Business
Page: 341
BMI is exploring potential sale possibilities, a year after its transition into a for-profit entity, according to an internal memo from CEO Mike O’Neill that was obtained by Billboard. In the note to staff, O’Neill said, “Delivering for our affiliates is always our top priority, and we have a responsibility to engage in discussions with outside parties if they can help further that mission. That is exactly what we are doing right now, and no final decisions have been made.”
The discussions come a year after BMI had engaged Goldman Sachs to explore strategic opportunities in 2022, with one of the options at the time being a potential sale; that process ultimately did not lead to a deal. Reuters first reported that talks had reopened over a potential sale now. A spokesperson for BMI declined to comment.
In the memo, O’Neill wrote that after ending the strategic opportunities process last year, BMI chose to invest in the company “to grow the value of our affiliates’ music,” and that the change to the for-profit model, in addition to that investment, “has only intensified that outside interest.”
“It’s an exciting time for BMI and we’re in a strong position,” O’Neill wrote. “And the most important thing for us to do is keep focus and continue the great work that makes BMI the best PRO in the business. The future is filled with potential and there is no better team to tackle the numerous opportunities that lie ahead for our company and our affiliates.”
BMI, founded in 1939, represents more than 20 million works by more than 1 million songwriters, composers and publishers, including artists like Taylor Swift, Rihanna and Kendrick Lamar. In its most recent annual report, for the year ended June 30, 2022, the performance rights organization tallied revenues of $1.573 billion and distributed $1.471 billion to songwriters, its highest mark ever.
Read O’Neill’s full note below.
Hi Team,
A few press articles have come out today speculating that BMI is considering a sale. I am reaching out now because I want you to hear the background directly from me.
Not surprisingly, interest in BMI has continued since we announced a year ago that we were no longer considering a sale of our company. You may recall this was one of the options on the table when we were evaluating strategic opportunities to best position BMI for the future. Since then, the success of our business model change and our commitment to investing in BMI to grow the value of our affiliates’ music has only intensified that outside interest.
Delivering for our affiliates is always our top priority, and we have a responsibility to engage in discussions with outside parties if they can help further that mission. That is exactly what we are doing right now, and no final decisions have been made. By its very nature, speculation can often contain mischaracterizations and inaccurate information. Please don’t be distracted by this and know that I will update you directly on any new developments.
It’s an exciting time for BMI and we’re in a strong position. And the most important thing for us to do is keep focus and continue the great work that makes BMI the best PRO in the business. The future is filled with potential and there is no better team to tackle the numerous opportunities that lie ahead for our company and our affiliates.
Thank you, as always, for all you do.
MON
Imagine Dragons, one of the most successful rock bands of the past decade, has signed a global administration deal with Warner Chappell Music (WCM). “Songwriting has always been at the heart of everything we do as a band,” Imagine Dragons frontman Dan Reynolds said in a statement. “We’re excited to have great partners with our […]
With film and television production shut down for the foreseeable future, the Hollywood writer and actor strikes are ravaging all the businesses that touch the movie industry, from catering to editing to flower delivery — including music synchs. After generating $382 million for record labels and nearly $1.5 billion for publishers in 2022, the sector is beginning to struggle as the strikes proceed.
“That’s been quite a dark thing,” says Stephanie Diaz Matos, head of music supervision for writer-actress Issa Rae’s Raedio, a music company that includes a publisher and label. “We have several shows that, once the actors went on strike, they stopped production.”
Adds a music publishing source: “It could be bumpy if this goes on for a really long time.”
Since the Writers Guild of America strike began in early May — and the Screen Actors Guild joined earlier this month — labels and publishers report receiving fewer requests for pitching songs. “The amount of film and TV briefs I get have gone way down,” says Mara Kuge, founder and president of Superior Music Publishing. “Briefs for trailers [some of the most highly paid placements] have also been in more mild decline as well,” adds Jack Ormandy, co-founder and CEO of SILO: Music, a publishing, management and synch house.
The Writers Guild of America, East and West, represent 11,500 movie and TV writers and have been unable to agree on a new contract with Hollywood studios and streaming services over issues like higher compensation in the streaming economy, protection from the effects of artificial intelligence, more contributions to health and pension funds and improvements in workplace standards. Thousands of actors in the SAG-AFTRA union joined the writers’ picket line July 14 after negotiations broke down with studios over a new contract of their own.
While there’s hope the strikes could be resolved by the fall, some sources fear they could drag on into 2024, frequently citing a chilling quote from an unnamed studio executive in a recent Deadline article: “The endgame is to allow things to drag on until union members start losing their apartments and losing their houses.”
“I don’t know what that’s going to look like in three months or six months. I’m hopeful this will come to a resolution and [the striking actors and writers] get the benefits they hope for,” says Esther Friedman, senior vp of creative film and television licensing for Sony Music Publishing. “We felt it in the late-night TV shows. Those stopped right away.”
Synch revenue is a major, and growing, source of income in the music business. According to the RIAA, synchronization licensing — the right required to use music along with visual media — increased by 24.8% in 2022, and the synch business made up 26% of all publishing royalties, says the NMPA. Placements in studio film and TV projects can earn artists up to six figures, and prominent synchs can lead to even greater financial ripple effects after a show’s release. Perhaps the greatest recent example is Kate Bush’s “Running Up That Hill (A Deal With God),” which catapulted to No. 3 on the Billboard Hot 100 after an appearance in Netflix’s Stranger Things repopularized the original 1985 single.
The strikes have shocked the multimillion-dollar synch system of movie and TV music supervisors sending briefs to music publishers and labels. “Usually, if we are not getting a ton of briefs, or it’s a slower time, we’re wining-and-dining clients, checking in,” says Jessica Vaughn, head of sync for Venice. “But it’s hard to justify going to music supervisors right now and being, like, ‘Hey, how are you doing, looking for any music?’ Because some supervisors might be out of work or about to finish up one project and not sure what they’re doing next.”
For labels and publishers, the key to surviving the Hollywood strikes may be diversification — many are looking to advertisements, reality and unscripted TV shows, documentaries and overseas films to bolster synch revenue. Also: video games. According to MIDiA Research’s 2022 study on music and gaming, the gaming industry earned $138 billion in 2020, and games make up a sizable portion of the synch business. After the Hollywood strikes, Ormandy hired a new employee at his company to focus specifically on video-game licensing. Adds Vaughn: “I see this as an opportunity right now to focus in on gaming. Some people overlook gaming, but it really is huge.”
For now, labels and publishers are focusing on shows and films made before the strikes that are in post-production, and will still contribute to the synch business in the short term. But it’s tricky. “You sometimes can’t finish episodes without your writers or actors because things like voiceovers need to be added in,” Diaz Matos says.
Plus, if the strikes drag on, actors won’t be available for crucial film and TV promotion. Because of this problem, some studios are beginning to push back release dates, including the Luca Guadagnino film Challengers, starring Zendaya, which has moved from its Sept. 15 release to April 26, 2024. Because synch payments are made around three to six months after the date of a film’s release, these delays will be a pain point for music licensors, even if the placement was completed before the actors’ strike. “Down the line is where you start to feel it — three to six months out,” says the publishing source.
Superior Music Publishing’s Kuge adds that synch revenue is known to vary widely quarter by quarter. “It’s very up and down regardless,” she says. “People who deal with the world of synch are so used to it that they’re not going to feel the effects too much unless the strikes drag on for two or three quarters straight — that’s the point when it starts getting past the normal ups and downs.”
If this kind of diversification helps synch departments withstand losses from the strikes, music supervisors — those who compile soundtracks for film and TV and act as the go-between for productions and licensors — are not able to wait as long. Most supervisors are freelance contractors, working on a project-by-project basis. Sources say a number of notable music supervision firms have laid off staff members, citing the lack of projects in the pipeline.
“I actually furloughed my coordinator yesterday. I have one project I think is going to get a waiver [granted by the unions to certain independent films] — once that goes back, I think I can get her back,” says Lindsay Wolfington, a veteran music supervisor for streaming shows such as Virgin River, Monster High and the upcoming movie Love at First Sight. “We’ve all had to figure out healthcare on our own. The bank account’s not fun to look at.”
Music supervisors are not unionized, but the roughly 150-200 of them who work at Netflix are awaiting a National Labor Relations Board decision on a union-certification motion they filed last October. They’re seeking representation with the International Alliance of Theatrical Stage Employees, and their demands overlap with those of the striking writers and actors: more reliable payment deliveries, cost-of-living increases and healthcare and retirement and pension plans. “The rates haven’t changed in years, and it’s the same with writers and actors,” Wolfington says.
Julie Glaze Houlihan, another veteran music supervisor who has worked on Glass Onion: A Knives Out Mystery and other hit shows and movies, predicts the strikes will cause pain for the music business. “Clearance is going to slow down, record labels and publishers are going to lose revenue because music isn’t being licensed. It is a domino effect,” she says. “Nobody wants this to go on.” But SILO: Music’s Ormandy is more optimistic. “Though COVID was completely different for many reasons, it was also a time when the film industry just stopped, too,” he says. “What I’m banking on is that we know how to weather a similar storm.”
Simon Napier-Bell, the celebrated author, filmmaker and artist manager, who guided the careers of Rock Hall inductee George Michael and Wham and introduced the duo to Chinese audiences for a historic 10-day visit in the mid-’80s, becoming the first Western pop act to do so, joins the lineup of speakers for Bigsound 2023.
The British allrounder’s addition to the daytime Bigsound program is a timely one, coming fresh off the release of the popular Netflix documentary Wham, in which he appears.
It was Napier-Bell who masterminded Michael and Andrew Ridgeley’s trip to China in 1985, a trailblazing moment that was captured for the documentary Wham! in China: Foreign Skies.
Across his colorful career, Napier-Bell, owner and CEO of music firm Pierbel Entertainment Group, has managed the likes of the Yardbirds, Jeff Beck, Jimmy Page, Ultravox, T Rex, Marc Bolan, Japan, Asia, Candi Staton, Boney M and Sinéad O’Connor, and written four best-selling books, including 2001’s Black Vinyl White Powder.
International speakers at this year’s music industry summit include English composer Simon Franglen, Cockenflap Festival promoter Cora Chan, ATC Live’s Caitlin Ballard, FKP Scopio’s Silke Westera, president of FUGA / Downtown Christiaan Kröner, Patrick Daniel from Reeperbahn, and more.
Organized by trade body QMusic, Bigsound will boast more than 100 speakers, from international and national buyers, agents, music supervisors, bookers and “industry decision makers,” plus upwards of 140 showcasing acts from around the world.
“Whether it’s helping formalize a global partnership or simply putting acts in a room where they could discover a piece of advice that could transform their career,” comments QMusic chair Natalie Strijland, “Bigsound is 100% dedicated to creating an environment for artist change, and providing the best people to help make those changes happen.”
Previously announced speakers include Omar Grant, co-president of Jay-Z’s Roc Nation and former road manager for Destiny’s Child; Michele Ronzon, A&R coordinator for Interscope / Geffen / A&M Records; Hazel Savage, the Australia-born London-based spearhead for AI business Musiio and now VP of music intelligence at Soundcloud; and others.
This year’s edition will be held Sept. 5 – 8 in Brisbane’s Fortitude Valley.
Earlier in the year, the Palaszczuk state government announced funding for Bigsound to the tune of nearly A$4 million over four years, a boost that comes the Queensland capital gears-up for the 2032 Olympic Games.
Bigsound 2023 is presented by Brick Lane Brewing and independent ticketer Oztix, and supported by national youth broadcaster triple j.
Visit bigsound.org.au for more.
GEMA, the German collective management organization (CMO), announced Monday (July 24) that it has acquired a majority stake in the SoundAware Group, a Dutch company that provides music recognition services to collecting societies (including those in the Netherlands and Belgium) as well as market research and media companies. SoundAware will continue to operate independently from […]
DJ John Summit publicly apologized Tuesday (July 25) for “all the drama” that he “stirred up” last week in a legal dispute with a smaller company over the name of his Off the Grid record label, vowing to change his company’s name to resolve the disagreement.
Early last week, Summit took to Twitter to blast the organizers of a rival “Off the Grid” music event, claiming they had “sued” him and were demanding “7+ figures” over their identical names. Summit, an electronic music A-lister who’s worked with Kaskade, Diplo and others, said at the time that it “f—ing sucks when ppl want to screw u over.”
But after deleting those tweets and going silent over the weekend, Summit made an about-face on Tuesday. In a new tweet, he said he had “acted out of emotion” in last week’s rant and wanted to “truly apologize” to the rival Off The Grid group.
“I’ve been talking w the OTG campout team and apologized to them directly but i also wanted to do so publicly,” Summit wrote. “They’ve agreed to stop pursuing legal action & my team and i are working on a rebrand. in the meantime, to all my fans, please stop sending negative messages to OTG campout. i was wrong in condoning that behavior in any way.”
Summit announced the launch of Off The Grid in March 2022, tweeting that he was “so stoked” to announce his own imprint where there would be “nothing off limits.” The label has since released music by artists including Mau P, Danny Avila and Summit himself, and has hosted live events, including a camping event in Tennessee this past April.
Just one problem: A music promoter named Mikey Made Cromie had already been using the name Off The Grid since 2015 for his own dance music events, including a flagship three-day “campout” that draws as many as 1,000 fans.
In June, attorneys for Cromie sent a cease and desist letter to Summit over the name of his new label. They warned that Cromie claimed Off The Grid as an exclusive trademark and that Summit’s use of an identical name for a company that sells the exact same genre of music would clearly infringe it.
It was that letter that prompted Summit’s outburst on social media last week. “Getting sued for trademark over my ‘off the grid’ label name by a small promoter even tho it’s a common phrase and i built up this brand 100% myself,” Summit wrote at the time. “i REFUSE to get threatened for 7+ figures over a LABEL NAME.”
Cromie, meanwhile, denied that a lawsuit had been filed and said he had never made a demand for seven figures, but confirmed that he had sent the cease and desist letter and wanted Summit to stop using the name. In an email to Billboard last week, Cromie said that Summit’s team “knew about us the whole time and thought we were so small of a company that they could use the name without any recourse.”
In Tuesday’s new tweet, Summit suggested that some kind of formal settlement had been reached, saying he would be changing his name and Cromie’s company would stop pursuing any legal action. But he offered no additional details, like when the name would be changed or whether any money had changed hands.
“All we want now is for both our communities to come together and be able to dance as one,” Summit wrote in his tweet. “i def learned my lesson from this and from here on out, i’m going to focus my attention in a positive light so we can get back to releasing music and throwing fun parties.”
Cromie did not immediately respond to a request for comment from Billboard on Tuesday. But he seemed to confirm the settlement on his Facebook page: Above a giant image of a peace sign, he wrote simply: “Peace is always the answer!”
Organizers of the Good Vibes Festival in Kuala Lumpur, Malaysia, tell Billboard that the controversy surrounding The 1975’s performance at the festival, during which lead singer Matty Healy insulted the government and kissed a bandmate on stage, has left the festival in financial ruin and could limit future concerts in the country for years to come.
The claim is the latest in the fallout from Healy’s protest and the heavy-handed decision by the country’s communications and digital ministry to cancel the remainder of the festival while also banning Healy from playing in the country in the future. Malaysia places very restrictive rules on foreign artists performing in the country, and Healy’s manager “had acknowledged in writing that Matt Healy would adhere to all local guidelines and regulations” prior to his performance Friday, says Wan Alman, whose company, Future Sound Asia, has promoted the festival for more than 10 years. Alman adds that “artists are briefed on the guidelines before the event.”
Alman confirmed that Future Sound Asia is considering pursuing legal action against the band, as the cancellation led to heavy losses for the promoter. The company likely already paid out artist deposits for the entire festival and might soon be required to issue refunds to fans, depending on an outcome of an investigation by the Malaysian government. Festival organizers might be able to make a legal claim against the band, explained Tim Epstein, a leading attorney for independent festivals in North America, depending on the language of the contract between the band and the promoter.
Specifically, Epstein said he would look to see how the contract deals with potential instances of unlawful behavior and what, if any, language dealt with local guidelines and regulations around speech. He said he would also want to confirm where the talent agreement designated that legal disputes be heard; most contracts defer disputes to U.S. courts. Finally, Epstein said the festival’s event cancellation policy could offset any damages, depending on the language in the policy. While government intervention is typically covered under a policy’s “force majeure” language, the Good Vibes Festival’s specific policy might include other provisions that make collecting difficult.
The 1975 incident has cast a negative light on Malaysia — and documents obtained by Billboard show that foreign artists playing in the country must agree to guidelines that include a ban on men wearing shorts on stage, prohibitions on women “wearing clothes that expose the chest area or that are too high above the knees” and strict rules prohibiting “entertaining or mingling with the audience at any time.”
In order to invite foreign artists into the country, promoters must complete the Communication and Digital Ministry’s Application for Filming and Performance by Foreign Artistes — a 40-page document outlining how artists are allowed to dress on stage and what they aren’t allowed to say about the government.
According to Amnesty International, in Malaysia it is illegal to protest the government, dress in drag or possess films or movies deemed to have LGBTQ+ elements. Much of the country’s criminal code is enforced through imprisonment with access to a court hearing, public flogging and, up until last year, the death penalty, which is currently banned under moratorium.
Neither The 1975’s agent, Matt Baum with Primary Talent — which represents the band in Asia — nor its manager, Jamie Osborne, would comment for this article.
An agent familiar with international bookings who did not want to speak on the record tells Billboard that the number of countries run by repressive regimes that host concerts is still relatively small, and it’s typically the promoter’s job to explain the rules to the band booked for a show.
That can be a double-edged sword, the agent explains, noting that the festival promoter “also may not want to be overly open about it for fear of discouraging people from playing.”
In many cases, the promoter does their best to balance the artist’s own right to expression while also being careful not to anger the host government.
“The 1975 shouldn’t have played there if they feel so strongly but I understand how they got to where they are,” the agent said.
Since opening the country to concerts by foreign artists in 2000, the Malaysian government has required visitors to adhere to a fairly restrictive code of conduct. Among other things, it requires modest attire and a ban on “provocative acts” like kissing a member of the opposite sex in front of a live audience.
The rules were updated in March by Malaysia’s communications and digital minister, Fahmi Fadzil, to include bans on cross-dressing on stage and “criticizing any government agency charged with upholding the law.”
Also banned under the guidelines are women’s clothes with “high slits, and clothes that are too tight or figure-hugging,” as well as a general ban on “performing in a wild manner, provocatively and displaying actions that are contrary to the performance code of ethics.” Other no-nos include “performing actions or making utterances that may be deemed as seditious” and “entertaining or mingling with the audience at any time.”
While some LGBTQ+ activists accused Healy of cynically protesting homophobia in the country for attention, others said it’s the government’s heavy-handed decision to cancel the festival over a same-sex kiss that deserves condemnation.
The controversy over LGBTQ+ rights and freedom of expression in Malaysia won’t likely go away any time soon. Coldplay is set to perform at the country’s Bukit Jalil National Stadium in November for a show promoted by Live Nation, which is also expected to produce a concert for the group Lany in the country in August.
Video game giant Activision is suing a prominent TikTok music critic over a viral audio clip that he created, claiming he is unfairly demanding that some social media users pay him “extortionate” settlements after they re-use the heavily-memed clip.
Explore
Explore
See latest videos, charts and news
See latest videos, charts and news
In a complaint filed Monday in California federal court, Activision accused Anthony Fantano of “misusing” intellectual property laws by threatening to “selectively” sue TikTokers who use “enough slices!” — a popular audio clip that originated with a video Fantano first posted in 2021.
Activision, which says it received such a threat after it used the clip in a promotion for its Crash Bandicoot game franchise, claims that Fantano intentionally made the clip available through TikTok’s audio library — meaning he cannot now sue the hundreds of thousands of users that chose to use it.
“This dispute is a textbook example of how intellectual property law can be misused by individuals to leverage unfair cash payments,” Activision’s lawyers wrote. “Fantano was very happy to receive the benefit of the public use of the Slices Video. It was only after he identified a financial opportunity — namely, receiving unjustified settlement payments — that he suddenly decided that his consent was limited.”
“The law does not permit, and the court should not countenance, such overt gamesmanship,” Activision’s lawyers wrote.
Fantano, a popular internet creator who reviews music on TikTok, YouTube, Instagram and other platforms, first uploaded the “slices” video in 2021. The clip — showing Fantano getting aggravated as a pizza is cut into increasingly smaller slices before screaming, “It’s enough slices!” — has garnered tens of millions of views. In the two years since, the audio has become internet shorthand for a situation that starts out well but eventually goes too far.
In its lawsuit, Activision says there’s an obvious reason why the clip was used so widely: Fantano “deliberately and knowingly” added the audio to TikTok’s library, making it easily available for millions of other users to incorporate into their own videos. They say he even opted into the “Commercial Sounds” library, which means he agreed his clip could be legally used in promotional videos for brands.
The company says it was surprised, then, when it received a legal threat from Fantano after it used “enough slices” in a TikTok video depicting the creation of custom Crash Bandicoot sneakers. He allegedly told the gaming giant the use of the clip not only used his name-and-likeness rights without permission, but also violated federal trademark laws by suggesting he had endorsed the company’s games.
Activision says it agreed to pull the clip down, but that Fantano demanded the company “eitherimmediately pay him substantial monetary damages or be prepared to defend a lawsuit.” The exact amount of money demanded was not included in the lawsuit, but Activision says Fantano asked for a “six-figure sum” and said that other companies had “paid a similar sum in order to avoid the expense of litigation.”
Rather than doing so, Activision responded by filing Monday’s lawsuit, which is aimed at proving the company and other TikTok users owe Fantano nothing for the use of his clip.
“With Fantano’s approval and encouragement, hundreds of thousands of TikTok users have incorporated the Slices Audio into their own videos over the past two years,” the company’s lawyers wrote. “But now … Fantano has embarked on a scheme whereby he selectively threatens to sue certain users of the Slices Audio unless they pay him extortionate amounts of money for their alleged use.”
Activision is seeking a so-called “declaratory” ruling that Fantano cannot sue TikTok users over the clip, as well as an order forcing him to repay the company’s legal bills.
Fantano did not immediately return a request for comment through his website.
Billboard is introducing a peer-voted award to run alongside its annual Latin Power Players list of the genres’ most influential executives. This new Latin Power Players’ Choice Award will honor the executive in the genre whose peers believe has had the greatest impact across the music business over the past year, from recording and publishing […]
Billboard is introducing a peer-voted award to run alongside its annual Latin Power Players list of the genre’s most influential executives. This new Latin Power Players’ Choice Award will honor the executive in the genre whose peers believe has had the greatest impact across the music business over the past year, from recording and publishing […]