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Sony Music US Latin has officially opened its new headquarters in Puerto Rico, Billboard can confirm today (Dec. 8).
The multinational record label, which has had its facilities on the island since 1980 (formerly CBS Records), is relocating to the modern office complex Ciudadela in Santurce, where the label’s artists will have access to a press room, recording studio, content creation room for networks, and other benefits.
“These new offices are a tangible demonstration of what Puerto Rico represents for Sony and for Latino culture,” Alex Gallardo, president of Sony Music US Latin tells Billboard via email. “In addition, this expansion will allow us to provide a better service and support our current artists even more.”
Reaffirming its commitment to Boricua talent, Victor Manuelle, Pedro Capó, and Luis Figueroa were some of the Sony artists present at the inauguration, alongside Gallardo and Tuti Bou, vp and general manager of Sony Music US Latin (Puerto Rico Branch).
“After 42 years of having founded our company in Puerto Rico, today we celebrate this new stage,” Bou adds. “At Sony Music PR we are proud to be the only established multinational committed to the development of our music and culture. The space is modern, and spacious, and in which we have our own recording studio to continue developing, promoting, and discovering new talent. Sony Music Puerto Rico will continue to be ‘The House of Artists.’”
In addition, the label has commissioned a mural from the renowned artists of The Stencil Network in support of the urban development in Santurce.
Sony Music Latin offices in Puerto Rico
Dianeris Nieves/Sony Music Latin
Popular music in 2022 is more diffuse than ever. With TikTok entrenched as the industry’s most effective (and maddening) marketing tool, streaming services continually democratizing listening and dulling the impact of conventional singles, and songs from years (if not decades) earlier resurfacing as contemporary hits, it’s increasingly rare to see new releases rule over all sectors of the pop landscape.
But this past year, that very rarity was the norm for Columbia Records. As listeners’ ever-evolving consumption habits pulled them every which way — and rarely toward the same handful of releases — the label dominated in a way that could be described as old-fashioned: with acclaimed full-length albums from established superstars that spawned massive hit singles and sold lots of physical records. The monoculture may be long dead, but Columbia delivered a pretty convincing flashback to it in 2022.
Evidence of the label’s all-encompassing impact was on clear display during the Grammy nominations announcement in November. Columbia claims three of the most-nominated artists for the awards in February 2023: Adele, Beyoncé and Harry Styles, who have a combined 22 nods. An album of the year win seems especially likely for the label, with Adele’s 30, Beyoncé’s Renaissance and Styles’ Harry’s House considered the three front-runners to take home the award, according to betting site GoldDerby.
And the albums’ commercial performances easily matched their industry plaudits. Each debuted at No. 1 on both the Billboard 200 and Top Album Sales charts during the same weeks that their respective lead singles (“Easy on Me,” “Break My Soul” and “As It Was”) also led the Billboard Hot 100, as part of their combined 27 weeks atop the chart.
Meanwhile, the gains Columbia made in 2021 with The Kid LAROI and Lil Nas X — artists who had found commercial success before Columbia signed them, but who the label helped establish as A-level hit-makers — carried over, with the radio success of their respective chart-topping singles “Stay” (with Justin Bieber) and “Industry Baby” (with Jack Harlow) spilling well into the new year and helping Columbia earn Billboard’s Top Radio Songs Label distinction for 2022. And the label kept an eye on the future, aggressively signing up-and-coming sensations like Nicky Youre (“Sunroof”), Megan Moroney (“Tennessee Orange”) and Yahritza y Su Esencia (“Soy El Unico”), helping those acts get footholds in the industry following their early TikTok virality.
“We’re always focused on two things, really: One, breaking new artists, and two, elevating the careers of superstars,” says Peter Gray, executive vp/head of promotion at Columbia. “We don’t control the timing of the calendar, or the tides or the moons or the stars — the material flows as it flows, and we’re certainly happy to deliver it as it comes. But to see both of those things happening simultaneously — turning new young talent into household names, and then finding superlative moments for the world’s biggest stars — are equally gratifying and exciting for our team.”
Captaining that team are chairman/CEO Ron Perry — installed in the position in 2018 to take over for his mentor Rob Stringer after the latter’s move to run parent company Sony Music Entertainment — and Jen Mallory, the label’s executive vp/GM. Though label veterans like Adele, Beyoncé and Styles predate the duo at Columbia, Perry and Mallory have helped to expand those artists’ reaches and keep them vital to the contemporary pop mainstream, while also signing artists like LAROI, Lil Nas X, “Boyfriend” breakout Dove Cameron and recent Latin Grammy album of the year winner Rosalía, developing them to new levels of stardom.
Described by his staff as a master of A&R, Perry is known as an executive with a unique understanding of artists’ perspectives. It helps that he’s a musician himself, as well as a producer and songwriter — he even landed production and writing credits on BTS’ Columbia-released 2021 megahit “Butter.” “He’s the only major-label chief who’s also a musician and truly in the studio,” Gray says.
He also brings an artist’s pure passion for music to his position as Columbia’s lead decision-maker. “My favorite thing in this entire job is getting a song from an artist that’s just incredible — that excites me more than anything else,” Perry says. “Things are changing, things are evolving, things are always going to be different. But at the end of the day, great music is the biggest factor.”
Meanwhile, Mallory is a marketing specialist, approaching Columbia’s album campaigns from a global perspective (previously, she served as Sony’s senior vp of international marketing). Sitting together and talking to Billboard, it’s also clear that while Perry takes the lead, he relies on Mallory to fill in the gaps in his thinking — even down to a single word. As he searches for the most precise adjective to describe the nature of musical successes in 2022, Mallory offers options — “Transient, like they don’t last very long? Ephemeral?” — as Perry racks his brain.
“There’s not really one answer to [who does what between them] — it’s very fluid, it’s by project,” says marketing senior vp Erika Alfredson. “But that’s the beauty of the two of them: They’re able to sort of see that in real time — and they’ve gotten in a great rhythm of being able to kind of know where each of their places is, and where they can be the most effective.”
Ron Perry photographed on November 22, 2022 at Columbia Records in New York.
Aaron Richter
The combination of Perry’s expert touch with artists and Mallory’s global marketing vision has allowed Columbia to both land and grow successful artists at all levels of the industry — and while their 2022 success has a classic feel, both remain fixated on securing the label’s future. “We’re constantly trying to evolve and be better, honestly,” Perry says. “And we’re always learning… we’re never satisfied with the way a thing is done. We always want to improve, and…”
“Improve the status quo,” Mallory finishes. “I mean listen, [the market] is just all so fractured now, it’s all so…”
“That’s the word I was looking for earlier — ‘fractured’!” Perry interjects.
When you start a year like this, do you get the feeling that it’s going to be one when everything aligns?
Jen Mallory: I mean, you never know. But all the artists that were [Grammy] nominated, and of course the top three that we’re talking about [Adele’s 30, Styles’ Harry’s House and Beyoncé’s Renaissance], they’re incredible bodies of work. So it’s thrilling.
Ron Perry: And it’s well-deserved. We’re happy with the outcome.
And in the meantime, you’re still aggressively going after new artists like Yahritza, Megan Moroney and Nicky Youre. Is it important to keep stockpiling up-and-coming artists while you’re enjoying those successes up top?
Perry: I definitely wouldn’t call it stockpiling. We’re very deliberate in what we sign. I don’t think we sign that much, to be honest with you. Columbia’s just an amazing place to be, both historically and currently. And I think — Rob [Stringer] taught me this — that people that come in here, we give them a lot of love, a lot of attention, a lot of strategy. And we’re pretty careful in who we sign, to make sure that’s the right fit.
I’ve heard that you’re very aggressive in going after the artists that you’re really excited about.
Perry: Yeah, when you’re passionate, and you want something… I’m very aggressive about doing that. If it’s someone that I feel belongs here, then I really want them to be here.
Those three artists — Yahritza, Moroney and Youre — all had early success on TikTok. Is that where most of Columbia’s artist scouting is happening these days?
Perry: All these platforms, it’s always changing. We’ll be talking about something else a couple years from now. At the end of the day, you have to sign incredible talent. The platforms will always change and the talent won’t. So if someone is working on TikTok, you want someone because they’re great. Because… look at Twitter right now. If something happens [to the platform], you want to be able to have a great artist no matter what the situation is. Not necessarily because they’re great on one platform.
I actually prefer to avoid a viral hit early on in someone’s career. It’s too difficult to overcome that, if it’s too early.
Nicky Youre’s management told Billboard that one of the main reasons they decided to come to Columbia is because you have such a great reputation for radio. Do you take pride in that? Is it something you feel you can offer to up-and-coming artists?
Perry: Well, first of all, I think our reputation is that we’re artist-first. And that comes from Rob Stringer. And Rob, who’s really my mentor, taught me how to go from being an A&R person to being a chairman/CEO, and that the reputation of this company is really the artistic integrity and the amazing artists that this company has had… since the beginning of this company until today.
Have we done well at radio? I think we’ve done great. Peter Gray has come in, and I think we’ve gone from No. 9 to No. 1 in market share over a four-year period. I call the shots of which record to go with. I think we have a very high batting average with what we go to radio with. And I think Peter has done a tremendous job across all formats to make those records a big success.
In 2022 and 2023, I’m not sure that radio’s the No. 1 selling point in an artist’s career. It is a selling point, it is part of the picture, but we offer a lot of strategic help, and creative support, and with so many things that go just beyond this one thing.
So when you’re talking to those younger artists, telling them what Columbia can offer them that they can’t do on their own, what are you telling them?
Perry: Um… Jen?
Mallory: I think, again, it goes back to artist-first, and I think Rob has set us both up for success. What we do is we help an artist amplify, and help an artist build a world, right? Obviously radio’s a part of it, international’s a part of it, figuring out how to create a kind of community, fan-building… But no one campaign is like the other, and it’s all bespoke to the artist. And at the end of the day, artists need to find teams that they feel comfortable around, that they feel understand them. I think, ultimately, we’ve built a team here that does that.
Jen Mallory photographed on November 22, 2022 at Columbia Records in New York.
Aaron Richter
When you talk about the evolving landscape, what’s the biggest evolution that you’ve noticed over the last year or two that has really changed the way you think about how business is done here, or just the industry in general?
Perry: Obviously in the past year or so, catalog [consumption] has gone up. And with TikTok, the older records are climbing the charts, so front-line records take a little less space right now.
So are you taking a more open-minded view to what could be promoted, or what could be considered a new release, in light of the fact that songs from five to seven years ago are basically being treated like new hits?
Perry: Absolutely. We put everything on the table.
Mallory: Good music is good music, right?
Perry: There’s really no rules anymore.
And is that exciting to you?
Perry: Oh, it’s exciting to us.
Mallory: Super exciting.
Perry: We talk about that all the time. I mean… listen, two to three years ago we started teasing records [online], and that was an exciting time. And now as it’s happening within the entire marketplace, we’re looking at the next thing. What’s the next thing that’s going to be groundbreaking? So we love being challenged, and right now, the market’s interesting.
Going back to the bigger artists that you’ve had this year — each of them had immediate impact. Big first-week numbers, not just on the albums side but on the songs side, with each of those albums having an accompanying Hot 100 No. 1 single the same week the album was No. 1. Is that something that’s a priority to Columbia, to come out of the gate screaming and capture those big moments and headlines with the first-week performance?
Mallory: I mean, with those three artists? Absolutely. Again, each one is different. I think all the work that was done on [Styles’ 2019 album] Fine Line for Harry brought his fans into Harry’s House in a big, big way. So we had a huge, seismic kind of launch. And “As It Was” is an incredible song, and the album is fantastic front-to-back. So all of that played a part in such a big week one.
Perry: And with Harry, Beyoncé, they’ve been in this company for a long time. And Rob Stringer is extremely involved creatively with them. Very helpful.
Mallory: And Beyoncé, I think the way that she welcomed people back outside [with “Break My Soul”] off the back of the pandemic — that song was just a celebration of being out of the mask and back outside and with people again — from a narrative perspective, that played a part in [its success]. I think this lives in the streets, this lives in culture. Not only with “Break My Soul,” but now again with “Cuff It” — it has been beautiful to watch.
I talked to a couple of people in your promotions and marketing departments, and they said, “Well, yeah, the first week’s great and important, but we’re looking at 12 to 18 months on an album.” Is that harder to do in 2022? What’s most important to keeping the album fresh for that long?
Mallory: I also think it’s about building a long-term narrative and strategy and world for a fan to celebrate and step into, right? With Harry, we’re continuing to roll [out] singles and new kinds of chapters of this Harry’s House that stay fresh every time. And same thing with Beyoncé. We have so much more coming, obviously. Even Adele, I mean [30] is a year old and she just launched [her Las Vegas residency] and was incredible.
Perry: The [residency debut] was insane. One of the best things I’ve ever seen.
Jen, you mentioned “Cuff It.” TikTok is very unpredictable as a marketing tool, but is it a powerful thing to have in your back pocket when it helps a song like “Cuff It” take off?
Mallory: I mean, it’s just exciting to see people celebrating this music the way they are, right? This album has landed in culture, and people have just made it their own, in a way. And that hasn’t been the case before. And this is all Beyoncé — this is rolling out exactly how she wanted it to.
Perry: TikTok is a mirror of culture, you know? And therefore, if you’re impacting culture, people on the app are going to use the sound.
You mention more coming with Beyoncé — I think everyone basically knows that to be the case but isn’t sure when or what or where. Is it challenging to keep that balance between fans paying attention and listening to the album but also waiting for more to come?
Perry: I think nine Grammy nominations kind of speak for themselves in terms of what’s happening right now with Beyoncé.
Is there anything you can tell me about what Beyoncé has coming up?
Perry: No. She’s nominated for the Grammys, though!
Do you look to your artists’ live shows to not only raise awareness of an album but also give a boost to their entire catalog? Are you looking at the numbers there?
Mallory: Yeah. I mean, specifically, I think Rosalía is a good one to talk about. As she made her way through Europe — she started in Spain, and we kept a close watch on how that was lifting [her 2022 album] Motomami. It had a tremendous effect, because it’s probably one of the best live shows I’ve ever seen. And so people saw it and then engaged with the music again.
Perry: Another show you have to see. We’re going to give you a whole list of shows! (Both laugh.)
Rosalía
Kevin Winter/GI
Let’s talk about some experiences you’ve had with artists who are still more up-and-coming. I find Dominic Fike particularly interesting — there were reports about a bidding war and a $4 million offer to sign him. And he has had success, but I’m sure you would agree that there’s still potential to be reached there. Meanwhile, he’s on maybe the hottest TV show in the world right now, Euphoria. How do you convert that sort of buzz and success into eyes on his music career?
Perry: I think 2023 will be the year that… musically, all the stars align [for Fike]. He’s on tour right now, his new music is unbelievable. And obviously the show has done a lot for him. He’s just naturally gifted in almost everything — and incredibly good-looking. I really believe that this is the year that he could be one of the big, big breakthroughs across the industry.
And you had success like that with The Kid LAROI last year. I think people were looking for him this year to take even a step further, and it has been a bit rocky — he had a high-profile management switch, and his single “Thousand Miles” did well but didn’t quite take him to the next level. How do you see his 2023?
Perry: LAROI’s got great new music that he’s working on as well. He toured for most of the year. He toured everywhere, really for the first time. “Stay” is one of the biggest songs of all time. I think you can’t really compete with that record. Just like Lil Nas X couldn’t really compete with “Old Town Road,” you know what I mean? And I’ve heard the [new] music, it’s unbelievable. And so I think sometimes we have perceptions that actually aren’t accurate. It’s a touring year, and he’s got a real fan base. And so I think that he’s going to come back big this year.
You’re known to be a sort of artist whisperer when it comes to dealing with younger acts. What’s the most important thing in communicating with a younger artist?
Perry: Communicating! That’s exactly what’s important. You communicate — again, our job is to support [the artists]. Not everything we deal with with them is positive. Not every record is going to work for every artist. So I think it’s having a long-term plan, having the artist knowing that the label is there for a long time to support them.
Mallory: Not just when you’re in cycle, right? So just making sure that there’s communication, always.
Perry: And not just when it’s positive results. And that’s why Jen is so great, because Jen has amazing relationships with our artists, our managers — and not just amazing ideas, but also execution.
When you’re both communicating with these artists, do you play different roles? Is there a contrasting style in your strengths at dealing with artists in these respects?
Perry: Um… (Indicates Mallory should answer first.)
Mallory: I mean, listen… he’s an incredible A&R guy. His superpower is the music. But he’s also very, very involved with everything else. He’s an incredibly creative person generally, so very much involved in marketing and digital, very good with numbers, the rest of it. So yes, he probably spends more time talking about the music, and I talk about other things… the rollout, the marketing, the strategy. But again, he’s not not involved with that — he’s very much involved with every facet of the campaigns.
Perry: And I play Jen music all the time, and she’s got great ears. We just have an amazing collaboration and friendship, and I think that it makes what we do and how much time we spend here really fun, honestly.
Mallory: I would agree with that… I mean, listen, we both have very strong personalities, I would say. But we see eye-to-eye on a lot of things. I think that’s accurate. I don’t think there’s a lot of infighting.
Can you remember a time when you disagreed on a best path forward with someone or something? Or philosophically…
Perry: I can’t recall anything. I can’t recall right now.
Mallory: No, I can’t recall right now. For the most part, we’re a really good team. Not “for the most part” — we are a really good team.
And who else is in the inner circle of trust when making the bigger decisions? Who do you lean on when it comes to areas where you don’t feel yourselves the strongest?
Perry: I think we’re really good at collaborating with our senior staff. The reality is I could get ideas from really anywhere.
Mallory: That’s a benefit of the culture here… to his point, ideas can come from anywhere. There maybe isn’t that same sort of hierarchy that there used to be in an old-school system. We very much want to hear from every person. And we play to people’s strengths.
What are you looking forward to in the future? What trends are we going to see go even further, or what are we not talking about yet that we will be in years to come?
Perry: Future trends. Wow. Well, I have ideas, as we always have ideas, but I will not give them away. Because they’re our ideas. (Laughs.) So we’re always thinking about the future. We’re always trying to do things differently. We’re always trying to innovate. We’re trying to always think ahead. I think what we’ve accomplished here as a company in the past several years has shown that.
Mallory: I mean, it’s all so niche now. Niche communities, right? So we have to figure out how to knit those communities together and create importance and a long-term narrative and build out worlds. And that’s what we love to do here, and we have so many incredible artists that we get to work with to do that. But there’s always going to be disruption. Every year, we’re saying, “What’s going to be around the next bend?”
This story will appear in the Dec. 10, 2022, issue of Billboard.
LONDON — Hipgnosis Songs Funds reported a 7.5% year-on-year rise in gross revenue to $91.7 million for the six months ended Sept. 30, up from $85.3 million in the same period the previous year, at the company’s bi-annual presentation to investors, held in London Thursday (Dec. 8).
Net revenue — gross revenue minus royalties paid to songwriters under contract and administered catalogs — grew 5.8% to $78.4 million during the same period, while earnings before interest, taxes, depreciation and amortization (EBITDA) increased 16.9% year-on-year to $63.8 million.
Hipgnosis’ portfolio of over 65,000 songs, which includes hits by Dave Stewart, Timbaland, Journey, Mark Ronson and Barry Manilow, and includes the writer’s and/or publisher’s share of 13 of YouTube’s top 30 most viewed videos, has a net asset value (NAV) of $1.52 billion, down from $1.58 billion on March 31, according to the company’s mid-year financial results.
They report its “operative” net asset value as $2.22 billion, down from $2.24 billion six months prior. The aggregate fair value of Hipgnosis’ extensive portfolio was calculated by independent valuer Citrin Cooperman at $2.67 billion.
Speaking at the investor presentation, held at London’s Savoy Place, Hipgnosis’ founder and chief executive Merck Mercuriadis said he shared investors’ concern over the Guernsey-registered company’s share price, which has fallen by nearly 30% on the London Stock Exchange over the past six months as investor interest in music stocks has cooled. The share price at the close of trading on Monday was £0.81.5, down from £1.26.0 at the start of the year.
“I’m not going to pretend that the current share price is anything other than disappointing,” said Mercuriadis at the start of an almost three-hour presentation, which also included talks by Hipgnosis Songs Fund chief financial officer Chris Helm, Hipgnosis Song Management president and COO Ben Katovsky and chief music officer Ted Cockle, as well as a brief live music performance by rock guitarist Richie Sambora.
(Hipgnosis Songs Fund is the acquirer of music publishing and recording rights, while Hipgnosis Songs Management manages the publicly traded company’s catalog. There is also Hipgnosis Songs Capital ICAV, an investment vehicle established in partnership with Blackstone that earlier this year acquired Justin Timberlake’s back catalog, but is separate from the London-listed Hipgnosis Songs Fund.)
Mercuriadis said that Hipgnosis’ current share price “fundamentally undervalues the company” and he was confident the company’s extensive portfolio and proactive drive to grow revenues from its 146 catalogs, coupled with the continued growth of the global music industry, “supports our longer-term expectations for substantial revenue growth” and “will deliver superior shareholder returns over the medium term.”
Despite what Mercuriadis said was a “very challenging environment,” Hipgnosis operative net asset value per share remained steady at $1.8312 in the six months ended Sept. 30, which, when translated into pound sterling (at a sterling to dollar exchange rate of $1.2223), gave an equivalent net asset value of 149.82p as of Dec. 6.
Like-for-like pro forma (PFAR) revenues in the first half of the calendar year was $58.5 million, a 7.8% increase on the comparative period in 2021.
After the pandemic shutdown that darkened theaters on the Las Vegas Strip from February 2020 until July 2021, the “Entertainment Capital of the World’ is now amid a new golden era of entertainment. After opening both Allegiant Stadium and Resorts World Theatre in 2021, now in their first full year these two new venues and the existing Dolby Live performed top in their class according to Billboard’s year-end Boxscore charts thanks to residencies by Silk Sonic, Katy Perry, Lady Gaga and more. And that boom’s expected to continue for the foreseeable future.
“Coming back as strongly and swiftly as we have has been such a surprise because we didn’t know what to expect,” says John Nelson, senior vp of Concerts West/AEG Presents, Las Vegas, which books the Resorts World and select Allegiant Stadium shows. “It taught us that we can’t always tell what’s just ahead of us. But Vegas is changing. If you interpret that definition of entertainment more broadly to include sports and spectacles, Vegas is continuing for the next decade as the entertainment capital of the world with F1 in 2023 and Super Bowl coming in 2024.”
Formerly Park Theater at MGM, Dolby Live features Live Nation residency shows such as Lady Gaga Jazz + Piano, Silk Sonic and Usher, topped the category for venues from 5,000 to 10,000 capacity with 478,000 tickets grossing $114.5 million over 98 shows according to figures reported to Billboard Boxscore. There, Bruno Mars and Anderson .Paak’s Silk Sonic played 51 shows throughout the year, grossing $50.4 million; Usher played 25 shows with $24.1 million gross; and Lady Gaga capped out her run with 9 shows bringing in $12.9 million.
“The Vegas entertainment community worked tirelessly behind the scenes to get entertainment back up and running again,” says Amanda Moore-Saunders, senior vp of Las Vegas residencies for Live Nation. “It’s mind-blowing to know that our team booked and marketed over 900 shows in Las Vegas in 2022, with residencies from the biggest artists in the world such as Adele, Gaga, Shania [Twain], Miranda [Lambert], Usher and many more, plus now we have Garth Brooks to look forward to in 2023; not to mention booking 13 of the 15 concerts at Allegiant Stadium this year with sell-out shows from BTS, Metallica, Bad Bunny and more.”
Allegiant Stadium, which debuted with sold-out shows from Illenium and Garth Brooks in July 2021 — also signifying the return to touring after the pandemic — grossed $182.5 million with over 1 million tickets sold from 24 shows in 2022. The new stadium with 65,000 seats has opened the city up to large touring shows, which previously passed by Las Vegas. Top 10 grossing tours, including Live Nation’s Bad Bunny, Red Hot Chili Peppers, Def Leppard & Mötley Crüe and The Weeknd and AEG’s Elton John and The Rolling Stones all played the venue in its first 15 months. BTS ($35.9 million), Bad Bunny ($22.1 million) and The Rolling Stones ($14.8 million) were the venue’s top earners.
“I’ve never seen anything like this,” says Chris Wright, general manager of Allegiant. “I’ve seen venues turn around in markets but this is such a unique thing. The Raiders are fantastic partners. With the city and the state’s foresight to invest in this building, so many entities are all truly pulling together, working in the same direction for common success. One of the things I truly have come to love about the city is all of these disparate entities are not so disparate. People work together here to make something successful. And it’s really amazing to watch. I don’t think a lot of cities have that dynamic.”
Wright, who was previously vp and general manager of Oakland Coliseum and Oracle Arena, knew that the idea of a stadium in Las Vegas was already a risk, coupled with the task of opening a venue of that scale in the middle of a pandemic.
“There were a number of people with lots of experience who understood the business who had questioned whether a stadium in Vegas would truly do significant business. And here we are,” says Wright. Allegiant almost doubled the numbers of its closer competitor SoFi Stadium in Inglewood, California. SoFi grossed $107.8 million over 11 shows with 547,000 tickets sold. SoFi and Allegiant, both newcomers, joined State Farm stadium in Arizona in establishing a touring route.
“We fit into a routing through L.A. and Arizona — sitting in the middle [that works for artists to] add another date. But more than that, we have the ability to draw people to come to shows in Las Vegas who see the same shows elsewhere,” Wright says, noting that given the city’s vast entertainment offering it is easy for consumers to build multi-show Vegas weekends — a stadium show, a residency, a sporting event and more. But for the newcomer, getting the right content is an important piece of the puzzle and that came from building a team with strong relationships.
“[Our opening strategy] was an ‘everything’ strategy, our relationships with Live Nation and AEG were instrumental to bringing shows into the stadium and demonstrating that it works,” says Wright. “[We built a team] that canvases all avenues of the music industry — promoters, agents who we have relationships with, managers who we have relationships — constantly going at every opportunity and advancing forward. On a day-to-day basis, you just want to grab as much as you can and you’re constantly trying to move on events.”
With so much demand within the city and the number of venues available to book, getting the right content becomes increasingly difficult as many acts will do residency engagements prior to going on tour.
“It’s definitely competitive. I think if someone is going out on a stadium tour without factoring in a residency component, or a festival play, then I think it makes perfect sense to play Allegiant Stadium. It gets a little more complicated when someone is trying to calculate the impact of a residency either in front of their tour or behind their tour,” Wright says. “But we’ve gotten to the point now where people recognize you can do a stadium play and then come back and do a residency and be wildly successful doing that. I think one complements the other.”
For theaters under 5,000 capacity, newcomer AEG’s Resorts World Theatre, opening in 2021 with residencies from Katy Perry (40 shows, $24.7 million), Luke Bryan (18 shows, $10.5 million) and Carrie Underwood (18 shows, $12.4 million), grossed $55,272,018 over 87 shows with 326,510 tickets sold.
“Resorts World stepped up and made this enormous commitment to build the greatest theater in Las Vegas during a pandemic. They followed through and they did it. They did it on time and we opened and coincided with Vegas’ reemergence. Every day we’re grateful, surprised and happy with what’s happening,” says Bobby Reynolds, senior vp of AEG Presents Las Vegas.
Reynolds says standards across the city have been raised since the pandemic: “The city is firing on all cylinders, whether it’s entertainment or hotels — 20 months, a billion dollars. It is refreshing to see that pent up demand we thought was going to be there really is.”
He continues, “Katy’s show is beautifully produced. It’s huge. It’s massive, it’s larger than life by design. Luke’s concept for his show is so flexible and moves around so well. It’s so impressive with the risers of the stage, and of course, his catwalk that comes over the audience and Carrie’s show with its water feature and pyro. Everyone came in and did their own thing. Kevin Hart coming in to shoot for his next streaming special is a big feather in our cap and he is coming back on New Year’s Eve. I’d be surprised if Kevin didn’t return for more shows.”
In the highly competitive over 15,0001-plus-capacity category, T-Mobile Arena, which is located within the Park MGM campus, took fourth with $124.7 million grossed over 58 shows and 731,000 tickets sold.
George Strait played shows on Dec. 3-4, 2021 and Feb. 11-12, combining to $10.1 million; Daddy Yankee grossed $4.1 million on Aug. 6 and 20; and My Chemical Romance took in $2.3 million on Oct. 7.
“MGM Resorts is home to the industry’s premier entertainment venues [like Dolby Live and T-Mobile Arena]. The success we’ve seen the past two years is a true testament to our employees, event partners, and loyal entertainment and sports fans who enjoy the array of experiences we offer,” says Chris Baldizan, MGM Resorts International’s executive vp of entertainment. “We have hosted some of the world’s preeminent artists and sporting events over the years and look forward to delivering more exciting content in the months and years ahead.”
Live Nation Las Vegas president Kurt Melien concludes, “[We] are uniquely positioned to support live entertainment at every level including residency programming and big arena and stadium business, to our clubs and theaters, as well as a strong pipeline of festivals. We’ve been able to support artists as they bring more concerts and more creativity than ever to the city.”
Rock and blues singer-songwriter Chris Rea has sold his “music interests” to BMG. The deal includes the royalty shares of his 17 studio albums, including hits like “Driving Home for Christmas,” “On The Beach,” “Road to Hell,” and “Fool (If You Think Its Over).”
Electric Feel Entertainment has signed singer-songwriter Xplicit to a management deal, and Sony Music Publishing has signed the artist for publishing. Xplicit is known for penning some of pop’s stickiest hits of the last decade, including cuts like Justin Bieber’s “Anyone,” Fifth Harmony’s “Work From Home,” and Lil Dirk/Morgan Wallen’s “Broadway Girls.”
Liz Rose has renewed her publishing deal with Warner Chappell Music. Rose is regarded as one of the most essential songwriters in Nashville today and is particularly known for her collaborations with Taylor Swift. She has also worked with Maren Morris, Miranda Lambert, Ingrid Andress, Little Big Town, and more.
BMG has acquired the royalty interests of Haddaway‘s recordings. A multi-platinum Eurodance act, Haddaway is best know for their songs “What is Love,” “Life” and “Rock My Heart.”
Concord Music Publishing has partnered with Chromatic Music to sign producer and songwriter Aaron Chafin to a co-publishing agreement. The deal entails both his back catalog and future works made under the term of the deal. It marks the second-ever signing for the Toger Brown-founded Chromatic Music, following their deal with Nashville-based talent Lauren Hungate.
Jesse Murphy has signed an exclusive publishing deal with peermusic Nashville. Son of country singer David Lee Murphy, Jesse is part of crossover band House Whiskey. This marks the first signing under the tenure of Michael Knox, president of peermusic Nashville.
The Songwriters Hall of Fame recently hosted a documentary film screening and panel of “Killing Me Softly With His Songs,” a tribute to composer Charles Fox that chronicles his life and work. The hitmaker behind classic cuts like “Killing Me Softly With His Song,” “I Got A Name,” and “Ready To Take A Chance Again,” as well as iconic television show themes for Happy Days, Laverne & Shirley, The Love Boat, Wonder Woman and more, Fox is one of the most defining songwriters of his generation.
Big Yellow Dog Music has inked a publishing and label deal with Kyle Coulahan. The protege of legendary producer Chips Moman (Waylon Jennings, Elvis Presley, Willie Nelson), Coulahan is an up and coming country act that also writes for other artists across Nashville.
AJ Smith has signed a new exclusive publishing deal with Wise Music Group. Born in Denver and now based out of New York City, Smith is a pop artist on the rise, with songs “We’re All Gonna Die,” “Confetti” and “Grammy.”
Centricity Publishing has renewed their publishing deal with songwriter, singer and multi-instrumentalist, Kyle Williams. A recent winner of ABC’s Songland, Williams is one of Christian’s most talented writers, and he has built a career out of writing for other Christian artists as well as working on his solo projects and band We Are the Messengers.
Warner Chappell Music has linked with the company Group Projects to launch a joint publishing venture. Group Projects’ new publishing outfit, founded by Anthony Manker and Cooper Anstett, has already found a first signee, Sam Martinez. Born and raised in Virginia, Martinez moved to Nashville to pursue music. He’s worked closely with collaborators like Zack Dyer, Ben Stoll, Jared Scott, and more.
Bucks Music Group has inked an exclusive publishing agreement with Yahael Camara-Onono. The musician is best known for his work as both the band leader and creator of West African collective Balimaya Project.
Julie Greenwald, Atlantic Music Group chairman/CEO, and Craig Kallman, Atlantic Records chairman/CEO, will receive the 2023 Grammy Salute to Industry Icons award. The award will be presented at the Pre-Grammy Gala at the Beverly Hilton Hotel in Beverly Hills, Calif. on Saturday, Feb. 4, 2023. The annual event is presented jointly by industry legend Clive Davis and the Recording Academy.
This will be the first time since 2020 that the event will take place. Sony Music Group chairman Rob Stringer was announced as the recipient last year. He was scheduled to receive the award on Sun, Jan. 30, 2022, the night before the 64th Annual Grammy Awards, but the event was canceled because of a surge related to the COVID-19 pandemic. The Grammys telecast itself was pushed back to April 3, 2022 and moved to the MGM Grand Garden Arena in Las Vegas. The award was presented to Stringer in Las Vegas by Recording Academy CEO Harvey Mason jr. Stringer was also acknowledged as the Icon honoree on the Grammy Awards telecast. But he missed out on the gala.
The Recording Academy and Davis will celebrate Greenwald and Kallman’s accomplishments at this year’s event, set for the night before the 65th Annual Grammy Awards, which will return to Crypto.com Arena in Los Angeles (formerly the Staples Center) on Feb. 5, 2023.
“Respected across the music community, Julie and Craig have fostered the careers of an incredible range of talent,” Mason said in a statement. “They both have a passion and love for music, and they are constantly pushing the music industry forward with their transformative work with the artist community. We are so honored to celebrate these two industry titans at this year’s Pre-Grammy Gala.”
“I’ve personally known Julie and Craig for many years and it’s so very exciting to celebrate their exceptional creativity and achievements at this year’s Pre-Grammy Gala,” said Davis, a previous honoree at this event. “What a special night it will be spotlighting them and their incredible music and artists!”
Greenwald and Kallman first joined forces in 2004, when Greenwald moved to Atlantic from Island Def Jam. Greenwald and Kallman will be the first pair to receive the Grammy Salute to Industry Icons Honor since Herb Alpert & Jerry Moss, the co-founders of A&M Records.
In addition to Davis, Alpert & Moss and Stringer, the roster of previous Pre-Grammy Gala honorees includes Clarence Avant, Irving Azoff, Martin Bandier, Sir Richard Branson, Sean “Diddy” Combs, Shawn “JAY-Z” Carter, Ahmet Ertegun, David Geffen, Berry Gordy, Lucian Grainge, Debra L. Lee, Doug Morris, Mo Ostin, and Antonio “L.A.” Reid.
The recently formed Atlantic Music Group, which includes the Atlantic and 300 Elektra label families, garnered nearly 40 Grammy nominations this year. Its top nominees this year include Lizzo, with five nods, including album, record and song of the year; Coldplay and Jack Harlow, with three nods each; and GAYLE with a nod for song of the year.
The Atlantic Records site has a list of nearly 200 “active artists” for its various labels, including Big Beat Records, Canvasback, Elektra Records, Fueled By Ramen, Maybach Music Group, and Roadrunner Records.
The site also lists more than 60 “legacy artists” and six Broadway cast albums, including the blockbusters Hamilton and Dear Evan Hansen.
Atlantic Records is celebrating its 75th anniversary. The label was founded in October 1947 by Ahmet Ertegun and Herb Abramson. In 1967, Atlantic became a wholly owned subsidiary of Warner Bros.-Seven Arts, now the Warner Music Group. In 2004, Atlantic and its sister label Elektra were merged into the Atlantic Records Group.
The invitation-only Pre-Grammy Gala has become one of the most exclusive Grammy Week events. Sometimes, the event makes news, as it did three years ago when Combs put the Recording Academy on notice that he wanted to see major changes in the way it operated.
“Truth be told, hip-hop has never been respected by the Grammys,” Combs noted in his acceptance speech. “Black music has never been respected by the Grammys to the point that it should be … And that stops right now. I’m officially starting the clock. You’ve got 365 days to get this sh-t together. We need transparency, we need diversity.”
Deanie Parker was a high-school glee club member aiming to be a star when she first met Stax Records co-founder Jim Stewart in 1962. Instead, she ended up occupying a front row seat as one of Stax’s longtime executives, witnessing the storied label’s rise, fall and rise again. Appointed publicity coordinator in 1965, she advanced to director of publicity in 1967, director of publicity, artist relations and public relations in 1968 and then vp of public affairs in 1973. Now retired as the founding president/CEO of the Soulsville Foundation, located at the original site of the Memphis-based label, Parker pays tribute to Stewart in this as-told-to reflection.
When I first met Jim Stewart in 1962, it had everything to do with my wanting to be on the road with Gladys Knight, Aretha Franklin, Patti LaBelle and Tina Turner — and to rival them. Of course, that never happened. Fortunately, both Jim and I were smart enough to know that I lacked the power and the tenacity. I also didn’t have Tina’s legs [laughs].
In the early ‘60s in Memphis, there was at least one talent show a week, mostly on Beale Street. A male group that was part of our high school glee club with me was looking for a lead vocalist. After we got together, the glee club teacher decided that we were good enough to enter one of the talent shows — the first prize being an audition for this new studio, Stax. We won first prize and auditioned for its founder, Jim.
He signed us and we later had a regional hit, but nothing beyond that. At any rate, it wasn’t long after Jim signed us that he provided me with an opportunity to experience firsthand what it was like for a Black artist to be on the road and the conditions under which they had to perform. That’s when I recognized that I was never going to compete with Stax’s queen Carla Thomas or other women artists. I was no threat at all. So I decided to pursue the administrative side of the business, publicity and marketing.
Fortunately for me, Stax was in its infancy. We were viewed as a backwater town on the Mississippi River and didn’t have anyone to publicize or promote what the organization was doing or to help groom the artists for the wonderful media inquiries that we started receiving as the hits rolled out. We were with Atlantic at the time. Jim provided the opportunity for me to learn that skill set while getting on-the-job experience.
I didn’t realize how much Jim was despised for what he was doing. People couldn’t get over the fact that he was providing opportunities for [Black] people who were being demeaned in every way that you could imagine. But the Stax philosophy was a welcoming one. Jim and Estelle [Axton, Jim’s sister and Stax co-founder] were not judgmental. Instead, they took the time to hear what it was we wanted to do, what we thought we could do and the commitments that we were prepared to make in order to make Stax better, to be part of an incredible organization that gave us this inimitable music.
Again, remember we’re in the South. Not only doesn’t anybody understand what the hell we’re doing, they don’t have any respect for it. Jim never talked about the hatred verbatim. But he was always very clear about the fact that as a country fiddler, when he first heard a Ray Charles song — I don’t remember which one now — his taste in music was never the same again. He knew then that what he wanted to do in Memphis was devote his time, attention and energy to recording his own music that would rival Charles’. He never hid that.
In terms of the racism and all of its tentacles that we were experiencing, what Jim did was take a very inflexible position about what was acceptable behavior and what would not be tolerated. He never ceased to remind us that anything that could be misconstrued as illegal would destroy us. Because the authorities and power structure in Memphis were waiting on an opportunity to take something that was uncommon in other places, perhaps, and use it against us to shut Stax’s doors.
That was his way of acknowledging that he was experiencing the same things we were. Like one day when he was standing outside underneath the marquee, talking to Isaac Hayes. A policeman came along and said, “You can’t be out here talking to Black people on the streets.” Jim tried to reason with him. But the policeman said, “I’ll take your ass down and lock you up.”
During the last 10 years, I had the opportunity to talk to Jim about how he dealt with all of that.
And he said, “My mother and father taught me something that worked and still works today that enabled me to press on and survive.” And that was the golden rule: treat people the way you want to be treated. Jim paid a hell of a price for his belief and determination in living up to that.
His ability to assimilate into an environment that was predominantly Black was because he respected the fact that all of us have something that we can bring to the table. That’s part of what made Stax great. So was the fact that perhaps it was the only place in Memphis that was totally integrated — another lesson. Forget all the BS about why we shouldn’t get along or not like each other. If you find something that you can enjoy together, that makes you happy and you could make a living from it? Then throw away everything else and run to that something. The artists may not have been polished but they were authentic. Jim accepted them in all of their rawness. He appreciated, respected and loved them for allowing him to record what they had because he knew what they had was infectious.
What Jim looked and listened for with an artist was his big secret. Watching him trying to keep time to the beat was embarrassing [laughs]. Yet Jim had impeccable hearing and precise timing. When he got behind that console, he knew exactly what he was trying to hear and what he was trying to feel. It was innate; something that God placed in him when he was born. You couldn’t touch it. He could look through the control rooms’ glass window at Booker T. & the M.G.’s on the floor and he knew if you weren’t in the right tempo or out of key. The one thing you could see about Jim was that he was in his element being outside of his element. The test of time shows that he had a freaking secret formula that nobody has been able to emulate. Even today the music just blows you away.
When Atlantic threw him a curve [a contractual stipulation that Atlantic owned the masters to the Stax albums being distributed], I don’t know if he kicked the dog when he got home or not. You know what I’m saying? But in my presence, he never cursed about it. He was a soft-spoken person; reserved. I just know that he was unhappy. I’m sure that he was miserable; that his level of confidence in people, especially in the music business, was crushed. And I’m sure that he blamed himself in some ways for not having been more attentive and less trusting. There’s no way on God’s earth that you can make me believe that Atlantic’s legal department and Jerry Wexler didn’t know what they were doing. Jim was a handshake-on-the-deal kind of man. It was a bitter lesson.
However, if Jim hadn’t been a do-right man, the good Lord would not have introduced him to Al Bell. There wouldn’t have been a solution to the dilemma. Jim could have saved his own behind and forgotten about us but that’s not what he did. His attitude was that we were all in the boat together. And his solution was to get up, dust himself off, learn from it and find a plan. That’s when we moved away from Atlantic and began building a catalog. We turned Stax into a factory, working day and night to release the soul explosion of singles and albums that became the rebirth of Stax.
My most touching memory of Jim happened after my stepfather’s mother died in Chicago. He and my mother had just moved to Memphis and didn’t have the money to transport his mother’s body to Memphis for burial. So I asked Jim if Stax could loan me $300-$400 to transport her body. And he made it happen, which he didn’t have to do. I wasn’t making enough with my writer royalties or anything else for him to feel secure that I’d pay it back. But I did. He trusted me and I’ll never forget it.
The American Music Fairness Act (AMFA), which would require AM/FM stations to pay performance royalties to music creators and copyright holders for radio airplay in the U.S., just cleared a key hurdle in Congress — though the bill is unlikely to pass before the new session of Congress convenes in January.
In a mark-up session on Wednesday (Dec. 7), the House Judiciary Committee (which deals with copyright matters) voted to advance the bill, clearing its way for a full vote on the House floor. To become law, the bill would need to be approved by the full House of Representatives as well as the Senate and then signed into law by President Biden. However, the proposed legislation is unlikely to pass in the current session of Congress, which is drawing to a close at the end of the month, unless it’s tacked onto a must-pass bill during the lame duck period.
In an opening statement prior to the vote, Judiciary Committee ranking member Jim Jordan (R-Ohio) noted that bipartisan negotiations over the AMFA in recent months “stalled and never reached a resolution,” though he expressed confidence the bill could make it through the next Congress.
“While today’s debate is an important start in this conversation, if the American music Fairness Act has not become law this Congress, negotiations must resume next year,” Jordan said. “We believe there’s a deal to be struck here that is fair to all sides most importantly, fair to taxpayers and consumers.”
The AMFA is just the latest attempt by members of Congress to compel radio stations to pay performance royalties, which is a common practice in other countries but has not historically been required in the U.S. In Nov. 2019, Sen. Marsha Blackburn (R-TN) and Rep. Jerrold Nadler (D-NY) introduced a similar bill, the Ask Musicians for Music Act, which would have allowed artists and copyright owners to negotiate performance royalty rates with radio stations in exchange for permission to play their music. That piece of legislation followed a previous bill, the Fair Play Fair Pay Act — also introduced by Blackburn and Nadler — that set out to achieve the same goal.
The AMFA was introduced in the House by Reps. Ted Deutch (D-FL) and Darrell Issa (R-CA) in June 2021, with the legislation announced during a press conference attended by singers Dionne Warwick and Sam Moore and Dropkick Murphys singer/bassist Ken Casey. A companion bill was introduced in the Senate by Sens. Alex Padilla (D-CA) and Marsha Blackburn (R-TN) this past September.
Unlike satellite/online radio and streaming services, AM/FM stations pay only songwriter royalties on the music they broadcast. To rectify that, the AMFA legislation would establish fair market value for radio performance royalties in the same way it has been for those other platforms.
The bill was a response to the Local Radio Freedom Act, a non-binding resolution introduced in May 2021 by Rep. Steve Womack (R-AR) and Rep. Kathy Castor (D-FL) that opposes the imposition of a performance royalty, which proponents argue would be financially devastating for broadcasters. A companion resolution was introduced in the Senate by Martin Heinrich (D-NM) and John Barrasso (R-WY). Both resolutions are backed by the National Association of Broadcasters (NAB), which has long been opposed to enforcing a performance royalty payout on terrestrial radio.
In a statement on Wednesday’s vote, Recording Academy CEO Harvey Mason jr. called it “an important step,” adding, “I am grateful to Chairman Nadler, Rep. Issa, and members of the committee for supporting the music community’s right to fair pay. It is vital to the health of our industry that creators are compensated for the use of their intellectual property on terrestrial radio, and the Recording Academy will continue to advocate for AMFA until this bill is signed into law.”
The Recording Academy is a key supporter of the AMFA along with organizations including the AFL-CIO, the American Association of Independent Music (A2IM), the American Federation of Musicians, the Recording Industry Association of America (RIAA), SAG-AFTRA, SoundExchange and the musicFIRST Coalition. Over the past several weeks, more than 100 artists including Warwick, Common, Harry Belafonte, Jack White, Becky G, Cyndi Lauper and Gloria Estefan have signed their names to a letter urging lawmakers to support the bill.
“To be clear, this fight is far from over,” said musicFIRST chairman and former Democratic congressman Joe Crowley in a statement. “We still have further to go before this important bill can be passed into law and improve the lives of artists across this country, and we know that Big Radio corporations will continue to oppose us every step of the way.”
In his own statement celebrating Wednesday’s vote, SoundExchange president and CEO Michael Huppe called on the full House to pass the bill. “Tens of thousands of music creators – our family, friends, and neighbors – are counting on Congress to do the right thing and help them get paid for their work. We cannot let them down,” he said.
On the other side of the issue, NAB CEO and president Curtis LeGeyt thanked the committee members who voted against advancing the AMFA, along with members of Congress who have supported the Local Radio Freedom Act resolution that stands in opposition to the bill.
“These lawmakers understand that AMFA will harm local broadcasters and audiences around the country, undermine our ability to serve their communities and ultimately fail artists by leading to less music airplay,” said LeGeyt. “Broadcasters urge the recording industry to join us in serious discussions instead of using the few legislative days left in the calendar to pursue divisive legislation that faces broad congressional opposition.”
In a year historically high inflation has wreaked havoc on the costs of both touring and producing music, musicians and record labels received a bit of reprieve — thanks to high inflation.
The Copyright Royalty Board, which sets royalty rates for some streams in the United States, announced on Dec. 2 that per-stream rates for noninteractive webcasters’ streams will take a big jump in 2023: commercial webcasters will pay 0.3 cents per stream for subscription performances, up 7.1% from 0.28 cents in 2022, and 0.24 cents per stream for ad-supported performances, up 9.1% from 0.22 cents. Non-commercial webcasters’ per-stream royalty rate for 2023 is 0.24 cents for all digital audio transmissions in excess of 159,140 aggregate tuning hours in a month on a channel or station.
The CRB’s calculated the adjustment by multiplying the base rate by the percentage change in the CPI-U published by the Bureau of Labor Statistics before Dec. 1, 2022 (298.012), and the CPI-U for Nov. 2020 (260.229). In 2015, the CRB decided to add an annual cost-of-living adjustment to royalty rates paid for plays of programmed streams for 2016 to 2020. The rates for the current period, 2021 2025, are also adjusted annually. Previously, the CRB established a slate of increasing rates for a five-year period and did not revisit the rates annually.
Artists are ensured to feel the bump in royalty rates because webcasting royalties are paid by streaming services to SoundExchange, which distributes payments directly to performing artists from noninteractive webcasters such as Pandora. In contrast, on-demand services cannot operate under a statutory license and must secure licensing agreements from record labels. So, royalties from on-demand services such as as Spotify and Apple Music are paid directly to labels, which in turn pay artists according to the terms of the recording contract (or don’t pay artists if expenses have not been recouped).
A raise from noninteractive webcasters affects only a minority of an artist’s digital revenues, however. SoundExchange distributions – which also include royalties for performances by satellite radio and cable broadcasters — in the first half of 2022 declined 4.5% year over year to $464.9 million, according to the RIAA. That was about 7.2% of total streaming royalties, down from 34.4% in 2016. Today, most streaming royalties come from paid subscription services, which accounted for $4.5 billion of revenue in the first half of the year and are growing at nearly at double-digit rate.
Still, noninteractive streaming royalties have risen considerably over the years thanks to the cost-of-living adjustments. In 2016, a webcaster such as Pandora paid out 0.22 cents per stream for subscription plays and 0.17 cents for ad-supported plays. Low inflation meant the rates increased only once over the next five years. A new slate of rates for 2021 to 2025 brought the rates to 0.24 cents for subscription plays and 0.21 cents for ad-supported plays in 2021. The cost-of-living adjustments for 2022 took the rates to 0.28 cents and 0.22, respectively.
This story is part of Billboard‘s The Year in Touring package — read more stories about the top acts, tours and venues of 2022 here.
At some point during Daddy Yankee’s ongoing La Ultima Vuelta tour, which kicked off this summer, publicist Mayna Nevarez looked around and took stock of what was happening around her.
“I was with him at sold out arenas in Seattle, Denver, Sacramento and, I swear, it brought tears to my eyes,” says Nevarez, who owns Nevarez PR in Miami and has been Yankee’s publicist for over 15 years. “For so long it was cities like Miami, Los Angeles, New York — big Latin hubs — and we forget that the United States is so much more than that.”
Daddy Yankee is no stranger to big tours; in 2007, for example, he played 17 U.S. shows, and in 2019, he played a fabled 12 sold-out dates at Puerto Rico’s Coliseo de Puerto Rico. But La Ultima Vuelta (The Last Tour) has been his biggest trek by far, selling over 1.1 million tickets for a $125.3 million in gross ticket sales during the tracking period, from Nov. 1, 2021-Oct. 31, 2022, landing him at No. 13 on Billboard’s Top Tours tally.
Yankee’s numbers point to Latin music’s potential for big touring success beyond Bad Bunny and beyond the cities that were long considered Latino strongholds. In 2022, Latin artists of all sizes and genres filled arenas, theaters and festivals, underscoring the huge potential and growing presence of Latin music across the country.
The fray, of course, is led by Bad Bunny, who tops this year’s Top Tours chart with a $373.5 million gross across 65 shows in arenas and stadiums with a combined attendance of nearly 2 million. Bunny’s World’s Hottest Tour broke venue revenue records in 12 of the 15 U.S. markets that it played, including Yankee Stadium, Chicago and Washington, D.C. The North American leg of tour averaged $11.1 million per show — the biggest per-show average gross by any artist in any genre in Boxscore history (dating back to the late 1980s).
At this moment in time at least, Bad Bunny is “a unicorn,” says Henry Cardenas, de CEO of CMN, which promoted Bunny’s U.S. tour in partnership with Live Nation. “No one does what he does.” But at a touring level, “What Bad Bunny really did is take Latin music to industry execs who aren’t Latin, and make them realize there was a viable market,” says Nelson Albareda, founder and CEO of marketing and promotion company Loud and Live.
Loud and Live, which is owned by Albareda, is a prime example of Latin’s growth in touring. The entertainment, marketing and promotion company was launched four years ago and in 2019, pre-pandemic, produced around 50 shows. This year, it came in at No. 14 on the Top Promoters chart, with $96.5 million in gross ticket sales for 386 shows.
“Overall, touring is definitely stronger, and shows are doing better, including in emerging markets like Seattle, Salt Lake City,” says Albareda. “Secondary markets are here to stay and it’s not just the A acts. It’s not a fluke. I think you’ll see the Kansas City, Minneapolis, Nashville, Raleigh, Salt Lakes also do well. The Latino population is now much greater and definitely they’re in every city.”
This allows for vertical growth that may not be always visible on the touring charts. Loud and Live’s roster, for example, includes touring stalwarts like Ricardo Arjona, who ends the year at No. 63 on the Top Tours list ($31.5 million gross on 32 shows), but it also includes rising star Camilo, who just fell short of the Top 100, grossing $11.4 million and selling 149,000 tickets in 28 shows.
Tours by smaller acts, says Jorge Juarez, co-founder of management and promotion company Westwood Entertainment, can still yield impressive margins. Rising Mexican rapper Santa Fe Klan, for example, played 23 markets on his first U.S. tour, selling some 7,000 tickets per market at an average $100 ticket price, per Juarez. And regional Mexican acts have seen a surge in ticket sales as well.
“There’s been a general tendency of growth here for the last two years. Certainly, a lot of factors post-pandemic that gave a surge, but we were already on a trend of growth,” says Hans Schafer, senior vp of Latin touring for Live Nation. “It was inevitable that we would reach this point one way or the other […] The sort of evolution that we’re seeing in different genres within Latin is all adding to that. More music, more new artists. Better production at all levels. Connectivity with multigenerational fans.”
On top of that, the growth of the U.S. Latino population and its middle class cannot be discounted as a factor in the overall growth of touring and consumption. According to Nielsen’s “The Evolving Hispanic Consumer” study from 2021, in the next 40 years Latinos will contribute more growth than any other U.S. population segment, contributing 53% of population growth in the next five years and 58% of the growth to 2060. In terms of buying power, from 2010 to 2019, Hispanic buying power increased by 69%, outpacing non Hispanics (41%).
According to a Pew Research Center Statistical Portrait of Hispanics published in July 2022, Latino demographics have grown “in just about every corner of the nation. While California, Texas and Florida hold about half of the U.S. Latino population, the fastest growth rates are in states like North Dakota (up 148% between 2010 and 2020) and South Dakota (up 75% over the same period).”
The growth has profound impact at many levels. In the last decade, for example, Latinos became the largest racial or ethnic group in California for the first time, a fact that explains why cities like Sacramento and San José are now major touring destinations for Latin artists of all stripes.
The direct result of a Latin population with acquisition power can be seen at the new SoFi Stadium, which opened in 2020 in the midst of the pandemic and hosted its first full stadium shows with Los Bukis, the romantic Mexican group that had its heyday in the 1990s, on Aug. 27 and 28, 2021. The stadium also hosted two nights of Bad Bunny this last September.
“The way we position ourselves is, we’re in Los Angeles, we’re in Inglewood, we’re 50% Latino,” says Adolfo Romero vp of programming for SoFi Stadium, Hollywood Park and YouTube Theater, which has held sold out shows by the likes of Rosalía and Mexican rockers Caifanes this year. “We looked at many different artists [for SoFi opening night] and when we saw this opportunity with Los Bukis, we were very aggressive. I think it kind of opened the eyes to the industry to see that Latin acts could do stadiums. That led us to do two nights of Grupo Firme in 2022, and now we have two nights of Bad Bunny.”
Romero says that when he booked Los Bukis for what would be their first-ever U.S. stadiums, the prospect of selling over 70,000 tickets for a Mexican nostalgia act didn’t make him loose sleep. “I come from [major league] soccer. If we can sell 70,000 plus for soccer here, what’s the difference?” he says. “It’s the same demographic. We have disposable income. A lot of our community was working in the service industry. Now, many of their kids are college grads.”