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Taiwanese Mandopop singer-songwriter Jay Chou and his record label JVR Music have entered into a strategic partnership with Universal Music Greater China. Under the agreement, announced Wednesday in Beijing, UMG will market and distribute Chou’s back catalog and future projects, while also absorbing a JVR artist roster that includes Patrick Brasca and Young (Cao Yang). Earlier […]
Sped-up remixes continue to resonate on TikTok: The four most popular songs on the platform in the U.S. in 2023 were all sped-up, according to TikTok’s year-end report. The leader of the pack was the “more sped-up” version of Justine Skye’s “Collide,” followed by sped-up renditions of FIFTY FIFTY’s “Cupid,” PARTYNEXTDOOR’s “Her Way,” and Toosii’s “Favorite Song.”
U.K. listeners also enjoyed using up-tempo re-works of songs in their TikTok videos. In addition to “Collide” (No. 2 on the platform) and “Cupid” (No. 3), they also favored a sped-up version of George Ezra’s “Green Green Grass” (No. 4), MEYY’s “Pretty” (No. 6), and Raye and 070 Shake’s “Escapism” (No. 10).
The sped-up remixes that zip around TikTok are usually made first by creators (sometimes funded by label marketing efforts). If they start to perform well, it’s become routine for labels to release their own official versions.
“Back in the day, we used club remixes to diversify the visibility of a record,” Nima Nasseri, who then served as global head of A&R strategy for Universal Music Group’s music strategy and tactics team, explained in 2022. “The purpose was to bring back visibility to the main version. Now people are discovering the main version from the sped-up or slowed one. Instead of spending $50,000 for a remix from a big-name DJ, you’re spending relatively minimal amounts [on a sped-up rendition] and getting much more return and reach.”
Why have these simple remixes proved consistently effective? Steven Pardo, digital marketing director at Secretly Group, told Billboard in 2022 that “in a video platform that prioritizes catching attention immediately, being able to get the impact of the lyrics across more quickly is advantageous.”
Scott Plagenhoef, global head of music programming at Apple Music, echoed this sentiment during an interview with Billboard in March: “Sped-up songs allow for more of a track to be heard within the time constraints of a TikTok video and mirror the pace at which users consume content online.”
Increasing tempo can also “make the songs better — it brings out a different emotion,” according to Josh “Bru” Brubaker, a popular TikToker and radio personality for Audacy.
In the last 15 months, sped-up remixes have spurred chart surges for Thundercat‘s “Them Changes,” Miguel’s “Sure Thing” (actually a resurge, as it first charted over a decade ago), The Weeknd’s “Die for You,” Lady Gaga’s “Bloody Mary,” Mariah Carey’s “It’s a Wrap,” and more.
Due to TikTok’s popularity and its ability to drive streaming activity, Billboard launched a TikTok Top 50 chart in September, ranking tracks on the platform according to a combination of creations, video views and user engagement in the U.S. “The chart gives a clear picture of the music that is being listened to on TikTok, and consequently starting to trend on DSPs and other services,” Ole Obermann, global head of music business development at TikTok, said in a statement.
Across the first two months of the chart, hip-hop proved to be by far the most popular genre, accounting for more than 35% of chart entries. Pop was next, hovering at 20%, largely thanks to Taylor Swift, who had nine different charting tracks in the first eight weeks. The third most popular genre was R&B (10%).
U.S. listeners did listen to some music at its original tempo, according to TikTok’s year-end report. PinkPantheress and Ice Spice‘s “Boy’s a Liar Pt. 2,” Ohboyprince’s “Bounce When She Walk,” Young Nudy and 21 Savage’s “Peaches & Eggplants,” Ice Spice’s “In Ha Mood,” Jain’s “Makeba,” and Swift’s “Cruel Summer” rounded out the rest of the top 10.
BERLIN — SUISA Digital Licensing is suing Twitter International in Munich District Court for copyright infringement on X, the online platform formerly known as Twitter. The suit alleges that music compositions controlled by SUISA Digital are found on the platform, and that the company has made no effort to license them or act promptly to remove the infringing content.
“SUISA Digital is using all of the resources at its disposal to defend the interests of authors and publishers it represents,” said SUISA Digital CEO Fabian Niggemeier in a press release about the lawsuit. “This is the only way we can effectively represent the interests of authors and publishers and ensure that they are compensated fairly by Twitter International.”
Rights to the songs in question, many of which were found in full videos on X, are represented by SUISA Digital, a subsidiary of SUISA, the Swiss collecting society. (SUISA Digital represents both public performance rights and mechanical rights for the works in question.) SUISA Digital says that it has tried to get in touch with X/Twitter in order to negotiate licensing arrangements, but it has yet to receive a serious response.
SUISA Digital also works closely with the U.S. performing rights society SESAC, as partners in their joint venture MINT. “SUISA Digital has our full backing in its lawsuit against Twitter International,” said SESAC International president Alexander Wolf in the press release.
Although SUISA Digital is officially based in Switzerland and Liechtenstein, the organization filed the lawsuit in Munich, since it’s part of a larger market, as well as one that has traditionally been friendly to copyright.
This isn’t the only music infringement lawsuit against X/Twitter. In June, dozens of music publishers sued the company for similar behavior. But there are several important differences between the two cases. In the U.S., X operates under the Digital Millennium Copyright Act, which offers online platforms “safe harbor” for infringement committed by their users, as long as they act to remove unauthorized content. (The publishers’ suit alleges that the company didn’t do that, or have a policy to ban repeat infringers.)
In Germany, the equivalent law falls under the European Copyright Directive, which is broadly similar but requires platforms to make efforts to license content – which the SESAC lawsuit alleges that Twitter did not do.
The other difference is damages. While the music publishers’ suit could be worth as much as $255 million, although that’s a maximum based on statutory damages, in Germany the case would have to establish damages based on the value of the licenses Twitter needed but did not get. Presumably, the idea behind this lawsuit is to force the Elon Musk-led company to enter into serious licensing negotiations.
“I’m a musician. The risk I take is in my chosen career path. I don’t want to take risk in my investments.” This was the most common remark we heard from entertainer clients for years.
And the most common advice those musicians would receive to address their concerns was, “Invest in municipal bonds. Your principal is protected, default risk is low, and you get tax-free income.” For the most part, that was true… until interest rates stayed close to 0% from 2020-2022 and then rose at their fastest pace in US history since then. During that time, municipal bonds were not what they were promised to be — down almost 10% in 2022 — especially for those who thought they couldn’t lose money owning them.
To be fair, barring defaults, and even with the recent price declines, municipal bonds bought prior to the rise in interest rates will give investors the return they signed up for when they bought them. But now we have artists coming to us excited that they are getting paid 5% pre-tax on cash in money market funds. However, those heady money market rates can be cut in half by taxes and they won’t last forever — we suspect they won’t even last much longer from here.
So, what can you do for an attractive risk-adjusted return these days while avoiding the volatility of the stock market? Let’s look at some particularly interesting options.
Intermediate Duration Municipal Bonds
While past performance doesn’t always translate into the future, over rolling two-year periods, high-quality intermediate municipal bonds have never lost money. Now, with interest rates at their highest levels in almost 20 years and municipalities’ finances healthy, these bonds look more attractive than they have in a long time.
However, balancing exposure to different sources of return in fixed income is important. We do not recommend just buying Treasuries or Treasury/municipality ladders. Consider an actively managed bond portfolio (as opposed to laddering) with the flexibility to move between municipal bonds and taxable bonds based on their relative attractiveness. This allows you to maximize after-tax returns while also managing interest rate exposure.
Hedged Exposure to Stocks
The S&P 500 is up over 18% year-to-date (as of Dec. 4), but it’s done so in a fairly volatile manner and more than half of the stocks in it are actually down for the year.
For investors concerned about volatility, they can consider reducing exposure to the market in the near-to-medium term by using a defined outcome exchange-traded fund (DOETF). Like other ETFs, these types of securities have daily liquidity and relatively low cost. But what makes DOETFs different from the index ETFs that many investors are familiar with is that they utilize options to create a specially designed payoff. For instance, recently created versions of DOETFs allow an investor to capture around 15% of any upside in stocks while not experiencing the first 15% of any market decline.
So, if the market is up 20% over the next year, investors will be up around 15%. If the market rises 8%, investors’ returns will be the same. If the market is down 10%, the investors won’t have any gains but also won’t take any loss. And if the market has an awful year and ends down 20%, investors would only be down 5%.
Private Credit
Every week brings new headlines about banks cutting back lending in different areas. It raises the question, “Who is lending money to businesses these days?” Private debt funds.
This area has grown substantially since the financial crisis as government regulations have made it harder and costlier for banks to lend. The private markets have stepped into that void. One notable aspect of these loans is that they’re made at floating rates, with financing usually made similarly. That’s protected them from the run-up in interest rates, as fixed interest investments have declined in value. That’s also allowed them to keep up better with inflation. Investors contemplating private credit should consider the fact that some of these strategies are only available to accredited investors or qualified purchasers and they’re often illiquid, with money locked up for several years at a time.
Real Estate
In addition to private credit, we’re seeing attractive opportunities to lend into the commercial real estate (CRE) market, partly for the same reasons as private credit (with banks stepping back) and partly for real estate-specific reasons, such as the pressure on office prices since the pandemic. However, with office being only one small piece of the overall market and with lenders having attractive bargaining power as assets are revalued and refinanced, that’s an area we’ve been highlighting in 2023.
Finally, and further up the risk spectrum, is real estate equity. Even inside that asset class, the risks can vary. With the turbulence in the market, we’re starting to see more attractive opportunities emerge in the “core plus” space, which are typically well-leased, income-producing properties in good locations. They’re often found in commuter suburbs in secondary or tertiary markets.
Like private credit, these real estate strategies are often illiquid, and even some of the strategies which are advertised as more liquid have gated investor redemptions recently. But for investors with enough cash flowing in to meet their outflows (even in a distressed situation) and a longer time horizon, the rewards for accepting that illiquidity can be meaningful.
What to Do
As always, investors should consult with a licensed investment advisor before making investment decisions. While each of the asset classes discussed here may be of interest, they are not suitable for all investors. At the same time, we recognize that having excess cash earning 5% in money market funds may feel nice for now, but it may not feel so nice looking back on things in a year’s time. Investors don’t need to feel tied to cash or forced to swing for the fences — there are many options worth considering in the middle ground.
Finally, while we’ve mostly focused on safer options here, which are meant to guard against the risk of market volatility, there’s another risk that investors must weigh — the risk of running out of money during retirement. Taking too little volatility risk can potentially generate excessive depletion risk. We recommend discussing this, and other considerations, with your financial advisor.
Adam Sansiveri is a senior managing director and head of the Nashville Private Client Group at Bernstein. Stacie Jacobsen is a director in Bernstein’s Wealth Strategies Group. Sansiveri and Jacobsen are co-heads of the Sports, Media and Entertainment Group at Bernstein Private Wealth Management, a division of AllianceBernstein. AllianceBernstein is a leading global research and investment management firm headquartered in Nashville with over $700 billion under management and offices in 53 cities in 26 countries.
YG Entertainment has renewed its exclusive contract with all four members of BLACKPINK, the company announced Wednesday (Dec. 6), sending stock in the K-pop giant soaring on news that its most successful act would remain with the agency. At the market’s open, YG’s share price skyrocketed from 48,000 KRW ($36.57) — its lowest since January […]
Sphere Entertainment provided the first inside glimpse at the finances of James Dolan‘s $2 billion Sphere project in Las Vegas in a new Securities and Exchange Commission filing on Tuesday (Dec. 5).
Spun off from Madison Square Garden Entertainment in April and now trading on the NYSE as SPHR, the company is expected to report positive adjusted income this quarter thanks to the opening of the venue and a successful run of shows including U2:UV’s Achtung Baby Live At Sphere.
According to Billboard Boxscore, U2‘s 17-show run beginning in September at Sphere generated nearly $110 million in ticket sales. The SEC filing notes that those shows generated a total of $30.7 million in revenue for Sphere Entertainment through Nov. 30. Meanwhile, Sphere Entertainment’s own content offering, Darren Aronofsky’s Postcard from Earth, has generated approximately $44.5 million in total revenue from ticket sales from 111 showings.
U2 played its first show at Sphere on Sept. 29, 2023, kicking off a multi-month run at the venue. Due to the strong demand, 15 more shows have been added in January, February and March 2024, bringing the band’s planned number of performances to 40.
Also in the SEC filing, the company announced plans to raise money through the sale of $225 million in convertible senior notes that are due to mature in 2028, as well as the option for purchasers to buy an additional $33.75 million in notes.
Sphere Entertainment plans to use a portion of the proceeds from the notes sale to fund capped call transactions designed to reduce the potential dilution of its common stock from the conversion of debt into equity. The remainder of the net proceeds will be used for general corporate purposes, including capital for Sphere-related growth initiatives, according to a release announcing the offering. The initial conversion rate, interest rate and certain other terms of the notes will be negotiated between Sphere Entertainment and the initial purchasers.
Sphere Entertainment began the quarter (starting Sept. 30) with $433.5 million in cash on hand, with $123 million coming from advance ticket sales. The principal balance of the company’s total debt at the beginning of the quarter was approximately $1.2 billion, including $932.3 million of debt under the MSGN Credit Facilities. Under the terms of the MSGN deal, $103.1 million in required quarterly amortization payments are due between Sept. 30, 2023, and Oct. 11, 2024.
Shares of Sphere Entertainment dropped nearly 20% in trading after the company announced the debt offering, but bounced back slightly and were down 15.5% to $28.41 at the market’s close.
Music credits database Jaxsta is still Jaxsta, but the parent company housing it — along with social networking platform Vampr and online record store Vinyl.com — is now called Vinyl Group Ltd. The fine-print flip was announced on Tuesday (Dec. 5) following approval from shareholders at the publicly-listed company’s general meeting last month. “It’s a […]
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 issues a ruling in the Hall & Oates lawsuit after the dispute turns public and personal, Young Thug’s RICO trial gets underway in Atlanta with opening statements and witness testimony, Kelly Clarkson wins a California labor law ruling against her ex-husband, and much more.
THE BIG STORY: Hall v. Oates Goes Public
The mysterious legal battle among Hall & Oates got a lot clearer last week – with detailed filings from each artist, a hearing in open court, and a judge’s ruling on how the case will proceed.
To catch you up: After a decades-long, highly-lucrative musical partnership, Daryl Hall sued John Oates last month in Nashville court. The case was initially filed under seal, leading to days of speculation about why the beloved duo had become a house divided. Eventually, unsealed documents showed that Hall had sued Oates to block him from selling part of their joint venture to Primary Wave.
Last Wednesday, the case burst fully into the open. First, Hall filed court papers accusing partner John Oates of leaving him “blindsided” by secretly arranging the Primary Wave deal – an act he called the “ultimate partnership betrayal.” Oates responded hours later, saying he was “tremendously disappointed” that Hall had chosen to make “inflammatory, outlandish, and inaccurate statements about me.”
The filings were packed with new details – not just about the exact contours of the legal dispute, but also about the duo’s broader “divorce,” about Hall’s problems with Primary Wave in particular, and about each man’s personal feelings toward his former partner. Go read our full story here.
A day later, attorneys for the pair headed to court for their first showdown. Hall was repped by Christine Lepera of Mitchell Silberberg & Knupp, who urged a judge to extend a restraining order preventing Oates from completing the Primary Wave sale until an arbitrator can hear Hall’s objections. Oates was repped by Derek Crownover from Loeb & Loeb LLP, who argued that no such order was necessary.
On Thursday afternoon, Chancellor Russell Perkins agreed to extend the restraining order, blocking Oates from selling to Primary Wave until February or until the arbitrator tackles the case – whichever comes first. Go read our full story explaining why.
The case will now head to private arbitration, for which an arbitrator has already been selected but an initial hearing has not yet been scheduled. Stay tuned…
THE OTHER BIG STORY: YSL RICO Trial Begins
More than 18 months after chart-topping rapper Young Thug was indicted on accusations that he ran a violent Atlanta street gang, he finally headed to trial last week.
In their opening statements, Atlanta prosecutors claimed that Thug was “King Slime,” a powerful boss operating his “Young Slime Life” gang like a “pack” of wolves – even reading a passage from The Jungle Book for jurors. And they defended their controversial use of his music to help prove it.
“We didn’t chase any lyrics to solve any murders,” Adriane Love told jurors. Instead, she said prosecutors in this case “chased the murders and found the lyrics” that pointed to true, specific events.
A day later, Thug’s lawyer responded by telling jurors that his client had been “born into a society filled with despair” and had merely rapped about violent crime because “these are the stories he knew” — and that prosecutors had cherry-picked lyrics that matched the crimes they hoped to pin against him.
“This is the environment he grew up in. These are the people he knew, these are the stories he knew. These are the words he rhymed,” Brian Steel told the jury. “This is art. This is freedom of speech.”
After opening statements concluded, prosecutors began presenting witnesses – a process that is expected to last months.
Other top stories this week…
SINCE U BEEN GONE – Kelly Clarkson won a legal ruling in California that said her ex-husband Brandon Blackstock owes her more than $2.6 million in commissions she paid to him while he serving as her manager. The decision, issued by California’s labor commissioner, said Blackstock had “unlawfully procured” a number of business deals for Clarkson, including her lucrative role as a judge on The Voice, that should have been handled by her talent agents at Creative Artists Agency (CAA).
‘FICTITIOUS’ CONCERTS? – Rapper Polo G sued a European tour booking firm over canceled plans for a string of concerts, claiming that the company continued to advertise the shows anyway — actions he calls “a shocking and outrageous fraud.”
YOUTUBER SLAPPS BACK – YouTube personality Spencer Cornelia — known for his investigative video series on the music industry — prevailed in a defamation lawsuit filed by wealth coach Derek Moneyberg. The case, which concerned YouTube interviews in which Moneyberg was termed a “Charlatan,” was tossed out under California’s anti-SLAPP law – a statute aimed to quash lawsuits that threaten free speech.
TIKTOK BAN BLOCKED – Montana’s first-in-the-nation law banning the video-sharing app TikTok in the state was blocked by a federal judge who ruled that the statute likely violates the First Amendment. The judge ruled that the law “oversteps state power and infringes on the Constitutional right of users and businesses.”
ARETHA ESTATE BATTLE – A judge overseeing the estate of Aretha Franklin awarded real estate to the late star’s sons, citing a handwritten will from 2014 that was found between couch cushions. The ruling came months after a Detroit-area jury said the document was a valid will under Michigan law, despite scribbles and many hard-to-read passages. Franklin had signed it and put a smiley face in the letter “A.”
HarborView Equity Partners, a rising player in music acquisitions that has built a hip-hop and R&B-heavy song catalog, announced Tuesday (Dec. 4) that it amended its senior secured credit facility to increase its borrowing capacity from $200 million to $300 million. The additional $100 million of funding will be used to continue to acquire music royalty catalogs as well as for general corporate purposes.
The credit facility is led by Fifth Third Bank and includes California Bank & Trust, MUFG Bank, Regions Bank and BankUnited. For the amended facility, three new lenders were added to the syndicate: Bank of America, Barclays and First Bank & Trust Company.
“HarbourView remains committed to providing the best execution for our growing LP base, against a relatively challenging market environment. We are thankful to both our new and existing financing partners for their commitment to HarbourView’s success,” said HarbourView head of capital markets Carlos Cruz in a statement.
“As capital conditions evolve, we are grateful for the continued support of our banking partners who have helped support HarbourView’s tremendous growth since inception,” added HarbourView CEO/founder Sherrese Clarke Soares.
Clarke Soares, a former managing director at Morgan Stanley who later founded Tempo Music and won the UBS & Billboard Trailblazer Award in February, has been attracted to R&B, hip-hop and Latin genres in addition to the classic pop and rock catalogs pursued by most investors.
Founded in 2021, the Newark, N.J.-based Harbourview is behind such recent acquisitions as the royalty income of select Nelly recordings, select recorded music and publishing assets of Wiz Khalifa and select publishing assets of Kane Brown. To date, HarbourView has acquired 45 music catalogs spanning about 26,000 songs. HarbourView owns the publishing catalog of “Despacito” co-writer Luis Fonsi and the publishing catalog of Dre & Vidal, the songwriting and production duo behind hits from Alicia Keys, Jill Scott and Mary J. Blige.
“We’re looking at the intersection of historical performance, growth trends, returns — and expectation in terms of price,” Clarke Soares told Billboard in 2022. “Where all that intersects is where we have found a lot of great opportunities.”
Audio Up Media, best known for its award-winning podcasts including Make It Up as We Go and Halloween in Hell, has launched Audio Chateau Records and formed a partnership with Virgin Music Group.
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“So much of our audio entertainment incorporates original music, and we are constantly discovering and working with new talent that deserves to be heard by a wider audience,” said Audio Up CEO Jared Gutstadt in a statement. “ Our new partnership with [Virgin Music Group president] Jacqueline Saturn and [head of global music strategy] Matt Sawin and the great team at Virgin provides us with an additional and powerful platform to launch new talent into the stratosphere.”
The first release, coming next month, will be from Randy Savvy, who is co-founder of the Southern California equestrian group, Compton Cowboys. Savvy’s album, which will be executive produced and co-written by Gutstadt, will combine rap and country music.
Also expected in the first quarter of 2024 will be the debut album from Maejor Audio Sunshine, a group composed of producer/songwriter Maejor, who hosts Audio Up’s music and wellness Maejor Frequency podcast (which was named Adweek’s 2022 podcast of the year); Bipolar Sunshine, who is best known for “Middle,” his collaboration with DJ Snake; and Gutstadt, who as a producer/songwriter, has worked with Jelly Roll and Machine Gun Kelly, among others.
Coming in summer 2024 will be a full-length album from Uncle Drank, a character from Audio Up’s The Ballad of Uncle Drank, portrayed by Will Sasso. The musical podcast’s voice cast also includes Luke Wilson, Brian Kelley, Kinky Friedman and Billy Zane.
Jared Gutstadt
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“It’s the perfect time for Jared and his team to expand their platform for creating and releasing music, and all of us at Virgin are thrilled to be the distribution partner for Audio Chateau Records,” said Saturn in a statement. “The company’s initial slate of releases is reflective of Jared’s ability to sign and develop artists and projects that are unique to the marketplace, and we look forward to having a lot of fun and success together in the coming years.”
Backing for the label includes investments from Audio Chateau board member/entrepreneur Jonathan Schulman and producer Gillian Hormel, heiress to the Hormel Foods brand, who recently launched Partners in Kind, a $50 million equity fund that will develop film and television projects that promote kindness.
Audio Up will continue to produce podcasts and other entertainment content, including former Donald Trump attorney Michael Cohen’s podcast, Mea Culpa, and comedy podcast Bedtime Stories of the Ingleside Inn. In 2021, Audio Up released Strawberry Spring, the first podcast adaptation of a Stephen King short story.