Business
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The board of Warner Music Group (WMG) announced Thursday (April 27) that it’s elected Val Blavatnik, son of WMG’s controlling shareholder Len Blavatnik, to a seat on the board of directors as well as the company’s executive committee.
Val Blavatnik replaces Len’s brother Alex Blavatnik, who’s served as a director on the WMG board since Access Industries acquired WMG in July 2011. Len Blavatnick currently serves as a director and vice chairman of WMG’s board.
Val Blavatnik has worked on the investment team at LionTree, covering the media and tech industries, since 2021. He has also been a production executive at the New York-based film and TV production company Eden Productions. He serves on the executive committee of Access Industries and previously worked in the music industry, primarily as an artist manager, according to a press release.
“We’re pleased to welcome Val to the WMG Board,” Michael Lynton, WMG’s board chairman, said in a statement. “His experience working with a variety of companies as well as directly with artists makes him well suited to his new post. He’ll also bring a fresh perspective as we chart the future of WMG. We’re incredibly grateful to Alex for his wisdom, guidance, and enthusiasm over the past 12 years, as the company has grown and thrived in the streaming era.”
“I’m excited to be joining the Board during this dynamic, transformational time at WMG, with so many innovative opportunities ahead for artists and songwriters,” Blavatnik said. “I’ve previously worked on artist projects with the senior team, and I’m looking forward to collaborating with the impressive group of leaders on the Board.”
Two new bills introduced to the Senate Wednesday aim to clean up the ticketing industry and address long-standing criticisms about Ticketmaster’s dominance over the primary ticketing market.
The TICKET ACT, introduced by Sens. Maria Cantwell (D-Wash.) and Ted Cruz (R-Texas) — chair and ranking member of Chair of the Senate Committee on Commerce, Science and Transportation, respectively — would ban hidden ticket fees, requiring vendors to display the total price of a ticket up front. These fees can sometimes increase the purchase price by as much as 60% or higher. For example, some tickets in the upper seating section for Luke Combs‘ current stadium tour being sold by Ticketmaster are marked up more than 100% when fees and taxes are added to the face value.
The bill would also attempt to reign in speculative ticket sales, a heavily criticized sales technique used by ticket scalpers to maximize profits. Speculative ticket selling is the practice of selling a ticket one does not own, often at the height of the market, and then waiting until the price drops to procure and deliver the ticket to the consumer. The TICKET ACT would require scalpers to display in a “clear and conspicuous manner” that the ticket seller does not actually possess the ticket at the time the ticket is listed for sale.
Recent ticketing legislation proposals by both Live Nation and the National Independent Talent Organization have called for a ban of speculative ticketing – with several prominent music industry executives comparing the practice to fraud.
The other bill, the Unlocking Ticketing Markets Act, was presented by longtime Ticketmaster critics Sens. Amy Klobuchar (D-Minn.) and Richard Blumenthal (D-Conn.), seeking to limit the use and scope of exclusive multi-year ticketing contracts in live entertainment. The legislation is aimed at Ticketmaster, which “by some estimates has locked up 70 to 80 percent market share and has used its dominance to pressure venues to agree to ticketing contracts that last up to ten years, insulating it from competition,” explains a press release from Klobuchar’s office announcing the legislation.
It follows a January Senate Judiciary Committee hearing probing the cause of the Ticketmaster Taylor Swift crash. During the hearing, Ticketmaster was regular criticized by the committee for the company’s dominate market share of the U.S. ticketing industry, with several senators accusing the company of acting like a monopoly.
The Unlocking Ticketing Markets Act would empower “the Federal Trade Commission to prevent the use of excessively long multi-year exclusive contracts that lock out competitors, decrease incentives to innovate new services, and increase costs for fans.”
The text of the Unlocking Ticketing Markets Acts has not yet been released to the public and it’s unclear how the bill would define excessively long contracts. In a press release announcing the legislation, Klobuchar’s office noted that some exclusive ticketing contracts last as long as ten years, but the average contract term in sports and live entertainment is typically five to seven years, according to multiple sources, including the often-cited Ticketmaster vs. Tickets.com lawsuit from 2003.
The music industry, like investment banking, is built largely on relationships, and Fred Davis and Joe Puthenveetil have built their careers on being relationship brokers to both worlds.
Partners at merchant bank The Raine Group, Davis — who is the son of music industry icon Clive Davis — and Puthenveetil are two of the most influential financial power brokers in the business. Since one of Raine’s earliest music deals advising Abu Dhabi, United Arab Emirates-based Mubadala Investment on its acquisition of EMI, it has advised on or invested in billions of dollars of transactions. In recent years, the pair managed the $230 million sale of CD Baby’s digital operation to Downtown Music Holdings, helped Antonio “L.A.” Reid and Charles Goldstuck raise $75 million to launch the HitCo label and led SoundCloud’s $170 million emergency investment round in 2017, which included recruiting Singapore state fund Temasek to invest alongside it. (Concord acquired Hitco’s entire sound recording catalog and certain additional releases but not the label or brand name in 2022.)
In the past year alone, Davis says the partners have had a hand in more than $1 billion in transactions, including advising Quality Control in its sale to HYBE America, advising private equity firm Francisco Partners in its acquisition of Kobalt and helping Larry Jackson raise $1 billion in capital for his new venture, gamma.
Raine remains an investor in SoundCloud and also helped create Firebird, a conglomerate of independent music labels, publishers and artist management groups that develop and advise artists and help them with business opportunities outside of music.
From left: A photo of Davis’
sons, a memento of Raine’s representation of Providence Equity in its deal with online music technology/instrument retailer Sweetwater, a family portrait with patriarch Clive Davis and a plaque commemorating Raine’s work with Downtown Music to sell its publishing company to Concord.
Paul Stuart
Puthenveetil, a graduate of Georgetown University’s Edmund A. Walsh School of Foreign Service, joined Raine in 2010 and was a driving force behind the CD Baby sale and HitCo fundraising, as well Raine’s investments in SoundCloud, concert/festival producer Blackbird Presents and promoter C3 Presents, which was sold to Live Nation. He sits on SoundCloud’s board of directors, with Davis, and on Blackbird’s board.
Fordham University School of Law-educated Davis (who launched his own law firm, Davis Shapiro & Lewit, before joining Raine) says one of the starkest trends shaping music today is that more money from more sources is flowing into the industry than ever before.
“When I was coming up as a music lawyer, there were maybe three, maybe four check writers,” he says. “The diversity of capital is so enormous in this industry right now. You have HYBE investing in Quality Control from South Korea. Eldridge Capital investing in gamma, along with Apple. Francisco Partners acquiring Kobalt. It’s strategic, private equity, high net worth, sovereign wealth.
“This is a new generation of capital investing in the music industry, “Davis adds. “We’ve never had an era like this ever.” Other investors that Raine has recently advised include pro wrestling giant WWE on its $21 billion combination with Endeavor, Japan’s Softbank Group and the crypto exchange Binance.
For those who aren’t familiar with The Raine Group, please provide some background on the firm and its network of investors.
Fred Davis Raine has nine offices around the world and is very global by its DNA. The network we have now in private equity, sovereign wealth, high net worth, family offices and strategic investors is so complementary to the network a traditional music lawyer has. We can collaborate and do what’s best for the client.
Part of a collection of Nike Air Jordans that Puthenveetil’s wife gifted him.
Paul Stuart
Describe what you do and how your services differ from, say, a music lawyer’s.
Joe Puthenveetil While Fred and I specialize in music, our firm specializes in everything around media and technology. For a lot of our clients, a big part of why they work with us is to access unconventional buyers and pools of capital. Being able to leverage that global expertise and global investors, we’ve got a pretty unique and broad set of relationships across the firm.
How did HYBE America’s acquisition of Quality Control happen?
Davis Last September, we took a trip to South Korea, set up a number of meetings with the best music companies in Korea and went there to uncover opportunities. From that trip, we made the connection between HYBE and our preexisting client Quality Control. We work best with the client’s music lawyer. Quality Control is represented by Damian Granderson, with whom we work extremely well.
A plaque commemorating Davis’ inclusion on Billboard’s 2022 Power List.
Paul Stuart
What does scaling Quality Control look like?
Puthenveetil Quality Control has taken its place in music and expanded it across culture to film and TV, sports, branding, and that’s how we think of the modern music industry. Talent is more than just their music. They are real brands and businesses. And the Quality Control team [COO Kevin “Coach K” Lee and CEO Pierre “P” Thomas] understands that better than anyone. Coach and P have been public about their ambitions to make Quality Control one of the biggest businesses in hip-hop and broader Black culture. Having a partner that can help them do that with capital and expertise, they may scale further into film, TV and video games.
Davis One of the visions that Coach and P have shared with us over the years is how they want to make Atlanta the home of hip-hop and street music the way Nashville is the home of country. HYBE will help them accomplish that vision.
Are Quality Control and gamma similar in that they are both trying to take artists beyond music? What are your views on that?
Puthenveetil One hundred percent. They both approach it in slightly different ways, but fundamentally, it’s driving at the same thesis and reality that artists build their careers through music, but build their brands and communities through everything else they do. That is where we see the industry going more and more. Thinking back to our trip to Korea last September, they have fundamentally understood that for a lot longer than we have in the U.S. On the investing side, we helped create a business called Firebird that has a similar belief and is partnering with the best labels, managers and publishing companies to help them expand beyond music and touring.
What is Firebird building?
Davis We invested in [as opposed to simply advising] Firebird. They are in the process of building a new-generation music company that will be a combination of managers and independent record labels as its core. They’ve done about a dozen transactions and are well on their path to building a great new music company.
How is Firebird different from gamma, which also calls itself a new music company?
Davis Gamma will not be in the management business the same way Firebird is. There will be some elements of crossover, but the essence of each company will be different.
What role did Raine play in the launch of Larry Jackson’s gamma?
Davis We’ve known Larry for many years. Larry approached us with an idea many years ago of what he wanted to build. Our role was to find the capital to invest in gamma. We negotiated the Apple investment, and we sourced the Eldridge investment and negotiated the terms of the deal. Raine represented Chelsea Football Club, which Todd Boehly and Eldridge acquired. Through our partner Joe Ravitch’s relationship with Eldridge, we introduced Eldridge to Larry. [Eldridge is an investor in Billboard.]
Puthenveetil We also helped [Jackson] translate his vision into a business plan and marketing materials and helped educate the investors on what this all means.
Paul Stuart
Why do you think investing in the music industry will be resilient even if market conditions worsen?
Davis Simple metrics of supply and demand. There is an incredible amount of capital that wants to get into music. There are not that many great companies. That market dynamic will keep valuations high and opportunities exciting.
Puthenveetil The reason everyone is excited about music is that, structurally, it is healthy. Companies are growing, they’re profitable. There are a lot of opportunities to invest, to acquire. When you look around at the broader landscape, sure, there are a lot of challenging sectors of the broader market. But everyone is still streaming music, everyone is still attending concerts. These companies are all still making record profits.
Historically, periods of economic downturn trigger a risk-off approach to alternative investment areas, which is what music is considered.
Puthenveetil Over the past six to nine months, we have gotten more calls from investors looking to enter this space than ever before.
Where do sovereign wealth funds want to invest in the music industry?
Puthenveetil Because of the growth of these funds, they have more people looking at spaces that might not have fallen in their purview before. That has resulted in GIC [in Singapore] investing in [Universal Music Group]. We brought Temasek into SoundCloud alongside us. We’ve seen sovereign funds in the Middle East looking at this space. In every process and transaction, we see more and more of that and expect it to continue. One of the early deals we did in the music space was advising Mubadala when they acquired EMI. At that time, very few people knew who Mubadala was, let alone expected them to buy that asset.
Globally, where do you see the opportunities?
Puthenveetil All of the developing markets. That’s where streaming growth is, and the audiences are younger. But it’s the innovation we see coming out of those markets that is exciting.
Are there any pockets of vulnerability in the music industry?
Davis From a major label’s perspective, the area of vulnerability is the incredible growth of regional music. The percentage of regional music that non-major labels represent around the world in multiple territories is at an all-time high, whether it’s K-pop in South Korea, Afrobeats in Africa or native music to France that’s not on major labels. This is a huge generational trend. From that perspective, it is a vulnerability for major labels.
SiriusXM CEO Jennifer Witz‘s predictions last year that the first two quarters of 2023 would be “softer” proved right, as the audio entertainment company reported that revenues and subscribers edged lower in Q1.
SiriusXM reported revenues of $2.14 billion for the quarter ending March 31, marking a 2% drop, as revenue from subscribers and advertisers both fell between 1% and 2% compared with a year ago.
Still, those modest moves downward were better than the company had predicted for the start of the year, and executives raised their full-year guidance for adjusted earnings before interest, taxes, debt and appreciation (EBITDA) to $2.75 billion from $2.7 billion. They also raised their free cash flow guidance to $1.1 billion from $1.05 billion for the year.
“We outperformed our initial financial expectations, putting us in a strong position to increase our full-year guidance,” Witz said on a call discussing earnings. “We intend to make prudent decisions to remain a very profitable business that continues to serve as a primary audio subscription service to certain audio segments while being complimentary to others.”
The company’s cost-cutting campaign — which has impacted its real estate footprint, workforce and marketing spend — helped allow for continued investment in tech improvements Witz says will improve future growth. Costs related to the new product launches, expected later this year, reached $68 million in the quarter, up 15% from a year ago.
However, the 17% reduction in sales and marketing spend, combined with lower numbers of customers starting trial subscriptions late last year, contributed to 347,000 fewer SiriusXM self-pay subscribers for the quarter. The company ended the quarter with 7.2 million trial users, compared to 6.9 million a year ago.
Self-pay subscribers of Pandora Plus and Premium tiers increased by 7,000 from the previous quarter, but the total number of subscribers edged 2% lower, to 6.2 million in the first quarter from a year ago.
“We are still expecting modestly negative [subscriber growth] for the year,” Witz said. “I would expect the second half to be positive, and that nets us out to the modestly negative.”
The company is in the process of updating the back-end technology and its SiriusXM app, tools Witz says will make it easier to find specific genres, make purchases in the car and elsewhere, and further personalize the experience. The hope is that this will enable the company to introduce new products to the app faster, a key part of its growth strategy.
“We are really focused on investing in this new platform and making sure that positions us for growth going forward,” Witz said on the earnings call.
Key SiriusXM Financial Highlights:
Overall
The company forecast it will generate approximately $9 billion in total revenue for 2023, along with $2.75 billion in adjusted EBITDA and $1.1 billion in free cash flow.
The company reported $2.14 billion in revenue, down 2% from the prior year.
Adjusted EBITDA was down 9% from the year-ago quarter at $625 million.
SiriusXM Segment
SiriusXM reported segment revenues of $1.7 billion, down 2% from the prior-year period, due to lower ad revenue and vehicle paid promotional revenue.
Average revenue per user (ARPU) fell $0.24 to $15.29.
Self-pay subscribers decreased by 347,000.
SiriusXM’s total cost of services rose 2% to $664 million in the quarter on higher programming and royalty costs.
SiriusXM’s gross margin of 61% slipped one percentage point from the prior year.
Pandora and Off-Platform Segment
The Pandora and off-platform segment generated $462 million in revenue, down a slight 1% from the year-ago quarter’s $467 million.
Advertising revenue in the segment held roughly flat from a year ago.
The segment’s gross margin was 24%, down 5 percentage points from the prior-year period.
During my first visit to New Orleans for Jazz Fest many years ago, I experienced a profound moment that changed everything for me. The best way to describe it would be the sensation of deja-vu; like I had been here before, or more specifically that I had returned “home.” That day, the city spoke to me, and thankfully I heeded the call.
Shortly after that auspicious Jazz Fest, New Orleans became my home, and I’ve worked in the music industry here since then — at WWOZ, at Tipitina’s, in the classrooms of Tulane and with so many of our city’s talented artists. This city has provided me with a sense of purpose, a feeling of belonging, and a community of like-minded folks who share the same passion for music. It’s also given me the foundation for a meaningful life.
But the same elements that spoke so deeply to me — our rich cultural heritage and vibrant music scene — often go hand-in-hand with the city’s reputation for partying. It’s a story with which the music industry, my industry, is all too familiar, and one that often leads to addiction.
Addiction is a particularly serious issue in the music world. A 2020 study by Tulane’s Graduate School of Social Work paints a staggering picture: 56% of music industry professionals cite problematic substance use, and 80% met the cut-off for serious or moderate mental health concerns — both far above any national average.
Bill Taylor
Singer-songwriter Anders Osbourne, my good friend who helped me find the path to sobriety after I bottomed out with drugs and alcohol, had an idea about how to tackle this within the music industry. Together, we created “Send Me A Friend,” a national network of sober individuals who were “on call” to support struggling musicians and industry professionals at their gigs.
The effort was an overnight success, with more people asking for help and wanting to volunteer than we could handle. Anders and I wondered what it would take to create a cultural shift so that sobriety was embraced, supported and celebrated on a larger scale?
Our vision is shared by The Phoenix, a national sober community that embraces connection through a shared, active lifestyle that enhances and helps maintain each other’s recovery journeys. During the pandemic, we joined forces with them with a mission of creating sober-supportive change in the music space.
Today, we’re blown away to see how this movement has progressed all the way to a New Orleans institution: JazzFest. This year, I’ll be there alongside The Phoenix and Stand Together Foundation at the 1 Million Strong Wellness Retreat, a sober-supportive wellness lounge where festival attendees can relax between sets, enjoy mocktail happy hours and meet up with people in recovery and others to catch performances together.
And this isn’t about making the festival sober. It’s about giving people an opportunity to bring their whole selves to the festival, free of shame and fear. Together, we can transform the way people think about addiction by supporting new ways for sober fans to enjoy shows, ensuring touring musicians and crews have access to resources on the road, and engaging in conversations about sobriety that are free from shame and stigma and full of possibilities.
I’m proud of how far we’ve come in changing the way we approach recovery and sobriety, turning it into a celebration of inclusivity and togetherness. At this year’s Jazz Fest, we’ll continue to change the landscape not only for those who work in the music industry, but also for our audience members who want a way to engage and enjoy all this beautiful city has to offer while feeling safe, supported, and connected.
Bill Taylor is the director of music programs and strategy at The Phoenix, where he leads music activations all over the country and works with the Stand Together team on the 1 Million Strong campaign.
Reach Music has acquired master and publishing rights to Judas Priest‘s first two records, Rocka Rolla and Sad Wings of Destiny from Gull Entertainments. As part of their new purchase, Reach will work alongside the British metal legends to release a 50th anniversary edition of Rocka Rolla in 2024 as well as other special projects. This deal builds upon Reach’s existing relationship with the band — in 2021, Reach acquired a 50% copyright interest and the administration rights to guitarist Glenn Tipton’s song catalog, beginning with songs released in 1977.
Reservoir has launched a joint venture with American Idol producer, 19 Entertainment, which is part of Sony Pictures Television and already partnered with BMG on the master side. Through their new jv, the two will jointly sign new publishing deals with some of Idol’s contestants, and Reservoir will aid in the young writers’ development.
Peermusic Australia has inked a worldwide publishing deal with Sydney-based hip-hop/rock crossover group Triple One. The agreement includes both Triple One’s full back catalog as well as future works.
Position Music has signed artist and songwriter Sam Tinnesz to a worldwide publishing deal. The deal includes some selected catalog cuts as well as all of Tinnesz future releases, including those made under his artist project and those made as a songwriter.
Prescription Songs has signed Nashville-based artist and writer Josie Dunne. As an artist she played alongside artists like Julia Michaels, COIN, Ben Rector, and Andy Grammer. As a writer, she’s create songs with Natalie Imbruglia, Corook, Spencer Sutherland, and more. She was brought into the roster by A&R Chris Martingnago.
Warner Chappell Music has signed a global publishing deal with country sibling trio Voth. The deal was signed just ahead of their next single “You Own It,” out April 28th.
Record Store Day already has a magnificent track record of bringing music fans out to stores, but this year, the event received an added boost from Taylor Swift’s folklore, the long pond studio sessions — a double LP that resulted in longer-than-usual lines at retailers.
While the spread of Record Store Day (RSD) releases is now a major draw unto itself, the Swift release, which enjoyed a 75,000-unit distribution to stores across the U.S., was the best-selling title by far. Or as Stu Goldberg, owner of Mr. Cheapo CD & Record Exchange on Long Island, N.Y., put it: “Today, it was all about Taylor Swift.”
An assessment of Record Store Day wouldn’t be complete without a call to its administrator and co-founder, Michael Kurtz, who noted that RSD is on course to break the sales record for the most vinyl sold in a single day. When RSD “began 16 years ago, we had 30 releases that sold about 80,000 copies,” Kurtz says. “On Saturday, we had one record, Taylor Swift, selling 75,000 or almost that amount, and plenty of sales from other releases.” It’s likely that her release could be a Top 5 record on next next week’s Billboard 200.
Likewise, Rough Trade store manager George Flanagan said the store’s line was “informed by Taylor Swift fans,” while Newbury Comics store manager Therrien Dolby says the Swift release was the “big draw.” And In Patchogue, NY, Jeff Berg, the owner of Record Stop, says there were so many Swift fans, the store had to create two lines: one for fans seeking her release and one for everybody else. The Swift line had its own dedicated cash register too.
In acknowledgement of the day’s impact, Alliance Entertainment, the largest music wholesaler, says that more than 800,000 units of vinyl were created and shipped for RSD, with retail sales expected to surpass $32 million. “Record Store Day has been a long-time partner to Alliance Entertainment, always collaborating to benefit the independent record store community,” Alliance senior vp of sales Ken Glaser said in a statement.
RSD In NYC
Billboard began its New York City-area Record Store Day trek by driving out to Newbury Comics at Roosevelt Field Mall on Long Island. Upon arrival at 9 a.m., about 40 people were lined up outside. Like other stores later in the day, store manager Dolby positioned himself at the front door, regulating entry to make sure the store didn’t get too crowded and overwhelm the staff. At the 8 a.m. opening time, about 150 people were waiting, Dolby reported, including one customer who arrived at 1 a.m. (Dolby added that mall management, the Simon Property Group, was very helpful and accommodating to the store for the event.)
A common sight on RSD.
Ed Christman
Inside the store, a quick scan revealed that roughly 25% of its bin floor space is devoted to music, with 17 bins dedicated to vinyl and two dedicated to CDs. The store also carries a healthy stock of music merch, mainly artists-t-shirts, and music titles also enjoy a prominent position in front-of-the-store end caps.
Upon leaving Newbury Comics, Billboard headed to Mr. Cheapo CD & Record Exchange in Mineola (the store has a second location in Commack, Long Island). When co-owner Goldberg arrived at the store on Saturday morning, he found a line around the block due in large part to the Swift record, though he admitted that the store underbought the title and quickly ran out of it as a result. That was the store’s number one title for the day, he says, and “if we had more, it would have been the biggest by a mile.”
Fortunately for Goldberg, most people stayed in line after learning the Swift release had sold out. The other big sellers on Saturday were Billy Joel‘s Live at the Great American Music Hall, 1975 and Eric Carr’s Rockology, because “Kiss is always a great seller here,” he adds. Behind the counter, store staffer Jessica commanded the cash register and bagged purchases while touting her band T.O.Y.S.’ next gig with a bag-stuffer flyer for their set supporting hardcore punk band Urban Waste at the Amityville Music Hall on May 5.
Beyond the vinyl explosion, Goldberg noted that CDs are again becoming a big deal because young fans “want something tangible” from their favorite artists.
While at Mr. Cheapo, Billboard ran into respected sales/commerce executive Ken Gullic, who was doing his best to support RSD by picking up Soul Asylum‘s MTV Unplugged 1993 and Tori Amos‘ Little Earthquakes – The B-Sides. Most recently with MNRK, Gullic is entertaining freelance options; entertainment suppliers can reach him at kengullic@gmail.com.
After Long Island, Billboard decided to hit record stores in Ridgewood, Queens and then Bushwick, Brooklyn, on the way to Rough Trade Records on Sixth Avenue near 49th Street in Manhattan. Trying Google for Ridgewood, Billboard hit Scorpio Records and then Deep Cut Records, but things didn’t work out so well. At 11:30 a.m., Scorpio Records was closed and, as it turns out, generally doesn’t open until 2 p.m.
While Deep Cut Records was open and had about 20 people in line, the owner effectively told Billboard to get lost by slamming the door after being asked what his best-selling title was.
Onward Octopus Records in Bushwick. While Octopus didn’t stock any RSD titles, Nigel, who identified himself as the store owner, says it wasn’t for a lack of trying. He explained that his store is relatively new, having opened last summer and that an e-mail to the Record Store Day website was never returned. Nevertheless, the store advertised a 10%-off sale for RSD on a sign placed outside to celebrate the event. Nigel says Octopus Records has a deep selection of electronica music and is now building out other genres.
Down the block from Octopus, Brooklyn Vintage, a clothing store that also sells other merchandise, including records, was getting some Record Store Day action too, with crates of vinyl set outside the door (where a DJ was spinning tunes) and a bin of vinyl inside.
Finally, Billboard headed to Rough Trade in Manhattan, where things were still swinging at 2 p.m. Upon arrival, at least 150 people were still in line, which ran to the corner of 6th Avenue and then a third of the way down 49th Street. The size of the line held steady throughout most of the day, as security never let more than eight or so customers in the store at one time to allow staff to handle sales in an orderly manner.
Store manager Flanagan reports that the first customer lined up sometime before 8 p.m. on Friday night and that the same customer has been the first person in line for at Rough Trade on RSD for at least five years. Meanwhile, beyond the hundreds of copies of the Swift record sold by the store, The 1975’s Dirty Hit release, Live With The BBC Philharmonic Orchestra, was its second most popular, having sold out by 3 p.m.
After Rough Trade, Billboard called it a day but is sorry to have bypassed Record Stop in Patchogue on Long Island, as that store put on an old-school Record Store Day bash reminiscent of the early days when stores threw parties for the annual event. “The town of Patchogue is very pro-business, so we did a block party, getting permits and had the street closed off from cars,” Record Stop owner Berg reports. “We had a food truck and the nearby Burgerology restaurant was hawking Blue Point beer, while we had five bands and a DJ.” According to a Record Stop flyer, the bands were Thee Unsung, the Detonators, Bang For Your Buc and War Pigs, while the DJ set was supplied by Vinyl Guy Tom.
Berg says he decided to make this year special because he wanted to thank his customers as well as his staff. “Record Store Day is about a celebration of what we do,” he says.
The All Access Audio Summit 2023 began Wednesday (April 26), and is set to run through Friday (April 28). Bringing together leaders in radio, podcasting and more, the virtual convention is sparking conversation aimed at optimizing the impact of audio in multiple commercial forms.
Here’s a rundown of highlights from the gathering’s first day (as panels were introduced by Premiere Networks host Angela Yee).
‘What in This Day and Age is Free?’
In the day’s first session, All Access president and publisher Joel Denver chatted with Ginny Morris, Hubbard Broadcasting chairman and CEO, who highlighted a radio air talent’s value as an “entertainer, informer and connector,” with “the ability to move an audience.”
Mused Morris, “Localism and local autonomy are key tenets of what we do. We’re adding local talent in every market we’re in. Without our talent, we’re just another ubiquitous commodity. Those [broadcasting companies] that are committed to talent seem to outlast those that aren’t. And we know we’re not alone, thankfully.”
Morris also touched on AM radio, amid news that the band will not be available in certain vehicles going forward, prompting U.S. Secretary of Transportation Pete Buttigieg to weigh in on AM’s “important role.”
“I think we’re a long way from it disappearing from cars,” Morris said. “I’m involved with the NAB to see to it that all of America has access to all the ways that we’ll provide service in case of an emergency: foreign-language programming… a local baseball or hockey game… or news.”
Denver and Morris also discussed the amount of commercials on radio – a challenge, obviously, that streaming services don’t face with paid subscribers. Per Denver, “We’ve been running radio the same way the last 50, 60, 70 years.” Morris conceded, “We have to make payroll and keep the lights on,” while pointing out that Hubbard stations limit hourly commercials to 12.
“I personally love commercials,” she said, citing financial benefits for both radio and advertisers. “I wish they were more entertaining. We’ve tried to work on our creative and commercial content – it works better for clients, and their business grows.”
Morris reinforced the century-plus history of radio’s “no-trial, no credit-card” model: “What [else] in this day and age is free?”
As for maintaining the medium’s overall place in audio, “Super-serve your local community,” she offered. “We’re making sure we’re earning our place in the lives of our listeners.”
‘Art and Science’
After Jacobs Media president Fred Jacobs presented the results of the company’s Techsurvey 2023, the newest edition of the spotlight on core radio listeners’ media consumption habits, a panel discussed streaming metrics and radio’s traditional reliance on callout research – and where the two meet.
Sean Ross, Ross on Radio editor, advised radio programmers to “listen to music” and “don’t let TikTok have it all,” when it comes to exposing rising songs. “Top 40 is too narrow” in its variety of sounds, he said. “I just don’t think TikTok should be the decider for everybody. It’s one great source, but I don’t think it should be everything.”
Mark Adams, iHeartMedia vp of CHR and program director of KIOI and KYLD San Francisco, echoed Morris’ view that radio, with its air talent, boasts an advantage over streaming. “Listeners are bombarded with choice,” he said. “We have the ability to curate a better experience. It’s about the content, stupid. Are we providing a companion-based music experience?”
The panel also featured Louie Diaz, Cumulus vp of top 40 and rhythmic formats; Alissa Pollack, iHeartMedia executive vp of global music marketing; and Amie Vaughan, 300/Elektra executive vp of promotion and streaming.
“Art and science,” Vaughan marveled. “What a great business we have.”
AI: ‘We Have To Be Careful How We Use It’
Tim Clarke, Audacy senior vp of audio content, led a panel that covered multiple topics, including mulling uncertainties “as we go through the forest with a machete” regarding artificial intelligence.
“The cons are pretty frightening,” admitted Jon Zellner, iHeartMedia president of programming operations, digital music, citing that AI could, among other downsides, lead to higher unemployment. He feels that AI’s most important risk to radio is that it jeopardizes “discovery, surprise, trust and companionship. There are ways we can use it, but it should never be at the expense of a human voice.”
Smith-Richards Collective partner Tim Richards believes that AI can be helpful during a public emergency if air talent is unavailable, by creating familiar-sounding and comforting audio from prior recordings, à la voice-tracking. Still, he cautioned, “We have to be careful how we use it.”
All Access urban/R&B format editor likened the current stages of AI to “the wild, wild west.” He praised that radio programming and sales departments can use it to find out more about audiences, while engineering departments can employ it for technological advances. “The good thing about AI is we can pull the data a little quicker,” he said. Still, “That human factor will always be a part of everything we do.”
The group also discussed radio’s place in breaking new music.
“You just have to be paying attention all the time. There are so many places hit music can come from,” said Rich Davis, iHeartMedia director of CHR and KDWB Minneapolis PD.
Zellner noted research revealing that over 50% of people say that they discover music from radio – a higher share than that of streaming. While he found that stat “surprising,” he feels that listeners like hearing a DJ tell the story of a new song, as “there’s a trust factor.”
Instead of waiting for streaming to introduce hits, “Sometimes you can try to create the story, as well,” said Richards.
Again referencing radio’s role as more than a music service, Zellner directed to air talent that one break in an entire shift might be the only one that a listener hears that day, so make it count. “Make sure everything you’re doing sounds entertaining,” he said. He also advised that a morning show promo that runs throughout that day is essentially a “power song” and should be treated as importantly, by being specific and representative of members’ appeal. “More people will hear the promo than your actual show,” he said. “So make the promo kick-ass.”
“You’ve got to work harder than you ever have before,” offered Richards about radio’s current challenges among so many listener options. “The human attention span is more fractured today than it has been in the history of mankind.”
‘Great Programmers Always Find a Way’
A session on audio production continued the All Access Audio Summit’s first day (with Kelly “K3” Doherty, president and founder of Imaging House, sharing a tip that if anyone looking to record audio can’t get to a studio, solid soundproofing can be found … in a car), followed by a closing segment focused on radio programming.
Moderator James Howard, iHeartMedia regional senior vp in Chicago, declared, “Today is the good old days” for radio, and that programmers should consider “not a wish list, but a ‘can’ list.”
Greg Strassell, Hubbard Radio executive vp of programming, said, “I always quote Steve Rivers, one of my mentors: ‘Great programmers always find a way.’ ”
On recruiting the next generation of air talent, Chris Eagan, Cox Media Group vp of audience and operations, said, “It’s everywhere. We’re a lot more open to letting someone on a radio station than we were 20 years ago. We’re a lot more flexible. If someone shows the talent, or ability, there’s a lot less, ‘Bring me a tape.’ The relationship has sort of flipped.”
The panel, which also included Reggie Rouse, Audacy vp of urban programming and WVEE Atlanta PD, and Tony Gray, president and founder of Gray Communications, cited eager board ops and personalities on TikTok and Instagram, among other social media, as potential on-air voices. Howard suggested bartenders, as they can multi-task and “are great storytellers.”
As for finding hit songs, Eagan cited the importance of simply loving music, as how could one be a chef without liking food? “Be a scholar of music,” he asserted.
Replied Howard, “People love music and animals. If you don’t, you’re a serial killer.”
Meanwhile, as talk turned back to streaming’s place among programmers’ menu of song options, fellow panelist Beata Murphy, PD of iHeartMedia’s KIIS Los Angeles, recalled how the station helped make Encanto’s “We Don’t Talk About Bruno” an unlikely radio hit last year.
“I like to look at streaming, Shazam, other stations,” she said. “But then there’ll be a song every once in while … [“Bruno”] was the No. 1 streaming record, by four times, in Los Angeles. LA is the home of Disney, and it’s a Hispanic-leaning song. We tried it, the jocks set it up properly, it started a conversation, we played the record and then it started testing. That’s something I grabbed from streaming. We set it up properly so it didn’t sound crazy. It worked.”
Murphy further noted, with pride, listener response about “two favorite brands” – Disney and KIIS – “colliding.”
Summed up Strassell about radio in 2023, “Especially coming out of the pandemic, create that awareness. Hopefully your products are great and people will find you. Let’s remind people how great we are.”
Corey Taylor, the frontman of Grammy Award-winning and multiplatinum-selling metal band Slipknot, has signed a “global recordings agreement” with BMG to release his second solo album, Billboard has exclusively learned. The project, called CMF2, will arrive later in 2023.
“I wanted to work with BMG because they came in super hot wanting to work with me, and they’ve been keeping the fires burning for rock, punk and metal over the last few years,” Taylor tells Billboard.
CMF2 will be released on Taylor’s label imprint, Decibel Cooper/BMG, and apparently, he has an eye on helping other talent as well. He explains, “Decibel Cooper will not only allow me to release my own music and art worldwide, but it also gives me a solid way to help bolster any rad new acts I want to put on the roster. BMG is going to help me put my money where my mouth is — giving a boost to the next generation.”
“We are thrilled to welcome Corey Taylor to the BMG family,” executive vp of New York/senior vp of international marketing Jason Hradil said in a statement. “His new album is an extension of the incredible body of work he’s assembled over his career, and we can’t wait for fans around the world to hear it later this year.”
Thomas Scherer, BMG president of repertoire and marketing, Los Angeles and New York, added, “We were completely blown away after hearing Corey’s new album. His music is absolutely brilliant with the marketing skills to match. It is an honor to be the partner for such an inspiring artist and entrepreneur like Corey Taylor and amplify his vision globally.”
Taylor delivered his first solo album, CMFT, in 2020 through Roadrunner Records. It debuted at No. 44 on the Billboard 200, No. 6 on Top Rock & Alternative Albums and Top Rock Albums, and No. 3 on the Top Hard Rock Albums charts. To date, it has earned 52,000 equivalent album units, according to Luminate. Lead single “Black Eyes Blue” earned him his first No. 1 as a solo artist on Mainstream Rock Songs.
When asked how CMF2 will differ from its predecessor, he described it as “bigger, better and harder than CMFT in almost every way: The songs are sick, the music is gigantic, and the risks were off the charts. CMFT was where I came from; CMF2 is where I’m going.”
Taylor, one of metal’s best-known personalities, has a multifaceted career within and beyond the music industry. Six of Slipknot’s studio albums have reached the top three of the Billboard 200, with three of those titles debuting at the peak. The group has earned 12.1 million equivalent album units and has also logged 4.7 billion official on-demand U.S. streams and 8.3 million downloads. The nine-piece band, whose sinister, evolving masks have become one of the genre’s most identifying symbols, will tour Europe throughout June.
Taylor also fronts multiplatinum hard-rock band Stone Sour, which has been on hiatus after releasing six studio albums between 2002-2017. He penned a four-issue companion comic book to Stone Sour’s House of Gold & Bones, Part 1 and 2 projects and is a New York Times bestselling author of four nonfiction books, the latest being 2017’s America 51. He has several acting credits, including roles in the horror films Rucker and Bad Candy.
For the next entries on his résumé, “I’ve always got a ton of things going on,” says Taylor. Having acquired the Famous Monsters horror brand in late 2022, he says the enterprise is “firing up, on print and digitally,” for he is relaunching its namesake zine and intends to create toys, films and festivals under the banner. “Still in [pre-production] for Zombie Vs. Ninja, the first of the movies I’ve written; still toying with the ideas for my fifth book. You know me — can’t get rid of me!”
On April 18, BMG announced it would combine its new-release and catalog recordings businesses, in recognition of how streaming is blurring the line between catalog and front-line music. In March, the company reported that, in 2022, it enjoyed its best year in its 15-year history, with revenue up over 30% due to strong growth in publishing and recorded music, as well as its $500 million-plus investment in music catalogs and artist signings.
Soulja Boy has been ordered to pay his ex-girlfriend $235,900 stemming from an assault and kidnapping lawsuit she filed against the rapper in 2020.
In court documents obtained by Billboard, the rapper, born DeAndre Way, must pay Kayla Myers $1,800 for “mental health expenses,” while the remaining $234,100 is for “physical and mental pain and suffering.”
According to Myers’ original complaint, the alleged assault and kidnapping occurred at the rapper’s Malibu home after a party in February 2019 and reportedly lasted six hours. Myers claimed she tried to leave but that one of Soulja Boy’s assistants prevented her from her doing so. She also alleged that Soulja held a gun to her head, issued numerous threats against her and at one point struck her with the firearm.
“Way held the gun to Ms. Myers’ head and told her she was going to die that night and she would not make it home,” the complaint read. “Way next instructed his assistant to take her in the garage and tie her up with duct tape.”
Billboard reached out to attorneys for Soulja Boy and Myers for comment but did not hear back by press time.
This isn’t the only legal hot water Soulja Boy has found himself in over the past few years. In March 2019, the rapper was arrested for violating his probation stemming from a 2014 weapons conviction. The following month, he received a sentence of 240 days behind bars and 265 hours of community service.
In March, the “Crank That” star was one of several celebrities charged by the Securities and Exchange Comission for promoting cryptocurrencies “without disclosing that they were compensated for doing so and the amount of their compensation,” according to an SEC announcement.