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Neon 16’s co-founder/CEO Lex Borrero and Ntertain chairman Tommy Mottola teamed up to acquire Arro Media, a music marketing and social media agency that boasts a roster of clients like Adidas, Red Bull, NFL, XBOX, Bacardi, The Latin Grammy Cultural Foundation and more.
Founded by Cristina Arcay, the company will be rebranded as AM16.
“We have built a growing agency that will redefine how brands connect their marketing and advertising to the Latin culture because we live it day in and day out,” said Borrero and Mottola in a press release. “Our team has a finger on the pulse of trends, uniquely positioned to spot them before they happen, across music, television and film. Today’s announcement further differentiates our capabilities from competitors and will bring an even more comprehensive offering to our clients and partners.”
AM16 will find the intersection between music, entertainment and culture. Together, they will bring Arro’s capabilities with Neon16’s “innovative approach to cultural storytelling and experiential activations,” they said. The merger will include brand strategy and partnerships, product development, content production, music marketing, social media management, digital marketing, public relations, creative design services and experiential events.
“Launching AM16 agency represents an exhilarating new chapter in my career and the future of Arro,” said Arcay, who is appointed as co-president. “As a Latina entrepreneur, being able to lead and learn alongside our new partners represents a huge opportunity to reshape the industry by championing diversity, elevating ideas and fostering cultural movements that resonate with audiences worldwide.”
Chief marketing officer and co-president Gerry Rojas added, “I feel empowered and excited to be working in a Latino-owned agency where we’re reimagining how brands and artists tell their stories authentically, while raising the Latin cultural currency and creating a true, positive impact rooted in music and culture.”
Neon16 works with A-listers such as Tainy, Thalia, Juan Luis Guerra and Danna Paola. Earlier this year, the company also played a key role in the Netflix Original series La Firma — a Latin music competition that sought to sign the next big Latin music star, featuring Tainy, Rauw Alejandro, Nicki Nicole, and Lex Borrero.
Borrero and Mottola also executive produced Thalia’s music docuseries, Thalia’s Mixtape, via Ntertain on Paramount+.
This is The Legal Beat, a weekly newsletter about music law from Billboard Pro, offering you a one-stop cheat sheet of big new cases, important rulings and all the fun stuff in between.
This week: Dr. Luke and Kesha end their long-running lawsuit with a settlement just weeks before trial; the RIAA takes legal action against a popular message board centered on artificial intelligence-driven voice mimicry; Kanye West aims to dismiss a lawsuit accusing him of illegally sampling a legendary hip hop group; and much more.
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THE BIG STORY: Dr. Luke v. Kesha Ends With Settlement
After nearly a decade of bitter litigation between Kesha and Dr. Luke, in which she accused him of rape and he accused her of defaming him by doing so, the lawsuit will end not with a blockbuster trial, but with joint statements wishing each other well.
Just weeks before the case had been set to go to trial, the two sides announced that they had reached a settlement to resolve the long fight, which kicked off in 2014 after Kesha accused her former producer of drugging and raping her after a 2005 party.
The start of the lawsuit pre-dated the #MeToo movement, but it foreshadowed many of the themes that would characterize much of the litigation arising from that cultural reckoning. Dr. Luke claimed her “vengeful” allegations had been designed to “extort” him into releasing her from her record deal; Kesha claimed he was using the court system to silence and bully a victim who spoke out.
It’s not hard to speculate why Dr. Luke settled rather than test his defamation claims before a jury. Ten days before the deal was reached, New York’s top appeals court finally weighed in on key issues that had long delayed the case, and the result wasn’t good for the producer. The court not only said he was a “public figure” – a designation that makes it extremely hard to win libel cases in American courts – but also that Kesha could potentially recoup her legal bills if she won at trial.
But with or without a courthouse showdown, Dr. Luke appears to have gotten some of what he wanted. In their joint statement, Kesha said that “only god knows what happened that night” and that she “cannot recount everything that happened.” In the same joint statement, Dr. Luke was unequivocal: “I never drugged or assaulted her and would never do that to anyone.”
Go read the full statements, and the long backstory of the case, in our story on the big settlement.
Other top stories this week…
FLORIDA DRAG LAW BLOCKED – A federal judge barred Florida from enforcing its recently enacted restrictions on drag performances, ruling that the law likely violates the First Amendment. Proponents of the statute, including presidential hopeful Gov. Ron DeSantis, claimed it was needed to protect children from “lewd” performances, but the judge said the vague new rules were “dangerously susceptible to standardless, overbroad enforcement which could sweep up substantial protected speech.”
RIAA’S AI CRACKDOWN – Lawyers for the industry group moved to shut down a popular Discord server centered on artificial intelligence and voice models called “AI Hub,” obtaining a federal court subpoena to reveal the identities of its users and sending takedown request demanding that Discord shut down the entire channel. The RIAA’s actions are the latest effort by music companies to rein in the disruptive new technology.
NO SCOTUS FOR GENIUS – The U.S. Supreme Court said that it would not take up a lawsuit claiming Google stole millions of song lyrics from Genius, the popular music database that lets users add and annotate lyrics. Genius claimed Google free-rode on the site’s work, but multiple lower courts had ruled that the site couldn’t sue over copyrighted lyrics it didn’t actually own.
SUMMERTIME SETTLEMENT – Lana Del Rey reached a settlement to end a copyright lawsuit claiming her 2012 music video for “Summertime Sadness” featured 17 seconds of material lifted directly from a short film by a director named Lucas Bolaño. The agreement came weeks after a federal judge denied a motion to dismiss the case filed by Del Rey’s lawyers, who argued that the case was filed well after the statute of limitations.
TROY AVE SHOOTER SENTENCED – Hip-hop podcaster Taxstone was sentenced to 35 years in prison following his conviction earlier this year on manslaughter charges over his 2016 fatal shooting of rapper Troy Ave’s bodyguard during a T.I. concert at a New York City venue. His attorneys told Billboard they would appeal: “Justice wasn’t served.”
BOOSIE RELEASED ON GUN CHARGE – Rapper Boosie Badazz was ordered released on bond on his federal gun charge, after a judge rejected a request by prosecutors to keep him behind bars even longer. The charge follows a May 6 traffic stop in which the feds say the New Orleans rapper was found with a handgun — an alleged violation of a federal law prohibiting former felons from possessing firearms.
KANYE RIPS SAMPLING LAWSUIT – With Kanye West facing a lawsuit for allegedly using an uncleared sample from the pioneering rap group Boogie Down Productions, his lawyers made an unusual argument: That BDP founder KRS-One had “emphatically” stated in a 2006 documentary that “my entire catalogue is open to the public” and “you will not get sued if you sample.”
ZAYN has signed a new record deal with Mercury Records, Billboard can confirm. Along with the news, the singer wiped his social media yesterday and has launched a new pre-save link and teaser in preparation for his Mercury Records debut single, which is said by the label to be arriving “very soon this summer.”
A former member of One Direction and a chart topper in his own right, ZAYN was previously signed to RCA Records. Sources close to the singer told Billboard that the new music ZAYN is making marks a major departure from the sound that defined his previous hits like “PILLOWTALK” and “I Don’t Wanna Live Forever.”
Label president Tyler Arnold says of the deal, “As soon as ZAYN and I met, I knew we had to work together. I was blown away by the new music, but just as impressed by his vision, drive and spirit. We’re honored he and his team have joined us at Mercury Records. We’ve got an incredible opportunity to tell the next chapter of his story together.”
Mercury Records was relaunched in April 2022 as a U.S. imprint of Republic Records, helmed by Arnold and Ben Adelson as president and general manager, respectively. Mercury’s roster includes Post Malone, whom Arnold signed to Republic in 2015, and James Bay, signed by Adelson in 2014. Other signees at Mercury’s launch included Stephen Sanchez, Chelsea Cutler, Jeremy Zucker, Lord Huron, Noah Kahan, BoyWithUke, Ka$hdami, Lyn Lapid and Camylio.
Mercury Records also acts as the hub for Republic’s partnerships with Big Loud Records, home to Morgan Wallen, and Imperial Music, the independent distributor that released Bo Burnham‘s Inside (The Songs).
As a solo artist, ZAYN has released three records: Mind of Mine (2016), Icarus Falls (2018), and Nobody is Listening (2021). They peaked at No. 1, No. 61 and No. 44 on the Billboard 200 chart, respectively. He has also placed six songs in the top 50 on the Pop Airplay chart, including two in the top 10. “PILLOWTALK” peaked at No. 1, and “I Don’t Wanna Live Forever” reached No. 2 on the chart. The two songs also reached those same chart positions on Billboard’s Hot 100 chart as well.
You can pre-save ZAYN’s upcoming single here.
Pulse Music Group, which already houses music publishing and artist management arms, has started Pulse Records with Concord. Pulse Music Group co-CEOs Scott Cutler and Josh Abraham, along with Ashley Calhoun, president and head of creative, will lead the label, which will be part of Universal Music Group-distributed Concord Label Group.
The deal builds on a partnership between Pulse and Concord started in 2020 when Concord’s music publishing division acquired a stake in Pulse Music Group to form a joint venture that included Concord administering Pulse’s catalog and future signings.
Pulse is in talks with a number of acts to join its label roster. “We have been looking to grow our Pulse Music Group brand into the records space for a while now. Given our background as producers and songwriters in our own right, we bring a unique perspective to working in the label space—but we knew we had to get our footing right,” said Abraham and Cutler in a joint statement. “Now with the 15-year success of our publishing division, a company we have built from scratch, we are surrounded by the very best in emerging talent and a highly curated roster.”
The pair added, “With Pulse Records we will continue to set a very high artistic bar. In addition to launching emerging talent, we have plans to work with artists that helped to redefine genres with whom we have created very strong relationships over the years that will soon be coming out of their existing deals… It takes the right business partners to build a business like this, and we couldn’t be happier to have the backing of Concord and the support and business acumen of its senior leadership team as we continue to grow Pulse Music Group and launch Pulse Records.”
Bob Valentine, Concord’s incoming CEO (he replaces outgoing CEO Scott Pascucci, effective July 1), added, “Scott, Josh, Ashley, and the team at Pulse have been a great collaborator with Concord in publishing some of the highest charting songs in the world. Globally recognized as one of the leading frontline creative teams and first-class incubators for culturally relevant music, Pulse Music Group is a company that Concord continues to greatly admire, and we couldn’t ask for more exceptional business partners as we work to launch Pulse Records.”
Pulse Records’ growing staff also includes senior vp/head of marketing Lauryn Caldwell, who joins from mtheory, where she was vp of marketing and artist partnerships. Sarah Ahmed, who was previously senior director of marketing at Atlantic Records, comes aboard as vp of marketing. Tazita Makuria, who joined Pulse in 2022, has been named vp of creative for both the publishing and label divisions, while former Almo Records exec Bel Masbahi will serve as creative director of A&R for both divisions.
Pulse Music Group, which Cutler, Abraham and songwriter Anne Preven started in 2007, has been on a hot streak lately. Isaac “Zac” De Boni & Michael “Finatik” Mulé (who goes by FNZ) took home song of the year honors at BMI Pop Awards for The Kid LAROI & Justin Bieber’s “Stay,” while Tyler Johnson won the Ivor Novello Award for co-writing for Harry Styles’ “Stay.” Angel Lopez co-wrote “First Class” by Jack Harlow, while Gregory “Aldae” Hein co-wrote Miley Cyrus’s “Flowers.”
Non-profit foundation Live Music Society has announced the first recipients of the Music in Action grant program, which provides anywhere from $10,000-$50,000 to small venues. For 2023, 17 venues with a maximum capacity of 300 were provided with a total of $500,000 to develop and implement creative ideas to engage their communities, expand audiences, and generate new revenue sources. This year’s recipients include The Rebel Lounge in Arizona, Sunset Tavern in Washington, Happy Dog in Ohio, Café Coda in Wisconsin and more.
Since the start of the global pandemic in 2020, Live Music Society has provided $3 million in grants to small music venues. The first three rounds of funding were aimed at providing pandemic relief, but the new grant program, Music in Action, is pivoting to help venues succeed and not just survive.
Live Music Society founder Pete Muller — who is also a touring musician — tells Billboard that the foundation understands that the economics for these small venues are difficult and the profit margins can be razor thin, even in non-pandemic years. Small venue owners, he believes, know their community and know the best ways to engage locals and bring people back to their rooms. This year’s ideas included The Stone Church in Vermont continuing their GRRLS 2 The Front program which dedicates the month of March to women and nonbinary-led groups and offers a stage management/sound engineering course. The Elastic Arts Foundation in Illinois will revive their Dark Matter performance series and enhance the AfroFuturist Weekend festival showcasing emerging and established Black artists across different neighborhoods of Chicago’s South and West Sides. Cafe CODA in Wisconsin will expand their COOL SCHOOL program, providing free music education activities and introducing a mobile stage for increased accessibility.
“We’re saying, ‘give us your idea and we will mitigate that risk by giving you money to do it,’ That’s what the grant is,” says Muller. “Hopefully that allows them to do something that’s inspiring and helps the club, but also inspires other places…. It’s seed money. Our return is not cash, it’s creating energy in this ecosystem.”
Funds for the grants come from Muller and other supporters. Live Music Society’s board selected the 17 venues and their programs out of more than 100 applications this year, focusing on ideas that champion historically marginalized groups such as BIPOC, Latinx, LGBTQ+ and people with disabilities.
Music in Action is about trusting that music venue owners know what they need to flourish, says Live Music Society executive director Cat Henry, adding “asking [venue owners] was important, not telling them.”
“One of the biggest things we’ve heard from venue owners is that this is unique. There’s not really a lot of funding opportunities, especially for for-profit [businesses],” says Henry. “It changes the way they think about things knowing that somebody cares about this, that there’s an advocate out there that is looking out for the sector as a whole.”
Live Music Society has also teamed up with trade association National Independent Venue Association for the second annual National Independent Venue Association conference set to take place in July in Washington, D.C. Live Music Society will do an introduction to their grantees at the NIVA ‘23 Independent Awards Gala, a panel discussion with key stakeholders from the small venue community and sponsorship of a Salute to Small Venues concert at Pie Shop. Additionally, they will provide a networking space called the Live Music Society Cantina, located across from The Anthem, the main venue hosting conference programming.
Check out a full list of 2023 Music in Action grantees below.
The 2023 Music In Action Grant Recipients:
Big Room Bar, Columbus, OH
Cafe Coda, Madison, WI
Caffé Lena, Saratoga Springs, NY
Chocolate Church Arts Center, Bath, ME
Club Passim, Cambridge, MA
Dazzle, Denver, CO
Drom, New York, NY
Elastic Arts Foundation, Chicago, IL
Happy Dog, Cleveland, OH
Hey Nonny, Arlington Heights, IL
Ivy Room, Albany, CA
Stone Church, Brattleboro, VT
Sunset Tavern, Seattle, WA
TAC Temescal Art Center, Oakland, CA
The Muse Performance Space, Lafayette, CO
The Parlour, Providence, RI
The Rebel Lounge, Phoenix, AZ
Billboard is introducing a peer-voted award to run alongside its annual R&B/Hip-Hop Power Players list of the genres’ most influential executives. This new R&B/Hip-Hop Power Players’ Choice Award will honor the executive in the genres whose peers believe has had the greatest impact across the music business over the past year, from recording and publishing […]
Patrick Moore has been named as CEO of Opry Entertainment Group (OEG), a division of Ryman Hospitality Properties. His new role includes oversight of OEG’s growth plan, day-to-day operations and business development activities at the company, which has a portfolio that includes the Grand Ole Opry and the Ryman Auditorium. Moore replaces former OEG CEO […]
The U.S. Supreme Court said Monday that it would not take up a lawsuit claiming Google stole millions of song lyrics from the music database Genius.
Genius — a popular platform that lets users add and annotate lyrics — had asked the justice to revive allegations that Google improperly used the site’s carefully-transcribed content for its search results. The company argued that a ruling dismissing the case last year had been “unjust” and “absurd.”
But in an order dated Monday, the court denied Genius’s petition to hear the case, cementing Google’s victory. As is typical, the court did not issue a written ruling explaining the denial. Such petitions are always a long shot, as the Supreme Court takes less than 2% of the 7000 cases it receives each year.
Genius sued the tech giant in 2019, claiming Google had stolen the site’s carefully-transcribed content for its own “information boxes” that appear alongside search results — essentially free-riding on the “time, labor, systems and resources” that go into creating such a service. In a splashy twist, Genius said it had used a secret code buried within lyrics that spelled out REDHANDED to prove Google’s wrongdoing.
Though it sounds like a copyright case, Genius didn’t actually accuse Google of stealing any intellectual property. That’s because it doesn’t own any; songwriters and publishers own the rights to lyrics, and both Google and Genius pay for the same licenses to display them. Instead, Genius argued it had spent time and money transcribing and compiling “authoritative” versions of lyrics, and that Google had breached the site’s terms of service by “exploiting” them without permission.
In March 2022, that distinction proved fatal for Genius. The U.S. Court of Appeals for the Second Circuit dismissed the case, ruling that only the actual copyright owners — songwriters or publishers — could have filed such a case, not a site that merely transcribed the lyrics. In technical terms, the court said the case was “preempted” by federal copyright law, meaning that the accusations from Genius were so similar to a copyright claim that they could only have been filed that way.
In taking the case to the Supreme Court, Genius argued the ruling would be a disaster for websites that spend time and money to aggregate user-generated content online. Such companies should be allowed to protect that effort against clear copycats, the company said, even if they don’t hold the copyright. “Big-tech companies like Google don’t need any assists from an overly broad view of copyright preemption,” the company wrote.
But last month, the U.S. Solicitor General advised the Supreme Court to steer clear of the case. It said Genius’s lawsuit was a “poor vehicle” for reviewing the issues in the case, and that the lower court did not appear to have done anything particularly novel when it dismissed the case against Google. Such recommendations are usually very influential on whether the justices decide to tackle a particular case.
Varnell Harris Johnson, who held senior executive roles at Capitol-EMI, Blue Note, Jive, Island, Elektra Records and more throughout his career in music and who was president of the Living Legends Foundation, has died. He was 76.
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Johnson — or “VJ,” as his peers knew him — passed away on Wednesday (June 21) at 6 p.m. ET of congestive heart failure, Billboard has learned.
Johnson has been credited for recruiting several Black executives, including many women, into key music industry positions. He had an ear for talent and had a hand in bringing Tina Turner over to Capitol Records as a solo artist, and brought the Isley Brothers with him from Elektra to Island. With his knowledge of how influential gospel music was to the community, he helped establish the gospel-focused Verity Records.
“This is a major loss,” says David C. Linton, friend of Johnson and chairman of the Living Legends Foundation. “At the time he broke into the industry, he was able to work in every aspect of the business. Varnell was one of the first Black executives to have total autonomy within the label system. He not only signed some great artists, but he also hired other Black executives and molded so many of our careers. He had a lot of ‘firsts’ in his career. He was always caring, he promoted women, and you could always call him for advice – he was that great link.”
Living Legends Foundation vice president Jacqueline Rhinehart, a marketing professional, remembers him as “the quintessential record man. He was a straight shooter and someone who was great at maintaining relationships at all levels of the industry … He never lost his role as an influencer — it wasn’t reliant on what job he held at what label.”
“He was a people person, a good person to know,” Ray Harris, a veteran record promotion executive and a founding member of the Living Legends Foundation, says. “And I have such a deep appreciation for him because he got on board with the Living Legends Foundation right from the beginning. The organization grew substantially thanks to his participation and leadership. He was always a voice of common sense, wisdom, and calm, and we’re going to miss that voice.”
Johnson was born in Philadelphia. He played football and basketball at Simon Gratz High School and graduated at 16. He then enlisted in the Army at 17, serving as a combat medic in the Vietnam War. Following an honorable discharge, he went to Temple University and graduated with a marketing and advertising degree. Harold Childs, a Philadelphia neighbor, influenced Johnson to get into the music business.
His career in music started as a gofer at A&L Record Distributors before becoming general manager for Philly Groove Records. His was then hired as a marketing/promotion director at GMC, which led to him landing at EMI/United Artists’ newly formed R&B division in Los Angeles in 1979.
Johnson moved to parent company Capitol Records as vice president of A&R, working with artists including René & Angela, A Taste of Honey, Maze featuring Frankie Beverly, George Clinton, Freddie Jackson, Natalie Cole, Peabo Bryson, Roberta Flack, Tina Turner and Ashford & Simpson. His next gig, as vice president of promotion and marketing at Capitol’s Manhattan/Blue Note Records division, brought him back to the East Coast. There, he worked with Dianne Reeves, Bobby McFerrin, Phyllis Hyman, The O’Jays and Shirley Jones.
Johnson was hired as vice president of marketing and promotion at Jive Records in 1992. He worked with R. Kelly, A Tribe Called Quest, KRS One and Aaliyah at Jive. Next, he made his mark at Elektra Records, where he served as vice president and worked with Keith Sweat, Kut Klose and Ron Isley, and then was offered the position of senior vice president and general manager for Island Records’ Black music division; the Isley Brothers followed him, joining a roster with Dru Hill, Karen Clark Sheard and Kelly Price.
Johnson went on to run Junes Entertainment Inc., his own consulting firm, and most recently resided in New Jersey. He is survived by his wife Darlene, son Varnell, (nicknamed “June”) and daughter Tracey.
Funeral arrangements will be announced at a later date.
Shares of Cumulus Media gained 9.7% this week, the leading stock in the Billboard Global Music Index and one of only four stocks in the 21-company index to end in positive territory Friday (June 23).
Overall, the Billboard Global Music Index declined 3.5% to 1,287.41 — more than double the 1.4% declines of the S&P 500 and Nasdaq. Music stocks were more in line with the Nasdaq when the overpowering effects of a small number of tech companies are removed, however. That’s because a few powerhouses — such as Microsoft, Apple, Alphabet and Amazon — often account for a large fraction of the Nasdaq’s gains. To that point, QQQE, an exchange-traded fund that gives equal weight to 100 Nasdaq stocks, declined 2.9% this week.
In the United Kingdom, the FTSE 100 declined 2.4%. South Korea’s KOSPI index fell 2.1%. Central banks in England, Turkey and Norway raised interest rates this week. Investors can reasonably expect more rates hikes in the United States, too. Federal Reserve chairman Jerome Powell said on Wednesday the central bank may continue to raise rates — there have been 10 since March 2022 — but “to do so at a more moderate pace.” When central banks raise interest rates, stocks tend to fall because businesses and consumers are expected to cut back on spending and higher rates make bonds relatively more attractive to stock returns.
Cumulus Media improved to $3.40 a week and a half after the company announced it will sell about 1.75 million Class A common shares — nearly 10% of outstanding shares — at $3.25 per share in a modified Dutch auction that closed on June 9. While the sale will gross about $5.7 million, not including fees and expenses, the final result was well below the company’s goal to sell up to $10 million of shares as part of a previously announced $50 million share repurchase plan.
Shares of French music streaming company Deezer gained 3.6% to 2.32 euros ($2.54), bringing the stock’s year-to-date loss to 20.5%. U.S. streaming company LiveOne gained 3.3% to $1.58. Year-to-date, LiveOne has gained 145.3%. The only other company with a week-over-week improvement was South Korea’s HYBE, which improved 1.2% to 301,000 KRW ($236.91).
The other three Korean music companies declined this week: SM Entertainment and YG Entertainment each fell 5.6% and JYP Entertainment dropped 3.5%. Still, K-pop has been a resounding success for investors in 2023. Led by JYP Entertainment’s 93.7% year-to-date gain, the four Korean companies’ stocks have risen an average of TK% in 2023.
One company, Anghami, was unchanged and the index’s other 16 stocks were in negative territory this week. MSG Entertainment had the Billboard Global Music Index’s largest decline after dropping 17.1%. Sphere Entertainment Co., which spun off MSG Entertainment in April, intends to sell part of its 33% stake in MSG Entertainment. The news dropped the live entertainment company’s share price 12.1% on Wednesday. At Friday’s closing price, Sphere Entertainment’s sale of 5.25 million shares would gross about $170 million that could help fund the state-of-the-art Sphere at The Venetian Resort in Las Vegas that’s set to open in September.