Business
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In 2020, the U.S. music business contributed $212 billion to the country’s gross domestic product, up from $180 billion in 2017, according to the latest iteration of a report titled 50 States of Music that integrates data provided by independent record labels, performing rights organizations, independent music venues, music museums and other organizations.
The booming music industry has also been good for the labor market. From 2017 to 2020, the number of jobs supported by the music industry grew 1.9% annually from 2.17 million to 2.54 million while overall U.S. employment growth was flat, according to the report’s study from two economists at the firm Secretariat. Direct employment — jobs in the music industry — grew from 1.13 million to 1.32 million over that time, while indirect and induced employment improved from 1.04 million to 1.22 million. Indirect employment includes jobs that result from the goods and services used by direct employment. Induced employment accounts for the jobs created by the additional spending of direct and indirect employees.
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Fueled by streaming services and a revitalized vinyl market, U.S. wholesale recorded music revenues increased from $5.78 billion to $8.02 billion from 2017 to 2020, according to the IFPI. That growth coincided with an uptick in music businesses. Over that four-year time span, the number of music industry businesses and establishments — spanning brick-and-mortar entities to digital companies — increased from 227,000 to 252,000.
In putting a dollar amount on the U.S. music industry, the report effectively underlines the stakes in failing to stave off the threat artificial intelligence (AI) poses to the business. A thorough study of music’s economic impact is important for an industry that frequently seeks lawmakers’ intervention against new technologies and threats to copyright. If music business revenue and employment are hit by AI, the losses would create a ripple effect that touches other businesses and workers.
“As Congress and state leaders grapple to figure out smart guardrails and innovative policies for the AI age, we face a truly unique, once-in-a-generation inflection point,” wrote Mitch Glazer, chairman/CEO of the RIAA, which funded the study behind 50 States of Music. Glazier continued that he welcomed “new opportunities, sounds and experiences made possible through responsible AI innovation” but warned of the risks of “irresponsible and unethical AI.” Unauthorized and uncompensated use of copyrighted music to train AI models “threatens to rip a gaping hole in the fabric of America’s music communities” and shift music’s economic impact to “global tech giants at the expense of the artists, writers and music companies who shape America’s 50 states,” he added.
California, where music contributes $51.4 billion to the economy, has the largest impact of the 50 states in terms of earnings, employment and value added. Texas, home to nearly 128,000 songwriters (per ASCAP, BMI, SESAC and GMR), ranks second at $26.6 billion, while New York is a close third at $24.9 billion. Florida, home to the Latin music business, is fourth at $9.3 billion. Driven by country music in Nashville and the blues in Memphis, Tennessee ranks fifth at $7.5 billion. And Pennsylvania, where music supports nearly 115,000 jobs, is sixth at $6.3 billion.
The report’s authors used data from sources such as the Census Bureau, the Bureau of Economic Analysis and private-sector data sets. Music’s economic impact was calculated by estimating its direct revenue and employment and then using what’s called a RIMS II multiplier — statistical tools developed by the Bureau of Economic Analysis — to estimate direct revenue’s downstream effects on local economies.
TikTok is reportedly testing a feature that allows fans to pre-save upcoming albums so they will be automatically added to users’ music libraries on Spotify or Apple Music once they’re released. The news of the test was first reported by Music Ally. A rep for the platform declined to comment. Pushing for pre-saves has been […]
Brandi Carlile has signed with CAA and Phantom Management for worldwide representation in all areas. In addition to helping expand Carlile’s music initiatives, CAA will work to create opportunities across film, TV, publishing and more.
Phantom Management was launched this year by music veterans Catherine Carlile and Carolyn Snell. The company also represents longtime Brandi Carlile collaborators The Hanseroth Twins. Catherine, who is also Brandi’s wife, began her music career at MPL Music Publishing in London and went on to work with Paul McCartney for more than a decade. After relocating to the U.S. in 2011, Catherine served as the executive director of the Looking Out Foundation and creative director for Brandi before transitioning into senior management. Snell has led the coordination and management of global tours for renowned artists such as Reba McEntire, Janet Jackson, John Mayer and Indigo Girls.
Brandi Carlile is an 11-time Grammy award and two-time Emmy award-winning artist. She has released seven studio albums, including her most recent, the three-time Grammy-winning In These Silent Days. Carlile’s debut album, The Story, spent 25 weeks on the Billboard 200 chart; all of her subsequent albums also landed on the tally She has additionally placed 14 singles on Billboard‘s Adult Alternative Airplay chart, according to Luminate.
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Carlile is also a renowned producer, with recent Grammy Award-winning projects from Joni Mitchell and Brandy Clark. She is a founding member of the all-female country group The Highwomen and has collaborated with Elton John, Soundgarden, Alicia Keys, Hozier, Noah Kahan, Jacob Collier, P!nk and Dolly Parton. She is also the creator of two annual music festivals, Brandi Carlile’s Girls Just Wanna Weekend and Brandi Carlile’s Mothership Weekend.
In the publishing arena, Carlile’s 2021 memoir, Broken Horses, reached No. 1 on the New York Times bestsellers list. She is scheduled to release another book with Dey Street Books (Harper Collins) next year.
Carlile is also a founder of the Looking Out Foundation, which has raised more than $6 million for grassroots causes, and is a co-owner of the wine label XOBC.
Phantom Management was founded this year by Carlile’s wife Catherine and Snell, both of whom have long histories in the music industry.
Superstar producer Metro Boomin is facing a civil lawsuit over allegations that he raped and impregnated a woman in 2016, then referenced the incident in one of his songs.
In a complaint filed Tuesday (Oct. 29) in Los Angeles court, attorneys for Vanessa LeMaistre say she blacked out after ingesting a Xanax and a shot of alcohol in his recording studio during the September 2016 session, then awoke to find herself being sexually assaulted by Metro (Leland Wayne).
“The next thing Ms. LeMaistre can recall is waking up on a bed in a different location with Wayne raping her and being completely unable to move or make a sound,” her lawyers write. “At no point during this encounter was Ms. LeMaistre able to consent to any sexual activity, and Wayne’s conduct without question constituted rape and sexual assault.”
In a response statement, Metro Boomin’s attorney Lawrence Hinkle II called the lawsuit “a pure shakedown” against his client: “These are false accusations. Mr. Wayne refused to pay her months ago, and he refuses to pay her now. Mr. Wayne will defend himself in court. He will file a claim for malicious prosecution once he prevails.”
The lawsuit claims Metro exploited the death of LeMaistre’s infant son to gain her trust, and that she believed they had “bonded over the ability of music to help people in their darkest moments.” But it says that belief was “shattered” after he invited her to the studio for the September 2016 session.
“Meeting Wayne resulted in Ms. LeMaistre suffering from the second worst thing that ever happened to her — being raped by someone who pretended to be her friend for months,” her lawyers write. “Ms. LeMaistre is still working to put herself back together after experiencing such an extraordinary amount of trauma at the hands of Wayne — someone she truly believed to be her friend but turned out to be her worst nightmare.”
Weeks after the alleged assault, LeMaistre says she learned she was pregnant. She says she did not have sex with anyone else other than Metro and that the pregnancy was the result of the alleged rape. Due to the “recent loss of her son and the traumatic cause of her pregnancy,” her lawyers say she could not continue the pregnancy and had an abortion in November 2016.
Notably, the lawsuit claims the alleged attack is referenced in the 2017 song “Rap Saved Me,” released by 21 Savage, Offset and Metro on their collaborative studio album Without Warning. The lyrics in question are: “She took a Xanny, then she fainted/ I’m from the gutter, ain’t no changing/ From the gutter, rap saved me/ She drive me crazy, have my baby.”
“The lyrics were horrifying for Ms. LeMaistre to hear over and over again, as they recounted the situation that happened to her and caused further trauma,” her lawyers write.
LeMaistre is represented by lawyers from Wigdor, the same law firm that filed a high-profile civil lawsuit against Sean “Diddy” Combs last year on behalf of his ex-girlfriend Cassie Ventura — a case that was then followed by a flood of other allegations and eventual federal criminal charges.
In a statement, the Wigdor attorneys referenced the alleged connection between the lyrics to “Rap Saved Me” and LeMaistre’s accusations.
“Metro Boomin has built a successful career with lyrics and social media that are not only offensive but also explicitly outline his intentions to harm women,” the firm wrote in a joint statement with LeMaistre’s co-counsel from the law firm Gerard Bengali. “These are more than mere words, and it’s time for him to be held accountable for his manipulative tactics and unacceptable behavior.”
Read the entire lawsuit against Metro here:
Reservoir Media raised its outlook for the coming year and delivered mid-single-digit growth thanks to strong gains in digital and synchronization revenues.
The New York-based company’s revenue increased 6% to $40.7 million in the fiscal first quarter ended Sept. 30, the company announced Wednesday (organic growth that excludes the impact of acquisitions was 5%). Adjusted earnings before interest, taxes, depreciation and amortization climbed 11% to $17.6 million.
Music publishing revenue jumped 10% to $28.6 million due mainly to catalog acquisitions and price increases at digital streaming services. Digital revenue grew 22% to $15.6 million and synchronization royalties increased 30% to $5.8 million as film and TV licensing is “getting back to pre-strike levels,” said CEO Golnar Khosrowshahi during Wednesday’s earnings call. Performance revenue fell 22% to $5.1 million, due to “the timing of hits songs,” the company said. Mechanical royalties dropped 13% to $1.1 million.
Recorded music revenue fell 1% to $10.7 million. Reservoir attributed the year-over-year decline to the reissue of rap icons De La Soul’s physical catalog in the prior-year period. Recorded music physical revenue sank 21% to $1.5 million. Digital revenue fell 0.1% to $7.2 million. Neighboring rights revenue jumped 35% to $1.1 million and synchronization royalties rose 3% to $900,000.
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Last quarter, Reservoir licensed of Snoop Dogg’s publishing catalog and Snoop-owned Death Row Records, and signed deals with Canadian singer-songwriter k.d. lang, country writer-producer Travis Heidelman, songwriter Jon Decious, writer-producer Kes Kamara and writer-producer Ben Stancombe. The company also purchased the publishing catalog of Billy Strange (“A Little Less Conversation,” “Clean Up Your Own Backyard”) and acquired the royalties of Jack Douglas, who produced hits for such artists as Aerosmith and Cheap Trick.
“As we look forward to the second half of fiscal 2025 our pipeline continues to remain strong, with over $1 billion in transactions under consideration at attractive entry multiples,” said Khosrowshahi. Reservoir is looking at opportunities with “better multiples,” she added, “but I still continue to see a substantial number of transactions trading at high-teen multiples. And I think the long-term value of these assets is recognized, thus warranting these multiples.”
Reservoir slightly increased guidance for the full fiscal year. Revenue to a range of $150-153 million (from $148-152 million) and adjusted EBITDA to $59-$62 million (from $58-61 million).
Shares of Reservoir Media were up 0.3% to $8.81 by midday after jumping as high as $9.09, just shy of the stock’s 52-week high of $9.20.
Fiscal first quarter of 2025 financial metrics for Reservoir:
Revenue: up 6% to $40.7 million
Adjusted EBITDA: up 11% to $17.6 million
Net income: down 78% to $200,000
Publishing revenue: up 10% to $28.6 million
Recorded music revenue: down 1% to $10.7 million
When Beyoncé sings about “rugged whiskey” and the “dive bar we always thought was nice” on her country album Cowboy Carter, she was definitely not talking about her whisky.
Launched this September in partnership with luxury giant LVMH’s Moët Hennessy, Queen Bey’s premium rye whisky SirDavis retails for $89 bottle and was inspired by her paternal great-grandfather’s legacy as a successful Prohibition-era moonshine maker.
It’s the latest product from Beyoncé, who, in addition to performing 56 shows for her $580-million-grossing 2023 Renaissance World Tour, also released a perfume called CÉ NOIR and a haircare line called Cécred over the past year.
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Fans are feverishly speculating on what genre she might reclaim next for a potential Act III album. So, why would she spend her precious time and invaluable brand power to release a whisky? And how much money might she make from it?
Billboard interviewed half a dozen alcohol industry experts and leading entertainment lawyers, and while they unanimously agreed that it is too early to guess at SirDavis’ sales — it only launched in August — they said the whiskey fits into a modern-day marketing strategy as multi-faceted as Queen Bey’s career.
“It’s an extension of the marketing push for her latest album, which has references to traditional Americana and American heritage,” says Spiros Malandrakis, head of alcoholic drinks research for Euromonitor, referencing Beyoncé’s Cowboy Carter, which came out in April. “What is one of the most iconic products that encapsulates American heritage? It’s an American whisky that has roots dating back to moonshine.”
Cowboy Carter debuted at No. 1 on the Billboard 200 album chart dated April 13 with 407,000 equivalent album units earned in the U.S. in the week ending April 4. It has since racked up a total of 1,322,896 equivalent album units, according to Luminate, and marks her her eighth No. 1 album. Whisky comes up in the lyrics of several Cowboy Carter songs, as do Levi’s jeans — spelled “Levii’s Jeans” on the track that features Post Malone — and Queen Bey is currently featured in an ad campaign for the classic denim company.
But given the international nature of her brand, Malandrakis says, Bey’s whisky works to extend its appeal beyond a strictly Americana audience. SirDavis whisky dropped the e, as the Scottish do, and it incorporates grains often used in Scotch and Japanese whiskey.
“She kind of winks towards this international side of her brand,” Malandrakis says. “She is a black American icon. She is also equally, potentially even more so, an international icon.”
WORTH A SHOT
Celebrity liquor deals have the potential to make superstars into billionaires, like the sale of Casamigos Tequila did for George Clooney, and before that what Cîroc vodka and DeLeón tequila did for Sean “Diddy” Combs. Beyoncé’s husband Jay-Z did his first liquor deal in 2012 — D’ussé Cognac with Bacardi — and in 2021 he sold half of his champagne Ace of Spades to LVMH. As of May, Forbes estimated Beyoncé’s net worth to be $760 million.
Jordan Bromley, head of Mannatt’s entertainment transactions and finance practice, says that these kinds of deals can be highly lucrative, whether the talent receives an upfront check or sticks around for two or three years to build the brand and then negotiates a big payout when they exit.
Beyoncé x Sir Davis
Mason Poole; Julian Dakdouk
“This should be a tentpole of any icon’s business portfolio, and not just in liquor but maybe home goods, athletic goods or venues,” says Bromley, citing Rihanna’s Fenty as one of the most successful examples of an artist becoming a billionaire thanks to a business outside of a music career. “You’re not stressing out over a record label audit—which you should do every two or three years—because you’re a 20% owner in a billion dollar company.”
However, Bromely says, there is risk for icons in lending their star power to a product.
“Is there risk? Absolutely—only the entire trust you’ve created for your brand,” Bromley says.
The product has to be good and it has to sell, and the ingredients necessary for those two components are not the same with all products. The Wall Street Journal reported in 2023 that Beyoncé and Adidas AG ended their partnership, the “adidas x IVY PARK” collection, after disappointing sales.
With spirits, sources say success usually seems to follow when fans believe a superstar authentically enjoys drinking the spirit in their spare time.
The SirDavis story posits that Beyoncé has whisky-making in her blood, and followers of her social media accounts know she has frequently posted about tasting and collecting rare Japanese whiskeys.
It is not known if Beyoncé has an ownership stake in SirDavis, and LVMH, which owns Moët Hennessy, rarely breaks out sales for its individual products. But Malandrakis says most celebrities exit their liquor company partnerships within a few years with a sizeable check.
“Not because they lose interest but they realize these things have a timeline. At some point Beyonce will not be as relevant, as strange as that sounds,” Malandrakis says. “The longevity of products like that is ultimately down to how good they are and how much they create for the community.”
Money Makers is a new column in which Billboard unpacks one financial issue a week for an artist in the news. Thanks for reading, and if you have suggestions or tips, email me at ediltsmarshall@billboard.com.
Brazilian pop singer/songwriter Giulia Be has signed a new recording deal with Sony Music Latin Iberia. The rising Brazilian star, whose music draws from Brazil’s tropicalismo movement with influences of disco and urban music, is currently working on new material that will be released through Sony worldwide. “I am deeply grateful for this new journey […]
ASCAP and SACEM are expanding their existing relationship into an alliance that will allow them to invest together in data technology and collect directly from streaming services in more foreign markets, plus launch an AI task force and encourage collaboration among songwriters. Since 2022, SACEM has collected money from online services in foreign markets for ASCAP […]
Megan Thee Stallion is suing a YouTuber and social media personality who she claims is a “mouthpiece and puppet” for Tory Lanez, accusing the woman of “churning out falsehoods” about the criminal case stemming from Lanez shooting her.
In a lawsuit filed Wednesday, attorneys for the rapper (Megan Pete) accused Milagro Gramz (Milagro Elizabeth Cooper) of carrying out a public campaign to “denigrate, belittle, insult, and spread false statements” about her.
That allegedly included Gramz sharing a pornographic “deepfake” depicting the rapper – a move that Megan’s lawyers say violate a Florida statute banning “altered sexual depictions” of real people.
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“Enough is enough,” writes Megan’s attorneys at the law firm Quinn Emanuel. “Ms. Pete—a victim of violent crime and champion of women’s rights to her millions of fans worldwide—will no longer stand for defendant’s campaign of harassment.”
The lawsuit also accused Gramz of cyberstalking, intentional infliction of emotional distress, and invasion of privacy.
In a statement posted to X (formerly Twitter), Gramz acknowledged the lawsuit, saying she had “been informed that I’m being sued by Alex Spiro on behalf of his client Megan Thee Stallion.” After quoting from a threat letter, she said: “Of course we’ll chat about it. They threw in the tape too.”
The new case came days after a high-profile false story about Megan and Lanez – claiming incorrectly that an appeals court had declared “innocent” in the shooting — circulated on social media. Spiro, Megan’s long time attorney, warned yesterday that he was planning legal action over such “nonsense.”
Lanez (Daystar Peterson) was convicted in December 2022 on three felony counts over the violent 2020 incident, in which he shot at the feet of Megan during an argument following a pool party at Kylie Jenner’s house in the Hollywood Hills. In August 2023, he was sentenced to 10 years in prison. He has filed an appeal, which remains pending.
In the new lawsuit, Megan’s attorneys say Gramz repeatedly spread falsehoods about the case, including questioning whether she was even shot and claiming she was “caught trying to deceive the courts.” More recently, they say Gramz has pushed the “outlandish claim” that the gun used in the shooting had gone missing.
“Defendant Cooper’s statements recklessly disregarded the truth and suggested that the firearm was never presented in court because it had allegedly disappeared. It has not,” Megan’s lawyers write. “The firearm remains in the custody of the Los Angeles Police Department.”
As for the deepfake video, the lawsuit does not accuse Gramz of directly creating or posting the video, but claims that she “encouraged her followers” to watch it, including by pointing users to a post that had directly shared the video.
“Defendant Cooper willfully and maliciously promoted the Deepfake Video without Ms. Pete’s consent,” Megan’s lawyers write.
Virgin Music Group has announced the acquisition of Outdustry, a leader in artist and label services and rights management across China, India, and other high-growth markets.
The acquisition, disclosed on Wednesday, underscores Virgin’s commitment to expanding its influence in some of the most dynamic music regions globally. Outdustry will continue its established operations in marketing, music publishing, and label services under the Outdustry brand, while founder Ed Peto will join Virgin Music Group as senior vice president of international strategy.
Peto, based in London, will oversee Virgin’s strategic direction in China, India, and other fast-growing regions, reporting directly to Virgin Music Group co-CEOs JT Myers and Nat Pastor. He’ll collaborate closely with Michael Roe, managing director of Virgin’s operations in Africa, the Middle East, and Asia.
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“After more than fifteen years working in China, India, and other territories, Ed and his team have built unparalleled experience and relationships in some of the world’s most important growth markets,” said Myers. “Ed will be a key player as we chart our global expansion plans. We’re happy to have him and his team onboard for this exciting next step in the evolution of Virgin Music Group.”
Peto stated, “Bringing everything we’ve built at Outdustry into Virgin Music Group represents an enormous opportunity to expand our vision globally. It’s never been a more exciting time to be working in music, and I’m looking forward to working closely with the incredible team that Nat and JT have assembled to create more opportunities for independent music entrepreneurs and artists around the world.”
With a well-established footprint in Asia, Outdustry operates as a multifaceted company that includes Outdustry Songs, a publishing arm that has landed numerous hits with leading Chinese artists such as Bibi Zhou, Kun, Jolin Tsai, Chris Lee, Lu Han, Sunnee, Jane Zhang, and Pharaoh. Outdustry Records, the company’s label division, is committed to spotlighting emerging talent in the region. Both Outdustry Songs and Outdustry Records will continue to work in partnership with Universal Music Publishing Group and Virgin Music Group, respectively.
Founded in Beijing in 2008, Outdustry has been pivotal in facilitating international success for artists like Adele, Dua Lipa, Lauv, and Major Lazer in the Chinese and Indian markets. The company has also been instrumental in landmark market entries for indie heavyweights like Beggars Group and Merlin and has consulted for global brands including Spotify, PRS, and Believe in Greater China.