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Esteemed law firms Mark Music & Media Law and Roberts & Hafitz have merged to create one bicoastal entity under the name Mark Music & Media Law, P.C. The combined firm will host 15 lawyers, based out of offices in Los Angeles, New York, and Nashville.
Courtesy Photo
Over the years, attorneys under the newly merged MMML have represented clients like Billie Eilish, Guns N’ Roses, The Chainsmokers, Tool, Smokey Robinson, Benny Blanco, Amy Allen, Andrew Watt, New Kids on the Block, Pink Sweat$, Ice Spice, Danny Elfman, Atticus Ross, Lauren Spencer-Smith, Finneas, among many others. They have acted as advisors for film companies’ in-house music divisions, including Warner Bros. for its A Star is Born, Elvis, Space Jam: A New Legacy, and Suicide Squad and MGM for No Time to Die, Respect. Members of the team have also worked with Arthouse Entertainment, Loma Vista, and Epitaph Records.
The New York-based Roberts & Hafitz is helmed by father-son duo Jaimie Roberts and Harry Roberts as well as Michael Hafitz. Now the two films have merged, the MMML New York bureau will comprise of the three leaders as well as Katelyn Wicks, Marisa Masters, Stephen Goldstein, and Leon Morabia.
The Los Angeles hub will host longtime Angelenos Doug Mark and David Ferreria — both partners at MMML — as well as Jared Tankel, Marisa Novak, Eric Morris, Todd Thorson, and Blake Leeper. Elizabeth Gregory will be Of Counsel out of Nashville.
Mark, MMML Founding Partner says of the merger, “we wanted to further build an exciting presence in New York to complement our West Coast group, and now with Harry and his team together with Leon, our firm further establishes itself as the “go-to” for the next generation of superstar talent and entrepreneurs looking for counsel in this ever-changing industry.”
Roberts, MMML Partner adds, “having gotten to know Doug, David, and the MMML team in both a personal and professional capacity, it was clear that they shared the same values and vision as we do. The synergy that the joining of our two practices creates, particularly in terms of resources and firepower, will instantly benefit our clients and colleagues as we continue to build a progressive and modern entertainment legal practice.”
A task force formed in the aftermath of the Astroworld tragedy unveiled a new agreement on Tuesday (Nov. 29) designed to ensure event safety at NRG Park, the former home of the Travis Scott-helmed festival.
The interlocal agreement — put forth by the City of Houston-Harris County Special Events Task Force, formed in February — is meant to streamline safety protocols, permitting requirements and communication for large-scale events at NRG Park, the trade show, convention, sports and entertainment complex where a crowd crush during Scott’s headlining performance last November led to the deaths of 10 people and injured hundreds more. The document is an update to an existing interlocal agreement that was last amended in 2018.
Under the new agreement, any event hosting more than 6,000 people at the complex will require an on-site unified command center staffed by the Houston Fire Department (HFD), Houston Police Department (HPD), Mayor’s Office of Special Events (MOSE), Harris County Sheriff’s Office (HCSO), Harris County Fire Marshal’s Office (HCFMO), NRG Park and the event organizer. Going forward, review and approval of event capacity as well as site, security and medical plans will fall on the HFD chief or a designee. The HFD will also be tasked with clarifying requirements with event organizers to ensure they meet safety, medical and site planning requirements at the venue. Security plans will require additional sign-off by the HPD, while event plans will need sign-off from MOSE. Ideally, having a designated authority will lessen the likelihood of confusion and inaction during events. Permits for NRG Park will continue to be issued by the City of Houston.
The interlocal agreement “defines rules of responsibility and communication and makes us a better county to deal with whatever comes up,” said Houston police chief Troy Finner at a hearing Tuesday.
Mayor’s Office of Special Events director and task force co-chair Susan Christian tells Billboard that the new agreement is designed to ensure all parties are aligned when it comes to planning and executing large-scale events at NRG Park. “We’re much closer with this new [interlocal agreement] in achieving a more communicative process, as well as a process that involves peoples’ input,” she says.
In April, a report by the Texas Task Force on Concert Safety (TFCS) — created by Texas governor Gregg Abbott in the wake of the Astroworld tragedy — concluded that establishing standardized safety procedures could help prevent a similar mass casualty event from happening in the future. According to that report, the lack of communication around permitting, the failure to determine a chain of command and the absence of a capacity limit all contributed to the deadly crowd crush. It recommended the implementation of a universal permitting template that would help clarify the murky permitting process across the state. The Texas Music Office, which led the TFCS report, previously released an online Event Production Guide so as to centralize information around permitting guidelines and the penalties for not complying with them.
The new agreement is designed to help alleviate that confusion, but it’s only a first step in a long process to ensure safety for future events throughout Houston and Harris County, including the 2026 World Cup, which will be partially hosted in the city. “It is a thing of moving forward,” said Finner, “but also it is a work in progress. This is a great start.”
The City of Houston-Harris County Special Events Task Force will continue to meet quarterly to review and expand safety protocols. The agreement — which the Harris County Commissioners Court unanimously voted to approve — will now need signatures from Houston mayor Sylvester Turner, Harris County Judge Lina Hidalgo, the Mayor’s Office of Special Events, the Harris County Sheriff’s Office, the Houston Police Department and the Houston Fire Department, among others. All signatures are expected by next week, says Christian.
On Nov. 5, 2021, 10 people died from compression asphyxia due to a massive crowd surge during Scott’s headlining performance at the 2021 Astroworld festival. In the wake of the tragedy — which resulted in thousands of lawsuits being filed against Live Nation, Scott and other event organizers that were eventually consolidated into a single giant case — the City of Houston-Harris County Special Events Task Force and the TFCS were formed in order to prevent similar mass casualty events in the future.
In addition to the aforementioned task forces, in Dec. 2021 Scott’s charitable entity Cactus Jack Foundation joined forces with The United States Conference of Mayors (USCM) on an initiative designed to put new safety protocols in place in the festival industry. At the time, a draft USCM agreement stated that a comprehensive report based on discussions and research conducted by a working group comprised of individuals across multiple sectors along with outside experts would be compiled between January and June 2022. Billboard reached out to USCM and representatives for Scott but did not hear back on the task force’s progress.
Independent music company Concord is the latest to tap into a growing market for music royalty-backed securities with Concord Music Royalties, LLC, Series 2022-1, a $1.65 billion asset-backed security. The bond will be supported by mechanical, performance and synchronization royalties from more than 1 million assets.
The proceeds will be used to fund reserve accounts, pay transaction expenses, repay debt and for other general corporate purposes, according to a report by ratings agency KBRA.
KBRA gave Series 2022-1 a preliminary rating of A+ (on a scale ranging from AAA to D), citing the “large, diversified catalog with globally recognized songs and artists” such as R.E.M., Plain White T’s, Creed, Evanescence, Genesis, Phill Collins and Mike + The Mechanics — the latter three being purchased just two months ago.
The catalog generated $344.7 million in 2021, with 63% coming from recorded music and 37% from music publishing. More than 41% of the catalog’s assets were released more than 20 years ago and 23% are between 10 and 20 years old. About 3.5% of the catalog is comprised of frontline releases, defined by KBRA as “recently recorded and released music with little or no history,” and option rights that Concord can exercise for rights to future recorded music or publishing from artists in the catalog.
FTI Consulting put a $4.1 billion valuation on the catalog, according to the KBRA report. That’s about the same amount Billboard estimated Concord’s price tag would be when the company was exploring a sale in 2021 — before the purchase of the Genesis, Phil Collins and Mike + The Mechanics catalogs that Billboard estimated were worth at least $335 million and its acquisition of Australian music publisher Native Tongue. Concord had sought additional equity from its majority owner, the Michigan Retirement Systems pension fund, but turned to debt in 2020 to raise $600 million, which it used to pay down existing debt.
Among the offering’s sound recordings, Concord Music Group administers a majority and Universal Music Group distributes a majority. Concord Music Publishing administers most of the music publishing rights and ICE, ASCAP and BMI are the collective management organizations for most of the publishing rights.
Series 2022-1 contains two components: Class A-1 VFN, with a principal balance of $150 million and an anticipated repayment date of January 2026; and Class A-2, with a principal balance of $1.5 billion and an anticipated repayment date of January 2029. Class A-1 VFN will have a variable interest rate — the secured overnight financing rate plus a margin — and Class A-2 will have a fixed interest rate. The notes will pay interest quarterly.
Concord’s offering is the largest of the music royalty-backed offerings rated by KBRA in the last 12 months. KKR’s Hi-Fi Music IP Issuer II, backed by about 62,000 songs, raised $732.5 million in February. Crescendo Royalty Funding, a joint effort of Lyric Capital Group and Northleaf Capital Partners and backed by over 52,000 songs owned by Spirit Music Group, raised $303.8 million in Dec. 2021. Hipgnosis Music Assets 2022-1, backed by the Kobalt Music Copyrights Fund 1 that Hipgnosis Songs Fund acquired in 2020, raised $221.7 million in Dec. 2021.
More than a year into litigation over the deadly Astroworld music festival, attorneys for the event’s organizers say that nearly 1,000 fans who sued over their alleged injuries have ignored deadlines and failed to hand over “critical evidence.”
In a filing last week, attorneys for the defendants in the case — Live Nation, Travis Scott, Apple and many others involved in the festival — alerted Judge Kristen Brauchle Hawkins that 956 alleged victims 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,” the lawyers for the organizers wrote in the Nov. 23 filing. “They should be compelled to comply immediately.”
Some lawyers for victims quickly pushed back, though. In responses on Monday (Nov. 28), attorneys repping dozens of purported non-responders said many of their clients had in fact filed the necessary papers — or had been dropped from the case entirely. Others said their clients had “experienced serious trauma” and that lawyers were “working diligently with them to complete their discovery response.”
The dueling filings came in sprawling litigation over Astroworld, in which a crowd crush during Scott’s Nov. 5, 2021 performance left 10 dead and hundreds physically injured. Thousands of alleged victims are seeking billions in total damages, claiming the organizers were legally negligent in how they planned and conducted the event.
As of May, court filings said that more than 4,900 alleged victims had filed claims in the case. But the latest filings this week suggest that number has now been winnowed down to around 2,500.
The two sides are currently in the midst of what is known as discovery, the legal process in which each side hands over evidence to their opponents. Earlier this year, Live Nation, Scott and other defendants had sought a variety of information about each plaintiff, including details about their particular injury, documentary evidence that they attended the festival and any messages or other digital records related to the festival.
In the filing last week, attorneys for the Astroworld organizers said a huge number of alleged victims had “wholly failed to respond,” despite the fact that the questions had been heavily negotiated with the legal team for the concertgoers.
“It has now been more than six months since defendants served their original discovery requests and more than a month since all extensions have expired,” the Astroworld lawyers wrote. “Yet approximately 38% of the Plaintiffs … have provided absolutely zero response.”
Failing to hand over this “critical evidence” soon could hamper the litigation in ways that cannot be undone, the organizers warned.
“The longer the non-responsive plaintiffs delay, the higher the risk that critical evidence or information in their possession will be lost, destroyed, or forgotten,” they wrote. “Cell phones get lost or destroyed, and the photographs and videos on them get deleted.”
Warner Chappell Music is the first major publisher to step into Web3 through a new deal with Defient — a Web3 entertainment incubator. The deal will allow the Warner Chappell roster, which includes Bruno Mars, David Bowie, Katy Perry and Lizzo, to tap into blockchain technology through digital collectibles, events and memorabilia.
The first project is a digital museum launching early 2023 called “Archives,” which will shine a light on songwriters through an exhibition of music, artwork and collectibles built around the song creation process. A limited-edition NFT mint pass will also give holders access to highly curated drops, auctions and virtual experiences.
WCM believes the partnership will allow the publisher to unlock new methods of monetization. “By embracing the power of blockchain technology, we can create impactful new revenue streams and creative opportunities for our songwriters while giving music fans access to unique experiences,” said WCM senior vp of creative services Ashley Winton. “Not only are [founder & CEO] Sidney [Swift] and his whole team at Defient experts in this space, but they also have deep roots in music and know how to champion the voices of creators.”
Defient is a Web3 incubator with experience across the music industry and the emerging NFT landscape. Founded by Grammy-nominated producer Sidney Swift, Defient was instrumental in developing a Web3 record label, ChillRx, which has generated over $1 million in volume since launching in February 2022.
In a statement about the collaboration, Swift said, “We’re proud to be working with Warner Chappell as they expand into the web3 community that Defient is already so ingrained in. Having started my career as a songwriter and producer, it’s exciting to join forces with a forward-thinking partner and work towards making it easier and more accessible for songwriters and artists to leverage web3 platforms. Together, we want to use technology to empower creatives and help them elevate their brands.”
Major labels have already made the leap into NFTs via dedicated Web3 imprints such as 10:22PM at Universal Music Group and Probably a Label at Warner Records UK. Publishers have taken a slower approach, but WCM is optimistic that blockchain technology will offer new opportunities for its songwriters. “This is a unique opportunity to shape the future of music publishing,” said WCM co-chair and CEO Guy Moot and co-chair and COO Carianne Marshall in a joint statement. “With Defient’s support, we’ll be able to unlock new avenues in web3 on behalf of our songwriters and find different ways for them to grow their legacies and engage with fans.”
Spotify CEO Daniel Ek on Wednesday (Nov. 30) blasted Apple for “stifling innovation and hurting consumers,” publicly renewing his company’s longstanding grievance that the tech giant abuses its dominant position over the market for smartphone apps.
In a series of tweets, the Spotify founder said Apple was “shameless in their bullying” of app developers and called on lawmakers in both the U.S. and the European Union to take “action” against a company that he said “doesn’t seem to care about the law or courts.”
“Over and over again @Apple gives itself every advantage while at the same time stifling innovation and hurting consumers,” Ek wrote. “Apple offers consumers the illusion of choice and give[s] developers the illusion of control.”
A spokeswoman for Apple did not immediately return a request for comment on Ek’s tweets.
Spotify has long been an outspoken critic of the rules Apple imposes on its app store — namely a 30% surcharge on most transactions made within the platform, and provisions that restrict how apps steer customers toward outside payment systems.
Apple says tight rules for app developers are needed to protect users from payment fraud and privacy violations. But critics say the company — which currently controls more than half the U.S. smartphone market with the iPhone and iOS operating system — is merely exploiting its dominant position to extract more money. Those complaints are even stronger from Spotify, since it also directly competes with Apple Music for subscribers.
Google, which accounts for the vast majority of the rest of the market for smartphone apps, is facing similar criticism and litigation.
The arguments against Apple’s app policies won a powerful ally last week when new Twitter owner Elon Musk raised the issue amid his own messy dispute with the tech giant. After claiming Apple had pulled its advertising and had threatened to pull Twitter from its app store, the polarizing billionaire asked his 120 million followers if they were aware that Apple “puts a secret 30% tax on everything you buy.”
In Wednesday’s thread, Ek directly quoted Musk’s tweet, as well as others who have voiced similar criticism. Citing “bipartisan support and global interest,” he said that “momentum” was building for some kind of action against Apple.
“So how much longer will we look away from this threat to the future of the internet?” Ek wrote. “How many more consumers will be denied choice? There’s been a lot of talk. Talk is helpful but we need action.”
Apple is already facing a high-profile lawsuit, filed by Fortnite creator Epic Games, that claims the app store policies violate federal antitrust laws. A trial court issued a split ruling on the case last year, and the battle is currently pending before a federal appeals court.
Though not directly involved in the Epic case, Spotify filed its own complaint against Apple in 2019 with the European Commission, the EU’s regulatory enforcement watchdog. Last year, EU regulators released preliminary findings that Apple had likely broken the law, saying the company “deprives users of cheaper music streaming choices and distorts competition.”
Even bigger changes could be coming via new legislation. In Washington, D.C., a bipartisan trio of senators are pushing a bill called the Open App Markets Act, which would impose strict new rules on both Apple and Google’s app stores. And lawmakers in the EU have already passed a new statute called the Digital Markets Act, which will place a raft of new restrictions on how app stores are run.
Though it will take time for the new EU law to fully go into effect, it was aimed directly at complaints like the one Ek voiced Wednesday against Apple. In an interview with Wired last month, one of the law’s architects said he expected “significant” consequences: “If you have an iPhone, you should be able to download apps not just from the App Store but from other app stores or from the internet.”
Emboldened House Democrats ushered in a new generation of leaders on Wednesday (Nov. 30) with Rep. Hakeem Jeffries elected to be the first Black American to head a major political party in Congress as long-serving Speaker Nancy Pelosi and her team step aside next year.
Showing rare party unity after their midterm election losses, the House Democrats moved seamlessly from one history-making leader to another, choosing the 52-year-old New Yorker, who has vowed to “get things done,” even after Republicans won control of the chamber. The closed-door vote was unanimous, by acclamation.
“It’s a solemn responsibility that we are all inheriting,” Jeffries told reporters on the eve of the party meeting. “And the best thing that we can do as a result of the seriousness and solemnity of the moment is lean in hard and do the best damn job that we can for the people.”
Many in the music business are likely celebrating Jeffries’ election today. The Congressman, who has served as the U.S. representative for New York’s 8th Congressional District since 2013, has been a longtime champion of music creators. Among other efforts, he co-sponsored the Music Modernization Act, the most important copyright law passed in decades, as well as the Copyright Alternative in Small-Claims Enforcement Act of 2020, a.k.a. the CASE Act, which streamlined copyright disputes by creating a small claims tribunal within the U.S. Copyright Office to adjudicate small claims infringement cases.
A noted hip-hop fan who once gave The Notorious B.I.G. a shout-out from the House floor, in 2018 Jeffries hosted the sixth annual “Hip-Hop on the Hill” political fundraiser. He was also an honoree at the Recording Academy’s GRAMMYs on the Hill in 2019, an annual event that honors congressional leaders and music creators who fight for creators’ rights. This September, Jeffries was honored by the RIAA as well, along with hip-hop pioneers Grandmaster Flash and MC Lyte, at RIAA Honors 2022: Hip-Hop, where he received the policy maker of the year award. (Billboard sponsored this event.)
This creator-friendly mindset may have stemmed in part from Jeffries’ days as a lawyer prior to entering politics. During that period, Jeffries worked on several copyright cases, including representing Lauryn Hill in a case brought by some of her collaborators. In a previous statement, National Music Publishers Association (NMPA) president David Israelite said that Jeffries “has a deep understanding of copyright law” and “may know the subject better than anyone else in Congress.”
In a statement sent to Billboard, Recording Academy CEO Harvey Mason jr. applauded Jeffries’ election: “Since his first year in Congress in 2014, Hakeem has been a dynamic leader in shaping music policy and fighting for legislation that benefits and protects music creators. From signing on as a lead cosponsor of the Music Modernization Act in 2018 and the CASE Act in 2020, to being celebrated as a GRAMMYs On The Hill Honoree in 2019, he’s been a key ally to the music community and instrumental in achieving bipartisan support for music people. We’re thrilled for him to take on this new role, and we look forward to seeing how this will impact the important issues facing our ecosystem of music creators.”
It’s rare that a party that lost the midterm elections would so easily regroup and stands in stark contrast with the upheaval among Republicans, who are struggling to unite around GOP leader Kevin McCarthy as the new House speaker as they prepare to take control when the new Congress convenes in January.
Wednesday’s internal Democratic caucus votes of Jeffries and the other top leaders came without challengers. Cheers broke out after the elections.
The trio led by Jeffries, who will become the Democratic minority leader in the new Congress, includes 59-year-old Rep. Katherine Clark of Massachusetts as the Democratic whip and 43-year-old Rep. Pete Aguilar of California as caucus chairman. The new team of Democratic leaders is expected to slide into the slots held by Pelosi and her top lieutenants — Majority Leader Steny Hoyer of Maryland and Democratic Whip James Clyburn of South Carolina — as the 80-something leaders make way for the next generation.
But in many ways, the trio has been transitioning in plain sight, as one aide put it — Jeffries, Clark and Aguilar working with Pelosi’s nod these past several years in lower-rung leadership roles as the first woman to have the speaker’s gavel prepared to step down. Pelosi, of California, has led the House Democrats for the past 20 years, and colleagues late Tuesday granted her the honorific title of “speaker emerita.”
“It an important moment for the caucus — that there’s a new generation of leadership,” said Rep. Chris Pappas, D-N.H., ahead of voting.
Democratic Rep. Cori Bush of Missouri called the leadership election “historic” and a “time for change.”
While Democrats will be relegated to the House minority in the new year for the 118th Congress, they will have a certain amount of leverage because the Republican majority is expected to be so slim and McCarthy’s hold on his party fragile.
The House’s two new potential leaders, Jeffries and McCarthy, are of the same generation but have almost no real relationship to speak of — in fact the Democrat is known for leveling political barbs at the Republican from afar, particularly over the GOP’s embrace of former President Donald Trump. Jeffries served as a House manager during Trump’s first impeachment.
“We’re still working through the implications of Trumpism,” Jeffries said, “and what it has meant, as a very destabilizing force for American democracy.”
Jeffries said he hopes to find “common ground when possible” with Republicans but will “oppose their extremism when we must.”
On the other side of the Capitol, Jeffries will have a partner in Senate Majority Leader Chuck Schumer as two New Yorkers are poised to helm the Democratic leadership in Congress. They live about a mile (1.6 kilometers) apart in Brooklyn.
“There are going to be a group, in my judgment, of mainstream Republicans who are not going to want to go in the MAGA direction, and Hakeem’s the ideal type guy to work with them,” Schumer said in an interview, referencing Trump’s “Make America Great Again” slogan.
Jeffries has sometimes been met with skepticism from party progressives, viewed as a more centrist figure among House Democrats.
But Rep. Rashida Tlaib, D-Mich., a progressive and part of the “squad” of liberal lawmakers, said she has been heartened by the way Jeffries and his team are reaching out, even though they face no challengers.
“There’s a genuine sense that he wants to develop relationships and working partnerships with many of us,” she said.
Clark, in the No. 2 spot, is seen as a coalition builder on the leadership team, while Aguilar, as the third-ranking leader, is known as a behind-the-scenes conduit to centrists and even Republicans.
Clyburn, now the highest-ranking Black American in Congress, is seeking to become the assistant democratic leader, keeping a seat at the leadership table and helping the new generation to transition.
But Clyburn faces an unexpected challenge from Rep. David Cicilline, D-R.I., who is openly gay and argued Wednesday in a letter to colleagues that House Democrats should “fully respect the diversity of our caucus and the American people by including an LGBTQ+ member at the leadership table.”
The election for the assistant leader post and several others is expected to be held Thursday.
Jeffries’ ascent comes as a milestone for Black Americans, the Capitol built with the labor of enslaved people and its dome later expanded during Abraham Lincoln’s presidency as a symbol the nation would stand during the Civil War.
His Brooklyn-area district was once represented by Shirley Chisholm, the first Black woman elected to Congress, who was born on the same day as his election, Nov. 30, in 1924.
“The thing about Pete, Katherine and myself is that we embrace what the House represents,” Jeffries said, calling it “the institution closest to the people.”
While the House Democrats are often a big, diverse, “noisy family,” he said, “it’s a good thing.” He said, “At the end of the day, we’re always committed to finding the highest common denominator in order to get big things done for everyday Americans.”
What happens when you let 5,555 music fans make decisions at a major label? Warner Records is about to find out through its new Web3 imprint Probably a Label. After selling out a collection of NFT access-passes, the holders will now gather in a Discord server to help develop artists together, share the credits of any future awards such as a Grammy, and ultimately offer intellectual property rights in some of the projects to NFT holders.
The experiment is a collaboration between Warner Records UK and Web3 brand Probably Nothing, whose debut NFT collection fetched $500k in seven minutes in October. Each NFT comes with different rarity and label roles (4,000 scouts, 1,500 managers and 55 label heads), allowing holders to vote on certain decisions. The rarest — and most expensive, currently at $2,138 — come with priority voting and access to exec dinners.
“This is a vehicle for us to explore new ways of working as a label,” says Sebastian Simone — vp of audience & strategy at Warner Records UK. For the first time at a major label level, fans will be involved in artist development, starting with the creation of a virtual artist. “[The virtual artist] will be built in conjunction with the community of holders through a voting system on design, storyline and other creative.”
Holders have already been gifted a free music NFT — “Money on the Table” by Diddy and Jason Martin — but the label isn’t just focused on NFTs. It will also run traditional campaigns to help break emerging talent within the Web3 space. Simone envisions a future where Web3-native artists developed through the label are “Selling out global tours, winning awards and crossing over into the mainstream.” There will also be crossover from the existing Warner roster where Probably a Label will act as the first touchpoint for established acts to experiment with NFTs.
Warner has been an early-adopter in Web3, launching the Stickmen Toys NFT project in August — an early experiment in granting IP rights to fans from a major label. Stickmen Toys holders own the full rights to the music and can use it however they like. Warner Records also landed the UK’s first ever No. 1 with a chart-compatible NFT release through Muse’s Will of the People. “WMG is focused on ensuring that our artists are deeply embedded in this world of Web3 so that they are not just using the technologies but helping to define them,” says Oana Ruxandra, chief digital officer and executive vp, business development. “We are putting a lot of time and energy behind this burgeoning space.”
Courtesy Photo
Rather than keep everything inside the Warner machine, however, the label partnered with Probably Nothing — a Web3 brand founded by former restaurateur and TV chef Jeremy Fall. The brand already has a community of thousands and previous experience with NFT drops including the Probably Nothing Genesis Pass which generated 879 ETH (~$1.03 million) in volume since launching in May 2022. The idea is to co-sign Warner’s NFT activities with an established name in Web3. “We’re in a new market exploring and learning,” says Simone. “It’s crucial we partner with people who have a deep, early-adopter understanding of new technologies and the culture.”
On paper, it’s a smart move. Many music companies and major label artists have blundered into Web3 without engaging with the existing community or taking the temperature of the market, leading to disastrous results and backlash. Collaborating with native Web3 teams appears to be a winning formula for bigger corporate entities.
For Fall, the venture allows him to dive deeper into music, which he says has always been part of his identity. During his days as a TV chef, he hosted a “Beats for Breakfast” show with Miguel. “Anytime I can be creative in a new way gets me excited. I have a vision on how I could help impact the music industry … and having Warner Records help bring those ideas to life excites me the most.”
The label’s biggest promise of all, however, is to “redefine IP ownership in music.” Although specific details are still cloudy, Fall says “We will be granting IP rights to certain [label] projects, depending on how they are structured … disrupting the traditional label model by opening the doors to sharing ownership in valuable content.” The team can’t yet confirm whether this will extend to the virtual artist currently in development or any of the songs.
Some of this IP experiment will also be explored in an initiative called Studio A and Studio B. “Studio A is our IP incubator,” explains Fall. “It allows our holders to pitch their existing [NFT-related] IP to us.” For example, if a member of the community owns a Doodles, Azuki, Bored Ape Yacht Club or select other NFTs, they can pitch an idea to the label based around the NFT, such as a music video, virtual artist, song or short-film. If accepted, Probably a Label will help provide resources, financing and marketing.
Studio B is more like a pooled music library. Anyone with a label pass can submit tracks to Studio B, and someone else from the community could use that music in their own project, such as a movie or sample for a beat. “If someone from our community wants to use one of the tracks for a project,” says Fall, “We will broker the communication between holders that allows them to license it.”
Critics might ask whether any of this requires NFTs at all. Fan voting mechanisms and shared communities can be created without Web3. Fall explains, “The traditional Web2 model doesn’t allow us to … give [fans] any ownership in projects. NFTs are this exact core that give people emotional ownership and value in projects they are a part of.” Important to note, however, that owning an NFT does not automatically guarantee IP ownership unless it’s explicitly stated.
In terms of providing value, the NFT label pass could be expected to rise if the label and its artists are successful, rewarding holders for their participation. However, the label will have to contend with the fact that the current price of the NFT (0.03 ETH) is now worth less than half the mint price (0.09 ETH). Anyone that purchased on the day of launch is now underwater unless they pulled one of the 55 rarest passes. While this is not unusual for NFT projects in the current down-market, it is uncharted territory for a major label that will now have to manage expectations of thousands of music fans who may have lost money on paper. The team isn’t fazed yet, though. “We’re focused on providing the best experience and value to our community,” says Simone. “The rest will fall into place.”
For record executives, the story of Michael Jackson‘s Thriller begins in 1979, three years before the album came out, when disco crashed and record stores returned millions of unwanted LPs to major labels. That year, recorded-music revenues dropped 10% from the previous year prior, according to RIAA data, and vinyl sales were just beginning to decline after years of growth. CBS Records had massive layoffs that summer; Warner Bros. followed with 55 in December.
“When I came in on Monday, there were half-smoked cigarettes in ashtrays and half-typed memos in typewriters,” recalls Jim Urie, then CBS’ New York branch manager, who pink-slipped 40 on his staff. “It was really, really brutal.”
The industry-wide malaise, coinciding with a worldwide recession, lasted two or three years. “It was the first time all of us young people in the music business had business hit us in the face,” says Dan Beck, Epic Records’ head of publicity at the time, who recalls another “major” wave of company wide CBS layoffs in summer 1982. “One of the first things people cut back was the disposable income — so if somebody bought three or four albums a month, and now they only bought one or two, that was pretty dramatic to our business.”
Thriller, released exactly 40 years ago, on Nov. 30, 1982, helped usher in the music business’ comeback, along with the explosive growth of MTV and the adoption of the compact disc. Jackson’s follow-up to 1979’s Off the Wall took off instantly, beginning with the opening single, “The Girl Is Mine,” a duet with Paul McCartney designed to cross the album over to a white radio audience. All seven of its singles would land in the top 10 of the Hot 100, and the album would spend 37 weeks at No. 1 on the Billboard 200. Thriller coaxed fans back into record stores to buy multiple copies, thus providing labels with resources to market Madonna, Prince, Bruce Springsteen, Cyndi Lauper and, later, hair-metal bands. At the end of 1981, CBS Records, which owned Epic at the time, took in $1 billion in revenue, its worst earnings since 1971; by the end of 1983, its net income increased 26% to $187 million.
“It pulled the music industry out of the doldrums,” says Larry Stessel, then Epic’s West Coast marketing vp. “It helped pull us out of the disco days and it became a whole new world.”
Stessel, who worked closely with Jackson on music videos, says the industry recession from roughly 1979 to 1983 helped his staff learn to economize — which made Epic and other labels leaner and stronger when the business came back.
“It allowed us to utilize our dollars more efficiently, develop local campaigns — if you could break an artist out of Kansas City, then obviously your next goal was to spread it to St. Louis, and maybe your next stop would be Milwaukee or Chicago or Detroit, depending where the airplay was,” he recalls. “It made us smarter marketing people when the doors opened up again after Thriller was released.”
Famously, Thriller‘s sales run kept going and going — it spiked after every new single and video, and surged after Jackson did the moonwalk during NBC’s Motown 25 anniversary special in May 1983. Today, Jackson’s label, Sony, claims Thriller as the best-selling global album of all time; in the U.S., according to the Recording Industry Association of America, it is 34 times platinum, behind the Eagles’ Their Greatest Hits 1971-1975, at 38 times platinum. Even as Jackson’s legacy is tainted with allegations of child sexual abuse in HBO’s 2019 documentary Leaving Neverland, the album has generated 3.87 million U.S. album-equivalent units in the past 10 years, including 1.2 million in physical album sales, according to Luminate.
“I knew then,” Stessel says of Thriller‘s staying power. “We started literally selling 1.2 million copies over the country every week. The album went from 4 to 6 million copies to 7, 8, 9, 10, 11.”
Thriller did more than reverse CBS Records’ fortunes in the early ’80s. It helped encourage Sony Corp. to buy the label home of Jackson, Springsteen, Barbra Streisand, Neil Diamond and many other stars for $2 billion in 1988. The idea was to unite software (music) with Sony’s new hardware (compact discs), and Thriller was the most valuable content of all. “You don’t buy Michael Jackson because he sounds like somebody else. You buy him because he resonates with you,” says Mickey Schulhof, then Sony’s top executive in the U.S. “Having content, we knew, was going to be an important part of Sony’s future, and the largest content library in the record industry was CBS Records. It was an easy decision.”
Thriller made Urie, CBS’ New York branch manager back then, forget those painful 1979 layoffs — almost. “If you have a big enough record — and this is certainly true today — it throws off so much profit over its lifetime that it really can change things,” he says. “It cures all ills.”
Universal Music Group (UMG) has struck a deal to acquire a 49% shareholding in PIAS Group, the leading European independent music company.
Financial terms of the arrangement, announced early Wednesday (Nov. 30), were not disclosed.
By taking a minority stake in PIAS Group, UMG, the world’s leading major music company, expands on its strategic global alliance struck with the indie powerhouse in June 2021.
PIAS, or Play It Again Sam, was founded in Belgium 1982 by Kenny Gates and Michel Lambot, both career-long advocates for the independent music sector.
Gates and Lambot will retain majority control of the company, a joint statement reads, and UMG will have no seats on the company’s board.
Headquartered in London and Brussels, PIAS is said to be one of the largest independent and privately-owned music companies in the world.
The group includes the PIAS Label Group, which oversees the business’ various record label interests, and Integral Distributions Services, which provides support to its own, in-house labels and upwards of 100 independent label partners, including ATO, Beggars Group, Bella Union, Chrysalis, Domino, Epitaph, LSO, Mute, Ninja Tune, Partisan, Secretly Group, Transgressive and Warp.
Today, PIAS boasts 16 offices around the world with 300 employees.
“The boldly independent and music-centric culture that Kenny and Michel have built over the last four decades has provided a vital creative network to so many artists,” comments UMG chairman and CEO Lucian Grainge, in a statement.
“While much of the past was focused on ‘majors versus indies,’ it’s clear that today, the important divide in our industry is about those committed to artist development versus those committed to quantity over quality. “
He continues, “We share Kenny and Michel’s passion for developing artists and moving culture, and we recognize that a healthy music ecosystem needs companies like PIAS who are committed to amplifying the best voices in independent music.”
As PIAS celebrates its 40th anniversary, Gates and Lambot insist the new arrangement will enable its artists, clients and team to flourish.
Says Lambot, one of the founders of the pan-European independent music companies’ trade body Impala, “we are still as ambitious as we were when we started out about growing our global presence and providing a world class service to the independent music community.”
Gates adds, “These days we are competing with finance and tech giants and a partner like Universal Music Group provides the additional support for us to compete and grow. Universal made it clear that they like us, they trust us and they need us, because they can’t do what we do and they value it highly.”
This move, Gates continues, “makes us stronger and secures the future of our brand, our staff and our partners while maintaining control of our destiny.”
Created in a Brussels cellar four decades ago by Gates and Lambot, PIAS began life as a distributor of independent labels. Four years, the pair launched publishing company Strictly Confidential, and PIAS continued to grow its footprint, including the opening of offices Paris and London (in 1994), Hamburg (1995), Madrid (2000), New York and Stockholm (2013), and Sydney (2017) through the acquisition of Inertia.
