchly defended the commissions as a way to help recoup the more than $40 billion that it has poured into building into the Android software that it has been giving away since 2007 to manufacturers to compete against the iPhone.
“Android phones cannot compete against the iPhone without a great app store on them,” Kravis asserted in his closing argument. “The competition between the app stores is tied to the competition between the phones.”
But Bornstein ridiculed the notion of Google and Android competing against Apple and its incompatible iPhone software system. “Apple is not the ‘get out of jail for free’ card that Google wants it to be,” Bornstein told the jury.
Google also pointed to rival Android app stores such as the one that Samsung installs on its popular smartphones as evidence of a free market. Combined with the rival app stores pre-installed on devices made by other companies, more than 60% of Android phones offer alternative outlets for Android apps.
Epic, though, presented evidence asserting the notion that Google welcomes competition as a pretense, citing the hundreds of billions of dollars it has doled out to companies, such as game maker Activision Blizzard, to discourage them from opening rival app stores. Besides making these payments, Bornstein also urged the jury to consider the Google “scare screens” that pop up, warning consumers of potential security threats when they try to download Android apps from some of the alternatives to the Play Store.
“These are classic anticompetitive strategies used by dominant firms to protect their monopolies,” Bornstein said.
Google’s empire could be further undermined by another major antitrust trial in Washington that will be decided by a federal judge after hearing final arguments in May. That trial has cast a spotlight on Google’s cozy relationship with Apple in online search, the technology that turned Google into a household word a few years after two former Stanford University graduate students started the company in a Silicon Valley garage in 1998.
Crypto.com Arena in Los Angeles is pilot testing a new waste diversion initiative at the arena’s upcoming two-night run for Depeche Mode on Dec. 15 and 17.
The program, held in conjunction with reusable cup manufacturer r.World, could help divert hundreds of thousands of single-use cups out of local landfills and eventually serve as a staple sustainability initiative at the AEG-owned facility, which is widely recognized as a leader in the live entertainment business’ efforts toward long-term sustainability.
As part of the program, Crypto.com Arena and its janitorial servicer, ABM, will work with r.World to receive and distribute 13,000 beer, cocktail and soft drink cups around the arena. On the nights of the Depeche Mode performances, the cups will be utilized by the arena’s bar, beverage and concessionaires to serve drinks to attendees, who will then dispose of the cups in specially marked bins staged around the arena. At the end of the first show, the cups will be collected by r.World staff and taken to a nearby cleaning facility where they will be washed and returned to the arena for the second night. Both shows are being promoted by Live Nation.
The program, explains Crypto.com Arena president Lee Zeidman, was inspired by Depeche Mode’s long-running commitment to environmental and sustainability initiatives. “Commencing with the electrifying Depeche Mode concerts, our aim is to ignite a wave of positive change and rally our audience and partners to actively participate in shaping a more eco-conscious future,” he tells Billboard.
Last year, a similar pilot program was launched by AEG-owned Goldenvoice with r.World to eliminate plastic cups from its Cali Vibes festival in Long Beach, Calif. Following the pilot, Crypto.com Arena will evaluate the data from the two concerts and, if the program is successful, will look to collaborate with current or future partners to make r.World a full-time option to guests and fans in the future.
“We believe that there’s going to be less labor needed in terms of cleanup and the cleanup crew, and we believe we’re going to have lower waste disposal fees,” Zeidman says. “We also believe that people will embrace this opportunity to keep single plastic waste out of the stream and perhaps buy more beers or Cokes.”
In addition to Los Angeles, r.World boasts industrial “Wash Hub” facilities that also service Denver, Las Vegas, Minneapolis, San Francisco, Seattle and Washington, D.C. To meet market demand for reuse, the company plans to expand the program to eight to 12 more cities in the next 24 months.
“We’re excited to work with Crypto.com Arena — as one of the busiest venues in the world, the positive environmental impact potential of reuse is massive,” said Michael Martin, r.World founder/CEO. “They’ve led the industry and operated in the most environmentally innovative ways since opening in 1999, and so it’s no surprise they’re launching the pilot reuse program in the LA market and ultimately, driving change across the live events industry.”
Hidden behind a white sheet and sunglasses, an anonymous music-maker called Ghostwriter logged on to TikTok in April to post his first video. In it, he announced his debut single, “Heart on My Sleeve” — and signaled a seismic shift in the music business. Using an artificial intelligence voice filter that disguised Ghostwriter’s own timbre behind that of Drake and The Weeknd, “Heart on My Sleeve” was the first song to show just how far AI music had come already and what novel challenges and opportunities it would present to artists.
The song also proved that artists would struggle to control how their voice and likeness are used in the age of AI — even superstars like Drake and The Weeknd who have the resources to fight back. Universal Music Group (UMG) issued a strongly worded statement soon after the song’s posting, condemning “infringing content created with generative AI,” and the song was quickly taken down from most platforms. But fans continued to post it to TikTok and YouTube every time it was removed. As Ghostwriter later put it in his Billboard cover story: “The genie can’t be put back in the bottle.”
“Heart on My Sleeve” forced the industry to reckon with the limitations of existing “right of publicity” laws that protect artists from having their voices and likenesses commercially exploited without their authorization. The strength of this right varies from state to state, and at the time the song was released, there wasn’t a precedent for issuing takedown notices for these types of violations, like there is for copyright infringement claims.
Likely as a result of the song and other AI concerns, UMG general counsel/executive vp of business and legal affairs Jeffrey Harleston went to Capitol Hill to talk to the Senate Judiciary Committee in July, asking for a “federal right of publicity” to be created to help protect artists. Streaming services also voluntarily entered talks with the major labels to form a system so that labels can request takedowns for right of publicity concerns.
Still, some artists consider Ghostwriter to be a revolutionary. Artist-producer Grimes took to X (formerly Twitter) after the release of “Heart on My Sleeve” to write, “I think it’s cool to be fused w a machine, and I like the idea of open sourcing all art.” Shortly after, she launched GrimesAI, a voice model trained on her recordings that lets fans shape-shift their voice into hers at the click of a button. She also collaborated with TuneCore to allow fans to distribute their resulting songs to streaming services under the tag “GrimesAI” to distinguish it from her own catalog.
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YouTube recently built on this same idea with the experimental program Dream Track. It lets fans use voice models of Charlie Puth, John Legend, Sia, T-Pain, Demi Lovato, Troye Sivan, Charli XCX, Alec Benjamin and Papoose with the approval of partners UMG and Warner Music Group (WMG).
Songwriters and publishers have also started using AI voice technology. This summer, Billboard reported that AI voice models were used to help writers pitch song ideas to artists. The AI-altered pitch records had been used as an internal reference for the writers to gauge if the track sounded appropriate for a particular singer while composing, and sometimes the records with the AI voice applied were also sent to the artist’s team in hopes that they would increase their chance of landing the song.
In a recent interview with Billboard, pop artist Lauv said he has seen that usage firsthand with one of his songwriter friends who was pitching a track to Nicki Minaj using AI. Lauv himself is also leaning into the new technology: In November, he partnered with AI voice startup Hooky — one of many startups in the space — to translate his new single, “Love U Like That,” into Korean. After getting Korean American songwriter Kevin Woo to translate the lyrics and sing a Korean version, Hooky applied Lauv’s AI voice model to map Lauv’s signature sound over Woo’s.
Ghostwriter’s manager previously said he also believes that artist estates and catalog owners could use AI voice models to market their music. WMG is now experimenting with the catalog of late French singer Édith Piaf. The company is creating AI models to resurrect her voice and likeness for a controversial new biopic called EDITH to “further enhance the authenticity and emotional impact of the story,” according to a press release.
“Heart on My Sleeve” represents just one of many burgeoning areas of AI that can transform the music business in the future. Concurrently, as startups like Kits.AI, mayk.it, Hooky, Voice-Swap, Supertone and Lingyin Engine hope to capture the AI voice model market, AI-generated beats and loops promise to upend production music libraries and the overall creation process. AI “functional music,” soundscapes designed to fit user needs for sleep, focus or relaxation, also promise an evolution in wellness and ambient music. And as AI stem separation unlocks possibilities for remixing, synch licensing and restoring old audio files (the new Beatles song, “Now and Then,” used the technology to restore John Lennon vocal recordings), there are surely even more use cases for AI that are yet to be discovered.
While legal and logistical questions remain with the technology, Ghostwriter’s team is pressing on. He has teased a second single (“Whiplash” featuring the AI voices of Travis Scott and 21 Savage) while expressing his desire to collaborate with other artists. As such, Ghostwriter’s manager believes it is of the utmost importance for the music business to band together to “define an equitable arrangement for all stakeholders” when using AI. As he previously told Billboard, “We had an opportunity [with “Heart on My Sleeve”] to show people the value in AI and music … I like to say that everything starts somewhere.”
This story originally appeared in the Dec. 9, 2023, issue of Billboard.
Joaquina has signed a management deal with Global Talent Services (GTS), Billboard can exclusively announce today (Dec. 11). The new partnership will strengthen the Venezuelan singer-songwriter’s growth and amplify her artistic potential, and she will be overseen by manager Paula Kaminsky and co-manager Camila Canabal.
“I’m very grateful to count on a team that believes in me and my project, but most importantly, for believing in my songs and what I have to say in them,” the 19-year-old newcomer (born Joaquina Blavia Canabal) said in a press statement. “I’m very excited for this next stage of my career.”
Kaminsky added: “We are very happy and grateful that Joaquina, who is a talented singer-songwriter and performer and someone who holistically embodies the feelings of her generation, has placed her trust in GTS to further develop her career, and together, guide her in achieving her dreams of taking her art to the whole world.”
The exclusive news comes on the heels of Joaquina winning the coveted best new artist award at the 2023 Latin Grammys in Seville, Spain, where she was also nominated for best singer-songwriter album for her debut EP, Los Mejores Años.
Joaquina poses with the award for Best New Artist in the media center for The 24th Annual Latin Grammy Awards at FIBES Conference and Exhibition Centre on Nov. 16, 2023 in Seville, Spain.
Niccolo Guasti/Getty Images
Born in Caracas but raised in Miami, the well-rounded rising star—who took music, theater, and ballet lessons—is inspired by artists such as Avril Lavigne, and pens songs about teenage angst as heard in her notable track “Los Mejores Años.”
“Although I am very extroverted and I love to socialize, I am also very private and it’s difficult for me to talk about my fears, my thoughts, and ‘Los Mejores Años’ was a big relief song for me,” she previously told Billboard. “It helped me a lot to understand many things I was feeling in a time of normal transition in everyone’s life. It’s a bit that concept of feeling the fear of growing up for the first time in your life.”
Before winning best new artist, Joaquina formed part of the first class of graduates from producer Julio Reyes Copello’s Art House Academy, signed a record deal with Universal Music Latin, and was the opening act for artists such as Alejandro Sanz and Fonseca. She was also spotlighted as Billboard’s Latin Artist on the Rise in November.