Business
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Utopia Music is facing a lawsuit that claims the Swiss company has bailed on a $26.5 million deal to buy a U.S. music technology company called SourceAudio — and now owes more than $37 million.
In a complaint filed Monday (Feb. 13) in Delaware court, lawyers for California-based SourceAudio — a tech platform for digital asset management and monetization — claimed that the company had struck a deal in March 2022 to sell itself to Utopia, a buzzy music fintech firm that has reached a number of such deals over the past two years.
But SourceAudio’s lawsuit says that since striking the deal on March 14 — which could have closed as soon as May 9 — the bigger company has continually balked at actually completing the deal, informing them it was “not prepared to close the transaction.”
“Despite repeated assurances that Utopia would be able to close…, Utopia engaged in a pattern of discontinuing discussions for an extended period of time, only to resurface immediately before the next intended closing date to indicate that it was unable to close by such date,” the complaint reads.
To account for the delays, SourceAudio claims that Utopia agreed to increase the sale price by $334,000 for every calendar week after Nov. 1 that the deal didn’t close. More than three months later, the lawsuit claims those escalators mean that Utopia now owes $37.265 million.
SourceAudio says it’s “ready, willing, and able” to finalize the deal, and that Utopia is legally bound to do so. “SourceAudio requests that Utopia be ordered to specifically perform its obligations,” the smaller company wrote. “In the alternative, SourceAudio has been damaged by Utopia’s breach in an amount to be determined at trial, but no less than $37.265 million.”
In a statement to Billboard, a spokesperson for Utopia refuted the lawsuit’s allegations but provided little additional detail: “Utopia Music rejects the claims made by the plaintiff. As the legal proceedings are ongoing, we will not comment further.”
Utopia, a Swiss-based tech company that delivers financial services for labels, publishers and distributors, has been on a buying spree over the past two years. The company has acquired at least 15 companies, including music tech company Musimap, U.K. physical distributor Cinram Novum and Lyric Financial, a provider of royalty-backed cash advances.
But in November, news broke that Utopia would restructure operations and lay off 20% of its workforce. As first reported by Music Week, CEO Markku Mäkeläinen told staffers in an internal email that the company had “grown via acquisitions tremendously quickly” and would now need to “realise synergies” and “remove overlaps.”
The National Independent Venue Association (NIVA) will host its latest conference this July in Washington, D.C.
The association — which successfully lobbied for the $16.25 billion Shuttered Venue Operators Grant (SVOG) for indie venues struggling through the pandemic — will bring together its members from July 10-12. The inaugural NIVA Conference was held last year in Cleveland with more than 650 members in attendance.
The 2023 edition will focus on topics including industry diversity, mental health, safety, insurance, the economic impact of live entertainment, booking, artist development, ticketing and the role of live entertainment in policymaking. NIVA ‘23 will also give members the opportunity to engage with the organization’s federal and national partners on Capitol Hill, in the Biden administration and throughout the D.C. region.
“In welcoming the NIVA conference to the District, we look forward to showcasing the independent venues and creatives who keep D.C. the capital of creativity,” said Washington, D.C. mayor Muriel Bowser in a release. “And we have a lot to be proud of — from our vibrant Go Go scene, to the venues that have hosted and built generations of music fans, to the festivals that bring Washingtonians together year after year. D.C. residents love going to festivals and shows and supporting artists, and we know the important role our creative community will continue to play in D.C. ‘s comeback. We look forward to bringing NIVA members and industry experts together in D.C., and we’ll see you in July.”
In addition to a full slate of programming, organizers promise live performances, a pre-party on July 9 and an awards gala July 10 at independent venue The Anthem that will celebrate live entertainment’s contribution to the nation. Events will take place at multiple NIVA music and comedy venues across Washington, D.C. During the evenings, attendees can take advantage of concerts and performances happening every night of the conference as NIVA ‘23 coincides with National Independent Venue Week, making D.C. the epicenter of independent live music in the country the week of July 10.
“Thousands of music and comedy venues across the country spent 2020 and 2021 focused on making the case to Washington D.C. policymakers that small businesses in live entertainment needed help to prevent the permanent loss of stages in every community, and NIVA’s efforts led to the largest arts investment in U.S. history,” said NIVA’s recently appointed executive director Stephen Parker in a release. “This summer, the nation’s music and comedy community will return to D.C. to illustrate why the partnership between government and the independent live entertainment industry must continue beyond the pandemic, to forge the future for independent music and comedy venues, festivals and promoters and to demonstrate their place in America’s culture and economy.”
NIVA is partnering with the following member venues and festivals to bring the 2023 conference to Washington, D.C.: All Things Go, Black Cat, DC Improv, DC9 Nightclub, Down in the Reeds Festival, I.M.P. (The Anthem, 9:30 Club and Lincoln Theatre), Listen Local First D.C., National Cannabis Festival, Pearl Street Warehouse, Rhizome, Songbyrd Music House, The Hamilton, The Pie Shop, The Pocket, U Street Music Hall Presents and Union Stage.
Further details on the conference’s programming and speakers will be announced at a later date. Registration information can be found here.
Newly minted Warner Music CEO Robert Kyncl and his wife, psychotherapist Luz Avila Kyncl, have signed on for another five years of scholarship support for select computer science and engineering students at their alma mater, SUNY New Paltz.
The five-year-old Robert Kyncl ’95 and Luz Avila Kyncl ’96 Computer Science & Engineering Scholarship Fund is designed to benefit underrepresented students, especially women and minorities, seeking careers in STEM. Each year, at least six new transfer students or current Hawks will be selected for the scholarship, which offsets tuition costs.
The success of the scholarship has led to the creation of a group of alumni called the Kyncl Scholars.
“State education provided us with great opportunities, both professionally and personally, and we want to help more students access those same benefits,” said the Kyncls in a joint statement. “In turn, this talented next generation will help drive change and contribute to a more representative workforce in dynamic industries.”
The Kyncls’ most recent gift also supports the Fund for New Paltz and the AMP/CSTEP (AC²) Program Fund, which provides economic support for a number of traditionally underrepresented students who earn degrees in STEM fields and certain other majors such as Psychology.
SUNY New Paltz is a short drive north of New York City in Ulster County. As the name of the scholarship suggests, Robert graduated in 1995 (International Relations) and Luz a year later (Psychology).
“The Kyncls’ generosity in this area sends an important message to prospective and current students that people in leadership positions believe in their ability to succeed,” said Erica Marks, vice president for development & alumni relations and executive director of the SUNY New Paltz Foundation. “The University is continually evolving to remain competitive in offering high-quality computer science and engineering education that prepares students for their future. Each year, a powerful new cohort of Kyncl Scholars will be equipped with the training to be effective and collaborative contributors in the community.”
Robert Kyncl joined WMG on Jan. 1 after a decade as chief business officer at YouTube and seven years as vp of content acquisitions at Netflix. Read his first interview as CEO here. Luz Kyncl is a longtime licensed psychotherapist, and a certified health coach and mindfulness teacher. She is also the author of Liberate Yourself.
Napster announced that it acquired Mint Songs, a music NFT marketplace that aims to help artists establish a thriving Web3 presence, on Wednesday (Feb. 15). The acquisition brings together a streaming service with a platform focused on creating digital collectibles.
Jon Vlassopulos, CEO of Napster, said in a statement that Mint Songs “have done groundbreaking work helping thousands of artists get their start in Web3, reach their fans in new creative ways through collectibles, and unlock significant new revenue streams.”
“We feel that the natural next step for the Napster service is to include collectibles that fans can get as rewards for engaging with artists they love or that they can purchase to collect and share,” he added to Forbes. “We already have hundreds of thousands of artist storefronts where our fans go to listen to music every day so adding collectibles is very contextual in the fan experience.”
Garrett Hughes, co-founder and CTO of Mint Songs, said in a statement that Napster has “the vision to finally take Web3 music to the mainstream.” “Our goal all along has been to create deep, engaging, and innovative ways for artists to connect with fans that also offer them an opportunity to monetize that fandom,” he continued. “Conversely, we see a demand from fans for a music service to offer more than just on-demand music and podcasts, which makes Napster’s ambitious goals all the more attractive.”
Mint Songs’ Nathan Pham will join Napster to lead Web3 product initiatives, while Hughes will serve as an advisor to the company and “work closely with Vlassopulos to integrate Mint Songs’ technology into the Napster platform,” according to the acquisition announcement.
Last year, Napster was acquired by a pair of companies with Web3 experience: Hivemind and Algorand. Vlassopulos, who had spent close to three years at Roblox, took over as Napster CEO in September. “We want to bring the community together and enable the artists, with the data we have, to activate their communities around things like access to physical events and digital experiences,” he said at the time. Napster then launched Napster Ventures for the purpose of acquiring Web3 music startups.
Matt Zhang, founder and managing partner of Hivemind, applauded the Mint Songs acquisition on Wednesday. “We are excited for Napster to be a central player in the music Web3 ecosystem and acquiring Mint Songs is a great foundational step,” he said in a statement. “The combination of Napster’s continued innovation that powers the platform currently along with Mint Songs’ technology IP and expertise, will help drive Web3 innovation for the music industry.”
Jason Miller is moving from Live Nation to Outback Presents, where he has taken the role of GM of the North East Division to help grow the independent promoter’s business.
Miller, most recently executive vp at Live Nation Entertainment, is a veteran of the live entertainment industry with more than 30 years of experience. Over the course of his career, he’s produced events for top artists and entertainers at the iconic venues including Madison Square Garden, Barclays Center, Prudential Center, Radio City Music Hall, Citi Field, Yankee Stadium, Carnegie Hall, The Beacon Theatre, Northwell Health at Jones Beach, MetLife Stadium and Central Park’s Great Lawn and SummerStage.
“This is a tremendous moment for me personally and professionally,” Miller said in a release. “The new position allows me to return to my creative roots and independent spirit. I’m proud to be able to continue working with world-class artists and events.”
Miller was with Live Nation for 16 years out of New York. While there, he worked with such major artists as Eagles, Fleetwood Mac, AC/DC, Pearl Jam, Prince, Lady Gaga, George Michael, Mariah Carey, Dead & Company, Swedish House Mafia, Iron Maiden, Guns N’ Roses, Lenny Kravitz, Sheryl Crow, Tom Petty & The Heartbreakers, Eminem, Radiohead, Jay-Z and Rage Against The Machine.
“Jason carries decades of knowledge, history, and integrity along with a vast pool of experience promoting and producing the highest class of events in North America,” said Outback Presents’ Mike Smardak, Brian Dorfman and Vaughn Millette in a joint statement. “We are proud to foster his creative spirit and thrive in a new era of live entertainment.”
Outback’s team has also recently grown with the hires of Everett Ramsey and Hardy McBee, formerly of Beaver Productions, as well as Fallon Nell, who returned to Outback after stints in both artist management and at Belmont University.
Elon Musk said Wednesday that he anticipates finding a CEO for Twitter “probably toward the end of this year.”
Speaking via a video call to the World Government Summit in Dubai, Musk said making sure the platform can function remained the most important thing for him.
“I think I need to stabilize the organization and just make sure it’s in a financial healthy place,” Musk said when asked about when he’d name a CEO. “I’m guessing probably toward the end of this year would be good timing to find someone else to run the company.”
It remains unclear how seriously Musk will take that timeline. His comment came only hours after he posted images of his shiba inu dog, Floki, on Twitter as the company’s “CEO.”
“So much better than that other guy!” wrote Musk, who often posts memes. After making the posts, a cryptocurrency known as Dogecoin, based around the image of a shiba inu meme, rose in value by around 5%. Musk previously has suggested Twitter accept Dogecoin in transactions.
Musk, 51, made his wealth initially on the finance website PayPal, then created the spacecraft company SpaceX and invested in the electric car company Tesla. In recent months, however, more attention has been focused on the chaos surrounding his $44 billion purchase of the microblogging site Twitter.
Meanwhile, the Ukrainian military’s use of Musk’s satellite internet service Starlink as it defends itself against Russia’s ongoing invasion has put Musk off and on at the center of the war.
Musk offered a wide-ranging 35-minute discussion that touched on the billionaire’s fears about artificial intelligence, the collapse of civilization and the possibility of space aliens. But questions about Twitter kept coming back up as Musk described both Tesla and SpaceX as able to function without his direct, day-to-day involvement.
“Twitter is still somewhat a startup in reverse,” he said. “There’s work required here to get Twitter to sort of a stable position and to really build the engine of software engineering.”
Musk also sought to portray his takeover of San Francisco-based Twitter as a cultural correction. Since taking over the company, he’s restored Donald Trump’s access to the platform after the then-president lost access to the website after a pro-Trump mob attacked the U.S. Capitol on Jan. 6, 2021. Musk also reinstated the accounts of several people who spread misinformation about the coronavirus, including that of Rep. Marjorie Taylor Greene, R-Ga.
“I think that the general idea is just to reflect the values of the people as opposed to imposing the values of essentially San Francisco and Berkeley, which are so somewhat of a niche ideology as compared to the rest of the world,” Musk said. “And, you know, Twitter was, I think, doing a little too much to impose a niche.”
Musk’s takeover at Twitter has seen mass firings and other cost-cutting measures. Musk, who is on the hook for about $1 billion in yearly interest payments for his purchase, has been trying to find way to maximize profits at the company.
However, some of Musk’s decisions have conflicted with the reasons that journalists, governments and others rely on Twitter as an information-sharing platform.
Musk on Wednesday described the need for users to rely on Twitter for trusted information from verified accounts. However, a confused rollout to a paid verified account system saw some impersonate famous companies, leading to a further withdrawal of needed advertising cash to the site.
“Twitter is certainly quite the rollercoaster,” Musk acknowledged.
Forbes estimates Musk’s wealth at just under $200 billion. The Forbes analysis ranks Musk as the second-wealthiest person on Earth, just behind French luxury brand magnate Bernard Arnault.
But Musk also has become a thought leader for some as well, albeit an oracle that is trying to get six hours of sleep a night despite the challenges at Twitter.
Musk described his children as being “programmed by Reddit and YouTube.” However, he criticized the Chinese-made social media app TikTok.
‘“TikTok has a lot of very high usage (but) I often hear people say, ‘Well, I spent two hours on TikTok, but I regret those two hours,’” Musk said. “We don’t want that to be the case with Twitter.”
TikTok, owned by Beijing-based ByteDance, did not immediately respond to a request for comment.
Musk warned that artificial intelligence should be regulated “very carefully,” describing it as akin to the promise of nuclear power but the danger of atomic bombs. He also cautioned against having a single civilization or “too much cooperation” on Earth, saying it could “collapse” a society that’s like a “tiny candle in a vast darkness.”
And when asked about the existence of aliens, Musk had a firm response.
“The crazy thing is, I’ve seen no evidence of alien technology or alien life whatsoever. And I think I’d know because of SpaceX,” he said. “I don’t think anybody knows more about space, you know, than me.”
Former Warner Music Group (WMG) CEO Stephen Cooper has joined the board of directors for Web3 company OneOf, it was announced Wednesday (Feb. 15).
“I am excited about how technology can reshape the future of music, entertainment and business models for many industries,” said Cooper in a statement. “OneOf has a stellar team and deep expertise in providing next generation Web3 technology to enterprises and brands. I look forward to serving on OneOf’s Board of Directors to help guide and accelerate their growth.”
During Cooper’s time as WMG CEO, the company became the most aggressive of the three major labels in embracing Web3 and the metaverse. Under the guidance of chief digital officer/executive vp of business development Oana Ruxandra — who Cooper first brought to WMG in 2012 and who returned in 2018 following a two-year stint at UMG — the company forged partnerships with and/or invested in NFT platforms like Blockparty and The Sandbox, avatar tech company Genies, immersive tech company Wave, blockchain startup Dapper Labs and OneOf, which signed a deal with WMG in January 2022 to create exclusive NFTs for the company’s artists.
In addition to its B2B pursuits, OneOf has a consumer-facing Web3 marketplace, OneOf.com, which is home to digital collectibles for artists including Doja Cat, The Notorious B.I.G. and Whitney Houston.
Cooper’s tenure as WMG CEO lasted from August 2011 to January 2023, when he was succeeded by former YouTube chief business officer Robert Kyncl. Prior to WMG, Cooper served as CEO of Metro-Goldwyn-Mayer (MGM), CEO of Hawaiian Telecom, executive chairman of Blue Bird Corporation, executive chairman of Collins & Aikman Corporation, CEO of Krispy Kreme Doughnuts and CEO/chief restructuring officer at Enron Corporation.
“We are thrilled to welcome Steve to join our board and leadership team,” said OneOf founder/CEO Lin Dai. “Web3 will revolutionize how brands connect with the consumers of the future. Steve’s expertise across music, entertainment, and consumer brands is the perfect addition to OneOf’s leadership team. With his guidance, we look forward to advancing our mission to lower the barriers to entry into Web3 for enterprises and consumers alike.”
MELBOURNE, Australia — Labels trade body ARIA has questioned the motives behind TikTok’s “test” on users in these parts and demanded the short-form video platform immediately restore access to all music, for all Australians.
Earlier this month, ByteDance confirmed it was conducting an experiment in Australia, where TikTokers would have restrictions placed on their music options to soundtrack clips.
“Over the coming weeks we will be running a test in Australia to analyse how music is accessed and used on the platform,” reads a message from a TikTok rep. “Not all music is included in this test and we do not expect it to impact everyone on TikTok.”
The “test is underway,” and the app expects “that some of our users will not be able to access our full music and sounds library. For more than half of our community there will be no change to their experience and the test will not impact them.”
It’s unclear how many users have had their experience dampened, which titles and music labels have been removed, or precisely what TikTok hopes to gain from this procedure.
In one scenario, observers say, should TikTok find its users stay and stick to the app in the absence of major-label hits, the tech firm could gain an upper hand when it comes time to negotiate on content licenses.
On Wednesday (Feb. 15), ARIA addressed the elephant in the room.
In a carefully-worded statement, ARIA questions TikTok’s “decision to limit and remove access to music for select Australian creators and users” on its platform over the coming weeks.
“It is frustrating to see TikTok deliberately disrupt Australians’ user and creator experience in an attempt to downplay the significance of music on its platform,” comments ARIA CEO, Annabelle Herd, in a statement.
“After exploiting artists’ content and relationships with fans to build the platform, TikTok now seeks to rationalize cutting artists’ compensation by staging a ‘test’ of music’s role in content discovery.”
Herd points out the contraction in TikTok’s past mission statements.
“This is despite the fact that in 2021 TikTok’s global head of music, Ole Obermann, said: ‘Music is at the heart of the TikTok experience.’” This “test,” adds Herd, “is presented as an effort to analyse, improve and enhance the platform’s wider sound library, but as little as five months ago, TikTok’s chief operating officer Vanessa Pappas said that 80% of content consumed on TikTok is programmed by algorithms.”
If this is the case, Herd explains, “then it’s difficult to trust that this is a true test. TikTok can set its Australian algorithm upfront to – within parameters they define – deliver the results they want.”
And the results ARIA wants?
“Australians deserve better,” Herd concludes. “TikTok should end this ‘test’ immediately and restore music access to all users and creators.”
TikTok is a real hit with Gen Z in Australia, and is already a more popular social platform than Twitter among all Internet users in these parts, according to data published in the Digital 2022 Australia report.
The annual study found that users spent 40% more time scrolling the app each month compared with the previous year, and it’s now ahead of Twitter among the percentage of internet users who regularly use the platform.
Separately, TikTok recently launched SoundOn in Australia, a tool that allows creators to upload their music directly, and get paid.
The new platform, which is already live in the U.S., U.K., Brazil, Indonesia and elsewhere, helps independent emerging artists navigate its service, upload music and get paid for its use, market and promote themselves on TikTok and distribute their music to outside DSPs.
A Florida judge says Drake won’t need to sit for a deposition over the murder of XXXtentacion, seemingly swayed by the star’s arguments that he has no connection to the case.
Defense attorneys for one of XXX’s alleged killers have been trying to question Drake over his alleged beef with the late rapper prior to his 2018 shooting death. But Drake’s lawyers have argued that dragging him into the case without any evidence linking him to the crime is “unreasonable and oppressive.”
In a ruling issued Tuesday (Feb. 14), Judge Michael Usan sided with Drake’s attorneys, according to a person with knowledge of the proceedings, signing off on an order voiding a subpoena that would have required the star to sit for such a deposition. TMZ was first to report the news on Tuesday.
Neither a rep for Drake nor the defense attorney who sought to depose him returned a request for comment.
Prosecutors have never claimed that Drake (real name Aubrey Graham) was involved in the 2018 murder of XXX (real name Jahseh Onfroy). Instead, they’ve charged four Florida men — Dedrick Williams, Trayvon Newsome, Michael Boatwright and Robert Allen — who they allege killed XXX during a robbery that escalated into deadly violence.
But defense attorney Mauricio Padilla, who represents Williams, listed Drake on a star-studded witness list last year. And in his opening statements at trial last week, Padilla suggested that the police had not sufficiently investigated a possible connection to Drake, who allegedly had an existing feud with XXX before his death. Such speculation has been fueled by a 2018 social media post — later deleted — in which XXX said: “If anyone tries to kill me it was @champagnepapi,” referring to Drake by his Instagram name.
With plans to make those arguments at trial, Padilla attempted to force Drake to sit for a Jan. 27 deposition but later claimed the star didn’t show up for the hearing. Last week, Judge Usan ordered Drake to appear for a deposition via Zoom on Feb. 24 or risk being held in contempt.
But Drake’s lawyers quickly moved to overturn that ruling. In a filing Sunday (Feb. 12), they said it was unreasonable to demand a deposition when “no evidence has been provided to substantiate the assertion that the [Drake] in any way contributed to, had knowledge of, or participated in the alleged incident.”
Instead, they cited that headline-grabbing December witness list — which also listed Quavo, Offset, Tekashi 6ix9ine, Joe Budden and even late Migos rapper Takeoff after he had already been killed — and argued that the defense attorneys were merely trying to pull unrelated big names into the case.
“It would appear, based on the names mentioned on the witness list filed by defendant’s counsel, that the intent to subpoena [Drake] is less for the purpose of discovering relevant evidence and testimony, but instead add more layers of celebrity and notoriety to a tragic and unfortunate event,” the star’s lawyers wrote.
Tuesday’s order granted the motion from Drake’s attorneys and tossed out last week’s ruling. It’s unclear if Padilla can try to depose Drake at a future point in the case.
The catalog of Death Row Records, which includes canonical rap albums like 2Pac‘s All Eyez On Me and Snoop Dogg‘s Doggystyle, is now available on TikTok.
Snoop Dogg acquired the Death Row catalog last year and pulled it from streaming services, though Dr. Dre‘s The Chronic returned to platforms earlier this month, licensed to Interscope Records, in honor of the album’s 30th anniversary. The SoundOn deal marks the remainder of the Death Row catalog’s first official online release since it was pulled from streamers in February 2022.
“Since I took Death Row off streaming almost a year ago, not a day goes by without people asking me to put it back up,” Snoop Dogg said in a statement. “As the Super Bowl rolled around, I knew fans would be looking for the music from our iconic performance in 2022, so I wanted to reintroduce the most historic catalog to the people.” He added that Death Row releases “will be back on streaming services real soon.”
TikTok is touting the exclusive partnership, which launched on Sunday (Feb. 12) and continues for the rest of the week, as the “first-ever catalog reissue to release exclusively through SoundOn,” the distribution and marketing service the company launched in 2022. (SoundOn will distribute Death Row music to ByteDance platforms only, not to streaming services, once the exclusivity window ends next week.)
SoundOn was initially conceived to help “new and undiscovered artists,” according to TikTok global head of music Ole Obermann.
“We were hearing from a lot of artists that they loved being on TikTok and trying to build their community and hopefully reach really big audiences, but they were pretty overwhelmed, they didn’t really understand how to get onto TikTok, get music onto TikTok, get an account set up on TikTok, figure out how to position themselves in the right way,” Obermann told Billboard last year. “So what we came up with was, let’s have a special entrance into the platform that’s only available to these new and undiscovered artists, and then we’re gonna have a chance to work much more closely with them if this is the route they choose to come in. The goal is, really, that we find the promising artist and we walk them from the backstage door right onto the main stage and they’re there, they’re performing, it’s an incredible show and they’ve found their audience.”
Artists who have worked with SoundOn include Muni Long and Nicky Youre. It was initially only available in the United States, the United Kingdom, Brazil and Indonesia but launched in Australia earlier this month.