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Universal Music Group opened up about how the company plans to keep growing in amid an evolving streaming landscape on Tuesday at the company’s capital markets day. Held in the storied Abbey Road studios in London, UMG’s c-suite and various executives from Republic, Interscope, Virgin Music Group and more described how they build a world around superstars like Taylor Swift, The Weeknd and Olivia Rodrigo, and how they’ve launched new acts like the Afrobeats star Rema.
The crowd of mostly financial industry analysts and investors also got an overview of the collectibles UMG hopes superfans will open their wallets for, its talks with Spotify about higher-priced premium subscription plans, and it’s new strategy to keep streaming revenues growing by an 8-10% compound average growth rate until fiscal year 2028.
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Streaming 2.0
Despite industry reports that new streaming subscribers are hard to find in developed markets and that streaming growth rates in smaller music markets like Brazil, Italy and Germany are besting major markets like the U.S., UMG Chairman and Chief Executive Officer Lucian Grainge gave an overview of UMG’s new strategy — dubbed Streaming 2.0 — to get more revenue out of streaming.
“The addressable market — in both established markets and fast-growing high potential music markets — is massive,” Grainge said, referring to streaming subscriptions. “We expect more than a billion subscribers by the end of the decade, and we constantly ask ourselves, ‘How long could it take us to get to 2 billion?’”
“While streaming has delivered robust growth to UMG for over a decade, Streaming 2.0 will deliver a new age of innovation, consumer segmentation, geographic expansion and greater value through both subscriber and [average revenue per user] growth,” Grainge said.
The strategy relies in part on increasing the number of streaming subscriptions in developing markets where UMG says subscribers meaningfully contribute to monthly trade average revenue per user. Less than half of people in established markets have streaming subscriptions, with less than 25% of the population in Japan holding subscriptions, UMG chief financial officer Boyd Muir said.
UMG said it also expects a new wave of subscribers in these markets to come from a second cohort of older listeners starting up subscriptions and younger, digitally native music fans getting older and spending more on their streaming subscriptions. They also expect to target audiobook listeners and satellite radio subscribers for music streaming subscriptions.
Super premium streaming subscriptions
UMG’s Streaming 2.0 strategy also relies on innovation in streaming, possibly like the development of high definition streaming plans like the one Spotify‘sDanielEk hinted in June is on the horizon. Ek said that “delux” subscription could cost around $17-$18 per month for a single account.
UMG is in advanced talks to partner with Spotify on the development of that higher-priced subscription plan, Muir said Tuesday. During his presentation, UMG chief digital officer Michael Nash compared it to “another exciting” example of higher priced subscription plans — Tencent Music Entertainment’s super VIP tier, which costs five times as much as the standard tier.
Muir said “a double digit percentage” of TME’s subscriber base signed up for the super VIP plan. UMG’s own research tells it that 23% of current streaming subscribers would pay more for a “better music experience.”
Monetizing superfans
UMG execs spoke admiringly of the good old days when superfans lined up outside stores to spend gobs of money on Michael Jackson and Shania Twain CDs. The reason why? Devotees of artists in prior decades spent more per capita on music, merchandise, concert tickets and collectibles than streaming-era fans.
“Superfans, the most avid 20-30% of all music listeners, once drove over 70% of recorded music spending,” Muir said. “Streaming monetizes them, but not nearly as well in the past. This is an enormous opportunity. We are seeing dramatic growth in revenues that are complimentary to spending.”
He was referring to premium music — vinyl, collectible CDs and cassettes — and merchandise collectibles. UMG has seen its revenues from products sold directly to consumers through some 1,300 odd online stores grow at a 33% compound annual growth rate in recent years.
When something like a $55-Olivia Rodrigo Stanley Cup gets sold, UMG collects as much information as it can, and the purchaser becomes one of the 100 million fans in what Muir referred to as “our owned audience.”
Kaz Kobayashi is stepping down as president and CEO of Warner Music Japan after a decade in the role, the company announced on Wednesday (Sept. 18). His successor will be announced soon, and he is currently working with Dr. Kenji Kitatani, the newly appointed chairman of Warner Music Japan, on a transition plan. Kobayashi, who […]
Townsend Music, a U.K.-based distributor and direct-to-consumer retailer, has been acquired by Artone, a Dutch business with a portfolio of companies that caters to the physical music marketplace. Terms of the deal were not disclosed.
Townsend Music founder Steve Bamber called the acquisition “a clear opportunity to push its European expansion strategy forward quickly, with Artone’s well established sales, distribution and manufacturing facilities already in place.”
Artone can quickly scale up and meets its goal of becoming a global D2C company, according to sales director Bruce McKenzie. “Artone’s suite of services from vinyl manufacturing, EU physical distribution, and label services gives us perfect synergy to offer both our D2C clients and super-fan customers a super charged service,” he said in a statement.
Artone was formed in 2022 from the merger of Bertus Distribution and Record Industry, a vinyl pressing plant based in Haarlem, Netherlands. The portfolio of companies also includes Sound Factory, which provides artists and labels with solutions to sell exclusive content directly to consumers; two labels that release music in physical formats, Music on Vinyl and Music on CD; and V2 Benelux, which provides label services in the Netherlands, Belgium, France and Germany.
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“The acquisition is another welcome step for Artone’s continued expansion of its service portfolio and gives us presence in the UK market,” CEO Jan Willem Kaasschieter said in a statement. “This acquisition strengthens our position as a global leader in physical music distribution. We’re excited about the opportunities this will bring and look forward to driving the future of physical music together, developing further global reach and innovative solutions for the benefit of the music industry.”
Physical music sales continue to show strong growth as streaming takes a larger portion of the global market. In the United Kingdom, vinyl sales grew 13.5% and CD sales improved 3.2% in the first half of 2024, according to the Entertainment Retailers’ Association.
With vinyl sales continuing to rise and streaming growth slowing, the music industry is putting increased focused on reaching “superfans” willing to pay more for premium experiences and tangible products. The unmet opportunity to monetize superfans was a key talking point in Universal Music Group’s Capital Markets Day presentation on Tuesday (Sept. 17). “We’re creating and monetizing new ways to meet the superfans pent up demand for products, experiences and access that brings them closer to the music and to the artists that they love,” said CEO Lucian Grainge.
Warner Music Group CEO Robert Kyncl has also made superfans a priority during his tenure. “One of the most important things is to figure out a direct relationship with the most valuable fans,” Kyncl said at the Morgan Stanley Technology, Media and Telecom Conference on March 6. “Because it’s not only important to monetization and new revenue stream, but it’s also important to launching new music, which is the core of what we do.”
Effectively reaching superfans could be a lucrative endeavor for record labels. In its latest “Music in the Air” report, Goldman Sachs analysts put the global superfan addressable market at $4.5 billion—nearly 16% of the $28.6 billion recorded music market in 2023, according to the IFPI. Much of that revenue could come from music subscription services’ high-priced, high-value offerings that go beyond the current premium subscription tier.
Physical goods are a proven way to connect with superfans. Market research firm MusicWatch found that 20% of U.S. music fans are superfans for their favorite artists who go to concerts, buy merchandise and albums and would be wiling to spend more for VIP experiences from the artist. At the same time, more superfan sales are coming from the types of direct-to-consumer stores offered by Townsend. In the first half of 2023, U.S. direct-to-consumer sales tracked by Luminate increased 20% year-over-year.
A New York federal judge denied bail to Sean “Diddy” Combs at an arraignment hearing on Tuesday (Sept. 17), leaving the once-powerful rapper and music executive behind bars as he awaits trial on sweeping allegations of sexual abuse.
The charges, unsealed earlier on Tuesday, accuse Combs of running a decades-long racketeering conspiracy that included sex trafficking, forced labor, kidnapping, arson and bribery. If convicted on all the charges, he potentially faces a sentence of life in prison.
At an initial hearing Tuesday in front of a packed Manhattan courtroom, Combs formally pleaded not guilty to each of the three charges he’s facing. His attorneys also requested that he be released on a $50 million bond, saying he’d surrender his passport and submit to constant monitoring.
But according to the Associated Press, Magistrate Judge Robyn F. Tarnofsky ultimately sided with prosecutors, who had warned that the billionaire executive still posed a flight risk and might intimidate witnesses if released. She ruled that Combs attorneys had not overcome the “presumption” that defendants in such serious cases should remain behind bars.
Combs, also known as Puff Daddy and P. Diddy, was once one of the most powerful men in the music industry. But he’s faced a flood of civil lawsuits in recent months over allegations of sexual abuse, starting with a high-profile case last year from his former longtime girlfriend Cassie Ventura. That lawsuit quickly settled, but it was later corroborated by a widely shared video of Combs assaulting Ventura at a hotel.
In Tuesday’s indictment, prosecutors accused Combs of running a sprawling criminal operation aimed at satisfying his need for “sexual gratification.” The charges detailed “freak offs” in which Combs and others would allegedly ply victims with drugs and then coerce them into having sex with male sex workers, as well as alleged acts of violence and intimidation to keep victims silent.
“For decades, Sean Combs … abused, threatened and coerced women and others around him to fulfill his sexual desires, protect his reputation and conceal his conduct,” prosecutors wrote in the indictment. “To do so, Combs relied on the employees, resources and the influence of his multi-faceted business empire that he led and controlled.”
Ahead of Tuesday’s hearing, both sides submitted detailed arguments to the judge on whether Combs should be detained until his jury trial, which could still be months away.
Combs’ defense lawyers said he was “eminently trustworthy” and had demonstrated “extraordinary” cooperation by flying to New York to allow himself to be arrested on Monday. They offered to post a $50 million bond, submit to house arrest with GPS monitoring, and even to sell his private jet.
“Sean Combs has never evaded, avoided, eluded or run from a challenge in his life,” his lawyers wrote. “He will not start now. As he has handled every hardship, he will meet this case head-on, he will work hard to defend himself, and he will prevail.”
But prosecutors argued back that Combs was a “serial abuser” who had a history of both violence and witness intimidation, raising the prospect that he might attempt to obstruct the case against him. They also said that he still posed a flight risk even under his proposed conditions, citing his “seemingly limitless resources” and the looming threat of a lifetime prison sentence.
“In short, if the defendant wanted to flee, he has the money, manpower, and tools to do so quickly and without detection,” prosecutors wrote. “The defendant’s lack of access to his passport or private jet would not negate the fact that the defendant could easily buy his way out of facing justice.”
Following Tuesday’s hearing before a magistrate judge, Combs is set for an initial pretrial conference next week before Judge Andrew L. Carter, Jr., the federal district judge who will oversee the trial.
Ticketing company Lyte appears to have gone out of business, shutting down its website, laying off its staff and leaving a number of concert promoters unpaid for hundreds of thousands of dollars’ worth of tickets sold on the platform.
Lyte founder and chief executive Ant Taylor has resigned from the company, according to multiple sources, with an emergency board/creditors effort underway to try to identify a potential buyer that could repay the fans and promoters affected by shutdown, which one source said felt akin to being “ghosted.” Currently, the company’s website is offline and has been for days, having been replaced by an image that says “Be Back Soon,” with smaller text reading, “Our website is currently undergoing scheduled maintenance. We should be back shortly.”
Having launched the company in 2014, Taylor raised about $53 million in four major funding rounds, with his biggest investors believed to be Chamath Palihapitiya from Silicon Valley VC Social Capital and New York hedge fund manager Joseph Edelman. Neither Taylor nor representatives for Lyte responded to requests for comment.
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Lyte billed itself as a fan-to-fan ticket exchange where fans could list tickets to events they couldn’t attend and ethically resell those tickets to other fans wanting to attend a concert. But Lyte’s own clients say the company’s business model had changed and that the company helped promoters scalp their high-end tickets and VIP festival tickets — quietly splitting the profits with event organizers.
It wasn’t uncommon for a major indie festival promoter to have several hundred thousand dollars’ worth of ticketing inventory listed on the Lyte system, explained one attorney representing potentially more than a $1 million in cumulative claims against Lyte. High profile clients for Lyte included Baja Beach festival, the Lost Lands festival in Ohio, Pitchfork Music Festival and Newport Folk Festival, although it’s unclear which events are owed money by Lyte.
A worse fate potentially awaits clients who signed up for Lyte’s primary ticketing platform. As recently as Sept. 9 the Lyte blog was announcing new clients for that initiative, including Digilogue Days, an October event in Brooklyn that billed itself as a meeting point for “music executives, artists, creatives, students and aspiring professionals with the tools and knowledge to shape the future of the music industry.” Today, Digilogue Days’ ticketing page has the same “be back soon” message that has come to replace nearly all of Lyte’s known web footprint.
The worst-case scenario for any primary ticketing clients would be if Lyte went out of business without paying its clients any of the revenue from tickets it had sold on their behalf. For small event organizers, that could equal nearly all of an event’s revenue.
If Lyte has to file for insolvency protection, it would fall into the hands of a bankruptcy trustee to sort through the details. But attorneys for several festival clients are hoping to pull their clients’ money out of the venture before it goes into administration.
“It would be totally unacceptable if any of my clients’ money was co-mingled with Lyte’s operational funds,” said one attorney who did not wish to speak on the record. “If that happened, the board of directors will be forced to account for those funds, even if that means piercing the corporate veil and going after their ability to raise money.”
Warner Music Latina has inked an exclusive partnership with Street Mob Records, the indie label founded by Fuerza Regida’s frontman Jesús Ortiz Paz (a.k.a. JOP).
Through the alliance, Street Mob Records’ artists Armenta, Clave Especial and Calle 24 will join the Warner Music Latina roster to “elevate these trailblazing acts to global stardom, while accelerating the evolution of Mexican and Latin music, ensuring its lasting impact,” according to a press release.
“Partnering with Warner Music is a powerful validation of what we’ve been building at Street Mob Records,” Ortiz Paz said in a statement. “It’s a testament to our artists, our team, and the culture we represent. We’re not just signing a deal; we’re creating a legacy that will inspire future generations of artists and entrepreneurs.”
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The Mexican-American hitmaker launched the West Coast-based Street Mob Records in 2018, which has served as an incubator of new regional Mexican music talent, and the three acts that are part of the deal represent some of Street Mob’s most promising talent.
Calle 24, led by Diego Millán from Chihuahua, Mexico is known for songs like “Qué Onda” in collaboration with Fuerza Regida and Chino Pacas, as well as “Apaga El Cel” and “Juré Venganza.” Hailing from Salinas, Calif., Clave Especial stands out for the group’s unique blend of traditional and modern sounds in songs like “Rápido Soy” and “No Son Doritos.” Meanwhile, Armenta from Sinaloa, Mexico, is a renowned producer and songwriter who has contributed to hits by Fuerza Regida like “Bebe Dame,” “Ch y la Pizza” and “Harley Quinn.”
“This collaboration with Street Mob Records is a monumental step forward in our mission to strengthen our Música Mexicana Division,” added Roberto Andrade Dirak, managing director of Warner Music Latina. “Street Mob Records has proven to be a key player in this vibrant industry, and we are excited to amplify the voices of their incredible artists on a global scale.”
“We are proud to welcome them to the Warner Music family and are committed to providing the support and resources they need to reach new heights,” said Tomás Rodríguez, president of Warner Music México & Mexican music.
Street Mob Records was represented in the deal by Walter Mosley of Mosley & Associates.
Jesús Ortiz Paz is set speak at the 35th anniversary Billboard Latin Music Week, which will feature exclusive panels, conversations and performances by Latin music’s biggest stars. Tickets are available now at BillboardLatinMusicWeek.com.
Years after Dave Petrelli worked in the Nashville music business, he experienced a moment in the city’s Shelby Park that eclipsed any expectations he had had for his career.
A former peermusic creative assistant and Nashville Songwriters Association International director of events, Petrelli purposely segued into music education, and one step in the journey included teaching general education to fourth graders. Drawing on his innate skills, he frequently rewrote existing songs to teach students, and when a full solar eclipse occurred in the city in 2017, Petrelli prepared his classes by reworking the Bonnie Tyler/Celine Dion hit “Total Eclipse of the Heart” as “Total Eclipse of the Sun.”
When the big day arrived, Petrelli and his wife, songwriter Victoria Banks (“Come On Over,” “Saints & Angels”), joined thousands in the park to watch the afternoon sky turn dark. Around a dozen kids saw “Mr. Petrelli” and ran to him to sing “Total Eclipse of the Sun.”
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“I didn’t even expect this to be a moment,” he says now, “and it was a moment.”
Petrelli is one of 30 instructors from eight states who will have another personal moment tonight (Sept. 17) when the Country Music Association recognizes them as CMA Music Teachers of Excellence at the Country Music Hall of Fame and Museum. CMA has turned music education into a mission, funneling revenue from the annual CMA Fest into programs that are vital to the development of future generations.
The program is so appreciated that the teacher awards will be attended by as many artists as instructors, including Walker Hayes, Jordan Davis, Riley Green, Terri Clark and Gretchen Wilson.
The teaching jobs may not be as glamorous as the touring gigs those artists pursue, but they’re “way more important,” CMA senior vp of industry relations Tiffany Kerns says. “We have the best gigs in the world, don’t get me wrong. But by far, what they do is way more impressive. And I mean, talk about having deep impact in communities.”
That impact is far-reaching. Music develops collaboration skills, learning to play an instrument builds discipline, and studying music rewires the brain, strengthening the connectivity between different cortexes and providing more paths for thoughts to follow. Schools with music education, according to Kerns, have lower rates of absenteeism. And since music teachers typically spend more one-on-one time with individual students as they learn their instruments, they are often the instructors whom students feel most comfortable with in revealing hunger or mental health issues.
In Petrelli’s case, students likely relate to him in part because he’s one of them in spirit. Growing up in Connecticut, his mother — who taught Spanish — died when he was 10, and he had to take care of himself sooner than his peers.
“I grew up too fast, and because of that, there’s still a lot of kid in me,” he says.
Petrelli leaned toward music early, and after graduating from Boston College, he taught the subject at a private Catholic elementary school for a year. He subsequently earned a songwriting degree at the Berklee College of Music, then moved to Nashville and worked his way into the music community. Once they got married, he and Banks decided at least one of them should have a job with greater security, and he shifted into education.
The “Total Eclipse of the Sun” moment grew out of his approach, which mixes music with other parts of the school’s curriculum. A few years ago, when Lockeland Elementary was operating under the schoolwide theme “Lockeland is out of this world,” he would have classes explore the details in songs with galactic lyrics — such as David Bowie‘s “Space Oddity,” Europe‘s”The Final Countdown” or Elton John‘s “Rocket Man” — to better understand space and enhance the school experience.
“What I have found is that that gets the kids really, really, really interested in what they’re going to learn today,” Petrelli says. “My lesson springboards off that.”
Other courses, such as math or science, have more cut-and-dried material — two plus two will always equal four — and Kerns suggests that those classes feel more “black and white” to students.
“When you walk into that music room, I really believe that Dave’s students immediately feel and see color,” she says. “There is something that is so vibrant about his personality and the way that he teaches, and that’s a gift.”
The CMA doesn’t restrict its Teachers of Excellence awards to instructors who use country music in their classes. Pop, jazz, R&B and mariachi have all been used extensively by various honorees, though Petrelli does, in fact, incorporate country in his work, with songs by Garth Brooks, Dolly Parton, Waylon Jennings and Shania Twain among the material he has used.
“The storytelling aspect is huge,” he says.
While teaching music may not be as glamorous as the careers of the artists that Petrelli’s classes draw from, it still scratches his own artistic itch.
“I teach six classes a day, and it’s six one-hour performances,” he says. “It is a song-and-dance show for one hour, six times in a row. I’ve worked physically demanding jobs, mentally demanding jobs. I have never been as exhausted at the end of a day as when I come home from a particularly hard day of teaching.”
It’s usually a thankless job, though the Teachers of Excellence event extends a bit of appreciation. And the students do provide feedback, whether they know it or not, at moments like the 2017 eclipse. At times like that, Petrelli is reminded that the job really is an opportunity to inspire the next generation, even if it looks a little different than what he originally envisioned.
“I always dreamed of girls screaming my name,” Petrelli says. “I didn’t think they’d be 9 years old and waving in their car, [yelling], ‘Mr. Petrelli!’”
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Afrobeats producer Thisizlondon has signed with Love Renaissance (LVRN), Billboard can exclusively announce on Tuesday (Sept. 17). Thisizlondon, formerly known as LONDON (real name Michael Hunter), has produced some of the biggest Afrobeats records in recent history, from Ayra Starr‘s “Bloody Samaritan” to Rema‘s Billboard Hot 100 No. 3 smash “Calm Down.” He’s also contributed […]
Warner Music Korea introduced MPLIFY, a new label designed to support Korean artists with global reach, focusing on English-language music to connect with international audiences. Samuel Ku, an executive producer at WMK, has been tasked with leading the label. The first artist signed to MPLIFY is Olivia Marsh, a Korean-Australian singer-songwriter who is set to release her debut single on all major digital platforms in October. Olivia’s sound blends pop and R&B, influenced by a wide range of artists including ABBA, John Denver, Tame Impala, and Vera Blue. A graduate of the University of Melbourne in Interactive Composition, she has worked with K-pop producers and songwriters to refine her craft. “I am delighted to sign with MPLIFY and to work with such a warm, passionate and innovative team,” Marsh said. –Marc Schneider
Big Loud Records and its Canada-based, Dallas Smith-founded imprint Local Hay Records have signed country artist Hailey Benedict. Benedict has also inked a global publishing deal with Big Loud Publishing/Local Hay. This summer, Benedict performed on the main stage at Alberta’s Big Valley Jamboree, and she’s nominated at the Canadian Country Music Awards for breakthrough artist or group of the year. –Jessica Nicholson
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Anniegee Marketing launched its artist management division, Anniegee Management, and inked a co-management deal with MUN Entertainment for Juliana Velasquez’s career development in the U.S., Puerto Rico and the Dominican Republic. Founded by seasoned music industry professional Annie Gonzalez after working as senior director, global marketing at Sony Music Entertainment for over 20 years, Anniegee Marketing and Communications has developed communication strategies in the U.S. for global stars including Shakira, Gloria Estefan, Alejandro Fernández, and many more. Through its new deal with rising Colombian artist Juliana, Anniegee now branches out into artist management, while still offering its marketing and PR consulting services. In her new role, Annie Gonzalez will co-manage Juliana alongside current manager Juancho Muñoz of MUN Entertainment. –Sigal Ratner-Arias
LA-based producer and songwriter Stryv (Hamid Bashir) signed with WME across all areas. Known for his work with artists like Kanye West, Ty Dolla $ign, Jason Derulo, Galantis, and Rita Ora, Stryv recently launched his own artist project. His debut single, “Move,” a collaboration with Adam Port, gained attention after being teased at Keinemusik shows worldwide. Since its official release in June, “Move” has earned over 200 million streams on Spotify, topped the Beatport Top 100 chart, and positioned Stryv as one of the platform’s fastest-growing artists. A follow-up single is set for release later this year. Stryv also forms half of the DJ duo ORSO, alongside Twitch co-founder Justin Kan, further expanding his influence in the electronic music scene. –M.S.
Boutique music publishing company MV2 Entertainment and independent label New Lost City Records have signed singer-songwriter True Youngblood, a Georgia native and Belmont University student, who just released his debut single, “If I Were a Cowboy.” Youngblood joins MV2’s roster of writers, which includes Josh Thompson (“Wasted on You,” “Drowns The Whiskey”), Forrest Finn, Grant Vogel, Johnny McGuire and Blake Henderson. The New Lost City roster includes Youngblood, Henderson and McGuire. –J.N.
Universal Music Group partnered with acclaimed Indian composer and three-time Grammy winner Ricky Kej to launch Vedam Records, a new label dedicating to bringing authentic wellness music from India to a global audience. In his first collaboration with Vedam, Kej has released Break Of Dawn, his latest studio album. “Vedam Records presents an opportunity to compose music that is therapeutic and necessary – now, more than ever,” Kej said. -M.S.
Federal prosecutors on Tuesday (Sept. 17) unsealed a criminal indictment of Sean “Diddy” Combs over sweeping allegations of sexual abuse, accusing the once-powerful rapper of running a racketeering conspiracy that included sex trafficking, forced labor, kidnapping, arson and bribery.
Less than a day after the rapper was arrested Monday in New York City, Manhattan federal prosecutors unveiled the substance of their case against Combs – accusing him of operating a criminal enterprise centered on his “pervasive pattern of abuse toward women.”
“For decades, Sean Combs … abused, threatened and coerced women and others around him to fulfill his sexual desires, protect his reputation and conceal his conduct,” reads the indictment, which was obtained by Billboard. “To do so, Combs relied on the employees, resources and the influence of his multi-faceted business empire that he led and controlled.”
At a press conference announcing the indictment on Tuesday, U.S. Attorney Damian Williams warned that his office would target “anyone who engages in sex trafficking, no matter how powerful or wealthy or famous” they are. “A year ago, Sean Combs stood in Times Square and was handed a key to New York City,” Williams said. “Today, he’s been indicted and will face justice.”
Combs, 54, is expected to be arraigned later on Tuesday at a Manhattan federal courthouse. At the press conference, Williams said prosecutors would asked the judge to deny release on bail and keep Combs in jail until trial.
A spokesperson for Combs did not immediately return a request for comment on the unsealed indictment. In an earlier statement following his arrest, his attorney Marc Agnifilo said he and his client were “disappointed” the “unjust prosecution” he was facing.
“He is an imperfect person but he is not a criminal,” Agnifilo said. “To his credit Mr. Combs has been nothing but cooperative with this investigation and he voluntarily relocated to New York last week in anticipation of these charges. Please reserve your judgment until you have all the facts. These are the acts of an innocent man with nothing to hide, and he looks forward to clearing his name in court.”
The charges against Combs come after a flood of civil lawsuits in which at least eight victims have sued him over allegations of sexual abuse, starting with a high-profile case filed last year by his longtime girlfriend Cassie Ventura. That case quickly settled, but it was later corroborated by a widely-shared video of Combs assaulting her at a hotel.
Criminal charges against Combs were not unexpected. Federal agents carried out raids in March on his homes in Los Angeles and Miami, and multiple news outlets had reported that he was facing an ongoing investigation that included potential allegations of sex trafficking.
In Tuesday’s unsealed indictment, prosecutors allege that Combs violated the federal Racketeer Influenced and Corrupt Organizations Act – a law known as RICO that’s often used to target mobsters and drug cartels. Over 14 pages of details, the government claims Combs operated a similar criminal racket from 2008 onward, but one centered “fulfilling the personal desires of Combs, particularly those related to sexual gratification.”
“Combs … used the Combs business, including certain employees, to carry out, facilitate, and cover up his abuse and commercial sex,” prosecutors write.
Much of the case centers on events that Combs allegedly called “freak offs,” which prosecutors describe as “elaborate and produced sex performances” between victims and male sex workers during which Combs would masturbate. They allege Combs and his associates “wielded the power and prestige” of his fame to “intimidate, threaten and lure female victims” into his orbit, then used “force, threats of force, and coercion” to get them to participate.
During the freak offs, prosecutors claim Combs and others kept victims “obedient and compliant” by providing them with drugs, then subjected them to “physical, emotional and verbal abuse,” including hitting and kicking them, threatening career repercussions, and blackmailing them with footage.
“Victims believed they could not refuse Combs demands without risking their financial or job security,” prosecutors write. “Combs also used the sensitive, embarrassing, and incriminating recordings that he made during freak offs as collateral to ensure the continued obedience and silence of victims.”
When faced with the risk that someone would expose his conduct, Combs and others used similar tactics to keep witnesses and victims silent, prosecutors say, including bribery, kidnapping and arson. The indictment says members of the organization carried firearms, and that “Combs himself carried or brandished firearms to intimidate and threaten others.”
In addition to the RICO allegations, the indictment also accuses Combs of federal sex-trafficking laws and a federal statute barring the transportation of sex workers. The indictment does not make clear how many alleged victims were impacted, and Williams declined to offer more details on Tuesday.
Though Tuesday’s indictment makes repeated mention of other members of Combs’ organization, the rapper himself is the only person currently facing charges. But at Tuesday’s press conference, Williams warned that could change.
“We are not done,” Williams said. “This investigation is ongoing, and I encourage anyone with information about this case to come forward and to do it quickly.”