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Universal Music Group is asking a federal judge to halt all discovery in Drake’s defamation lawsuit over Kendrick Lamar’s diss track “Not Like Us,” arguing that the star is unfairly demanding “highly commercially sensitive documents” – including Lamar’s record deal.
A day after moving to dismiss the lawsuit, UMG followed up Tuesday by asking the judge to pause discovery until he rules on that motion. That ruling is likely to end the entire case, UMG argued, and the label should not face costly demands for documents that will ultimately “be rendered moot.”
Such a delay is particularly necessary, UMG said, because Drake’s lawyers are already demanding “broad discovery” requests that impose an “undue burden” on the company. Those asks have allegedly ranged from Interscope boss John Janick’s pay structure to Lamar’s record deal.
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“Drake’s requests…seek production of confidential, proprietary, and highly commercially sensitive documents — including all contracts between UMG and Kendrick Lamar,” the label writes. “Proceeding with discovery while the motion is pending would waste the parties’ resources and would constitute an undue burden on defendant.”
In a statement Wednesday, Drake’s attorney Michael J. Gottlieb said it was “unsurprising” that UMG was “desperate” to avoid handing over evidence: “This motion is a ploy to delay producing documents and communications that UMG hopes to keep hidden and buried. If UMG has nothing to hide, it should not have an issue with discovery.”
UMG did not immediately return a request for comment.
Lamar released “Not Like Us” last May amid a high-profile beef with Drake that saw the two stars drop a series of bruising diss tracks. The song, a knockout punch that blasted Drake as a “certified pedophile” over an infectious beat, eventually became a chart-topping hit in its own right and was the centerpiece of Lamar’s Super Bowl halftime show.
In January, Drake took the unusual step of suing UMG over the song, claiming the label had defamed him by boosting the track’s popularity. The lawsuit, which doesn’t name Lamar himself as a defendant, alleges that UMG “waged a campaign” against its own artist to spread a “malicious narrative” about pedophilia that it knew to be false.
UMG moved to dismiss the case on Monday, arguing not only that Drake’s allegations against the company were clearly “meritless,” but that the star filed his case simply because he had been publicly embarrassed: “Instead of accepting the loss like the unbothered rap artist he often claims to be, he has sued his own record label in a misguided attempt to salve his wounds.”
In Tuesday’s filing, UMG argued that it was highly likely to succeed on those claims. And it warned that the daunting cost of defending against meritless defamation cases can be abused by those that want to squelch free speech.
“Critically, courts in this District have emphasized that defamation defendants must be protected from unnecessary discovery to safeguard First Amendment protections,” the company’s lawyers write. “A stay is therefore particularly warranted here given the untenability of Drake’s defamation claim and the First Amendment rights at issue.”
The two sides have already sparred over discovery once before. In a court filing last month, Drake’s lawyers said UMG was unfairly seeking to delay the case as their client continued to be defamed — and they cited Lamar’s halftime show as evidence of such ongoing harm. A judge eventually sided with Drake over that procedural issue, setting the stage for UMG’s motion on Tuesday.
Miley Cyrus has lost her initial bid to dismiss a copyright case claiming her chart-topping “Flowers” ripped off the Bruno Mars song “When I Was Your Man,” allowing the high-profile lawsuit to proceed toward a trial.
Seeking to end the case at the outset, attorneys for Cyrus had argued that the plaintiff who filed the lawsuit lacked the legal “standing” to pursue it. The case was filed not by Mars himself, but a financial entity called Tempo Music Investments that bought the rights of his co-writer Philip Lawrence.
But in a ruling issued Tuesday, a Los Angeles federal judge rejected that argument, calling it “incorrect” and a “misunderstanding” of existing legal precedents.
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“Tempo now steps into Lawrence’s shoes and is a co‐owner of the exclusive rights of the copyright,” Judge Dean D. Pregerson wrote. “Because Lawrence as a co‐owner could sue for infringement, Tempo as co‐owner, in lieu of Lawrence, can sue for infringement without joining the other co‐owners of the copyright.”
Attorneys for Cyrus called Tempo’s partial ownership a “fatal and incurable defect in plaintiff’s claim,” but Judge Pregerson ruled that endorsing the star’s argument would be a radical shift in the legal landscape and have a profound economic and creative impact.
“Such a limitation would diminish the value of jointly owned copyrights, because buyers would be less interested in purchasing a copyright that they cannot enforce, thereby disincentivizing co‐authorship and collaboration in works,” the judge wrote. “This would undermine Congress’s intent.”
In rejecting it, the judge took Miley’s argument to its rational endpoint: “If, as songwriter defendants’ arguments seem to suggest, a co‐owner’s right to sue for infringement is lost upon transfer, then if all original co‐authors transferred their interest, the copyright could never be enforced.”
Tuesday’s ruling is only an initial decision, and does not mean that Tempo will win its case against Cyrus. As it moves ahead, her attorneys will pivot to more substantive arguments – that her song simply did not infringe the Mars hit because they share only “unprotected ideas and musical building blocks.”
Attorneys for both sides did not immediately return requests for comment on Tuesday.
“Flowers,” which spent eight weeks atop the Hot 100, has been linked to “Your Man” since it was released in January 2023. Many fans immediately saw it as an “answer song,” with lyrics that clearly referenced Mars’ song. The reason, according to internet sleuths, was that “Your Man” was a favorite of Cyrus’ ex-husband Liam Hemsworth — and her allusions were a nod to their divorce.
When “Flowers” was first released, legal experts told Billboard that Cyrus was likely not violating copyrights simply by using similar lyrics to fire back at the earlier song — a time-honored music industry tradition utilized by songs ranging from Lynyrd Skynyrd’s “Sweet Home Alabama” to countless rap diss records.
But Tempo sued in September, claiming “Flowers” had lifted numerous elements beyond the clap-back lyrics, including “melodic and harmonic material,” “pitch ending pattern,” and “bass-line structure.” Tempo, which had purchased a fractional share in the song from co-writer Lawrence, argued it was “undeniable” that Cyrus’ hit “would not exist” if not for “Your Man.”
In her motion to dismiss the case, attorneys for Miley said that the total lack of involvement from Mars and the song’s two other co-writers was not some procedural quirk in the case, but rather a fatal flaw: “Without the consent of the other owners, a grant of rights from just one co-owner does not confer standing.”
LONDON — Global music sales grew for the tenth consecutive year in 2024 but the risk of generative AI systems using copyright-protected music to freely train their systems poses “a very real and present threat” to the future of the industry, warn record executives.
Total recorded music revenues climbed to $29.6 billion in 2024, a rise of 4.8% on the previous year, according to the International Federation of the Phonographic Industry’s (IFPI) Global Music Report 2025, published Wednesday (Mar. 19).
Driving the growth was a strong increase in paid streaming subscription revenue, which rose 9.5% to $15.2 billion, while total streaming revenues, comprising of paid subscription and advertising-supported tiers, rose 7.3% year-on-year to $20.4 billion, representing 69% of recorded music sales worldwide.
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Although last year’s growth rate is roughly half that of 2023 (when revenues rose by just over 10%) total music sales still reached the highest level since 1999 — when IFPI first started compiling global music revenues and sales totaled $22.2 billion — on an absolute dollar basis, not accounting for inflation. Piracy and declining physical sales saw the market bottom out at $13 billion in 2014.
The subsequent recovery and decade-long growth of the global record industry is now, however, being placed in jeopardy by tech companies who want to rollback copyright protections to enable them to use music works without a license for training AI systems, caution creators and executives. Earlier this week, Paul McCartney and Paul Simon were among 400 musicians, filmmakers, writers and actors who signed an open letter to the Trump administration opposing submissions from tech companies OpenAI, Anthropic and Google who want to use copyrighted works without permission from rights holders.
In the United Kingdom, the government is consulting on proposed changes to copyright law that, if implemented, would allow AI developers to freely use creators’ content for training purposes, unless rights holders “opt out.”
“We are asking policymakers to protect music and artistry,” said IFPI CEO Victoria Oakley in a statement accompanying the Global Music Report. “We must harness the potential of AI to support and amplify human creativity, not to replace it.”
“If those [tech companies] arguing for these exceptions get their way, they can… put the existing [digital music services] out of business while paying artists and songwriters nothing. That is an incredible market distortion,” said Dennis Kooker, president of global digital business at Sony Music Entertainment, at the report launch in London.
Breaking down 2024’s global music sales, users of paid music subscriptions grew to 752 million worldwide, says the London-based organization, a rise of over 10% on the previous year. Subscription streaming revenues now account for just over 50% of global music sales.
On the physical side of the business, an 18th consecutive year of vinyl sales growth (up 4.6%) was not enough to arrest a 3.1% slide in overall physical revenues, which fell to $4.8 billion. IFPI said the decrease was partially due to a fall in physical sales in Asia, which accounts for more than 45% of all physical revenues worldwide.
In terms of market share, physical accounted for just over 16% of the overall market last year, down from 18% in 2023.
Performance rights revenue climbed 5.9% to $2.9 billion, representing just under 10% of global revenues and marking the sector’s fourth successive year of growth. Sync income was flat with 2023 at $650 million, representing a 2.2% share of the market.
Taylor Swift was 2024’s biggest-selling global artist, ahead of Canadian rapper Drake and K-pop sensation SEVENTEEN, IFPI announced last month, marking the fifth time she that she has taken the global crown and third consecutive year. Benson Boone’s Beautiful Things was last year’s biggest-selling global single across all digital formats with 2.1 billion equivalent streams.
Mexico Breaks Into Global Top 10 Music Markets, Bumping Australia
In terms of world markets, IFPI said that music revenues were up in every region and all but three of the 58 markets it tracks, with the U.S. retaining its long-held No. 1 position with music sales growing 2.2% year-on-year. By comparison, the U.S. recorded music market grew by 7.2% in 2023 and 4.8% the year prior.
The world’s second largest music market, Japan, was flat year-on-year due to a decline in physical sales, reports IFPI. The third and fourth-biggest markets for recorded music remain the United Kingdom (+4.9%) and Germany (+4.1%), respectively. China, ranked No. 5 globally, grew music sales by 9.6%. (IFPI’s free-to-access report does not provide market-by-market revenue breakdowns).
The rest of the top 10 is made up of France (+7.5%), South Korea (-5.7%), Canada (+1.5%), Brazil (+21.7%, the fastest growing top 10 market) and Mexico, which increased revenues by 15.6% to overtake Australia as the tenth largest global recorded music market.
Those cross-market gains are mirrored on a regional basis with revenues from the U.S. and Canada region up 2.1% and together representing the greatest share of global music sales at just over 40%.
Latin America — where streaming makes up almost 88% of the recorded music market — saw growth of 22.5%, once again far outpacing the global growth rate and marking the region’s 15th consecutive year of revenue growth.
Europe remains the second-biggest region for music sales, accounting for more than a quarter (29.5%) of global revenues and growing 8.3% year-on-year. In third place is Asia, where overall revenues rose by just 1.3% compared to almost 15% in 2023 due to a 4.9% fall in physical sales.
The two fastest growing regions globally were Middle East and North Africa, where streaming holds a 99.5% share of the market and which saw music sales grow 22.8%, and Sub-Saharan Africa, which recorded a 22.6% rise in revenues to surpass $100 million for the first time.
South Africa remains the largest market in the Sub-Saharan Africa region, accounting for 75% of its revenues, following growth of 14.4%. Revenues in Australasia climbed 6.4% to $629 million with Australia and New Zealand increasing sales by 6.1% and 7.8% respectively.
(IFPI uses current exchange rates when compiling its Global Music Report, restating all historic local currency values on an annual basis. Market values therefore vary retrospectively as a result of foreign currency movements, says IFPI, which represents more than 8,000 record company members worldwide, including all three major labels, Universal Music Group, Sony Music Entertainment and Warner Music Group.)
Tom Corson, co-chairman/COO of Warner Records, is set to receive the City of Hope’s 2025 Spirit of Life Award. It will be presented this fall at the annual Spirit of Life Gala in Los Angeles. For more than 50 years, the music industry has united around the Spirit of Life campaign, raising nearly $170 million to support City of Hope’s research and treatment efforts — mainly focused on cancer and diabetes.
“It is a profound honor to be recognized as this year’s Spirit of Life honoree,” Corson said in a statement. “At Warner Records, we often say it’s not just about the song — it’s about the artist. In the same way, City of Hope isn’t just about treatments — it’s about the people, their dreams, and their futures. When I sit down with an artist, we talk about their goals and aspirations, and we work to make those dreams a reality. That same spirit of transformation is at the core of City of Hope’s mission: turning hope into tangible breakthroughs for patients fighting cancer. The music industry has always been about more than entertainment; it’s about connection, transformation, and impact. I am proud to stand with my peers in championing this cause and supporting the vital and lifesaving work City of Hope does every day.”
Evan Lamberg, president of Universal Music Publishing Group North America and chairman of City of Hope’s Music, Film and Entertainment Industry (MFEI) board, said Corson’s honor was well-earned: “Tom has been an unwavering supporter of City of Hope for years, and his leadership and dedication to both our industry and this cause make him a truly deserving honoree.”
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Alissa Pollack, executive vp of global music marketing at iHeartMedia and president of City of Hope’s MFEI board, added: “Tom Corson has been a driving force in shaping modern music, and his philanthropic passion reflects that same commitment. The Spirit of Life campaign reminds us of the power of music to heal and inspire, and Tom’s leadership will help us elevate that message even further this year.”
“We are thrilled to honor Tom Corson as this year’s Spirit of Life recipient,” said Kristin Bertell, chief philanthropy officer at City of Hope. “Tom’s leadership, both in the music industry and as a long-time member of the Music, Film and Entertainment Industry Board, exemplifies the transformative spirit that defines our work.”
The honor is a cornerstone of the MFEI’s annual philanthropic campaign. This year, the campaign takes on even greater significance as Los Angeles continues to recover from January’s devastating wildfires — events that not only displaced families but also contributed to long-term health risks due to toxic smoke exposure.
A group of key industry executives founded City of Hope’s MFEI group in 1973. The Spirit of Life Award is the organization’s most prestigious honor. Past honorees include Jay Marciano, Lyor Cohen, Shelli and Irving Azoff, Edgar Bronfman Jr., Coran Capshaw, Eddy Cue, Clive Davis, Sir Lucian Grainge, Allen Grubman, Quincy Jones, Rob Light, Monte and Avery Lipman, Doug Morris, Mo Ostin, Bob Pittman, Jon Platt and Sylvia Rhone.
Since Corson joined Warner Records in January 2018, the storied label has had success with such new and established artists as Dua Lipa, Zach Bryan, Michael Bublé, Benson Boone, Teddy Swims, Rufus Du Sol, Linkin Park, Cher, Dasha, Red Hot Chili Peppers, JISOO, Josh Groban, Gary Clark Jr., Green Day, The Black Keys, Saweetie, NLE Choppa and Omar Apollo.
Corson came to Warner Records from RCA Music Group, where he spent nearly 18 years and most recently served as president/COO. He began his career in the music industry as a college intern at IRS Records. Upon graduating from UCLA, he joined the label as director of West Coast sales. Corson moved to A&M Records in 1985, advancing to vp of marketing. In 1990, he was named senior vp of marketing at Capitol Records. From 1996 to 2000, he served as senior vp of marketing at Columbia Records.
Corson has appeared on the Billboard Power 100 list for the last 14 years. On this year’s list, published in January, he and Warner Records co-chairman/CEO Aaron Bay-Schuck were listed at No. 15. Billboard’s capsule entry noted, in part: “Since taking over Warner in 2018, they’ve signed stars Zach Bryan, who was a 21-time finalist for the 2024 Billboard Music Awards; Teddy Swims and Benson Boone, who are both nominated for best new artist Grammys; Dasha, who ‘crossed over in pop and country,’ Corson says; and rapper NLE Choppa, who hit 9 billion career total streams. The label also relaunched Linkin Park, which released its first studio album in seven years, From Zero, and debuted at No. 2 on the Billboard 200.”
In addition, Corson and Bay-Schuck were named 2024 Variety Hitmakers Executive of the Year. Corson is a member of the Recording Academy and the Music and Entertainment Industry board for City of Hope and also sits on the executive committee of the board of directors for the T.J Martell Foundation. He is also the chairman of the UCLA School of Music Business’ board of advisors.
Colombian reggaetón star Ryan Castro has signed a global publishing deal with Warner Chappell Music, the company tells Billboard. Born in Medellín, Castro released his debut album El Cantante del Ghetto, a nod to his journey from street busking to bona fide hitmaker, last year. “Joining Warner Chappell is a big step in my career as an […]
Phoenix’s Rebel Lounge is announcing their “10 Year Anniversary Series” this May with 16 shows curated to honor the Arizona music club, including a close-out set on June with The Maine for a 10-year celebration of their album American Candy.
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The anniversary run will begin May 1 with two nights from the band Authority Zero. For the first night, Authority Zero will dive into “Rhythm & Booze,” with an acoustic set that will be recorded for their next live acoustic release. Authority Zero will crank up the wattage for their set on May 2 for a high-energy set.
The Rebel Lounge opened on May 20, 2015, under the ownership of Stephen Chilton of Psyko Steve Presents and musician Chuckie Duff from the band Dear and the Headlights. In the last decade, the venue has won Best Punk Club, Best Rock Club, Best Marquee, Best Mural and Best Rebooted Venue by the Phoenix New Times and in 2024, Billboard selected The Rebel Lounge as the Best Venue Under 500-Capacity in their list of 2024 Top Music Venues.
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“When we started talking about how to celebrate The Rebel Lounge turning 10 years old, and we were discussing which bands we would want to feature, we realized it was hard to do one celebration because we work with so many different types of artists,” said Chilton in a statement. “We immediately knew we wanted to do something that all the valley music fans that support The Rebel could appreciate.“
Chilton added that the goal of the series is to highlight the diversity of artists and local acts that have performed at the Rebel Lounge over the last decade.
Roger Clyne & PH Naffah (of Roger Clyne & The Peacemakers) return to the Rebel Lounge to celebrate Cinco de Mayo on May 5. Thrash metal favorites Sacred Reich take to Rebel’s stage on May 16, followed The Summer Set on May 17 promoting their new track “I Don’t Wanna Party.” Rap metal heavyweights Dropout Kings will perform May 28 before hitting the road for Motocultor Festival and Odyssea.
The anniversary series will also feature artists who launched their career at the Rebel Lounge including Phoenix Afrobeat Orchestra on May 22, homegrown emo night event EmoNightPhx on May 3rd and Phoenix’s long running hip hop and dance showcase Blunt Club set for May 23.
A calendar of shows for May is available below. Tickets for the series go on sale Friday at 10 a.m. local time. Tickets and information for all shows can be found at TheRebelLounge.com/10years.
Tencent Music Entertainment surpassed revenue of $1 billion in the fourth quarter, representing an 8.2% increase from the prior-year period, while net profit climbed 47.3% to $284 million.
The Chinese music streaming company operates three music streaming services — Kugou Music, QQ Music and Kuwo Music — as well as WeSing, a karaoke app. In recent years, Tencent Music’s business has become increasingly dominated by its music services as its social entertainment business continues to lose business.
Online music revenue grew 16.1% to $799 million due to music subscription gains and growth in advertising revenue, while music subscription revenue jumped 18% to $552 million in the quarter as the number of subscribers increased 13.4% to 121 million. Additionally, gross margin jumped to 43.6% in the fourth quarter from 38.3% in the prior-year period. The company attributed the improvement to strong growth in music subscriptions and advertising revenue and increased usage of owned content, as well as its adoption of the Super VIP program, a subscription tier that costs five times the normal rate. Monthly average revenue per user (ARPU) grew to 11.1 RMB ($1.52) from 10.7 RMB ($1.47) due in part to the expansion of the Super VIP membership program.
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The social entertainment business has suffered a sharp decline since the Chinese government began cracking down on the use of live-streaming apps to enable gambling in 2021. In the fourth quarter, social entertainment revenue fell 13% to $223 million and mobile monthly active users declined 21.2% to 82 million (the number stood at 223 million at the end of 2020). Monthly ARPU fell 9.7% to 70.4 RMB ($9.64), down from 172.1 RMB ($26.38) at the end of 2020, and paying users slipped 3.8% to 7.7 million.
For the full year, revenue increased 2.3% to $3.89 billion while net profit climbed 36.2% to $974 million, and gross margin improved to 42.3% from 35.3%. Online music revenue grew 25.5% to $2.98 billion while social entertainment revenue fell 36.1% to $912 million. Full-year gross margin improved to 42.3% from 35.3% in 2023.
Tencent Music Entertainment’s music platforms have evolved into one-stop shops that also include audiobooks, merchandise, downloads and live-streaming. In 2024, the company produced physical albums for Xiao Zhan and Lay Zhang and boosted album sales for Esther Yu by providing options to purchase merchandise along with her digital albums. It also partnered with the band Mayday for an online New Year’s Eve concert.
The company also announced a $273 million dividend and a share repurchase program of up to $1 billion over a two-year period that will commence this month. A $500 million share repurchase program announced in March 2023 will conclude this month.
Tencent Music Entertainment’s shares, which trade on both the New York Stock Exchange (NYSE) and the Stock Exchange of Hong Kong, had risen 15.8% to $15.12 on the NYSE at the close of trading on Tuesday.
For over a year, the K-pop industry has been embroiled in a heated debate over the girl group NewJeans. In fact, even the name “NewJeans” has become a point of contention following the group’s announcement in February that they would be rebranded as NJZ. However, their management company, ADOR, has disputed the legitimacy of this name change. While the group has requested to be referred to as NJZ, no legal ruling has been made on the matter, leaving the existing contract intact. As a result, from a legal standpoint, NewJeans remains the more accurate designation for the time being.
Amid ongoing legal uncertainties, NewJeans is moving ahead independently. This March, the group is scheduled to perform at ComplexCon Hong Kong, where they are reportedly debuting a new song. This move appears to be an attempt to further establish their rebranded identity as NJZ. After all, performing NewJeans’ hit songs while adopting a new name could be seen as contradictory.
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Music organizations and associations in Korea are closely monitoring the NewJeans situation. In February, five major organizations — the Korea Management Federation, Korea Entertainment Producers’ Association, Record Label Industry of Korea, Recording Industry Association of Korea and the Korea Music Content Association — issued a statement expressing concerns over NewJeans and former ADOR CEO Min Hee-jin’s independent activities. Their primary issue is “tampering,” with suspicions that Min has been attempting to remove NewJeans from ADOR.
The statement from the five organizations reads, “For the past 10 months, we have observed a growing trend, in which certain parties attempt to resolve private disputes through media campaigns and unilateral public statements instead of proper negotiations or legal procedures, including former ADOR CEO Min Hee-jin’s press conferences, NewJeans member Hanni’s appearance at a National Assembly audit, and the group’s independent activities.”
NewJeans fans argue that these five organizations are merely echoing ADOR/HYBE’s stance. However, the key issue at hand is their emphasis on the importance of “adhering to legal processes.”
At a press conference on Nov. 28, 2024, NewJeans members announced that “their contract with ADOR would officially end at midnight on November 29th.” They stated, “We have had enough conversations and sent certification of content, but there were no responses during that time. As ADOR and HYBE have breached the contract, we are terminating it.”
Since then, NewJeans has continued its individual actions and reiterated its stance in interviews with foreign media. In a CNN interview last month, the group emphasized, “We have completely lost trust in ADOR. We believe we will win this battle against HYBE and ADOR.” Through Japan’s TV Asahi, a subsidiary of Asahi Shimbun, they stated, “Right now, there are very few media outlets in Korea that carry our voices. Instead of letting that discourage us, we will enjoy our activities.”
International fans who have closely followed NewJeans’ statements may be more inclined to side with the group. However, with both the lawsuit verifying the validity of their claims and the injunction application still ongoing, their assertions remain one-sided. In this context, foreign media that present NewJeans’ perspective without providing balanced coverage of the ongoing legal dispute risk spreading misinformation.
NewJeans and ADOR remain deeply divided, locked in a tense standoff. On March 7, the Seoul Central District Court held the first hearing on ADOR’s provisional injunction request to “maintain the status of agency and prohibit the signing of advertising contracts.” Both parties presented conflicting arguments and failed to reach a resolution.
As a result, it is challenging to take a definitive stance between ADOR or NewJeans. The most prudent thing to do right now is to wait and see how the court reaches its decision, based on the various claims and substantial evidence presented by both parties.
This is precisely the position shared by the five music industry organizations in Korea. On Feb. 27, they held a press conference titled, “Let’s Keep a Promise: Without Record Producers, There is No K-pop!,” where they declared:
“No one can confirm the cancellation of a contract before the court’s judgment, and we must all accept the legal outcome, whatever it may be. This is the only way to protect our industry amid conflict and dispute.”
For now, the K-pop community watches and waits for the court’s decision — a ruling that could have lasting implications for NewJeans, ADOR and the entire industry.
This article was written by Austin Jin and originally appeared on Billboard Korea.
French streaming platform Deezer reported on Tuesday it had 7 million euros ($7.6 million) in free cash flow for the fiscal year 2024, having achieved break-even status for the first time in its nearly 18-year history last fall.
Founded in August 2007, Deezer has struggled to build its brand outside of its home market in France. But in recent years, it has raised prices and expanded its subscriber-base by being the streaming platform powering German broadcaster RTL, American speaker company Sonos and Latin America’s version of Amazon, Mercado Libre.
“This is an exciting milestone, and it puts Deezer in control of its own destiny,” Deezer Chief Financial Officer Carl de Place tells Billboard on becoming cash-flow positive. “We have been able to exceed our guidance and to deliver 11.8% growth thanks to a nearly 10% increase in direct revenue from France, and the revenue from our partnerships business, which grew at 24% year over year.”
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A growing number of streaming platforms have raised prices in recent years, and Deezer was at the forefront having raised subscription prices in France, its largest market, in January 2022 and other markets later in the year. After Apple, Amazon, YouTube and Spotify all followed with their own increases, Deezer raised its prices again in September 2023.
The company reported revenue increased 12% to 542 million euros ($590.8 million), above their 10% growth target. Direct revenue in France increased 9.7% from the year ago period thanks to a 4.3% increase in subscriber revenue and greater average revenue per user (ARPU). Revenue from partners white labeling its services rose 24% year over year.
While not a profitable fiscal year, the company said it saw strong improvement. Adjusted earnings before interest tax depreciation and amortization (EBITDA) for the full year was negative 4 million euros ($4.4 million), and a 21.2% increase in its adjusted gross profit to 134 million euros ($146 million), equal to a 24.7% margin. The company had 62 million euros ($67.6 million) cash in its reserves at year end.
The company plans to double-down on its brand partnership strategy, while maintaining focus on further growing its presence in France with new features allowing users to customize their feed on the streaming platform and opportunities to more directly interact with artists, de Place says.
“Profitable growth is what you should expect going forward. We are prepared to continue to deliver positive free cash flow, to reinvest in the company and also add to our reserves,” de Place says.
Recorded music revenue in the United States notched record-high revenues of $17.7 billion in 2024, marking a modest 3% increase from 2023 but capping a ninth straight year of upward mobility for the U.S. business, according to the RIAA. Like a broken record, this growth was once again primarily driven by streaming and the enduring popularity of vinyl.
The music industry’s total revenue gain of 3% in 2024 is a decrease from the 7.7% increase seen in 2023.
Streaming continued to dominate the music industry, accounting for 84% of total revenues for the third consecutive year. Streaming revenue grew by 4% to $14.9 billion, with paid subscriptions the leading contributor, rising 5% to $11.7 billion, which alone made up 79% of all streaming revenues and nearly two-thirds of all recorded music revenue.
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For the first time, the number of paid subscriptions surpassed 100 million, increasing by 3% from the previous year’s tally of 97 million.
However, revenue from limited-tier subscriptions — which include services like Amazon Prime, Pandora Plus, fitness streaming services and other paid subs that don’t offer full, on-demand catalogs — declined by 2% to $1 billion. It’s an improvement over 2023, though, when that drop was 4%.
Reversing last year’s gains, ad-supported streaming experienced a slight decline. Revenue from ad-supported on-demand music services like YouTube and Spotify’s free tier dropped by 2% to $1.8 billion. (Last year it was 2% but in the black.) Digital and customized radio services, including SiriusXM, grew modestly by 3% to reach $1.4 billion. SoundExchange distributions, which handle payments for artists and copyright holders, rose by 5% to $1.1 billion, while other ad-supported streaming revenue fell by 4% to $306 million.
Most physical music formats saw a continued resurgence, with total revenues increasing by 5% to $2 billion. Vinyl was the standout performer yet again, growing by 7% to $1.4 billion, marking its 18th consecutive year of growth. Vinyl albums outsold CDs, with 44 million units sold compared to 33 million CDs. A year prior, those numbers were 43.2 million and 37 million, meaning the gap between the physical cousins is growing. Despite these trends, CD revenue still grew by 1% to $541 million compared to $537.1 million.
Digital downloads continued their downward spiral, decreasing by 18% to $336 million, compared to $434.1 million in 2023. This category now represents only 2% of the total music industry revenue, a significant drop from its 2012 peak when it accounted for 43% of the market. Both individual track and album downloads saw double-digit percentage declines.
The overall percentage breakdown between digital and physical revenue—88% to 12%—has remained consistent since 2018, with only minor fluctuations of 1% in either direction over the years. At the wholesale level, total revenue increased by 2.7%, rising to $11.3 billion from last year’s $11 billion, marking the third consecutive year this metric has surpassed the $10 billion mark.
The organization noted that this marks the first year of direct reporting from independent labels, including sync revenue estimates from indie sources.
RIAA chairman & CEO Mitch Glazier highlighted the “historic milestone” of over 100 million paid subs driving two-thirds of revenues, calling it an “extraordinary achievement by an industry that has successfully focused on its creative and commercial core by championing innovative new services, options, and experiences that add real value for fans.”
Glazier added: “Music has never been more dynamic, compelling, and relevant – reaching out beyond our earbuds with conversation-driving cultural touchstones like unforgettable halftime performances, historic television moments or must-see films and biopics. And American fans and superfans’ dedication to the artists they support promises an even brighter future as record labels work to create new opportunities that boost incomes for artists and diverse revenue streams to grow the pie for everyone with a stake in the music economy.”
RIAA’s Year-End Report By the Numbers:
The U.S. recorded music industry reached an all-time high of $17.7 billion in estimated retail value.
Streaming generated $14.9 billion — making up 84% of total industry revenue.
Paid music subscriptions surpassed 100 million for the first time, contributing $11.7 billion, nearly two-thirds of total revenue.
Vinyl sales increased for the 18th straight year, reaching $1.4 billion, the highest level since 1984.
For the third year in a row, vinyl records (44 million units) outsold CDs (33 million units).