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Touring can be a tough way to make a living these days, but for Arlo Guthrie, playing live comes with certain medical benefits that aren’t available in retirement.
“There’s nothing like playing before a live audience,” says the prolific songwriter, activist and storyteller who suffered a series of strokes in 2019 and decided to retire in 2020 as the pandemic shuttered the live music industry. Now, after three years resting at his home in Berkshire County, Mass. with wife Marti Ladd, the couple decided that “I could recuperate better in front of a live audience, rather than just sit at home, and both agreed I should get back out there as part of my rehabilitation.”
Today, Guthrie is sharing the details of his recovery plan, embarking on a four-city storytelling theater tour titled “Arlo Guthrie – What’s Left Of Me – A Conversation With Bob Santelli,” featuring the executive director of the Grammy Museum in Los Angeles. The tour is spread out so that each show is at least one week apart, making travel an easy back and forth trip from his home in western Massachusetts.
“I didn’t really retire from the gigs. I retired from getting to them. I’m retired from seven-hour rides in a tour bus,” Guthrie tells Billboard. The first show in the series will take place at Boston’s Schubert Theater on April 1, followed by The Egg in Albany, NY on April 21; The Pollock Theater at Monmouth University in West Long Branch, New Jersey on April 28; and The Spruce Peak PAC in Stowe, Vermont on May 27.
“What’s Left Of Me” was booked by Guthrie and Ladd’s new production company Gut3 Productions. Ladd is the director of set design for the series and has created an intimate setting with a backdrop of Arlo’s heroes and mentors hanging within a living room environment. The couple met 20 years ago in Woodstock and married in December 2021. For “What’s Left of Me,” Guthrie will talk about his life as a touring artist, his memories of his famous father Woody Guthrie and his wildly entertaining tales from the road. Guthrie has performed at Carnegie Hall, the 1967 Newport Folk Festival and the original Woodstock festival in 1969 and has released 32 acclaimed albums over his six-decade career. “What’s Left of Me” also includes rarely seen video footage along with an audience Q&A and snippets of his past performances.
Guthrie says the stroke has affected his ability to perform music and says the series is not a music show with some conversation sprinkled in between songs.
“It’s a conversation between two people with maybe some music included,” he notes. “I would rather have it that way. There may be some young people who have no idea who I am, but who got dragged to these events by overenthusiastic friends or parents, or even grandparents and you’ve got to reeducate people and tell them where you’ve been and who you’ve been and make it as much fun as possible.
That includes telling the story of “Alice’s Restaurant Massacre,” a 18-minute monologue that’s both a celebration of Thanksgiving and a not-so-subtle protest piece against the Vietnam War. The talking, satirical format was unusual when it was released in 1967 and still occasionally befuddles folk music fans.
“In 1967, I was beginning to tell my stories on stage and somebody yelled out, ‘shut up and sing,” he jokes “After ‘Alice’s Restaurant’ came out, I was back in Chicago and I was singing songs and somebody yelled ‘shut up and talk.’”
While Guthrie is still affable and gregarious six decades into his career, he’s also become an outspoken advocate and proponent for folk music and the genre’s legacy. His father Woody is one of the most significant and recognized American folk artists of the last century and Arlo has received multiple awards and accolades for his work in folk music, which he insists is more of a musical movement than a genre.
“The great folk musicians all learned how to play music the same way — on acoustic instruments in their houses. That’s the kind of music that I was brought up with. That’s the kind of music my father played. That’s the kind of music I taught my kids to play. It’s music you can take to any country in the world and sing or play with anyone – even those you may not be able to talkto. You may not even be able to say hello, but you can sit down and play something together. That to me, is really always been at the heart of what folk music is,” Guthrie explains.
“That to me is what folk music is,” he continues. “It’s how you learn music. It’s not the sound of it. It’s not the look of it. You don’t need a fancy hat for it. You don’t need lights or amplification. You don’t need anything besides experience and the will to learn how to play.”
For more on “What’s Left Of Me” and to purchase tickets, visit: www.gut3.me
Last year, Milana Rabkin Lewis, co-founder and CEO of the distribution company and payment platform Stem, was among those who read a series of frustrated tweets from the rapper Meek Mill. “I haven’t got paid from music, and I don’t know how much labels make off of me!” Mill wrote in a since-deleted thread. “How much have you spent on me as an artist? How much have you made off me as an artist?”
“Why can’t he know that?” Rabkin Lewis asks. The problem has frustrated her since she was an agent at United Talent Agency and saw “just how messy the whole process” of royalty accounting was. “We were working with major artists who realized they had no visibility into when they were going to get paid and how unrecouped they were,” she recalls.
Part of the reason she started Stem in 2015 was to provide artists with more transparency. Now Stem is debuting Royalty Services, which aims to distill labyrinthine Excel spreadsheets into digestible dashboards and will be available to labels outside of Stem’s distribution network. (Some of the major labels also have their own version of a dashboard, though managers say they can be tough to navigate.) Users can view summaries of overall costs, earnings and recoupment status. They can drill down into more granular data — to determine which streaming platform or track is generating the most money, for example — with a click. And the process of linking bank accounts and sending money to partners is straightforward.
“It’s easy to see which song is doing the most each month on which platform, how much you’re making, when you will recoup,” Rabkin Lewis says. Stem’s chief product officer Brendan Kao calls the new dashboard “the next step in our mission to improve financial clarity for the entire music industry” for both labels and artists.
Royalty accounting has been a source of artist frustration for about as long as there has been a music industry. “The mystique of the music business is that, though profits are huge, accounting is incomprehensible,” CBS boss Walter Yetnikoff wrote in his memoir. Another company hoping to inject more transparency into an industry known for opacity is CreateSafe, which made a Record Deal Simulator freely available online so artists can input their advance, recording and marketing costs and get a rough estimate of how many streams they need to generate to recoup their deal.
If anything, royalty accounting has only become more complicated in today’s digital environment. Artists often release more music with more partners than in the past and work with more producers. And revenue comes from multiple streaming services as well as platforms like TikTok and Twitch. “We’re also seeing this trend of the admin and the responsibility of paying people out going more downstream,” Rabkin Lewis adds. “Motown pays out Quality Control, for example, but there are so many layers of people that need to get paid after that,” from artists to producers to engineers, and “often the people downstream from the major have no software.”
Quality Control has also started using Stem’s technology, as has Fool’s Gold. Rabkin Lewis says she hopes to have 50 clients by the middle of 2023. “Stem’s software makes royalty data easy to read to the point that I actually want to log in myself to look at trends,” Quality Control co-founder Kevin “Coach K” Lee said in a statement. “With any other solution, I would wait for my team to generate a report and then wait again while they pull the important details out of a massive spreadsheet.”
Justin Blau, best known as the DJ-producer 3LAU, is the founder of Blume Music, another label that quickly signed on to use Royalty Services. “We used to hire an accounting firm,” Blaus says. “We’d send them everything, they’d send paperwork back, and then we’d send payments manually to each rightsholder.” This system was “inefficient,” Blau continues, to the point that it was “just obnoxious.”
He was quick to sign up for Stem’s new product: “A lot of artists have been waiting for this.”
Later this month, Chris Cobb, longtime independent operator of revered Nashville music venue Exit/In for nearly two decades, will conclude his work at the 51-year-old music venue due to the lease ending at the conclusion of 2022, as Nashville-based development firm AJ Capital Partners (which purchased the Exit/In property in 2021) are set to begin overseeing operation of Exit/In.
“It looks like 51 years of local, independent ownership and operation have come to an end,” said a statement from Chris and Telisha Cobb. “We are humbled to host this last run of concerts with friends from many eras gracing our stage again. There have been too many incredible moments to count over the 18 years we’ve stewarded Exit/In. It’s an incredibly special place that we are so fortunate to have been a part of.”
The final 2022 concert at Exit/In is slated for Nov. 23, with the second of a pair of shows from Diarrhea Planet.
A statement from AJ Capital Partners, which recently moved its headquarters from Chicago to Nashville, provided to Billboard says, “The Exit/In will remain open, as it has under the stewardship of dozens of operators over the past 51 years, as its irreplaceable self: an iconic Nashville venue and gathering place for music lovers from all over. We spent the last year securing historic protections for this special and sacred space, which we’re committed to preserving while providing some long overdue physical improvements. We look forward to the next half-century of moments and memories, and to announcing 2023 show dates very soon.”
In 2021, AJ Capital filed a request to designate the Exit/In as a historical landmark, and historic overlays were approved for a section of the property this year.
Last year, the Cobbs launched a GoFundMe campaign with the aim of purchasing Exit/In, shortly after the venue went under contract. The fundraiser received over 4,000 donations and accumulated over $270,000 from supporters. In his statement, Cobb said that the money will be donated to National Independent Venue Association (NIVA) and to Music Venue Alliance (MVAN).
Exit/In, which celebrated its 50th anniversary last year, opened in 1971 and is located at 2208 Elliston Place, as the anchor of “The Rock Block,” which over the years has been home to businesses including The End, Elliston Place Soda Shop and The Gold Rush. Exit/In quickly became known for the diverse slate of artists who have performed there — with many of their names scrawled on its Wall of Fame at the front of the building. Those artists have included Billy Joel, Etta James, Johnny Cash, Muddy Waters, Paramore, the Red Hot Chili Peppers, Chuck Berry, The Allman Brothers Band, Jason and the Scorchers, Cage the Elephant and R.E.M., among many others.
Jimmy Buffett was the first performer at the venue when it opened in 1971.
The Rock Block was commemorated with a historical marker in 2020.
This past summer, the second-largest U.S. bank, Bank of America, looked at how its customers’ spending on entertainment for the month of May compared with a year ago. What researchers found was surprisingly positive for the touring industry, and there are signs the good news is holding steady, at least for now.
Spending on concert, theater and movie tickets in May was up across all income groups. Moderate- and high-income earners — households bringing in over $50,000 and over $125,000 in annual income, respectively — exhibited the most pent-up demand, with spending levels up more than 40% in May compared with May 2021.
Demand among lower-income consumers — households earning less than $50,000 a year — was up almost as much, rising roughly 38% year to year.
In October, Bank of America surveyed its customers again to ask if they expect to increase spending in the next 12 months in a number of categories including in-home entertainment. With inflation cutting into or erasing most Americans’ pandemic cash buffers, credit card spending is on the rise, and with companies proactively laying off staff in anticipation of a recession, 21% said they plan on reducing what they spend on in-home entertainment either moderately or significantly in the next 12 months. (Sixty percent said they planned no change to their spending.)
Bank of America does not have current data on whether consumers plan to cut back on concerts and other entertainment outside their homes, so the live-music industry will have to hope that consumers will pare down their audio and video streaming service subscriptions so that they can continue seeing their favorite acts at local venues while enjoying their concession fare and buying merchandise.
Goldman Sachs analysts expect they will. Although they predict growth in the global live-music industry to slow somewhat next year, they forecast it will still put up a 4% compound annual growth rate from 2023 to 2030.
In 2022 so far, the industry has seen 5% growth in revenue despite a number of high-profile tour cancellations. Growth this year is on par with the 5% compound annual growth rate the industry experienced from 2007 to 2019.
Looking at the numbers on a more granular level reveals that the global live-music industry grew most sharply between 2007 and 2009 at the onset of the global financial crisis.
During that time, industry revenue rose from $17 billion in 2007 to over $20 billion in 2009, according to research by Goldman Sachs. But between 2010 and 2015, the industry had several years of essentially no growth as the effects of the crisis — unemployment above 10%, nationwide foreclosures — caused deep financial pain.
Even then, the live-music industry grew overall by roughly $3 billion, from $22 billion to $25 billion, during that period of austerity.
Music is often called recession-proof, and while that may hold true, the touring industry feels vulnerable, given the on-again, off-again reality that artists, promoters, venues and their support have had to contend with through the pandemic. For now, industry experts say consumers continue to spend, the industry’s revenue will continue to grow, and even in a worsening economic climate, the shows will go on.
When Live Nation reported $1.8 billion in first-quarter revenue in May, CEO Michael Rapino told investors, “Artists are back on the road and fan demand has never been stronger.” But while the concert business has largely returned to financial health in 2022 after a wobbly recovery last year, a number of acts eager to get back on the road and tap back into their primary income stream have instead found prohibitive costs that would significantly eat into or eliminate profits. And that has left them frustrated, if not furious, that the bullish picture painted by promoters and venues has eluded them.
A confluence of devastating economic factors — gas prices, artists flooding venues to make up revenue lost in the pandemic, airport chaos, supply chain shortages for tour buses, drivers, crew and equipment — has throttled even the heartiest of touring acts, especially indie artists. “The smaller shows are getting annihilated,” says Brian Ross, manager of Thievery Corporation, Guerilla Toss and Forty Feet Tall. He estimates net tour profits dropped 10% to 15% in spring and summer due to higher expenses.
Since Rapino’s rosy report in the spring, numerous previously successful touring acts have canceled shows for a variety of reasons, from COVID-19 to mental health to expenses, including Justin Bieber, Shawn Mendes, Ringo Starr, Jimmy Buffett and Animal Collective. “It’s pretty bad out there,” says Tom Windish, the Wasserman agency head of A&R who represents Billie Eilish, Tove Lo, Viagra Boys and others. “A lot of bands are going out on tour thinking they’re going to make money, and they came home and lost money.” Before the pandemic, Windish adds, many artists made their take-home pay on the “last 20% of the revenue — and now that 20% goes away.”
“It’s an extraordinarily challenging time,” says Joady Harper, founder and CEO of Rocky Road Touring, agent for U.K. bands The Mission, The Chameleons and Theatre of Hate, which postponed their 32-date triple bill club and theater tour until fall 2023 due to exorbitant costs and difficulties procuring visas. “Everybody’s sitting at home, twiddling their thumbs and counting their pennies, because the income they thought they’d have for that period just isn’t there.”
For Harper, whose company represents more than 50 acts, 2022 began in a “high spot,” with artists excited to hit the road post-quarantine and fans buying plentiful tickets. Then Russia invaded Ukraine, gas prices and plane fares shot up, and many tours were “no longer financially viable.”
“All of that on top of the already-tapped mental, spiritual, physical and emotional resources of just having made it through the past few years,” Santigold posted on Facebook in September when she announced she was canceling her tour. “Some of us are finding ourselves simply unable to make it work,” she wrote, striking a chord with frustrated musicians.
With a larger number of acts booked into a pandemic-reduced number of venues, the concert business’ supply-and-demand mechanics have shifted as well. An act that drew 1,000 fans to a show might now wind up with 800 people, according to David T. Viecelli, Chicago agent for Pavement, Joanna Newsom, Bonnie “Prince” Billy and Wire. “There’s too much going on, and people aren’t going to four shows a week anymore,” he says.
Even for largely sold-out tours like Pavement, the no-show rate has spiked due to illness or fear of it, which means a drop in merchandise sales, he adds. “It kind of hits you from all sides.”
In order to stay on the road, artists are strategically cutting costs. Ann Henningsen, who manages singer-songwriter Chris Berardo, says he has been performing more frequently with his acoustic trio than his preferred six-man rock band. Ross says Guerilla Toss has cut down on hotels. Sam Luria, who manages New Zealand’s Broods, says the duo’s lighting director programs the technology remotely rather than traveling with the crew. “You’re getting a pretty similar outcome,” he says, “but saving a good amount of money.”
One solution is that bands who might have been poised for headlining tours are pairing with others — Bodysnatcher is opening for Hatebreed, for example. “Maybe you’re not going to sell the same level of merchandise you would, but eventually you will,” says Scott Givens, senior vp of rock and metal at MNRK, the label representing Bodysnatcher. “You don’t want anybody losing money.”
Givens is optimistic the touring economic storm will pass, hoping for a broader recovery in the world economy. “We’ll be fine,” he says. Jeff DeLia, manager of The Blind Boys of Alabama, A.J. Croce and others, acknowledges the financial pain but adds that his clients remain upbeat, telling him, “We know this isn’t going to last, and we’ve just got to fight through these things.”
Less than a year after the final coronavirus restrictions were dropped on concert capacity and attendance, the country’s largest two concert promoters are forecasting record sales in 2023 across a broad swath of building categories and genres. Although another promoter says he’s concerned the future is not nearly as bright for new acts.
Live Nation’s chair for global touring, Arthur Fogel, says his company has seen “absolutely no diminishment in sales” since the full-scale return of concerts and believes there is still significant growth opportunity for the company’s top-line touring acts to command record grosses.
Likewise, AEG Presents president for North America Rick Mueller says that ticket sales for shows already on sale in 2023 indicate record revenue and attendance at every capacity level in the concert space, “from [13,000-capacity] Forest Hills Stadium in Queens, N.Y., to the [500-capacity] Roxy in Los Angeles. We’re going to make a little more next year and work a lot harder for it,” he says, predicting that staffing and supply chain shortages will remain substantial challenges.
“I used to think oversaturation was the biggest threat to the industry, but I no longer believe that bears out,” Mueller adds. His counterpart at Live Nation, Fogel, agrees, noting that less than 1% of events promoted by Live Nation were canceled in 2022.
Neither executive believes economic headwinds from prolonged inflation will significantly diminish sales or lead to a short-term rollback on prices for big-ticket tours, like Bruce Springsteen’s 2023 Live Nation run. “The level of spending around the show hasn’t changed,” says Fogel.
He also says that the top 20 stadium and arena tours “at any given time” are now more diverse than ever, representing multiple genres across multiple demographics. For example, Bad Bunny’s El Último Tour del Mundo tour is the highest-grossing Latin outing in Billboard Boxscore history.
Independent promoter Jim Cressman, founder and owner of Canada’s Invictus Entertainment, says that Live Nation and AEG’s bullish outlook for 2023 is good news for the concert business but worries there’s not enough entry points for new fans or new bands.
“The added expenses that artists have because of inflation and rising energy costs make the economics very difficult for developing acts,” he says, echoing the complaints of indie managers. Cressman recommends that these artists connect early with sponsors to underwrite their tours. “Before the pandemic, sponsors provided a nice income bump,” he says. “Now, they’re critical to covering your costs.”
Megan Thee Stallion and Big Sean have reached a settlement with two little-known Detroit rappers, ending a lawsuit claiming the hip-hop superstars ripped off an earlier song with their 2020 collaboration “Go Crazy.”
In a lawsuit filed in July, Duawn “Go Hard Major” Payne and Harrell “H Matic” James claimed that Megan’s song sounded so much like their 2012 track “Krazy” that there was no way it had been created independently without illegal copying.
But just four months later, attorneys for the pair of accusers notified a federal judge Friday (Nov. 11) that the two sides had “reached an agreement in principle to settle their dispute in its entirety.”
The public filing did not disclose any terms of the agreement, like whether any money would exchange hands or songwriting credits would be altered. Attorneys for both sides did not immediately return requests for more details.
“Go Crazy,” released on Stallion’s 2020 debut album Good News, didn’t chart as a single, but the album spent 75 weeks on the Billboard 200 and peaked at No. 2 in December 2020. The song featured both Big Sean and 2 Chainz, though the latter was not named in the current lawsuit.
In their July 25 complaint, Payne and James claimed that various aspects of “Krazy” and “Go Crazy” are “nearly identical,” including the wording of the chorus, melodic and harmonic sequences and the use of cadence.
“An average lay observer would recognize the infringing work as having been appropriated from [‘Krazy’] because of the striking similarity between the two compositions and the way in which they are performed,” said the complaint.
Since “Krazy” was never released by a label, the attorneys for the two accusers made a creative, hyper-local argument for why Stallion or Big Sean had enough “access” to the song that they were able to copy it — a key requirement in any copyright infringement lawsuit. They said Payne and James had performed the song in “West Detroit hip hop clubs and bars” where Big Sean — a Motor City native — had frequently gone. The pair also sold “thousands of physical copies of CDs” in the parking lots of those same clubs, their lawyers argued.
The Ledger is a weekly newsletter about the economics of the music business sent to Billboard Pro subscribers. An abbreviated version of the newsletter is published online.
Most publicly traded companies have released earnings for the latest quarter (ended Sept. 30), and most of those results have shown encouraging signs for investors and the music industry alike. Earnings by Universal Music Group, Spotify, Live Nation, SiriusXM are in the books. Notable companies yet to announce include Warner Music Group (Nov. 22) and Tencent Music Entertainment (Nov. 15).
If there is one over-arching narrative, it’s that inflation and economic uncertainty haven’t ruined music’s post-pandemic recovery. Revenue growth is strong, aside from some softness related to a slowdown in advertising spending that impacts broadcast radio and ad-supported streaming. Consumer spending on everything from concerts to vinyl records is healthy – despite the around-the-clock warnings of an impending recession and the highest inflation rates in four decades eating into consumers’ wallets. When companies have raised prices for tickets and concessions at concerts, music fans, by and large, haven’t blinked. Even long-stagnant music subscription prices are on the rise, and nobody expects a consumer backlash.
Not that music companies’ stock prices reflect this optimism. Stocks in general have taken a beating in 2022. Music stocks have suffered, too, although stocks ended the week on a high note. The Billboard Global Music Index, a measure of 20 publicly traded music companies’ stocks, climbed 12.7% this week after markets rallied on Thursday and Friday on encouraging news about the slowing U.S. inflation rate.
Here are five quick takeaways from third-quarter earnings and the statements made by the companies’ management teams.
1. The subscription business model is insulating creators and rights holders from economic uncertainty. Music royalties are popular with investors in part because they are counter-cyclical, meaning their returns have little correlation with changes in the broader market. Put another way, when the economy sours, people are more likely to cut back on grocery spending or travel than cancel a Spotify subscription. Consumers might feel pinched in their pocketbooks, but Spotify and SiriusXM added 7 million and 187,000 subscribers, respectively, in the third quarter, and YouTube announced on Wednesday that it surpassed 80 million subscribers to YouTube Music and Premium, an increase of 30 million in about 14 months. Stock prices at companies more exposed to inflation pressures fared best on Thursday, as stocks surged on news that the annual change in the consumer price index in the U.S. fell to 7.7%. Shares of radio companies iHeartMedia and Audacy climbed 10.0% and 14.0%, respectively. Live entertainment companies also did well: MSG Entertainment was +5.6%, Live Nation was +5.1%, and ticketing companies Eventbrite and Vivid Seats were +8.3 and +9.2%, respectively.
2. Podcasts are a growing, stabilizing force. Spotify’s podcast business has rightly captured headlines as the company uses spoken-word content to build engagement, generate advertising revenue and improve on the gross margins of its core music business. The number of monthly users who consumed podcasts grew “in the substantial double-digits” year-over-year, the company said. But other companies’ podcast businesses get less attention despite their importance to their own futures. Radio companies – namely iHeartMedia, Cumulus Media and Audacy – have fast-growing podcast businesses. LiveOne, primarily a music streaming company, has a fast-growing podcast division, PodcastOne, that made $17.2 million of revenue in the last two quarters on the strength of such shows as The Adam Carolla Show, Cold Case Files and Uncut with Jay Cutler. The catch is that podcast growth has little direct impact on the music business outside of helping those platforms – digital and broadcast – that produce royalties for record labels and publishers. Music rights owners could better tap into this growing market if there were better systems for licensing music to podcast creators.
3. With share prices relatively low, companies are increasingly buying back shares to bolster shareholder value and help share prices. Among the companies currently engaged in stock repurchase programs are Spotify, MSG Entertainment, Cumulus Media, Audacy, SiriusXM, Townsquare Media and LiveOne. Spotify announced a $1 billion share buyback program in August 2021, and it spent $2 million and $24 million repurchasing shares in the second and third quarters, respectively. Cumulus Media has $21.1 million remaining in its $50 million share repurchase authorization announced in May. Last month, MSG Entertainment authorized $75 million for share buybacks on top of a $175 million, one-time dividend worth $7 per share paid on Oct. 31 to shareholders of record on Oct. 17. And LiveOne announced on Thursday that it will expand its share repurchase program, originally planned for 2 million shares (worth about $1.5 million at Friday’s closing price), by an additional $2 million. More buybacks could be on the way soon: Universal Music Group shareholders voted in May to give the company’s board the ability to repurchase up to 10% of the issued share capital.
4. Strong growth in “rest of world” markets. Believe’s revenue in Asia Pacific and Africa grew 61.1% to 52.3 million euros ($53.2 million), about the same as its European revenues excluding France and Germany. Spotify’s “rest of world” markets improved their share of monthly active users to 26% in the third quarter, up from 21% in the prior-year period. Also, “rest of world” and Latin America each gained a percentage point in shares of Spotify subscribers while North America and Europe both lost a percentage point of subscriber share. As Billboard’s Elizabeth Dilts Marshall reported last week, investors are increasingly eyeing companies in the Middle East and North Africa as streaming transforms those regions.
5. Spinoffs are going to separate high-growth, high-potential businesses. MSG Entertainment plans to spin off its MSG Sphere venue currently under construction in Las Vegas along with its Tao Hospitality Group. The remaining MSG Entertainment will retain the live entertainment business – namely the portfolio of venues such as Madison Square Garden and Radio City Music Hall – and MSG Networks, a sports broadcast network. Ryman Hospitality will spin off its Opry Entertainment Group – possibly within four years, based on its agreement with two new investors, Atairos and NBCUniversal. LiveOne plans to file an S-1 document with the SEC by Dec. 15 for a spin-off of its podcast division, PodcastOne, which accounted for about 37% of the company’s total revenues in the six-month period ended Sept. 30. LiveOne’s management and board believe the company’s share price undervalues the sum of its parts and spinning off PodcastOne would maximize shareholder value and better position the division for M&A and talent acquisition.
Today (Nov. 11), the highly-anticipated sequel to the 2018 blockbuster film Black Panther, called Black Panther: Wakanda Forever, reaches theaters in the United States. But already, its soundtrack — released today through Roc Nation/Def Jam/Hollywood Records — is making waves: its lead single, “Lift Me Up” by Rihanna, debuted at No. 2 on the Hot 100 this week, the elusive singer’s 32nd top 10 record and first since 2017, and became just the fourth song this century to debut in the top 10 of the all-format Radio Songs chart.
It’s a considerable success, not just for Rihanna but for the Wakanda soundtrack as a whole, which is full of artists from Nigeria, Mexico, the U.K. and the U.S. and blends local language music and artists with the cultural connectivity of the film — and helps Def Jam’s executive vp/chief creative officer and one of the producers of the project, Archie Davis, earn the title of Billboard’s Executive of the Week.
“There’s a spiritual connection with this song and the conviction in Rihanna’s delivery that engages listeners,” Davis says about “Lift Me Up.” “I think once audiences see the film, they’ll feel that energy even more.”
Here, Davis tells Billboard about putting the soundtrack together, the impact of Rihanna’s involvement, as well as that of filmmaker Ryan Coogler, composer and producer Ludwig Göransson, and late Black Panther actor Chadwick Boseman, and the strategies behind marketing soundtrack albums as opposed to an artist’s album. “A great soundtrack reminds you of a film, but a great album feels so vivid that you can almost see it play out in your head,” he says. “We try to do both.”
This week, the lead single from the Wakanda Forever soundtrack, Rihanna’s “Lift Me Up,” debuted at No. 2 on the Billboard Hot 100 and became just the fourth song this century to debut in the top 10 of the Radio Songs chart. What key decision did you make to help make that happen?
It was a team effort, one thousand percent. It was important we set up the release properly on such a short timeline. A key component was carrying this record on tour around the world to make sure the right people heard it before it was released. Shout out to our radio teams at both Def Jam and Roc Nation for working tirelessly, leaving no stone unturned. All the records that our radio teams broke helped pave the way for us to debut in the fashion we did. The music video was also an integral component, which we shot on the Monday of release week and had out by that Friday. It was a complete effort by everyone to help us debut “Lift Me Up” with real impact.
This is Rihanna’s first song as a lead artist since 2016. How did you get her involved in this project?
I give all credit to the filmmaker for connecting with her when she saw the film. I think that helped move her emotionally to even want to be part of this project. Kudos to Ryan Coogler and Ludwig Göransson, and a million praises to Tems, Rihanna, Tunji, Wale, Davies, Jay Brown, Omar Grant, Shari Bryant, and the whole Roc Nation team for pulling it together. I also think, in a way, a lot of this came from Chad.
What was it about this song that you felt resonated so well, not just for the film but also among music fans?
Its relatability. The lyrics “Lift me up / hold me down, keep me close / safe and sound.” There are so many people we wish we could say that to. Those are words we tell our children, wish our ancestors could say to us, maybe even pray at times. There’s a spiritual connection with this song and the conviction in Rihanna’s delivery that engages listeners. I think once audiences see the film, they’ll feel that energy even more.
What did you want to get across with this soundtrack?
We wanted this project to be an immersive audio experience. I see the music existing as an invisible character, an extension of Wakandan culture that can be heard sonically and felt emotionally. These songs are all tied to emotions in a way I’ve never seen done before in a film. There’s an intentionality behind all the music, and my hope is audiences will be equally submersed in the music as they are experiencing the film. The two entities work hand in hand. There are a few different languages on the soundtrack, but those willing to research will find easter eggs through the music.
This album features a slew of Nigerian and Mexican artists, as well as American and British hip-hop artists. How did you choose who was involved and how did you make sure that it all fit together?
I think we chose by prioritizing authenticity to the story and understanding the nature of our platform. For example, while exploring Mayan Mexican culture it was important to choose artists that could relay such a precious identity. However, that’s not to say we couldn’t hear an artist like Rema shine the way he does on “Pantera” alongside Aleman. This is where Ludwig’s genius presents itself. He was learning how to construct these sounds with producers from their respective cultures while simultaneously experimenting. Authenticity was paramount. We also wanted to make sure the voices of many, even some that are lesser known, were represented. To think this movie and music would only resonate in the U.S. would’ve been a disservice.
Soundtracks can be hit or miss on the charts — some come and go, but some become massive hits. What goes into making a great film soundtrack that also translates to chart success?
In my opinion I believe it’s a great story, amazing narrative, and a host of incredible artists that care about the art being created. None of this can be done without amazing artists. If everyone understands the weight of the message we’re trying to convey it helps tremendously. My job is to make sure I help that message resonate within culture and the world. A massive amount of research goes into these projects, and direction from the composer and director helps as well. We’re ultimately trying to create a world that’s portrayed visually with music and there’s a great level of care that goes into each project. Those are general pillars, but each project is different from the last. Being able to learn, adapt and react is important. Sometimes there’s momentum or energy that comes from the least expected places that you must follow. It may lead to a dead end, but there’s something to learn in that process. Being able to harness those experiences and channel it holistically with a clear vision in mind all combines to make a great soundtrack.
What goes into developing and marketing a soundtrack like this as opposed to an artist’s album?
Soundtracks are worked on by lots of people, with many influences and real deadlines. When it comes to marketing a soundtrack, I feel like you’re also marketing the community to ensure it’s surrounded by the culture being represented. I think a key difference with a soundtrack is I have a built-in story I’m moving off of, whereas an artist is a blank canvas. An artist’s album a lot of times is someone’s real life experience. It’s a different conversation when you have to put your face out there as an artist. With a soundtrack like this you get to play make believe, in a way. There’s more room for imagination and that’s where we can expound upon as much as possible for the audience. A great soundtrack reminds you of a film, but a great album feels so vivid that you can almost see it play out in your head. We try to do both.
Endeavor Group Holdings, the parent company of UFC, WME and IMG, posted revenue of $1.2 billion in its third quarter, as foreign exchange rate headwinds pushed it to a net loss of $12.5 million.
Despite the difficult macroeconomic environment being felt across the tech and media sectors, Endeavor remains bullish on its prospects, touting its exposure to sports and live music, which are still posting strong results.
“Our business performed well in the quarter despite a turbulent macroeconomic environment,” said Endeavor CEO Ari Emanuel, in a statement. “Given our unique positioning relative to a set of highly resilient secular industry trends across premium sports and entertainment content and live events, we remain confident in our ability to continue delivering on our long-term growth strategy while also being good stewards of capital.”
Emanuel elaborated on those comments on the earnings call, saying that the company simply isn’t seeing demand for live events and experiences slow down.
“Spending habits have shifted, but our company has a presence at every point on the purchase chain,” he said. “During COVID people were buying stuff, and post-COVID, they are more focused on experiences, and we are the benefit of that side of the equation.”
Endeavor also adjusted its full-year 2022 guidance, raising its guidance for adjusted EBITDA to between $1.145 billion to $1.175, and indicating that revenue will be between $5.235 billion and $5.325 billion, on the low end of its prior guidance.
During the earnings conference call, Emanuel reitrated the company’s position as a middleman, able to carve out pieces of the content and live sports business, and in its owned and operated segments, to take the entire slice.
“These leading tech companies go head to head with major streaming and media players, including Disney, Netflix, NBCUniversal, Warner Bros. Discovery and Paramount for the best video, podcasts gaming, and social content,” Emanuel said.
On the sports side, Emanuel said that “we’ve positioned ourselves on the supply side of this industry, working directly with rightsholders, and sportsbooks to deliver everything from official data, streaming feeds to betting and mobile apps.”
“In sports, the demand for premium talent-led content and shows no sign of slowing. In fact, opportunities for talent are expanding into new formats,” he added.
The company is also undergoing significant change in its structure, as it completed the acquisition of OpenBet (and prepares to launch a new sports betting division) and with the sale of 80 percent of Endeavor Content, which impacted revenues at the company’s representation unit.
In representation, revenue was $388.3 million, down 42 percent from the same quarter a year ago. That drop was almost entirely due to the loss of Endeavor Content, which was sold to CJ ENM. When excluding revenue tied to Endeavor Content, the company’s representation business was up 17 percent compared to last year, suggesting continued strength in the sector.
In sports, which is led by UFC and Professional Bull Riders, revenue was $402.3 million, up 39 percent, thanks to increased rights fees, an extra live pay-per-view event, and more live attendance at events.
And in Endeavor’s events, experiences and rights segment, revenues were $440.6 million, down 1 percent compared to last year, due to the timing of some events.
Endeavor says it also paid off some $250 million in debt in Q3, and plans to pay down the same amout in Q4.
This article was originally published by The Hollywood Reporter.