Business
Page: 431
SM Entertainment’s revenue in 2022 grew 18.7% to 848.3 billion won ($657 million at the average 2022 exchange rate) in 2022, the Korean music company announced Monday. Gross profits rose 15.4% to 297.5 billion won ($230 million), operating profit fell 3.7% to 93.9 billion won ($73 million) and operating margin dropped from 13.6% to 11.1%.
The K-pop company’s roster includes NCT Dream, NCT 127, Aespa and Red Velvet. NCT Dream had the fourth most album sales of any artist in Korea in 2022 with 4.1 million units. Red Velvet was the No. 9 artist with 2.4 million units, NCT 127 was No. 11 with 2.2 million units and Aespa was No. 13 with 1.8 million units.
In the U.S., NCT Dream reached No. 39 on Billboard’s Artist 100 chart in April 2022, while the group’s album Glitch Mode peaked at No. 50 on the Billboard 200 album chart. NCT 127’s latest album, 2 Baddies, peaked at No. 3 on the Billboard 200 in October.
Although SM Entertainment’s largest source of revenue, recorded music, declined 3.7% in 2022, gains in other parts of the business made up for the loss: Concerts jumped tenfold from a pandemic-led slowdown, licensing climbed 62.2% and appearances jumped 48.1%.
In the fourth quarter, SM Entertainment’s revenue rose 7.7% to 256.4 billion won ($188.6 million at the quarter’s average exchange rate). Operating profit rose 70.3% to 25.2 billion won ($18.5 million) and operating margin improved 9.8% from 6.8% in the prior-year period. Net profit fell 72.7% due in part to the sale of real estate in the fourth quarter of 2021 for 19.7 billion won ($14.5 million). The company also experience 7.5 billion won ($5.5 million) of foreign-currency-related loss in the quarter.
SM Entertainment’s earnings release arrived amidst a brewing controversy over an investment in the company by its largest competitor, HYBE. In a deal finalized on Feb. 22, SM Entertainment founder Lee Soo Man sold a majority of his shares to HYBE in what SM Entertainment CFO Jang Cheol-hkuk called a “hostile takeover” that will “undermin[e] the diversity of the K-pop market.”
SM Entertainment’s vision for the company includes Korean entertainment and tech company Kakao, which announced on Feb. 9 it would acquire a 9.1% stake in SM Entertainment. As SM Entertainment laid out in a presentation released Feb. 22, Kakao’s technological capabilities could help SM Entertainment build a stronger line-up and upgrade online fan platforms. Kakao owns the music streaming service Melon.
In an open letter posted on social media on Tuesday, HYBE CEO Park Jiwon argued that together the companies have an opportunity to reach more fans and “stand shoulder-to-shoulder with the world’s major record labels.” HYBE believes it can help SM Entertainment artists in North America and prizes SM Entertainment’s infrastructure in China and Southeast Asia, regions where HYBE currently does little business.
A new lawsuit claims that an antique car dealer crossed his heart and hoped to die when he promised Adam Levine a classic Maserati — but then fraudulently sold a different vehicle.
In a complaint filed Friday in Los Angeles federal court, attorneys for Adam Levine’s so-called living trust claim that dealer Rick Cole convinced the group to trade two classic Ferraris in return for what the dealer claimed was a rare 1971 Maserati Ghibli 4.9 Liter Spyder, one of only 25 such cars ever produced.
But the lawsuit says it later turned out that there are “serious questions” about whether the Maserati (valued at $850,000) is authentic — and that Cole took “active steps” to conceal the red flags.
“It is now readily apparent that Cole was well aware that the vehicle is not the actual [Maserati], and that the vehicle has a substantial cloud over its identity, authenticity, and provenance, crippling its market value to a figure far less than that paid by the trust,” lawyers for Levine’s entity wrote. “Cole egregiously never disclosed any of this to the trust, withholding this information in order to make substantial monies on the sale.”
Cole did not return multiple requests for comment in response to the lawsuit’s allegations. A spokeswoman for Levine also did not immediately return a request for comment; neither did a lawyer for the Adam Levine Living Trust — a type of legal entity that controls assets for individuals and the named plaintiff in the lawsuit.
Cole’s website says he’s spent decades as an “Auctioneer to the Stars,” claiming he’s sold more than 20,000 cars and worked with Frank Sinatra, Robin Williams, Sylvester Stallone and Jay Leno. Levine is listed on the site among the other A-listers.
According to Friday’s lawsuit, Levine’s trust agreed with Cole in early 2021 to swap a 1972 Ferrari and a 1968 Ferrari, valued at a combined $950,000, in return for the Maserati and $100,000 in cash. But the trust’s attorneys say that when the rare car was later put up for resale, it was revealed that an identical Maserati with the same vehicle identification number existed elsewhere.
The lawsuit says that a deeper investigation then revealed big red flags, including that the disputed Maserati had been withdrawn from a 2015 auction over serious concerns about its authenticity, including incorrectly stamped markings on the chassis. And the trust’s lawyers say they believe that Cole subsequently tried to fix those defects, though he still left “giveaways” that the car was not authentic.
“This demonstrates that, after the questioning of the authenticity of the vehicle at [the 2015 auction], someone tried to make the vehicle appear authentic by reproducing or stamping a new chassis plate to make the writing seem more like that used by Maserati at the time, in an obvious attempt to convince a potential buyer,” the trust’s lawyers wrote. “Upon information and belief, it was Cole and/or his agents who made these changes.”
The lawsuit also claims that Cole “repeatedly discouraged” the resale of the case, since he “obviously feared that if the Trust marketed the Vehicle, it would eventually learn the truth concerning its lack of authenticity and corresponding decrease in market value.”
In technical terms, the trust is suing Cole for various forms of misrepresentation, breach of contract, and fraudulent concealment; it’s seeking a court order rescinding the sale of the vehicle, or an award of damages of at least $850,000.
Spotify announced a new listening feature that incorporates artificial intelligence technology on Wednesday (Feb. 22). Instead of clicking through an editorial playlist like Today’s Top Hits or an algorithmic one like Discovery Weekly, premium users in the U.S. and Canada can now turn to “DJ,” which supplements algorithmic recommendations with commentary about the selections delivered via an AI voice platform.
DJ “will sort through the latest music and look back at some of your old favorites — maybe even resurfacing that song you haven’t listened to for years,” Spotify wrote in a blog post. “It will then review what you might enjoy and deliver a stream of songs picked just for you. And what’s more, it constantly refreshes the lineup based on your feedback. If you’re not feeling the vibe, just tap the DJ button and it will switch it up.”
Sulinna Ong, Global Head of Editorial at Spotify, praised DJ as “a new and unique music experience” in a statement. “I’m personally so excited about DJ because we’re able to harness this power to tell an artist’s story, to be able to provide context around their work and their songs in a broader cultural arena like never before,” she added.
Spotify’s blog post also noted that “early tests” of DJ — the feature is still in beta mode — indicate “that when listeners hear that additional audio context alongside their music recommendations, they’re more willing to try something new and listen to a song they may have otherwise skipped.”
The streaming service said that technology from OpenAI, the company that also developed ChatGPT, helps furnish “insightful facts about the music, artists, or genres you’re listening to” — facts sourced in part from Spotify’s editorial team. The AI voice of DJ is based on that of Xavier “X” Jernigan, the platform’s head of cultural partnerships, who previously hosted a morning show podcast for the streaming service. Spotify announced that it acquired Sonantic, an AI voice platform, last June.
Generative artificial intelligence has become a red-hot topic in tech in recent months thanks to ChatGPT and new image generators like DALL-E 2. AI is already being incorporated by tech companies like BandLab and Boomy, which aim to make the barrier to artistic creation lower by providing aspiring acts access to AI-powered music-making tools.
Joel Zimmerman has joined the management, production and business development firm Range Media Partners, where he will serve as a partner in the music division, the company announced Wednesday (Feb. 22). In his new role at Range, which launched in 2020, Zimmerman will represent clients with a focus on long-term career strategy, creative development, cross-over positioning, branding, IP and global touring.
“I’m most passionate when I have a vision for an artist’s career path or see where a new market can be created, while having the right set of resources to not only ideate but bring it all to fruition,” said Zimmerman. “I believe the best and most forward-thinking cultural platform for music talent is at Range. The team’s ability to mobilize with very high-level resources, combined with a truly amazing company culture, makes for the best breeding ground to turn the biggest dreams into reality. I am so excited to be building at Range and to make a positive impact on the continuously evolving industry.”
Prior to joining Range, Zimmerman had a 13-year run at WME, where he helped break artists including Calvin Harris, Pharrell Williams, Steve Lacy, Avicii, Martin Garrix, Steve Aoki, Psy, Kygo, Swedish House Mafia and Deadmau5. Altogether, Zimmerman served as an architect of the U.S. electronic music boom of the early to mid-2010s, particularly as he developed the template for Las Vegas DJ residencies. During this same era, Zimmerman signed The Weeknd and helped guide the artist to superstar status.
“Joel has consistently managed to cut through the noise — and competition — by landing clients lucrative touring, club and festival deals, as well as crossing them into other entertainment arenas,” said Range Media Partners CEO Peter Micelli. “The result of his groundbreaking work has created new pathways and platforms that break future stars and legitimize new music genres.”
“We could not be more excited to welcome Joel to Range,” Micelli added. “He is the preeminent thought leader in the music industry and a true force of nature, with an inherent ability to identify talent and looming trends. We’re thrilled to add an executive and partner of his caliber to the company.”
Reservoir Media said Wednesday it acquired the publishing and recorded rights to the catalog of jazz living legend Sonny Rollins — aka “The Saxophone Colossus.”
A recipient of the Lifetime Achievement Award at the 2004 Grammys, Rollins is perhaps best known for his 1956 album Saxophone Colossus and its track, “St. Thomas,” which has been deemed “culturally, historically…significant” by the Library of Congress’ National Recording Registry.
A regular collaborator of other jazz giants Charlie Parker, John Coltrane, Thelonious Monk, Miles Davis and Dizzy Gillespie, among others, Rollins continued to release music, including his 2001 Grammy-winning album This is What I Do and 2006 Grammy-winning solo “Why Was I Born?”
“I’m happy that Reservoir will be helping to maintain my musical legacy, which was created in concert with so many great musicians I’m proud to be associated with,” Rollins said in a statement announcing the acquisition.
Terms of the deal were not disclosed, with Reservoir adding that it includes a “mix of rights across Sonny’s entire catalog.”
Rollins catalog is a body of work spanning more than 70 years of “musical innovation,” Rell Lafargue, Reservoir president and chief operating officer, said in a statement.
“I first learned of Sonny through his music, playing ‘St. Thomas’ as a young jazz student, and it’s incredibly meaningful that Reservoir and I can now commit to preserving Sonny’s musical legacy and amplifying his contributions to the artform for audiences old and new,” Lafargue said.
Brad Paisley has shifted labels, from his longtime home at Sony’s Arista Nashville, to EMI Records Nashville, under the Universal Music Group Nashville (UMGN) umbrella.
The move reunites Paisley with UMGN chairman/CEO Mike Dungan and president Cindy Mabe. Dungan was instrumental in signing Paisley to his first deal at Arista Nashville, while Mabe served as Paisley’s marketing point person through many of his early album cycles including Mud on the Tires and Time Well Wasted. He also joins a label group roster that includes several of his collaborators, including Carrie Underwood, with whom Paisley co-hosted the CMA Awards for more than a decade and together earned a No. 1 Country Airplay hit with “Remind Me” in 2011. He is also now labelmates with his “Start a Band” collaborator Keith Urban.
“There were two people that should get the credit that you even know my name – Mike Dungan and Cindy Mabe. I ran into Mike at the fishing department at Walmart after having met with several labels and he talked me into signing my first deal with Arista. They assigned this woman named Cindy Mabe to me – we graduated the same day at Belmont. I got to work with her on my first few albums and now I get to work with her at UMG,” Paisley said via a statement. “Cindy’s a genius and terrific human being. She heard what I was up to with the new music, and she pointed me further into the direction I was headed. I’ve never had this kind of enthusiasm and empowerment. She said, ‘Make music that matters.’ It’s an amazing thing to work with Mike and Cindy again. It’s great to know they believe in this music as much as I do.”
For more than two decades, Paisley’s razor-sharp songwriting, keen wit and dedication to country music have garnered him three Grammy Awards, 14 CMA Awards, 15 ACM Awards and more accolades. He was inducted as a member of the Grand Ole Opry in 2001. During his career, he’s posted nine albums at the pinnacle of Billboard’s top country albums chart, and earned nearly two dozen hits on the Country Airplay chart.
Paisley’s first UMG Nashville album is slated for later this year, while he will release a new song from the upcoming project on Feb. 24. Titled “Same Here,” Paisley wrote the song with Lee Thomas Miller and Dawes frontman Taylor Goldsmith, with production by Luke Wooten.
“Brad is a true creative. He has no boundaries to what he uses as his canvas. He has used his voice and his words as a gift to heal the world through his philanthropy, his song writing, his guitar playing, his entertaining, his music videos, his sense of humor and his heart,” Mabe said via a statement. “He has been a part of the country music duo with Carrie Underwood that helped define country music to the world. And getting to reunite with my friend and collaborator in his next creative adventure is something I’ve wanted for a long time. I cannot wait for him to share the music he has created with the world.”
Seeker Music has signed Australian-born songwriter, producer, DJ, and artist Kito to a publishing agreement. Known for her collaborations with artists like FLETCHER, Empress Of, Jorja Smith and more, Kito’s deal is one of the company’s first frontline signings.
Kito first became known as a DJ at the start of the 2010s, remixing songs like Beyonce’s “Run the World,” Saweetie and Doja Cat’s “Best Friend,” and MARINA’s “Venus Fly Trap.” Later on, as she developed her writing and production skills, Kito earned cuts with Mabel, BANKS, Tinashé and Jorja Smith and released her own EP Blossom, featuring Jeremih, ZHU and Terror Jr.
Seeker Music was founded in 2020 and quietly amassed a catalog of music IP over the next two years, including hits recorded by Run the Jewels, Christopher Cross, Ginuwine and more. The company is administered by Downtown and funded by London-based private equity firm M&G.
Seeker Music founder and CEO, Evan Bogart, told Billboard in a previous interview that his aim was always to become a multi-hyphenate music company, developing current songwriters and artists as well as building up a robust back catalog of songs, however, the company’s frontline efforts were hindered by the COVID-19 pandemic. “I invest with my heart before money,” the executive explained, adding that meeting talent over Zoom made it difficult to foster camaraderie with potential signees. Now that in-person meetings and writing sessions have resumed, Seeker has bolstered its frontline business, signing acts like Kito as well as Sofía Valdés (Warner Records), Katie Pearlman (Kelly Clarkson, Grace Potter, Sabrina Carpenter), Sweetsound (Jesse Baez, Snoop Dogg, Natanael Cano), and MNDR.
Kito noted that she opted to sign with Seeker for its “quality over quantity” approach to its roster and that Bogart is a songwriter himself. Best known for penning hits like “SOS” by Rihanna and “Halo” by Beyonce, Kito says of Bogart “I trust Evan because he understands what it’s like to write a song and bring it into the world. He’s also built himself as a songwriter ‘business,’ and worked with, and mentored, some of the greatest writers in the world. The whole team at Seeker really ‘gets’ the creative process and what’s important to music creators. I’m excited for this next chapter together and everything we’re cooking up for 2023 and beyond.”
Bogart says of the deal, “everyone wanted to sign Kito and I couldn’t be prouder that she chose Seeker to be her family. She’s insanely talented and she’s going to dominate music, and the music business, in the years to come.”
A man convicted of gunning down rapper Nipsey Hussle in 2019 is likely to get life in prison when he is sentenced Wednesday (Feb. 22) in a Los Angeles courtroom.
Jurors in July found Eric R. Holder Jr., 32, guilty of the first-degree murder of the 33-year-old Grammy-nominated hip-hop artist outside the clothing store Hussle founded, the Marathon, in the South Los Angeles neighborhood where both men grew up.
Holder was also convicted of two counts of attempted voluntary manslaughter and two counts of assault with a firearm for gunfire that hit two other men at the scene who survived.
The sentencing has been delayed in part so defense attorney Aaron Jansen could move for Superior Court Judge H. Clay Jacke to reduce Holder’s conviction to manslaughter or second-degree murder, which the judge rejected in December.
Jacke will have a broad range of possibilities when he sentences Holder at the Thursday morning hearing, but the murder conviction alone carries a term of 25 years to life. The other convictions, and special sentencing circumstances that jurors found true, make it almost certain Holder will spend the rest of his life in prison. Holder was not eligible for the death penalty.
“We hope that there is some resounding peace in the fact that his killer will be in prison likely for the rest of his life,” the lead prosecutor, Deputy District Attorney John McKinney, said after the verdict.
Actor Lauren London, who was Hussle’s partner and the mother of his two young children, did not attend any part of the trial, nor did any of his relatives, and none are expected to give victim impact statements, as often happens at such hearings.
The evidence against Holder was so overwhelming — from eyewitnesses to surveillance cameras from local businesses that captured his arrival, the shooting and his departure — that his attorney conceded during trial that he had shot Hussle.
But Jansen argued to jurors that the heated circumstances of the shooting meant a lesser verdict of voluntary manslaughter was merited. The jury returned with the first-degree murder verdict after about six hours of deliberations. Jansen said afterward that he was “deeply disappointed” in the verdict, which they planned to appeal.
He did manage a minor victory for Holder by securing the attempted voluntary manslaughter convictions where prosecutors had sought attempted murder verdicts. The sentencing, originally scheduled for September but postponed at the request of the defense, brings an end to a legal saga that lasted more than three years and a trial that was often delayed because of the pandemic.
Hussle, whose legal name is Ermias Asghedom, and Holder had known each other for years growing up as members of the Rollin’ 60s in South LA. Both were aspiring rappers. But Holder never found the same success as Hussle, who would become a local hero and a national celebrity.
A chance meeting outside the Marathon, in a shopping center Hussle owned, led to a conversation the two men had about rumors that Holder had been acting as an informant for authorities. Jansen argued that being publicly accused of being a “snitch” by a person as prominent as Hussle brought on a “heat of passion” in Holder that prompted the shooting.
A woman who was with Holder that day took a photo with Hussle before becoming Holder’s unwitting getaway driver, was a key witness for the prosecution.
After years of devoted work that won him underground acclaim — his nickname was both a play on the name of comedian Nipsey Russell and a nod to the hustle the future hip-hop star showed in making music and selling CDs — Hussle had just released his major-label debut album and earned his first Grammy nomination when he was killed.
A year after his death, he was mourned at a memorial at the arena then known as Staples Center, and celebrated in a performance at the Grammy Awards that included DJ Khaled and John Legend.
After a four-year hiatus, long-running Seattle music festival Bumbershoot will return this Labor Day weekend — with help from e-commerce giant Amazon.
As announced Tuesday (Feb. 21) by new Bumbershoot producer New Rising Sun, the festival will return for its 50th edition on Sept. 2-3, 2023, and Amazon has agreed to underwrite presale tickets for this year’s edition to keep it affordable. The e-retailer will sponsor a special early bird $50 single-day ticket and $85 two-day general admission ticket — prices that are 50% lower than when the event was last held in 2019. Amazon has also announced plans to work with arts organization Third Stone to give out 5,000 tickets to area non-profits and community organizations.
First launched in 1971, Bumbershoot faced a double whammy in recent years thanks to declining ticket sales and attendance in the 2010s followed by three years of closure due to the pandemic.
Bumbershoot was previously produced by AEG Presents, which had agreed to produce the festival with Seattle non-profit festival production company One Reel beginning in 2014 to help cover the $1 million in debt One Reel had racked up and restore the event’s financial footing. In 2019, AEG Pacific Northwest vp Rob Thomas announced the company was not renewing its agreement, hinting at financial differences with One Reel. That same year, a barricade collapse at Bumbershoot injured four attendees.
One Reel executives announced plans to stage the festival in 2020, only to be stymied by the COVID-19 pandemic. In 2021, host venue the Seattle Center put out a new request for proposals for the event, with the winning bid going to New Rising Sun, a collective founded by Neumos co-owner Steven Severin, who now serves as Bumbershoot’s co-president & director of music programming; Vital 5 Productions founder Greg Lundgren, who serves as curator; and McCaw Hall general manager Joe Paganelli, who serves as producer.
“We heard from our community and took action — fulfilling our promise of affordability and inclusivity,” Severin said in a statement to Billboard. “When re-imagining our festival for this return, we examined everything through an arts lens and expanded upon what art is and can be. We look forward to sharing our vision this Labor Day weekend.”
“As ticket prices steadily climb for concerts and events around the globe, we’re excited to support reduced and free ticket prices, creating opportunity for more of our community to enjoy the diversity of Seattle’s creative ecosystem, participate in Bumbershoot’s exciting education programs, and immerse themselves in the arts,” added Amazon senior vp/general counsel/secretary David Zapolsky.
Tickets go on sale Friday (Feb. 24) at 10:00 a.m. PT via bumbershoot.com. Fans are encouraged to purchase tickets in advance as they are expected to sell quickly. A performer lineup will be announced at a later date.
After nearly four years, late rapper Lil Peep’s mother, Liza Womack, has reached a settlement in the wrongful death lawsuit she brought against her son’s former label and management company, First Access Entertainment (FAE), according to court documents obtained by Billboard.
On Friday (Feb. 17), Womak — who is also the administrator of Peep’s estate — filed a notice in Los Angeles court that she had settled the case against all defendants. Details of the settlement agreement were not made available.
In addition to FAE, the 2019 lawsuit targeted Bryant Ortega, a member of Peep’s management team, and Belinda Mercer, Peep’s tour manager for his final tour in 2017, alleging they were responsible for the rapper’s fatal overdose of Xanax and fentanyl in November that year. Among other claims, Womack alleged that Mercer had a sexual relationship with Peep — born Gustav Elijah Åhr — and that she provided him drugs including ketamine. Rather than seek help for Lil Peep, FAE CEO Sarah Stennett was also accused of gifting the emerging rapper a bottle of pills during a group dinner.
The lawsuit further alleged that during a Los Angeles tour stop in 2017, Peep was “barely able to communicate, let alone perform, due to his use of drugs,” but that his managers still allowed him to take the stage. Womack also claimed the rapper wanted to quit the tour on different occasions, but that his team neglected his pleas and “pushed [Peep] onto stage after stage in city after city, plying and propping” him up with drugs. The suit additionally alleged negligence and breach of contract.
In February 2022, Judge Teresa Beaudet ruled that the case against FAE and Mercer could go on, though she dismissed the wrongful death claim as well as two out of four negligence claims against Ortega. FAE, Mercer and Ortega have all denied the allegations, with FAE previously calling the lawsuit “groundless and offensive.”