State Champ Radio Business
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Despite various economic headwinds, including inflation, we have not seen any pullback in demand,” Live Nation CEO Michael Rapino said during the company’s earnings call on Thursday (Nov. 3). In the third quarter, Live Nation posted record revenue for its concerts division of $5.3 billion as well as the company’s best-ever gross transaction value at its Ticketmaster division of $6.7 billion. Its high-margin sponsorship and advertising division also produced record adjusted operating income of $226 million, up 56% from the same period in 2019.
Looking ahead to 2023, Live Nation is “feeling very good about the attendance levels for next year,” said president and CFO Joe Berchtold. “Our tickets sold for the shows that we have on sale for next year are up consistently across all venue types relative to a year ago.” Excluding rescheduled events, Ticketmaster’s sales for 2023 concerts are up by double digits compared to advance ticket sales at the same point in 2021.
Demand depends on the supply of artist tours, and Live Nation executives believe next year’s tours will have a similar level of quality as this year’s headline tours, which included runs by Bad Bunny, Red Hot Chili Peppers and The Weeknd, among others. “If you were a stadium act, a large selling arena act, you probably debated whether you went out in ‘22 or you went out in ‘23,” said Rapino. “From clubs to stadiums to arenas, it looks like a similar year [in terms of] quality.” Next year, Live Nation will promote tours by Taylor Swift, Blink-182, Shania Twain, Dead & Company, Depeche Mode and the Eagles.
The warning signs for pending economic doom are everywhere. On Thursday, hedge fund giant Elliott warned of a “global societal collapse” and a further 50% decline in equity markets due to hyperinflation and an end to an “extraordinary” period of cheap money. The same day, the Bank of England warned that the U.K., facing high energy costs and rising interest rates, could suffer its longest-ever recession and a possible doubling of unemployment over the next two years.
The biggest banks have raised concerns, too. On Wednesday, Citi said the U.S. could fall into a recession in the second half of 2023. JPMorgan Chase & Co. CEO Jamie Dimon said earlier this month the global U.S. economies would hit a recession in mid-2023, although he added the U.S. economy was “actually still doing well” at present.
The U.S. economy is a grab bag of mixed signals that point to both resilience and stress. U.S. payrolls increased by 261,000 in October. Yet auto loan delinquencies are on the rise, according to TransUnion, and repeated interest rate hikes by the Federal Reserve means consumers with credit card balances will pay more in interest.
But Live Nation’s numbers show fans are spending money on concerts in record numbers. At Live Nation’s U.S. amphitheaters and global festivals, ancillary fan spending — which covers items such as food, beverage, merchandise and parking — in the third quarter increased almost 30% to $38 per fan from the same period in 2019. At U.S. and U.K. theaters, ancillary fan spending increased by over 20% relative to 2019.
A year after the deadly disaster at Travis Scott‘s Astroworld festival on Nov. 5, 2021, event organizers and victims are still locked in sprawling litigation over the tragedy, with hundreds of millions in potential damages on the line and no quick end in sight.
Beginning just hours after the incident, more than 4,900 alleged victims have filed legal claims against Live Nation, Travis Scott and other festival organizers over the disaster at Astroworld, in which a crowd crush during Scott’s headlining performance left 10 dead and hundreds physically injured.
The cases claim the organizers were legally negligent in how they planned and conducted the event, including not providing enough security and having insufficient emergency protocols in place. One case, filed by the family of a boy who died that night, claimed Live Nation and Scott had “egregiously failed in their duty to protect the health, safety, and lives of those in attendance.”
Combined, the cases are seeking billions in damages over the disaster. Even if a final settlement comes no where close to that total — and it likely won’t — the huge potential penalties resulting such “mass tort” cases should serve a stark reminder for those planning future music festivals.
“In business situations there’s always a pressure to cut costs, but you can’t cut costs in a way that ends up costing people lives and limbs,” says Mark Geistfeld, a professor at New York University School of Law and an expert in such litigation. “The point of mass torts is that you need something out there to temper the profit motive.”
“These cases can be a real wake up call,” Geistfeld says. “Are we actually spending enough on security and things like that to make sure these kinds things don’t happen?”
The lawsuits over Astroworld were all filed individually by the different victims, but they’ve been consolidated before a single Texas state judge as a “multidistrict litigation” — a standard procedure aimed at avoiding the inefficiency of individually litigating many cases that share key similarities.
Such a move not only helps streamline the proceedings, but also could make it easier to reach a broad settlement with all victims, like the $800 million deal that ended similar litigation over a 2017 mass shooting at a Las Vegas concert festival.
“Settlements are the way these cases almost always end,” says Jay Tidmarsh, a professor at Notre Dame Law School and an expert in complex civil litigation. “They make sense because of the risks of loss on both sides as well as the cost of litigation.”
A year into the case over Astroworld, sources close to the litigation tell Billboard that the parties are currently in the midst of what is known as discovery — the laborious process during lawsuits in which each side hands over mountains of evidence to their opponents, like internal emails about how the event was planned. Requests for such info have been exchanged, and disputes over what should be disclosed will be hammered out by the judge in the months ahead.
The parties are also gearing up to start depositions, in which attorneys for each side will take testimony from the various figures in the case, potentially including victims themselves, witnesses to the disaster, people involved in planning and many others. Each side is also lining up their own “expert witnesses” — specialists and professionals who will offer dueling analysis on what went down at Astroworld.
That work could still take well over another year, given the sweeping scope of a case involving more than a dozen defendants and thousands of plaintiffs. But when discovery and depositions eventually wrap up, the case will likely head in one of two ways.
One is a quick settlement. Based on what gets disclosed during discovery, it could become apparent to attorneys for the organizers that they’re facing a very strong case. Or plaintiffs might get worried that their ultimate damages award might be limited, even after years of costly litigation.
“One way these cases go is what’s called global peace — a large settlement that will cover all of these claims,” Geistfeld says. “If the amount is right, it might just be better for both sides to take that route rather than go to case by case litigation.”
If the parties can’t reach such a deal, they’ll keep litigating. But they won’t just take all 4,900 cases to trial. Instead, the litigation will likely proceed toward what are known as “bellwethers” – a handful of trials over individual victims that aim to serve as a representative sample of the broader case.
In the bellwethers, the two sides will grapple over the core question in all the cases — whether the conduct of Live Nation, Scott or any of the other planners caused the injuries suffered by various concertgoers. As reported by Billboard last year, that question will turn on whether the planners could have seen such a disaster coming, and whether they then took the proper steps to avoid it.
No matter how those early cases play out, experts say the case is still likely to eventually end in a settlement. But the outcome of the bellwethers will play a huge role in decided how that deal is ultimately structured.
“What [bellwether trials] do is set a baseline for negotiation,” Tidmarsh says. “Say the plaintiffs lose almost all of the early cases, then the settlement value goes way down. Say they win millions, then the value goes way up.”
A federal jury in Texas decided Thursday (Nov. 3) that an internet service provider must pay the three major record labels and others more than $46 million in damages over music illegally downloaded by the company’s subscribers.
After a month-long trial, jurors found that Grande Communications was legally liable for copyright infringement committed by its users — and that it owed separate damages for each of the more than 1,400 songs that were pirated on the company’s network.
The case is one of several such cases filed by music companies against ISPs, aimed at forcing them to take more proactive steps to eliminate piracy on their networks. In 2019, the labels won a shocking $1 billion verdict against Cox Communications in a similar case.
Grande’s attorneys did not immediately respond to a request for comment Friday on the verdict. Mitch Glazier, the head of the Recording Industry Association of America, called it “the latest validation by US courts and juries that unchecked online infringement will not stand.”
“The jury’s strong action here sends an important message to Internet Service Providers,” Glazier said. “Artists, songwriters, rightsholders, fans and legitimate services all depend upon a healthy digital music ecosystem that effectively protects creative works online.”
Universal Music Group, Warner Music Group and Sony Music Entertainment teamed up to sue Grande in 2017, claiming the company had put itself on the hook by failing to take action against users who repeatedly pirated music.
“Defendants have been notified that their internet customers have engaged in more than one million infringements,” attorneys for the labels wrote at the time, but “have permitted repeat infringers to use the Grande service to continue to infringe plaintiffs’ copyrights without consequence.”
Internet service providers are typically not liable for individual infringements by their millions of users, thanks to the Digital Millennium Copyright Act’s “safe harbor.” But starting in the mid-2010s, music companies began arguing that ISPs had forfeited that immunity by ignoring the DMCA’s requirement that they terminate “repeat infringers” from their network.
Starting with a landmark case filed by BMG Rights Management against Cox, those arguments have repeatedly proved successful. Major labels have filed similar cases against Cox, Charter, RCN and other ISPs in courts around the country, winning huge verdicts like the $1 billion award against Cox (which is currently pending on appeal).
Facing such a lawsuit, Grande fired back that the music industry was wrongfully trying to turn ISPs into “copyright police.” Grande said such claims should really be targeted at the actual people who steal music, but that record labels had stopped pursuing them “due to bad publicity.” That was a reference to a series of controversial lawsuits filed in the 2000s, including one that ordered a Boston college student to pay $675,000 for pirating just 30 songs.
But the federal judge overseeing the case denied Grande’s motions and sent the case to trial, which kicked off last month. Following Thursday’s verdict, the company can appeal the ruling — first by asking the judge to overturn it, and then by taking the case to a federal appeals court.
Read the verdict form here:
Even with BTS on hiatus, the band’s label and agency HYBE grew revenues 445.5 billion KRW ($308.7 at the Sept. 30 exchange rate) from July to September — up 30.6% from the year-prior period, according to the company’s third-quarter earnings report released Thursday. But compared to second-quarter revenue of 512.2 billion KRW ($354.9 million), revenue was down 13%.
The “artist direct-involvement” segments of the business showed mixed results in the quarter. Music sales of 129.2 billion KRW ($89.5 million) were 0.4% year-over-year and 38.7% lower than the previous quarter. Concert revenue of 47.2 billion KRW ($32.7 million) was a vast improvement over zero in the third quarter of 2021 but lower than the first and second quarters. Revenues from ads, appearances and management fell 11.7% year-over-year to 29.8 billion KRW ($20.2 million).
HYBE saw better performance from its “artist indirect-involvement” segments that are less dependent on the timing of music releases and tour dates. Merchandising and licensing revenue grew 49.5% year-over-year to 144.7 billion KRW ($100.3 million). Contents revenue climbed 22.9% to 107.2 billion KRW ($74.3 million). And fan club revenue improved 27.5% to 17.3 billion KRW ($12 million).
Though the first nine months of the year, HYBE’s revenue improved 55.7% year-over-year to 1.24 trillion KRW ($859.2 million) and its operating profit increased 59.% to 185.9 billion KRW ($128.8 million). Operating margin improved from 14.6% to 15%.
Despite the impressive growth, HYBE is facing a dilemma. The company is without its biggest artist, BTS, after members went on hiatus earlier this year and will soon face mandatory military service in Korea. Losing its cash cow — until “around 2025,” according to an Oct. 17 letter to shareholders from CEO Park Ji-won — leaves Hybe with a tricky balancing act: In the absence of BTS new music and tours, the company must make up the difference with individual members’ solo projects and a slate of successful and up-and-coming artists. With only a retrospective album, Proof, and no concert dates since April, BTS will still account for 60-65% of HYBE’s 2023 revenue, Park said during the earnings call. The remaining 35-40% of revenue will come from a growing roster of young artists and Ithaca Holdings, which HYBE acquired in 2021.
In recent years, HYBE has diversified to reduce its reliance on BTS and build a more stable portfolio of companies and artists. Through its nine record labels in Korea, Japan and the U.S., HYBE has built a diversified roster that “helps us avoid a risk of concentrating on a certain country, a certain genre, and allows us to flexibly respond to the changing external situations and trends, thereby reducing the overall business risk,” said CFO Lee Kyung-Joon.
Ithica Holdings added both recorded music catalog (through Big Machine Label Group) and artist management clients (through SB Projects). Its founder, Scooter Braun, is now co-CEO of HYBE America. When asked by an analyst what synergies Ithaca provides more than a year after the merger, Park pointed to the newfound ease and efficiency of launching projects in the U.S. under Braun and co-CEO Lenzo Yoon. Also, Ithaca’s U.S. artists will join HYBE’s WeVerse social media platform in 2023, Park added, and HYBE is pursuing opportunities for the businesses of Ithaca artists Justin Bieber (Drew House) and Ariana Grande (R.E.M. Beauty) in Asia.
In Korea, HYBE’s roster includes such up-and-coming artists as Le Sserafim, released through its Source Music imprint, whose first two albums have surpassed a combined 1 million units sold. NewJeans, released through HYBE’s ADOR imprint, has cumulative sales of 620,000 of its debut, self-titled EP released in August. Outside of Korea, HYBE is taking its model for discovering and developing new artists to the world’s two largest music markets. In Japan, HYBE Labels Japan is prepping the December launch of &Team, a nine-person, multinational boy band. In the U.S., HYBE has a joint venture with Universal Music Group’s Geffen Records and is developing a global girl group.
Hybe’s plan for global growth goes beyond its growing artist roster. A broad strategy termed by Park as “expansion through cooperation across boundaries” includes mergers and acquisitions, joint ventures, equity investments and partnerships. “In order to expand the multi-label strategy, we’re considering various partnerships and investments with labels, catalog companies and talent management companies in overseas markets such as the U.S. and Japan, thereby strengthening our music I.P. portfolio,” Park said. “Through this approach, we except that greater synergies will be created with our superior solutions capability on concerts, merchandising and content to deliver greater results.”
But in the short term, HYBE doesn’t have a quick solution for replacing BTS, and Park warned that declining BTS revenue — namely lost concert revenue — will put pressure on HYBE’s margins in 2023. That should change as groups such as Seventeen and Tomorrow X Together gain popularity and perform in larger venues. Compared to BTS, those artists’ margins are “not very different from the margin of BTS — other than concert revenue,” he said. “Therefore, as these groups continue to grow, I believe that margin will improve accordingly…starting from 2024.”
With HYBE’s share price down 64.9% year to date, mostly due to BTS’s hiatus, the company is considering additional ways to improve shareholder return, including share buybacks and dividends. Park said the company will reveal more about those plans in early 2023.
As part of our annual Indie Now package, we asked notable figures in the independent scene to offer advice on how to succeed in the industry. Below, electronic producer/digital artist Pat Lok talks to Billboard’s Katie Bain.
I was lucky enough to write an NFT clause into an indie single deal of mine back in February 2021, via the Australian label Club Sweat [a subsidiary of Sydney-based record label Sweat It Out]. Verbatim, the contract said, “Licensers shall retain exclusive rights to create and exploit NFTs in connection with license masters.” I actually did exploit that for my Alaska drop, a collaboration with Party Pupils, on [NFT marketplace] Catalog in October 2021.
[These clauses] allow you to be versatile in a way that’s reminiscent of the SoundCloud and Hype Machine era, where the energy was, “Who knows what we’re going to do today?” You can talk to your audience and get them excited about something you’re dropping tomorrow. That’s something labels traditionally shy away from. Often, it’s hard to get even a same-day response from a label because they’re so busy.
The thing to keep in mind is that a lot of NFT collectors are already following artists they like or have found [out about] through the Web3 space, so the marketing of NFTs is really driven by artists doing the legwork. My perspective is to consider the value-add [of a label]. There are a few different scenarios of how they may be involved with an NFT project, but a lot of labels are not even really thinking about it yet because even the majority of artists don’t yet know how to do this. It’s cool if you’re able to say, “We agreed upon 10% for the gross of my share.” That seems super fair, as it’s similar to an agent contract. Meanwhile, the manager/artist split on this stuff is also all over the board, and that should be as important [as a conversation with a label] because the manager is going to be talking to the label side.
These clauses are niche, but very important, and I think the standard is being built deal by deal right now. It’s important we have conversations about NFT clauses so that artists, especially new artists, don’t just give up their NFT projects before knowing what they’re worth. It’s just like with your masters.
This story will appear in the Nov. 5, 2022, issue of Billboard.
Legendary lawyer Don Passman has likened the music biz and its transformation in the digital era to a Rubik’s Cube. It shifts so much that there have now been 10 editions of his industry bible, “All You Need to Know About the Music Business.”
The industry’s challenges, however, did not deter the lay economists at NPR’s Planet Money podcast after they heard an old song called “Inflation.” The funky, moody track with lyrics like “Inflation is in our nation… I can see a depression coming on” was written in 1975 when inflation was at levels slightly higher than today. A cassette tape of the song by Earnest Jackson‘s Sugar Daddy and the Gumbo Roux showed up in Planet Money hosts Sarah Gonzalez and Erika Beras‘ mailbox one day, and they “got a little obsessed” — so obsessed they embarked on an 8-month effort to start a record label and publish the song.
Gonzales and Beras discuss the challenges of creating a label, striking deals with different stakeholders and promoting the never-before-published song over two episodes of the podcast, this week.
Describing their reporting to Billboard, Gonzalez and Beras say that in the course of creating a contract that split revenue between the label and musicians, they came up with what Passman describes as “possibly the worst record deal I’ve ever seen, from a record company point of view.” (Passman was interviewed for the podcast.)
“We are not doing this to make money. We are really doing this because we want to explain the music industry,” Gonzalez says. “It’s just really difficult to make money in this industry, which we all knew. But it’s not until you get into it that you really understand it.”
If a typical deal gives 80% of revenues generated by a song to the record label and 20% to the musicians, Planet Money proposed giving 80% to the musician, namely singer and songwriter Earnest Jackson, and keeping 20% for their label. The hosts felt that was a fair deal given that even if the song was streamed 1 million times, they could only expect to collect around $4,000 total.
After much back-and-forth with Jackson’s old bandmates, which included Journey bassist and American Idol host Randy Jackson and others who went on to successful music careers, they landed on a deal that gives about 67% to Earnest Jackson, 15% to the bandmates and the remainder to the label and others.
Any revenue generated from the song that goes to NPR will go back into producing more shows, Gonzalez and Beras say. They say they do not plan to recoup expenses from publishing and promoting the song, which included at least $10,000 in legal fees.
Once they uploaded the track to TuneCore and started promoting their first, possibly only hit, they learned that “Inflation” had to be streamed 5,000 times in the first week for the label to be able to pay for promotion. Fortunately, the song crested 65,000 plays in its first few days, but it still has some way to go to reach 1 million plays.
“No one ever makes money on streaming,” Beras says, when asked what she learned from her reporting. “I feel like I’ve repeated that a thousand times and never understood what I said.”
“We put all of our effort behind this song and behind Earnest Jackson and are going all in,” Beras says.
Next, they plan to make it a ringtone — which earns a bit more than streams — and they are trying to land it in a Netflix documentary.
Since launching their label last week, Planet Money has received two more submissions from musicians, according to Beras. For now, they are focused on “Inflation” and have no aspirations to “become music moguls,” Beras jokes.
Eminem’s manager is the first to acknowledge that the rapper is not exactly rock n’ roll by definition — but also that he deserves his upcoming spot in the Rock and Roll Hall of Fame.
“In the traditional sense does Marshall [Mathers] do rock n’ roll? Of course not,” says Paul Rosenberg of Goliath Artists, who met Eminem in 1995 at Detroit’s famed Hip Hop Shop and began managing him shortly thereafter. “But I think if you look at what rock n’ roll came from and what hip-hop was created from, they stem from the same musical roots, the same musical tree — but at the same time very different in style, form, culture. If you think about those aspects and just the emotion, and then you combine that with how many rappers there already are in the Rock and Roll Hall of Fame, I would say that he certainly fits.”
Eminem will be part of the Rock Hall’s class of 2022, inducted on Saturday (Nov. 5) at the Microsoft Theater in Los Angeles. He’ll join the other performer inductees that night — Pat Benatar and Neil Giraldo, Duran Duran, Eurythmics, Dolly Parton, Lionel Richie and Carly Simon — and he’ll become part of the Hall’s hip-hop corps that also includes Run-D.M.C. (whom Eminem inducted in 2009), LL Cool J (whom he performed with during last year’s ceremony), The Notorious B.I.G., N.W.A, Public Enemy, Tupac Shakur and Jay-Z.
In doing so, he also becomes part of the ongoing discussion about whether rappers belong in the Rock Hall.
“It’s an odd sort of thing, sure,” the New York-based Rosenberg, who partners with Eminem in the Shady Records label and clothing line and other endeavors, tells Billboard. “It’s something that I think a lot of people are struggling with, especially as time goes on because the face of music has changed a lot, and it continues to evolve. If it were just strictly rock n’ roll by traditional standards I think they would be hard-pressed to find enough people to induct 10, 15, 20 years from now. So I think they have to change with the times and not bend their beliefs but change their way of thinking a bit. I think the fact that they have inducted people like LL and Run-D.M.C. is great. I think (Eminem) would like to see a lot more rappers get recognized in the same fashion.”
Rosenberg — who is careful to state that he does not speak for Eminem — says the two of them first thought about the rapper getting into the Rock Hall back when he inducted Run-D.M.C. “We had thought about it – ‘Wait a minute, eventually this is maybe gonna be you…’,” recalls Rosenberg. But the thought quickly faded. “I didn’t even think about something like this for many years,” he says, “until at some point somebody mentioned to me, ‘Y’know, eligibility for the Rock and Roll Hall of Fame is 25 years after you release your first album.’ This is probably three, four years ago, and I was like, ‘Wait a minute…Oh boy, that’s not too far away.’”
Eminem’s credentials are certainly manifold – five No. 1 Hot 100 hits, 22 top 10 Hot 100 hits, 10 albums that have debuted at No. 1 on the Billboard 200, 15 Grammy Awards, an Academy Award and an Emmy (which means he’s just a Tony Award shy of an EGOT).
To Rosenberg, meanwhile, the Rock Hall induction is “not just one of the trophies in the case — it’s one of the big trophies in the case. It’s a significant milestone. It’s a big part of somebody’s legacy, I think, to get that recognition. And it was like, ‘Oh, wow, this is the first time on the ballot.’ That’s a big honor. When you look back at your resume it’s up there with saying you won an Oscar, that level of recognition.” And without putting words in the rapper’s mouth, Rosenberg does acknowledge that Eminem was not displeased.
“As you know Marshall is an extremely humble guy and he doesn’t love people fawning over him in that way,” explains Rosenberg, who was also CEO of Def Jam Recordings from January 2018 to early 2020 and now heads Goliath Records in joint venture with Universal Music Group. “But like anybody else who works hard at what they do, he appreciates being recognized for it. So he felt good about it. To say what it means to him, you have to hear him when he gets up on stage.”
The induction caps a busy 2022 for Eminem that’s included a Super Bowl LVI halftime performance (which brought him the aforementioned Emmy), collaborations with Snoop Dogg, DJ Khaled, Cordae and CeeLo Green (the latter a Dr. Dre-produced track for the Elvis film soundtrack), a second greatest hits album, Curtain Call 2, and a recently announced 20th anniversary edition of the 8 Mile film soundtrack. “It’s sort of a big, celebratory, legacy year,” Rosenberg notes, “but at the same time Marshall is continuing to be a frontline recording artist. You don’t want to look like you’re always looking back when at the same time you’re trying to create and move forward. It’s a little bit of a difficult balance, and for him it can get a little frustrating. He doesn’t want to seem like he’s done being a current recording music artist, because he very much is. It’s just about figuring out the right way to walk that line.
“If you look back in most recent years, his output has been pretty significant in terms of how many albums he’s released. I don’t think he needs a reason to continue to record. He’s very consumed with the process of creating, and he never really stops recording.”
The Rock and Roll Hall of Fame Induction Ceremony will be simulcast Saturday (Nov. 5) on SiriusXM’s Rock and Roll Hall of Fame Radio channel (310) and on Volume on the SXM App. HBO will film the event to air at 8 p.m. ET on Nov. 18.
Betting big runs in Evan Bogart’s family. His father, the late Casablanca Records founder Neil Bogart, was known in the 1970s for being as extravagant as the acts he worked with, including Donna Summer, The Isley Brothers, Bill Withers and Curtis Mayfield — to name a few. And his penchant for gambling both in the casino and with his label made him one of the disco era’s most successful and outsize businessmen.
The relation between father and son is obvious: Evan has his dad’s face, entrepreneurialism and golden ear. And most recently, the 44-year-old has made a gamble of his own: launching an independent music empire of catalogs and front-line publishing and label acts, Seeker Music.
Certainly, in the last few years, there has been a flurry of high-priced song-catalog acquisitions by music companies and financial institutions. Though Seeker never formally announced its dealings, it has been quietly keeping pace since its founding in 2020, winning big-ticket bids for certain rights in the master and publishing catalogs of Run the Jewels, Ginuwine and Christopher Cross, among others.
As Bogart walks through the beginnings of Seeker’s forthcoming creative campus, consisting of only exposed beams and freshly laid drywall, his excitement is palpable. “I think there’s a wide-open void right now,” he says. “I watched Big Deal, SONGS and Downtown come off the market, and I think there needs to be another great independent. We can do that.”
Bogart’s career in music began when he was in the eighth grade, promoting shows for childhood friends like Adam Levine at the Troubadour in West Hollywood. It was the start of an impressive run in the business, including a stint in the A&R department at Interscope Records when Jimmy Iovine was at the helm, a job at talent agency APA routing West Coast club tours and, in his free time, trying his hand at pop songwriting for a girl group he was putting together. Though the group never panned out, the second song he ever wrote — initially intended for the act — did. It became the Billboard Hot 100 No. 1 “S.O.S.,” a surprise hit for then-newcomer Rihanna in 2006. As Levine puts it, “It’s like he woke up one day and decided to write a smash for Rihanna. People don’t just do that.”
The success of “S.O.S.” was pivotal for Bogart’s creative career — but perhaps more importantly separated his identity from that of his father. “It was the moment when I realized I’m telling my own story now,” he says. Today, his experiences as a songwriter inform his current perspective as CEO. “My rule of thumb is only buy or sign projects I wish I wrote,” he says. “If that’s true, I’m going to treat them like they’re my own songs.”
He applies that same level of care to his management joint venture with Live Nation’s Vector and Boardwalk Music Group (a name he took over from his dad), which has signed acts like songwriter Ricky Reed’s artist project to JV deals with majors. Now a longtime friend of Bogart’s, Reed — who has most notably developed and written with Lizzo — says Bogart was “one of the first executives to believe in me and maybe more importantly, to challenge me.”
Bogart adds that being a recovered addict, after getting clean in his early 20s, has also greatly informed his outlook on the business: He now sponsors artists and others in the industry who are struggling. When Bogart first started attending Alcoholics Anonymous, he recalls being given “commitments” for meetings, like sweeping cigarette butts outside the building or setting up folding chairs. He says this kind of selfless, often unglamorous work was instilled in him at a young age. “ ‘Be of service to others’ was like a motto for AA,” he says. He guides Seeker with the same intent: “How can I be of service to a songwriter I sign or a catalog I acquire?”
Bogart holds the creative control of the catalogs and front-line talent he signs, while Downtown handles administration and M&G, a London-based private equity firm, foots the bill. He became acquainted with M&G in 2019 when former BBC executive and a consultant for the firm, John Smith, asked him to grab coffee. Smith, along with Rich Christina (svp, A&R and venture partners, Warner Chappell Music) and Ruby Marchand (chief awards and industry officer, Recording Academy), were all tapped as consultants for M&G to see if there was an opening for the firm to get into the already crowded music business. After Smith, who is now Seeker Music’s chairman, and Bogart got to know each other, the former wrote a report to M&G executives, explaining that there was in fact space for the financial firm to enter the music business — but only if they were to hire a person with the care and creativity of Bogart.
The Seeker approach more resembles the strategy of a creatively driven music publishing company like Primary Wave than a financial firm looking for a hands-off, long-term investment. “We only buy catalogs we think that, under this ownership, we can do interesting things with,” says Smith. This is part of the reason, Smith adds, that Seeker Music’s strategy is to not bid on the tip-top percentage of catalogs. “I do think there’s a danger that you can pay too much with those,” he says. “Right below that level is where we’re interested.” (The company initially focused on catalogs that sold for less than $5 million but has since moved toward much bigger deals.)
Currently, Seeker’s business is 95% catalog and 5% frontline, a ratio that Bogart says will even out more in the next few years. COVID-19 hampered his original aim for parallel advancement with new talent and catalog deals because he says he “invests with heart before money,” which was hard to do when he was forced to meet with talent over Zoom.
But now, standing in Seeker’s soon-to-be office and studio space, Bogart rattles off some of his dreams for a long future — from hosting summer Friday showcases at the campus to enacting an “open door policy” for any creative in need of a place to work for the day. He knows this is an opportunity to create a musical empire in his own image. His pedigree alone suggests he was predestined for this, and yet it’s the biggest bet Bogart has made so far. He swears that, in good time, it will pay off: “We’re built to play the long game.”
A version of this story will appear in the Nov. 5, 2022, issue of Billboard.
Employees braced for widespread layoffs at Twitter Friday as new owner Elon Musk overhauls the social platform. In a letter to employees obtained by multiple media outlets, the company said employees would find out by 9 a.m. PDT (noon EDT) if they had been laid off. The email did not say how many people would lose their jobs.
Some employees tweeted early Friday that they had already lost access to their work accounts. They and others tweeted messages of support using the hashtag #OneTeam. The email to staff said job reductions were “necessary to ensure the company’s success moving forward.”
Twitter’s roughly 7,500 employees have been expecting layoffs since Musk took the helm of the company. Already, the billionaire Tesla CEO has fired top executives, including CEO Parag Agrawal, on his first day as Twitter’s owner.
He also removed the company’s board of directors and installed himself as the sole board member. On Thursday night, many Twitter employees took to Twitter to express support for each other — often simply tweeting blue heart emojis to signify Twitter’s blue bird logo — and salute emojis in replies to each other.
As of Friday, Musk and Twitter had given no public notice of the coming layoffs, according to a spokesperson for California’s Employment Development Department. That’s even though the Worker Adjustment and Retraining Notification statute requires employers with at least 100 workers to disclose layoffs involving 500 or more employees, regardless of whether a company is publicly traded or privately held.
A class action lawsuit was filed Thursday in federal court in San Francisco on behalf of one employee who was laid off and three others who were locked out of their work accounts. It alleges that Twitter intends to lay off more employees and has violated the law by not providing the required notice.
The layoffs come at a tough time for social media companies, as advertisers are scaling back and newcomers — mainly TikTok — are threatening the older class of social media platforms like Twitter and Facebook.
In a tweet sent Friday while employees were learning if they’d lost their jobs, Musk blamed activists for what he described as a “massive drop in revenue” since he took over Twitter late last week. He did not say how much revenue had dropped.
Big companies including General Motors, General Mills and Audi have all paused ads on Twitter due to questions about how it will operate under Musk. Volkswagen Group said Friday it is recommending its brands, which include Skoda, Seat, Cupra, Audi, Lamborghini, Bentley, Porsche and Ducati, pause paid activities until Twitter issues revised brand safety guidelines.
Musk has tried to appease advertisers, but they remain concerned about whether content moderation will remain as stringent and whether staying on Twitter might tarnish their brands.
“Twitter has had a massive drop in revenue, due to activist groups pressuring advertisers, even though nothing has changed with content moderation and we did everything we could to appease the activists,” he tweeted.
After years of trying to sell his hard-charging sound to Canadian country radio, Cory Marks had finally found his hit song and opening tour slot to propel his career forward in 2020. The year prior he released his first bankable hit, “Outlaws and Outsiders” — an anthemic track produced by his new label boss and collaborator Ivan Moody from Five Finger Death Punch with features from country legend Travis Tritt and rock icon Mick Mars of Mötley Crüe.
The song hit No. 1 on Billboard’s rock chart and helped earn him an opening slot for Canadian country legend Gord Bamford’s 2020 tour.
Then the pandemic hit, and the breakout career of the former Royal Military College hockey player was temporarily put on ice. But after a three-year wait, Marks is returning to the road, opening for a joint headlining tour with 5FDP and country singer Brantley Gilbert.
“I am ready to get out there,” Marks tells Billboard from his home in North Bay, Ontario. “We came out of the COVID-19 lockdown much later than everyone else and now I’m ready to get back out there and perform some of the new music I’ve been working on.”
In August 2020, Marks released his debut album Who I Am, a mix of hard rock and metal with a countrified guitar-style and lyric-play on songs like “Blame it on the Double,” “My Whiskey Your Wine” and “Another Night in Jail.” Marks recorded the album with award-winning producer Kevin Churko in Churko’s Las Vegas studio and the pair will soon be dropping an EP with more rock-oriented tracks, including new single “Burn It Up” on Moody’s label Better Noise Music as a track for BPM’s 2021 film The Retaliators.
Staying busy, Marks said, helped his mental health and kept him balanced – he also got his pilot license during the pandemic and recorded a video at an airbase belonging to the Royal Canadian Air Force for his new song “Flying,” which will be his hardest rock oriented track yet.
“I almost got into some Lamb of God vocals with that track” Marks jokes. “It’s inspired by fighter pilots, which has always been my dream, and the intensity of that type of flying as well as the time spend waiting on the tarmac, sometimes for hours.”
Marks is managed by Jim Cressman. His tour with Five Finger Death Punch and Gilbert opens Nov. 9 at the Van Andel Arena in Grand Rapids, MI. Learn more at CoryMarks.com.
