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After months of fighting in court, Jay-Z and Bacardi have decided it’s all cognac — er — water under the bridge.
The superstar rapper and the spirits giant said Friday they had reached an agreement to end bitter litigation over their D’Ussé Cognac brand. Under the deal, Bacardi will take over a “majority interest” in the company, which was previously split 50-50 between the two stakeholders.
The exact terms — what percentage Bacardi bought and how much Jay-Z was paid for it — were not disclosed, beyond a statement that the star would “retain a significant ownership stake” after the deal. Earlier filings in the case suggested the privately-held company could be worth as much as $5 billion.
In a statement, Jay-Z (real name Shawn Carter) said he was “excited to renew this partnership with Bacardi.”
“Growing D’Ussé over the past decade from an idea to one of the fastest-selling spirits in history has been a blessing,” the rapper wrote. “The next phase of this journey will further cement D’Ussé’s legacy as one of the world’s most respected brands.”
Until recently, Jay-Z was not at all excited to renew his D’Ussé deal with Bacardi. The rapper has spent the last year in a sprawling legal battle aimed at exiting the partnership, spanning at least four lawsuits in two states as well as private arbitration cases.
The dispute centered on Jay-Z’s exercise of a so-called “put option” — a legal mechanism in the joint venture’s operating agreement that, when triggered, required Bacardi to buy out his half of the business. Once invoked, the two sides were supposed to negotiate in “good faith,” exchange information and agree on a fair price for Bacardi to pay.
The rapper triggered the put option in September 2021, but the two sides quickly came to loggerheads over how much his half of the company was worth. The rapper suggested his half of the business was worth $2.5 billion; Bacardi said the number was just $460 million.
That core dispute eventually led to two private arbitrations, as well as lawsuits in both New York and Delaware courts. The two sides battled over what information should be used to fairly value Jay-Z’s stake, and he later accused Bacardi of “lowballing” and “stonewalling” him to get a cheaper price.
In November, unsealed court documents revealed key details of the months that had led up to the dispute.
For instance, when Bacardi offered $460 million for Jay’s half of the business, the hip-hop magnate’s attorneys said he responded by flipping the script. Rather than continue to invoke his put option requiring Bacardi to buy him out, they said he offered to go vice-versa and buy out Bacardi’s share for $1.5 billion — far more than the figure Bacardi had just cited as the fair value of half the company.
When Bacardi turned down that offer, the legal battle kicked off.
JKBX, a start-up offering retail investors fractional shares in thousands of hit songs, is partnering with electronic market-making firm GTS Securities for U.S. equity trading, the companies said in a joint statement Friday (Feb. 3).
The partnership is a sign that investing in songs and catalogs rights — a burgeoning asset class so far open to only the biggest, most monied music fans — is taking another step toward the mainstream. By teaming up with the electronic market maker GTS, JKBX is positioning itself to have one of the most prominent platforms when it launches its public offerings in late 2023.
Pronounced “jukebox,” chief executive Scott Cohen says JKBX has acquired $1.7 billion in music rights and is aiming to acquire $4 billion in rights before their LLC offerings go live. Once those regulation a+ initial filings are registered with the U.S. Securities and Exchange Commission, everyday investors will be able to buy bite-sized investment stakes in songs by current artists and back catalogs belonging to rock legends for a price starting at around $10.
“A handful of private equity firms, multinational corporations and major labels control the most valuable music rights in the world,” Cohen said in the statement. “JKBX’s platform will allow these entities and other significant rights holders to unlock the true value of these assets by offering them to retail investors to buy and sell in a regulated marketplace.”
Cohen, who co-founded The Orchard and was previously Warner Music Group’s chief innovation officer, last year named Matt Brown, formerly of Citadel and Ripple, as JKBX’s chief technology officer tasked with building out the tech powering the platform. With a high-frequency quantitative trading firm, GTS is responsible for nearly $13 trillion of market capitalization — or 3-5% of the daily cash equities volume in U.S. stock markets — making it a designated market maker. Through the partnership, JKBX will gain access to GTS’s technology, a competitive digital advantage in accessing U.S. public markets.
“GTS excels in making markets for every major financial asset class and providing enhanced liquidity through sophisticated, real-time pricing,” said GTS Securities co-founder/CEO Ari Rubenstein in a statement. “This same expertise can be applied to music royalties, which represent the next exciting tradeable asset class.”
From 2001 to 2004, the music industry produced a steady stream of new artists with big hits: At least 30 first-timers landed in the top 10 of the Billboard Hot 100 each year. In 2022, only 12 new acts managed the feat (plus a pair of songs from the Encanto cast). “This is the hardest time to break through and market music,” one manager tells Billboard.
It’s not for lack of trying: In recent years, labels have been signing acts at whirlwind speed, yet this surge of new signings hasn’t yet amounted to a surge of new stars. And some executives worry that the dry spell is partly due to the recent wave of signings, claiming that the majors have inked deals at a rate beyond their ability to provide service.
“The over-signing of [the] COVID [era] is now a pain point at every label,” says one manager with multiple acts on majors. If staff growth doesn’t keep up with roster growth, artists don’t necessarily get the care they need to level up. “No one has enough product managers. So they’re all getting crushed.”
“It is not humanly possible for a product manager — the person responsible for the story of the artists, the story of the music — to creatively, strategically and efficiently implement marketing for 20 artists at one time,” says Craig Baylis, a former major-label product manager who runs the boutique publishing company Eighth & Groove. Record companies often “aren’t getting the best out of [their staff] because they are ramming them with all of these artists that they’re not even getting the chance to know.”
All the major-label groups have broken new artists in the last few years, of course, whether it’s Olivia Rodrigo (Universal Music Group), Steve Lacy (Sony Music) or Zach Bryan (Warner Music Group). In a January letter to staff, UMG chairman/CEO Lucian Grainge reaffirmed the company’s commitment to this task, writing, “We diligently work, day in and day out, to break our artists and songwriters.” While speaking with investors last year, Sony Music chairman Rob Stringer said “creative staff,” which encompasses A&R, marketing, product managers and artist relations, had increased at a faster rate than artist roster size, helping launch new acts onto the streaming charts.
Roster size numbers are difficult to come by, but in 2017, a study organized by the RIAA found that major labels had signed 658 artists that year, up from 589 in 2014. Although the RIAA hasn’t released a follow-up, many lawyers and executives say the rate of signings has climbed since that report. Two senior executives believe the number of deals is now as high or higher than it has ever been; Sony Music told investors that new signings rose 32.4% between 2017 and 2021.
The recent wave of signings is in part a byproduct of streaming becoming the main revenue source at the majors. The biggest streaming services pay rights holders according to their share of total plays on the platform. But low-cost distribution has brought a “vast and unnavigable number of tracks” into the music ecosystem, as Grainge put it in his staff memo. Streams for those tracks eat into big record companies’ piece of the pie. If tens of thousands of new tracks are added to streaming services daily, “then [major-label] market share is going to be diluted by default,” Stringer explained last year.
Signing more is a way of fighting back. “For major labels, independents and distributors, it’s all about volume of signings now,” says Andreas Katsambas, who was a senior vp at BMG before joining the analytics company Chartmetric as president/COO.
This puts major labels in a bind: They need to sign and release more to keep market share up, but this makes it harder for each artist signed to get the attention they need to break through.
“Intelligent marketing is not going to be a facet of developing artists today if record companies are going to continue doling out artists, singles and projects at the frequency that they do,” says Baylis. “There is a high level of fatigue that product managers are experiencing.”
A former major-label employee who left to go into management agrees that product managers and marketers tend to be “completely overworked.” “A digital person may have 60 projects,” he adds. “It’s crazy.”
Mike Caren, founder of the publishing company and independent label APG (and former president of global A&R at WMG), points out that “even the best marketer is limited by the number of hours in the day and days in the week.” He adds: “Executing an artist’s vision is time-intensive, and the best artists challenge their teams with unique ideas that take a lot of time to properly deliver. Capacity is a key metric to determine when choosing a label or team.”
This may be especially true today, when the ability to grow audiences seems increasingly like the most important service a label can offer. Artists no longer need to turn to majors for national and international distribution or studio-quality recording equipment; now, anyone can get those things from their laptop while sprawled on the couch. Instead, “gaining awareness is the most challenging thing for anyone that releases music,” Katsambas says. “Awareness more than anything else, and then engagement and retention.”
Are those goals compatible with high-volume signing? “It’s hard creating a game plan for longevity for some of these artists that are really talented and deserving,” Baylis says, “because executives are charged with just feeding the beast called the DSPs.”
After nearly 60 years in the music business, there’s precious little Elton John hasn’t already achieved. The icon has sold millions of records, toured the globe countless times and even saw the biopic based on his life, Rocketman, win honors at the Academy Awards and Golden Globes. But this week he added another accolade to his extensive collection, and one that sets a mind-boggling record: his multiyear Farewell Yellow Brick Road Tour became the highest-grossing tour of all time, and the only one to surpass $800 million in gross, passing Ed Sheeran’s Divide tour for the title.
John’s outing isn’t even over yet, and there’s still the possibility that this tour crosses even higher benchmarks before all is said and done. But it’s already a crowning achievement for Debra Rathwell, the executive vp of global touring and talent at AEG Presents, who promoted the trek. And the milestone earns her the title of Billboard’s Executive of the Week.
Here, Rathwell breaks down how the tour came together and became so successful, the strategy behind moving up from arenas to stadiums midway through, the challenges posed by the pandemic and the lessons learned from such a gigantic undertaking. “I’m not sure that there will ever be another artist like Elton John, or a tour quite like the FYBR Tour,” she says. “But for any artist aspiring to achieve this level of success, this tour is probably the best example of what comes out of hard work and a love of performing: get out there and share your music with your audience.”
This week, Elton John’s Farewell Yellow Brick Road Tour became the highest-grossing tour in history, and the first-ever tour to gross $800 million. What key decision did you make to help make this happen?
This all started to come together six years ago, back in 2017, a full year before the first date of the Farewell Yellow Brick Road Tour. Jay Marciano (AEG Presents chairman/CEO), Howard Rose (John’s longtime agent), Keith Bradley (John’s tour director), Donna DiBenedetto (AEG Presents vp), Barrie Marshall (Marshall Arts), Doris Dixon (Marshall Arts) and myself met in Las Vegas to begin the job of routing and shaping the first half of tour. At that time, Elton John was playing the final shows of The Million Dollar Piano residency at the Colosseum.
Once we had our plan together, Elton held a press conference in New York in January 2018 to officially announce his retirement from touring, but not before he had embarked on a final run of 350 shows over three years, beginning that September. He wanted to travel around the world to say farewell to his fans. We all knew right then that this would be the greatest tour of all time, and that it was our job to back up Elton and deliver the goods.
No single person can take credit for the monumental success of the FYBR tour — apart from Elton John, of course. But if I had to describe my small part of it over these past five years, it’s been kind of a “utility player” role. Depending on the day, or even minute, it’s coach, captain or just “the bossy girl with the clipboard” who keeps things on course.
Elton spent the first few years of this tour in arenas, before moving up to stadiums this past year. Why did you guys go that route?
For several years prior to the first arena show in Allentown, Penn. (Sept. 18, 2018), Howard Rose had booked shows in smaller secondary markets, which created demand in the major markets. That demand, combined with the news of the retirement, created demand for multiple shows in those markets. We repeated this strategy several times during the tour. But we also made sure to return to many of the same smaller secondary markets; it was important for Elton John to bid a final farewell to as many of his fans as possible.
It was always the plan that the final lap of the FYBR tour would be in stadiums. This was important to Elton and mapped out in the planning stages. Getting them organized and on sale during COVID turned out to be our biggest challenge.
Given the demand of an iconic performer’s final tour, how did you approach setting this up differently than you would have any other tour?
The tour was divided into two parts that we internally referred to as “Round One (179 shows)” and “Round Two (153 shows).” Round One kicked off with that Allentown show and ran all the way through to Sydney on March 7, 2020. Of course, we had no idea that the world would be shutting down four days after we wrapped Round One. And we certainly never imagined that Round Two wouldn’t be wrapped until summer 2023.
The tour also encompassed the pandemic. How did that affect your plans, and how did it force you to adapt once you got back on the road?
When we resumed touring in January 2022, we had very strict COVID protocols in place for all members of the touring team and local venue staff. With some minor adjustments in the routing, we were able to reschedule shows. Unfortunately, we had to cancel the two sold-out shows in Montreal and the two sold-out shows in Toronto due to government COVID restrictions. We also had to cancel some entire territories altogether; we always intended to bring the FYBR tour to Asia and South America, but two years of COVID delays and the rescheduling that followed made that impossible.
We also made the decision that the ticket prices for the stadium shows would be pretty similar to the arena shows — we were in a situation where rescheduled arena shows were on sale at the same time we were putting stadium shows on sale.
How has touring changed overall given the events of the past few years? And how has this tour itself evolved across the years that it’s been going?
The interesting thing to watch was that as the FYBR tour continued, the audience got younger. Elton John broadened his fan base over the life of the tour. Rocketman and his biography Me: Elton John were big moments for us. And The Lockdown Sessions album released in October 2021 was of course one more thing that connected him with a new generation.
The public demand for tickets increased exponentially as the tour was coming to an end. It actually got quite frenzied as the final shows approached in every market. We were all so excited that we were able to sell out three Dodger Stadium shows in Los Angeles, culminating with the livestream of the concert on Disney+.
What have you learned from this long-running Elton tour that you can apply to the rest of your clients?
First and foremost, the initial messaging and announcement of a tour is so important. It really is critical to its success. And the messaging that Elton John conveyed to his fans at that press conference all the way back in 2018 was front and center at all times.
Also, this tour really drove home the importance of having a strong team around you. I have loved every minute being a part of this team. It has been the greatest pleasure of my professional career to be involved with Sir Elton John, David Furnish, Luke Lloyd Davies and all of the wonderful people at Rocket Entertainment. Keith Bradley is the finest tour director and this tour would not have made it around the world for five years, in its many shapes and forms, without him. Many cherished hours were spent with Howard Rose and our touring partners Marshall Arts (Barrie Marshall and Doris Dixon) for the U.K. and Europe and Michael Chugg and Frontier for all of the shows in Australia and New Zealand.
Plus there’s our AEG Team: Andrew Sharp and John Merritt who have been traveling around the world for these past five years — apart from when they couldn’t — and Donna DiBenedetto, my promoting partner who keeps things organized. And of course, Jay Marciano’s leadership and experience has been invaluable. It’s just an incredible group of people from top to bottom.
I’m not sure that there will ever be another artist like Elton John or a tour quite like the FYBR Tour. But for any artist aspiring to achieve this level of success, this tour is probably the best example of what comes out of hard work and a love of performing: get out there and share your music with your audience.
To sum up: Start each tour with a clear message and intention, and a collaborative mentality is imperative. A successful tour requires lots of teamwork on the part of the agency, management, promoter and artist. Think big, and think worldwide. And always be patient. When I first meet with the extraordinarily talented artists with whom I get to work, I often joke that I will negotiate the rights to their 20th Anniversary Tour right then and there. But it’s not really a joke. That’s how much I believe in them.
LiveCo, a new concert promotion company that combines BASE Entertainment, Premier Productions, Icon Concerts, Rush Concerts and Peachtree Entertainment, launched with a team that includes Brian Becker and Mark Maluso (BASE Entertainment), Michael Pugh and Shane Quick (Premier Productions), Paul Meloche (Icon Concerts), Jacob Reiser (Rush Concerts) and Bradley Jordan (Peachtree Entertainment). “Designed to help expand the live entertainment industry,” according to a press release, LiveCo represents talent and productions including Jimmy O. Yang, Criss Angel, Cocomelon Live, Cody Johnson, Jo Koy, Dude Perfect, Zach Bryan, MercyMe, Elevation Worship and Gabriel Iglesias.
BMI announced several key promotions within its creative team. Rafael Martinez and John Ellwood were appointed to the newly created roles of vp of strategy and business affairs, creative and assistant vp of strategy and business affairs, creative, respectively. Reema Iqbal was named executive director of creative, film, TV & visual media. LuAnn Davidson was promoted to executive director of creative administration. Nina Carter was promoted to senior director of creative, partnerships & events. Jon Miller was named director of creative, Europe. Lastly, Katie Kilgallen and Reginald Stewart were both promoted to director of creative. Ellwood can be reached at jellwood@bmi.com, Iqbal can be reached at riqbal@bmi.com, Carter can be reached at ncarter@bmi.comm, Miller can be reached at jmiller@bmi.com and Kilgallen can be reached at kkilgallen@bmi.com.
Todd Moscowitz‘s Santa Anna label appointed Dave Anderson as GM and Carlos “Los” Orgando as vp of promotion. Anderson, who previously served in vp of commerce roles at Geffen and Warner Records, will oversee Santa Anna’s marketing, promotion and digital teams. Orgando, who will assist the label in developing and executing its promotion strategy across several formats, previously held the vp of promotion role at both Geffen and Warner Records. Elsewhere, Derek Lee added the title of CFO of Santa Anna to his existing title of senior vp & CFO at Moscowitz’s Alamo Records.
William “Andy” Anderson was promoted to chief revenue officer at American Urban Radio Networks (AURN); he was previously president of sales. In the role, Anderson will help maximize revenue opportunities, product acquisitions and original content creations for the company. Anderson previously served as director of urban/Canadian advertising at Billboard. (via Radio Facts)
Markus Holzherr was appointed to the newly created role of chief business officer at Warner Music Central Europe. In his new role, Holzherr will oversee the finance, new business, research & analytics and legal departments. He comes from DFB GmbH & Co. KG, where he served as managing director of finance and controlling.
Rob Gross was hired as senior vp of label services at The Syndicate. In the newly-created role, Gross will provide full-scale project management for album releases and sales for all aspects of the company’s services in radio, marketing and PR. Most recently a partner at Shark Attack, he brings clients Warner/Rhino Records and Dine Alone Records to The Syndicate. Gross can be reached at gross@thesyn.com.
Fresh N Sassy Productions CEO/founder Janishia Jones launched ENCORE Music Tech Solutions, a music tech consultancy that signed EMPIRE Publishing as its first client. Under that deal, ENCORE will work with EMPIRE Publishing to scale and improve the publisher’s performance across royalty payment, reporting, synch and other complex systems. ENCORE has already “helped create crucial systems” for EMPIRE Publishing including solutions to better manage agreements, financial accounts and copyrights, according to a press release. Jones can be reached at Info@encoremusic.tech.
Liberty Wilson was promoted to vp of international marketing at Warner Music UK, advancing from her previous role of international marketing director. She’ll continue reporting to the label’s senior vp of international marketing, Victor Aroldoss.
Human Re Sources hired Junko Takeda as vp. Based in Los Angeles, Takeda will oversee day-to-day label relations of Human Re Sources’ Los Angeles and Atlanta operations and continue building the company’s roster of artist clients with support from The Orchard. Takeda most recently served as head of A&R operations at Warner Chappell Music.
The National Independent Venue Foundation (NIVF) appointed Carl Atiya Swanson as executive director. In the role, Swanson will play a key role in “expanding and solidifying NIVF’s programmatic vision,” according to a press release, collaborating with the executive leadership of the National Independent Venue Association (NIVA) and NIVF “to preserve and nurture the ecosystem of independent live performance venues, festivals and promoters throughout the U.S.” He will work to strengthen the independent venue sector via economic development initiatives and workforce development programs while managing critical services including emergency relief funding. Swanson was previously associate director at Springboard for the Arts.
Jacee Badeaux and Halle Bartlett were promoted to senior creative director of A&R and coordinator of A&R, respectively, at Big Yellow Dog Music. In his new role, Badeaux will continue to curate activity for the company’s writers, artists and producers; he was previously creative director. Bartlett, who was previously creative assistant, will be responsible for calendar management, writer coordination, song pitching and social media for Big Yellow Dog songwriters. Badeaux can be reached at Jacee@bigyellowdogmusic.com and Bartlett can be reached at halle@bigyellowdogmusic.com.
Stephanie McGuire was appointed senior A&R international at CTM Publishing. She will continue to guide CTM’s composers, authors and producers while also focusing on fostering more international collaborations and createingmore overseas opportunities for the company’s roster. McGuire can be reached at Stephanie.mcguire@ctm.nl.
John Page joined Oak View Group (OVG) as senior vp of Acrisure Arena, the Coachella Valley Firebirds and OVG360 Facilities. In the role, he will oversee the management and oversight of all three entities. Based in Palm Springs, Page reports to Coachella Valley Firebirds president Tod Leiweke, OVG business development president Francesca Bodie and OVG360 president Chris Granger. Prior to joining OVG, he served as president of Spectra, which OVG acquired in November 2021.
Nashville’s Society of Leaders in Development (SOLID) announced the newly elected members to its 2023 board of directors: President Erin Pettit (Wiles + Taylor), vp Rio Van Risseghem (The Orchard), secretary Jenna Smith (SESAC) and treasurer Ryan Cunningham (ONErpm). Additionally, Grayson Flatness (Sounds Good) was named alumni president of the SOLID Alumni Board.
Hyperreal — the tech company that develops “digital twins” for artists and other creators, allowing them to control their digital identities in the metaverse and beyond — named Scot Barbour chief technology officer and Tim Coleman vp of digital humans. Meanwhile, the company’s chief innovation officer, Sergi Sagas, joined the Hyperreal board of directors. Barbour, who was previously head of production and digital DNA acquisition, will drive the company’s technology roadmap and partnerships and supervise physical and virtual production for Hyperreal. Coleman, who joined Hyperreal in 2020, will head up the effort to build the company’s “highly-detailed, performance ready, photoreal digital avatars known as ‘HyperModels,’” according to a press release.
The organizers of Coachella are suing the creator of a Washington D.C.-based music event called “Moechella,” accusing the smaller group of violating the trademark rights to the giant yearly festival.
Filed after months of public dispute with Justin Johnson over the name of his go-go music events, Coachella’s lawsuit says he’s continued to use the allegedly infringing name unabated — even announcing last month that he’s planning 10 new events in the coming year.
“Despite plaintiffs’ repeated efforts to avoid litigation, defendants have made clear that they have no intent of ceasing their infringing activities, forcing Plaintiffs to file this action,” wrote lawyers for Goldenvoice LLC, the AEG subsidiary that operates the California festival, in a complaint filed Tuesday (Jan. 31) in D.C. federal court.
In an interview with Billboard on Friday, Johnson said he’d been surprised to learn of Coachella’s lawsuit because he said he’d already agreed with the company’s lawyers that he would “pivot away” from the “Moechella” name and had been continuing to do so.
“These events are protests that have spawned out of the gentrification of D.C. and the erasure of the culture in this city, not festivals for monetary gain,” Johnson said. “It’s surprising that a multi-billion dollar company is approaching a non-profit organization like this.”
The new case is just the latest trademark clash for Coachella. In 2021, the festival sued Live Nation for selling tickets to an event called “Coachella Day One 22.” Last year, Coachella sued a West African company over an event called “Afrochella,” then later sued a California business park that has been using the name “Coachillin.”
An attorney for Coachella did not immediately return a request for comment on the new case.
According to Washington City Paper, Moechella started in 2019 as musical protests organized by Johnson and others after residents of a luxury apartment building complained about go-go music that was being played outside. The name, according to that article, is a portmanteau of “moe” — D.C.-area slang for a friend — and Coachella.
The dispute with Coachella first became public last summer, when the festival filed legal documents seeking to block Johnson from registering the name as a federal trademark. In response, Johnson quickly dropped his trademark application, but publicly vowed that he was “not going to stop using the name” even after Coachella’s complaints.
In the new lawsuit, Coachella’s attorneys said the company had no problem with the Moechella event itself — only with the use of a title that seems to clearly play on the better-known festival’s name.
“Plaintiffs have no objection to Defendants’ lawful activities, including the hosting of live music and entertainment events,” the company wrote. “Plaintiffs’ only objection is to the Defendants’ infringing and confusing use of the term ‘Moechella.’”
The new case also named Kelsye Adams, a woman who appears to be the executive director of the group that organizes Moechella. She could not immediately be located for comment on Friday.
In an effort to underscore the argument that Coachella doesn’t want to be confused with the smaller event, the festival’s lawyers took the notable step of citing a recent tragedy.
In June, a 15-year-old boy was killed and three others shot when gunfire erupted at Moechella. In a statement to the media at the time, D.C. mayor Muriel Bowser criticized the fact that the event “did not have any proper planning for the number of people who were here and with guns involved.”
In Tuesday’s lawsuit, Coachella said the shooting was an example of the kind of “reputational harm” that can be caused if consumers think the bigger festival has somehow approved of Moechella.
“Plaintiffs contend that incidents such as the shooting death and melee cause harm to Plaintiffs, particularly given Defendants’ infringing use of similar looking and sounding ‘Moechella’ marks,” Coachella’s lawyers wrote.
In speaking with Billboard on Friday, Johnson said he viewed the linking of the shooting directly to Moechella as “unfair,” arguing it had actually occurred after the event ended. But he reiterated that he would adopt a new name, which he says he’ll use in the future to continue drawing attention to gentrification, gun violence and other issues facing D.C.
“This name was something that was chosen by the people, so we’re going to do a call to action to change the name, just like a sports team would do,” Johnson said, alluding to the recent high-profile name change for Washington D.C.’s professional football team.
“They named it once, so they can name it again,” Johnson said.
Five years ago, award-winning electronic music DJ-producer Jesse Rose and hit songwriter-producer Jesse Rogg decided to launch a global agency to represent creative directors. “We just realized that there was no structure to the world of creative direction,” says Rogg. Having previously worked well in the studio together, Rose says they figured they would work just as well as business partners and, in 2018, formed the Original Creative Agency.
Today, OCA represents over 50 creative directors — or “architects,” as Rose and Rogg say — with clients including Beyoncé, Kendrick Lamar, Christina Aguilera, Tame Impala and Steve Lacy. And while the agency’s creatives work across mediums from music videos to styling to album art, looking at the year ahead, the pair predicts the live space will become a much bigger part of business. “Now people are coming to us and asking us to produce their tours, starting from the creative,” says Rose. “Which makes sense because our job is to make a story for a show.”
The two are confident that storytelling — both on and offstage — will be key to 2023’s most successful treks. Rose recalls speaking with Tame Impala’s Kevin Parker ahead of the band’s Slow Rush tour, initially planned in 2020, about how to make the outing feel fresh in 2022. Their solution was to build an entire campaign around the tour. Creative director Ryder Ripps came up with the idea for Rushium, a fictitious pharmaceutical company pushing “rush pills” that appeared on posters, merchandise and the sides of trucks. As for Lamar, the pair praises the way his 2022 Glastonbury headlining set (creative-directed by Mike Carson, along with Lamar and Dave Free) “told a story through movement rather than over-the-top stage design,” relying on two groups of dancers, says Rose. Most effective, he recalls, was the finale, during which Lamar chanted, “Godspeed for women’s rights,” as blood dripped from his thorny crown.
At a time when the live space is more competitive than ever, Rogg adds that such effective campaigning and messaging help set a tour apart — and cites a significant return on investment, too. Plus, adds Rose, the approach has recently helped OCA form relationships with nearly every major agency. “Artists and creatives — the great ones, at least — are always the ones coming up with what’s next,” says Rogg. “So we’re quite mindful of only representing the folks who are those trendsetters. They understand the bigger picture — and not just over one campaign, but across a whole career.”
This story will appear in the Feb. 4, 2023, issue of Billboard.
Apple on Thursday posted its first quarterly revenue drop in nearly four years after pandemic-driven restrictions on its China factories curtailed sales of the latest iPhone during the holiday season. The company’s sales of $117 billion for the October-December period represented a 5% decline from the same time in the previous year, a deeper downturn than analysts had projected.
Despite the downturn — which marks Apple’s first year-over-year decrease in quarterly revenue since the January-March period in 2019 when sales also slipped 5% — the company’s Apple Services division actually set a new revenue record. The company said that combined, Apple TV+, Apple Music, Apple Arcade and others generated $20.8 billion for the three months ending Dec. 31, up from up from $19.5 billion a year earlier. Apple said that it now has more than 935 million paid subscriptions across its services, up from more than 900 million paid subscriptions reported in the previous quarter.
Apple’s profit also eroded during the past quarter, even though the Cupertino, California, company remained a pillar of prosperity. Earnings totaled $30 billion, or $1.88 per share, a 13 decrease from the same time in the previous year. Those results also missed a target of $1.94 per share set by analysts polled by FactSet Research.
Investors reacted to the letdown by initially driving down Apple’s stock by nearly 5% in Thursday’s extended trading. But management remarks made during a conference call with analysts raised hopes that Apple’s disappointing performance may have been a mere hiccup, paring the decrease in the company’s shares to less than 1%.
Apple’s rare stumble came against a backdrop of renewed investor optimism about tech’s outlook for this year, helping to spur a 17% increase in the sector’s bellwether Nasdaq composite index so far this year.
But now Wall Street seems likely to reassess things in light of Apple’s latest results and ongoing worries about a potential recession in the wake of rising interest rates aimed at tamping down inflation, said Investing.com analyst Jesse Cohen.
With Google also disclosing a year-over-year quarterly decline in its digital ad sales on Thursday alongside Apple’s disappointing performance, Cohen said it’s clear there are “several challenges the tech sector faces amid the current economic climate of slowing growth and elevated inflation.”
Despite the quarterly downturn in its fortunes. Apple hasn’t signaled any intention to resort to mass layoffs — a stark contrast to its peers in technology. Industry giants Alphabet, Microsoft, Amazon and Meta Platforms have announced plans to jettison more than a combined 50,000 employees as they adjust to revenue slowdowns or downturns caused by people’s lessening dependence on the digital realm as the pandemic has eased.
“We manage for the long term,” Apple CEO Tim Cook told analysts during the conference call. “We invest in innovation and people.”
Cook had tried to brace investors for tougher sledding in late October when he warned of “increasingly difficult economic conditions” heading into the holiday season. Then, just a few days later, Apple cautioned that China’s attempts to clamp down on the spread of COVID was affecting its production lines and would prevent meeting all the demand for the premium iPhone 14 models during the holidays.
That contributed to an 8% decrease in iPhone sales from the previous year to $65.8 billion in the most recent quarter.
Cook indicated Apple’s supply headaches are now over, assuring analysts that “production is now back where we want it to be.”
In another positive sign, Apple also disclosed that it now has more than 2 billion iPhones, iPads, Macs and other devices in active use for the first time. That is likely to help Apple sell more digital subscriptions and ads, helping to fuel long-term revenue growth.
David Bither has something on his mind. Sitting at his desk at the Warner Music Group’s midtown Manhattan offices, he pulls up a recording he heard the night before on SiriusXM’s Beatles Channel: accomplished jazz pianist Brad Mehldau performing his solo interpretation of “I Am the Walrus,” off his upcoming album of Beatles covers out Feb. 10. It’s the last minute of the song Bither keeps coming back to: how Mehldau teases out the melodies, takes the song to new places that seem at once completely disconnected from the acid-infused silliness of John Lennon’s original and at the same time still retaining its pop essence.
It’s a Friday afternoon, which in these post-pandemic days means there are few, if any, others in the building. But Bither is here, as he has been for decades, manning the ship for Nonesuch Records’ eclectic, intensely artistic roster of musicians. His office is bursting with vinyl records, and plaques and posters line the walls and the floor: Emmylou Harris, the Velvet Underground, Steve Reich, artists who have influenced him deeply, on both a personal and professional level. It’s no wonder his focus is, at all times, on the music, which filters out through his open office door into the building’s hallways.
That focus on the music, and the wildly different ways that music can be expressed, has paid off more than ever this year: at the upcoming 65th annual Grammy Awards, Nonesuch — the label at which Bither has worked officially since 1995, unofficially since 1986, and of which he became president in 2017 — received 15 nominations, the most in the label’s 59-year history. And those nominations run the gamut of genres: rock (The Black Keys), blues (Ry Cooder and Taj Mahal), folk (the Punch Brothers), jazz (Cécile McLorin Salvant; and Joshua Redman, Brad Mehldau, Christian McBride & Brian Blade), contemporary instrumental (Mehldau), chamber music (Caroline Shaw), historical (the 20th-anniversary edition of Wilco’s Yankee Hotel Foxtrot) and bluegrass (Molly Tuttle). Reflecting the label’s dedication to presentation, both musical and physical, there were nominations for producer of the year, non-classical (Dan Auerbach), best arrangement, instruments and vocals (McLorin Salvant) and best album notes (Bob Mehr for the YHF box; Fernando Gonzalez for Astor Piazzolla box set The American Clave Recordings). Most shocking of all, there was a best new artist nomination for Tuttle, the first bluegrass artist to ever receive such recognition.
It’s an impressive haul for a label that employs just 12 staffers in the States and three in the U.K., and one that rarely, if ever, traffics in the music mainstream. But it’s also a testament to Bither’s role as a figure who, as his predecessor Bob Hurwitz did before him, stands up and provides a platform for artists to express themselves in many forms, regardless of how many streams they may rack up or records they may sell.
“It’s just keeping your ears open to what’s going on and realizing there’s a lot of doors out there to open, and to be open to that and be casting the net as wide as we can,” he says, reflecting on the breadth of those nominations. “But with the kinds of music we’ve been involved in, I don’t think that 20 years ago we could have been nominated in all those categories. They didn’t all exist then, but we weren’t making records in all those places. Now, I don’t think there’s a category that would be off-limits to us.”
Nonesuch has rarely been beholden to a specified lane. Founded in 1964 by legendary executive Jac Holzman as a budget classical label, the imprint was led for more than a decade by Tracey Sterne, who established its classical bonafides while expanding into indigenous music from around the world. The label was sold to Warner in 1970 and, in 1984, was shifted to fall under Elektra Records boss Bob Krasnow, who hired Hurwitz to run a newly-reimagined Nonesuch — one that quickly expanded into a home for contemporary composers, jazz artists and musicians from all over the world. Bither, who had a background in music journalism and performance arts centers like the Brooklyn Academy of Music, was working at WMG parent Warner Communications at the time and established a rapport with Hurwitz and his marketing chief Peter Clancy — enough so that when Krasnow needed a new head of international for Elektra, Hurwitz recommended Bither, despite the fact that he had no experience in the record business.
“There were a few eyebrows raised for sure, and I give Bob Krasnow credit forever for taking that risk,” Bither says. “They would do conventions every year of all the labels with presentations, and I was at the big international meeting at Montreux within two weeks; I didn’t even know what was coming out on Elektra. We went on a road show to Tokyo, Hong Kong, Sydney, and I was going to be presenting Elektra’s 1987 slate of releases. So that’s how I got started.”
Bither learned quickly, and after a few years running international he shifted to domestic marketing, then to the GM role, working on projects for Metallica, Tracy Chapman and 10,000 Maniacs, among others. But he had maintained an informal advisory role at Nonesuch, with Hurwitz sliding him $1 a year for his input prior to him taking the Elektra job and Bither bringing artists to Nonesuch over the years. So when Warner went through an executive upheaval in the mid-1990s, Hurwitz brought Bither on full-time — a partnership that continues to this day, even as Hurwitz stepped back into a chairman role in 2017 and relinquished the label presidency to Bither.
That period coincided with some of the most significant Nonesuch deals in the label’s history: partnering with World Circuit Records to release three albums from the Buena Vista Social Club that collectively sold millions worldwide, in a deal that came about after Hurwitz asked Bither what music was emanating from his office that particular day; signing Harris and Laurie Anderson, artists from the major label system who needed a creative outlet to explore different forms of expression; bringing on the Black Keys and Wilco, two acts who would make a significant impact on rock and alternative music; and putting out Brian Wilson’s SMILE, the culmination of a 50-year journey to release one of music history’s most mythical projects. Nonesuch became a home for artists who wouldn’t fit anywhere else, who had something to say beyond the ordinary.
“Maybe because of my international background, but the idea of this music coming from all these different places felt like there was a home for a lot of different ideas at Nonesuch,” Bither says. “It was different than what the bigger, mainstream labels were doing. And that was the mission: it was the mission when Bob started, and it’s the mission 40 years later, to try to do those things. We’re not gonna compete with the big labels; it’s not what we do. But I think there are a lot of other opportunities, maybe more than ever now, because of the way that the business has evolved, for music that’s real, that has original voices.”
“The label is that most old fashioned of labels, in a very good way — one that seeks to follow an artist as they grow and change, rather than depend on the quick hit,” says Rhiannon Giddens, who has worked with Nonesuch since the beginning of a career that has spanned country, folk, bluegrass, soul, Gospel, jazz, R&B, operas and ballets. “It’s hard to imagine another home that would let me be me so completely. David has been an incredible support, sounding board and just all-around excellent friend to me, through the ups downs and sideways of my weirdo career, and I simply wouldn’t be where I am today without him.”
Those real, original voices and musicians are on display with Nonesuch’s Grammy nominees this year — beginning with Tuttle, the uber-talented guitarist, singer and songwriter who had recently become the first woman to win guitarist of the year at the International Bluegrass Music Association awards when Bither met her in 2019 in Manhattan. Her album with her band Golden Highway, Crooked Tree, brings bluegrass into the modern conversation, with lyrics that reflect a 2022 reality rather than a century-old art form, and with musicianship that is mind-spinning. (“When I met David Bither, we instantly connected, and I was struck with how much thought and care he puts into the albums that Nonesuch releases,” says Tuttle. “I have loved being part of such a diverse and brilliant family of musicians [and] I’m looking forward to working alongside the Nonesuch team for many years to come.”) But while Nonesuch had hoped for a best bluegrass album nomination, her nod for best new artist came as a shock.
“Did we think she was going to be best new artist? We didn’t think that the day the nominations were announced,” Bither says. “But she had something special, and it’s going to be really exciting to see what comes next. I’ve come to understand — having sat at the Grammys now for many years with artists and others — how much it means to the artists. It’s attached surgically to their names forever after. I think Molly Tuttle’s name will mean something that it didn’t mean six weeks ago, and that will inform everything that happens with the next record. The sky’s the limit, and what she’s now earned is the ability to decide for herself. It’s about her as an artist, not about figuring out a lane for her to drive in and continue driving there.”
There is something to the longevity of Nonesuch’s mission, as well as the long-standing leadership guiding it, that tends to bring artists back. Ry Cooder has worked with the label since the Buena Vista days in the late 1990s; Brad Mehldau has worked with them since 2004. The Black Keys had their pick of any label in the world when they signed with Nonesuch in 2006, and after 17 years, 18 Grammy nominations and seven wins, they’re still here. Wilco spent a decade at the label before heading out to form their own operation, but when it came time to set up the 20th-anniversary box set of Yankee Hotel Foxtrot, they came back to Nonesuch to get it done.
“There was no way if we had done this ourselves that it would have come out nearly as good, or nearly as expansive, nor would it have gotten the treatment in the media that Nonesuch was able to get,” says Josh Grier, Wilco’s former lawyer and current manager. “They could have made this a lot simpler for themselves and probably still sold a fair amount of records and made some money, and they went a lot further than that. Jeff [Tweedy], like most musicians, doesn’t like looking back; he likes to focus on his new records. David made it seem fresh and showed a lot of energy for the project that got Tweedy back engaged. It’s kind of nice to come back after 20 years and see the same guy sitting at the desk.”
A lot has changed since Bither first worked at Nonesuch; the shift from sales to streaming, for one thing, as well as the tastes of the mainstream. (The nature of streaming services, which cater principally to mega-hit singles, has made it more difficult to break through the noise, he notes.) But the label is still managing to thrive as it comes up on its 60th anniversary next year, and this coming weekend’s Grammys could be a capstone for a place that continues to thrive with its particular sense of artistic taste, in an ecosystem that isn’t necessarily set up to reward it.
“I don’t do interviews very often, because it’s not about us, it’s about all these artists that we’re here to support,” Bither says. “But it did feel now that because of all these nominations, it does say something about us as a label that I think is important to be said. And you know, these are not easy times for the business. We’re all struggling to be heard over the din of the 100,000 tracks a day being uploaded. But I think there will always be a place for what we do. We’ve never looked at it as being a niche, we’ve looked at it as being about a certain kind of quality. And the world of music is a big world.”
A member of the Senate Intelligence Committee is pushing Apple and Google to remove TikTok from their app stores because of national security concerns as the Chinese-owned company faces escalating prospects of a national ban amid bipartisan scrutiny of its data-sharing practices.
In a letter addressed to the chief executives of Apple and Alphabet, Sen. Michael Bennet, D-Colo. says TikTok’s popularity “raises the obvious risk that the Chinese Communist Party could weaponize TikTok against the United States” by forcing parent company ByteDance to “surrender Americans’ sensitive data or manipulate the content Americans receive to advance China’s interests.”
The government has increasingly been taking action against TikTok’s ties to China. In December, President Joe Biden signed a bill prohibiting the use of TikTok by nearly four million government employees on devices owned by its agencies. At least 27 state governments have passed similar measures.
There’s no evidence that the Chinese government has demanded American user data from TikTok or its parent company or influenced the content users see on the platform.
In a statement, TikTok said that the Bennet “relies almost exclusively on misleading reporting about TikTok, the data we collect, and our data security controls.” It added that the letter ignored its investment in a plan, known as Project Texas, to “provide additional assurances to our community about their data security and the integrity of the TikTok platform.”
Mirroring concerns made in a letter from a Federal Communications commissioner to Apple and Google in June, Bennett stresses TikTok’s data harvesting practices. He says its reach “allows it to amass extensive data on the American people, including device information, search and viewing history, message content, IP addresses, faceprints and voiceprints.” Unlike other tech companies that harvest similar data, he claims TikTok “poses a unique concern” because its obligated under Chinese law to cooperate with state intelligence work.
TikTok has over 100 million active users. Roughly 36 percent of Americans over 12 use the platform, spending over 80 minutes per day on the app — more than Facebook and Instagram combined. In November, TikTok confirmed that China-based employees could gain remote access to European user data. Reporting by BuzzFeed News has also revealed that company employees in China had access to US user data.
The data TikTok collects can be leveraged by the Chinese government to advance Chinese interests, according to the letter. It may be forced, for example, to tweak its algorithm to boost content that undermines U.S. democratic institutions or “muffle criticisms of CCP policy toward Hong Kong, Taiwan, or its Uighur population.”
According to Pew survey in 2022, a third of TikTok’s adult users report that they regularly access news from the app. Forbes has reported on the ability of TikTok staff to “secretly handpick videos and supercharge their distribution, using a practice known internally as heating.”
To curb criticism of its data-sharing practices, TikTok has announced a partnership with Oracle to move its data on U.S. users stored on foreign servers to Texas. The project also includes audits of its algorithms and creating a subsidiary called TikTok US Data Security to oversee content moderation policies and approve editorial decisions. U.S. employees will report to an independent board of directors.
The US Committee on Foreign Investment, which reviews business dealing that may be a threat to national sceurity, is reviewing ByteDance’s 2017 merger of TikTok and Musical.ly. It may force TikTok to sell to a US company, harkening back to when former President Donald Trump issued in 2020 an executive order demanding ByteDance to divest ownership of the app (the order was blocked by a federal court). Scrutiny of TikTok quieted when Biden took office, but the company continued to run into legal trouble over data-sharing practices. In 2021, TikTok agreed to pay $92 million to settle lawsuits alleging that the app clandestinely transferred to servers in China vast quantities of user data on children.
Anupam Chander, a professor of law and technology at Georgetown University who was briefed by TikTok about Project Texas, says the U.S. banning TikTok may “embolden other governments to do the same to apps and services from the U.S.” He adds, “It’s not clear to me that anything short of a sale will satisfy TikTok’s critics.”
TikTok’s chief executive Shou Zi Chew will appear before a House committee in March.
This article originally appeared in THR.com.