State Champ Radio Business
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The European Union slapped Meta with a record $1.3 billion privacy fine Monday and ordered it to stop transferring users personal information across the Atlantic by October, the latest salvo in a decadelong case sparked by U.S. cybersnooping fears.
The penalty of 1.2 billion euros is the biggest since the EU’s strict data privacy regime took effect five years ago, surpassing Amazon’s 746 million euro fine in 2021 for data protection violations.
Meta, which had previously warned that services for its users in Europe could be cut off, vowed to appeal and ask courts to immediately put the decision on hold.
The company said “there is no immediate disruption to Facebook in Europe.” The decision applies to user data like names, email and IP addresses, messages, viewing history, geolocation data and other information that Meta — and other tech giants like Google — use for targeted online ads.
“This decision is flawed, unjustified and sets a dangerous precedent for the countless other companies transferring data between the EU and U.S.,” Nick Clegg, Meta’s president of global affairs, and chief legal officer Jennifer Newstead said in a statement.
It’s yet another twist in a legal battle that began in 2013 when Austrian lawyer and privacy activist Max Schrems filed a complaint about Facebook’s handling of his data following former National Security Agency contractor Edward Snowden’s revelations of electronic surveillance by U.S. security agencies. That included the disclosure that Facebook gave the agencies access to the personal data of Europeans.
The saga has highlighted the clash between Washington and Brussels over the differences between Europe’s strict view on data privacy and the comparatively lax regime in the U.S., which lacks a federal privacy law. The EU has been a global leader in reining in the power of Big Tech with a series of regulations forcing them police their platforms more strictly and protect users’ personal information.
An agreement covering EU-U.S. data transfers known as the Privacy Shield was struck down in 2020 by the EU’s top court, which said it didn’t do enough to protect residents from the U.S. government’s electronic prying. Monday’s decision confirmed that another tool to govern data transfers — stock legal contracts — was also invalid.
Brussels and Washington signed a deal last year on a reworked Privacy Shield that Meta could use, but the pact is awaiting a decision from European officials on whether it adequately protects data privacy.
EU institutions have been reviewing the agreement, and the bloc’s lawmakers this month called for improvements, saying the safeguards aren’t strong enough.
The Ireland’s Data Protection Commission handed down the fine as Meta’s lead privacy regulator in the 27-nation bloc because the Silicon Valley tech giant’s European headquarters is based in Dublin.
The Irish watchdog said it gave Meta five months to stop sending European user data to the U.S. and six months to bring its data operations into compliance “by ceasing the unlawful processing, including storage, in the U.S.” of European users’ personal data transferred in violation of the bloc’s privacy rules.
If the new transatlantic privacy agreement takes effect before these deadlines, “our services can continue as they do today without any disruption or impact on users,” Meta said.
Schrems predicted that Meta has “no real chance” of getting the decision materially overturned. And a new privacy pact might not mean the end of Meta’s troubles, because there’s a good chance it could be tossed out by the EU’s top court, he said.
“Meta plans to rely on the new deal for transfers going forward, but this is likely not a permanent fix,” Schrems said in a statement. “Unless U.S. surveillance laws gets fixed, Meta will likely have to keep EU data in the EU.”
Meta warned in its latest earnings report that without a legal basis for data transfers, it will be forced to stop offering its products and services in Europe, “which would materially and adversely affect our business, financial condition, and results of operations.”
The social media company might have to carry out a costly and complex revamp of its operations if it’s forced to stop shipping user data across the Atlantic. Meta has a fleet of 21 data centers, according to its website, but 17 of them are in the United States. Three others are in the European nations of Denmark, Ireland and Sweden. Another is in Singapore.
Other social media giants are facing pressure over their data practices. TikTok has tried to soothe Western fears about the Chinese-owned short video sharing app’s potential cybersecurity risks with a $1.5 billion project to store U.S. user data on Oracle servers.
It was a good week for music stocks overall and an even better week for concert promoters, who made the biggest gains on the Billboard Global Music Index ahead of the blockbuster summer touring season.
The index rose 4.4% to 1,256.06 this week, with 15 of the 21 stocks ending in positive territory. It was led by concert promoter Madison Square Garden Entertainment’s (MSGE) 19.4% gain amidst multiple news items that influenced the share price. On Wednesday (May 17), Guggenheim initiated coverage of MSGE with a buy rating, while a report claimed that MSG Entertainment may sell the theater at Madison Square Garden for about $1 billion. On Thursday, the company released first-quarter results that showed a 4% increase in revenue to $201 million, though the company’s executives did not comment on the report during Thursday’s earnings call.
Shares of German promoter CTS Eventim also made big gains, rising 9.2% to 64.30 euros ($68.61). On Thursday, the company’s first-quarter earnings showed a 163% revenue jump to 366.2 million euros ($396 million) — beating pre-pandemic levels from the first quarter of 2019 by 29.5%. Year-to-date, CTS Eventim has sold 18 million tickets online, a 58% increase from the prior-year period. Meanwhile, Live Nation, the world’s largest concert promoter, improved 8.4% to $84.73 and is now up 21.5% year to date. Sphere Entertainment Co., which spun off MSG Entertainment in April, improved 6.1% to $23.61.
The S&P 500 improved 1.6% to 4,191.98 and the Nasdaq composite rose 3% to 12,657.90. The U.K.’s FTSE 100 index was unchanged at 7,756.87, while South Korea’s KOSPI composite index rose 2.5% to 2,537.79.
K-pop companies continued their hot streak this week. Two companies not in the Billboard Global Music Index, JYP Entertainment and YG Entertainment, gained 22.7% and 17.8%, respectively. Year-to-date, shares of JYP Entertainment, home to Stray Kids and Twice, have gained 70.6%. Shares of YG Entertainment, whose roster includes recent Coachella headliner Blackpink, are up 109.8% in 2023. Shares of HYBE dropped slightly by 0.4% but have gained 62% year to date. Likewise, shares of SM Entertainment gained only 1.1% this week but have grown 40% this year.
A couple of years after the COVID-19 pandemic took radio listeners out of their vehicles and a recession caused an advertising slowdown, the radio industry is experiencing another decline. That has complicated the financial position of Audacy, the second-largest radio company in the United States and a major player in the podcast market.
Warning lights appeared again last week when the company revealed in its May 10th 10-Q filing that “current macroeconomic conditions” such as rising inflation and interest rates and lower advertising revenue “have created, and may continue to create, significant uncertainty in operations.” Those factors “have had, and are expected to continue to have, a material adverse effect” on Audacy’s forecasted revenue, which is “unlikely to be sufficient” to maintain compliance of the financial debt covenants its lenders impose to ensure it can make its interest payments. As a result, Audacy explained, the company could default on its debt — which could then cause that debt to become immediately payable.
On Tuesday (May 16), a week after the March 10 filing, the New York Stock Exchange (NYSE) decided to halt trading of Audacy’s shares in order to delist the company. It was an expected move. Audacy, which changed its name from Entercom in March 2021, last traded at $0.09 per share — down nearly 63% year-to-date — before trading on the NYSE was halted. The NYSE, which has rules to maintain minimum share prices, issued a warning to Audacy on July 31 because its average closing price over a consecutive-day trading period was below $1. Audacy last closed above $1 per share on July 5, 2022 — meaning it remained below $1 for 218 consecutive trading days.
Investors have lost some faith in radio companies’ stocks as advertising growth weakened in 2022. Year-to-date, shares of iHeartMedia, the nation’s largest radio company, have fallen 55.3%. Likewise, shares of Cumulus Media, the third-largest radio company, are down 47.5%. Market conditions appear to be improving, however. iHeartMedia expects its adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) to improve throughout 2023, CEO Bob Pittman said during the company’s May 2 earnings call. “And if this advertising market recovery trend continues in 2024,” Pittman added, “we expect to resume our growth trajectory that was interrupted by this period of advertising softness.”
The advertising market is part of Audacy’s problem, but it’s not the entire problem, according to Craig Huber, media analyst at Huber Research Partners. “The number one issue is too much debt in a secular declining industry,” says Huber. Audacy acquired most of its $1.9 billion of long-term debt from its 2017 merger with CBS Radio. That deal increased Audacy’s revenue more than four-fold, from $367 million in 2016 to $1.7 billion in 2018, but also increased its debt from $468 million at the end of 2016 to $1.86 billion at the end of 2017.
The debt has been a drag on Audacy’s cash flow. In 2022, Audacy’s net interest expense was $107.5 million — about 8.6% of the company’s annual revenue of $1.25 billion. After paying interest to service its debt, Audacy’s free cash flow in 2022 was -$31.8 million. “They haven’t done enough to take out costs” to achieve positive free cash flow, says Huber, and revenue hasn’t met the company’s own expectations.
When the merger with CBS Radio was announced in 2017, the combined companies had adjusted EBITDA of $500 million, including “expected transaction synergies,” according to the press release. In 2022, adjusted EBITDA was just $138 million. Even though Audacy was in compliance with its debt covenants on March 31, the company has expressed concern about its ability “to continue as a going concern” over the next 12 months.
Audacy operates in a difficult business that’s losing listening time as people change their listening habits and migrate to streaming platforms. Although Audacy, like iHeartMedia and Cumulus, has invested in digital platforms — it acquired podcasting companies Pineapple Street and Cadence13 in 2019 and was the No. 8 podcasting network in Q3 and Q4, according to Edison Research — revenue fell about 14% between 2018, the first full year after the CBS Radio merger, and 2022.
With no way around the soft advertising market, Audacy has started cutting costs and selling non-core assets. The company expects its costs will decline 4%, or $35 million, in the last three quarters of 2023, chairman/president/CEO David Field said during the May 10 earnings call. He also said the company raised $17 million in the first quarter from sales of broadcast towers and expects to close on the sale of two stations for $15.5 million in the second or third quarter.
As for Audacy’s stock, trading volume will decrease now that it’s been delisted. Since it started selling only over the counter (through a broker-deal, not on an exchange), the share price has fallen: On Wednesday, Audacy shares declined nearly 24% to $0.04, and they ended the week at $0.06.
The company will now take steps to get back to the NYSE. “While we are disappointed by the NYSE’s decision, we are hopeful we will find our way back to the exchange later this year as we execute our action plans which include a reverse stock split to satisfy NYSE rules, the continued execution of our liability management plans and working with our financial advisors to refinance our debt,” Field said in a May 16 press release. Shareholders will vote on the reverse stock split at the annual meeting on May 24. By working with the factors it can control, Audacy can soften the impact of the broader market conditions it cannot control.
Federal prosecutors want a judge to sentence Fetty Wap to as much as nine years in prison after the rapper pleaded guilty last year to drug charges, citing lyrics they say “glamorize the drug trade” and arguing that the court needs to “send a message” to kids.
The filing came just a day after lawyers for “Trap Queen” star (real name Willie Junior Maxwell II) asked for just five years, arguing that he only turned to crime to support family members as his touring income dried up during the COVID-19 pandemic.
In their own brief on Thursday, prosecutors told a darker story: Of a successful musician who had already earned millions but chose to “supplement his income” by selling “drugs he knew would ruin lives.” In a particularly notable move, they pointed to Fetty’s music itself, arguing he had used his “fame, sizeable platform and influence to glamorize the drug trade.”
“Before his arrest, the defendant became famous singing about his experience cooking crack cocaine, selling drugs and making substantial money from those illegal endeavors,” prosecutors wrote, also citing a recent song that they says contains coded references to drugs. “Even after his arrest and while awaiting trial in this very serious federal drug case, the defendant continued to glamorize the drug trade.”
The use of rap lyrics in criminal cases is a controversial tactic. Critics say references to drugs and violence are stock elements of hip hop and should not be treated literally — and that by doing so, prosecutors infringe on free speech and sway courts with unfair evidence. Lawmakers in California recently enacted a law that sharply restricts the practice, and a similar bill has been proposed to do so in federal cases.
But in Thursday’s filing, prosecutors repeatedly referenced Fetty Waps works. Pointing to “Trap Queen” – a song that reached No. 2 on the Hot 100 – they claimed the rapper had “admitted” to a probation officer that it was an “ode to a former girlfriend who assisted him a cocaine base distribution operation.” They also cited the music video for that song, claiming Fetty had “enlisted young children who stood behind him while he idealized selling drugs.”
Now, with the rapper facing a prison sentence for selling drugs, prosecutors said the judge has a “responsibility to send a clear, unambiguous deterrent message” to fans of his music.
“Young people who admire the defendant and are considering selling drugs need to be sent a message that selling drugs is not a glamorous lifestyle and, if they participate in that trade, they will receive lengthy prison sentences,” prosecutors wrote. “That message is even more important in this case, as the defendant has promoted and profited from his drug dealing through his fame and music.”
Fetty Wap was arrested in October 2021 at Rolling Loud New York, after prosecutors unveiled an indictment against him and five others. Prosecutors claimed group had shipped more than 100 kilograms of the drugs from California and distributed them on Long Island, contributing to “the addiction and overdose epidemic we have seen time and time again tear people’s lives apart.”
In August, Fetty admitted to participating in the scheme, pleading guilty to a single charge of conspiring to distribute at least 500 grams of cocaine. He faces sentencing next week by U.S. District Judge Joanna Seybert.
The sentence requested by prosecutors on Thursday — between 87 and 108 months – is the same as what’s suggested by federal sentencing guidelines. But it came just a day after attorneys for Fetty Wap said he should face only five years, the minimum sentence allowed under the law.
In that filing, his lawyers said the rapper “realizes the terrible mistake he made” and is “truly sorry for the loss and hurt he has caused.” They argued he only turned to crime amid the pandemic, as his touring income dried up: “Desperate to keep up with his financial obligations, Mr. Maxwell became involved in the instant offense for a few months in the spring of 2020.”
In their own filing on Thursday, prosecutors said Fetty was perhaps not quite as reformed as his attorneys had claimed. They cited an incident last summer in which the rapper’s bail was revoked for pointing a gun and threatening to kill someone on a FaceTime call in which he called someone a “rat.”
“The defendant’s conduct while on bail is also extremely troubling,” the prosecutors wrote. “While none of us is clairvoyant, the defendant’s possession of a firearm and threatening conduct while on bail is a concerning predictor of future behavior.”
An attorney for Fetty Wap did not return a request for comment. A spokesman for the U.S. Attorney’s Office declined to comment.
One of Madonna’s biggest hits, her 1990 Billboard Hot 100 No. 1 dance anthem “Vogue,” had surprisingly humble beginnings. “The whole thing was done on a shoestring budget,” Shep Pettibone, the track’s co-writer and producer, told Billboard in 2015. Allotted just $5,000 by Warner Bros. (now Warner) Records to create what was initially slated as […]
A transatlantic legal battle between Jimi Hendrix’s estate and his former bandmates is going to be fought primarily in London for now, after a U.S. federal judge ruled that she would defer to the British courts.
The two dueling camps — Hendrix’s estate and Sony Music on one side and the estates of bassist Noel Redding and drummer Mitch Mitchell on the other — have each filed their own lawsuit on opposite sides of the Atlantic over control of the rights to music created by the trio’s Jimi Hendrix Experience.
After a year of jockeying over which case should take precedence, a Manhattan federal judge ruled Tuesday that it should be Redding and Mitchell’s UK lawsuit. She pointed out that the English litigation had kicked off nearly a month earlier than the American case, and that a British appeals court had already ruled that their case could move forward.
“The litigation centers on estate matters in England, general release documents located in England, and copyright and intellectual property rights under English law,” Judge Ronnie Abrams wrote. “It can thus hardly be said that the courts of England are not an adequate forum.”
Hendrix teamed up with Redding and Mitchell in 1966 to form the Experience, and the trio went on to release a number of now-iconic songs before Hendrix’s death, including “All Along The Watchtower,” which spent nine weeks on the Billboard Hot 100 in 1968 and peaked at No. 20.
The current fight kicked off in 2021, when Redding and Mitchell’s heirs sent a letter in the UK claiming they own a stake in Hendrix’s music and arguing that they’re owed millions in royalties. The Hendrix estate and Sony responded a month later by filing their own lawsuit in New York federal court, arguing that Redding and Mitchell signed away their rights shortly after the legendary rocker died in 1970, in exchange for “significant monetary consideration.”
But for over a year, the two sides have been duking it out over which case should proceed first. The Hendrix estate and Sony say the contractual releases, which will play a central role in the case, were all signed in New York as part of probate proceedings in that state. But Redding and Mitchell’s heirs have claimed the estate is merely trying to “circumvent” English courts to win a friendly judge in America.
“Plaintiffs are merely trying to win the race to the courthouse because they apparently believe this court will be more sympathetic to their claim than the English court before which it is now pending,” the Redding and Mitchell heirs wrote last year. “Such blatant forum shopping is not entitled to any deference.”
Last month, a London appeals court ruled that the U.K. case could proceed, regardless of what happened in New York. That ruling said that the New York releases might indeed end up being the “central aspect in the dispute,” but that the British case also dealt with broader issues of English law.
And on Tuesday, Judge Abrams cited that April ruling as a key factor in why she had decided that the New York case could wait until the British case was resolved.
“The London High Court’s lengthy decision finding jurisdiction over the English action underscores the appropriateness of that forum, and the merits of that action are now being actively litigated in English courts,” the judge wrote. “This action is hereby stayed pending the resolution of defendants’ action in England.”
Neither side’s attorneys immediately returned requests for comment.
Read the entire ruling here:
Five TikTok content creators have filed a lawsuit seeking to overturn Montana’s first-in-the-nation ban on the video sharing app, arguing the law is an unconstitutional violation of free speech rights.
The Montana residents also argued in the complaint, filed in federal court late Wednesday without public notice, that the state doesn’t have any authority over matters of national security. Republican Gov. Greg Gianforte signed the bill into law Wednesday and said it would protect Montana residents’ private data and personal information from being harvested by the Chinese government.
The ban is scheduled to take effect on Jan. 1, 2024.
“The law takes the broadest possible approach to its objectives, restricting and banning the protected speech of all TikTok users in Montana to prevent the speculative and unsubstantiated possibility that the Chinese government might direct TikTok Inc., or its parent, to spy on some Montana users,” the complaint states.
“We expected a legal challenge and are fully prepared to defend the law,” said Emily Flower, spokeswoman for the Montana Department of Justice.
TikTok has argued the law infringes on people’s First Amendment rights.
However, spokesperson Brooke Oberwetter declined to comment on the lawsuit Thursday. She also declined to say whether the company helped coordinate the complaint.
The plaintiffs are Montana residents who use the video-sharing app for things like promoting a business, connecting with military veterans, sharing outdoor adventures or expressing their sense of humor. Two of them have more than 200,000 followers.
One content creator, Carly Ann Goddard, shares videos about living on a ranch, parenting, recipes and home decor. Her account has 97,000 followers and has allowed her to roughly triple her family’s household income, the complaint states. TikTok creators can make money in several ways, including by being paid to advertise products to their followers.
The lawsuit — filed just hours after Gianforte signed the measure into law — states the ban would “immediately and permanently deprive Plaintiffs of their ability to express themselves and communicate with others.”
“Montana can no more ban its residents from viewing or posting to TikTok than it could ban the Wall Street Journal because of who owns it or the ideas it publishes,” the plaintiffs’ attorneys wrote.
The case could serve as a testing ground for the TikTok-free America many national lawmakers have envisioned. Cybersecurity experts say it could be difficult to enforce.
Some lawmakers, the FBI and officials at other agencies are concerned the video-sharing app, owned by ByteDance, could be used to allow the Chinese government to access information on U.S. citizens or push pro-Beijing misinformation that could influence the public. TikTok says none of this has ever happened.
A former executive at ByteDance alleges the tech giant has served as a “propaganda tool” for the Chinese government, a claim ByteDance says is baseless.
China passed laws in 2014 and 2017 that compel companies to cooperate with the country’s government for state intelligence work. TikTok says it has never been asked to hand over its data and it wouldn’t do so if asked.
“TikTok is spying on Americans. Period,” Montana Attorney General Austin Knudsen told a legislative committee in March. “TikTok is a tool of the Chinese Communist Party. It is owned by a Chinese company, and under China law, if you are based in China, you will cooperate with the Chinese Communist Party. Period.”
More than half the U.S. states, including Montana, and the federal government have banned TikTok from government-owned devices.
Montana’s law would prohibit downloads of TikTok in the state and would fine any “entity” — an app store or TikTok — $10,000 per day for each time someone “is offered the ability” to access the social media platform or download the app. The penalties would not apply to users.
Opponents say Montana residents could easily circumvent the ban by using a virtual private network, a service that shields internet users by encrypting their data traffic, preventing others from observing their web browsing. Montana state officials say geofencing technology is used with online sports gambling apps, which are deactivated in states where online gambling is illegal.
The idea of a TikTok ban has been around since 2020, when then-President Donald Trump attempted to bar the company from operating in the U.S. through an executive order that was halted in federal courts. President Joe Biden’s administration initially shelved those plans, but more recently threatened to ban the app if the company’s Chinese owners don’t sell their stakes.
Montana’s law would be nullified if the federal government placed a ban on TikTok or if it was sold to a company not based in a country that is federally designated as a foreign adversary, which currently includes China, Russia, North Korea, Iran and Cuba.
Better Noise Music has announced several new leadership changes. Founder Allen Kovac (New York) is now chairman of the label, Dan Waite (London) has been named CEO and Steve Kline (New York) has added the title of president to his existing COO title. Better Noise’s roster includes mainstream rock acts such as Five Finger Death Punch, Dirty Heads, The Hu and Asking Alexandria.
In a statement, Kovac, who was included on Billboard‘s 2022 Indie Power Players list, said the label “is continuing to grow our international cumulative sales through our global offices.” Billboard named Better Noise the No. 1 mainstream rock airplay label and No. 1 mainstream rock airplay imprint of 2022.
“In this new role,” said Waite, “I’ll aim to maximize the careers and album consumption of our signed acts on our label as we grow the label, expanding through new signings, opening up new markets and working closely with the amazing specialists that we have in each department at BNM which has kept us #1 Rock Label for the last five years.”
Kline, who has been Better Noise’s COO since 2016, has worked for 18 years under the Kovac Media umbrella, first at artist management firm 10th Street Entertainment. “I want to thank Allen for putting his faith in me, as he has over the past 19 years, in this enhanced role at Better Noise,” said Kline. “I am incredibly excited to work with Allen and Dan in leading our amazing global team to future success.”
Nicole Kim was named vp of A&R at Columbia Records. Kim arrives at the label from Big Hit Music/HYBE, where she served as head of A&R and head of creative for BTS. During her more than five-year tenure at the Korean company, she worked on BTS’ collaborations with Coldplay, Halsey, Nicki Minaj, Megan Thee Stallion and more. Prior to Big Hit/HYBE, she held creative roles at Starship Entertainment and Sony Music Publishing Korea. Kim will be based out of Columbia’s Los Angeles office and can be reached at nicole.kim@sonymusic.com.
Shahendra Ohneswere was named to the newly-created role of head of creative strategy at Island Records, where he will lead overall creative strategy and digital marketing initiatives for the label. He is based in New York and will report to co-CEOs Imran Majid and Justin Eshak. Ohneswere joins Island from Columbia, where he has served as senior vp of content development/co-head of digital marketing since 2018. He was named to Billboard‘s R&B/Hip-Hop Power Players lists in 2021 and 2022.
Jennifer Cabalquinto was named CFO at EMPIRE, where she will oversee all day-to-day and long-term financial planning and accounting operations while strategizing the company’s expansion into sports, video games, TV/film and live entertainment. She has held CFO positions at 2K Games, Universal Studios Hollywood, Telemundo and the Golden State Warriors.
Garrett Levin is stepping down from his role as president/CEO of The Digital Media Association (DiMA) as he plots a move to Geneva, Switzerland, where he will relocate this summer due to his wife’s job. Levin will continue leading the organization through his departure as the DiMA board searches for a successor. “I have been honored to lead this organization over the past four-plus years and am deeply proud of our many successes during that time,” said Levin on LinkedIn. “We reached a landmark settlement with music publishers and songwriters, continued the important work of turning the Music Modernization Act into operational reality, forged stronger relationships between streaming services and other music stakeholders, and continuously told the story of the vital role that streaming plays in today’s music industry.”
Virgin Music Group announced the promotion of three executives: Leslie Cooper to senior vp of artist development and special projects, Marisa Di Frisco to vp of national promotion and Lauren Holman to vp of streaming marketing. In her new role, the Los Angeles-based Cooper will oversee K-pop releases while also identifying new artist development opportunities within the company and leading collaborative efforts in that area. The New York-based Di Frisco will continue overseeing promotion campaigns at Alternative, Rock, AAA and Non-commercial/College radio. The Los Angeles-based Holman, finally, will lead the streaming and playlisting strategy team. Cooper can be reached at Leslie.Cooper@virginmusic.com, Di Frisco can be reached at marisa.difrisco@virginmusic.com and Holman can be reached at lauren.holman@virginmusic.com.
Warner Chappell Production Music (WCPM) launched SCOREMONGERS, a new music resource that includes a premium underscore label and custom music-to-picture services. Led by WCPM head of production Pat Weaver, the SCOREMONGERS team includes WCPM producers and composers such as newcomer Sean Gould and existing WCPM staffer Scott Reinwand, who assists in overseeing all SCOREMONGERS music services, including custom music-to-picture, music customization and music editing to picture. The company launches with more than 60 albums and over 10 genres inspired by trending films and TV series, including “companion albums with wide tonal range, complimentary palettes, transitions, and recurring themes, along with extensive stem and submix options,” according to a press release. The music was created by film and TV composers including Michael Brook, Lisbeth Scott, Greg Tripi, Tony Morales and John Kaefer. Weaver can be reached at pat@scoremongers.io, Gould can be reached at sean@scoremongers.io and Reinwand can be reached at scott@scoremongers.io.
Elizabeth “Beth” Heidt was promoted to chief marketing officer at Gibson Brands, where she will join the leadership team; she was previously vp of cultural influence. In her new role, Heidt will oversee Gibson Brands’ global brand and marketing teams, entertainment and artist relations, social media, partnerships, public relations, multi-media divisions and the Gibson Gives Foundation.
Rostrum Records founder/CEO Benjy Grinberg launched Rostrum Pacific, a parent company that will incorporate an expanding portfolio of entertainment properties, including a soon-to-be-announced catalog marketing agency. Longtime Rostrum Records GM Jonathan Partch will lead Rostrum Pacific as COO; he can be reached at jonathan@rostrum.com.
ONErpm launched a digital strategy department and tapped longtime staffer Casey Childers to lead it. The Nashville-based Childers was most recently senior project manager at the company. “Our goal is to be able to provide the help artists need to grow their social footprint in a way that is true and organic to them,” said ONErpm head of U.S. marketing Jenna LoMonaco in a statement. “With Casey and the Digital Strategy team’s work, we can now provide hands-on help with social growth, engagement, and new forms of revenue.” Childers can be reached at casey@onerpm.com.
Donald Robins was named director of promotion at Warner Music Canada, where he will lead the company’s promotion team. Robins has worked in radio promotion his entire career; he joined Warner Music Canada in 2006 as a promotion representative for Quebec.
Electronic dance music festival Tomorrowland launched CORE Records, a boutique record label that will focus on “crossing and fusing genres, cultures and boundaries,” according to a press release. CORE, which will work closely with partners Virgin Music/Universal Music Group, will be led by Michel Van Buyten, who oversees Tomorrowland’s music division, including the Tomorrowland Music label. He will be joined by the newly-appointed Pieter-Jan Nuytten, who will serve as CORE’s dedicated A&R manager; Nuytten arrives at the label from PIAS/Strictly Confidential Music Publishing. The label’s first signings including Berlin-based solo dandy producer Afriqua and Belgian electronic duo Mosley Jr; both will perform at CORE Festival in Brussels on May 28. Van Buyten can be reached at michel.vanbuyten@tomorrowland.com and Nuytten can be reached at jan.nuytten@tomorrowland.com.
Steve Tadlock was named senior vp of venue relations at LiveCo, where he will manage facility relationships, content-backed booking deals and continue driving the company’s growth. Mark Dinerstein was also promoted from executive vp to president of LiveCo’s newly-formed corporate development group, where he will oversee the development and execution of company-wide initiatives and new acquisitions, venue deals, strategic partnerships and more. Tadlock joins LiveCo from ASM Global, where he most recently served as GM of Pechanga Arena in San Diego.
Amber Davis was promoted to senior vp at Warner Chappell Music UK, where she will take on a broader role in shaping the publisher’s overall U.K. strategy while continuing to oversee the A&R department as head of A&R. David will report to Warner Chappell Music UK managing director Shani Gonzales.
Donna Vergies was appointed vp of international marketing at Chrysalis Records/Blue Raincoat Music, where she joins the staff full-time following her previous position as a freelance international consultant for the company. Based in London, Vergies will work with artists on the Chrysalis/Blue Raincot roster, overseeing international campaigns and managing relationships with the company’s global partners and distributors. She can be reached at Donna@blueraincoatmusic.com.
Shannan Hatch was promoted from vp of creative serivces to senior vp/head of Nashville creative at SESAC, where she has worked for more than 20 years. In the role, Hatch will continue leading the Nashville-based creative services team while working closely with SESAC senior management to support creator-focused initiatives. She can be reached at shatch@sesac.com.
Rodrigo Dominguez was promoted to managing director of peermusic Spain and Portugal; he previously served as managing director of Portugal alone. He continues to hold the title of Latin American creative coordinator, managing activities for peermusic’s network of operations in those territories. Dominguez is based in Lisbon and Madrid and can be reached at rfernandes@peermusic.com.
Danny Berkeley-Scott was named vp at music management company Hallwood Media, where he will look to grow the firm with signings and in-house brand partnerships. In addition to launching Hallwood’s engineer management division, Berkeley-Scott oversees partnerships with Headspace, Bandlab and Soundwide.
FaZe Clan head of communications Chelsey Northern departed the youth gaming and lifestyle company to lead her recently-established public relations company The Untold, which will represent FaZe Clan along with clients including Deadfellaz, Proof Holding, Futureverse and the innovation teams at Warner Music Group and Atlantic Records.
Hillary Smoot joined the Schneider Rondan Organization as Las Vegas director/senior account executive. She brings her clients from the entertainment and hospitality worlds, including Feld Entertainment. Smoot was most recently recruited to create Red Moon PR, overseeing public relations campaigns for Los Angeles’ Viper Room, El Dorado Cantina and Red Mercury Entertainment shows including Purple Reign and MJ Live.
Joe Davis joined entertainment, business and financial management firm KBFM to lead its newly-established in-house tax department. Davis will merge his CPA firm, BootstrapTax, with KBFM. He will support the firm’s clients with all tax matters while overseeing accounting and tax planning for several small businesses and entrepreneurs both within and outside the music industry. He can be reached at joe@kbfmgmt.com.
Tickets for Taylor Swift’s Eras Tour are being protected by some of the most advanced ticketing technology ever created, but it’s done little to stop some Swifties from falling victim to fraud.
With what’s likely to be the year’s most in-demand tour has come a wave of online scams that mix high-tech identity theft with low-tech social engineering to target frustrated fans unable to buy tickets during the initial sale in November. Now ticket prices are going for up to 10-times face value on secondary sites and many fans are desperately looking for more affordable options. That’s also leaving them vulnerable to too-good-to-be-true swindlers selling fake tickets. In many cases, the fans don’t even realize they were ripped off until they get to the show.
Nationwide, consumer fraud was up 30% in 2022 over 2021, according to the Federal Trade Commission, costing consumers $8.8 billion. Fake ticket scams fall under what the FTC labels as “imposter scams,” second in total cost only to investor scams according to the FTC, which notes that individuals aged 30-39 are the most likely to be defrauded in 2023 with social media sites listed as the most common place where fraud occurs. The targeting of Taylor Swift fans and offering cheap tickets the seller doesn’t have (and then disappearing on the buyer after they send over the money) is in part due to enormous publicity around the tour and the huge demand for tickets and low supply.
“Con artists will seize any opportunity to rip people off and as soon as the tours for Taylor Swift or artists Beyoncé or The Cure were even announced, scammers trying to figure out ways to capitalize on people’s desperation to get tickets,” says Teresa Murray, a consumer watchdog with the Denver-based Public Interest Research Group. Murray says her group saw an uptick in forged barcodes, fake websites and spoofs on legitimate sights like StubHub and Ticketmaster popping up hoping to profit off the frenzy around the Eras tour.
Fans who have fallen victim to Taylor Swift ticket fraud often say they are lured into the scam through a post on Facebook, listed on regional group pages from seemingly legitimate accounts offering to sell tickets for an upcoming Swift show below the current asking price on secondary ticket markets.
“When you have people who are desperate [to buy tickets] and vulnerable to fraud, they tend to suspend their common sense and make decisions they wouldn’t normally make,” says Murray, adding that this type of fraud is perpetrated by both “people living in their mom’s basement” and sophisticated criminal groups operating in an organized manner.
What victims do not realize is that instead of talking to person living in their city, they are often talking to a hacker who has recently taken over someone’s Facebook account to appear like a real person with ties in the community. After some back and forth, the scammer convinces the victim to send them money though a cash app like Venmo or Zelle in exchange for tickets that either never arrive or are obvious fakes.
This increase in fraud is happening against a backdrop of transformative technology at Ticketmaster, deployed at a large scale for the Eras tour with the potential to drastically reduce and even eliminate most instances of ticket fraud. Whereas it used to be fraudsters could buy a print-at-home ticket and then sell multiple copies of that, Ticketmaster is now employing its Safetix technology for Swift’s tour and others to issue digital tickets that live exclusively within the Ticketmaster app and are impossible to duplicate in this way. Safetix creates an entire digital ecosystem around the life of the ticket, from its original purchase, through resale and up until the ticket is redeemed on the night of the show. The scam Swift fans describe operates completely outside of that ecosystem, without any protections for consumers.
For scammers, demanding payment upfront is a low-tech way to defeat an otherwise sophisticated security system. The only way to curb this type of fraud, Murray says, is to educate fans on how digital tickets work. Much of Ticketmaster’s consumer education efforts have focused on Swift fans who successfully bought tickets and need to know how to load tickets into their accounts, transfer them to friends and redeem the tickets on show night. While this effort to educate fans is important, it does little to inform fans who were unable to buy during the public sale so that they are better equipped to avoid being sold fake tickets when they attempt to buy secondary tickets
Murray recommends only purchasing resale tickets from official sellers with a clearly visible fan guarantee listed on their site, to only use credit cards (not debit cards) and to match up the seats being sold with a seat map of the venue to verify the seats and rows actually exist.
“Often times the con artists don’t bother to check if the seating section, row and seat numbers they claim to hold tickets for actually exist on a seat map,” Murray says. “A little research on your own might help you determine if the tickets being offered actually exist.”
Lawyers for Fetty Wap are asking a judge to sentence him to five years – the minimum under the law – after he pleaded guilty last year to federal drug charges, arguing that the star rapper committed his crimes only to “financially support others” during the COVID-19 pandemic.
The “Trap Queen” star (real name Willie Junior Maxwell II) has admitted to participating in what prosecutors called “a multimillion-dollar bicoastal drug distribution organization,” pleading guilty in August to a single charge of conspiring to distribute at least 500 grams of cocaine.
Now, with sentencing set for next week, the rapper’s lawyers say he should receive the minimum possible sentence for that conviction, arguing that he “realizes the terrible mistake he made” and is “truly sorry for the loss and hurt he has caused.”
“What makes this case unusual is Mr. Maxwell’s motivation,” his lawyers wrote in a Wednesday (May 18) filing. “Personal gain was not his motivation. Rather, he was motivated by his commitment to financially support others. He now realizes that he does not have to carry the weight of the world on his shoulders.”
Sentencing guidelines call for a prison term ranging from seven and nine years, but in their filing, Fetty Wap’s lawyers say their client deserves less than that because he only turned to crime amid the pandemic, as his touring income dried up but “the bills kept coming in.”
“Suddenly it felt like life was going in reverse and he became ashamed when he began to struggle to keep up the lifestyle that he created for so many. His judgment became impaired,” the rapper’s lawyers wrote. “Desperate to keep up with his financial obligations, Mr. Maxwell became involved in the instant offense for a few months in the spring of 2020.”
Fetty Wap was arrested in October 2021 at Rolling Loud New York, after prosecutors unveiled an indictment against him and five others: Anthony Leonardi, Robert Leonardi, Brian Sullivan, Kavaughn Wiggins and Anthony Cyntje, a New Jersey corrections officer.
At the time, prosecutors said the group had shipped more than 100 kilograms of the drugs from California and distributed them on Long Island, contributing to “the addiction and overdose epidemic we have seen time and time again tear people’s lives apart.”
“The fact that we arrested a chart-topping rap artist and a corrections officer as part of the conspiracy illustrates just how vile the drug trade has become,” FBI assistant director-in-charge Michael J. Driscoll said at the time.
Federal prosecutors have not yet filed their own sentencing recommendations.
