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Mexican singer-songwriter Danna Paola has signed an exclusive go-forward and full catalog publishing deal with Warner Chappell Music Mexico, Billboard has learned.
“I’ve been waiting for a music partner like this for a while now and couldn’t be happier,” the “XT4S1S” singer said in a statement. “As a songwriter, I’m glad to be part of a company that supports and respects their artists’ creativity, and I’m pretty sure we’re going to create magic together!”
Since releasing her album K.O. in 2021 — which peaked at No. 9 on Billboard‘s Latin Pop Albums chart (dated Jan. 30, 2021) — the 27-year-old artist has released a handful of singles including her latest “XT4S1S,” a euphoric and liberating track. Her 2020 project, SIE7E+, also entered the charts. It peaked at No. 16 on that same tally.
About the deal, Carlos Ruíz, Warner Chappell Music Mexico managing director, added: “Danna is an artist in every sense of the word. Her talent, professionalism, and dedication are the basis of her solid career and why she has become an icon of her generation — not only in Mexico but in many parts of the world. She provokes a unique connection with her fans through her music, and we are delighted that she has entrusted us to accompany her in all the successes that are to come.”
With more than 10 million listeners on Spotify and collabs with artists such as Sebastián Yatra, David Bisbal, Mau y Ricky, among others, Paola — who also starred in Netflix’s popular series Élite — is currently on the XT4S1S Tour in Mexico.
Advocates representing a wide cross-section of the music industry are again urging Congress to pass the Help Independent Tracks Succeed (HITS) Act, the long-simmering legislation that would provide an extra tax break to musicians, technicians and producers for recording sessions.
“Prior to the conclusion of the 117th Congress, the American music community calls on you to support American music creation that is still reeling from the pandemic by passing into law the bipartisan and bicameral Help Independent Tracks Succeed (HITS) Act,” reads a Nov. 15 letter sent to Congressional leadership, co-signed by 23 groups across the business.
The Recording Academy, which made the bill a major focus of its Grammys on the Hill event in April as well as its annual District Advocate Day in October, continues to lead the charge. During the latter event, held on Oct. 6, approximately 2,000 Academy members participated in lobbying for the HITS Act and other music industry priorities at nearly 200 U.S. congressional offices in Washington, D.C.
“Our hope is that we can get it done here before the 117th comes to a close because we have a lot of bipartisan support, bicameral support [in the] House and Senate,” says Recording Academy CEO Harvey Mason jr. “I really feel like this is something we should be able to get done and we’re hoping we can get done in the next few weeks.”
The HITS Act would allow musicians, technicians and producers to deduct 100% of recording expenses up to $150,000 on their taxes in the year they’re incurred. That’s a change from the current law, which requires music creators to amortize those expenses over the economic life of a sound recording, a period that usually ranges between three and four years.
The bipartisan bill was first introduced in the House on July 31, 2020 (followed by a companion bill in the Senate on Dec. 3, 2020), though it failed to pass as part of the two pandemic relief packages or as part of the $3.5 billion budget reconciliation package known as Build Back Better, which was ultimately halved and renamed the Inflation Reduction Act of 2022 before being signed into law in August. Now, with only a month to go before the changeover to a new, split Congress — Democrats will retain control of the Senate while Republicans will control the House of Representatives — advocates are hoping the bill can finally, successfully make it through the gauntlet as part of a must pass bill during the last few weeks of the year.
“[During] the lame duck period with these must pass bills, if there’s any kind of tax language in there or any kind of economic language in there that ties in with this, we’re really hopeful it will get in this time around,” says Richard James Burgess, president and CEO of the American Association of Independent Music (A2IM), which has long served as a key advocate for the legislation.
In the entertainment realm, music production is an outlier in terms of taxation; film, TV and live theater productions already enjoy a 100% first-year deduction. The HITS Act would simply apply the same standard to music, Burgess says, while also encouraging future music creation: “I think if anybody needs it, it’s musicians that need it really badly. It affects independent musicians and independent artists and independent labels probably more than anybody else because they have less bandwidth financially. The idea of getting $150,000 per project [that can be] written off against your taxes in the year that you incurred it, could really make a difference between being able to make another record next year or not.”
Burgess adds that the bill won’t just affect musicians and producers but trickle down to other parts of the industry and the greater economy. “Every artist that makes a record, that has a knock on effect to many, many other musicians and ancillary workers in the music industry,” he says. “Getting these kinds of tax benefits will make a difference across the board.”
While Burgess and Mason jr. were both relatively confident HITS could make it through the next Congress given the bill’s bipartisan support, they’ve clearly grown impatient on behalf of creators, many of whom lost income during the early stages of the pandemic. After more than two years of disappointment, Mason jr. puts it in stark terms: “Yes, it could get passed next year, but…I don’t think we should continue to have it laid off and cut out of bills. This is something that’s important for us coming out of COVID. We’ve seen this community suffer enough.”
You can read the full Nov. 15 letter below.
Dear Speaker Pelosi, Leader Schumer, Leader McCarthy, and Leader McConnell: The 117th Congress has witnessed significant bipartisan and bicameral accomplishments that have benefitted American workers, families, and consumers, and levelled the playing field so some important domestic industries can grow. Prior to the conclusion of the 117th Congress, the American music community calls on you to support American music creation that is still reeling from the pandemic by passing into law the bipartisan and bicameral Help Independent Tracks Succeed (HITS) Act (H.R. 1945/ S. 752).
The HITS Act is a low-cost and commonsense modification to existing U.S. tax law that will incentivize the production of new sound recordings by allowing qualified productions to deduct 100% of their costs upfront. With an annual deduction limit of $150,000, the bill is designed and tailored to specifically incentivize independent creators and labels to produce new music, sparking important creative investments in countless music small businesses across the country. This targeted approach makes the HITS Act a fiscally responsible investment in the American creative economy.
The HITS Act also brings much-needed parity to the tax code for all creative industries. Currently, under Sec. 181 of the Internal Revenue Code, qualified film, television, and live theatrical productions may elect to fully deduct new production costs in the year they are incurred. Music production, which occurs in every state and congressional district, deserves the same treatment. Instead of being able to fully deduct production expenses in the year they occur, independent recording artists must currently amortize production expenses for tax purposes over the full economic life of a sound recording. For small creators, this timing difference slows down their reinvestment in new projects that can fuel growth. The HITS Act harmonizes the tax code and ensures that all the major creative industries are treated similarly.
As you consider end-of-year legislation, the music community strongly urges you to pass the HITS Act. It represents exactly the type of bipartisan, bicameral, and non-controversial economic investment that Congress should be proud to support. Passage of H.R. 1945/S. 752 is a smart and simple step that will make a lasting difference for countless independent music creators and music small businesses.
On behalf of the hundreds of thousands of music makers and music businesses across the country, thank you for your consideration.
Signed,
American Association of Independent Music
Artists Rights Alliance
ASCAP
Black Music Action Coalition
Broadcast Music Inc.
Christian Music Trade Association
Digital Media Association
Future of Music
Global Music Rights
Gospel Music Association
Music Artists Coalition
Nashville Songwriters Association International
National Independent Talent Organization
National Independent Venue Association
National Music Publishers Association
Recording Academy
Recording Industry Association of America
SAG-AFTRA
SESAC
The Society of Composers and Lyricists
Songwriters Guild of America
Songwriters of North America
SoundExchange
CC Chairman Ron Wyden, Senate Finance Committee
Ranking Member Mike Crapo, Senate Finance Committee
Chairman Richard Neal, House Ways and Means Committee
Ranking Member Kevin Brady, House Ways and Means Committee
Try using some of your favorite songs on the short-form video app Triller, and you’ll be hard pressed to find what you’re looking for.
On Thursday, the music catalogs for Universal Music Group, Warner Music Group, Sony Music and Merlin — which provides digital licensing to many top independent labels and distributors — were removed from the platform.
A Triller spokesperson says the platform is “reassessing each of our label deals as they come due as our catalogue music usage is a small fraction of our overall business with creators.
“Some labels are more used than others and if we can make financial arrangements which make sense for the platform, on a label by label basis, we will. In other cases the usage does not justify the cost.”
The news follows a lawsuit filed by Sony Music Entertainment in August, claiming Triller had “historically failed to make payments in a timely manner” but that this issue got even worse in March 2022 when Triller “failed to make any monthly payments required under the Agreement, totaling millions of dollars.”
A source at one of the other major music companies says similar breach of contract and failure to make payments, including “millions and millions in past due royalties,” was behind Triller’s decision to pull these catalogs. The Triller spokesperson, however, called that claim “false and grossly inaccurate.”
Representatives for Universal, Warner, Sony and Merlin declined to comment.
In a Thursday morning email, Merlin’s senior director of business and legal affairs alerted members that Triller had “commenced the takedown of Merlin content.” He continued, writing “at this stage we do not believe that Merlin is the only licensor/content provider to have had content taken down. The term of our current agreement with Triller has now expired. We will update members as soon as we can regarding renewal discussions.”
Merlin members include Secretly Group, Mom + Pop, Monstercat, Symphonic, Ninja Tune, Beggars Group, FUGA, ONErpm, Domino, SubPop, Vydia and more. The Triller spokesperson told Billboard when asked about the Merlin email, “We are in active conversations with Merlin and expect to renew our relationship and continue our friendly and successful partnership.”
“As Triller has grown and expanded its portfolio of services for creators as an open-garden platform, we are recalibrating some of our partnerships with a focus towards showcasing talent and maximizing their monetization,” that statement continued.
A glance at Triller’s Discover Music page shows that there are now few official music options available after the takedowns, and the promoted new releases and top picks are largely artists with no label affiliation. The only traces left of some label-signed artists are available through searching “OG Sounds,” which are typically user-created soundtracks like remixes that sometimes contain copyrighted material, or if a signed artist collaborated as a feature on a song released independently.
The public rift between Triller and the music business dates back to about 2020, when chairman and CEO of the National Music Publishers’ Association (NMPA) David Israelite criticized the app in an Instagram post, saying Triller needed to fully license its members works. “It’s a simple proposition – license songs before you use them,” he wrote.
In November of that year, Wixen Music Publishing filed a 15-page lawsuit against Triller, suing the company for $50 million dollars, stating in the complaint that Wixen felt encouraged when Triller’s CEO appeared to agree with the NMPA’s criticism that summer, but then, after months with no agreement reached, Wixen opted to file the lawsuit.
In the indictment, Wixen alleged Triller had “brazenly disregarded copyright law and committed willful and ongoing copyright infringement,” of its more than 1,000 song catalog. The lawsuit was dismissed in February 2021.
Eventually, in March 2021, Triller came to an agreement with the NMPA on behalf of its members.
Also in early 2021, Universal Music abruptly pulled its catalog from Triller, saying the app “shamefully withheld” artist payments. A source familiar with the matter told Billboard at the time that the payments UMG claims Triller is withholding went back several months. Three months later, the two companies announced a new, worldwide licensing agreement, spanning recorded music and publishing and restoring the UMG catalog to the app.
This August, Timbaland and Swizz Beatz also sued Triller for failing to make payments due on the sale of their popular Verzuz livestream series the year prior. They claimed the platform still owed them $28 million from the deal 18 months later. That lawsuit was settled in September.
Outside of music, there have been other claims against Triller for allegedly failing to make owed payments. Boxing journalist Dan Rafael reported that Triller had not fully paid several fighters and crew members from a May 2022 fight. In August, the Washington Post reported that Triller “promised millions to Black creators” to use the app as part of a paid influencer program, but “nearly a year after…its payments to many creators have been erratic — and in some cases, nonexistent.” In September, it was also sued by a smartphone app consulting firm that said it was owed more than $132,000 in unpaid fees.
Over the past two years, Triller has repeatedly announced plans to go public but has so far failed to do so — initially through the formerly-popular ‘SPAC’ merger process, and then in June this year filed paperwork with the U.S. Securities and Exchange Commission indicating that it plans to take a more traditional IPO route. In late September, the company announced it had secured $310 million from Luxembourg-based private alternative investment group for a 36-month term following a public listing of Triller’s common stock and would aim for a public listing by early in the fourth fiscal quarter (October-December).
Michèle Hamelink was named managing director of Sony Music Publishing Benelux. In the role, Hamelink will oversee and implement creative strategy across Benelux, including building and strengthening relationships with clients, local societies and industry partners and expanding songwriter support and service offerings. Based in the company’s Benelux office, Hamelink will also continue in her existing role of senior A&R. She reports to Sony Music Publishing president of international Guy Henderson.
Layla Amjadi was hired as head of music expression at Spotify. In her new role, Amjadi will oversee a team that builds formats enabling “artists, aspiring creators and fans to creatively express themselves through and around music in new ways.” She arrives at the streaming service from Gemini, where she served as vp of product and general manager. Prior to that, she worked in various roles at Meta/Instagram for nearly a decade. She reports to Charlie Hellman, vp and global head of music product.
BMG announced a new A&R structure for its Madrid-based operation, with Marcos Fairweather leading on the recordings side and Javier Doria fronting the publishing side. Fairweather joins from Universal Music Spain, where he was A&R director. Doria has been with BMG since July 2020, when he joined the company to lead A&R across publishing and recordings. Both will report to Albert Slendebroek, who also oversees BMG in Scandinavia. Under their direction, the company will target growth in the Spanish language market, with a renewed focus on established artists.
Dani Oliva was named vp of business and legal affairs at Suzy Ryoo and Troy Carter‘s Venice Music. Oliva, a transgender man, joins the company from Oliva Law Group, P.C., which he established in 2017. “We are beyond proud to welcome Dani to Venice,” said Ryoo in a statement. “With his legal expertise as well as the distance traveled in his personal & professional journey, he is an incredible addition to our team and community at Venice.” Oliva can be reached at dani@venicemusic.co.
The Association of Independent Music (AIM) appointed Nina Radojewski as head of membership, a newly created role that brings together AIM’s membership, events and marketing and communications functions under her leadership. Previously AIM’s professional development lead, Radojewski will oversee the creation and execution of the organization’s membership strategy while continuing to lead professional development initiatives for members, including the AIM Academy and the Associate Members’ Knowledge Base. AIM’s outgoing membership manager, Jude McArdle, is stepping down after more than five years in the role. Radojewski can be reached at nina@aim.org.uk.
Cameo Carlson was appointed CEO at mtheory, where she’s worked since 2017. Also promoted at the artist development and management services company are Michael Corcoran, upped to general manager; Carmela Frangella, formerly controller, elevated to CFO; Amy Davidson, promoted to executive vp; Vince Amoroso, named senior vp, head of marketing; Jonah Berry, upped to vp of marketing out of New York and Los Angeles; and Kaitlyn Moore, promoted to vp of marketing out of Nashville. The company also hired Ed Rivadavia as senior vp, head of digital. Carlson can be reached at cameo@mtheory.com, Corcoran can be reached at michaelc@mtheory.com, Frangella can be reached at carmela@mtheory.com, Davidson can be reached at amy@mtheory.com, Amoroso can be reached at vince@mtheory.com, Berry can be reached at jonah@mtheory.com and Moore can be reached at kaitlyn@mtheory.com.
On-demand vinyl platform elasticStage appointed Raoul Chatterjee as COO. He joins the company from SoundCloud, where he served as vp of content partnerships & operations. Based in London, the Billboard 2021 International Power Player will report to elasticStage founder and CEO Steve Rhodes. Chatterjee can be reached at raoul.chatterjee@elasticstage.com.
Megan Schultz was promoted to label manager at Riser House Entertainment. She will continue to oversee all label operations and scheduling for artists signed to the company’s Riser House Records label, along with label services clients. Schutz can be reached at Megan.Schultz@RiserHouse.com.
Chase Butters was named vp of sync at Concord Music Publishing out of Los Angeles. Butters will lead a team focused on increasing and enhancing Concord’s synch placements in advertising. He reports to senior vp of sync Brooke Primont and can be reached at chase.butters@concord.com.
ATC Management added a trio of new manager partners: Brandon Sanchez, Jordan Alper and Ben Rafson. All three will join manager partner Fabienne Leys and general manager Jessica Fekete at ATC’s newly opened New York office. Sanchez and Alper bring their joint management client Yaeji to the company, while Rafson brings artist clients Avalon Emerson and Jacques Greene. Sanchez joins from New York-based record label RVNG Intl. and also co-runs independent record labels SLINK and Human Pitch; Alper has worked as a talent buyer and producer for Red Bull Music Academy NY, Trevanna Entertainment and Does Festival; and Rafson, who has been in management for nearly 15 years with a focus on electronic musicians, recently founded and serves as executive director of The Rising Artist Foundation grant system. Rafson can be reached at ben@atcmanagement.com, Alper can be reached at jordan@atcmanagement.com and Sanchez can be reached at brandon@atcmanagement.com.
Melanie Seddon was promoted to vp of brand marketing at TuneCore. She will oversee all brand marketing efforts for the company as well as brand partnerships.
Elvin Sabla has been named creative brand director at Shore Fire Media, where he will oversee the PR firm’s branding and content strategy. Sabla most recently led editorial for Crypto.com’s NFT platform.
ASM Global named Kelvin D. Moore regional vp and general manager of McCormick Place Convention Center in Chicago. Moore will focus on creating new programs and partnerships. Moore was previously regional vp and general manager for ASM Global at the Pennsylvania Convention Center. He succeeds David Causton, who has served as general manager of the venue since 2004. Moore can be reached at kmoore@asmglobal.com.
Jen Moss was hired as a senior synch executive at Bucks Music Group. Previously at Warner Music UK, she arrives at Bucks after several years away from the industry for personal reasons. She can be reached at jmoss@bucksmusicgroup.co.uk.
Rebecca Trujillo Vest, Carls Woolf and Jordan Stobbe launched Pandion Music Foundation (PMF), a nonprofit organization designed to help foster growth in the music creator community by providing the tools and networks needed to build careers “across all lines of diversity and inclusion,” according to a press release. Partners at launch include Earthstar Creation Center, 2indie.com and Sweetwater. PMF previously partnered with 2indie, a synch coaching agency, to hold a global 24-hour “Sync-O-Thon” on Sept. 28, 2022, which helped support emerging artists by bringing in music professionals to provide feedback on their songs. PMF subsequently offered workshops by Sam Knack, Nick Phelps and others. Trujillo Vest, Woolf and Stobbe first met through an online songwriting course during the pandemic. Trujillo Vest can be reached at rebecca@pandionmusicfoundation.org and Stobbe can be reached at jordan@pandionmusicfoundation.org.
Before Jay-Z became embroiled in a nasty dispute with Bacardi over their D’Usse Cognac brand, he offered to buy out Bacardi’s half of the business for $1.5 billion, according to newly unsealed legal documents that reveal the sweeping size of the ongoing legal battle.
In the new filing, attorneys for Jay-Z’s SCLiquor LLC disclosed that the star made the offer last year after Bacardi offered him just $460 million for his half of D’Usse. Bacardi quickly rejected the offer, the filing said, even though the star had proposed to pay more than three times what the liquor giant itself believed a 50% stake in the business was worth.
The new document also reveals that Jay-Z believes his share in the business is worth $2.5 billion, the first public hint at how much the star is seeking from Bacardi amid the acrimonious split.
Taken together, the disclosures offer an early glimpse into how much could be at stake in the now-sprawling legal battle over Jay-Z’s efforts to exit D’Usse, which spans at least four lawsuits in two states as well as a private arbitration case.
A rep for Jay-Z declined to comment. A spokeswoman for Bacardi did not immediately return a request for comment on the disclosures.
The legal battle over D’Usse centers on Jay-Z’s exercise of a so-called “put option” — a legal mechanism in the joint venture’s operating agreement that, when triggered, requires Bacardi to buy out Jay-Z’s half of the business. Once invoked, the two sides are supposed to negotiate in “good faith,” exchange information and agree on a fair price for Bacardi to pay.
In this week’s unsealed documents, Jay-Z’s lawyers said he triggered the clause in September 2021, but that when the two sides exchanged figures in December 2021, they came in with vastly different valuations. The rapper suggested his half of the business was worth $2.5 billion; Bacardi said the number was just $460 million.
That was when Jay-Z apparently made his counter-offer: Rather than continue to invoke his put option requiring Bacardi to buy him out, he would offer to go vice-versa. “SC formally offered to buy Bacardi’s 50% interest in D’Usse for $1.5 billion, three times Bacardi’s declared valuation of its share (but less than SC believed it was worth),” his lawyers wrote in the new documents.
When Bacardi turned down that offer, the legal battle began.
As a first step, independent experts at JPMorgan were hired to appraise Jay-Z’s stake in D’Usse, but the process quickly became bogged down in disputes over what processes and data the bank should use to do so. Those disputes were submitted to a private arbitration panel, which then led to multiple New York court lawsuits challenging the arbitration panel’s rulings. Two separate lawsuits have also been filed in Delaware court, accusing Bacardi of “stonewalling” and demanding more access to information from D’Usse.
Those cases are all ongoing, including with a testy hearing in New York court on Thursday (Dec. 1) and a potential arbitration hearing on Friday (Dec. 2).
Notably, the newly unsealed document appears to have been made public accidentally.
Like much of a legal battle that’s been shrouded in unusual secrecy, the filings were originally submitted on Nov. 22 under seal. But on Tuesday (Nov. 29) evening, they were suddenly made public on the court’s digital docket. Letters to the judge indicate that the move was unexpected and that the filing should not have been published until it was further redacted. The document, first reported by Bloomberg Law and independently obtained by Billboard, was then fully re-sealed by Thursday afternoon.
Along with Jay-Z’s massive offer, the filing also revealed other key financial information about the dispute.
For instance, Jay-Z’s lawyers say they wanted JPMorgan’s appraisal to be based on an internal Bacardi document that forecast D’Usse to sell more than 2 million cases of cognac and earn $142.8 million annually by 2026. Bacardi apparently objected, saying those figures were “aspirational” and not a good indicator of the brand’s actual value.
Whether or not JPMorgan can cite the Bacardi forecast is now one of the major points of contention in the litigation.
Read the entire unsealed document here:
Over the years, Jim Shaw had loaned his friend Dave Bell, a longtime producer, publisher and label owner in Bakersfield, California, a couple of thousand dollars for various ventures — bits and pieces at a time. “He was one of the guys who kept rolling the dice,” Shaw recalls. “He’d make a million, then lose a million. Very interesting guy.”
By 2002, Bell was starting to feel guilty about how much money he owed to Shaw, a veteran member of Buck Owens‘ Buckaroos who now runs the late country legend’s foundation. Bell proposed a unique deal: In lieu of cash, he gave Shaw publishing rights to the rockabilly song “The Goo Goo Muck,” co-written and recorded by local country singer Ronnie Cook and his band, the Gaylads, in 1962. “At the time, it was like magic beans,” Shaw says. “[Bell] had a lot of gospel songs. He’d become very religious, and that song didn’t fit into what he wanted to do.”
Shaw knew, of course, that The Cramps had released a classic new-wave psychobilly-punk version of “Goo Goo Muck” in 1981, but since then the band’s popularity had faded and he never expected it to amount to much of anything. In fall 2021, though, the producers for Netflix’s Wednesday series called to license the Cramps’ version for a synch. When the Addams Family revival came out Nov. 23, the series saw record-breaking viewership and the track took off, much like Kate Bush‘s “Running Up That Hill” last spring in Stranger Things, shooting from 2,500 streams the day before the premiere to 134,000 five days later. “It’s a really amazing, fun little bonanza,” says Shaw, 76. “I wasn’t familiar with the show, but I was happy to make the deal, and caught by surprise on all this.”
Bell, who died in 2013, was a U.S. Navy veteran who evolved from directing a church choir to recording artists, including local symphonies and a pre-stardom Merle Haggard, for his Bakersfield-area studio and his Audan Records label. He also owned a couple of publishing companies, including Damosi, named after his wife and daughters. Not much is known about Cook, who wrote “Goo Goo Muck” with Ed James. “I really thought it was a fun little song — the Duane Eddy guitar and that sound,” Shaw says. “I don’t know what this leads to. I was thinking of Pulp Fiction. Remember some of the really cool songs that got dusted off?”
Shaw, who is on the board of directors for the Buck Owens Foundation and has written songs of his own for Garth Brooks and Tom Jones, among others, recalls the late Bell as a character who was both religious and “had a potty-mouth.” Says Shaw, with a laugh: “He said, ‘The problem in this world is that people don’t pay attention to the fucking Ten Commandments.’”
Although Bell had done “very well in his life” as a label and studio owner and song publisher, Shaw says, he hit a rough period in the early 2000s and his friend started loaning him $100 or $200 at a time. “It kind of accumulated, and he was telling me how badly he felt about it. He says, ‘I want you to have this song.’ I said, ‘OK, sure,’” Shaw recalls. “It’s really cool. That’s what every songwriter and publisher hopes will happen. It’s what everybody dreams.”
Years ago, when the music business was at its low point, devastated by online piracy and struggling to sell one-dollar downloads, tech pundits used to ask why the major labels hadn’t just started their own online store. There are a few answers: They did (anyone remember PressPlay or MusicNet?), and a more serious effort would have outraged other retailers, which were still generating considerable revenue. Besides, consumers would have been reluctant to embrace a service with a limited selection, and getting too many labels together presented logistical issues (who would run it?) as well as legal ones, in the form of potential antitrust concerns. The result has been a business where technology companies have more control than rightsholders would like over pricing, promotion, and relationships with consumers.
That was then. It’s still hard to imagine any label creating its own mainstream streaming service – the kind that would compete with Spotify or Apple – but what about a smaller one, focused on a particular genre? It would be a tough sell now that consumers are used to getting all their music in one place, but the payoff – in profit, information about consumer preferences, and control of a direct marketing channel – could be significant.
As it turns out, there actually is such a service. On Nov. 21, Universal Music Group’s Deutsche Grammophon launched Stage+, which for $14.90 a month offers music from the label’s archive and that of sibling Decca Records, plus video programming and a new live performance every week. In terms of popularity, Stage+ can’t compete with mainstream platforms, but it’s not meant to – and it doesn’t even need to. It could make money with a number of subscribers in the low six figures, partly because it costs more than other services, and it gives Deutsch Grammophon a way to market other products directly to consumers.
Stage+, which was developed by Deutsche Grammophon president Dr. Clemens Trautmann under Universal Music Central Europe chairman and CEO Frank Briegmann, faces any number of challenges – consumer disinclination to subscribe to multiple services, existing specialist streaming platforms, even a rumored new project from Apple. But the product looks great, and it’s worth thinking about how a genre-focused, label-owned service might develop – and the issues it raises for the streaming model that has relatively quickly come to dominate the music business.
Right now, Stage+ only offers Universal Music content. But there’s no reason other labels couldn’t license it music. (Trautmann says he’s open to this, although he’s not seeking it out now.) Presumably, Sony Music Entertainment and Warner Music Group would be reluctant to license their classical music repertoire to a service run by their rival. But it might make financial sense to do so, since the subscription price for Stage+ would imply a better payout. Perhaps just as important, the Stage+ policy of dividing royalties according to listening time is fairer to classical performers than the standard number-of-tracks model. If you had spent decades mastering an instrument, how would you feel about hearing that your 20-minute recording was only worth a tenth as much as 10 two-minute pop songs that played for the same total amount of time.
This model could also work for other genres, which is where things really get interesting. The obvious candidate is jazz. Like classical music, it appeals to aficionados, many of whom might be willing to pay a premium price for a well-curated service that offers high-fidelity audio and video. As it happens, Universal has a substantial market share there, too: It owns Decca, Blue Note and Verve (which controls Impulse! Records) and has distribution deals with ECM Records and Concord Records (which owns the catalogs of the Prestige and Riverside labels). That’s far from everything – Sony has the important Miles Davis recordings, for example – but it would be one hell of a start. After that, who knows? Could there be room for an Americana platform, a service for independent punk, even one for jam bands?
The truth is that subscription streaming saved the music business, but the dominant model just isn’t great for some genres. Neither are the dominant services, which offer a mind-blowing selection of music but are aimed at a general audience. That has helped the music business grow, but it hasn’t always served fans focused on specific genres. Classical aficionados want better metadata to find specific performances of classic compositions, for example, while jazz devotees could use more information about which musicians play on certain recordings. Jam-band fans might want help figuring out the coolest versions of “Dark Star.”
These kinds of services probably won’t cost mainstream services many subscribers, but they could put a bit of pressure on them to reconsider some of the rules that favor pop at the expense of other genres. Why don’t services double-count songs that are more than 10 minutes long, for example, or create an easy and reliable way to search for albums based on the musicians that play on them instead of just the named artist? For the last few years, the music streaming market has been extremely competitive based on marketing and discounts – all the mainstream services offer the same music for about the same price, with a fairly similar experience. What would help record labels, as well as creators, is more competition in terms of business models, where services that offer different features face off against others that are aimed at different audiences. And who better to spark that competition than the labels themselves?
For the Record is a regular column from deputy editorial director Robert Levine analyzing news and trends in the music industry. Find more here.
The estate of Luther Vandross tapped Epic Rights — part of Universal Music Group’s merchandise and brand management company Bravado — as the global merchandise management agency to develop a multi-category worldwide retail and e-commerce program for the late singer. The agreement will see a roster of new licensing partners create branded merch and other elements to extend Vandross’ legacy in advance of multiple anniversary celebrations slated for next year. Vandross released his solo debut album, Never Too Much, in 1981; he went on to release 11 consecutive platinum albums and win a total of eight Grammys. According to a press release, over his more than 30-year career, he sold in excess of 40 million albums worldwide and also produced records for Aretha Franklin, Diana Ross and Dionne Warwick. Next year is the 20th anniversary of both his Dance With My Father album and Live at Radio City Music Hall, which marked his final live performances. Other activations will include the launch of the Luther Vandross Foundation and a remix collaboration for Black History Month.
Full-service B2B distributor FUGA, a division of Downtown Music, partnered with electronic label Insomniac Music Group for a deal that will see FUGA provide a range of distribution, marketing and label services for several labels under the Insomniac umbrella, providing access to over 260 DSPs globally. Insomniac will also be utilizing FUGA’s sync and audience engagement services and have access to its trends and analytics platform. Insomniac additionally reached a deal with Downtown Neighbouring Rights.
China-based online music platform NetEase Cloud Music struck a licensing renewal agreement with Japanese entertainment company Avex. Under the deal, the companies will collaborate on promoting the presence of Avex artists on the NetEase platform. Avex’s roster includes Ayumi Hamasaki, Ai Otsuka, Kumi Koda, Awesome City Club, HIRAIDAI, I Don’t Like Mondays and NAQT VANE.
Actor and singer-songwriter Reneé Rapp signed with WME in all areas. Known for her role on the HBO Max series The Sex Lives of College Girls, Rapp recently signed with Interscope Records, which released her debut EP, Everything to Everyone, on Nov. 11. She continues to be represented by Adam Mersel of Immersive Management, Lisa Socransky Austin and Sloane, Offer, Weber & Dern LLP.
Universal Music Group (UMG) partnered with Artist Partner Group (APG) on The Fast & Furious: Drift Tape (Phonk Vol 1), “a fan-first mixtape” released in conjunction with character pieces from Universal Pictures’ Fast & Furious franchise that are meant to reintroduce characters to fans. Led by APG CEO Mike Caren and UMG’s Steven Victor, the project features music and collaborations from Phonk music’s biggest artists, including Kordhell, MUPP, Kaito Shoma, SCXR Soul and more. The full mixtape will be released Dec. 16.
Montreal-based pianist and composer Alexandra Stréliski signed to XXIM Records/Sony Music Masterworks. The first release under the deal is the song “The Hills,” which is Stréliski’s first new music in four years; she’s slated to put out a new album in spring 2023. All forthcoming music will be released by XXIM Records/Sony Masterworks worldwide, excluding Canada, in partnership with Montreal-based Secret City Records, her Canadian label home since 2018.
MOBO Group welcomed The Orchard to its recruitment and mentoring platform MOBOLISE, which launched in beta in 2020. MOBOLISE “supports and connects career opportunities to empower diversity, excellence and transformation in the workplace,” according to a press release, via a jobs board, mentoring and career development events and educational resources. It aims to create a more equitable industry by overcoming systemic obstacles faced by Black professionals. “MOBOLISE directly supports The Orchard’s goal to attract diverse talent by providing resources and information to the MOBOLISE community as well as direct recruitment opportunities to add to our workforce,” said Naledi Nyahuma Seck, vp of diversity & inclusion at The Orchard.
The Tahoe Douglas Visitors Authority and Oak View Group reached an exclusive multi-year naming rights agreement with Tahoe Blue Vodka for a new live entertainment, sports and conference center on the south shore of Lake Tahoe. Located in Stateline, Nevada, the 6,000-capacity Tahoe Blue Center is projected to open in July 2023 and host 130 events annually. The deal includes prominent exterior and interior signage. This is the first naming rights sponsorship for the vodka brand.
Payton Smith (“Like I Knew You Would”) signed with Combustion Masters, which recently released his latest single “Need You To Not.” Smith is currently in the studio with Combustion president Chris Warren at the production helm. New music from the singer, who’s signed with Eclipse Music Group for publishing, is expected early next year.
Independent digital distributor IDOL signed a full-service digital distribution partnership with independent label Fire Records, which boasts acts including Black Lips, Jane Weaver, The Lemonheads and Vanishing Twin on its roster. IDOL will handle the digital distribution of Fire Records’ repertoire to its global network of DSPs, excluding South Korea. Fire Records will also work closely with IDOL’s international audience development team on marketing and release strategy for frontline releases, with a dedicated specialist working on the label’s back catalog.
Q Prime South signed singer-songwriter Paul Cauthen for management. Cauthen, who will be on tour throughout December and into early 2023, is working on new music for release next year. His most recent album, Country Coming Down, was released by Thirty Tigers.
Warner Music Latina has signed emerging Mexican singer-songwriter Arriola to “continue the development” of his career within the regional Mexican genre, according to a press release. Arriola (real name Eduardo Arriola Gómez) — who released his first single “En Eso Estoy” when the label announced his signing — is also currently working on additional new music that will be part of his first album under the label. – Griselda Flores
Synch clearance and licensing software Trevanna Tracks partnered with music and cue sheet reporting company Soundmouse. The deal will allow Trevanna users to move song metadata, including splits and usage, from Trevanna to Soundmouse in order to generate accurate cue sheets. “Trevanna’s data and documents give production teams everything needed to air a synced song, but it doesn’t take the next step to ensure ongoing downstream payments,” said Jennifer Freed, founder and CEO of Trevanna Tracks. “This process was brilliantly sorted by Soundmouse.” Added Soundmouse head of business development Mark Vermaat, “This partnership enables collaboration between music supervisors and editors, saves time, and significantly lessens the margin for error in reporting royalties.”
Irish singer-songwriter Lisa O’Neill signed with Rough Trade Records for the release of her next album, All of This Is Chance, which is slated for release Feb. 10.
Country trio Track45 signed with UTA for booking. Comprised of siblings Jenna, Ben and KK Johnson, the group will be working with UTA agent Lance Roberts as its day-to-day. Track45 is signed to BBR Music’s Group’s Stoney Creek Records and managed by T.R.U.T.H. Management’s Missi Gallimore.
Nettwerk Music Group signed several new artists: lo-fi hip-hop producer linanthem; Sun Lo, a new project from artist-producer Attlas and songwriter-vocalist Richard Walters; alt-pop duo Bestfriend; beatmaker and producer Mr. Käfer; and disco-pop artist and producer Wingtip. The label recently released linanthem’s single “wind in my sails,” Sun Lo’s debut single “Factory Gates”; Mr. Käfer’s single “Blurred”; and Wingtip’s single “Mr. 29.” On Dec. 9, the label will release Bestfriend’s new single “LEMON LIME.”
Natalie Carr signed with Dallas Austin‘s distribution company DAD, which will release her new song “Drive.”
Mailboat Records signed yacht rock group Yachtley Crew. The outfit, which is managed by Andy Gould and is revving up for a series of monthly performances at Palms Casino Resort’s KAOS, recently released their first original song, “Sex On the Beach.”
As streaming became the dominant mode of music consumption, fraud and “fake streams” have been regarded as a minor nuisance — generally acknowledged but seldom worried about. Most industry executives tend to see this activity as a way for aspiring acts to inflate their numbers, and thus their commercial potential, or as an avenue for grifters to steer money into their pockets by running up plays of white noise or rain sounds.
At least since this summer, however, SoundCloud has detected evidence of fraudulent streams or manipulation on multiple releases from both notable independent acts and major-label artists, including hitmakers with track records of successful singles, according to two sources familiar with the company’s operations who spoke on the condition of anonymity. And this is not unique to SoundCloud. This summer, Deezer executive Ludovic Pouilly told the French investigative publication Les Jours that it has become more common to see “artists in the top 200 who have millions of real streams” have fake streams as well.
Streaming services are increasing their effort to fight the fakes. In a statement, a spokesperson for SoundCloud said, “We take the issue of stream manipulation extremely seriously and make every effort towards identifying and mitigating inauthentic plays.” It’s not alone: Earlier this year, a Spotify spokesperson told Billboard, “Stream manipulation is an industry-wide issue that Spotify takes very seriously.” SoundCloud also works with a third-party company that “specialize[s] in bot detection” to fight stream manipulation, an executive said at a Music Biz panel in May. (The panel had a pointed title, “They’re Coming For Us: Fraudsters & How We Stop Them.”)
Streaming executives say there are a handful of ways to fraudulently boost an artist’s numbers, including harnessing bot networks or fake or stolen user accounts, and that this activity is becoming “more intense,” as Pouilly put it. At Music Biz, Napster senior vp and general counsel Matthew Eccles noted that fraud on the platform “increased over COVID.”
In fact, the current streaming business is rife with “very prevalent fraud and abuse,” according to SoundCloud vp of strategy Michael Pelczynski, who spoke at the same panel. This abuse has “cultural ramifications,” Pelczynski added: If fraudulent streams go “undetected and not policed, and [they] start influencing the way we measure the success of music, we are literally supporting inauthenticity.”
The level of fake streams detected varies by service and region. At one point, bots on Pandora were generating “a large, large fraction of spins,” according to George White, senior vp of music licensing at SiriusXM, “nearly equaling” the amount coming from human accounts. Pouilly told Les Jours that “7% of the volume of daily streams [on Deezer] is now detected as fraudulent.”
The Merlin Network, which handles digital licensing for many independent labels and distributors, used to send members a monthly report detailing the percentage of fraudulent streams from their releases on Spotify; this February, 2.5% of ad-supported streams and 1.2% of the plays from premium Spotify accounts were identified as fraudulent. (Asked about the issue, a spokesperson for the platform said that stream manipulation was “an industry-wide issue.”) The ad-supported number was nearly 10% at one point in 2020, according to one executive who received the report.
As evidence of what Pelczynski dubbed “prevalent fraud” grows, music executives worry that artists who are playing by the rules will start to feel pressure to pad their numbers in order to keep up with rivals — especially in an increasingly crowded landscape where it feels harder than ever to stand out. Paying for fraudulent streams “will become a marketing expense that everyone needs to employ if it’s left unchecked,” White warned at Music Biz.
Eccles from Napster worried that the music industry could enter a phase like professional cycling decades ago, when cyclists felt compelled “to dope” just to compete at a high level. It is “key,” Eccles stressed, “to avoid a situation where that happens in music.”
A new lawsuit claims that CNN used more than 100 different songs in international segments without paying for them, constituting copyright infringement on a “breathtaking scale.”
Freeplay Music, a company that sells so-called production music for use in web videos, television segments and other content – and hasn’t been afraid to sue over it – claims the cable news giant used the company’s library of music as “their own personal cookie jar” for segments on CNN Philippines, CNN Indonesia, CNN Chile.
“As high-profile news media companies which strive to provide the best news product all across the world, CNN and the international parties know they must obtain a license to use other’s intellectual property,” Freeplay’s lawyers wrote in the complaint. “Despite this, they willfully and consciously did not do so here on a breathtaking scale.”
The lawsuit, filed Wednesday in California federal court, claimed that CNN used 115 songs across 283 segments. And Freeplay’s lawyers say they were “not minor uses” but rather “essential to each of the segment” – allegedly often used throughout entire segments.
Discovering the illicit use of their music in foreign media segments was like “finding a needle in a haystack,” Freeplay’s lawyers say, but that CNN knew that when it allegedly stole the music: “CNN apparently counted on the difficulty of being caught in deciding to engage in this massive willful copyright infringement.”
Freeplay is seeking at least $17 million in damages, saying anything less “would not get the attention of these media goliaths that continue to commit widespread infringement of FPM’s intellectual property.”
A spokesperson for CNN did not immediately return a request for comment on Thursday.
The case is hardly Freeplay’s first. Court records show that the company has filed dozens of similar copyright lawsuits over alleged unauthorized uses of its music, including cases against online retail giant Alibaba and guitar maker Gibson. Most recently, Freeplay sued Ford Motor Co. in 2020 over accusations that the car company had used 54 different songs in online promotional videos but was was “too cheap” to pay for them.
Ford later countersued in that case, accusing Freeplay of actively seeking out litigation with “bait-and-switch” practices. The carmaker said Freeplay falsely advertises that its music is free to lure companies and individuals to the platform, only to later sue them “to extort vast amounts of money” when they used the music.
“Freeplay has asserted copyright infringement claims in dozens of lawsuits, extracting settlements in these litigations and … in an untold number of other instances where the simple threat of litigation was enough to shake down Internet users who mistakenly thought they were getting exactly what Freeplay advertises – music that was “free” to use,” Ford’s lawyers wrote at the time.
The case between Freeplay and Ford ended in a settlement last year.