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MSG Sphere, the long-awaited, globe-shaped venue under construction in Las Vegas, has been promised to revolutionize the concert-going experience. Before it even opens, however, MSG Sphere is transforming the corporate structure of its creator.
On Monday, MSG Entertainment announced new plans for an upcoming spin-off that will separate MSG Sphere, the next-generation music venue being built in Las Vegas, from the rest of its live music business.
The latest version of the proposed transaction results is a pure-play music company under the corporate name MSG Entertainment that includes venues such as Madison Madison Square Garden, Hulu Theater at Madison Square Garden, Radio City Music Hall, the Beacon Theatre and The Chicago Theatre. MSG Entertainment would also include the entertainment and sports booking business, the Radio City Rockettes and the Christmas Spectacular production, and long-term arena license agreements with New York Knicks and New York Rangers, which play their home games at Madison Square Garden.
The first iteration of the spin-off paired the live music business with MSG Networks, a regional sports network that carries live games of the Knicks, Rangers, New York Giants, New Jersey Devils, New York Islanders and Buffalo Sabres. That would have put the company’s two most mature divisions under one roof, separate from MSG Sphere and Tao Group Hospitality, the operator of restaurant and nightlife properties. MSG Entertainment would, however, combine the financially risky Sphere project with the more stable revenues of MSG Networks, which generated $608.2 million of revenue and $131 million of operating profit in the year ended June 30, 2022. The new plan “is optimal for maximizing shareholder value, while providing both companies with enhanced strategic and financial flexibility to drive long-term growth,” the company said in a statement.
The new spin-off plan puts MSG Networks with MSG Sphere and Tao Group Hospitality. The spin-off company will take the name MSG Sphere Corp and “would have enhanced flexibility to execute its business strategy and pursue global growth opportunities,” executive chairman and CEO James L. Dolan said in a statement.
The proposed transaction would be structured as a tax-free spin-off to all MSGE shareholders. Owners of MSGE Class A and Class B shares would receive a pro-rata distribution expected to amount to about a two-thirds economic interest in MSG Entertainment, the live entertainment company. The parent company, MSG Sphere, would retain approximately a one-third interest in MSG Entertainment.
The $1.8 billion MSG Sphere at The Venetian is slated to open in 2023 with a U2 residency. The spherical venue will provide a multi-sensory experience of audio and visuals for 20,000 standing spectators or 17,500 seated guests. It includes 160,000 square feet of video viewing space and an exterior exosphere with programmable LED technology.
Apple Music users will soon be able to sing along to their favorite hits right inside the app.
On Tuesday (Dec. 6), Apple announced the launch of a built-in karaoke function on the streaming service, which will be available to all Apple Music subscribers worldwide later this month. Dubbed Apple Music Sing, the feature will be accessible on iPhone, iPad and the newest model of the Apple TV 4K, with tens of millions of songs available at launch.
Apple Music Sing is similar to a typical karaoke player, highlighting the streamer’s onscreen lyrics beat by beat. Additional functionality includes the option to adjust a song’s vocal levels; the separation of background vocals from main vocals to make the lyrics easier to follow; and a “duet view” that places lyrics from multiple vocalists on opposite sides of the screen to make multi-singer tracks easier to navigate.
Along with the new feature, Apple Music will additionally be launching a suite of more than 50 thematic Apple Music Sing playlists grouping songs together by genre, decade and more.
“Apple Music’s lyrics experience is consistently one of the most popular features on our service,” said Oliver Schusser, vp of Apple Music and Beats, in a statement on the launch. “We already know our users all over the world love to follow along to their favorite songs, so we wanted to evolve this offering even further to enable even more engagement around music through singing. It’s really a lot of fun, our customers are going to love it.”
Ginseng Strip 2002,” a casually hedonistic track by the Swedish rapper Yung Lean, initially went viral on YouTube in 2013. Nearly a decade later, lightning struck again on a different platform when the single became wildly popular on TikTok. This song — a series of druggy snapshots narrated in an uninterested monotone — was used more than any other on the app in 2022, according to the year-end report TikTok shared Tuesday (Dec. 6).
While “Ginseng Strip 2002” was used in nearly 11 million videos, the Mexican singer Kim Loaiza enjoyed the most viewed artist account with 70.5 million followers. She was one of five Spanish-language acts among the top 10 most-viewed artists, including superstars like Bad Bunny (29.7 million followers) and Rosalia (27.5 million).
The growing commercial importance of sped-up and slowed-down remixes of singles was also reflected in TikTok’s year-end report. Sped-up hits included new versions of Michael Buble‘s “Sway” and Cat Burns‘ “Go;” an uptempo rework of Demi Lovato‘s “Cool for the Summer” helped the track crack the top five on the platform. It trailed only Nicky Youre and dazy‘s “Sunroof,” Willow’s “Wait a Minute,” WZ Beat’s “Beat Automotivo Tan Tan Tan Viral,” and of course, “Ginseng Strip 2002.”
“Ginseng Strip 2002” came together almost by accident, according to the track’s producer Yung Gud. “‘Ginseng Strip 2002’ was just a sound check — he was just checking to see if the microphone was working,” the producer told The New Yorker in 2014.
The track’s initial success on YouTube caused Yung Lean some anxiety. “I was kinda scared at one point that it was just gonna be a couple million views and some viral hit, and there wasn’t going to be anything else,” he told Beats 1 Radio in 2017. “I was just trying to figure out my place and everything. I didn’t want to be a one-hit wonder.”
While “Ginseng Strip 2002” was the most-used track globally, it ranked third in the U.S. behind “Sunroof” and Luclover’s “L$d.”
Sony Music has added Christel Kayibi to its Africa & Continental Europe team, which she will join as director of repertoire strategy, Africa.
In her new London-based role, Kayibi will be one of the few executives to focus on both Anglophone and Francophone Africa, where she will develop Sony Music’s roster and network; identify catalog, label and other investment opportunities; and drive Sony Music’s entry into new markets across the continent. Kayibi will also work closely with the label’s regional and local Africa teams to assist with the signing of artists in partnership with Sony Music labels worldwide.
For her first project, Kayibi forged a partnership between Sony Music Africa and Afrochella’s parent company, Culture Management Group, along with the streaming service Audiomack, to give unsigned African talent an opportunity to compete for global distribution deals and record contracts through the Ghana-based music festival’s expanded “Rising Star Stage” competition. She will report directly to Daniel Lieberberg, president of Continental Europe & Africa, for Sony, in coordination with Sean Watson, managing director of Sony Music Africa.
Kayibi’s hiring reinforces Africa’s position as a hotbed for global talent that all three major labels want to develop. In September, Def Jam signed an exclusive worldwide joint venture with Native Records, a Nigeria- and U.K.-based label. In June, Universal Music Group also launched Virgin Music Label & Artist Services Africa, which includes over 15,000 music titles, with more than 50 label partners from 25 countries, and releases from more than 100 of Africa’s leading artists. In the last couple of years, Warner Music Group has partnered with Chocolate City, one of Nigeria’s leading independent labels that includes Afrobeat pioneer Fela Kuti‘s son Femi Kuti and “Love Nwantiti (Ah Ah Ah)” hitmaker CKay on its roster, and appointed Temi Adeniji as managing director of Warner Music South Africa and senior vp strategy for Sub-Saharan Africa, a post — similar to Kayibi’s — that’s meant to enhance the company’s presence in the region.
Before moving up at Sony Music, which she joined in 2019, Kayibi previously worked as the senior legal and business affairs manager and A&R at Columbia Records in the U.K., where she worked closely with finance, sales and marketing to ensure successful day-to-day operations of labels, including Columbia Records, 5K Records, Robots + Humans and Dream Life Records.
Before joining Sony Music, Kayibi worked as a lawyer at Slaughter and May, White & Case and Hunton Andrews Kurth LLP.
In 2017, Kayibi became the global legal counsel for Nigerian artist and entrepreneur Mr. Eazi and worked with him on building up his label Banku Music — which expanded its roster beyond its founder with the addition of Nigerian singer Joeboy, Ghanaian singer J.Derobie and Ghanaian DJ/producer GuiltyBeatz –as well as his African talent incubator, emPawa Africa, which currently distributes audio and video content for 100 artists across the African continent. Earlier this year, Kayibi won the best lawyer award at the 2022 Young Music Boss Awards in London, which recognizes the achievements of rising music executives under the age of 35.
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.
Since opening in April, the Moody Center in Austin, has reshaped touring in central Texas, welcoming a bevy of star talent, including John Mayer, George Straight, Roger Waters, The Killers, and Boxscore record-breaker Harry Styles, to name a few. Over 36 shows, the building now tops Billboard’s year end Top Venues (10,0001-15,000 capacity) chart, grossing more than $62.7 million in the process according to figures reported to Billboard Boxscore. Averaging $1.7 million per show, the Oak View Group-owned arena took in more than $5 million more than its closest competitor, OVO Hydro in Glasgow, Scotland, which reported more than 110 concerts.
Moody Center general manager Jeff Nickler says the arena’s success is, first and foremost, due to the city of Austin. Dubbed the live music capitol of the world, Austin was without a proper arena prior to Moody Center and Nickler says the growing population had tons of pent-up demand for big name acts.
“A lot of major tours and artists were skipping the market due to the lack of a premiere venue. So, Oak View Group, Live Nation, [Live Nation-owned] C3 Presents, and [actor] Matthew McConaughey came into the market and we privately financed this building,” says Nickler. “We believed in the music in this market and that investment has paid off in a huge way.”
Moody Center does not have a professional sports team tenant (though the Texas Longhorns basketball programs play there after the arena took over the space from their former home, the 45-year-old Frank Erwin Center on University of Texas’ campus) and has been able to fill its calendar with major artists, many of whom regularly fill larger venues. According to Nickler, the arena’s draw is an amalgam of factors. First, venue partner Live Nation (who has had a record-setting year in revenue and could see its biggest year yet in 2023) has incentive to route their big tours through the new building like Post Malone, Florence + The Machine and Kendrick Lamar. But Moody Center remains an open building, meaning it books tours with any and all promoters including Live Nation competitor AEG.
“Then there is the Irving Azoff effect,” adds Nickler. Azoff is a co-owner of OVG and The Azoff Company manages acts including Styles, Eagles, and Lizzo – all of whom played the arena in 2022.
Styles conducted a six-night run at Moody Center in September and October selling 86,000 tickets and grossing $19.2 million. The multi-night stint was one of many from big artists who could easily fill larger capacity venues in competing markets including Dallas and Houston.
“We see this trend of continuing for artists to do multiple nights in the market,” says Nickler. George Strait and Willie Nelson, the Eagles, Styles and Mayer all did multiple night stints at the arena this year. There is an incentive for artists and promoters to play consecutive nights since it cuts down on bills from labor, marketing and more can cut a budget in half.
Another major advantage to playing Moody Center comes from its floor space. Unlike most arenas designed for sports, Moody Center can hold up to 3,000 fans on its floor compared to an industry average of 2,200, according to Nickler. An artist can significantly boost their grosses with the roughly 800 extra premium seats.
“Even though we have less seats, we can out punch our weight class because of the design of the building, the viability of the market and the ability to charge higher ticket prices,” says Nickler. “That’s a huge factor in why you see that giant number for those tour grosses.”
This is The Legal Beat, a weekly newsletter about music law from Billboard Pro, offering you a one-stop cheat sheet of big new cases, important rulings, and all the fun stuff in between. This week: Atlantic Records faces decades-old sexual assault allegations under a new statute in New York allowing long-delayed abuse cases, Taylor Swift fans sue Live Nation over last month’s Ticketmaster debacle, Guns N’ Roses files a trademark infringement case against a site that sells literal guns and roses, and much more.
THE BIG STORY: Atlantic Hit With Abuse Cases Over Founder
Atlantic Records is facing a pair of new lawsuits from women who say they were sexually assaulted by label co-founder Ahmet Ertegun in the 1980s and 1990s. And thanks to a newly-enacted statute in New York state, more such cases in the music industry could soon be on the way.Last week, former Atlantic talent scout Jan Roeg filed a case that claimed Ertegun (who died in 2006) assaulted her on their first meeting in 1983 and that his abuse then continued for “decades” after that. Naming both his estate and Atlantic itself (a unit of Warner Music Group), Roeg’s lawyers said company leadership knew about the problem but failed to take action to rein Ertegun in, thanks to a “boys will be boys” culture at the company at the time.Then on Sunday, former Atlantic A&R executive Dorothy Carvello filed a similar suit of her own, saying she had been “horrifically sexually assaulted” by Ertegun during her Atlantic tenure in the late 1980s. Carvello’s case cast a wider net, also claiming that former Atlantic co-CEO & co-chairman Doug Morris had assaulted her, and that former chairman and CEO Jason Flom had enabled the misconduct.“Executives at Atlantic Records … treated the company, its corporate headquarters, recording studios, and — even its corporate helicopter — as places to indulge their sexual desires,” Carvello’s lawyers wrote. “Employees like Ms. Carvello were the collateral damage of this toxic workplace culture.”Though the lawsuits are new, the allegations are not. In her memoir Anything for a Hit, Carvello made similar accusations against Ertegun and has since become a relentless voice calling for accountability in the music industry over what she alleges are longstanding patterns of abuse and attempts to silence victims. She’s even purchased stock in all three major record companies, aiming to use shareholder status “to bring more transparency to the music industry,” she told Billboard at the time.Both of the cases against Atlantic were filed under the New York’s Adult Survivors Act, a new statute enacted in May that created a one-year window for alleged abuse victims to file long-delayed lawsuits that would normally be barred by the statute of limitations. Advocates said the law was needed because the trauma of sexual assault and fear of retaliation often prevent abuse victims from seeking justice within traditional time limits.The ASA’s one-year window only went into effect on Nov. 24, and there’s reason to believe that many more cases could be coming before the law expires in a year. When New York passed a similar law in 2019 covering victims of childhood sexual abuse, CNN reported that nearly 11,000 suits were eventually filed during a 2-year window. And it seems unlikely those cases won’t include other decades-old allegations against former executives in the music industry.“The ‘sex, drugs, and Rock n’ Roll’ culture in the music industry at companies like Atlantic Records was taken as license by powerful men like Ahmet Ertegun to engage in sexual assault and other abuse of women,” said Lawrence M. Pearson, Roeg’s lawyer at the firm Wigdor LLP, in a statement when that case was filed. “Now, Ms. Roeg and other survivors of sexual assault who in past years were forced into silence due to the threat of retaliation or loss of their careers can get justice under the Adult Survivors Act.”
Other top stories this week…
TAYLOR FANS v. TICKETMASTER – More than two dozen Taylor Swift fans filed a lawsuit against Live Nation over Ticketmaster’s botched sale of tickets to her Eras Tour last month, the first known case filed over the fiasco. Mostly repeating existing gripes about the concert giant’s “anticompetitive” control of the live music industry, the case also alleged a veritable kitchen sink of other wrongdoing, including intentionally misleading fans about the amount of tickets that would be available and failing to take action against bots.CLASH OVER COVID CASH – Can you sue somebody for copying your “novel idea” that artists might be eligible for federal COVID relief funds? We’re about to find out. In a new lawsuit, a longtime music agent named Laurence Leader accused talent manager Michael Oppenheim of stealing his idea to help musical artists tap into Shuttered Venue Operators Grants — a COVID-era federal program designed primarily to help venues, not musicians. Leader says that after he disclosed the concept to Oppenheim in strict confidence, the rival used the same scheme to secure more than $200 million in SVOG funds for Vampire Weekend, Marshmello, Common, Lil Wayne and many others — something the lawsuit deemed “despicable” and an “outright betrayal.”BILLION DOLLAR BOOZE BATTLE – Jay-Z’s nasty dispute with Bacardi over their D’Usse Cognac brand might be bigger than we thought. In sealed filings made public last week, the rapper’s lawyers disclosed that Jay-Z previously demanded that Bacardi pay him $2.5 billion for his half of the business; that the rapper had offered to pay $1.5 billion to instead buy out Bacardi’s half; and that disputed internal forecasts showed D’Usse selling 2 million cases of cognac and earning $142.8 million annually by 2026. But it might be a while before we get a final outcome: The sprawling case is currently mired in procedural bickering between the two sides, spread across four lawsuits in two different states as well as a private arbitration proceeding.LITERAL GUNS AND ROSES – Guns N’ Roses filed a lawsuit against a gun retailer that’s using the name “Texas Guns and Roses,” arguing that the name infringes the band’s trademark rights — and that the band members especially don’t want to be associated with firearms or “polarizing” political views. The band said the Houston-based company “espouses political views related to the regulation and control of firearms and weapons on the website that may be polarizing to many U.S. consumers.” The site claims to sell literal roses, but GNR’s lawsuit called that a “contrivance” to justify the name theft.MAN WHO SHOT GAGA’S DOG WALKER GETS 21 YEARS – James Howard Jackson, the man who shot Lady Gaga’s dog walker and stole her French bulldogs last year, took a plea deal and was sentenced to 21 years in prison. Jackson, one of three men and two accomplices who participated in the violent robbery, pleaded no contest to one count of attempted murder. Prosecutors said the connection to Gaga was entirely coincidental and that the perpetrators were simply seeking to steal valuable bulldogs, which can cost thousands of dollars.FREEPLAY SAYS MUSIC ISN’T, AH, FREE TO PLAY – Freeplay Music, a company that sells so-called production music for use with video content, filed a copyright lawsuit against CNN that claims the cable news giant used more than 100 different songs in international segments without paying for them. Calling it infringement on a “breathtaking scale,” the Freeplay demanded at least $17 million in damages – the maximum in so-called statutory damages for every song infringed. The case is one of dozens of infringement lawsuits Freeplay has filed over the years, drawing criticism that the company is more interested in “extracting settlements” than actually selling music.ASTROWORLD LITIGATION UPDATE – More than a year into litigation over the deadly Astroworld music festival, attorneys for the event’s organizers told the judge overseeing the case that nearly 1,000 fans who sued over their alleged injuries have ignored discovery deadlines and failed to hand over “critical evidence.” With roughly 2,500 alleged victims still in the case, attorneys for the defendants in the case — Live Nation, Travis Scott, Apple and many others involved in the festival – warned that 956 of them had “not provided any response whatsoever” to basic requests for information: “There is no excuse for the non-responsive plaintiffs’ complete disregard of their discovery obligations.”
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.
The touring industry’s comeback from the pandemic brought record revenues and ticket sales for the world’s largest promoter, Live Nation, No. 1 on Billboard’s year-end Top Promoters ranking.
Driven by mega tours by Bad Bunny (who had the highest grossing tour of the year), the Red Hot Chili Peppers and The Weeknd, Live Nation grossed $4.19 billion and sold 42.3 million tickets from 4,789 in the 2022 tracking period, according to figures reported to Billboard Boxscore covering a Nov. 1, 2021 – Oct. 31, 2022, collection period.
Live Nation’s reported gross was more than the combined $3.9 billion reported by the promoters ranked from Nos. 2-10.
While Live Nation benefitted from strong demand for arena shows, Cowen and Company analyst Stephen Glagola says Live Nation’s global distribution scale, customizable platform for event managers and its ability to finance artists add to their competitive edge.
“The $9 billion in artists’ fees paid this year is one of their biggest advantages,” Glagola tells Billboard, referencing money Live Nation collects through ticketing and other business areas that it returns to the artist.
As a promoter, Live Nation also gives artists financial guarantees as much as 10 months in advance of events. While that makes Live Nation vulnerable to sharp declines in attendance due to sudden events like a COVID-19 outbreak, it is also a persuasive tool to lock in the biggest artists’ tours.
Live Nation had three of the top 10-highest grossing tours of 2022: Bad Bunny was No. 1, grossing $373.5 million; Red Hot Chili Peppers were No. 6, grossing $177 million; and The Weeknd was No. 10, with $131.1 million.
While promotion is considered a low-margin business for Live Nation, Glagola says, it “drives the flywheel” of the company’s overall economics.
“By getting more artists to promote and tour, it drives some of their higher margin, ancillary revenue, such as food and beverage and hospitality within their owned and operated venues, and the expansion of ticketing,” says Glagola.
On the company’s most recent earnings call, Live Nation executives said the busy 2023 touring season is fueling high demand for live music, despite ongoing questions about the potential impact high inflation and tighter consumer budgets may have on ticket sales.
So far, the company is seeing surging demand.
“Ticket sales for shows in 2023 are pacing even stronger than they were heading into 2022, up double-digits year-over-year, excluding sales from rescheduled shows,” said Rapino. Through the third quarter, Ticketmaster sold over 115 million tickets, up 37% from the same period in 2019. (Live Nation uses 2019 as the most recent year comparable to just its current business.)
Contrary to many industries, supply fuels demand, analysts at Cowen said.
“It has to do with the fact that Taylor Swift only comes on tour every few years,” Glagola says. “When she comes through your hometown you want to see her.”
However, popularity has its pitfalls. Live Nation faces lawsuits and a U.S. Senate hearing next year related to the Nov. 15 Ticketmaster pre-sale for Swift’s 2023 Eras Tour, which saw widespread service delays and website crashes as hundreds of thousands of fans tried — and many failed — to buy tickets.
Just days before a trial is set to kick off in Los Angeles over whether Tory Lanez shot Megan Thee Stallion, prosecutors are adding a third felony count to the charges against the R&B singer.
With jury selection for the trial already underway this week, the L.A. district attorney’s office on Monday (Dec. 5) added a new count of discharging a firearm with gross negligence. Lanez (real name Daystar Peterson) was already facing one count of assault with a firearm and another gun possession charge.
Lanez was already facing 22 years in prison over the original charges. It’s unclear if that maximum sentence would be larger if Lanez is convicted on all three counts, but the new charge by itself could still carry a years-long sentence and gives prosecutors another avenue to win a conviction if the more serious charges don’t stick.
George Mgdesyan, Lanez’s lead attorney in the case, did not immediately return a request for comment on the new charge. Beyond confirming the new count, prosecutors declined to comment, including on why the new charge was filed.
Lanez was charged in October 2020 over the July 2020 incident, in which he allegedly shot Stallion in the foot during an argument after a pool party in the Hollywood Hills. Stallion had initially told police officers that she cut her foot stepping on broken glass, but days later revealed that she had suffered a gunshot wound. After media outlets reported that Lanez had fired the gun, Stallion directly accused him in an August 2020 Instagram video.
Lanez pleaded not guilty in November 2020. At a December 2021 hearing, a Los Angeles judge allowed the case to move forward to a trial. During that hearing, a police detective testified that Stallion had told him that Lanez yelled “Dance, bitch!” as he opened fire around her feet, according to the Los Angeles Times.
Jury selection kicked off on Monday and opening statements are set for Dec. 12, with a verdict expected by Christmas. Stallion herself is expected to testify at some point during the trial; it’s unclear whether Lanez will take the stand himself.
For the past few months, Lanez had been under house arrest after an incident in September during which he allegedly assaulted singer August Alsina in Chicago. But on Monday, over protests from prosecutors, Judge David Herriford released him so that he could better prepare with attorneys for the trial.
In the latest example of a stellar synch bringing in a surprise windfall, The Cramps‘ 1981 psychobilly classic “Goo Goo Muck” has become a breakout hit over the past couple of weeks.
Since Netflix’s new Addams Family spinoff Wednesday debuted on Nov. 23, including the series’ titular heroine performing dance sequence set to “Goo Goo Muck”, the track has taken off on streaming services.
In the week following the show’s release, from Nov. 25 to Dec. 1, The Cramps’ “Goo Goo Muck” was streamed on-demand over 2 million times in the U.S. — a more than 8,650% increase from the average 47 weeks before this year. That adds up to $11,089.85 in a single week for the Capitol Records master recording and $2,492.33 in publishing, according to Billboard estimates.
Those numbers dwarf the rest of the song’s 2022 activity — until the Wednesday dance sequence came out, “Goo Goo Muck” this year had generated a total of $130.21 per week for the master and $32.28 for the publisher. Thanks to the Wednesday synch, The Cramps’ “Goo Goo Muck” earned in total almost 78% more money in a single week than it had for the entire year.
“It’s a really amazing, fun little bonanza,” Jim Shaw, a member of the late country legend Buck Owens‘ Buckaroos, who happens to own the publishing, told Billboard last week.
Early streaming activity suggests “Goo Goo Muck,” a cover of a 1962 single by Ronnie Cook and the Gaylads, could potentially follow Kate Bush‘s renaissance when her minor 1985 hit “Running Up That Hill” landed in Stranger Things and turned into a smash. “Goo Goo Muck” had 2,500 daily on-demand streams as of Nov. 22; by Dec. 1, the track jumped to more than 209,000 daily streams, according to Luminate.
The streaming boost for “Goo Goo Muck” is a bonus on top of the upfront synch fee — the amount of which is unknown — that would have been paid on both the master recording and the publishing for the song.
Capitol reps did not respond to an interview request, but Shaw, who runs the Buck Owens Foundation, said he scored the publishing rights after the original publisher, Dave Bell, felt guilty about owing his friend Shaw “a couple thousand dollars” and offered the song instead. (Bell, who died in 2013, owned a recording studio, label and publishing company in his hometown of Bakersfield, Calif., and put out Cook’s original version of “Goo Goo Muck.”)
“It hasn’t really done much until recently,” Shaw says. “That’s what every songwriter, and publisher, hopes will happen. Anything they put on YouTube, they hope something goes viral.” If “Goo Goo Muck” goes full Kate Bush? “Well,” Shaw says. “[It] wouldn’t break my heart.”
Whenever I tell someone that recording artists aren’t paid when their songs are played on AM/FM radio, they are surprised. Yet, it’s true: not a single performer has ever been paid a performance royalty by American broadcasters for analog radio.
Unfortunately, that’s only half the story. When U.S. broadcasters, including iHeartMedia, Audacy, Cumulus Media, and others, refuse to pay for AM/FM radio plays, it is a double whammy. First, it denies thousands of hard-working Americans the full ability to make a living from their craft.
Second, this denial is used as an excuse by many countries around the world to withhold payments to U.S. artists when their music is played overseas. European countries typically pay royalties to foreign artists, but some use U.S. broadcasters’ refusal to pay for AM/FM radio plays as an excuse for denying those royalties to American artists. Given that American music is the most popular in the world, this amounts to hundreds of millions of dollars in lost income for American creators – every year.
Think that’s bad? It gets even worse. Some countries (such as France) do collect royalties on behalf of Americans, but that money never gets to the rightful recipients in the United States. Instead, they divert it towards their local artists or to fund local “cultural” programs. SoundExchange and others are currently in French courts trying to remedy this egregious practice.
Fortunately, some progress is being made. In 2020, the European Court of Justice (ECJ) ruled that all artists, regardless of nationality, should be paid when their music is played in Europe. They cite a principle called “National Treatment,” in which a country must treat foreigners with the same laws they treat their own citizens. It’s an important principle: imagine if the United States denied a foreign national the right to a fair trial simply because their home country doesn’t provide those protections.
In reaction to the ECJ decision, France and others are seeking to limit its impact so they can keep diverting royalties away from American artists for their own cultural funds. The Fair Trade of Music coalition is fighting to ensure that Europe does the right thing and treats artists equally, regardless of nationality.
This battle to protect American interests in Europe has been fought for a while, but the problem could be solved instantly if Congress passed the American Music Fairness Act, legislation to finally grant recording artists a performance right for AM/FM. The notion of paying artists for radio play already exists in the rest of the world and also exists in the U.S. for streaming services (such as Spotify or Sirius XM). The fact that the House Judiciary Committee is expected to consider the legislation on Wednesday is a sign that it’s gaining momentum as Congress completes its work. The legislation lays out a fair approach: it requires billion-dollar corporations to pay their fair share for music. It also protects small broadcasters and college radio stations that would have to pay (at most) only $500 a year (less than $2 per day). The smallest of broadcasters are capped at $10 a year.
Corporate broadcasters argue that a “mutually beneficial relationship” exists between AM/FM radio and music creators. Yet their actions belie that claim, as they spend millions to fight this legislation and avoid sharing the billions of dollars they make in advertising from music. In the past year, the NAB and iHeartMedia have spent over $11 million in lobbying alone. Broadcasters are even using their own federally-granted airwaves to run ads opposing the legislation while ignoring calls to give artists equal time to run their own ads. I guess it’s too dangerous for listeners to hear both sides of the story.
It’s important for Congress to act now. The House Judiciary Committee is considering the bill this week. With the passage of the American Music Fairness Act, artists would finally get paid for their music being played on AM/FM radio in the U.S., and it would remove the excuse for other countries to withhold their royalties from Americans. By recognizing the value of their work here at home, the United States can unlock hundreds of millions of overseas dollars for artists.
Most importantly, it’s simply the right thing to do.
Michael Huppe is president and CEO of SoundExchange.
