Business
Page: 340
The head of a powerful Japanese talent agency resigned Thursday (Sept. 7) and made an apology punctuated by repeated, lengthy bows, nine days after an internal investigation concluded that its founder had sexually abused hundreds of young performers over decades.
Julie Keiko Fujishima announced she was stepping down as president of Johnny & Associates, the agency founded by her late uncle Johnny Kitagawa, and promised to contribute to a compensation fund from her own fortune.
“This is what my uncle committed, and as a niece, I want to take responsibility,” Fujishima said solemnly. Fujishima said the alleged sex abuse had really happened and that she would stay on the company’s board to see through a victim compensation program.
A group of men who accused Kitagawa of raping them as children said they were pleased the company apologized, but some had reservations.
“The wounds in my heart will not heal,” Yukihiro Oshima told reporters. “But I feel a little better.”
Fujishima remains the sole owner of Johnny’s, and her replacement faces his own allegations of mistreating young performers.
Rumors that Kitagawa had abused children followed his career for decades, but his power allowed him to silence almost all allegations until his death in 2019. The company agreed to investigate earlier this year, after the BBC aired a documentary that spoke with several accusers and others began to come forward by name.
The three-month probe concluded that Johnny Kitagawa sexually assaulted and abused boys as far back as the 1950s and targeted at least several hundred people.
The company named a 56-year-old performer as its new leader. Noriyuki Higashiyama said he was retiring as an actor and singer to take the job, a role that will include overseeing compensation for men who were assaulted as children.
“A horrendous crime has been committed,” Higashiyama told reporters at a Tokyo hotel, bowing deeply with Fujishima.
“It will take time to win back trust, and I am putting my life on the line for this effort.”
Higashiyama immediately fielded questions about allegations that he had engaged in bullying or sexually abusing other Johnny’s boys.
“I don’t remember clearly; maybe it happened, maybe it didn’t,” he said.
He acknowledged he tended to be strict with younger performers, and that he may have done things as a teen or in his 20s that he would not do now. A new company structure, which will include an outside compliance officer, will be announced next month, Fujishima said.
At one point, she choked down tears, stressing the achievements of the company’s singers and dancers. “I only feel deep gratitude to all the fans,” she said. Kitagawa had been so powerful that she, and many others, had kept silent, she added.
The men who have come forward say Kitagawa raped, fondled and abused them while they were working for his company as dancers and singers.
Many of the victims were members of a backup group called Johnny’s Jr., who danced and sang behind bigger stars. One man who came forward recently said he was routinely molested when Kitagawa had yet to found his company. He was just 8 years old.
Higashiyama denied he was a victim. He said Kitagawa had been like a father to him, while denouncing his acts as “the most pathetic in the history of humankind.” When he found out what Kitagawa had done, he felt as though he had lost everything, Higashiyama recalled.
“Whether I am qualified to take on this job, you be the judge,” he said.
Separately, Guinness World Records said it had stripped Kitagawa of all the records he had held, such as No. 1 hits, according to its policy toward “criminals.”
Sam Smith and Normani have prevailed in a copyright lawsuit against their 2019 hit “Dancing With a Stranger” a California judge agreed to dismiss the case Wednesday (Sept. 6). Released in 2019 off Smith’s third studio album Love Goes, “Dancing with a Stranger” is one of their top-charting hits, peaking at No. 7 on the […]
All products and services featured are independently chosen by editors. However, Billboard may receive a commission on orders placed through its retail links, and the retailer may receive certain auditable data for accounting purposes.BEST RETRO SPEAKER
JBL Authentics 500
This portable speaker looks old-school, but both it and its little brothers, the “200” and “300,” are all-new inside, with audio technology like Dolby Atmos. This is the big boy, with three one-inch tweeters, two 2.75-inch mid-range woofers and a 6.5-inch down-firing subwoofer that deliver 270 watts of 3.1 channel sound – in immersive Dolby Atmos if the music warrants it. Like the 300, the 500 has nearly eight hours of battery life and can move from room to room on a single source of sound.
BEST SPEAKER THAT RUNS ON SUN
Urbanista Malibu
The aptly named Urbanista Malibu runs on sun — literally. After introducing over- and in-ear headphones, the company is now launching a Bluetooth speaker that can play until the sun goes down and well after. Its battery can store enough power to work for 30 hours. When the weather turns, it can charge with a USB-C cable — better performance than most similar products — and an IP67 water-resistance rating means it works in the rain.
BEST HOMETOWN HERO
Teufel Ultima 25 Aktiv
IFA has grown so big that some companies now organize their own events, including the Berlin audio company Teufel (which translates to “devil” in German), which shows new products in its headquarters in the center of what was formerly West Berlin. Among this year’s highlights were the Teufel Ultima 25 Aktiv speakers, which will sell for about $500, the powered counterpart to the popular Teufel Ultima 20 bookshelf speaker (a “passive speaker” that gets electricity, along with signal, from a speaker cable). The speakers even have HDMI output and input so video can play on a screen, but audio can “pass through” the TV and go to the speakers.
BEST SMALL SOUNDBAR
Sennheiser Ambeo Mini
Sennheiser AMBEO Soundbar Mini
Courtesy of Sennheiser
After some tough years during the pandemic, the German audio company Sennheiser is coming back with an exciting addition to its soundbar portfolio, the AMBEO Soundbar Mini, which is designed for smaller rooms. Thanks to “7.1.4 virtualization technology,” the device creates a stunning 3D sound in virtually any room,” according to a statement by Sennheiser AMBEO Soundbar Product Manager Maximilian Voigt, “all from a single box.” It supports Dolby Atmos and can be paired with serious subwoofers if you’re ready to rumble. At about $800, it’s not the least expensive soundbar out there — but it could be the best for smaller spaces.
BEST MUSIC MOVEMENT
Sonos Move 2
Sonos Move 2
Courtesy of SONOS
Sonos’ Move speakers were the first that could work with the brand’s systems over Wi-Fi or Bluetooth, and often topped lists of smaller speakers with serious sound. Now Sonos is making the Move 2 available with new colors, more battery life, and stereo functionality. Like Sonos’ Era speakers, they have a USB-C ports that, with the right adapter, can play music from a turntable or CD player — or play music from a phone while recharging it. But the biggest changes are in battery life, which now lasts up to 24 hours instead of 11, and the stereo functionality that comes from packing in two tweeters in each box.
Of all Jimmy Buffett‘s accomplishments, from classic hits such as “Margaritaville” and “Changes In Latitudes, Changes In Attitudes” to building a billion-dollar travel-and-lifestyle empire, one of the biggest was an unprecedented, decades-long amphitheater deal in which he received a whopping 105% of the gross ticket receipts. This anti-mathematical trick stunned the concert business.
“Early in our careers, we would all whisper about Buffett’s rumored deal. Could he possibly be getting not just the lion’s share of the show profits, but all of the box-office gross? Or in some cases more than the box-office gross? What?” asks Fielding Logan, a Q Prime manager who represents country star Eric Church. “Like a mythical white whale, we’ve been chasing that deal ever since.”
How did Buffett, who died Friday at 76, pull off this legendary deal, which several concert-industry sources confirm was in place through his very last amphitheater tours?
In the late 1990s, when SFX Entertainment bought out promoters around the country, the new concert-business giant offered touring stars huge payments to anchor its summer-amphitheater lineup — and avoid losing them to rival companies. Back then, artists were asking — and receiving — 90% of the net ticket sales after expenses, leaving 10% to the promoter.
Buffett took this trend to a new level on his annual summer runs, which drew more than 3.9 million fans and grossed $215.4 million over 196 shows in the 2000s, according to Billboard Boxscore. “Here’s the thing about Jimmy: 90-10 wasn’t good enough for him. He started demanding 105%! All of the gate plus 5% of the gross,” Barry Fey, the late Denver promoter who competed with SFX at the end of his career, wrote in his 2011 book Backstage Past.
Promoters agreed, knowing they could take a cut of ancillary revenues, like parking, food and ticket service charges and — especially with Buffett’s hard-partying Parrotheads — alcohol. “It worked out for me and the other promoters because of beer sales,” Fey wrote.
In 2000, Clear Channel Communications bought SFX, then spun off the concert-promotion business into a new company known as Live Nation — which maintained his deal, sources say. So, for example, in 2005, when Buffett’s show at Arrowhead Pond (now the Honda Center) in Anaheim, Calif., made $1.13 million at the box office, according to Billboard Boxscore, Buffett would have taken home roughly $1.136 million.
Buffett, who toured through spring 2023, set a financial precedent that younger stars, such as country singer Kenny Chesney, were able to replicate, according to sources. “Jimmy was a key artist in establishing and solidifying the amphitheater model,” says Brock Holt, a longtime Nashville promoter who is now a touring consultant, “and opened the doors for a higher financial return for artists.”
“He was the only one who had the leverage to do it. He toured perennially and did the same amount of business each time. The Parrotheads came out. It was a yearly ritual,” says Randy Phillips, former CEO of promoter AEG Live, and now a consultant for Silver Lake, an investment group whose portfolio includes Madison Square Garden Sports and Endeavor. “He was the anchor to Live Nation’s schedule so it was really critical. He used that to negotiate.”
Buffett’s longtime touring reps, including Live Nation, attorney Joel Katz and agent Howard Rose, did not respond to requests for comment.
The U.S. Copyright Office issued a ruling on Tuesday (Sept. 5), confirming that songwriters and publishers are owed late fees when streaming services do not pay royalties to the Mechanical Licensing Collective (The MLC) on time. This, however, does not apply to the major adjustments in royalty payments currently underway following the re-setting of Phonorecords III rates (2018-2022), according to the office.
Late fees have been an ongoing debate between the music publishing industry and streaming services dating back to the passage of the Music Modernization Act (the MMA) in 2018. That landmark law switched how streaming services licensed music, from a song-by-song piecemeal system — which many considered ineffective and cumbersome — to a blanket licensing regime instead.
The law took effect starting Jan. 1, 2021, requiring digital music providers like Spotify and Apple Music to go to the newly created MLC to obtain a blanket mechanical license to reproduce music on these platforms. As part of the new system, streamers had to pay out royalties owed to the MLC, which then pays the writers and publishers, each month. More specifically, the law stipulates mechanicals are due “45 calendar days after the end of the monthly reporting period.”
After that, any lagging payment is considered late and subject to additional penalties, according to the MMA. For the current period of Phonorecords IV (2023-2027), the Copyright Royalty Board judges say that a streaming service must pay a late fee of 1.5% per month, or the highest lawful rate, whichever of those two is lower, for any payment owed to the music’s copyright owners that hadn’t been paid on time. The late fees accrue from the due date until the copyright owner receives payment.
The main source of debate around late fees is whether they should apply in the case of a monthly payment that needs adjustment after it is paid out. Streaming services have argued that “‘[i]f a service is following the regulations by making a reasonable estimate of an input it does not know the value of, it should not be penalized with a late fee even if it so happens that the estimate is too low.”
On the other side, the MLC has argued that allowing such exceptions would incentivize the streaming services to intentionally draw up payment estimates that undervalue what is owed to songwriters and publishers.
The Tuesday ruling by the Copyright Office settles the debate: “The Office concludes that the statute’s due date provisions are unambiguous. The statute’s reference to ‘due date for payment’ clearly refers to the date on which monthly royalty payments are required to be delivered to the MLC, i.e., no later than forty-five days after the end of the monthly reporting period.”
“This is a major victory for music creators who have waited far too long to be made whole from the appeal which significantly delayed their compensation,” says NMPA President and CEO David Israelite. “The USCO’s decision reiterates our assertion that the due dates are unambiguous and any past-due payments to the MLC must come with appropriate statutory penalties.”
Tucked into the side of Southern California’s new SoFi Stadium is a Palm Springs-inspired hideaway dreamt up by actor David Arquette and nightlife company The h.wood Group. The field level suite – called Bootsy Bellows at SoFi Stadium – is a truncated version of the West Hollywood bar by the same name (Arquette’s mother’s name) and more stylish than most sporting spaces. Decked out in velvet furniture, breezeblocks and gold-trimming, the suite is an elevated experience for NFL fans watching home teams LA Rams and Chargers, but the operators are stepping up their game for major concerts.
“No one’s really experienced something like that with the decor and everything, so it’s been very special,” The h.wood Group co-founder John Terzian tells Billboard about the reception to the suite. “If you can make people feel warm in a stadium setting, feel like they’re kind of in a living room, you’ve done a pretty good job.”
This summer alone, SoFi Stadium has hosted Twice, Morgan Wallen and Metallica, in addition to six nights of Taylor Swift’s Eras Tour and Beyoncé’s Renaissance World Tour that just wrapped up a star-studded three nights. The h.wood Group has taken the growing demand for stadium concerts and not only expanded their presence at SoFi, but also made improvements over the past three years.
Timothy Norris
“The first season, you could only order like a burger, chicken tenders and fries – standard stadium food. People were paying $10,000 for a table to come to a game, they don’t really just want to eat chicken tenders,” explains The h.wood Group co-founder Brian Toll. Going forward the stadium agreed to allow Bootsy Bellows to take advanced orders to deliver additional offerings like sushi platters and Tomahawk steaks.
The h.wood Group also expanded their seating options for concerts. Instead of being limited to their large suite, Bootsy Bellows has been able to take over more space along the sidelines. For concerts, Terzian says, they can run an entire sideline of suites and, depending on the show, add seats on the field for Bootsy Bellows designed pods. “We’ve extended [the space] so that you have this incredible experience where you have your own little section with a couch and a high top [tables] essentially on the field itself,” he says. “That was a massive thing that we did from last year to this year. It’s all about viewing experiences and things that we keep improving.”
Wonho Lee
The ultimate appeal of the Bootsy suites, according to Terzian, is the level of accommodation. In a stadium that can hold up to 100,000 fans, The h.wood Group tries to simplify an overwhelming experience with an exclusive entrance, dedicated staff to get patrons to the suite and private bathrooms, as well as in suite bars and servers. The difference “has been our attention to handling any sort of talent that comes in,” says Terzian. “The whole idea is when you’re in there, you have your own bar, there’s a DJ going, there aren’t people asking for pictures. You have fun whether it’s with family or friends. It’s supposed to be a safe space.”
Organizers behind the Electric Zoo festival on Randalls Island in New York canceled the Friday (Sept. 1) opening day because Department of Parks & Recreation officials would not issue the permits needed to stage the city’s largest EDM festival, promoters behind the event have confirmed with Billboard.
On Friday, when event organizers with Brooklyn venue company and concert promoter Avant Gardner canceled the festival’s first day, they blamed “global supply chain disruptions” in a statement, saying, “These unexpected delays have prevented us from completing the construction of the main stage in time for Day 1.” Organizers did not provide further specifics. A rep for the festival told Billboard on Tuesday (Sept. 5) that the application for the permits had been made well in advance, adding that the permit issue was resolved when the festival finally opened on Saturday.
Touring industry sources, however, say it was due to organizers’ failure to pay vendors from last year’s festival that led to a shortage of experienced concert professionals willing to work at this year’s event. Specifically, the main festival stage caused the most issues early Friday during an inspection of the site hours before the event was scheduled to open. City officials demanded the festival staff fix several safety and security issues before the festival could open. It took organizers more than 24 hours to fix the issues, leading to the festival opening two hours late on Saturday.
The problems did not stop there, though. Making matters worse, many fans did not receive their festival wristbands and tickets in the mail as promised, forcing attendees to queue up for hours to retrieve their tickets. And then on Sunday, organizers were forced to shut down access to the festival after the site reached maximum capacity. Some fans who reached the festival site after the gates were closed decided to jump fences or run through security checkpoints as a group, joining other ticket-holding fans in mad dashes past security staff. Hoping to deter fans from boarding ferries to Randalls Island, festival organizers announced on X (formerly Twitter) that the event had reached maximum capacity for “unknown reasons” and promised “everyone denied entry today will be issued a refund.”
The problems experienced at Electric Zoo mirror ongoing issues at the Avante Gardner venue. Created by owner and creative director Jürgen “Billy” Bildstein in 2017, Avante Gardner is known as a favorite for fans and acts because of its size and flexible space. To state regulators however, the 6,000-capacity venue has been the subject of ongoing legal disputes and investigations by agencies like the New York State Liquor Authority over overcrowding and drug use since 2016, according to court records. On Aug. 22, liquor authority chair and commissioner Lily Fan testified that Avant Gardner “couldn’t care less what people do in their establishment so long as they made money.”
The price tag for this year’s chaotic festival — including refund costs to fans who didn’t make it in, as well as paying Friday night performers The Chainsmokers, Excision and Kx5 their full fees — could total $25 million, according to former insiders at SFX Entertainment, which owned the festival from 2013 to 2022.
Electric Zoo was originally launched in 2009 by founders Mike Bindra and Laura De Palma and grew to be the East Coast’s biggest electronic festival, always taking place over Labor Day weekend. In June 2022, Bildstein led the purchase of Electric Zoo from LiveStyle, a holding company created in the aftermath of SFX Entertainment’s bankruptcy in 2015. Bildstein agreed to pay $15 million for the festival property, Billboard reported at the time, paying about half the money in cash and while agreeing to a convertible debt note to cover the unpaid portion of the purchase.
Avant Gardner staged the 2022 festival and racked up debt with a number of talent agencies and vendors, sources tell Billboard, leading to delays building out the festival site in 2023 that were partially to blame for the permit delays.
New York City Mayor Eric Adams suggested the city will launch an investigation into Electric Zoo’s organizers for going beyond the festival’s approved capacity. The New York Police Department estimated event organizers oversold the festival’s 42,500-person capacity limit by 7,000 tickets on Sunday.
“It’s unfortunate that the organizers wanted to turn our city into a zoo, and we were not going to allow that to happen,” Adams said during an NYPD briefing on Tuesday. “And we will be dealing with them in the next few days based on their behavior and actions.”
Deezer plans to implement a new streaming model with Universal Music Group later this year — a step that Deezer CEO Jeronimo Folgueira called “the most ambitious change to the economic model since the creation of music streaming and a change that will support the creation of high-quality content in the years to come.”
In an announcement on Wednesday (September 6), Deezer said it would roll out this “artist-centric” system in the French market starting in the fourth quarter of 2023. The new model aims to reward artists and songs that are driving listener engagement while also de-prioritizing white noise and other “functional” audio. “The sound of rain or a washing machine is not as valuable as a song from your favorite artist streamed in HiFi,” Folgueira declared.
As part of the new model, plays racked up by “professional artists” — which Deezer defines as acts with more than 1,000 streams per month spread across 500 unique listeners — with a “double boost.” (The announcement did not define what that “double boost” entails.) Similarly, songs that are driving listener engagement — the metrics for measuring this were also undefined — will receive the same bump.
In addition, Deezer plans to replace “non-artist noise content” — the sounds of whales or washing machines — with its own functional music, while also excluding this audio from the royalty pool so that payouts to raindrop recordings don’t come at the expense of payouts to singer-songwriters. “We are now embracing a necessary change, to better reflect the value of each piece of content and eliminate all wrong incentives,” Folgueira said in a statement. “There is no other industry where all content is valued the same.”
“With this multi-faceted approach, music by artists that attracts and engages fans will receive weighting that better recognizes its value, and the fraud and gaming, which serves only to deprive artists their due compensation, will be aggressively addressed,” added Michael Nash, UMG’s evp and chief digital officer. He also noted that the model may change in the future: “As the ever-evolving music landscape continues its rapid transformation, UMG and Deezer will rigorously address the impact of these changes as we incorporate new insights from data analysis and fine-tune the model, as appropriate.”
UMG’s quest for a new streaming ecosystem has been a major talking point for the company since January. That month, in a letter to staff, UMG chairman/CEO Lucian Grainge called for the development of “a model that will be a win for artists, fans, and labels alike, and, at the same time, also enhances the value proposition of the [streaming] platforms themselves, accelerating subscriber growth, and better monetizing fandom.”
Since then, UMG announced partnerships with both Tidal and Deezer to try to determine what that model might look like. Streamers can do “a better job of monetizing these high integrity, high intense artist-fan relationships,” Nash told financial analysts in March. “We’ve been speaking with platforms… about the enhancement of offers to the consumer that reflect the engagement with artists that are really driving the economic models of the platform.”
Spotify CEO Daniel Ek, however, appeared less enthusiastic about implementing a major change to the streaming model during an earnings call in July. “Most studies we’ve done on this [show] that even if you change it to a user-centric or an artist-centric approach, it seldom leads to these gigantic differences that most people perceive it to do,” he said.
“But we’re always open to hearing how we can make the system [fairer] to more artists,” he added.
Apple Music is doubling down on classical music with the acquisition of Swedish label BIS Records.
Following the launch earlier this year of its standalone app Apple Music Classical (AMC), the tech giant makes its move for BIS, a classical specialist which has operated since 1973.
The acquisition ticks several boxes for both parties.
For BIS, the timing, and its new teammates, were right. “A few days ago BIS Records turned 50 years old and I am immensely proud of what our small team of people has accomplished during this half-century,” writes BIS founder Robert von Bahr in a blog post.
Its strong suit, “while paying our dues to the core repertoire,” he continues, “has been to nurture young classical artists and interesting living composers and to safeguard the musical treasure that we all represent long into the future. It is to that end that, after much careful consideration, and having just turned 80, I am excited to announce the rather momentous news that we have made the decision to become part of the Apple family.”
For Apple, the hardware colossus with a market cap that’s fast approaching $3 trillion, its latest purchase is a statement of intent. Classical music is hot right now, the newest member of its family comes bearing the goods, with a catalog of contemporary composers and early music. And Apple wants ownership.
Apple made its splash in the classical water with the March launch of AMC, stemming from its August 2021 acquisition of Primephonic.
The new app, Apple boldly declared at the time, was the “ultimate classical experience” with the “largest classical music catalog,” boasting over 5 million tracks and works from new releases to recognized masterpieces.
The game is changing, fast. Last November, Deutsche Grammophon launched a new standalone streaming service, Stage+, catering to its own catalog and that of Decca Classics. And, recently, Universal Music Group bought Hyperion Records, and announced its asset would finally enter into the streaming age.
Following the latest transaction, BIS will become part of Apple Music Classical and its artist services service Platoon. Financial terms of the arrangement were not disclosed. At the time of writing, BIS Recordings were available on Apple’s DSPs and eClassical.
Von Bahr and his staff won’t be going anywhere. “As proud as I am of this milestone,” he writes, “I am even more proud of the fact that the entire personnel of BIS, including me, have been retained. We all look forward to a future, filled with new music and artists in golden sound from this increased force in classical music.”
Read more here.
Elliot Goldman, the veteran record executive who co-founded Arista Records, led BMG Music as president and CEO, and served in senior roles with Warner and CBS Records across a decorated career in music, has died at the age of 88.
Goldman joined CBS Records in the 1960s, rising to administrative vice president. Later, with Clive Davis, he established Arista Records, serving as executive VP and general manager at the very inception of the storied label.
“Clive and I formed Arista Records in 1973,” he recounted in an interview with Billboard published in 2015. “One of our first releases was from a gentleman you’ve probably heard of: Barry Manilow.”
Later, Goldman took on duties as senior VP at Warner Communications, and, in 1985, was named president and chief executive of RCA/Ariola International. When BMG parent Bertelsmann acquired RCA outright from the General Electric Company, the German media giant restructured the asset into three operating units; BMG Music, BMG Music International and Arista, all part of BMG. Goldman would guide BMG Music as president and CEO, departing in 1987.
”Elliot expertly managed RCA/ Ariola through very difficult corporate transitions and company restructuring,” Michael Dornemann, co-chairman of the Bertelsmann Music Group, remarked on his departure, The New York Times reported.
A graduate of Cornell, where he majored in political science, and of Columbia Law School, Goldman served on the board of directors of the RIAA, and on the board of directors and executive committee of the Rock And Roll Hall of Fame Foundation at its inception.
During his lifetime, he also served on the executive council of the T.J. Martell Foundation; was co-chairman of the Home Entertainment Division of UJA/Federation; founding member and president emeritus of the Music for Youth foundation; and a recipient of the AMC Cancer Research Center’s Humanitarian of the Year Award.
Goldman leveraged his considerable major label experience into consultancy work with a string independent and major record company clients throughout the 1990s.
Before entering the music industry, Goldman enjoyed various roles in government, including the position as head of the New York office for the 1964 election campaign of Senator Robert F. Kennedy.
Arista and J Records founder Clive Davis leads tributes to the late executive.
“Elliot Goldman played a substantial role in the history of Arista Records and strongly contributed to its success,” comments Davis in a statement. “He was also a great family man and Jill, Ben and the Goldman children have my deepest sympathy for this irreplaceable loss.”
He is survived by his wife of 56 years, Jill, his son Ben (Allysa Lawson Goldman), daughters Elizabeth and Cathy and his four grandchildren, Justin Goldman, Dylan Goldman, Sophie Gibbons and Olivia Gibbons.Ben and Justin have both carved out successful careers in music.