Business
Page: 480
Six months ago, in an email to staff, Spotify CEO Daniel Ek said that the company would “be a bit more prudent” in its hiring over the next few quarters. That came a week after Spotify’s June 8, 2022, investor day presentation on its plans to improve its margins.
The key would be podcasts, executives said, along with a new foray into audiobooks. Within three to five years, podcasts could bring in gross margins of 30-35%, which could later rise to 40-50% — far more than the company can earn from recorded music.
The company’s podcast business hasn’t come cheap, though. Spotify – which on Monday (Jan. 23) announced plays to lay off 6% of its workforce, as well as the voluntary departure of chief content officer Dawn Ostroff – spent hundreds of millions of dollars acquiring podcast start-up and programing. Ostroff spent big to get exclusive rights to The Joe Rogan Experience, as well as projects from Barack and Michelle Obama’s Higher Ground Productions; Kim Kardashian; and Prince Harry, Duke of Sussex, and Meghan Markle.
From a programming perspective, the podcasts worked. Spotify is now the most popular podcast platform in the U.S., as well as many other markets, and the exclusive programming helps attract advertisers. The company also introduced new podcast advertising formats that helped it grow its podcasting business to $200 million annually.
The podcasts didn’t solve Spotify’s financial issues, though. The company has always grown fast by any measure, including audience, subscribers, and revenue. But since it paid out a significant share of its revenue to labels and publishers, Spotify never had the profit margins of former Wall Street darlings like Facebook and Netflix. Podcasts were supposed to solve this, but they cost so much up front that they caused a $103 million drag on gross profit, CFO Paul Vogel said during the June presentation.
Last year was difficult for stocks in general, especially those of many technology companies, but Spotify has suffered more than most. Riding high on lockdown-time gains, its share price peaked at $364.59 on Feb. 19, 2021. By a year later, it had fallen 58% to $152.27, and then on Nov. 4, 2022 bottomed out at $69.29 — 81% below its all-time high closing price. Had it made more progress on improving margins, Spotify’s share price probably would have weathered the storm a bit better.
Now, the market will find out if the adage “to cut is to cure” applies to the music streaming business. The layoffs Spotify announced Monday will involve around 600 employees. Not among them is chief content officer Dawn Ostroff, who chose to depart the company. Alex Norström, currently chief freemium business officer, will be responsible for product and will share co-president title with Gustav Söderström, currently chief research & development officer.
Citi analyst Jason Bazinet believes the layoffs are about “trying to stem the losses in podcasting.” Investors aren’t convinced Spotify has a viable business model, he says. “The revenues have done well but there’s not a lot of cash flow. A lot gets paid back to the labels.”
The market’s response to the news was positive, but muted. Spotify shares closed on Monday at $99.94, up 2.1%, after spiking to $104.00 that morning.
Overall, podcasting doesn’t seem to be working as well, or as quickly, as Spotify had hoped. While Spotify beat expectations for subscribers and monthly active users in the third quarter, its gross margin and operating loss were below earlier guidance.
The podcast business is an obvious place for Spotify to start cutting. The company began paring expenses in October by eliminating some original podcasts and cutting “at least” 37 positions at its Parcast and Gimlet studios.
“I think it’s the right strategy,” says Bazinet. “It’s going to be difficult to shift the balance of power with record labels.”
Now, the goal is to make Spotify more efficient, according to CEO Daniel Ek’s open letter released on Monday. “In hindsight, I was too ambitious in investing ahead of our revenue growth,” Ek wrote – meaning investing in personnel, not companies. The layoffs, as well as an organizational restructuring, will both control costs and quicken decision-making, he explained. Ek isn’t alone in highlighting efficiency lately. Facebook CEO Mark Zuckerberg has taken a hard line on underperforming employees. New Twitter CEO Elon Musk expects whatever workers remain at the company to be “extremely hardcore.”
Spotify’s numbers suggest that the company may have room for improvement. Bazinet points out that in 2016 Spotify’s roughly 2,100 employees generated an average of 1.41 million euros per person while in 2021 its 6,600 employees’ per-head revenue was 1.46 million euros. That implies that Spotify failed to achieve the kind of operating leverage that would create additional value as it added employees.
As for Ostroff, her departure could mark the end of the first chapter of Spotify’s podcast business. Neither Spotify nor investors seem to have much appetite for writing big checks these days. And exclusive content seems to have an inherently limited life span. Obama’s Higher Ground Productions left for Amazon. Brené Brown’s two exclusive podcasts, Unlocking Us and Dare to Lead, have come to an end.
Ostroff certainly made her mark on the company, though. The Joe Rogan Experience has battled through controversies to become the platform’s most popular podcast, heard by a quarter of Spotify users; and 19% of all podcast listeners in the U.S. listen to TJRE, according to a recent Morgan Stanley survey. Kardashian’s true crime podcast got off to a great start in October by beating TJRE and Markle’s Archetypes. Spotify’s foray into spoken-word audio may have been costly, but it was effective.
Now, Spotify enters a new phase of cost conscientiousness. With the layoffs and reorganization, it has given investors a tangible commitment to deliver on the aggressive goals it laid out in June. That heightens expectations, though. If Spotify can’t maintain its growth with a slightly smaller headcount, it will be hard for it to deliver better margins – and the market is unlikely to be forgiving.
Lawyers for Latin trap star Anuel AA are heading to a Miami courthouse Tuesday to ask a judge to block his former manager Frabian Eli from selling a $4.8 million Florida mansion — the latest bizarre twist in a nasty legal battle between the “lifelong friends.”
After years of partnership amid rising stardom, the two have suddenly found themselves in an ugly divorce. Eli (full name Frabian Eli Carrion) sued in September, claiming Anuel breached their contracts by abruptly firing him last summer and owes him millions in unpaid fees. The star rapper (real name Emmanuel Gazmey Santiago) fired back with a countersuit in November, accusing Eli of stealing millions in order to “fund his own extravagant lifestyle.”
In the upcoming showdown Tuesday, the lawsuit’s messiness is on full display.
Anuel is seeking an “emergency injunction” that would bar Eli from selling a 6,000-square-foot home in Doral, Fla., worth an alleged $4.8 million — a property the star calls “one of the many illicit purchases made by Carrion using funds from the company’s bank accounts.” Without the order, they claim Eli will sell the house in an effort to avoid paying back the money he stole.
Eli, meanwhile, says the injunction demand is baseless and the latest example of his former friend choosing to “lash out” rather than pay him his fair share of their success: “Nothing more than an attempt to divert the court, and the public monitoring this case, away from the undisputed facts of the case.”
‘Unilaterally Terminated‘
Anuel and Eli worked together for years, starting well before the Puerto Rican rapper released his 2018 debut, Real Hasta la Muerte, and won the 2019 new artist of the year award at the Billboard Latin Music Awards. Eli then managed Anuel through three subsequent albums that all topped Billboard’s Top Latin Albums chart, and the pair also started and operated their own record label.
But just nine months after Eli gushed about his “childhood friend” to Billboard, on Sept. 4 the manager filed a lawsuit against Anuel in Florida state court, alleging he had been “unilaterally terminated” from their shared company, despite a seven-year contract that hadn’t been set to expire until 2026. The deal allegedly entitled Eli to 10% of Anuel’s gross earnings.
In his complaint, Eli said he had been surprised by the move because he had worked tirelessly to advance the star’s career, including during Anuel’s months-long stint in prison after pleading guilty to a gun possession charge.
“That prison sentence did not stop the manager from continuing to believe in the artist and to work towards the continuation of his career, while working for the artist twenty-four hours a day seven days a week, without receiving any pay,” Eli’s lawyers wrote at the time. “Together, the manager and the artist have enjoyed enormous success in the music industry, which due to the manager’s handling of the artist’s affairs, has parlayed into a number of other successes in life.”
Read Eli’s entire lawsuit here.
‘Maliciously Exploited‘
In November, Anuel told his side of the story – and he went a lot further than simply rebutting Eli’s allegations. In his own counter-suit, the star said Eli had been terminated because he had “maliciously exploited” their friendship to “defraud” him out of millions of dollars.
Among other allegations of wrongdoing, Anuel claimed his manager had secretly taken excess money from music agreements with Sony’s The Orchard and with Kobalt; that he had stolen money set aside for tax payments; and that he had secretly made huge personal purchases with company money, like $191,000 toward a Lamborghini, more than $1 million toward jewelry, and an undisclosed sum for renting private jets for his family.
The lawsuit also claimed Eli had taken “kickbacks” in return accepting bad business deals on Anuel’s behalf. For instance, it claimed that when Eli had arranged the purchase of a Miami condo for Anuel’s parents, he had “conspired” with the realtor to pay “a higher than necessary price” in return for a personal payment from the agent.
“In complete and utter contravention of his contractual and fiduciary duties; all reasonable sense of morality; and his years long friendship with artist, which led artist to place his full trust in Carrion, Carrion … bilked counter-plaintiffs out of millions of dollars for which they are rightfully entitled,” Anuel’s lawyers wrote at the time.
Read Anuel’s entire counter-suit here.
‘Losing Out On Millions‘
With the lawsuit and counter-suit both still in the earliest stages of litigation, Anuel threw another bomb in early December — demanding the emergency court order restraining Eli from selling the $4.8 million house in Doral. He claimed that more than $1 million in payments for the Doral house had come from company bank accounts.
In the filing, Anuel’s lawyers warned that Eli was already in “a precarious financial position” and that the property was the only asset they could find under his name. Without a court order requiring him to retain it until the lawsuit was over, the lawyers said there might be no other way for Anuel to recover the allegedly stolen money.
“Counter-plaintiffs risk being successful on its claims, and nonetheless losing out on millions of dollars because [Eli] was permitted to dispose of the property – the sole asset currently in his name – and no longer possessed sufficient assets to cover the value of harm he deliberately and calculatedly took,” they wrote in the Dec. 2 motion.
Eli’s attorneys fired back two weeks later, arguing there was no grounds for an extraordinary order like an injunction freezing the sale of a home. Anuel’s core allegations against Eli, they said, were “simply ludicrous” and “non-sensical” — meaning that he would eventually owe money to their client, not vice-versa.
“This case is really about an artist … that rose to stardom based in part on the work done by the manager, who has now chosen to lash out against the manager with falsities in response to a lawsuit which had to be filed due to the artist’s own irrational actions,” Eli’s attorneys wrote. “Instead of litigating this case on provable facts, with evidence, Anuel is trying to use a ‘kitchen sink approach’ to muddy the waters and cause as much harm as he can.”
Read the entire emergency motion and response here.
Hipgnosis Songs Capital has closed its deal to buy 100% of Justin Bieber‘s publishing, as well as his artist royalties from his master recordings and neighboring rights, Hipgnosis has confirmed. The deal was priced at just north of $200 million, according to a source familiar with the situation, making this the largest rights sale for any artist of Bieber’s generation. It’s also Hipgnosis’ biggest acquisition to date, covering all 290 titles in Bieber’s catalog released prior to Dec. 31, 2021, including his most recent album Justice (2021).
Billboard originally reported in December that a Bieber deal valued at over $200 million was in the works amid founder and chief executive Merck Mercuriadis‘ efforts to “close about $500 million in deals” between mid-November and mid-December. Although Mercuriadis did not say what the deals were at the time, the Bieber acquisition appears to be part of that disclosure.
Following a hot 2021 for catalog sales, with deals like Bruce Springsteen and Paul Simon making headlines and some of the world’s biggest private equity players including Blackstone, KKR and Apollo Global Management all taking stakes in the market, rising interest rates and changes in currency exchanges cooled the sector in 2022. Still, deals have been getting done. Last year, Justin Timberlake, Leonard Cohen, Nile Rodgers, Kenny Chesney, Neil Young and Nelly Furtado all sold some of their rights to Hipgnosis. Sting, David Bowie‘s estate, Phil Collins and his Genesis bandmates, Future, Frank Zappa and Neil Diamond also sold certain assets to investors in 2022.
Typically, newer catalogs like Bieber’s are considered riskier investments since they don’t have as much history behind them to prove staying power. That means they often sell for lower multiples than those of classic acts. Bieber’s success, however, has been undeniable since his 2009 debut album, My World, and the 2010 follow-up My World 2.0, the latter of which topped the Billboard 200 albums chart and included the hit single “Baby.” In all, Bieber has charted eight No. 1 albums on the Billboard 200 chart, including his most recent full-length studio release, 2021’s Justice.
On the Billboard Hot 100 songs chart, Bieber has collected 26 top 10s, including eight No. 1s. His albums have generated 28 million equivalent album units in the U.S., of which 13.2 million are in traditional album sales, according to Luminate. His collected songs billed primarily to him, per Luminate, have generated 16.6 billion on-demand official streams in the U.S.
“The impact of Justin Bieber on global culture over the last 14 years has truly been remarkable,” said Mercuriadis in a statement. “At only 28 years of age, he is one of a handful of defining artists of the streaming era that has revitalized the entire music industry, taking a loyal and worldwide audience with him on a journey from teen phenomenon to culturally important artist. This acquisition ranks among the biggest deals ever made for an artist under the age of 70, such is the power of this incredible catalog that has almost 82 million monthly listeners and over 30 billion streams on Spotify alone. Scooter Braun has helped him build a magnificent catalogue, and it’s a pleasure to welcome Justin and his incredible songs and recordings to the Hipgnosis family.”
“I want to thank Merck and his entire Hipgnosis team and all of our partners involved for working so hard to make this historic deal happen,” says Scooter Braun, Bieber’s manager for 15 years, founder of SB Projects and CEO of HYBE America. “When Justin made the decision to make a catalog deal we quickly found the best partner to preserve and grow this amazing legacy was Merck and Hipgnosis. For over a decade now Justin Bieber has entertained us and moved us with some of the biggest songs in the world. I’m so proud of him and all those involved over the years in helping amass this incredible body of work. Justin is truly a once in a generation artist and that is reflected and acknowledged by the magnitude of this deal. For 15 years I have been grateful to witness this journey and today I am happy for all those involved. Justin’s greatness is just beginning.”
Justin Bieber was represented by Braun, David Bolno of NKSFB, Aaron Rosenberg and Audrey Benoualid of Myman Greenspan Fox Rosenberg Mobasser Younger & Light LLP, and Michael Rhodes of Cooley.
Hipgnosis Songs Capital was represented by William Leibowitz of William R. Leibowitz Law Group, Seth Traxler and Rory Wellever of Kirkland & Ellis LLP, and Robert Fowler and Lisa Ong of H.W. Fisher.
Spotify’s Dawn Ostroff praised the growth of the audio giant’s podcasting expansion shortly after CEO Daniel Ek revealed a major leadership reorganization on Monday morning that will see Ostroff exit the company.
The reorganization, accompanied by a round of layoffs that will impact roughly 600 employees, involves consolidating Spotify’s business operations under co-president Alex Norström, who most recently oversaw the company’s freemium business. Ostroff, who joined Spotify in 2018 from Condé Nast Entertainment, will transition to an adviser role before formally leaving the company as her divisions now fall under Norström’s purview.
In a note to staff, obtained by The Hollywood Reporter, Ostroff praised Norström and reflected on the growth and impact of Spotify’s podcasting team, writing that the platform’s original and exclusive shows — which includes hits like The Joe Rogan Experience, Call Her Daddy and the original series Caso 63 — account for roughly 20 percent despite representing about 0.05 percent of shows on the platform.
“I’m so proud that we’ve built a home for creators to bring their art to the world in ways no one could have previously imagined. And while I’m very much excited about my next step, working alongside and learning so much from so many of you has been a privilege,” Ostroff wrote. “The memories of the moments, the stress, and the laughter we shared have helped me grow and better appreciate the journey … and for that, I will always be grateful. I wish you every success on the next chapter of the Spotify story.”
Read the full memo below.
Looking back on the past four and a half years, I am incredibly proud of what we’ve built together. It’s our best-in-class music operation where we have strengthened our relationships across the business, earned the respect of the industry, and become great partners. The entire music team is the heart and soul of this company.
Working together, our podcasting team has revolutionized the space. This organization’s trajectory has been astonishing, going from practically zero market share and a handful of podcasts, to the leading platform with more than five million podcasts today and a 30x increase in podcast consumption on the platform. And I’m really proud of what we have built with our original and exclusive shows–despite being just .05% of the number of shows on the platform, they account for ~20% of consumption. This includes a string of hits that had Spotify O&E shows occupy 6 of the top 10, and 24 of the top 100 slots on our global charts in 2022. In addition, we’ve learned so much from creators about the opportunities in video as we’ve seen the numbers surge.
Over the past two years, we’ve modernized the advertising business to make it essential to brands and clients. And we have delivered, doubling our ad revenue to well over a billion euros in the process. The technology and innovation that the global ad and sales team has brought to market ensures that there will be billions more to come. That growth is set to change the marketplace forever, especially under the strong leadership of my dear friend Alex, who has my every confidence.
We’ve championed marginalized voices and worked to drive much-needed change in the audio industry. I’m so proud that we’ve built a home for creators to bring their art to the world in ways no one could have previously imagined. And while I’m very much excited about my next step, working alongside and learning so much from so many of you has been a privilege. The memories of the moments, the stress, and the laughter we shared have helped me grow and better appreciate the journey … and for that, I will always be grateful. I wish you every success on the next chapter of the Spotify story.
Dawn
This story was originally published on THR.com.
Don’t expect Live Nation’s Joe Berchtold to be quoting Taylor Swift’s “Anti-Hero” during the Senate Judiciary Committee hearing on ticketing Tuesday. Unlike the pop star’s “I’m the problem it’s me” chorus-turned-meme, the company’s president and CFO plans to take aim at who he says are the real culprits behind Swift’s disastrous Nov. 15 presale — scalpers.
While the Live Nation-owned Ticketmaster was villianized for weeks following the presale for Swift’s upcoming The Eras tour that both broke single-day sales records and threw fans into a fury over service issues, according to a prepared opening statement reviewed by Billboard, Berchtold plans to lay much of the blame on scalpers who used illegal bots to attack the online sale. The statement, to be delivered Tuesday in Washington, D.C., to the committee led by ranking member Dick Durbin (D-Ilinois), details Ticketmaster’s ongoing “arms race” against scalpers illegally using autonomous software to disrupt and attack high profile ticket sales. Country music legend Garth Brooks is lending his support to Berchtold’s testimony as well, with a letter defending Ticketmaster and attacking ticket scalpers who use illegal methods to buy up tickets.
“We knew bots would attack [Swift’s] onsale, and planned accordingly,” reads Berchtold’s planned statement. “We were then hit with three times the amount of bot traffic than we had ever experienced, and for the first time in 400 Verified Fan onsales they came after our Verified Fan access code servers. While the bots failed to penetrate our systems or acquire any tickets, the attack required us to slow down and even pause our sales. This is what led to a terrible consumer experience that we deeply regret.”
Following the Nov. 15 presale, Ticketmaster eventually canceled its general onsale for the remaining 170,000 tickets to Swift’s tour. In December, the company announced a new strategy to sell the passes over the course of four weeks and recently concluded that effort. At the time, the company said “historically unprecedented demand” caused the failure, but blamed bots then, too — saying, 14 million fans and more than 3 billion bots hit the site. That excuse did little to satisfy the more than 100,000 fans who kicked out of line during the bot attack, and even the singer spoke out blaming the company. With many fans calling for Ticketmaster’s punishment, Berchtold also plans to apologize directly to Swift and her followers.
“As we said after the onsale, and I reiterate today, we apologize to the many disappointed fans as well as to Ms. Swift,” his statement reads.
While Berchtold notes Ticketmaster “accepts its responsibility to be the first line of defense against bots in this ever- escalating arms race,” he intends to shift the hearing’s focus to policy changes that could tamp down on scalpers.
“In this forum where we are here to discuss public policy, we also need to recognize how industrial scalpers breaking the law using bots and cyberattacks to try to unfairly gain tickets contributes to an awful consumer experience,” his statement reads. “We are doing everything we can to fight the people who attack our onsales and steal tickets meant for real fans, but we need help passing real reforms to stop this arms race.”
Brooks, in his statement, supports this notion.
“The crush of bots during an on-sale is a huge reason for program failure NO MATTER WHO THE TICKET SELLING COMPANY is,” writes the country icon in his letter addressed to Congress. “And the one who ALWAYS pays for this atrocity is the customer, the LAST one on whom that burden should fall.”
Brooks notes in his letter that he forced Dallas Cowboys owner Jerry Jones to allow him to use Ticketmaster to sell tickets to his April concert at AT&T Stadium, instead of SeatGeek which held the exclusive contract to ticket the stadium.
“I had grown to love and trust the people at Ticketmaster so much,” he explained in his letter, noting, “this was not because of Ticketmaster, but a choice I made.”
Berchtold will be joined on the witness stand by SeatGeek chief executive Jack Groetzinger and longtime Chicago promoter Jerry Mickelson with JAM Productions, along with recording artist Clyde Lawrence and representatives from the James Madison Institute and American Antitrust Institute.
Ticketmaster officials are expecting a pile on, both from Congress and the other testifying witnesses. SeatGeek has filed a number of complaints against Ticketmaster with the Department of Justice for alleged anti-trust violations, and Mickelson testified before Congress in 2010, condemning the merger between Live Nation and Ticketmaster. While company officials aren’t expecting any standing ovations, Berchtold’s testimony will be an important preview of the company’s framing of the challenges facing the business over the next couple of years and promises to be the most detailed defense of Live Nation by an executive in its 18-year history.
Sen. Amy Klobuchar (D-Minnesota) originally called for this hearing in response to public anger over the technical failures of the Taylor Swift Eras ticket sale. But the witness list and the name of the hearing, “That’s the Ticket: Promoting Competition and Protecting Consumers in Live Entertainment,” released Monday (Jan. 23) suggest that the hearing is more likely to focus on long-simmering dissatisfaction over the 2010 consent decree governing the merger of Ticketmaster and Live Nation. That consent decree has had mixed success creating a level playing field for competition in the ticketing business, and critics consider it a failure because it didn’t prevent Ticketmaster from becoming the dominant ticketing company it is today.
“We hear people say that ticketing markets are less competitive today than they were at the time of the Live Nation-Ticketmaster merger. That is simply not true,” reads Berchtold’s statements, claiming Ticketmaster’s market share has decreased since the DOJ estimated it held 80% of the market in 2009.
At the time, Ticketmaster “did not face the level of competition we face today from new competitors including SeatGeek, AEG’s AXS, and Eventbrite, along with established competitors including Tickets.com and Paciolan,” Berchtold continues. “Today, there is intense competition for every ticketing contract that goes out to bid — far more than there was in 2010. Ticketmaster has lost, not gained, market share, and every year competitive bidding results in ticketing companies getting less of the economic value in a ticketing contract while venues and teams get more. The bottom line is that U.S. ticketing markets have never been more competitive than they are today, and we read about new potential entrants all the time.”
Berchtold plans to present the threat posed by bad actors and malicious software as an issue both the government and the private sector must address together. The strategy shifts part of the criticism for the Taylor Swift ticket debacle onto the Senate — which unanimously voted to pass the BOTS act in 2016, effectively outlawing automated ticket-buying technology. Since its passage, the law has only been enforced twice by the FBI and the Federal Trade Commission, despite pleas from Ticketmaster officials that bot attacks on high profile ticket sales are increasing in frequency and complexity, sources tell Billboard. Berchtold also plans to detail how the company has spent more than $1 billion developing technology to prevent bot attacks on the company’s ticket sales using software like Verified Fan and digital ticketing.
A ‘blame the bots’ strategy is not likely to satisfy the members of the Senate Judiciary committee, which include such conservative and liberal firebrands such as Ted Cruz (R-Texas), Josh Hawley (R-Missouri), John Kennedy (R-Louisiana), Diane Fienstein (D-California), Corey Booker (D-New Jersey) and Richard Blumenthal (D-New Jersey). Anti-Ticketmaster sentiment and criticism of the 2010 merger between Ticketmaster and Live Nation is one of the few issues of bipartisan agreement on Capitol Hill.
Berchtold will end his testimony laying out calls to action he believes Congress can take to combat bad actors in the ticketing industry: First, is empowering private parties like Ticketmaster to bring civil actions against ticket sellers who knowingly sell tickets obtained by bots. Second, Berchtold believes Congress should act to outlaw deceptive sales practices like speculative ticket sales “offering for sale tickets you don’t own or have an existing right to obtain,” or deceptive sites that mislabel themselves as “the official” ticket seller for shows they aren’t contracted to work with.
The Senate Judiciary Committee’s “That’s the Ticket: Promoting Competition and Protecting Consumers in Live Entertainment” begins at 10 a.m. EST on Tuesday. Click here to watch the hearing live.
BMG has promoted JoJamie Hahr to executive vp of recorded music, Nashville.
Hahr will oversee day-to-day operations of BMG Recorded Music in Nashville, including BBR Label Group and its roster and imprints Broken Bow Records, Stoney Creek Records and Wheelhouse Records. She will continue reporting to Jon Loba, president of BMG Nashville.
Hahr was promoted to senior vp of BBR Music Group in 2020, where she oversaw all artist strategy, brand partnerships, strategic marketing and digital/creative efforts for BBR Music Group imprints Broken Bow Records, Stoney Creek Records and Wheelhouse Records. She has been with BBR Music Group for eight years. Prior to joining BBR, Hahr served as national director of field promotion for The Valory Music Co., after being promoted from director of Southeast promotion and marketing. Her two decades of music industry experience have also included stints at Universal Music Group, Nashville radio station WSIX and Orlando radio station WWKA.
“I’ve had the good fortune to work with JoJamie for a significant part of her professional life. Whenever she has been given a new opportunity for growth, she has not only met, but exceeded my high expectations,” said Loba in a statement. “She is one of the very best music executives in the industry and this promotion recognizes her many contributions, while at the same time giving her the opportunity to help further grow BMG Nashville, where I have no doubt, she will once again exceed our expectations.”
“It’s a privilege and a blessing to work with our extraordinary artists and our BMG family every day,” added Hahr. “Jon Loba has always encouraged my passion and my growth and I’m thankful for his belief in me. BMG truly puts artists and their music first, and I’m extremely proud of what we all continue to build together in Nashville and beyond.“
Over the past year, BBR Music Group has seen two red-hot artist breakthroughs. In March, Lainey Wilson won new female artist of the year and song of the year at the 2022 ACM Awards, followed by wins for female vocalist of the year and new artist of the year at the 2022 CMA Awards in November. Meanwhile, Jelly Roll just earned his first No. 1 single on Billboard‘s Country Airplay chart with “Son of a Sinner” after previously earning his first No. 1 single on Billboard‘s Mainstream Rock Airplay chart with “Dead Man Walking.” The singer has also a total of spent 22 weeks atop Billboard‘s Emerging Artists chart. Elsewhere, three-time ACM entertainer of the year winner Jason Aldean earned his 25th No. 1 Country Airplay hit in May.
On Sunday (Jan. 21), longtime and beloved Chicago radio host Lin Brehmer died at 68 after battling prostate cancer.
Brehmer’s WXRT colleague and friend Terri Hemmert shared the news in a statement that read: “We must inform you that we all lost our best friend. Lin Brehmer fought cancer as long as he could. He passed early this morning, peacefully, with his wife (Sara) and son (Wilson) by his side.”
Brehmer announced he would take a leave of absence last July for treatment. He returned to the air in late November.
Adopting the tagline, “Your best friend in the whole world” during his time at WXRT, the sentiment was true for many, including Chicago legends like Wilco, Steve Albini, Billy Corgan, John Cusack and more. It wasn’t Brehmer’s only catchphrase. He often reminded listeners: “Take nothing for granted. It’s great to be alive.”
Brehmer started as a host at the Chicago rock station in 1991 after moving to the city in 1984 to be the music director, a position he held for six years. After a brief gig in Minneapolis, he returned to Chicago and WXRT — this time as the morning host. There he launched his legendary segment Lin’s Bin, through which he would excitedly and thoroughly answer listener questions while musing on life, music and pop culture. In 2020, he moved to middays.
A New York native, Brehmer started his career in Albany before relocating to and falling for the city of Chicago — from the Cubs baseball team to the food, whether it be an Italian beef sandwich or pizza. To honor the late Brehmer, the marquee at Wrigley Field (home of the Cubs) displayed his name.
WXRT celebrated Brehmer’s life with a special block of programming on Monday. Alongside stories from Hemmert and other hosts, plus special memories and send-offs from artists and bands like Corgan, The Record Company and more, the programming played a range of music that was meaningful to his life and career. It also aired Brehmer’s final sign-off for the station.
In it, he recounted being asked if he would change anything about his path. In short, the answer was an affirmative — and colorful — “no way.”
See the social media tributes to Brehmer below.
RIP to Chicago legend Lin Brehmer who sadly just passed away – he was the voice of WXRT – the best music station in Chicago – the kindest man you could ever meet – a lifelong cubs fanatic – and one of coolest warmest guy you could ever meet – He was truly Chicago’s finest –— John Cusack (@johncusack) January 23, 2023
The Cubs mourn the passing of legendary Chicago radio personality and lifelong Cubs fan Lin Brehmer.We send our condolences to his family and friends. pic.twitter.com/2SiHRmacxY— Chicago Cubs (@Cubs) January 22, 2023
Lin, what a beautiful soul. Pure walking magic, an encyclopedia of music, and friend to all. Thank you, you will be so missed. Our condolences to all who knew Lin and the whole city of Chicago. 💙 @93XRT @LinBrehmer https://t.co/TDbKAZXFmf— The Record Company (@therecordcomp) January 22, 2023
Lin Brehmer was the voice of Chicago. His voice was unique and a perfect way to start the day. An ambassador for the city’s music scene and a dear friend, I announced the Uptown music district concept on his show.I’ll miss hearing his voice on XRT. May his memory be a blessing.— Rahm Emanuel (@RahmEmanuel) January 22, 2023
Primary Wave has announced its acquisition of Robby Krieger and Ray Manzarek‘s rights as it pertains to their involvement with The Doors. This includes the guitarist and late keyboardists’ recorded music, publishing, trademarks and merchandise rights and income. Jim Morrison, the band’s lead singer, and John Densmore, its drummer, continue to own the remaining interests in the Doors’ rights.
One of the most influential and enduring rock acts of its time, The Doors formed in Los Angeles in 1965, fearlessly injecting everything from bossa nova, blues, jazz and more into their songwriting. Epic songs like “Light My Fire” (seven minutes) and “The End” (nearly 12 minutes) were proof of their boundary-pushing pursuits in popular music. Defined by Manzarek’s busy keys, “Light My Fire” became the band’s first Billboard Hot 100 No. 1 hit in 1967. From there, the group went on to mint 6 gold-certified records with Morrison at the helm.
Manzarek died in 2013 at age 74 after a battle with cancer. Morrison, known as the “Lizard King,” passed away in 1971 at only 27.
Songs like “Riders on the Storm,” “People Are Strange,” “Break on Through (To the Other Side)” and more are still considered some of the most inventive and lyrically-profound of their time. “The End” took on even more cultural significance more than a decade after its release as the opening soundtrack to Francis Ford Coppola’s Apocalypse Now (1979).
By the 1990s, the group’s legacy was cemented with their induction into the Rock & Roll Hall of Fame and memorialized in the Val Kilmer-starring biopic The Doors (1991).
As the new rights holder of Krieger and Manzarek’s interests in The Doors’ catalog, Primary Wave will work alongside Jeff Jampol, the band’s manager and founder of Jampol Artist Management, to help with the marketing, digital, licensing, sync for further empowering the band’s legacy.
“Ray and I spent a lot of time discussing the future of The Doors’ legacy, and how to handle things after he departed this plane,” says Dorothy Manzarek. “Our family has worked patiently to find the right partners to continue Ray’s lifelong efforts in protecting and promoting his art, and now we are happy to have finally come to an agreement with Primary Wave. Under the continued guidance of our manager, Jeff Jampol, Primary Wave will be the right partners in this endeavor to build future generations of new Doors fans.”
“The Doors are one of the most legendary rock bands of all time. We are looking forward to growing the legacies of Robby Krieger and Ray Manzarek,” says Larry Mestel, CEO and founder of Primary Wave Music. “We are also very happy to be working alongside such an industry icon as Jeff Jampol to tastefully grow opportunities for The Doors.”
John Branca, David Byrnes, and Kelly Vallon Ciccotti negotiated the deal on behalf of the sellers.
At a time when TikTok challenges have been helping drive songs up the charts, one app is angling for another way to capitalize on the viral dance trend. And unlike that other social media service, this one’s focused on paying choreographers, whose role in spawning those dance crazes tends to go unacknowledged. Steezy, an instructional dance app that offers virtual classes in 13 different disciplines, hires professional choreographers to instruct users in hip-hop, jazz, ballet and more, set to the music of some of today’s biggest artists.
To date, the app has been downloaded over 1 million times by users in more than 100 countries and built up a library of 1,800 classes — all filmed at Steezy studios located at the company’s Downtown Los Angeles headquarters — for which subscribers pay a flat rate of $20 monthly or $100 yearly (roughly three new classes are added each week). The app has licensing deals with Universal Music Group and Warner Music Group and last May began partnering with Def Jam, Warner Records and others on integrations around their latest releases. Several artists have since appeared in-studio for the popular Steezy YouTube series 3 Choreographers, 1 Song — in which a trio of dancers improvise routines to artists’ latest tracks — including J.I.D., Babyface, Chinese superstar Jackson Wang and Roc Nation signee Kalan.FrFr.
The platform also partnered with Prime Video last year on a series of videos around the release of Lizzo’s reality competition series Watch Out for the Big Grrrls, including a dance class with choreographer/influencer Aliya Janell — who taught a routine to Lizzo and Cardi B’s 2021 collaboration “Rumors” — and hosted a dance challenge tied to the series. Steezy additionally helped facilitate a dance challenge tied to the release of Michael Bublé’s latest single “Higher” by creating a free class featuring choreographer Brian Puspos (BTS, Justin Bieber) and his wife Aja Dang, who taught their own choreographed routine to the song to inspire more people to enter. Lim notes it was the most-taken class on the platform for three weeks.
Steezy launched in 2014, initially as a blog offering advice and resources to aspiring professional dancers. But a comment from a friend and future colleague soon started founders Connor Lim and Evan Zhou, who met when both were members of the competitive dance team GRZ, down a more ambitious path. Clay Boonthanakit, who now works as Steezy’s main on-camera personality, came to Lim and Zhou with a simple pitch: “’It’d be really cool if there were videos, because I don’t really like reading,’” Lim recalls with a laugh.
With Boonthanakit coming aboard, Lim and Zhou soon introduced vlogs and — noting a dearth of quality instructional dance videos online — eventually began prototyping video classes, the first of which launched online in 2015, followed by the launch of the Steezy iOS and Android apps in 2018. Since introducing classes, the company has raised $20 million from investors including Elysian Park Ventures, Freestyle Capital, Aglaé Ventures and angel investor Jason Calicanas.
Similar to other subscription-based online platforms like Peloton, Steezy saw a steep rise in subscriptions once the pandemic shuttered dance studios in early 2020. With the professional dance community out of work due to the touring shutdown, it also helped keep some in that community afloat during a desperate time. “All their tours got canceled. All their in-person classes got canceled,” says Zhou. “It felt really good that we could pay our dancers, they could come in and teach and actually keep doing what they do.”
In addition to a standard teaching fee, each dancer is paid from a “bonus pool,” which is doled out on a pro-rata basis (based on the percentage of revenue that can be attributed to classes they taught). “[It’s] a model that’s never existed for dancers before,” says Zhou. “It existed for musicians, where they create a piece of music and it gets monetized on all these different platforms and they get a cut — but dancers have never really had this.”
Like TikTok, which facilitates deeper engagement with music through dance challenges and repetition, Lim and Zhou say Steezy inspires a heightened level of engagement that can make tracks stickier for users. “As you learn [a dance] on our platform, you have to listen to the song like 10, 20 times in order to get it into your muscle memory, so you just have this deeper relationship with the song,” says Zhou. To make routines easier to learn, Steezy allows users to toggle between both front and back views of the instructors as they teach, “mirror” themselves with their webcams to see themselves dance in real time, slow down the tempo and loop sections of videos to nail a specific movement.
In addition to offering an additional revenue stream for dancers, Zhou and Lim feel a broader responsibility to highlight the way choreographers — who often aren’t properly credited for their work — contribute to the success of music at a time when some dancers are pushing for better compensation and even copyrighting their dances (U.S. copyright law allows choreography to be protected, so long as works are fixed in a tangible medium of expression from which the work can be performed). In 2018, rapper 2 Milly sued Epic Games for copyright infringement for using his “Milly Rock” routine in Fortnite, though the suit was dismissed with prejudice (meaning it can be refiled) the following year after the Supreme Court that individuals cannot sue for copyright infringement until the U.S. Copyright Office has either granted or refused their application. In 2020, longtime Beyoncé choreographer JaQuel Knight successfully registered his choreography from the superstar’s iconic “Single Ladies” video, making him the first commercial choreographer in pop music to successfully do so.
For its part, Steezy has been providing a historical timeline of some iconic routines with the original series Viral Dance Moves, in which the company spotlights choreographers who originated dance crazes like the Kangsta Wok (Zaya Sosho), The Dougie (Lil’ Wil) and The Smeeze (Chonkie).
“In the music industry, dancers are…always kind of behind the scenes,” says Lim. It’s really important for us to showcase dancers at the forefront, especially because they drive huge streams for songs, and we know that.”
Triple 8 Management has added Aaron Sawyer as an artist manager. He brings with him longtime colleague and associate manager Hannah Boren.
Prior to joining Triple 8, Sawyer spent seven years at Red Light Management. With his hire, he expands the Triple 8 Management roster to include Madison Cunningham, I’m With Her, Julian Lage, and Melt, as well as Sean and Sara Watkins and Watkins Family Hour.
“We’re really proud that Triple 8 is known for being a collaborative and creative environment where everyone in the company is willing to raise a hand and help across teams and departments,” said Triple 8 Management founding partner George Couri in a statement. “Aaron and Hannah embody those qualities and compliment the team perfectly. We are thrilled to welcome them to our organization. We are lucky to have them.”
“Aaron Sawyer has been a trusted friend for at least 15 years, and Hannah and I have known each other since her time at Noisetrade in 2014,” added Triple 8 partner Paul Steele. “I can not say enough kind things about these people and am honored they have decided Triple 8 is the right place for them to be. I have never been more excited about our future than I am today, and Aaron and Hannah are a big part of that.”
Sawyer added, “I’ve long admired the company George and Paul have built over the years, as well as their all-hands approach to management and ability to look at every minute detail to foster enduring artist growth and development. Paul and I nearly joined forces in 2015, so when the opportunity to join him arose again, it felt kismet.”
Cunningham currently boasts two Grammy nominations leading into next month’s ceremony, with nods for best folk album (for Revealer) and best American roots performance (for her song “Life According to Raechel”). Lage sold out concerts across Europe and North America last year following the release of View With a Room, his second album for Blue Note Records. Meanwhile, Sean and Sara Watkins continued their longstanding Watkins Family Hour project, releasing their record Vol. II and celebrating their 20th year in residence at Los Angeles club Largo. They are also gearing up for a big year with their group Nickel Creek, with the band slated to tour in Europe for the first time in nearly two decades.