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Jimmie Allen is fighting back against a pair of lawsuits filed this spring that accused the country star of sexual assault, denying all the allegations and countersuing both women — claiming that one of them defamed him and that the other illegally swiped his cellphone.
In documents filed Thursday (July 13) in Nashville federal court, Allen, 38, lodged his first formal responses to the two abuse lawsuits, which have seen the once-rising country star dropped from his label and removed from festival lineups. The first case claims he repeatedly assaulted an unnamed “Jane Doe” on his management team; the second claims he assaulted another woman in a Las Vegas hotel room and secretly recorded it.
Allen’s lawyers went beyond simply denying those allegations in Thursday’s filings, bringing a countersuit against each accuser and seeking unspecified monetary damages. In the case of Allen’s former day-to-day manager, the attorneys claim that she defamed him by making “deliberate, intentional, malicious, and willful” statements to Variety beyond what is included in the lawsuit. Variety broke the news of her lawsuit in early May.
“Throughout the Variety article, Jane Doe made several untruthful statements which painted Allen and Doe’s consensual affair as nonconsensual sexual misconduct,” his lawyers claim. “Allen’s reputation and relationships within the entertainment industry have also been severely damaged as a result Jane Doe’s statements in the Variety article.”
(Variety, which is owned by the same parent company as Billboard, is not named as a defendant or accused of any wrongdoing.)
In responding to the second lawsuit, in which the woman claims that Allen surreptitiously filmed their sexual encounter, his lawyers say that she had explicitly consented to the recording — and that she then unfairly took his phone with her when she left the hotel. In technical terms, they accuse her of “conversion,” a civil tort similar to theft that involves someone taking property that doesn’t belong to them.
“By taking his camera phone without permission, Jane Doe 2 wrongfully exerted a distinct act of dominion over Allen’s personal property,” his lawyers write.
The attorney representing both of Allen’s Jane Doe accusers, Elizabeth Fegan of the law firm Fegan Scott, did not immediately return a request for comment on Thursday morning.
In a statement, Allen tells Billboard that he has “engaged with a legal team to proceed with an appropriate course of action,” saying he has done so in order to “protect my reputation and refute these claims that have caused severe damage to my family, mental health, and business.”
“As the son and brother of rape victims, and the father of daughters, these false claims are extremely hurtful to me and everyone around me,” Allen said. “These false allegations have caused me to lose a vast number of business and endorsement opportunities that I worked extremely hard for. These false allegations have also not only harmed me, but have caused severe financial damage to my band, my team, and their families.”
A Rapid Fall
In the wake of the two lawsuits, Allen’s once-flourishing career has cratered.
After signing with BMG’s Stony Creek/BBR imprint in 2017, Allen’s first two singles, “Best Shot” and “Make Me Want To,” reached No. 1 on Billboard’s Country Airplay chart, while he scored a third No. 1 in 2021 with “Freedom Was a Highway” (with Brad Paisley). “Down Home,” the first single from his 2022 album, Tulip Drive, reached No. 2. He also performed for Garth Brooks at the superstar’s Kennedy Center Honors induction in 2021, and with Elton John on the legend’s 2021 album The Lockdown Sessions.
But following the accusations, his label, booking agency (UTA), former publicist (Full Coverage Communications) and management company (The Familie) have all suspended or dropped him. His live appearances have also dried up, including a June 11 performance during CMA Fest and several other summer festival gigs.
In addition to the career fallout, Allen has also separated from his wife, Alexis Gale, who is pregnant with their third child. The couple announced the news on social media, just weeks before the first lawsuit was filed and the accusations were made public.
That first case, filed on May 11, alleged that Allen had “manipulated and used his power” over the plaintiff, who was employed by his then-management company Wide Open Management, in order to “sexually harass and abuse her” over a period of 18 months from 2020 to 2022.
“Plaintiff expressed in words and actions that Jimmie Allen’s conduct was unwelcome, including pushing him away, sitting where he could not reach her, telling him she was uncomfortable and no, and crying uncontrollably,” the woman’s lawyers wrote in the complaint. “However, Allen made clear that plaintiff’s job was dependent on her staying silent about his conduct.”
Allen Responds
In Thursday’s response to those claims, Allen tells a different story — one of “a consensual sexual relationship” in which encounters were “initiated by both Allen and Doe,” an affair that he says he ended in the fall of 2022 to “focus on repairing his relationship with his wife.” He says the first time he heard any claim about “improper conduct” was in November 2022, when he was contacted by her attorney.
In counter-suing for defamation, Allen’s lawyers focus on Doe’s statements made to Variety rather than the actual claims in her lawsuit — likely because it’s harder to bring such claims over statements made as part of a judicial proceeding. The article, Allen says, contained “several pieces of information that were not included in her complaint,” as well as statements that “disparaged” him, including calling him a “threat.”
“The statements … caused great damage to Allen, including impairment of his reputation and standing in the community, personal humiliation, and mental anguish and suffering,” his lawyers write. In technical terms, they also accuse Doe of invasion of privacy, inflicting emotional distress, and interference with business relations.
The second case against Allen, filed on June 9, was brought by a woman identified as Jane Doe 2, who accused him of battery, assault and other wrongdoing over a July 2022 incident at the Cosmopolitan Hotel in Las Vegas. Though she had “willingly joined Allen in the bedroom,” she claimed she had “repeatedly told him she did not want him to ejaculate inside her” because she was not on birth control, but that Allen had done so anyway.
The June lawsuit also claimed that, after the sexual encounter, Doe 2 discovered a cell phone in a closet of the hotel room, “focused on the bed, recording the scene.” She alleged that she had “not consented to being recorded” and that, after failing to convince Allen to allow her to unlock the phone to delete the recordings, she had taken it with her and later passed it along to the Las Vegas Police Department.
In his response to that lawsuit on Thursday, Allen admits to having “unprotected sex” with Doe, but claims that he “did not ejaculate during the encounter.” He also acknowledged recording the incident but, crucially, alleges that he secured her explicit permission to do so while the pair kissed on a hotel balcony.
“Before the encounter escalated further, Allen asked Jane Doe 2 if it was OK for him to set up his camera phone to record their encounter. Jane Doe 2 agreed,” Allen’s lawyers wrote of the incident. “Allen left the balcony and set up his camera phone in plain view at the foot of the bed. Allen and Jane Doe 2 began to engage in a consensual sexual encounter in view of the camera phone.”
When he awoke to find that Doe 2 had “left the hotel room with his camera phone,” Allen claims that he texted her, to which she allegedly responded that she “did not approve of him recording their encounter.” When she “demanded the passcode to Allen’s camera phone” so that she could further delete the recording, he says he declined to offer it because the phone “contained several pieces of confidential personal and business information.” He says he offered to “delete the video to her satisfaction” if she returned the phone, but that she did not do so.
“Allen still does not have possession of the camera phone,” his lawyers write.
(When the second case was filed in June, a spokesperson for the Las Vegas Metropolitan Police Department [LVMPD] confirmed to Billboard that “a report was completed” over the incident, but did not provide any additional information. A request for any public records linked to the report was unsuccessful.)
Former Manager Wants Out
Allen wasn’t the only defendant to file his response to the abuse lawsuits this week. On Tuesday, his former management company Wide Open Music filed a motion seeking to be dismissed from the first case, which claimed the company did not do enough to protect Allen’s day-to-day manager from his abusive behavior and had then fired her when she complained about it.
In its response, attorneys for Wide Open Music (which parted with Allen in October 2022) expressed dismay at the woman’s allegations about Allen’s conduct, but said the company itself could not be held legally responsible.
“Undoubtedly, if the actions she claims Allen took against her actually occurred, they are deplorable and clearly inappropriate,” the company’s lawyers wrote. “Despite the nature of the allegations, however, Plaintiff has not stated any plausible claims … that [Wide Open Music] should be held liable, either for its client’s misconduct or independently of it.”
Following this week’s new filings, the Jane Doe plaintiffs will file their own responses in the months ahead, both to Allen’s new accusations and to Wide Open Music’s motion to be dismissed from the case. The case will then head toward more litigation and an eventual jury trial, but it could be years before such a courtroom showdown is reached.
In his statement Thursday, Allen seemed intent on getting to such a trial: “As the legal process runs its course, I look forward to the opportunity to clear my name.”
Stories about sexual assault allegations can be traumatizing for survivors of sexual assault. If you or anyone you know needs support, you can reach out to the Rape, Abuse & Incest National Network (RAINN). The organization provides free, confidential support to sexual assault victims. Call RAINN’s National Sexual Assault Hotline (800.656.HOPE) or visit the anti-sexual violence organization’s website for more information.
Merck Mercuriadis‘ publicly-traded Hipgnosis Songs Fund Ltd reported a gross revenue decline for its fiscal year ended in March due to one-time charges and a tough year-ago comparison, but said adjusted revenues in 2022 grew on strong growth in streaming revenues and the return of live performances.
Gross revenues for Hipgnosis Songs Fund declined by 11.5% to $177.3 million for the year ending March 2023 compared to the year-ago period, mainly due to two large, non-recurring adjustments related to usage accrual and other factors. Net revenues also declined to $147.2 million from $168.3 million a year ago.
Stripping out those one-time items and taking into consideration a $16.1 million benefit Hipgnosis expects to gain from the CRB III retroactive accrual, the fund’s underlying revenues rose $12.9 million, chief financial officer Chris Helms said during an investor presentation discussing the results.
The fund’s pro-forma annual revenue (PFAR), which reflects revenue earned from royalty statements and strips out impacts from new catalog acquisitions and one-time items — the metric executives say best reflects the fund’s revenue performance — rose by 12.1% to $130.2 million for the year ending December 2022, rising strongly for catalogs aged younger and older than 10 years.
Overall, streaming income rose 14.8% to generate $52.1 million for the fund, while syncronization income rose 24.7% to make up $19.4 million and performance income rose 9% to $30.8 million, all compared to the year ago period. Mechanical income edged 2% lower to 4.9 million, while digital downloads made up $2.5 million and other publishing income comprised $3.9 million of revenues.
The fair value of the fund’s portfolio rose 4% to $2.8 billion, and the operative net asset value broken down by share price rose 3.6% to $1.9153, driven by revenue exceeding the fund’s independent valuer’s forecast.
Nonetheless, Hipgnosis Songs Fund’s operative EPS for the period is negative 7.41 cents, and adjusted earnings per share is 4.12 cents, down nearly 43% compared to the year leading up to March 2022.
Mercuriadis said this was the company’s “best revenue performance since coming to market in 2018,” reflecting the fund’s high-quality catalog and active song management.
“The songs in our portfolio we’ve bought carefully and we’ve bought well,” Mercuriadis said during the investor presentation. “We have a relatively small portfolio with a very high rate of success. We optimize revenues and collect them as efficiently and cost-effectively as we can.”
Mercuriadis pointed to major synch wins Hipgnosis had from four songs Rihanna sang during the SuperBowl Halftime Show, including “Birthday Cake,” “All of the Lights,” and “Umbrella,” which Hipgnosis from its acquisition of rights held by The-Dream, J eff Bhasker and Tricky Stewart. Other major placements included some on The Masked Singer, where Bon Jovi’s Richie Sambora performed Fleetwood Mac’s “Go Your Own Way” and “Brass In Pocket” by The Pretenders.
Billboard and The Financial Times reported on Wednesday that Hipgnosis has selectively shopped around a portfolio of non-core assets, possibly with the aim of raising money to buy back shares and shore up the fund’s stock price.
Mercuriadis declined to comment on whether a portfolio was being shopped or what assets it could contain, saying the fund is exploring its options with shareholders and the board.
The fund’s adjusted operating costs were 21.2% lower for the period to $29.5 million, due to lower advisory fees “as a function of the company’s lower share price during the year,” reduced administration, legal and professional fees, and lower aborted deal costs, the CFO Helms said.
The company also recognized a $43.8 million catalog performance provision or bonus relating to 6 catalogs. The provision will be paid out contingent on performance hurdles being met by the catalogs, Helms said, declining to detail the targets, which were detailed in the acquisition agreements.
Here are the key points from HSF’s disclosure:
Gross revenues declined by 11.5% to 177.3 million for the year ending March 2023 compared to 2022, due to two large, one-off adjustments. Stripping out those two non-recurring costs, underlying revenues rose by 10.9%.
PFAR rose 12.1% to $130.2 million.
Hipgnosis operative net asset value per share rose 3.6% $1.9153
Syncronization revenues rose 24.7% to 19.4 million.
Streaming revenues rose 14.8% to 52.1 million
Performance income increased by 9% to 30.8 million
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Universal Music Group general counsel/executive vp of business and legal affairs, Jeffery Harleston, spoke as a witness in a Senate Judiciary Committee hearing on AI and copyright on Wednesday (July 12) to represent the music industry. In his remarks, the executive called for a “federal right of publicity” — the state-by-state right that protects artists’ likenesses, names, and voices — as well as for “visibility into AI training data” and for “AI-generated content to be labeled as such.”
Harleston was joined by other witnesses including Karla Ortiz, a conceptual artist and illustrator who is waging a class action lawsuit against Stability AI; Matthew Sag, professor of artificial intelligence at Emory University School of Law; Dana Rao, executive vp/general counsel at Adobe; and Ben Brooks, head of public policy at Stability AI.
“I’d like to make four key points to you today,” Harleston began. “First, copyright, artists, and human creativity must be protected. Art and human creativity are central to our identity.” He clarified that AI is not necessarily always an enemy to artists, and can be used in “service” to them as well. “If I leave you with one message today, it is this: AI in the service of artists and creativity can be a very, very good thing. But AI that uses, or, worse yet, appropriates the work of these artists and creators and their creative expression, their name, their image, their likeness, their voice, without authorization, without consent, simply is not a good thing,” he said.
Second, he noted the challenges that generative AI poses to copyright. In written testimony, he noted the concern of “AI-generated music being used to generate fraudulent plays on streaming services, siphoning income from human creators.” And while testifying at the hearing, he added, “At Universal, we are the stewards of tens of thousands, if not hundreds of thousands, of copyrighted creative works from our songwriters and artists, and they’ve entrusted us to honor, value and protect them. Today, they are being used to train generative AI systems without authorization. This irresponsible AI is violative of copyright law and completely unnecessary.”
Training is one of the most contentious areas of generative AI for the music industry. In order to get an AI model to learn how to generate a human voice, a drum beat or lyrics, the AI model will train itself on up to billions of data points. Often this data contains copyrighted material, like sound recordings, without the owner’s knowledge or compensation. And while many believe this should be considered a form of copyright infringement, the legality of using copyrighted works as training data is still being determined in the United States and other countries.
The topic is also the source of Ortiz’s class action lawsuit against Stability AI. Her complaint, filed in California federal court along with two other visual artists, alleges that the “new” images generated by Stability AI’s Stable Diffusion model used their art “without the consent of the artists and without compensating any of those artists,” which they feel makes any resulting generation from the AI model a “derivative work.”
In his spoken testimony, Harleston pointed to today’s “robust digital marketplace” — including social media sites, apps and more — in which “thousands of responsible companies properly obtained the rights they need to operate. There is no reason that the same rules should not apply equally to AI companies.”
Third, he reiterated that “AI can be used responsibly…just like other technologies before.” Among his examples of positive uses of AI, he pointed to Lee Hyun [aka MIDNATT], a K-pop artist distributed by UMG who used generative AI to simultaneously release the same single in six languages using his voice on the same day. “The generative AI tool extended the artist’s creative intent and expression with his consent to new markets and fans instantly,” Harleston said. “In this case, consent is the key,” he continued, echoing Ortiz’s complaint.
While making his final point, Harleston urged Congress to act in several ways — including by enacting a federal right of publicity. Currently, rights of publicity vary widely state by state, and many states’ versions include limitations, including less protection for some artists after their deaths.
The shortcomings of this state-by-state system were highlighted when an anonymous internet user called Ghostwriter posted a song — apparently using AI to mimic the voices of Drake and The Weeknd –called “Heart On My Sleeve.” The track’s uncanny rendering of the two major stars immediately went viral, urging the music business to confront the new, fast-developing concern of AI voice impersonation.
A month later, sources told Billboard that the three major label groups — UMG, Warner Music Group and Sony Music — have been in talks with the big music streaming services to allow them to cite “right of publicity” violations as a reason to take down songs with AI vocals. Removing songs based on right of publicity violations is not required by law, so the streamers’ reception to the idea appears to be voluntary.
“Deep fakes, and/or unauthorized recordings or visuals of artists generated by AI, can lead to consumer confusion, unfair competition against the artists that actually were the original creator, market dilution and damage to the artists’ reputation or potentially irreparably harming their career. An artist’s voice is often the most valuable part of their livelihood and public persona. And to steal it, no matter the means, is wrong,” said Harleston.
In his written testimony, Harleston went deeper, stating UMG’s position that “AI generated, mimicked vocals trained on vocal recordings from our copyrighted recordings go beyond Right of Publicity violations… copyright law has clearly been violated.” Many AI voice uses circulating the internet involve users mashing up one previously released song topped with a different artist’s voice. These types of uses, Harleston wrote, mean “there are likely multiple infringements occurring.”
Harleston added that “visibility into AI training data is also needed. If the data on AI training is not transparent, the potential for a healthy marketplace will be stymied as information on infringing content will be largely inaccessible to individual creators.”
Another witness at the hearing raised the idea of an “opt-out” system so that artists who do not wish to be part of an AI’s training data set will have the option of removing themselves. Already, Spawning, a music-tech start-up, has launched a website to put this possible remedy into practice for visual art. Called “HaveIBeenTrained.com,’ the service helps creators opt-out of training data sets commonly used by an array of AI companies, including Stability AI, which previously agreed to honor the HaveIBeenTrained.com opt-outs.
Harleston, however, said he did not believe opt-outs are enough. “It will be hard to opt out if you don’t know what’s been opted in,” he said. Spawning co-founder Mat Dryhurst previously told Billboard that HaveIBeenTrained.com is working on an opt-in tool, though this product has yet to be released.
Finally, Harleston urged Congress to label AI-generated content. “Consumers deserve to know exactly what they’re getting,” he said.
A flurry of senior executives and staff members have left posts at Hipgnosis Song Management in recent months, as the company credited with popularizing songs as an asset class explored selling assets to shore up investor confidence ahead of a key vote this fall.
Since March, employees including Hipgnosis’ chief music officer Ted Cockle, along with the global heads of sync operations and song management and an executive vp of digital and innovation, have announced plans to leave the company, according to posts employees shared on LinkedIn and a statement from Hipgnosis.
The staff turnover comes as sources say the roughly 5-year-old Hipgnosis Songs Fund Ltd. has been shopping a package of assets that it apparently hopes to sell before its first continuation vote, where investors will be asked to decide whether the publicly traded trust should continue to operate under the management of founder Merck Mercuriadis or liquidate all assets.
SONG, the fund’s ticker on the London Stock Exchange, is down about 14% year to date and down 28% since it went public in July 2018. The stock was worth 0.75 British pounds ($0.97) on Wednesday (July 12).
At that price, SONG is worth less than half of its $2.2 billion operative net asset value, a discount that sources say has prompted Mercuriadis to explore selling some of the fund’s non-core assets.
For months, analysts at Jefferies and other investment banks have called on Hipgnosis to sell some of the fund’s non-core songs to raise cash to shore up the share price. The Financial Times reported Wednesday (Juy 12) that some Hipgnosis Songs Fund investors also want the fund to sell non-core assets to generate cash for buying back stock.
In addition to providing the fund’s managers with an arbitrage opportunity to boost the stock price, it could leave the company with enough extra cash to issue shareholders a special dividend — a sweetener issued ahead of the fund’s continuation vote at its next annual meeting in September.
If investors vote not to continue with the fund and to liquidate its assets, Mercuriadis and Hipgnosis Song Management — which is majority owned by private equity firm Blackstone — would likely have the right to bid on the assets in the fund; or if it goes up for auction, Mercuriadis, with Blackstone, likely has matching rights. Sources speculate that Mercuriadis and Blackstone would want to buy back the portfolio’s most iconic music assets, minus the non-core assets — the package of assets that has been selectively shopped around and which sources say includes copyrights from The-Dream and The Outfield — for their private, Blackstone-backed fund, Hipgnosis Songs Capital.
Hipgnosis Songs Fund will report results for the year ending March 31 on Thursday. In December, the company reported a 7.5% rise in revenues amid a “challenging environment” that “fundamentally undervalues the company,” founder Mercuriadis said during a shareholder meeting discussing the results.
On Wednesday, Hipgnosis announced Cockle, its chief music officer will be leaving the company. A former Universal Music Group executive known for nurturing the careers of Scottish superstar Lewis Capaldi, Bastille, Emeli Sandé and others, Cockle joined Hipgnosis Songs in 2020 as president.
“Given our decision to focus our marketing in the US, Ted Cockle, our Chief Music Officer, will not be moving long term with the Company,” Mercuriadis said in a press release. “He’ll work on the transition to America over the coming weeks. I would like to thank Ted for all he has done for Hipgnosis and I hope there will be opportunities for Ted and Hipgnosis to work together again in the future.”
Last week, Tom Stingemore, Hipgnosis Song Management’s global president of sync & creative, wrote on LinkedIn he was leaving the company after joining in 2021 to build its sync and creative operation. Hipgnosis’ synch team has played a key role in getting the songs that it acquires to generate more money than the often-high price Hipgnosis paid for them, and the team has been successful. In December, Hipgnosis Songs Fund reported sync revenues for the first half of the company’s reporting year rose 32% to 9.78 million compared to $7.41 million a year ago.
“As the division is now fully up & running, my mission is complete,” Stingemore wrote, adding that he may “go & do it all over again” as he works to “plot my next adventure.”
Cockle and Stingemore’s departures follows several other senior staff members. In late May, Nick Jarjour announced on LinkedIn he had left his role as global head of song management at Hipgnosis Songs Fund (a source who declined to speak on the record says his departure occurred six months ago); and in March, Tony Barnes’ announced he would be leaving his role as executive vp of digital & innovation at Hipgnosis Songs Fund in the coming months to lead the metaverse gaming company he co-founded, Karta. Barnes is currently still employed by Hipgnosis.
Stingemore, Jarjour and Barnes did not respond to requests for comment for this story.
Hipgnosis continues to hire, announcing two new hires in Hipgnosis Song Management, a separate company from the publicly traded fund, on Wednesday.
Danny Bennett, son of iconic singer Tony Bennett, joined as executive vp leading global marketing and audience development. Bennett joined Hipgnosis from the Verve Label Group, a Universal Music Group company, where he was chief executive officer.
Sara Lord was hired as executive vp content creation from Concord Music, and Patrick Joest, who joined Hipgnosis in 2021, was promoted to the role of head of synchronisation.
In the press release announcing the hires, Mercuriadis said Hipgnosis has continuously invested in new hires and upgrading systems over the past 18 months.
“These appointments demonstrate our commitment to investing in our capabilities and team in order to grow the value of our catalogues, and, most importantly, bring our songs to new audiences around the world,” Mercuriadis said.
Continuation Vote
At Hipgnosis Songs Fund’s annual meeting in September, Mercuriadis’s young company will face one of its biggest tests yet.
In the United Kingdom, publicly traded trusts are required to hold regular continuation votes, where shareholders vote on whether an investment trust should continue in its current form. At this continuation vote, shareholders can choose to stay the course, change managers or liquidate the fund.
Analysts at the investment bank Jefferies issuesd a buy rating on SONG last month, upgrading from their previous “hold” rating, because they said they believe Hipgnosis may sell some non-core assets from its catalog, which would provide a catalyst to narrow its current discount to net asset value ahead of the vote.
However, the continuation vote comes at an inopportune time, only a couple months after Hipgnosis Song Management and Mercuriadis were publicly rebuked by Rod Stewart, who said he called off a deal to sell some his music assets to the company.
In an unusual move, Stewart issued a statement that said, “It’s become abundantly clear after much time and due diligence that this was not the right company to manage my song catalog, career or legacy.”
Additional reporting by Ed Christman
In the first half of 2023, an average of 112,000 new tracks were added daily to digital service providers such as Spotify and Apple Music, Luminate revealed in its 2023 midyear report Wednesday (July 12). That’s an increase of 19.9% from the 93,400 new tracks uploaded daily to digital platforms in the first half of 2022.
At the current rate, digital services will add around 41 million tracks this year, about 7 million more than the 34.1 million tracks added in 2022 and more than double the 16.4 million tracks added in 2018.
The flood of tracks did not bring a commensurate increase in listening, however. While the number of tracks uploaded to digital platforms grew 19.9%, audio on-demand streaming rose only 13.5%. That disconnect between supply and on-demand streams is not unusual. In 2022, on-demand streams increased 12.2% while average daily new tracks grew 12%. But in 2021, on-demand streams grew 9.9% while average daily new tracks grew 18%.
Low barriers to recording and distributing digital music give unknown artists a chance to compete against established, big-budget releases. Major labels — some of whom, like Universal Music Group, have endorsed a system that rewards their music with better royalty payouts — accounted for just 3.3% of new tracks added to digital platforms through June 30. Streaming services are filled with music not just from independent labels — who may be distributed by companies owned by the majors — but also independent musicians, bedroom producers using inexpensive digital audio workstations and a variety of “functional music,” a term used for generic music that often fills streaming playlists aimed at helping people sleep, relax or study.
The possibility that 112,000 new tracks per day will seem low in a few years is causing consternation in some quarters of the music business. A new generation of AI tools will further reduce the barriers to creating music. Just as generative AI programs such as Midjourney and DALL-E-2 create images based on text prompts, AI will instantly create songs without the need for musical expertise or technical ability. “We see a huge market with many billions of original unique songs, similar to photos,” Alex Mitchell, CEO of AI music platform Boomy, told Billboard earlier this year. Such a scenario had previously prompted Universal Music Group CEO Lucian Grainge to warn against “a vast and unnavigable number of tracks” of “lower-quality functional content” created to game algorithms and “divert royalties.”
While independently released music and AI content chips away at major labels’ market shares, the majors continue to produce hits that stand out in an increasingly crowded field. The most popular albums and tracks fared well in the first half of 2023. The top 10 albums took a 2.49% share of equivalent album units (EAUs), up from 2.18% in the first half of 2022. That improvement can be chalked up to Morgan Wallen, whose album One Thing at a Time had 3.31 million EAUs — 67% greater than the No. 2 album, SZA’s SOS. Excluding the No. 1 albums from each half-year period, the remaining top 10 albums’ share of 1.88% in the first half of 2023 was almost equal to the 1.85% in the prior-year period.
Led by Wallen’s “Last Night” and SZA’s “Kill Bill,” the most popular tracks also increased their share of total streams. The top 10 tracks at the midway point of 2023 owned a 0.63% share of on-demand audio streams, well above their 0.5% share in the prior-year period.
Diego Gonzalez started making his own music in 2020, inspired in part by some of the tracks he loved from The Kid LAROI’s first album. “I was using GarageBand on my phone at the time,” he recalls. “I didn’t know what else to use.”
While killing time on TikTok, he came across posts from other artists praising BandLab, another free app that aims to make it easy for aspiring creators to create instrumental tracks and record vocals with a mobile phone. Gonzalez took to it quickly, especially the presets that add clarity and heft to a vocal. “You don’t need 1,000 buttons on there to make something sound good,” he says. With BandLab, he recorded his breakout hit, a mournful 6/8 ballad titled “You & I” that has more than 50 million Spotify streams.
For now, many of BandLab’s most successful users look outside the platform for beats. thekid.ACE, Luh Tyler and Gonzalez say they usually start by finding premade instrumentals on YouTube. “I’ll look up ‘indie-pop type beat’ or ‘R&B Daniel Caesar type beat,’ ” Gonzalez says. Then it’s a matter of seconds to download the right instrumental, open it in BandLab and “start thinking of random melodies,” explains thekid.ACE. He has made a pair of viral songs with BandLab, “Imperfect Girl” (7.3 million Spotify streams) and “Fun and Forget” (8.6 million).
Pop stars pay good money to vocal producers to adjust their pitch and stitch together the best parts of multiple takes. But BandLab lets users replicate a similar process with a few clicks, adding echo, toning down the “s” sounds and upping distortion. Built-in vocal preset options run from very specific — “Punchy Rap,” “Hype Vox” — to “let’s see what this does”: “70s Ballad,” “Sky Sound.” On top of that, “it’s insanely simple to make your own presets and adjust the reverb or the compressor,” thekid.ACE says. “Auto-Tune is super easy to do.”
SSJ Twiin, who has also enjoyed some viral success with BandLab tracks, recently started experimenting with a new panning feature that automatically throws his vocal from left to right. He’s also a fan of the harmony function that “takes your original vocal and layers it with that exact same vocal plus two semitones, another one plus four, another plus six and so on,” he says.
BandLab’s interface looks like a more cheery, streamlined version of a program like Pro Tools — each vocal or instrument track separated into a bright, clickable sound wave. “People will say BandLab is not a real [digital audio workstation],” SSJ Twiin notes. “But it’s getting to the point where there’s pretty much nothing you can’t do.”
Jacob Byrnes, director of creator relations and content strategy for the music strategy and tactics team at Universal Music Group, spends a good chunk of his day scrolling through TikTok. Last fall, he noticed a marked shift in the type of videos appearing on his For You page: “It all turned into screen captures of people playing productions they made on BandLab,” he says.
BandLab provides its 60 million-plus registered users, 40% of whom are women, with music-making software that includes an arsenal of virtual instruments, as well as the ability to automatically generate multipart vocal harmonies, record, sample and manipulate sound in myriad ways. It’s a toolbox that allows them to create professional-sounding recordings on their phones with surprising ease, transforming every civilian into a potential hit-maker. BandLab can also distribute music to streaming services, and it incorporates components of a social network: Musicians can create individual profiles, chat with one another, comment on their peers’ releases, solicit advice or break up a song into its component pieces and share those to crowdsource remixes.
The free app launched in 2016, but it has become almost inescapable over the last 12 months: 200 million videos tagged with #bandlab appeared on TikTok in April. The music industry has taken note of the ease with which users can make songs — “Labels love BandLab because it allows artists to create music for very cheap,” says one music attorney — and the velocity that some songs have picked up on streaming platforms. “There are random kids on there generating streams like crazy,” says Nima Nasseri, vp of A&R strategy at UMG. “Their monthly listeners are going from zero into the millions, and they’re doing it all from the palm of their hand.”
“It’s like other segments of the [music] internet that explode — one artist [broke] and now you’re seeing a ton of them go,” adds Jordan Weller, head of artist and investor relations at indify, a platform that helps independent acts find investors. “That’s what makes it attractive for the community. Now all of these other kids recognize that they can build careers off of BandLab — that it’s a potential pathway.”
The artists wielding BandLab are not stuck in one mode — Diego Gonzalez and d4vd enjoyed success with lovelorn ballads; Luh Tyler makes slippery, bass-heavy hip-hop; thekid.ACE favors breezy guitars; ThxSoMch trafficks in shades of post-punk. Several have landed record deals — Gonzalez with Island, d4vd with Darkroom/Interscope, Tyler with Motion Music/Atlantic, ThxSoMch with Elektra and thekid.ACE with APG — while d4vd and ThxSoMch have also landed on Billboard’s charts. (All are teenagers except ThxSoMch, an elder statesman of sorts at 21.) Other acts like SSJ Twiin and kurffew have picked up more than 15 million Spotify plays apiece while remaining independent.
Even BandLab’s CEO is surprised by this wave of breakthroughs. Meng Ru Kuok says he always hoped to have an artist chart with a song made on his platform, but “the fact that it already happened last year with d4vd” — whose “Romantic Homicide” peaked at No. 33 on the Billboard Hot 100 — “was ahead of schedule.”
When Meng co-founded BandLab, he wanted to capitalize on the technological shift “from a desktop ecosystem to a mobile one”; phones represented “a musical instrument in everybody’s pocket.” He also aimed to open up audio tools to the large swath of the global population that couldn’t afford iPhones, which came with another digital audio workstation, GarageBand. BandLab makes money by taking a cut for artist services like distribution and promotion.
Artists who favor BandLab say it is remarkably frictionless to cut a vocal and smear it with effects or whip up a loop. It also has an artificial intelligence-powered SongStarter function that can automatically generate musical ideas based on a few inputs, though none of the artists who spoke for this story use it. BandLab “is easier than GarageBand; everything is in front of your face,” says keltiey, whose racing, helium-addled “Need” has over 14 million streams on Spotify.
“The more convenient you make something, the more it is going to be adapted,” says Mike Caren, founder of the publisher and independent label APG and a producer. “I used to buy full recording studios for people — Pro Tools, interfaces, [$20,000] packages of equipment.” In contrast, BandLab is free and portable. “I encourage my artists to use the platform as a way to get down spontaneous vocal ideas,” Caren says. He thinks most artists still don’t fully understand how many different tools are available within BandLab’s suite of tech; Meng says that over 40% of users work with more than two “core creation features,” but he hopes to boost that number to 99%.
When he’s not playing Fortnite with more than a dozen fellow BandLab users, thekid.ACE generally records on his bed. The same goes for Tyler, who says the ability to cut vocals in solitude was part of BandLab’s initial attraction: “I used to be nervous to rap in front of people; I just wanted to be by myself.” ThxSoMch recorded the vocals for “Spit in My Face!” in his bathroom, according to a video he posted on TikTok, while keltiey prefers to use the closet. “Her clothes would be all around,” says Velencia Wallace, keltiey’s mother and manager. “She almost had a fort.”
Young artists who get used to working quickly on BandLab in the comfort of their homes may find it hard to kick the habit, even once they have access to professional recording studios. “As the artists become more prominent, the labels want to wean them off BandLab — they want them to actually go into the studio and work with legitimate producers,” the music attorney says. “But the kids don’t want to; they want to stick to BandLab. I’ve seen situations where kids turn down big session opportunities with prominent writers and producers in favor of just doing their thing on BandLab.”
Tyler uses a studio, but says that “if I haven’t been there in a minute, I’ll just record a song on BandLab. I don’t like writing, so I’ll just do it on there and rerecord it.”
Not everyone in the music industry is sold on BandLab. One senior executive, who requested anonymity to speak frankly, was impressed with the tech. “Kids have never sounded this good at home,” he says. But so far, he continues, artists using BandLab haven’t become recognizable stars. While some of the songs stream, he notes, the acts behind them remain “faceless.” (This criticism is common in the streaming era.) In addition, the executive points out that posting BandLab sessions on TikTok has become so common that it might reach a point of oversaturation and lose steam, like previous trends before it.
Meng acknowledges there are doubters who think “this a fad.” But he’s quick to offer a rebuttal. “There are billions of people around the world who don’t have access to music-making on their mobile devices,” he says, warming to his theme. “We’re just starting to scratch the surface. There’s a lot more to come.”
Industry veterans Chuck Rhodes and Dr. Glenn Toby have co-founded a new business venture, christened The Entertainment Alliance (TEA). Rhodes will serve as CEO and Toby as president of the full-service, multi-genre entertainment company whose main office will be headquartered in Nashville.
In addition to operating an in-house record label with global distribution by Bob Frank Entertainment, exclusively through The Orchard, TEA will house a management company, a publishing company and booking agency along with offering label services that include social media marketing and PR. TEA will also broker select movies, television series, documentaries and subscription video-on-demand (SVOD) products. The new venture’s A&R services are based in New York and there’s a satellite office in Atlanta. Initial artist signings will be announced soon with an inaugural project release slated by the end of this year.
“Our tagline at The Entertainment Alliance is ‘We are equal opportunity dream makers,’” Rhodes tells Billboard. “After 38 years of working in the industry, this is a great opportunity now to step up and be a founder/owner with a partner. I’ve found my soulmate in Dr. Toby when it comes to the business world and music world. We’re chomping at the bit to present something to the business that I don’t think they’ve ever seen before.”
Adds Toby, “Rhodes is the Clive Davis of the South whether it’s country, southern blues or soul and I’ve been involved in pop, R&B and dance. We don’t care about age, race or genre; we’re bringing everybody in. The fuel for this new venture is two music industry veterans that have written, arranged, produced, performed, advised and discovered talent in our more 40 years’ of combined experience. We’ve been behind the curtains for so long that it’s time to come to the forefront.”
Rhodes has spent the last 15 years in partnership with Bob Frank Entertainment where he served as general manager for Bob Frank Distribution and the Audium Nashville label. Getting his start in the music industry as a keyboard player for Ray Charles and Cher, Rhodes later served as program director of adult contemporary KVIL- AM/FM in Dallas-Ft. Worth. A move to Nashville found him segueing into promotion and management at MCA Records and later Giant Records. Rhodes also operates his own production company, On the Rhodes Entertainment. During his career, he has collaborated with a diverse slate of artists including Daryle Singletary, Loretta Lynn, Clay Walker, Kenny Rogers, Charlie Daniels, MC Hammer and the Beach Boys’ Brian Wilson.
Dr. Toby is the founder/CEO of Glenn Toby Enterprises (GTE), an international holding corporation that controls companies in the entertainment, sports, technology and real estate arenas. Total Entertainment Artist Management, Total Entertainment Athlete Management, and Infinite Sports Concepts are companies under the GTE umbrella with offices in New York, Atlanta, Los Angeles and Las Vegas. The roster of artists, actors and athletes that Toby has worked with includes LL Cool J, Swizz Beatz, Damion Hall of Guy, David Banner. Saigon, songwriter Positive K, “Queen of House Music” Barbara Tucker, actor Lance Reddick and Green Bay Packers legend Antonio Freeman. Dr. Toby is also a noted philanthropist who founded The Book Bank Foundation, which promotes literacy.
In 2023 so far, what’s happened in the last three months of the year largely mirrors the first when it comes to U.S. record label market share: the top two albums of the year — Morgan Wallen’s One Thing At a Time (Big Loud/Mercury/Republic) and SZA’s S.O.S. (TDE/RCA) — are still dominating the top two slots among consumption albums through June 29, according to Luminate. But while that may come as little surprise to industry chart-watchers, the rest of the top five points to a relatively surprising level of domination by one record label in particular: Republic Records.
In the first quarter of the year, Republic — which encompasses Island, Big Loud, Mercury, Cash Money and indie distributor Imperial — put up a current market share (defined as albums released within the past 18 months) of 12.45%, nearly five percentage points higher than second-placed Interscope Geffen A&M’s 7.75% (Interscope also encompasses Verve Label Group). At the end of the first half of the year, Republic’s current share stands at 12.46% — a remarkable level of consistency that shows the staying power of Republic’s current big releases, even as IGA has tightened the gap a bit, posting an 8.08% mark of its own to remain in second place.
Republic’s 12.46% current share at the midway point is also a significant leap from where it stood at the halfway mark in 2022, when it posted a current share of 8.92%, good for third place behind leaders Atlantic Records (9.92%) and second-placed Interscope (9.36%). Republic releases — chiefly Wallen’s album, but also Taylor Swift’s Midnights (one week) and Stray Kids’ 5 Star (one week) — spent all 13 weeks of the second quarter at No. 1 on the Billboard 200, part of a run of 17 straight weeks that only ended with Lil Uzi Vert’s new album Pink Tape.
Both Republic’s consistency and Interscope’s growth helped propel parent company Universal Music Group to a 34.48% current market share at the midyear mark, an improvement over both its first quarter current share (33.59%) and its current share at the midyear mark of 2022 (33.18%). Sony Music, in second place at 27.54%, dipped slightly from its huge Q1 current share of 28.46%, though it is still up significantly from the midyear mark in 2022, when it posted a 26.01% current share. And the Warner Music Group, in third among the major corporations, grew to 17.26% at the halfway mark of the year in current share, up from Q1’s 16.81% and 2022’s 15.33%. The collection of indie labels came in at 20.72% in current share at midyear, down from 21.15% in Q1.
Atlantic, in third among current share, grew to 7.34% at the midyear mark from 7.22% in Q1, though still down from the leading 9.92% it had midway through 2022. (Atlantic includes the combined 300 Elektra Entertainment Group.) But Capitol Music Group — which includes Motown/Quality Control, Blue Note, Astralwerks, Capitol Christian and indie distributor Virgin Music — surged from sixth place in Q1 2023 (5.56%) to fourth at the midyear market (6.00%), up significantly from the 4.31% it posted at the midway mark of 2022. Fifth-placed Warner Records (encompassing catalog label Rhino, Warner Latin and the bulk of Warner Nashville) also jumped two slots, from seventh in Q1 to fifth at midyear, to put up a 5.62% current share, up from 5.23% in Q1 and a 4.63% mark halfway through 2022.
Those two jumps from Capitol and Warner mean that Columbia (which includes some labels from indie distributor RED) and RCA Records slide down to sixth and seventh among current share, respectively. Columbia dipped from 5.85% in Q1 to 5.16% at the midyear mark in 2023 — though down significantly from the 6.65% it had at midyear 2022 — while RCA dropped from 5.76% in Q1 to 4.98% at the halfway point this year, a mark which is improved from the 4.31% it posted midway through 2022.
Rounding out the top 10 among current share is a trio of Sony labels, including two that made large strides: Sony Nashville, in eighth, at 2.55%, which grew from 2.30% in the first quarter and 1.72% midway through 2022; and Sony Latin in ninth, at 1.95%, up from 1.92% in Q1 and 1.22% halfway through 2022. Epic Records, at 1.82%, came in 10th in current share, dropping from 2.06% in Q1 and 2.24% at this time last year.
But current market share — while a strong indicator of recent performance for any label — does not tell the whole story, particularly at a time when Luminate reports that catalog (albums older than 18 months old, or the bulk of many major labels’ repertoire) share has increased again in 2023 so far, to 72.8% of all consumption from 72.4% in 2022, with a corresponding drop for current from 27.6% to 27.2%. And when taking into account all consumption, Interscope actually leads the U.S. industry in overall market share, posting a 9.48% mark at the midway point of 2023, up from 9.44% in Q1 and slightly down from its leading 9.80% mark halfway through 2022. That nudges Republic into second, ever so slightly, at 9.34% in overall share, a number that is also up from its Q1 mark (9.16%) and a significant increase from midyear 2022, when it posted a 7.96% share and came in third.
Outside those top two labels, the next handful of slots in the top 10 remain in the same order as their current share rankings, with Atlantic (8.31%) equalling its Q1 mark despite falling from the 9.30% it had in 2022; and Capitol also remaining static over Q1, posting a 6.70% (from 6.68% in Q1 and 6.06% in 2022). Warner (6.55%), in fifth, swapped positions with Columbia (6.23%) from their respective Q1 showings, while RCA (5.27%), in seventh, dropped from its 5.50% in Q1 but improved on its 4.92% mark from midway last year. Epic (2.54%), Sony Nashville (2.13%) and Def Jam (1.88%) rounded out the top 10 in overall market share.
Among the major label groups, UMG grew from 37.25% in overall share at the midpoint of last year to 37.98% this year, while Sony grew a full percentage point, jumping to 27.34% from last year’s mark of 26.34%. Warner Music Group, meanwhile, jumped significantly from 16.26% midway through 2022 to 18.75% halfway through this year, largely at the expense of the Indies, which fell from 20.15% to 15.93% in overall share this year.