Business
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Indie music company Reservoir Media has acquired the rights to the full catalog of drummer and songwriter Enrique “Kiki” García. García, who was part of Miami Sound Machine, penned many of the group’s biggest hits in its heyday with Gloria Estefan as its lead singer, including the much synchronized “Conga.”
García also wrote Miami Sound Machine’s 1984 breakout “Dr. Beat” and co-wrote several tracks along Estefan, including “1-2-3,” “Give It Up,” and “Rhythm Is Gonna Get You” for the group’s final album, Let it Loose.
But García is best known for “Conga,” which he famously penned on a flight from Utrecht, in the Netherlands, after playing a successful club show the night before.
“The performance stayed on my mind all night,” García recounted in the book Decoding Despacito: An Oral History of Latin Music. “The next day, as we got on the plane and I sat down, this song comes flying out of my mind. I start tapping on the seat table in front of me and I’m singing, “Come on, shake your body, baby, do the song. The rest was sketchy, but by the time we landed I had it all put together. I got up and sang my idea to Emilio and he loved it from the start.”
“Conga” would go on to became an international hit, peaking at No. 10 on the Billboard Hot 100 on Feb. 8, 1986.
After leaving Miami Sound Machine, García continued working with top Latin musicians like Chayanne and Julio Iglesias, while “Conga” and his other hits remain widely and constantly licensed.
“Kiki has contributed so much to the face of modern music as we know it. His collaborations with the Miami Sound Machine brought Latin music to mainstream audiences,” said Golnar Khosrowshahi, Reservoir’s founder & CEO, in a statement. “Embarking on this deal with Kiki marks a notable expansion of our rights in Latin American music and is an exciting opportunity to further diversify our catalog while maintaining our focus on acquiring the rights to evergreen hits.”
Primary Wave Music has acquired Skillet‘s music publishing interests as well as their recorded music royalties across five of their critically acclaimed albums, released from 2003-2016, in a multi-million dollar deal. Some of their biggest hits include “Whispers in the Dark,” “Awake and Alive,” “Feel Invincible,” “Monster,” “Hero,” and “The Resistance.”
Big Yellow Dog Music has signed BSAMZ (Brandon Sammons) to its publishing roster. With more than a decade of experience as a co-writer with artists like Lady Gaga, Kygo, Bryce Vine, Adam Lambert, Culture Club, Sam Feldt and many more, BSAMZ is still continuing to write hits, most recently with K-Pop group Girls’ Generation’s “You Think” off of their No. 1 album Lion Heart.
Reservoir has signed singer, rapper, and songwriter Armani White to his first-ever global publishing deal. The agreement entails both the artists’ back catalog and future works, including his viral hit “BILLIE EILISH” which reached No. 58 on the Billboard Hot 100.
Peermusic has signed singer-songwriter Alejo to an exclusive worldwide publishing deal. The deal encompasses all of the Puerto Rican artist’s catalog, including his new album El Favorito de las Nenas, released on May 4. The deal also includes his hit songs “Pantysito” with Feid and Robi; “Un Viaje” alongside Karol G, Jotaerre and Moffa; “Volar” by Wisin, Chris Andrew ft. Los Legendarios; and “Estrella” with boy band CNCO.
Warner Chappell Music has signed a global publishing deal with Canada-based country act Josh Ross. Named a Spotify Hot Country Artist to Watch for 2023, Ross has been building his profile with key opening slots, supporting talent like Bailey Zimmerman Nickelback, Lee Brice, Chase Rice, Brantley Gilbert.
Wise Music Group has signed a deal with DJ and producer Ron Trent. With almost 30 years of experience in the dance/electronic space, Trent first became acclaimed as a DJ with the release of Altered States at age 15. Under his new project WARM, Trent is still continuing to release enduring electronic works.
CD Baby has mostly exited the physical distribution business: “Going forward, we won’t have a warehouse, we won’t stock CDs, we’re no longer doing mail orders and that sort of thing,” says Scott Williams, president of CD Baby.
“We don’t take a decision like this lightly,” he adds. “But it’s just not as not as relevant for us and not as valuable to the artists that we serve. And so it’s time has come.”
That said, CD Baby isn’t exiting the physical business completely: Artists can still get CDs and vinyl manufactured through the company, CD Baby just won’t warehouse them. “We will still sell them, but those will be shipped to the artists that have purchased them,” Williams explains. “They can use Bandcamp; they can set up their own Shopify site. We have a lot of overlap today with Bandcamp — a lot of people that use us for digital distribution prefer to do their own physical distribution through Bandcamp, and they can still do that.”
CD Baby was founded roughly 25 years ago to sell compact discs for independent artists. (Downtown Music acquired CD Baby’s owner in 2019.) But CD sales started to decline in the 2000s, falling for 17 years straight until experiencing a small uptick in 2021. Sales of vinyl, the other primary physical music product, have traced the opposite path, recently celebrating their 17th consecutive year of growth.
In the first 10 weeks of 2023, CD sales ran slightly ahead of 2022 — 6.8 million in 2022 to 6.9 million, according to Luminate. CD prices are more affordable than vinyl, which often pushes past $30, executives say, and there are fewer production delays. Stars often sell them as a collectible item, and for touring acts, CDs are easier to take on the road to sell at shows.
Some distributors have seen the growth of the vinyl market as an opportunity to get into the physical distribution side of the business. Symphonic Distribution announced that it was adding physical distribution capabilities in partnership with AMPED in 2020. Pieter van Rijn, CEO of FUGA, told Billboard last year he was excited about the company’s recent entry into the physical distribution space. (Downtown also owns FUGA.)
But Williams says the CD has “fade[d] in relevance” for many of CD Baby’s acts. “Operating the fulfillment side of it isn’t going to be part of our core strategy going forward,” he continues. “I think we have better opportunities and things to focus on on the digital side.”
The Copyright Royalty Board issued a landmark determination Tuesday (May 23) for Phonorecords III, maintaining an up to 44% raise for U.S. songwriters and publishers’ headline rate for mechanicals by the end of the period of 2018 to 2022.
The ruling increases those royalties each year during the five-year period — from 11.4% to 15.1% of service revenue by 2022 — but also affirmed key requests from streaming services during their lengthy appeal, limiting royalties based on total content cost (TCC) and reinstating a rate ceiling step in the formula. While the document is restricted from public viewing, an appendix to that determination containing the regulations at the heart of the restricted document was released to the public Wednesday (May 24).
To calculate how much is owed to songwriters and publishers, streaming services use a complex, multi-pronged formula dependent on numerous considerations. Many of these elements were revealed prior to the release of this week’s documents, so while it is noteworthy that the board is now in the last stages of finalizing the rules for Phono III after an appeal by digital services in 2019 was remanded back to the CRB, this determination cements what was previously reported. It has been described in the past as a “mixed decision” by insiders, with some stipulations favoring the interests of the music business while others favor streaming services.
Proceedings to decide how to pay songwriters and publishers for U.S. mechanicals during 2018-2022 began over five years ago. In 2018, a CRB determination set the headline rate moving upwards from 10.5% of a streamer’s revenue in 2018 to 15.1% in 2022 and increased the subscriber count calculations for discounted family and student plans to 1.5 times and 0.5 times respectively.
The 2018 determination also removed the publishing rate ceiling mechanism that prevents the publishers from automatically benefiting with higher payments when their label counterparts are able to negotiate higher rates for their master recordings. This was one of many qualms streamers had with this determination, given that many details were especially favorable to the music business. Spotify, Pandora, Google and Amazon noted then that they felt the board “acted arbitrarily and capriciously by simultaneously combining a TCC prong with an increase in the percentages of revenue prong, [or ‘headline rate’].”
Because some of the digital services hoped to regain some of the more streamer-friendly stipulations from the previous period — Phono II — Spotify, Pandora, Google and Amazon launched an appeal that was successful and resulted in a “remand” process that dragged on until now — after the 2018-2022 period was over. Apple, notably, did not participate in the appeal.
The new Phono III determination upholds the previous headline rate of up to 15.1% of streamer’s revenue by 2022, increasing each year by a full percentage point or by 0.9 of a percentage point, similar to how it was determined in 2018. This detail was revealed by the board in July 2022, as Billboard reported at the time. It also upholds the subscriber count calculations of 1.5 times for discounted family and 0.5 times for student plans, as proposed in 2019.
The appeal did, however, result in a few key wins for streaming services. It also reinstalled a rate cap of 80 cents per subscriber. Namely, the appeal lowered the total content cost calculations — which limits songwriter and publisher payouts to a percentage of what is paid to labels — from what the board determined in 2018.
While the music business was hoping for a TCC rate of 26.2%, the streaming services requested and received a range of different rates depending on the offerings, from the lesser of 20.65% of TCC up to 22% of TCC.
The U.S. mechanical royalty owed to music publishers and songwriters is calculated based on choosing between either the royalties calculated using the headline rate; or the lesser of either the percentage of TCC or 80 cents per subscriber. Whichever of the two pools is greater is selected as what’s known as the “all-in pool.” Afterward, the performance royalties are subtracted from the all-in pool, leaving just the mechanicals behind. The mechanicals are then measured against a per-subscriber pool, and whichever is bigger becomes the final mechanical royalty pool paid out to publishers and songwriters.
The most important TCC percentage rate for Phono III, the rate for standalone portable subscriptions, is 21% of TCC against 80 cents per subscriber.
Since the all-in royalty rates for this prong of the formula are determined based on the greater of the two options — either the headline rate or the lesser of the TCC pool or an 80 cents per subscriber calculation — it is feasible that the TCC rate will not be employed in certain future situations.
In the past, this prong of the formula has helped publishers get a percentage above the headline rate. For example, in 2021, when most services had reverted to the 2013-2017 term headline rate of 10.5%, the multi-pronged formula helped yield an all-in 13.4% of service revenue for publishing royalties.
Participants in the remand included the National Music Publishers’ Association, Nashville Songwriters Association International, songwriter George Johnson — who personally fought back against the streaming services on behalf of the independent songwriter in self-filed court documents — Spotify, Pandora, Google and Amazon.
Next, there is a 15-day window for rehearing motions. Then the Copyright Office will conduct a legal review for error, which could take up to 60 days. After that, the determination will be fully published, giving streaming services and the music business six months to go review and adjust past payments made for U.S. mechanicals to the new rates for 2018-2022 — a process that will likely be a financial boost for the music business.
Still, after this determination is published, the parties will have the opportunity to file a notice of appeal for 30 days.
“We are pleased the court finally has confirmed the result of Phono 3, a case which was decided in 2018. This initial remand decision upholds the 15.1% headline rate increase we fought for, however the length of time we have waited for this decision proves the Copyright Royalty Board system is woefully flawed. Now songwriters have some certainty about their rates, and we will ensure they receive the hundreds of millions of dollars that digital streaming companies owe them during this adjustment period,” said David Israelite, president/CEO of the NMPA.
“The testimonies of the three songwriter witnesses in this trial were powerful, convincing and illustrated the difficulty of songwriters earning a living in the streaming era — as well as the importance and value of the composition in the commercial music process,” said Bart Herbison, executive director of the Nashville Songwriters Association International (NSAI).
“Steve Bogard, Liz Rose and Lee Miller, all NSAI board members, were moving and informative and played a huge role in the historic increase,” Herbison added. “The process is long and difficult requiring time and preparation. We are thankful to these songwriters and to the NMPA.”
Los Angeles prosecutors are asking a judge to impose a harsh sentence against rapper Tory Lanez after he was convicted last year of shooting Megan Thee Stallion, arguing he behaved with “indifference for human life” at a moment when Megan was “particularly vulnerable.”
Following his December conviction on three felony counts, Lanez (real name Daystar Peterson) faces a maximum of 22 years when he’s sentenced next month. But California law only allows courts to impose such “higher term” sentences when prosecutors have proven there are “aggravating circumstances.”
In a new filing on Tuesday (May 23) obtained by Billboard, attorneys for the Los Angeles District Attorney’s office said Lanez’s conduct clearly met those circumstances. Among other things, they said Lanez had fired the gun not just at Megan one time, but five times “in the middle of a residential neighborhood.”
“The brazenness of defendant’s conduct is alarming but the conscious disregard for the well-being and safety of all those around him signifies a high degree of indifference for human life,” prosecutors wrote.
The filing also said Megan had been “particularly vulnerable” at the moment of the crime, another factor that can serve as aggravating circumstances. She had been “unarmed and completely defenseless,” they wrote, while “dressed in only a bikini, shoeless and on foot in a neighborhood completely foreign to her.”
“As she walked away from defendant, unaware he was armed with a firearm, defendant fired multiple rounds at victim striking her bare feet,” the filing said. “She was afforded no opportunity and was in no position to defend herself, find cover, or shield herself in any way. Besides an argument in the car, there was no justifiable provocation or event that would have signaled to her that defendant would have fired a gun at her, not just once but five times.”
Attorneys for Lanez did not immediately return a request for comment on the new filing.
Lanez was convicted on Dec. 23 on three felony charges over the mid-2020 incident, during which the rapper allegedly shot Megan (real name Megan Pete) in the foot during an argument after a pool party in the Hollywood Hills.
The shooting happened in the early-morning hours of July 12, 2020, when a driver was shuttling Lanez, Megan and her assistant and friend Kelsey Harris from a party at Kylie Jenner’s house. According to prosecutors, Megan got out of the vehicle during an argument and began walking away when Lanez shouted “Dance, bitch!” and proceeded to shoot at her feet.
Following the incident, Megan initially told police officers that she had cut her foot stepping on broken glass, but days later alleged that she had been shot. Lanez was eventually charged with the shooting in October 2022.
During the blockbuster trial, Lanez’s lawyers made their best effort to sow doubt over who had pulled the trigger, painting a scenario in which Harris could have been the shooter. But a key defense witness offered confusing eyewitness testimony, and prosecutors pointed to an earlier interview in which Harris pinned the blame squarely on Lanez. Megan herself offered powerful testimony that Lanez had been the one to shoot her; neither Lanez nor the driver took the witness stand.
Following the guilty verdict, Lanez’s attorneys filed a motion seeking a new trial. They called the case a “miscarriage of justice,” arguing that Judge David Herriford made numerous errors that had put their client at an unfair advantage.
But that motion was denied last month, clearing the way for sentencing. A hearing is currently set for June 13, but such scheduled events have often been pushed back in Lanez’s case.
South Korea-based music and entertainment company HYBE signed a music distribution deal with Tencent Music Entertainment this week, according to media reports. Reuters, citing an article by the Seoul Economic Daily, reported Tuesday (May 23) that the agreement allows music by BTS, TOMORROW X TOGETHER and other HYBE artists to be streamed on Tencent Music’s platforms. […]
Fans buying tickets to upcoming Wu-Tang Clan and De La Soul tours now have easy access to custom messages from the RZA, the GZA and other members of each outfit via a new partnership between Ticketmaster and HiNOTE. The ticketing giant has partnered with the platform, which allows fans to request custom videos from artists […]
Fetty Wap was sentenced to six years in federal prison Wednesday after pleading guilty last year to federal drug charges.
Attorneys for the “Trap Queen” star (real name Willie Junior Maxwell II) had urged the judge to issue only a five-year sentence, the minimum allowed under the law. Prosecutors instead asked for between seven and nine years, urging the judge to “send a message” against a star who used his music to “glamorize the drug trade.”
At a hearing Wednesday in Long Island federal court, Judge Joanna Seybert split the difference – ordering the rapper to serve a six-year sentence, to be followed by an additional five years of post-release supervision.
An attorney for Fetty did not immediately return a request for comment. A spokesman for the U.S. Attorney’s Office confirmed the sentence but declined to comment further.
Fetty Wap was arrested in October 2021 at Rolling Loud New York, after prosecutors unveiled an indictment against him and five others. Prosecutors claimed group had shipped more than 100 kilograms of the drugs from California and distributed them on Long Island, contributing to “the addiction and overdose epidemic we have seen time and time again tear people’s lives apart.”
In August, Fetty admitted to participating in the scheme, pleading guilty to a single charge of conspiring to distribute at least 500 grams of cocaine.
Ahead of Wednesday’s sentencing hearing, his lawyers pleaded for leniency, saying he “realizes the terrible mistake he made” and is “truly sorry for the loss and hurt he has caused.” Seeking the minimum of five years, they argued that Fetty only turned to crime to support family members as his touring income dried up during the COVID-19 pandemic.
“Personal gain was not his motivation,” they wrote. “Rather, he was motivated by his commitment to financially support others.”
But prosecutors quickly fired back with a darker story: Of a successful musician who had already earned millions but chose to “supplement his income” by selling “drugs he knew would ruin lives.” And notably, they cited Fetty’s music itself, claiming he should receive a harsher punishment in part because he used his songs to “glamorize the drug trade.”
“Before his arrest, the defendant became famous singing about his experience cooking crack cocaine, selling drugs and making substantial money from those illegal endeavors,” prosecutors wrote. “Young people who admire the defendant and are considering selling drugs need to be sent a message.”
Such references to rap lyrics in criminal cases has come under scrutiny in recent years. Critics say drugs and violence are stock elements of hip-hop and should not be treated literally — and that by doing so, prosecutors infringe on free speech and sway courts with unfair evidence, with predictably disproportionate harm inflicted on Black artists.
The Gap is suing Kanye West over allegations that the rapper made unapproved changes to a Los Angeles retail location that resulted in an expensive lawsuit from the building’s owner.
In a complaint filed last month in Los Angeles court, the apparel giant claimed that West – and not Gap – is on the hook for a lawsuit filed last year by a company called Art City Center, the landlord who owns the retail space.
“Defendants made numerous alterations to the building at the subject premises without Gap’s approval, much less pursuant to the terms of the Agreement,” Gap’s lawyers wrote in an April 2 complaint. “The performance of the work not only breached the Strategic Agreement, but the manner of preparing for and performing the work caused the need for … repairs and restoration.”
Gap is one of many former business partners that split with West (sometimes known as Ye) and his Yeezy brand last year in the wake of antisemitic statements and other erratic behavior. The breakup was a particularly stark reversal, coming just a year after Gap announced a 10-year deal with West for a branded line called “Yeezy Gap.”
As part of that partnership, Gap agreed to open up to five retail locations for the Yeezy partnership, including one at 1360 East 6th Street in Los Angeles – the property owned by Art City Center.
In October, the landlord filed a lawsuit against Gap, claiming that the company had breached its lease agreement by making “numerous, significant, unapproved modifications” to the building. They included adding a ramp and a tunnel to the parking lot, removing three bathrooms, and removing lights that “led to additional damage to the ceiling and roof caused by water/rain.”
The company claimed that Gap owed $822,924 and counting in “holdover” damages – 150 percent of monthly rent for every month in which the building has original condition – and another $470,350 from the work that would be required to undo the alleged damage.
In its new complaint against West, Gap says the terms of their agreement require him indemnify the company against such legal claims.
“The Gap denies that it has any liability to [Art City],” the company wrote. “However, if the Gap does have any such liability, any damages allegedly sustained by plaintiff, if any, were the result of the actions or inactions of [West and Yeezy].”
West could not immediately be located for comment.
Gap is not the only former Kanye business partner now facing legal problems. Last month, Adidas was hit with a class action lawsuit claiming the sportswear giant knew about West‘s problematic “personal behavior” years prior to ending its partnership with the disgraced rapper but failed to warn investors about it. That case is pending.
SeatGeek executives were scrambling to recover from an unforced error earlier this month when two discount codes leaked on social media granting users $500 discounts on the secondary ticketing marketplace. After about a half-hour of frenzied buying, the ticket resale site was forced to cancel thousands of sales and cover costs incurred by untold numbers of brokers.
The source of those troublesome codes? SeatGeek created the codes for a business conference for Major League Baseball box office managers and ticketing staff, sources tell Billboard — three months after SeatGeek signed a reported $100 million, five-year deal to take over from rival StubHub as the league’s official ticket reseller.
The $500 discount codes — “MLB1” and “MLB2” — were originally given out as prizes for a team building exercise during the event on May 3 at Globe Life Stadium in Arlington, Texas, home to the Texas Rangers. Known to most in the sports ticketing industry as the Baseball Ticketing and Marketing Meetings, the summit is a typically low key affair where baseball ticketing staff come together to network, share ideas and meet with league vendors. SeatGeek representatives were present at the meeting to discuss their new agreement with the league, according to multiple sources. The two discount codes did not include any expiration date or limit on how many times they could be used.
Nine days after the summit, the codes leaked onto the internet and quickly spread across social media. The first instance of the code sharing on Twitter on May 12 at 11:29 p.m. EST appears to have come from an account linked to a sports gambler named Drew Morgan, writing, “I just got 2 tickets to 2 different Steelers games 100% free on SeatGeek. Sounds too good to be true but there was zero catch at all.”
Holy shit I just got 2 tickets to 2 different Steelers games 100% free on Seat Geek. Sounds too good to be true but there was zero catch at all 🤯Use codes MLB1 or MLB2 for a $500 discount on the tickets. I have no incentive at all to promote this. My friend told me about… pic.twitter.com/8G6ELGHPkn— Drew Morgan (@DMProps) May 13, 2023
Three minutes later, an account calling itself “Lord Restock” with 168,000 followers posted the codes, kicking off a frenzy of fans using the codes to buy tickets to sporting events, SZA concerts and more.
Around midnight, SeatGeek staff noticed the frenzied use of the $500 discount code and took the SeatGeek site offline to investigate what was happening. The site remained offline for several hours before the issue with the codes was identified and the codes were deactivated.
A SeatGeek spokesperson declined to comment on specifics about the code leaks, but told Billboard in a statement, “Last week, some fans made purchases on our site using an ineligible promo code that was wrongfully distributed without authorization. Tickets acquired via these purchases are not valid and we are working to resolve each situation accordingly.”
Officials with Major League Baseball did not respond to Billboard’s inquiries about the SeatGeek ticket codes and how they leaked online.
In the days following, SeatGeek staff began contacting ticket sellers on the site, laying out plans to cancel any transactions that used the leaked discount codes, refund any money that was spent in transactions using the codes and claw back any tickets possible before they reached fans.
“At this stage, we have been able to contain the impact to SeatGeek, but that came at the cost of an operational burden that you have all helped us to shoulder,” company co-founder Russ D’Souza wrote in an email to ticket broker Randall Smith, CEO of America’s Top Tix, and obtained by Billboard.
SeatGeek operates as both a primary ticketing site for a number of sports teams, as well as a massive secondary ticketing site where tens of thousands of brokers list tickets for resale for concerts, sporting events and festivals. The company implemented a triage system to respond to the code leak, where sales made for teams that use the SeatGeek ticketing system could easily be canceled and reversed. Sales for tickets that haven’t been delivered yet will also be canceled.
Tickets originally issued by rival companies like Ticketmaster, however, were more difficult to claw back. While Ticketmaster technology does allow resellers to digitally transfer tickets from seller to buyer – a process SeatGeek can automate to occur immediately after a sale on its site is made – it can’t transfer the ticket back to the seller if an error is discovered. Because of this, SeatGeek is now covering any losses incurred by brokers who now must reselling tickets issued by Ticketmaster and other services.
As a result, dozens and maybe hundreds of fans who received Ticketmaster-issued tickets using the SeatGeek discount code are now in possession of tickets that can’t be canceled. Since the code was discovered and taken down, many of these fans have taken to Twitter asking other fans if they think the tickets are still valid.
Brokers on the site are also angry, saying SeatGeek took too long to respond to the crisis and should have to pay the same 100% fine it charges its own sellers when customer service mistakes are made.
“If a broker makes an error and cancels an order, they are penalized. If the exchange that dings you makes an error, they unilaterally effectuate a mutual cancelation without consent of the broker,” one reseller wrote on a forum for brokers. “It is a totally one-sided relationship, and I really hope customers, brokers, or both bring a well-deserved class action against SG.”
SeatGeek is the second largest ticket resale site in the United States and last year raised $238 million in Series E funding. A recently abandoned effort to take the company public valued it at $1.35 billion.