Business
Page: 95
Warner Records has promoted Robert Santini to senior vp of brand partnerships and ad sync, the company announced Monday (July 1). Santini assumes the role after four years as the label’s vp of brand partnerships & ad sync. Under his previous title, he spearheaded projects including Warner Records’ collaboration with Roblox and the NFL for […]
The Spanish Society of Authors and Publishers (abbreviated SGAE in Spanish) has been fined 6.38 million euros (more than $6.9 million, using the average 2023 conversion rate) by the Comisión Nacional de los Mercados y la Competencia (CNMC) for anti-competitive practices related to its licensing deals with radio and TV stations.
SGAE has been fined for “two infractions of abuse of dominant position” by designing and applying its licensing rates in a manner that forces radio and TV operators to accept an “averaged availability rate” (comparable to a flat rate) to be able to use its repertoire, according to a CNMC press release on Wednesday (June 26).
The widespread application of the flat rate by the Spanish collecting society “has had a double anti-competitive effect,” the CNMC says. The first effect, which the CNMC refers to as “exploitative abuse,” results from SGAE’s practice of forcing licensees to pay the flat rate “unrelated to the actual use they make of their repertoire, both in terms of the number of works and the intensity of their use,” according to the release, which states this practice has been ongoing since “at least” Jan. 1, 2016.
Trending on Billboard
Because licensees are forced to pay the flat rate regardless of the extent of their use of SGAE’s repertoire, the CNMC adds, licensees’ incentives to contract with SGAE competitors with less substantial repertoires are limited — a second anti-competitive effect that hinders “the entry and expansion” of those competitors in the marketplace.
According to the CNMC, SGAE “enhanced” the latter effect — which it says SGAE instituted from “at least” Jan. 1, 2016, through Dec. 31, 2017 — by “presenting its musical repertoire to users as universal and offering guarantees of indemnity against possible claims by third parties for the use of rights that do not belong to its repertoire.” The CNMC argues this further limited incentives for licensees to contract with SGAE competitors.
In addition to fines, SGAE has been ordered to cease these behaviors.
Investigations into SGAE began after complaints were made by audiovisual media copyright entities Management Entity (Dama) and Unison Rights, S.L. (Unison), the release states.
Billboard reached out to SGAE but had not heard back by press time.
Earlier this year, Billboard reported SGAE’s intentions to improve its reputation under new CEO Cristina Perpiñá-Robert, who was appointed a little more than a year ago.
“SGAE is one of the world’s leading CMOs, with a crucial role to play for its members,” Perpiñá-Robert previously said. “This year is our 125th anniversary, which is a chance to celebrate what we’ve achieved but also highlight where we need to reform. I’m determined that SGAE should achieve a greater presence internationally.”
Last year, SGAE took in 349.1 million euros ($377.8 million, based on the 2023 average conversion rate) and distributed 354.1 million euros ($383.2 million), according to its 2023 financial results, while the number of members with authors rights grew from 36,956 to 83,148.
Ye (formerly known as Kanye West) is facing yet another lawsuit. West along with his Yeezy brand and former head of staff Milo Yiannopoulos were sued by eight alleged former employees, who claim they were “subjected to intolerable harassment and discrimination.”
Explore
Explore
See latest videos, charts and news
See latest videos, charts and news
The sprawling lawsuit was filed in district court with the Central District of California on Saturday (June 29) and has been viewed by Billboard. A portion of the plaintiffs claim they were minors as young as 14 years old while working at Yeezy.
Plaintiffs ranging from ages 14 to 25 came from across the United States and other countries such as the United Kingdom, Hungary and Nigeria to work at Yeezy.
Trending on Billboard
However, the plaintiffs said they overworked for “inhuman” hours in a segregated working environment where Black and African employees were separated and given “less favorable” work assignments.
Various plaintiffs were tasked with building Ye’s scrapped YZY Porn venture. Minors claim they were exposed to pornographic images pertaining to the x-rated endeavor.
Around April 27, 2024, one employee alleges that Ye’s wife Bianca Censori shared a link to “hardcore pornography” with them slated to be part of the YZY Porn app.
A plaintiff known in the docs as “John Doe 1” claims he was exposed to pornographic images which were disseminated in group chats as part of the team’s communication channels. Another plaintiff who kept their identity hidden is listed as “John Doe 2” in the lawsuit and claims they were subjected to a “highly inappropriate and distressing work environment.”
“Our team looks forward to achieving justice on behalf of our very deserving clients for theshocking working environment that they were forced to endure,” said Ben Lockyer of LockyerLaw LLC.
Jordanna Thigpen of Thigpen Legal added: “Discrimination is intolerable anywhere, anytime. We believe a jury will agree that these employers must be accountable.”
All eight former Yeezy employees claim they were not paid for their work during their time working for Ye.
The legal activity has been mounting for Ye in recent months. He was hit with a sexual assault lawsuit in June by former assistant Lauren Pisciotta, who claimed she faced a “systematic” onslaught of sexual harassment and was sent graphic text messages from the “Good Life” rapper.
West settled another suit in June related to his Vultures album when he reached an agreement with Donna Summers’ estate to resolve a copyright lawsuit that accused him of interpolating her 1977 hit “I Feel Love” without permission in his song “Good (Don’t Die).”
Billboard has reached out to Ye’s reps for comment.
“I don’t know if there’s ever a perfect time to open something like this,” says Jim Davis with a laugh.
Davis, president of audiophile retailer Music Direct, is standing at the front of the newly unveiled Fidelity Record Pressing, a high-end vinyl pressing plant in Oxnard, Calif. And while he doesn’t believe there can be a “perfect” time to open a new pressing plant, he does believe in the “right” time, adding: “Our niche in this industry is the high-quality end, and there’s always room for someone making a better quality product. So I’d like to think it’s the right time because we have the right people who put this plant together, and that’s going to make all the difference in the world.” Plus, as he admits while scanning the state-of-the-art facility during an invite-only preview, it’s “very encouraging that people wanted to see what’s going on here.”
Davis co-founded Fidelity with the father-and-son team of Rick and Edward Hashimoto; the two have over seven decades of pressing plant experience combined and have emerged as leaders in quality and proficiency. Rick sees Fidelity as an opportunity to bring high-end vinyl back into focus. “I think that commercial records have been kind of pushed out the door [lately], and I think it’s important for the vinyl industry to maintain a high-quality presence,” Rick says.
Fidelity Record Pressing Plant
Courtesy of Fidelity Record Pressing
One way Fidelity’s practices help set its products apart are the burnished edges, which Edward says is an “extra hassle” but well worth the quality. “Whether you realize it or not, [the edges of vinyl are] one of first things people notice,” he says. Another way is through the plant’s record cooling process, in which only five vinyl are stacked on aluminum plates (as seen above) to help preserve disc integrity by drying slowly. Specially designed spindles also run through the center to hold each disc and prevent warping.
Trending on Billboard
But perhaps Fidelity’s biggest differentiator is that the plant presses both vinyl and SuperVinyl, a proprietary compound developed by PVC manufacturer Neotech and Record Technology Inc. (RTI) exclusively for Mobile Fidelity Sound Labs (MoFi). The composition features carbonless dye, resulting in a quieter surface that reduces noise floor and enhances groove definition. (Manufacturing costs for SuperVinyl can be eight times more than regular vinyl.)
After a two-year build, Fidelity officially opened at the start of 2024 as the pressing plant for MoFi; it soon started accepting vinyl orders from outside clients. There are currently six presses (manufactured in Nashville by Record Pressing Machines LLC) that can churn an estimated annual capacity of around 1 million records. Another four presses are on the way (the plant can accommodate a total of 12). As of now, one employee operates up to three machines, with additional employees focusing full-time on quality control, which includes spot listening to every 40-50 records for around 30 minutes.
“If you have a flawed record, you may as well just stream it on Spotify,” says Rick. “But if you have a great sounding record, you’re going to want to play that record over and over and that’s what’s going to keep people coming back to vinyl. It’s got to be great — and I think that’s what we do here.”
Rick and Edward Hashimoto
Courtesy of Fidelity Record Pressing
Tom Petty‘s estate and Warner Chappell Music announced a new worldwide administration deal on Monday (July 1), covering what’s described as the “vast majority of songs” dotting his long and winding catalog, including his decades fronting the Heartbreakers and as a solo tunesmith.
The deal, terms of which were not disclosed, covers dozens of Heartbreakers-backed songs including “Refugee,” “Here Comes My Girl” and “Even the Losers” off the band’s commercial breakthrough, Damn the Torpedoes, along with all-timers like “The Waiting,” “Learning to Fly” and Mary Jane’s Last Dance” off later efforts. (The pact does not include “American Girl” or the band’s first album, Billboard can confirm.)
Petty packed a lot of punch in his solo albums as well, and the estate’s deal with WCM covers hits including “Free Fallin’”, “I Won’t Back Down” and “Run-in’ Down a Dream” off the five-time platinum Full Moon Fever, and “Wildflowers,” “You Don’t Know How It Feels” and others off his three-time platinum Wildflowers release.
Trending on Billboard
The pact also encompasses Petty’s contributions to his pre-Heartbreakers band Mudcrutch and with roots rock supergroup Traveling Wilburys, Billboard has learned. The latter band had a relaxed and collaborative songwriting process, however Petty was main writer on the Wilburys classic “Last Night.”
Petty was only 66 and coming off a 40th anniversary tour when he died in Oct. 2, 2017 of cardiac arrest. Over the course of his 40-year career he released 13 studio albums with his famed band and another three as a solo act, going on to sell over 85 million albums and earning inductions in both the Songwriters Hall of Fame and Rock & Roll Hall of Fame. Along the way he scored hits with fellow icons like Stevie Nicks (“Stop Draggin’ My Heart Around”), earned MusiCares Person of the Year and performed during the Super Bowl. He also dabbled in acting, including a memorable cameo as a future version of himself in Kevin Costner’s The Postman.
The Petty estate praised the new partnership as it looks to “expand the reach” of the singer-songwriter’s expansive catalog and bring in new fans to his work. “This partnership will open the door to new licensing opportunities and serve to introduce his music to a new generation across the globe,” the estate shared. “We’re excited for this new chapter of growth, and the preservation of Tom’s legacy both at home and abroad.”
WCM co-chair and COO, Carianne Marshall, and co-chair and CEO, Guy Moot, added: “Tom Petty’s music is woven into the fabric of our lives, not just across America, but around the world. He captured the full range and resilience of the human spirit in songs about freedom and dreams, outcasts and rebels, relationships and heartbreak, the personal and the universal. Tom’s unmistakable sound and lyrics remain as timeless and vital today as ever, and all of us at Warner Chappell Music are honored to be joining with his estate to help amplify his extraordinary legacy on a global scale.”
The Petty catalog is the latest big get for Warner Chappell following catalog deals in recent years with the estates of Davie Bowie and George Michael, and new stars including Zach Bryan, Morgan Wallen, Dua Lipa and Gerardo Ortiz, among others.
As recently as 2022, Petty’s catalog was administered by Wixen Music Publishing, which went after an Arizona politician for their unauthorized use of his anthem “I Won’t Back Down.”
In June 2022, Jeffery Williams, the rapper professionally known as Young Thug, said from jail: “I always use my music as a form of artistic expression, and I see now that Black artists and rappers don’t have that freedom.”
Explore
Explore
See latest videos, charts and news
See latest videos, charts and news
Rap is the most important musical development of the last half-century. It is a Black art form that reflects, comments upon and helps define the American experience. Like other artistic expressions, rap lyrics are often fictitious and hyperbolic; they cannot be assumed to be autobiographical. And like famous surrealist painters, some rappers combine their experiences with flights of imagination, leaving the audience to decide what is “real” and what is not. Other rappers write wholly fictional accounts without labeling them as such — sometimes for commercial appeal. As Young Thug explained to XXL Magazine in 2016: “I started doing a thuggish style … I started to make cool trap music … Them songs have made millions of dollars but them songs are not me.”
Just like other artists, the creators of rap music are protected by the First Amendment; as such, they are entitled to create ambiguous art that does not separate fact from fiction.
Unlike other types of artists, however, rappers find their art used against them in criminal court, as overly aggressive prosecutors charge rappers with having committed the alleged crimes depicted in their lyrics. It seems the ultimate rap battle is between the First Amendment and the Sixth Amendment — pitting the freedom of expression against the right to a fair trial. The racial injustice of this tactic is obvious. Directors of horror and action movies are not forced to defend themselves in criminal court against allegations that their films depict actual events. Nor must the creators of country or death metal music justify their songs to a judge or jury as fiction — no matter how violent their lyrics may be. Only rappers are singled out in this way.
Hearteningly, the music industry and the social justice community have joined forces with lawmakers in opposition to this egregious prosecutorial overreach. For instance, California amended its rules of evidence to place additional burdens upon prosecutors who seek “to admit as evidence” of criminality “a form of creative expression.” In New York, proposed legislation similarly seeks to create a presumption against admitting evidence of a defendant’s creative expression in criminal trials. And, at the federal level, the Restoring Artistic Protection Act (RAP Act), seeking to shield artists from the misuse of their lyrics in both criminal and civil proceedings, has been reintroduced in Congress. This bill has support from groups such as the Black Music Action Coalition (BMAC), the Recording Academy, the Black Music Collective and SAG-AFTRA. All of these pieces of legislation aim to safeguard artists from prosecutors who want to use their creative expressions as evidence in criminal trials — ensuring rap artists enjoy the benefits of both the First and Sixth Amendments of our Constitution.
While these efforts are commendable, a significant loophole remains within the domain of criminal conspiracy prosecutions. A conspiracy is a crime where two or more people agree to commit an unlawful act, and someone in the conspiracy takes an affirmative step — or “overt act” toward the act. While the actual and proposed California, New York and federal statutes would make it harder for prosecutors to use rap lyrics as evidence of a crime, they do nothing to prevent prosecutors from alleging that rap lyrics themselves are an element of a crime — specifically, the so-called “overt act” element of a conspiracy crime. Additional legislation is urgently needed at the state and federal levels to prevent this from happening.
Conspiracy charges are darlings of prosecutors because many criminal conspiracy statutes permit the government to charge each alleged conspirator with all crimes committed by the conspiracy, so long as the alleged conspirator: (1) knowingly and willfully joined the conspiracy; and (2) committed an “overt act” in support of the conspiracy. Thus, by alleging that a rapper’s lyrics constitute an “overt act,” a prosecutor can seek to hold that rapper criminally responsible for crimes that the rapper did not even commit but rather were committed by other members of the “conspiracy.” In other words, rappers can be charged with and convicted for other people’s crimes merely by virtue of rapping. This prosecutorial tactic is literally criminalizing rap music.
The ongoing Young Thug/YSL trial vividly illustrates the urgent need for legislation banning this tactic. In that case, the prosecution has charged the defendants under a criminal conspiracy statute, Georgia’s Racketeer Influenced and Corrupt Organizations Act (RICO) law. The grand jury indictment characterizes YSL as a gang engaged in criminal activities, with the Grammy-winning artist purportedly at the forefront. To link various defendants to the alleged “conspiracy,” and thus to ensnare them into the defendants’ seats at trial, the prosecution has alleged that specific sets of rap lyrics constitute “overt acts.” On their face, these lyrics are a mode of artistic expression, involving clever wordplay and other forms of humor. Lyrics cited by prosecutors include the following:
“Red just like Elmo but I never f—in’ giggle”— Jeffery “Young Thug” Williams
“Where you from, I’m from Bleveland, throw your set up” — Wunnie “Slimelife Shawty” Lee
“I shot at his mommy, now he no longer mention me” — Jeffery “Young Thug” Williams
Without legislation preventing these or other rap lyrics from being charged as “overt acts,” prosecutors will continue to use them to bolster their cases. We call for the music industry to unite with its allies to press for the introduction and passage of such legislation. Until that happens, the music industry and its allies should press candidates running for district attorney to promise not to prosecute rap lyrics as “overt acts.” Moreover, and until new legislation passes, criminal defense and music industry attorneys should advise their clients about the risks of prosecutions for merely creating rap, however outrageous and unfair that may be. Otherwise, rappers will continue to navigate a precarious line that could see their lyrics construed as a crime, undermining the fundamental principles of artistic freedom and raising urgent questions about racial and creative justice in the courtroom. Rap artists should not have to choose between their First and Sixth Amendment rights.
Jeffrey Movit is a civil litigator in New York and Los Angeles whose practice areas include copyright, trademark, defamation and entertainment law. He has been called the “lawyer to the stars” by the New York Post, and he was named by Billboard magazine as one of the “Top Music Lawyers” for 2022, 2023, and 2024.
Priya Chaudhry is a nationally-known, award-winning criminal defense trial attorney who routinely handles high-profile, high-stakes criminal cases. With nearly 50 jury trials in 25 years of practice, The Hollywood Reporter named Ms. Chaudhry as one of the “25 Power Lawyers” it recognized as “Hollywood’s Troubleshooters.”
Awais Arshad is a criminal defense attorney at ChaudhryLaw, a Fulbright Scholar and barred in multiple jurisdictions, including New York, England & Wales and Pakistan.
Eagles singer Don Henley filed a lawsuit in New York on Friday (June 28) seeking the return of his handwritten notes and song lyrics from the band’s 1976 album Hotel California.
The civil complaint filed in Manhattan federal court comes after prosecutors in March abruptly dropped criminal charges midway through a trial against three collectibles experts accused of scheming to sell the documents.
The Eagles co-founder has maintained the pages were stolen and had vowed to pursue a lawsuit when the criminal case was dropped against rare books dealer Glenn Horowitz, former Rock & Roll Hall of Fame curator Craig Inciardi and rock memorabilia seller Edward Kosinski.
Trending on Billboard
“These 100 pages of personal lyric sheets belong to Mr. Henley and his family, and he has never authorized defendants or anyone else to peddle them for profit,” Daniel Petrocelli, Henley’s lawyer, said in an emailed statement Friday.
According to the lawsuit, the handwritten pages remain in the custody of Manhattan District Attorney Alvin Bragg’s office, which declined to comment Friday on the litigation.
Lawyers for Kosinski and Inciardi dismissed the legal action as baseless, noting the criminal case was dropped after it was determined that Henley misled prosecutors by withholding critical information.
“Don Henley is desperate to rewrite history,” Shawn Crowley, Kosinski’s lawyer, said in an emailed statement. “We look forward to litigating this case and bringing a lawsuit against Henley to hold him accountable for his repeated lies and misuse of the justice system.”
Inciardi’s lawyer, Stacey Richman, said in a separate statement that the lawsuit attempts to “bully” and “perpetuate a false narrative.”
A lawyer for Horowitz, who isn’t named as a defendant as he doesn’t claim ownership of the materials, didn’t respond to an email seeking comment.
During the trial, the men’s lawyers argued that Henley gave the lyrics pages decades ago to a writer who worked on a never-published Eagles biography and later sold the handwritten sheets to Horowitz. He, in turn, sold them to Inciardi and Kosinski, who started putting some of the pages up for auction in 2012.
The criminal case was abruptly dropped after prosecutors agreed that defense lawyers had essentially been blindsided by 6,000 pages of communications involving Henley and his attorneys and associates.
Prosecutors and the defense said they received the material only after Henley and his lawyers made a last-minute decision to waive their attorney-client privilege shielding legal discussions.
Judge Curtis Farber, who presided over the nonjury trial that opened in late February, said witnesses and their lawyers used attorney-client privilege “to obfuscate and hide information that they believed would be damaging” and that prosecutors “were apparently manipulated.”
The federal judge presiding over the Department of Justice’s sweeping antitrust case against Live Nation thinks the trial can begin as early as March 2026, according to recent federal court filings.
Judge Arun Subramanian explained Thursday (June 27) in the case’s first pre-trial hearing that he hoped jury selection could begin that month, although he stopped short of setting a firm date.
One of the first items of business for Subramanian, who was appointed to the federal bench by President Joe Biden in 2023, is to rule on a planned motion by Live Nation to move the case from the Southern District of New York to the federal circuit court in Washington, D.C., where Live Nation’s 2010 merger with Ticketmaster was first approved. Subramanian said he believed his court could properly preside over the case but that he would fully consider the advisement.
Prior to being appointed to the federal bench, Subramanian was a partner at litigation firm Susman Godfrey LLP, which currently represents Live Nation in the 2021 Astroworld festival class action lawsuit. Subramanian did not work on that case.
Trending on Billboard
Government attorneys said in a Tuesday (July 25) filing that they plan to bring additional claims against Live Nation, noting the new claims could include information that attorneys from Live Nation have designated as highly confidential and might ask the courts to seal.
Attorneys for the government “do not believe any of the information at issue merits sealing or overcomes the presumption of public access to judicial documents,” the filings explain, noting that if Live Nation doesn’t budge, the government will ask the judge to rule on the matter.
Department of Justice (DOJ) lawyers also complained that Live Nation attorneys have delayed discovery requests and failed to “fully comply with any of the United States’s three pre-complaint civil investigative demands” dating back to October 2022.
“It took Defendants nearly a year to start producing custodial documents,” the filing reads, noting that “their responses to many specifications remain incomplete today.”
Lawyers for Live Nation called the government’s discovery allegation false, noting that “since October 2022, Defendants have spent over 200,000 attorney hours reviewing documents, produced over 600,000 documents from nearly 70 custodians, produced over 33 million observations of data, submitted dozens of written responses, and provided investigative deposition testimony from three high-level executives in response to Plaintiffs’ investigations. In addition, DOJ has access to nearly two million documents that Defendants produced during prior investigations.”
Attorneys for Live Nation added that they want “any documents, data or testimony Plaintiffs received from third parties during their investigation” no later than July 22, 2024.
Live Nation is also challenging the government’s unusual request for a jury trial instead of having the verdict determined by a judge. “If it occurred, it would be the first jury trial ever in a government-brought monopolization case,” the company’s attorneys wrote.
Outside of Live Nation, the government also says it plans to issue more than 100 third-party subpoenas to “ticketers, promoters, ticket brokers, venues, venue management companies, artists, and artists’ agents and managers.”
Live Nation declined to comment for this story.
Live Nation is being represented by longtime attorney and litigator Timothy L. O’Mara and Alfred C. Pfeiffer, both partners at Latham and Watkins. Pfeiffer is the former co-chair of the firm’s Antitrust & Competition Practice. Ticketmaster is represented by David R. Marriott with Cravath, who successfully represented Illumina against the Federal Trade Commission and secured a 2022 victory for the Louis Dreyfus Company against DOJ efforts to block the sale of Imperial Sugar to U.S. Sugar.
The government is represented by Bonny Sweeney, who joined the DOJ in 2022. Sweeney formerly served as a partner at San Francisco firm Hausfeld where she was co-chair of its U.S. antitrust practice group. In 2023, she was named antitrust lawyer of the year by the California Lawyers Association.
Sphere Entertainment Co. stock gained 5.4% to $35.04 this week after Point72 Asset Management, the hedge fund of Wall Street giant Steve Cohen, took a 5.5% stake in the company, making it one of the best-performing companies on this week’s Billboard Global Music Index.
Cohen is the owner of the New York Mets professional baseball team. Sphere’s sister company, MSG Sports — James Dolan is CEO of both companies — owns two of the city’s major professional sports franchises, the New York Knicks basketball team and the New York Rangers hockey team. The Sphere venue in Las Vegas will host its first sports event Friday evening (June 28): the National Hockey League draft.
Elsewhere, radio companies Cumulus Media and iHeartMedia gained 9.1% and 9.0% this week, respectively, as radio stocks bested other publicly traded music companies on the Billboard Global Music Index. Both Cumulus and iHeartMedia clawed back nearly half of the losses they suffered in the previous two-week period. After dropping 21.1% from June 7 to June 21, Cumulus finished up at $2.04. Similarly, iHeartMedia had lost 21.1% in the prior two weeks and finished this week at $1.09. Townsquare Media, which is not in the Index, rose 9.2% to $10.93, turning its 5% year-to-date loss into a 3.7% gain.
Trending on Billboard
Many radio companies are still having a tough 2024, however, as they slog through a challenging advertising climate. Through June 28, iHeartRadio has fallen 59.2% and Cumulus is down 61.7%.
The Billboard Global Music Index was effectively unchanged from the previous week, rising less than one point to 1,815.54. The index’s year-to-date gain was also unchanged at 18.3%. Most of the stocks showed little movement as 16 of the 20 companies fell within the range of +2.1% to -3.4%. Even though 12 of the companies posted gains, the biggest winners are among the index’s smallest companies, and those winners were overcome by losses suffered by larger companies such as Spotify (down 1.1%), CTS Eventim (down 1.3%) and SiriusXM (down 3.4%).
Streaming stocks had the worst week of any sector after losing an average of 0.4%. The top streamer was Anghami, which rose 0.9% to $1.07. Cloud Music and Deezer each lost less than 1%. LiveOne fell 1.3% to $1.57.
Reservoir Media was the week’s greatest gainer after improving 11.9% — 9.6% on Friday alone — to $7.90. The gain came without major news or analyst commentary. The last analyst to increase a price target on Reservoir was B. Riley on May 31, the day after Reservoir announced that its full-year revenue increased 18% to $145 million.
K-pop companies all had modest increases this week. HYBE gained 1.3% to 202,500 won ($146.60). SM Entertainment, also a Billboard Global Music Index member, rose 1.1% to 80,400 won ($54.21). Elsewhere, JYP Entertainment jumped 2.1% to 57,300 won ($41.48) and YG Entertainment sank 1.0% to 40,300 won ($29.18). All four stocks have fallen sharply in 2024, however, with an average year-to-date decline of 22.6%.
Major stock indexes had mixed results this week. In the United States, the Nasdaq composite rose 0.2% to 17,732.60 and the S&P 500 fell 0.1% to 5,460.48. South Korea’s KOSPI composite index gained 0.5% to 2,797.82. In the United Kingdom, the FTSE 100 dropped 0.9%. China’s Shanghai Composite Index declined 1.0% to 2,967.40.
Another piece of legislation in Washington, D.C., is making its way through Congress that would pay artists and record labels for plays at terrestrial radio. If that sentence sounds familiar, that’s because the issue has long been present on Capitol Hill without managing to win a presidential signature.
In 1988, Frank Sinatra sent a letter to Paul McCartney, Stevie Wonder, Ella Fitzgerald, Bruce Springsteen and about 20 other music luminaries about a decades-old inconsistency in music copyright law. There’s no reason why the writer and publisher should be compensated for radio plays but not the performer, he argued. Sinatra foresaw an expeditious end to his activism. “We are optimistic that with a united effort, we will be able to achieve successful results within a reasonable period of time,” he wrote. But 36 years and numerous legislative attempts later, other artists are still working on the task.
The latest artist to pick up the baton is country icon Randy Travis, who appeared before a House Judiciary subcommittee hearing on Wednesday (June 26) in support of the latest legislation to address the issue, the American Music Fairness Act. Artists helped build radio in the U.S. and should be properly compensated, said Randy’s wife, Mary Travis (Randy has had difficulty speaking since suffering a stroke in 2013). Passing AMFA, she told lawmakers, “would make many old wrongs finally right.”
Trending on Billboard
The safest statement of the afternoon, though, went to Subcommittee chairman Rep. Darrell Issa, who admitted the hearing was “a repeat of some things we’ve seen in the past.” In recent memory, lawmakers have introduced the Performance Right Act in 2007 and 2009; the Free Market Royalty Act in 2013; Fair Play, Fair Pay in 2015 and 2017; the Ask Musicians for Music Act (AM-FM) in 2019; and now the AMFA in 2022 and 2023.
AMFA is like its predecessors in numerous ways: It provides accommodation for small broadcasters that reduce their royalty obligations. It protects the royalties paid to songwriters and music publishers for the performance of musical works on terrestrial radio. Most importantly, the bill codifies a performance right for sound recordings.
But is anything different about AMFA? “The language of the bill hasn’t changed since [the Performance Rights Act in 2009,” says Linda Bloss-Baum, associate director of American University’s business and entertainment program. “And I’d say kind of the appetite on both sides to have a meaningful negotiation hasn’t really changed either.”
The radio industry’s opposition to a new performance right certainly hasn’t changed. “A new performance royalty could spell the end for many local stations,” Curtis LeGeyt, president/CEO of the National Association of Broadcasters, said during Wednesday’s hearing. After surviving an advertising slowdown from the COVID-19 pandemic and facing the rise of streaming platforms, radio stations are arguably in worse financial shape than in years past. “Local broadcasters across this country are operating on extremely tight margins right now,” LeGeyt added.
The AMFA attempts to go easy on small broadcasters while holding regional and national conglomerates to a higher standard. Mike Huppe, president/CEO of SoundExchange, believes bill makes better accommodations for small broadcasters than its predecessors. Under the AMFA, stations that earn less than $1.5 million in annual revenue (and whose parent companies make less than $10 million in annual revenue) would pay $500 annually. Small, non-commercial stations with annual revenue of less than $100,000 would pay as little as $10 per year. “In that sense,” says Huppe, “this is the best bill for small broadcasters that there’s ever been.”
Unlike previous bills, the AMFA also includes language that says the Copyright Royalty Board, which would set royalty rates payable by stations, could take the promotional value of radio play, and the fact that stations currently pay sound recording royalties for streaming on their digital platforms, when setting rates. But that’s unnecessary, says David Oxenford, partner at Wilkinson Barker Knauer. “The section of the Copyright Act that deals with royalties that are payable to SoundExchange already has this part of the consideration” in determining how royalty rates are set, he says.
The main differences between the AMFA and its predecessors might not be found in the actual language of the bill. Market conditions have changed. At Wednesday’s hearing, lawmakers seemed more impatient and fed up than in years past.
In his closing remarks, Issa used his bully pulpit to warn broadcasters that Congressional intervention would be more painful than a negotiated deal with record labels. “I will tell you that at least this chair and the ranking member of the full committee, we stand ready to negotiate fairly small amounts to change a principle to get this behind us,” Issa said to LeGeyt. “And if you don’t take that, [then] quite frankly you have to live with the consequences.”
Issa’s tone suggests the climate in Washington, D.C., has changed. Huppe believes streaming and AI have made people more aware of the “inequities” facing creators. Issa is among the subcommittee members to have sponsored legislation to protect intellectual property from the threat of generative AI. Rep. Adam Schiff, another subcommittee member, was one of a trio of lawmakers to send a letter to the Registrar of the U.S. Copyright Office out of concern that Spotify’s decision to take a discounted mechanical royalty rate for its music-audiobook bundle was not in the spirit of the Music Modernization Act.
What’s more, radio could get a big boost from the AM Radio in Every Vehicle Act, which would mandate all automobiles manufactured in the U.S. to have AM radio. The bill would mandate technology that benefits radio broadcasters; FM stations, too, would presumably be included in in-dash stereos. Logically, at least, that could strengthen artists’ and labels’ argument.
“We’re not necessarily against the [AM Radio in Every Vehicle Act],” says Huppe, “but we would say, how can you possibly do that and not fix [the performance right] at the same time?”