Business
Page: 31
Is the music business, traditionally an arbiter of cool, out of touch with U.S. consumers? It’s a tough question to ask — and a tough time to ask it. But if you compare the results of the presidential election with the politics of artists and executives, it’s hard not to.
The dominant mood among people I know is shock at the scale of Donald Trump’s victory — most expected a race so close that ballot-counting would continue all week — and an unsettling feeling that the U.S. is not the country we thought it was. What happened and why will be discussed for years. There’s also a more immediate question: Why didn’t more people see this coming?
Part of the reason is that this still seems so weird — I’m old enough to remember when talking about a professional golfer’s private parts would have been disqualifying in politics, let alone the Republican party. But part of it is that, unintentionally, many people in the media business now live in a bit of a bubble. I’m one of them: I live in Berlin and spend most of my time in the U.S. in or near New York, and I read The New York Times and The New Yorker. When it comes to music, none of my favorite artists supported Trump, and one, Bruce Springsteen, actively campaigned against him. Some of the biggest musicians in the world also supported Kamala Harris — Taylor Swift, Beyoncé, Ariana Grande, Sabrina Carpenter — as did most music executives. Many of them must share my surprise.
Trending on Billboard
Are they — are we — too detached from the mainstream?
A significant number of Trump supporters are right-wing racists — certainly enough to make one worry. But it’s hard to make the case that Trump supporters are extremists if they account for more than half the vote. By definition, they’re mainstream. Worryingly, the Democrats don’t seem to know how to talk to them in a way that addresses their concerns. Calling them deplorables didn’t work, and making the case that Trump would be a disaster for democracy didn’t, either. (Democracy means that people vote for their leaders — it doesn’t mean that they vote for the leaders you want.) The Democrats focus more on what people can do for their country at a time voters seem more interested in what their country can do for them. Ideas are important, but many people seem more focused on the affordability of groceries.
For whatever reason, it’s now clear that there are more Trump voters than many people, including musicians and music executives, thought. They are also younger and more diverse than people realized. Many of them must listen to pop music. But is the music business listening to them? The idea that it’s controversial just to endorse Trump, without echoing any of his uglier rhetoric, means turning one’s back on more than half of American voters. That’s not how mass marketing works.
The challenge Trump presents to American democracy is far more important than selling music, of course. And I suspect I will get a few emails about how crazy it is to suggest that anyone market music to people who think immigrants are eating cats. But reaching different kinds of people with different kinds of art is what the music business does.
It’s also what politics is supposed to do. Both the music business and politics need to do better at reaching large, diverse audiences. That often means connecting with existing fans, but it has to also mean reaching out to new ones. Often, people simply won’t buy what they’re being sold, whether it’s a new album or a new candidate. But it’s important to have those conversations — both for those of us who want to help elect a new president in four years and those of us who want to argue that this one is going to do a great job.
More and more, politics seems stuck in a loop, in which ideas are marketed to, and cheered, by those who have already decided on them. In music, that’s known as a superfan strategy, and it’s very important. But building one requires reaching new people to turn into fans, or supporters, in the first place.
The rise of DIY music distribution platforms like TuneCore and DistroKid has been unequivocally transformative for artists — it has given them the ability to reach listeners without traditional label constraints.
Yet, while democratization has opened doors for countless artists, it’s also opened the floodgates to an equally pernicious, unintended byproduct — rampant fraud and copyright infringement. For context, Luminate reported that in 2023, over 120,000 new songs were uploaded daily, a sharp increase from 93,000 per day in 2022. The surge is predominantly due to two things: the ubiquity and growth of the DIY distribution sector and the proliferation of consumer-facing music production resources. This relatively nascent landscape has dramatically increased not only the volume of content but also the industry’s exposure to unauthorized and infringing material.
Universal Music Group’s recent $500 million lawsuit against TuneCore and its parent company Believe highlights the severity — as well as a tipping point. The lawsuit asserts that these platforms are illegally profiting from large-scale copyright infringement, where the culprit for disseminating and monetizing the unauthorized IP is both distributor and unethical user alike. Ultimately, this case highlights a broader, systemic failure, exacerbated by insufficient monitoring, accountability and safeguards for control. But the ecosystem has become too big, too unregulated and too profitable for some of its stakeholders to rectify it on their own. Reform is overdue.
Trending on Billboard
Democratized Distribution
DIY distribution was originally designed to level the playing field, allowing any artist to release music on platforms like Spotify, Apple Music and YouTube. However, open access came with side-effects — most notably, rampant IP abuse. The sector has become a breeding ground for exploitation; malicious users take advantage of the low barrier to entry by uploading pirated, remixed, or slightly modified versions of copyrighted songs. Collectively, these uploads generate significant revenue, with a portion of that going to the distributors who host them.
This is far from an isolated issue. With millions of tracks uploaded annually, there is an immense challenge in verifying every song. While some platforms claim to have anti-fraud systems in place, policing measures frequently fall short. The sheer volume of uploads makes scalable monitoring difficult, in turn creating a laissez-faire approach that indirectly allows infringement to thrive.
YouTube Royalty Collections Unique Challenge
Nowhere is this problem more pervasive than YouTube, where scale and visibility is inherently even more challenging. Some users deliberately circumvent YouTube copyright policies by uploading and distributing pitched remixes, slowed down/sped up remixes or near-identical versions specifically in order to bypass Content ID. Detection is challenging, and most of this infringement goes unnoticed. Even when violations are flagged, recouping misappropriated payments is impossible. Artists are left to navigate an opaque, complicated system and often leave their rights exposed and earnings minimized. For many independent artists, YouTube is a key, significant revenue stream and copyright fraud siphons away that income with little recourse.
Industry-Wide Consequences
Overvaluing volume vs. quality control creates a system ripe for exploitation because the current model often benefits the infringer. But solving the core issue mandates more than increasing lawsuits. There needs to be enforceable quality-control metrics that are clearly communicated and that actively deter fraud, while protecting rights holders. Transparent protocols to ensure flagged content will not generate income for infringers along with improved early detection systems will help standardize accountability and visibility. An enforceable and sustainable safeguard system will:
A. Prevent infringing content from reaching listeners at allB. Mandate greater transparency when infringement occurs, andC. Ensure rightful compensation for rights holders.
Closing the knowledge gap and developing industry-wide standards are also essential for meaningful change. By raising public awareness, providing a forum where artists and rights holders can report infringement and increasing pressure within the industry, the path to reform is achievable — and similar to regulations that have been implemented to curb other forms of online piracy.
A Call for Collective Responsibility
Setting clear deadlines for reform will hold platforms and distributors accountable while improving transparency. Fundamentally, and despite the challenges of volume, even en-masse DIY distributors must showcase a basic respect for IP and prioritize rights holders/artists while identifying (and deterring) the bad actors who undermine them.
With collective, industry-wide efforts, digital music distribution can become a sustainable model that supports independent artists while upholding their rights. A system that empowers artists while maintaining integrity is essential to preserving the value of music and protecting it from exploitation.
George Karalexis is co-founder/CEO of Ten2 Media. His expertise as a media executive, strategic advisor, and serial entrepreneur spans 15-plus years across multi-sector leadership, with a focus on music, marketing strategy and tactical team building. Donna Budica is co-founder/COO of Ten2 Media. With a degree in finance from The Wharton School and an MBA from USC Marshall, she leads corporate strategy and operations at Ten2 and its subsidiaries.
Ten2 Media is a rights management and content marketing company specializing in asset monetization, audience development and content optimization on YouTube. Ten2’s expertise on YouTube and decades of experience in the music Industry is the foundation of its unique approach to maximizing revenue and marketing music for the world’s leading artists and labels.
Billboard, in partnership with AEG Presents and Live Nation, has announced the second round of industry leaders participating in this year’s Billboard Live Music Summit and Awards, taking place on Thursday, Nov. 14 in Los Angeles. Bringing together the brightest stars and leaders in music, the day will be an unparalleled celebration of creativity and achievement in the live space through exclusive panels and conversations.
Explore
Explore
See latest videos, charts and news
See latest videos, charts and news
The second-round lineup includes:
Inside Global Touring Today: A Conversation with Arthur Fogel & Bobby Campbell: Join Live Nation’s Arthur Fogel as he sits down with artist manager Bobby Campbell to explore the evolution of global touring. From the growing demand for live experiences to advancements in large-scale production, Fogel and Campbell will share insights into how the industry continues to push boundaries and create unforgettable moments for fans around the world.
Trends In Ticketing: The Latest In Innovation and Tools: Sponsored by AXS, this panel will take a deep dive into how artists and their managers are improving the live experience at the point of purchase. Moderated by Greg Schmale from AXS, this panel will include Amanda Gray from Goldenvoice, Katie Nowak from TBA Agency, Thomas Cussins of Ineffable Music and Fielding Logan from Q Prime.
Trending on Billboard
The Life And Times of Disco Donnie: Veteran dance and EDM promoter James “Disco Donnie” Estopinal sits with Billboard Live Senior Director Dave Brooks to talk about his long career in live music and the future of the fan and artist relationship.
Previously announced talent and industry leaders include:
Multi-platinum singer-songwriter Olivia Rodrigo will be a part of the Superstar Q&A and will receive Billboard’s editorially selected Touring Artist of the Year award.
Louis Messina will be honored with the prestigious Touring Titan Award and recognized as the Executive of the Year in honor of his work producing Taylor Swift’s record-breaking Eras Tour, as well as tours for Eric Church, George Strait, Kenny Chesney and many more top grossing artists. Following the award presentation, he will sit with Billboard’s Melinda Newman for The Power Players Conversation. Together, they will delve into Messina’s remarkable career, covering his time with Pace Concerts, his work with artists like Tim McGraw, Ed Sheeran and Shawn Mendes, as well as his plans to build the next generation of touring superstars. This fast-paced, insiders-only conversation will offer attendees a rare glimpse into the business mindset of the 21st century’s most successful concert promoter and showman.
John Summit and his longtime manager Holt Harmon will take part in an exclusive conversation, Inside the Rise of John Summit. Moderated by Billboard’s Katie Bain, the duo will discuss Summit’s explosive rise and the strategy behind it, exploring how the producer went from playing small bars and clubs to becoming one of the leading artists in the global dance scene. They’ll share insights into the creative process behind Summit’s chart-topping hits, the evolving relationship between artists and audiences and the challenges and opportunities DJ’s face in an ever-changing market.
A powerhouse lineup of agents are set to share their insights and expertise during the Agents Power Panel: A New Era of Uncertainty, moderated by Billboard’s Jason Lipshutz, and featuring industry heavyweights like Avery McTaggart of TBA Agency, Brent Smith from Wasserman, David Zedeck of UTA, Jarred Arfa from IAG, as well as Kirk Sommer from WME and Rick Roskin representing CAA. This panel is sponsored by Allegiant Stadium and a must-attend session for anyone involved in talent booking. The Agency Power panel will cover all things related to artist development and representation with a focus on building superstar talent for a growing global audience.
L-Acoustics, the leader in professional audio technologies, is sponsoring the The Immersive Experience: The Future of Sound, Visual and Interactive Programming at Festivals panel. A distinguished group of executives will take center stage to discuss how innovations in sound, video and immersive media are transforming the festival experience. Moderated by Amber Mundinger (L-Acoustics Global Director of Artistic Engagement), the panel features Dave Rat, President of Rat Sound Systems, Polygon’s David Lopez de Arenosa, and WME’s Josh Kurfirst. They will explore the critical role of sound design and technology, including deploying large-scale spatial audio, immersive sound and projection mapping. From deep diving into Electric Forest’s sellout success to new initiatives for developing artists, the Festivals of the Future panel will serve as a roadmap for the next generation of experienced creators.
The Live Music Awards, which will honor touring acts as well as some of the visionary executives behind them, are based on a number of criteria ranging from revenue to tour demand, production, technical ambition, fan engagement, momentum and cultural impact.
Programmed by Brooks, who has worked at Billboard since 2017, the Billboard Live Music Summit and Awards will bring an unforgettable experience, spotlighting some of the biggest names in music and emerging artists who are shaping the future of the industry. The event will feature a series of keynote panels as well as the Billboard Live Music Awards, honoring artists and industry professionals who have made significant contributions to the world of live music.
In addition to exclusive panels and conversations with the brightest stars and industry leaders, the summit will feature insightful panels with leading figures from AEG Presents and Live Nation, exploring trends, challenges, and innovations in the live music sector. The summit aims to foster dialogue and inspire future developments in the industry.
Additional information will be distributed in the coming weeks. For more information on this year’s Billboard Live Music Summit and Awards, visit billboardlivemusicsummit.com.
Deezer has appointed Pedro Kurtz as director of operations for the Americas, Billboard can exclusively announce today (Nov. 7). Kurtz—who joined the company in 2020 as head of music in Brazil and served as director of content for LATAM—will be based at Deezer’s Brazil headquarters in São Paulo and report directly to the global team […]
WK Records has appointed Azucena “Azu” Olvera as GM, the company tells Billboard. According to the label, which was founded in 2020 by executive Walter Kolm, Olvera will leverage her “extensive expertise in talent relations, A&R, global marketing and strategic partnerships to further WK Records’ mission of cultivating groundbreaking music and elevating Latin artists on […]
Rapper Tekashi 6ix9ine has reached a deal with federal prosecutors after his recent arrest over alleged violations of his supervised release, agreeing to spend a month in prison and another under house arrest.
The rapper was charged last week with breaking the terms of his years-long probation, which stems from a 2018 plea deal he struck with prosecutors over his involvement with a gang called Nine Trey Gangsta Bloods.
In a letter to the judge filed Tuesday, federal prosecutors said Tekashi had agreed to admit to the probation violations and serve one month in prison, followed by a month of home incarceration, a month of less-restrictive home detention, and then finally a month of curfew.
Trending on Billboard
The deal will also extend Tekashi’s supervised release — which had been set to expire in six months – to a full year following his release from prison. The rapper’s attorney did not immediately return a request for comment.
Once a rising star in the world of hip-hop and social media, Tekashi was charged in November 2018 with federal racketeering and murder conspiracy charges over his involvement with a New York street gang called Nine Trey Gangsta Bloods. Prosecutors claimed the gang “wreaked havoc on New York City” by “engaging in brazen acts of violence.”
But just a day after being arrested, Tekashi cut a deal with federal prosecutors to flip on his crew in return for lenience. Taking the witness stand during a 2019 trial, he offered detailed and frank testimony about his involvement in the gang and his former gang mates.
Under the deal with prosecutors, Tekashi was sentenced to two years in prison and five years of supervised release and ordered to serve 1,000 hours of community service and pay a $35,000 fine.
The sentence was set to run until July 2020, but Tekashi was released early, in April 2020, after his attorneys argued that the coronavirus pandemic posed an increased risk to him because he has asthma.
Last week, prosecutors alleged that Tekashi had violated his release conditions on numerous occasions, including by traveling to Las Vegas without permission, failing to submit for drug testing and testing positive for methamphetamine.
At his arraignment hearing, the rapper pleaded not guilty and his attorney argued that the failed drug test was from the use of prescribed Adderall. But the judge was unswayed and ordered him jailed until his next court date, citing a “broader pattern” of misconduct during parole that the judge said suggests a “full spectrum disregard for the law.”
Following Tuesday’s agreement, the judge ordered both sides to appear at a hearing next week (Nov. 12) to explain the plea deal and why the sentence “reflects the proper sentence for these violations.”
The federal government has ordered the dissolution of TikTok in Canada.
Canadian users will still be able to use and access the popular social media app, but the company’s Canadian operations, which has offices in Toronto and Vancouver, have been ordered to “wind down.”
This follows a national security review of TikTok’s Chinese parent company ByteDance Ltd.
“The decision was based on the information and evidence collected over the course of the review and on the advice of Canada’s security and intelligence community and other government partners,” said Industry Minister François-Philippe Champagne in a statement, reported by Canadian Press.
He also told CBC that TikTok’s Canadian operations are potentially “injurious to national security.” He wouldn’t go into specifics, but said “I know Canadians would understand when you’re saying the government of Canada is taking measures to protect national security, that’s serious.”
Trending on Billboard
Canadians will still be able to watch TikTok videos and post their own on the app, but the company will no longer be able to conduct business in the country.
TikTok, however, will not leave without a fight.
“Shutting down TikTok’s Canadian offices and destroying hundreds of well-paying local jobs is not in anyone’s best interest, and today’s shutdown order will do just that. We will challenge this order in court,” a spokesperson for TikTok told the national broadcaster.
TikTok has faced similar scrutiny in the United States, with an order for ByteDance to sell the platform or stop operating.
In Canada, a big part of TikTok’s operations revolve around music and it has a number of initiatives to support local creators. In April, the company launched a weekly music chart measuring viral songs on the platform in Canada.
A number of Canadian artists like Lauren Spencer Smith, Alexander Stewart, Crash Adams and, most successfully, Tate McRae, have built successful music careers on TikTok.
More on this story as it develops.
Live Nation, which is facing a lawsuit brought by the Department of Justice (DOJ) under President Joe Biden, saw its share price jump on Wednesday (Nov. 6) following Donald Trump’s victory in the U.S. presidential election a day earlier.
Live Nation shares gained 7.1% to $125.99 and rose as high as $127.64, just shy of its all-time high of $127.75 set on Nov. 5, 2021. Investors could see Trump’s re-entrance into the White House as a good sign for Live Nation’s efforts to thwart efforts by the DOJ to break up the company.
In a lawsuit filed in May, the DOJ alleged Live Nation abused its market power to hurt competition through exclusive ticketing contracts and threats and retaliations against venues that choose competing ticketing companies, among other actions the DOJ claims are illegal and violate the consent decree that placed competition-enhancing restrictions on the 2010 merger of Live Nation and Ticketmaster.
Trending on Billboard
“The change in administration typically brings a change in the climate around anti-trust efforts and could impact a case such as Live Nation,” says Bill Morrison, a partner at Haynes and Boone. “It depends on the who are in those key spots, and then what the priorities are of those offices. We’ve seen big pivots in the past.”
Faced with the prospect of fewer regulations and an administration perceived to be pro-market, U.S. indexes posted big gains on Wednesday. The Dow Jones Industrial Average gained 3.6% to a record high. Similarly, the Nasdaq composite rose 3.0% and the S&P 500 improved 2.5% as both reached all-time highs. The NYSE composite gained 1.9% but fell short of its all-time high.
Stocks associated with Trump also fared well, including Tesla, whose CEO, Elon Musk, campaigned heavily for Trump. The company’s shares rose 14.8% while its competitors Rivian and Lucid Group fell 8.3% and 5.3%, respectively. Trump Media & Technology Group Corp., owner of the Truth Social app used by Trump, rose 5.9%.
Bitcoin rose 9.4% to an all-time high of $76,012 on Wednesday. Trump has signaled a laissez-faire approach to cryptocurrency and said he would quickly fire Securities and Exchange Commission chair Gary Gensler, a critic who has punished numerous crypto companies and favors tighter regulations. Trump himself is involved with a new cryptocurrency through World Liberty Financial, a decentralized finance startup that sells a token called WLFI.
In other music stocks news, music streamer LiveOne jumped 28.5% a day ahead of the company’s earnings release for the quarter ended Sept. 30 while iHeartMedia shares fell 12.6% following news that the radio broadcaster cut dozens of jobs at stations across the country this week.
South Korean K-pop giant HYBE said its net profit basically evaporated in the third quarter and total revenue slipped 2% after after the company earned less from concerts and saw reduced music sales, according to results published on Tuesday (Nov. 5).
HYBE’s net profit for the third quarter was 1.444 billion won ($1.05 million), a figure 98.6% lower than the third quarter of 2023 when the company reported of 99,690 billion won ($72.3 million). Total revenue for the third quarter of 527.9 billion won ($382.6 million).
HYBE’s biggest release of the quarter was the debut album, SIS, from KATSEYE, a six-member girl group formed over the summer as part of The Debut: Dream Academy, which spent two weeks on the Billboard 200, the company said.
Trending on Billboard
HYBE’s direct revenue — which comes from its recorded music business, concerts, and things where artists are directly involved — fell by 15.5% to 323 billion won ($234 million). Revenue from its recorded music division declined by nearly 19% to 214.5 billion won ($155.5 million), while concert revenue fell nearly 15% to 74 billion won ($53.6 million). Revenue from ads and appearances rose by nearly 10% to 34.5 billion won ($25 million).
HYBE’s business lines that operate independently of their artists — like merchandising and sync licensing — performed much better, with revenue from artist-indirect involvement business lines rising by 32% to nearly 205 billion won ($148.5 million). Revenue from merchandise and licensing song rights rose by nearly 16% to 99 billion won ($71.9 million), contents revenue rose 64% to almost 80 billion won ($58 million) and fan club revenue rose by more than 23% to 26 billion won ($18.8 million).
The company’s operating profit margin saw significant improvement — up 4% — from the first quarter this year to 10.3% for the third quarter. Earnings before interest, taxes, depreciation and amortization (EBITDA), a measure of HYBE’s profit from its operations, fell by 16.4% to 81 billion won ($58.7 million).
HYBE has had an eventful few months. In July, the company appointed Jason Jaesang Lee as its new CEO and announced its “HYBE 2.0” growth strategy, which reorganizes the company, pushes a global expansion and focuses on tech-driven initiatives.
The company has also been embroiled in a dispute with Min Hee-jin, ex-CEO of the company’s label subsidiary ADOR — home to chart-topping girl group NewJeans — regarding HYBE’s claim that Min tried to take control of ADOR and NewJeans.
Olivia Rodrigo and John Summit easily had two of the biggest tours in 2024. They will both appear on November 14 at the Billboard Live Music Summit and Awards in partnership with AEG Presents to talk about their experiences on the road and how they’ve grown as touring artists. AEG Presents is a world leader in the music and entertainment industry. From the Coachella Valley Music & Arts Festival to global tour promotion for superstars like Taylor Swift, Sabrina Carpenter and many more, they are a part of every step of creating a live music experience, which will all be covered at the Billboard Live Music Summit and Awards. There will be panels featuring top agents, leaders in sound design, and Taylor Swift’s Eras Tour producer, Louis Messina.
Explore
See latest videos, charts and news
See latest videos, charts and news
Olivia Rodrigo will take part in a superstar Q&A where she will talk about upgrading from theaters to arenas for her GUTS World Tour, selecting opening acts like Gracie Abrams and Chappell Roan, and integrating her Fund 4 Good initiative into her massively successful shows. She will also receive the Touring Artist of the Year award.
John Summit will sit down with his longtime manager Holt Harmon for a conversation moderated by Billboard’s Katie Bain. Inside the Rise of John Summit will explore how he went from playing small bars and clubs to selling out Madison Square Garden. They’ll share insights into his creative process and how he created his chart-topping hits.
Louis Messina will receive the Touring Titan Award and be recognized as the Executive of the Year for his work on Taylor Swift’s record-breaking Eras Tour. He will also sit down with Billboard’s Melinda Newman for The Power Players Conversation to talk about his past experiences working with artists like Ed Sheeran, Shawn Mendes, and Tim McGraw, and plans for the future, shaping the next generation of touring superstars.
This year’s Billboard Live Music Summit and Awards will also feature the Festival of the Future panel where top executives will discuss how innovations in sound, video, and immersive media are transforming the festival experience. The Agents Power panel will bring together top agents from WME, CAA, UTA, AGI, and Arrival Artists to cover all things related to artist development and representation.
Billboard Live Music Summit 2024 returns on November 14 in Los Angeles. Click here for more information, the programming schedule, and to buy tickets.