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Will Drake’s pending defamation lawsuit stop Kendrick Lamar from performing “Not Like Us” during his Super Bowl halftime performance? Legal experts say it might — but that it really shouldn’t.
Under normal circumstances, it’s silly to even ask the question. Obviously a Super Bowl halftime performer will play their chart-topping banger — a track that just swept record and song of the year at the Grammys and was arguably music’s most significant song of the past year.
But these are very much not normal circumstances. Last month, Drake filed a lawsuit over “Not Like Us,” accusing Universal Music Group of defaming him by boosting the scathing diss track. The case, which doesn’t name Lamar as a defendant, claims UMG spread the song’s “malicious narrative” — namely, that Drake is a pedophile — despite knowing it was false.
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That pending legal action makes it fair to wonder: When Lamar steps onto the world’s biggest stage on Sunday night (Feb. 9), will he face pressure to avoid the whole mess by just skipping “Not Like Us” entirely?
He shouldn’t, legal experts say, and for a pretty simple reason: Drake’s lawsuit against UMG is a legal loser. “I don’t think the case is strong at all,” says Samantha Barbas, a legal historian and an expert in defamation law at the University of Iowa’s College of Law.
For Drake to eventually win the case over “Not Like Us,” he’ll need to show that Lamar’s claims about him are provably false assertions — meaning the average person would hear them and assume Kendrick was stating actual facts. Barbas says that’ll be tough for Drake to do about a diss track, where fans expect bombast and “rhetorical hyperbole” more so than objective reality.
“In the context of a rap battle, the average listener is going to know that the allegations aren’t to be taken seriously,” she says. “Taunts and wild exaggerations are par for the course.”
Another challenge for Drake is that he’s a public figure. Under key First Amendment rulings by the U.S. Supreme Court, a public figure like Drake must show that UMG either knew the lyrics were false or that the company acted with reckless disregard for the truth — a legal standard that’s intentionally difficult to meet so that rich and famous people don’t abuse libel lawsuits to squelch free speech.
“A high-profile public figure like Drake immediately enters the case with a high burden of proof,” says Roy Gutterman, the director of the Newhouse School’s Tully Center for Free Speech at Syracuse University.
UMG’s attorneys will also likely point to the fact that Drake himself made harmful allegations against Kendrick earlier in the same exchange of diss tracks, including that Lamar had abused his fiancée and that one of his children was fathered by another man. Were those defamatory statements of fact, or merely the exercise of artistic license within the conventions of a specific genre of music?
“Factoring in the context here — music and art within an ongoing dispute between rival musicians — he has an even tougher case,” Gutterman says.
So if Drake’s case is likely to eventually be dismissed, then there’s no reason for Kendrick to hold back on Sunday, right?
Not exactly.
For starters, Federal Communications Commission rules prohibit the airing of “obscene, indecent, or profane content” on broadcast television during primetime hours. To avoid those rules, Super Bowl halftime performers typically avoid curse words or overtly sexual material — something that would probably already preclude the “pedophile” line and other lyrics in “Not Like Us.”
Corporate legal departments are also famously risk averse, and often prefer to play it safe rather than potentially face expensive litigation, even if they’d ultimately win. That could lead any of the big companies involved here to put pressure on Kendrick to skip “Not Like Us.” His label, UMG, has vowed to fight back against Drake’s “frivolous” lawsuit, but might not want to add complications mid-litigation; the game’s broadcaster, Fox, or the NFL itself might worry about getting added to the suit as defendants.
Gutterman said it would be “a significant stretch of liability law” for Drake to successfully sue Fox or the NFL simply because Kendrick played “Not Like Us” at the halftime show. But in practice, that might not be how their in-house attorneys are thinking about it.
“The threat of litigation can have a chilling effect on speech,” Barbas says. “The safe thing to do is not to publish or broadcast.”
Reps for Lamar did not return a request for comment on whether he’ll perform the song. The British tabloid newspaper The Sun, citing anonymous sources, reported last week that Kendrick has faced pressure to skip the track but plans to perform it anyway and “won’t be silenced.” But that report could not be confirmed by Billboard and was not widely re-reported by other outlets.
Asked whether they have a position on whether Lamar plays the song, reps for UMG, Fox, the NFL and Roc Nation (Jay-Z’s company that produces the halftime show) all either declined to comment or did not return requests for comment.
When the show kicks off on Sunday night, the most likely outcome is probably somewhere down the middle: That Kendrick plays the song’s already-iconic instrumental hook and perhaps some of the lyrics, but skips any of the portions that are directly at play in Drake’s lawsuit.
“It wouldn’t be surprising,” Barbas says, “if the challenged lyrics are changed.”
The Music Business Association has announced the agenda for Music Biz 2025, set for May 12-15 at the Renaissance Atlanta Waverly. This marks the first time the conference will be held in Atlanta, as part of a new rotating host city model, following a decade in Nashville.
The change, announced last March, is inspired by the Music Biz Roadshow series, which has connected industry professionals with local artist communities like Memphis and Chattanooga since 2022.
New events include a First Timers’ Meetup on May 12, allowing newcomers to connect with Music Biz staff and board members, followed by first day-capping party sponsored by Spotify. The State of the Industry breakfast on May 13 will explore global consumption trends and industry outlooks. Multi-panel discussions like Humans of Music and Workflow Workshop will focus on workforce and operational improvements.
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The Music Biz Roadshow returns on May 12, with support from The Mechanical Licensing Collective and Made In Memphis Entertainment, to help artists and their teams optimize revenue streams. Tech-focused pros can attend events such as the Startup Lab on May 12, Startup Round Robin on May 13, and the Music Tech Hackathon on May 15. Additional summits include Let’s Talk Physical, Music Security Summit, Publishing Summit, Music & Money and the Indie Label Summit.
The fourth annual Bizzy Awards dinner, sponsored by Warner Music, will be held on May 14, honoring late Twitch executive Cindy Charles, who died in a tragic traffic accident in October, with the 2025 Presidential Award, and Digital Data Exchange with the 2025 Impact Award. Finalists will be announced in February, with winners recognized at the event.
Music Biz president Portia Sabin expressed excitement for this year’s expanded agenda, highlighting the industry’s strong hand in shaping the program.
“The task of building a comprehensive, four-day program for our Annual Conference becomes harder and harder every year thanks to the innovative and compelling panel ideas contributed by our ever-growing global community — it’s a good problem to have!” said Sabin. “We’re proud of how the agenda for Music Biz 2025 came together, and we can’t wait to welcome both new & returning faces to our event in this year’s new host city.”
The National Music Publishers’ Association (NMPA) announced on Tuesday (Feb. 4) that it would issue takedown notices to Spotify for 2,500 podcast episodes on the platform that allegedly contain “unlicensed musical works” from 19 NMPA member publishers.
“Spotify has thousands of unlicensed songs in its podcasts, which it has done nothing to remedy. This takedown action comes as no surprise, we have warned of this issue for some time,” says NMPA president and CEO David Israelite of the takedown notices. According to the NMPA, this is just the start of the takedown requests, and the demands will continue to roll out.
This is the latest of many retaliatory actions the NMPA has taken against Spotify since last March, when Spotify significantly cut payments to NMPA’s members for premium subscriptions. By adding audiobooks into its premium subscription tiers, Spotify argued it qualified for a discounted royalty rate, known as “bundle,” given it would now have to pay for books and music from the same price tag that was once just for music. Israelite said at the time that he would “declare war” on Spotify for this move, and launched a number of actions to fight back.
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This included sending cease and desist notices for podcast and video content on its platform that were allegedly infringing on music IP; a legislative proposal, asking for the overhaul of the statutory license; complaints to the FTC and nine state attorneys general; and more. Around the same time, the Mechanical Licensing Collective (MLC) also fought back by filing a lawsuit against Spotify for the move to bundle premium subscriptions, calling it “unlawful.”
On Sunday, Jan. 26, the Spotify bundling issue was brought back into the headlines when Universal Music Group announced a new direct deal with Spotify which included changes both to the recorded music and publishing royalty rates. This marked the first direct deal between Spotify and a publisher since the passage of the Music Modernization Act (MMA), and sources close to the deal say that the agreement included improved remuneration for UMG’s publishing company, Universal Music Publishing Group, and its songwriters.
Still, all other publishers, most of which are members of the NMPA, remain on the baseline bundle rate. The NMPA told Billboard at the time that the deal was “good news for the entire industry” and that “a rising tide lifts all boats, and this signals that Spotify is coming back to the table,” but the organization also added it had no plans to stop any of the actions it had already set in motion against Spotify, and neither did the MLC.
A few days later, on Jan. 29, the MLC’s lawsuit against Spotify was dismissed, with a federal judge saying that Spotify’s move to bundling was supported by “unambiguous” regulations. The judge is not giving the MLC a chance to refile and said the law is clear. Still, if the MLC wants to, it can challenge the ruling at the federal appeals court.
These takedown requests make it clear that the NMPA is not ready to bury the hatchet with Spotify. Among the 2,500 takedown requests are podcasts that allegedly contain unlicensed musical works from publishers like ABKCO, Anthem Entertainment, Big Machine Music, BMG, Concord Music Publishing, Downtown Music Publishing, Hipgnosis Songs Group, Kobalt, Mayimba Music, peermusic, Primary Wave Music, Reservoir, The Royalty Network, Inc., Sony Music Publishing, Spirit Music Group, Ultra Music Publishing, Universal Music Publishing Group, Warner Chappell Music, and Wixen Music Publishing.
Israelite adds: “Podcasts are a growing source of revenue for songwriters and publishers, and it is essential that podcasts provide lawfully produced entertainment. This is not hard to do, and Spotify knows, and has known, how to fix this problem for their users. We hope podcast hosts will stand up for their fellow creators and demand that Spotify do better. Spotify will stop at nothing to undervalue songwriters on behalf of its bottom line. Look no further than its recent bundling scheme and its ill-conceived appeal of songwriters’ rate increase in CRB III. We will not stop until the platform fixes its podcast problem, and all other areas where songwriters are not earning what they deserve.”
President Donald Trump on Monday signed an executive order directing the U.S. to take steps to start developing a government-owned investment fund that he said could be used to profit off of TikTok if he’s successful at finding it an American buyer.
Trump signed an order on his first day office to grant TikTok until early April to find an approved partner or buyer, but he’s said he’s looking for the U.S. to take a 50% stake in the massive social media platform. He said Monday in the Oval Office that TikTok, which is owned by China-based ByteDance, was an example of what he could put in a new U.S. sovereign wealth fund.
“We might put that in the sovereign wealth fund, whatever we make or we do a partnership with very wealthy people, a lot of options,” he said of TikTok. “But we could put that as an example in the fund. We have a lot of other things that we could put in the fund.”
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Sovereign wealth funds invest in assets, such as stocks, bonds and real estate. They are typically funded by a country’s budgetary surpluses, which the U.S. currently does not have.
Trump noted many other nations have such investment funds and predicted that the U.S. could eventually top Saudi Arabia’s fund size. “Eventually we’ll catch it,” he promised.
There are over 90 sovereign wealth funds around the world that mange over $8 trillion in assets, according to The International Forum of Sovereign Wealth Funds, a London-based organization made up of roughly 50 of these entities.
In the U.S., more than 20 sovereign wealth funds exist at the state level, according to analysis from the Center for Global Development, a Washington-based nonpartisan think-tank.
The largest ones — based in Alaska, New Mexico and Texas — are financed through revenue that comes from oil, gas and mineral proceeds and used to fund in-state programs, such as education. Though these funds are owned by governments, they tend to operate as standalone institutions with their own investment strategies and staff, the center said.
The president put Treasury Secretary Scott Bessent and Howard Lutnick, Trump’s pick for commerce secretary, in charge of laying the groundwork for creating a the fund, which would likely require congressional approval. The executive order says a plan for the fund — including recommendations for investment strategies and a governance model — has to be submitted to Trump within 90 days.
Former President Joe Biden’s administration had studied the possibility of creating a sovereign wealth fund for national security investments, but the idea did not yield any concrete action before he left office last month.
Bessent said the administration’s goal was to have the fund open within the next 12 months, and Lutnick said another use of the fund could have been for the government to take an profit-earning stake in vaccine manufacturers.
“The extraordinary size and scale of the U.S government and the business it does with companies should create value for American citizens,” Lutnick told reporters.
TikTok was supposed to be banned in the U.S. last month under a federal law that forces ByteDance to divest its stakes or face a ban. The law was passed in April with bipartisan support in Congress and signed by Biden. The two companies and some users quickly took legal action against the statute, which was ultimately upheld by the Supreme Court last month.
After taking office, Trump, who had attempted to ban the popular app during his first term, directed the Justice Department to pause enforcement of the law for 75 days. The reprieve has given the company more time to work out a deal with the administration.
Several investors — including billionaire Frank McCourt and Trump’s former Treasury Secretary Steven Mnuchin — have spoken publicly about their desire to purchase TikTok’s U.S. platform. Trump has said “many people” had also reached out to him privately about it. Last week, he said Microsoft was one of the U.S. companies eyeing the social media platform.
A San Francisco-based artificial intelligence startup called Perplexity AI presented a proposal to ByteDance last month that would allow the U.S. government to own up to 50% of an entity that combines TikTok’s U.S. platform with Perplexity’s business, a person familiar with the matter previously told the Associated Press. If successful, the proposal would allow the U.S. government to have a sizable stake in that entity once it makes an initial public offering of at least $300 billion.
The wait is over. In 2025, Billboard U.K. will be hosting its inaugural Power Players list, also known as the Power 100, for the U.K. and Ireland’s world-beating music industry professionals.
While Billboard’s Power 100 ranks the music industry’s most influential executives globally, this list will celebrate and recognise the executives and members that are at the forefront of the U.K. and Ireland’s music scene, and boosting the region’s hugely talented artists on a global scale
Billboard U.K.’s Power Players list will be published in June 2025, and will be celebrated with an exclusive event at the upcoming inaugural SXSW London.
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Further details will be shared in the coming months.
“The U.K. and Ireland has long been home to some of the most influential figures in global music, shaping the industry and driving artists to new heights,” says Mo Ghoneim, president of Billboard U.K. “We look forward to spotlighting the executives leading this charge with Billboard U.K.’s Power Players, from labels to live, streaming to rights, and beyond.”
The news follows a period of success for British and Irish artists in recent years. In 2024, there were appearances for Hozier, Dua Lipa, Charli XCX, Coldplay and Ed Sheeran on Billboard’s Year-End Top Artists charts. Rising stars, meanwhile, like Lola Young, Aretmas, Myles Smith and more are growing their audiences domestically and internationally.
2025 will also be a bumper year for concert-goers with the U.K. hosting some of the most in-demand tours and live experiences: Oasis will kick off their reunion tour in Wales before heading around the globe, and superstars like Lana Del Rey, Billie Eilish, Olivia Rodrigo, Sabrina Carpenter, Usher and more come into market for huge shows.
There are challenges to be met, too: Grassroots music venues face decimation without urgent action; legislation on artificial intelligence is paramount to the government’s agenda on growth; artists are finding touring a loss-making endeavour; the live and festival landscape continues to evolve and bring new obstacles. These themes will shape the inaugural U.K. Power Players, but the doors are wide open.
The Power Players list will be peer-nominated and selected by the Billboard U.K. team. Nominations open Feb. 4 and will close in two weeks on Feb. 17. Interested parties can fill in the nominations form here. For any queries, please contact power100@uk.billboard.com or tsmith@uk.billboard.com.
Spotify added 35 million monthly active users in the fourth quarter last year — the most ever in a single quarter — bringing the total number of people streaming on the Swedish music and audiobook platform to 675 million, the company reported on Tuesday. Premium or paying subscribers totaled 263 million as of the end […]
Sean “Diddy” Combs has been hit with yet another lawsuit, this one filed by a man who says the hip-hop mogul drugged and sexually assaulted him at a Los Angeles party in 2015 after luring him with the promise of a record deal.
The new lawsuit was filed Monday (Feb. 3) in New York state court by Texas attorney Tony Buzbee, who has already filed a slew of other lawsuits against Combs. In it, a man identified only as John Doe claims that before performing for an audience at a Los Angeles venue called QC’s 20/20 with Combs in attendance, “a long-time and wellknown associate of Combs” told him “that Combs had heard of his talent and would be watching him perform. The associate specifically told Doe that if he performed well, Combs would discuss getting a deal with Bad Boy Records and arrange studio time between him and Combs.”
Following the performance, the man says that he attended an afterparty in the back of club, during which he was handed an “alcoholic beverage” containing Ciroc — Combs’ vodka brand — that was allegedly “from Combs himself.” After consuming the drink, the man claims he “quickly felt lightheaded and began slipping in and out of consciousness.”
During this time, according to the complaint, “Doe observed Combs and his entourage engaging in group sexual activity, often with other attendees who appeared either drugged, unconscious, or as if they were paid escorts. Doe believed most of the men participating in the sexual activities belonged to Combs’ entourage.”
At one point, the man claims that he regained consciousness to see Combs “grabbing his crotch while his pants had already been removed,” adding that “he believes that Combs had been performing oral sex on him because his penis was noticeably wet.” He goes on to allege that after regaining consciousness again, he “attempted to fight Combs off, but Combs’ security team stepped in,” and that Combs subsequently “threatened” him, “stating that he could easily contact his manager and ruin any chances he had of succeeding in the music industry if he did not comply.”
At this point, the man claims Combs ordered him “to have sex with a woman he did not know while Combs wanted to watch,” but that he escaped the venue after convincing Combs and his security team to let him use the bathroom.
He says that after the assault, he was afraid to report the alleged assault for fear of being blackballed in the music industry and later experienced “pain and suffering, mental anguish, physical impairment and emotional torment,” adding that it “greatly affected” his desire to continue pursuing a music career.
Also named as defendants in the suit are Combs’ various business entities under the Combs Global umbrella, which are alleged to have “enabled” the assault.
The man is asking for compensatory and punitive damages.
“As we’ve said before, Mr. Combs cannot respond to every new publicity stunt, even in response to claims that are facially ridiculous or demonstrably false,” said attorneys for Combs in a statement sent to Billboard. “Mr. Combs and his legal team have full confidence in the facts and the integrity of the judicial process. In court, the truth will prevail: that Mr. Combs never sexually assaulted or trafficked anyone — man or woman, adult or minor.”
Combs is currently awaiting the start of his criminal trial, which is set to commence on May 5, at the Metropolitan Detention Center in Brooklyn. He is charged with running a criminal enterprise aimed at satisfying his need for “sexual gratification.” Among other accusations, Combs is alleged to have held so-called “freak offs” during which he and others drugged victims and coerced them into having sex. He is also accused of acts of violence and intimidation to silence his alleged victims. Combs faces a potential life prison sentence if convicted on all charges.
Lil Nas X has signed with Crush Management, joining a star-studded roster that includes Miley Cyrus, Green Day, Lorde and more, Billboard has confirmed. The firm’s other recent signings include Kesha, Labrinth and Orville Peck. The news was first reported by The Hollywood Reporter. Lil Nas was formerly managed by Adam Leber‘s Rebel Management. The […]
Spotify’s share price continues to soar in 2025 following a massive gain in 2024, making the music streaming company’s $109.3 billion market capitalization worth about the same as every standalone, publicly traded music company from which it licenses music combined — with nearly enough left over to include concert promoter Live Nation.
Based on closing prices Monday (Feb. 3), Universal Music Group has a market cap — the value of outstanding shares — of $51.1 billion, amounting to less than half of Spotify’s. The other standalone, publicly traded “multi-sector” music companies covering record labels and music publishers total another $27.8 billion: Warner Music Group ($16.6 billion), HYBE ($6.5 billion), JYP Entertainment ($1.8 billion), Believe ($1.5 billion), SM Entertainment ($1.3 billion), YG Entertainment ($646 million), Reservoir Media ($522 million) and Avex ($421 million). That brings the multi-sector aggregate market cap to $80.4 billion. If you add Live Nation’s $33.6 billion market cap to the multi-sector group, the combined market cap exceeds Spotify by just $4.7 billion.
Additionally, if you add the market cap of Sony Music – which is part of the Sony Corp. conglomerate and doesn’t trade as a standalone company – to UMG and WMG’s, the three major music groups’ aggregate market cap isn’t much more than Spotify’s. Importantly, if Sony Music was independent of Sony Corp, its value would be comparable to that of UMG. In the past four quarters, the two companies have had almost equal revenues on a dollar basis — $11.6 billion for UMG to $11.59 billion for Sony Music. Assuming the companies have similar margins and growth prospects, Sony Music’s market cap could — but would not necessarily — equal UMG’s $51.1 billion. Add WMG, and the three majors have a combined market cap of $118.8 billion — just $9.5 billion more than Spotify’s market cap at the end of trading on Monday.
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This imbalance between Spotify and music companies’ values hasn’t always existed. A move into podcasting and a pandemic-led growth spurt pushed Spotify’s stock above $380 in February 2021. The frothy times didn’t last long, however. Investors who were previously attracted to streaming companies’ high growth rates eventually demanded more financial discipline. When Spotify shares fell to an all-time low of $69.29 on Nov. 4, 2022, its roughly $13.3 billion market cap was less than a third of UMG’s $40.9 billion. But layoffs and price increases turbocharged Spotify’s financial statements and sent its share price into a new stratosphere. In 2023, the company laid off roughly a quarter of its full-time staff and implemented the first of two price increases. In 2024, Spotify’s share price rose 138.1%. Last month, it jumped another 22.6%.
Today, Spotify’s market value puts it in a rarefied air amongst entertainment companies. Netflix — which has 302 million subscribers globally to Spotify’s 252 million, and much higher prices — currently has a market cap of $418.8 billion. Walt Disney, which spans streaming, cable TV networks and theme parks, is worth $206.1 billion. Sony Corp, a huge company that includes games, movies, TV and hardware, has a market cap of $133.7 billion. Telecommunications giant Comcast, owner of NBCUniversal and cable company Xfinity, is worth $126.7 billion. Spotify is worth more than Warner Bros. Discovery ($24.9 billion), sports gambling company DraftKings ($20.2 billion) and video game companies Nintendo ($87.6 billion), Roblox ($46.4 billion) and Electronic Arts ($32.2 billion).
Universal Music Group (UMG) chairman/CEO Lucian Grainge released his annual New Year’s memo to staff on Monday (Feb. 3), about a month later than usual owing to the wildfires that broke out in Los Angeles in early January.
In the 3,113-word letter, Grainge retreaded much of the same ground covered in his 2023 and 2024 New Year’s addresses and his presentation at the company’s Capital Markets Day in September, including mentions of “Streaming 2.0,” “responsible AI,” “artist-centric” approaches, “super fans” and more.
Grainge began the letter by noting UMG’s accomplishments over the last year, including breaking new artists like Sabrina Carpenter and Chappell Roan, working with Taylor Swift — the most streamed artist globally on Spotify, Amazon and Deezer — and Apple Music’s Artist of the Year Billie Eilish, adding that “achievements like these don’t just happen.”
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“Those achievements were greatly assisted by our continuing self-reinvention, reshaping our organizational structure,” wrote Grainge, referring to the widespread restructuring of UMG’s recorded music division in 2024 that led to layoffs. “Within months we were operating with greater agility and efficiency. We then saw something exceptional take place.”
As the largest music company in the world enters 2025, Grainge reminded his staff that UMG is still a “relative minnow” compared to the trillion-dollar tech companies it calls its partners. Still, he noted that UMG was successful in ushering in its “artist-centric strategy,” a term he introduced two years ago to describe UMG’s efforts to better monetize music and to limit gaming of the systems.
“Not only do we want to ensure that artists are protected and rewarded, but we’re also going after bad actors who are actively engaged in nefarious behavior such as large-scale copyright infringement,” he wrote. In the last year, UMG forged new deals with TikTok, Spotify and Amazon to aid in those efforts. Also in 2024, UMG sued AI companies Suno and Udio and music distributor Believe to prevent what Grainge called “large-scale copyright infringement.”
Grainge then detailed his plans to influence and set the ground rules for “Streaming 2.0” — or “the next era of streaming” — with UMG’s partners. He pointed back to new agreements with Amazon and Spotify as major wins, adding, “We expect that similar agreements with other major platforms will be coming in the months ahead.”
He also discussed the company’s goal of finding ways to “accelerat[e] our direct to consumer and superfan strategy,” building on past moves like its strategic partnership and investment in NTWRK and Complex. “This year will see us expanding our product offerings to fans, as we continue to redefine the ‘merch’ category and create superfan collectibles and experiences,” Grainge wrote.
He also noted the company’s focus to “aggressively grow our presence in high potential markets,” whether that’s through A&R, artist and label service agreements or mergers and acquisitions. In the last year, UMG has managed to work towards this goal by announcing that Virgin had entered an agreement to acquire Downtown Music Holdings, purchasing the remaining share of [PIAS] and partnering with Mavin Global in Nigeria.
“The reason so many independent music entrepreneurs actively seek to partner with UMG when they have more alternatives than ever before is that we provide what they’re seeking… After all, we’re not a financial institution that views music as an ‘asset,’” he wrote. “And we’re not an aggregator that views music as ‘content.’ We are a music company built by visionary music entrepreneurs. For us, music is a vital — perhaps the vital — art form.”
Grainge ended on a high note, writing, “Let me leave you with this: Some will try to disrupt our business or criticize us. That we know. It comes with being in the most competitive market that music and music-based entertainment has ever seen, and it comes with being the industry’s leader and primary driving force. But our vision and our ability to consistently execute gives us the momentum to continue to succeed and grow.”
Read Grainge’s full New Year’s note to staff below.
Dear Colleagues:
When I wrote my first letter about the L.A. fires, I said that my annual New Year’s note would have to come later than usual. And so here it is…
Last night’s Grammy awards served as a perfect metaphor for our company’s performance in 2024—breaking new artists and taking our superstars to new heights. In fact, last night, UMG artists and songwriters brought home more Grammys than ever before in our history. You can read more about that here.
Thanks to your day-in, day-out dedication and hard work, we accomplished so much together in 2024 and are positioning ourselves for another great year of success. I’ll sum up some of UMG’s stunning achievements last year and give you a glimpse of what we plan for this year. Our company’s fundamental building block is artist developmentand in 2024, investment in new talent continued to produce spectacular results around the world. Consider the following facts: that UMG broke the two biggest artists in the world last year in Sabrina Carpenter and Chappell Roan; Taylor Swift was the most streamed globally on Spotify, Amazon and Deezer; and Apple Music named Billie Eilish its Artist of the Year. And that a UMG recording artist who is also signed to UMPG as a songwriter had the No. 1 song globally on the year-end lists for both Apple Music (Kendrick Lamar) and Spotify (Sabrina Carpenter). Or that UMG had four of the Top 5 artists globally on Spotify with Taylor Swift (No. 1), The Weeknd, Drake and Billie Eilish; eight of the Top 10 albums (Taylor Swift’s The Tortured Poets Department at No. 1); five of the Top 10 songs (Sabrina Carpenter’s “Espresso” at No. 1), and six of the 10 Most Viral songs (Lady Gaga and Bruno Mars’ “Die With A Smile” at No. 1). Or consider that in the U.S., UMG had all Top 3 label groups according to Billboard (Republic, Interscope and Universal Music Enterprises) not to mention four of the Top 5 artists and eight of the Top 10 albums, including all of the Top 5 – Taylor Swift (No. 1 and No. 2), Morgan Wallen, Noah Kahan and Drake. And on YouTube, six of the Top 10 songs (Kendrick Lamar at No. 1) and two spots on the Trending Topics Top 10 across all content categories in 2024 (Kendrick Lamar and Sabrina Carpenter). You can read more of our remarkable achievements around the world at the end of this note, but as you can already see, in 2024, our momentum only grew. Also, these were achievements not only by a few superstars, but also by dozens of artists from around the world—both developing and established—performing in multiple genres, styles and languages. Achievements like these don’t just happen. They are the culmination of maintaining a clear vision of who we are, what we do and where we’re going, then executing on that vision, maintaining momentum and, of course, at the heart of it all, having some absolutely incredible music to work with. And last year those achievements were greatly assisted by our continuing self-reinvention, reshaping our organizational structure, re-building our teams and refining our strategy. A vision which boldly and, when necessary, quickly adapts to an ever-changing world. For example, in early 2024 we executed on our vision to realign our U.S. label structure, and within months we were operating with greater agility and efficiency. We then saw something exceptional take place: UMG had its best U.S. performance in six years, according to Luminate. I’m confident that our realignment will yield still further momentum around the world and that the achievements of our artists and songwriters—as well as UMG’s success—will reach new heights.In 2024, we continued to lead the media industry in our embrace and advancement of “Responsible AI.” Three recent examples of that initiative include our agreements with SoundLabs, ProRata and KLAY—companies that are taking unique approaches to the rapidly evolving AI space through new technologies that provide accurate attribution and tools to empower and compensate artists.Our leadership also includes our commitment to the enactment of Responsible AI public policies, fighting back against so-called text and data mining copyright exceptions and other misguided and ill-intentioned proposals that would enable what I will euphemistically call the unauthorized exploitation of creators’ work. Instead, we will work towards legislative “guardrails” to ensure the healthy evolution and growth of AI that mutually serves creators, consumers and responsibly innovative technology players.In my note last year, I said that 2024 would see us once again attracting the brightest entrepreneurs, expanding our existing relationships with other such talents and investing more resources into providing a full suite of artist services businesses to independent labels around the world. And we did exactly that. We acquired the remaining share of [PIAS] two years after taking an initial stake in the company and brought its highly respected co-founder Kenny Gates into our family. And we grew our geographic footprint. One example: our partnering with and investing in Mavin Global, whose founders Don Jazzy and Tega Oghenejobo continue to lead that company as well as, going forward, all of UMG’s business in Nigeria.Just last month, Virgin announced it entered into an agreement to acquire Downtown Music Holdings, which includes FUGA, Downtown Artist & Label Services, Curve Royalties, CD Baby, Downtown Music Publishing and Songtrust.The reason so many independent music entrepreneurs actively seek to partner with UMG when they have more alternatives than ever before is that we provide what they’re seeking: the most innovate creatives and finest resources that will advance the careers of their artists and achieve their financial goals within a culture that respects artists and their music. After all, we’re not a financial institution that views music as an “asset.” And we’re not an aggregator that views music as “content.” We are a music company built by visionary music entrepreneurs. For us, music is a vital—perhaps the vital—art form. Artists and the music they create are our lifeblood. We’re proud both to invest in businesses that can and do support today’s leading music entrepreneurs and to advocate for the policies and practices that are designed to protect and grow the entire music ecosystem.And finally, one of 2024’s announcements of which I am proudest is the formation of our Global Impact Team, whose mission is to enact positive change in our industry and in the communities in which we serve. This cross-functional group of executives brings a deep understanding of our global organization and will develop and execute strategies to tackle a variety of critical issues, including: equality; mental health and wellness; food insecurity and the unhoused; the environment; and education. By dovetailing seamlessly with our goals and those of our artists, we can promote and even catalyze beneficial and authentic changes where they are needed. Recently, in the wake of the terrible Los Angeles wildfires, the Impact Team mobilized, offering support to those affected, activating a multi-pronged relief effort to help both our own employees and the broader L.A. communities.Before I get to what lies ahead for 2025, let me first provide you with some context as to the enviable position UMG holds.UMG is a global creative enterprise at the center of an ecosystem of hundreds of digital partners. And while we’ve consistently been the music industry’s leader since the advent of the streaming era—an era whose dawn we were instrumental in ushering in—the leadership posture among our DSP partners has undergone some significant changes. For example, one of our fastest-growing subscription partners, YouTube, is also one of the most recently launched. We expect more inevitable jockeying for the leadership position among standalone platforms as well as among the music services that are divisions of trillion-dollar valuation tech companies.But, even though we are a relative minnow in comparison to a trillion-dollar tech company, the music of our incredible artists and songwriters enables us to exercise outsized influence on the global stage and serve as a critical catalyst in fostering a truly competitive commercial marketplace for music. We will keep using our position to promote a healthy and sustainable music ecosystem that benefits all artists at all stages of their careers.Now to 2025 … starting with our artist-centric strategy:When we introduced that strategy two years ago, we immediately went to work with our partners to make it a reality. In a matter of months, we reached agreements in principle on a number of issues: increasing the monetization of artists’ music; limiting the gaming of the system by protecting against fraud and content saturation; and focusing on the value of authentic artist-fan relationships, inspiring the development of more engaging consumer experiences, including specially designed new products and premium tiers for superfans. Platforms as diverse as Deezer, Spotify, TikTok, Meta and most recently Amazon, have adopted artist-centric principles in a wide variety of ways—principles that benefit the entire music industry from DIY to independent to major label artists and songwriters.Our work in driving these artist-centric principles will continue in 2025. Not only do we want to ensure that artists are protected and rewarded, but we’re also going after bad actors who are actively engaged in nefarious behavior such as large-scale copyright infringement. To that end, we’re setting forth the best practices that every responsible platform, distributor and aggregator should adopt: content filtering; checks for infringement across streaming and social platforms; penalty systems for repeat infringers; chain-of-custody certification and name-and-likeness verification. If every platform, distributor and aggregator were to adopt these measures and commit to continue to employ the latest technology to thwart bad actors, we would create an environment in which artists will reach more fans, have more economic and creative opportunities, and dramatically diminish the sea of noise and irrelevant content that threatens to drown out artists’ voices.In September, during our Capital Markets Day presentation, I described what would constitute the next era of streaming—Streaming 2.0. Built on a foundation of artist-centric principles, Streaming 2.0 will represent a new age of innovation, consumer segmentation, geographic expansion, greater consumer value and ARPU growth.I’m pleased to report that the Streaming 2.0 era has arrived. We recently announced a new agreement with Amazon that includes many of these elements, and just last week, we announced a multi-year agreement with Spotify. We expect that similar agreements with other major platforms will be coming in the months ahead. In 2025, we’ll also be reaching out in new ways to engage fans. In addition to listening to their favorite artists’ music, fans want to build deeperconnectionsto artists they love. Last year, in accelerating our direct-to-consumer and superfan strategy, we formed a strategic partnership and became an investor in NTWRK and Complex to build a premium live-video shopping platform for superfan culture. This year will see us expanding our product offerings to fans, as we continue to redefine the “merch” category and create superfan collectibles and experiences. Some of this will be done through our current partners and some through our own D2C channels, which we will continue scaling to meet the massive appetite of fans. After years of working to aggressively build a healthy commercial environment for artists and music—one in which we have reached approximately 670 million subscribers—we will be laser-focused in 2025 on continuing to expand the ecosystem and improve its monetization. As we did in 2024, this year we will continue to aggressively grow our presence in high potential markets through organic A&R, artist and label services agreements, and M&A.The work that lies ahead of us will bring challenges, no doubt about that. But we will meet those challenges with pride and a sense of privilege, because no other form of creative expression is more fundamental to human existence than music. By that, of course, I mean real music created by human artists. So let me leave you with this:Some will try to disrupt our business or criticize us. That we know. It comes with being in the most competitive market that music and music-based entertainment has ever seen, and it comes with being the industry’s leader and primary driving force. But our vision and our ability to consistently execute gives us the momentum to continue to succeed and grow. Our global worldview and the internal competition fueled by our entrepreneurial spirit breeds innovation. Our passion for finding new and better ways to bring music to the world will keep us ahead of competitors and new entrants alike. We’ll continue to do what we do because what we do and how we do it is impossible to replicate. Our culture and our people—you—are our superpower.I can’t wait to see and hear what this year brings, and I am thrilled to be on this journey with you.Let’s go!Lucian