Distribution
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Universal Music Group (UMG) has expanded its relationship with HYBE to include the exclusive digital and physical distribution rights to the company’s artists for the next 10 years. UMG will also continue to collaborate with HYBE’s Weverse to onboard more UMG signees to the superfan platform.
Scooter Braun, CEO of HYBE America, will take on new responsibilities with the new agreement. The SB Projects founder and former manager to Ariana Grande, Demi Lovato and J Balvin will now oversee all promotional and marketing collaborations between HYBE and UMG in North America.
Notably, this exclusive distribution deal does not include social media sites YouTube, Meta and TikTok, allowing HYBE artists to remain on the short-form video app despite UMG’s current licensing feud with TikTok.
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The announcement builds upon the already established relationship between HYBE and UMG which started in 2017 with a partnership that gave UMG distribution rights to HYBE’s BTS in Japan. In late 2021, HYBE expanded the deal to grant UMG’s Geffen Records distribution rights for BTS in the United States and other regions, moving their U.S. distribution over from Sony Music’s Columbia Records.
Geffen and HYBE also worked together via a joint venture to put together the Netflix and YouTube streaming documentary series The Debut: Dream Academy in which the two music companies work together to form an American girl group using HYBE’s K-pop methodology.
Last year, BMG also moved some of its distribution to Universal Music. In October, the company announced that it would move its physical distribution to UMG’s Commercial Services divison, starting in the second quarter of 2024. It will be fully transitioned by the end of 2024.
“A partnership of this magnitude only comes together when both sides are equally committed to continued growth,” says Bang Si-Hyuk, Chairman of HYBE. “UMG is an iconic music company and together with HYBE, the potential is endless. We are certain that this will expand our global footprint, while benefiting our fans, artists, and labels.”
“Chairman Bang, Scooter Braun and Jiwon Park have brought an innovative and progressive vision to the industry that underscores music’s global power,” adds Lucian Grainge, Chairman and CEO of Universal Music Group. “With the opportunities in engaging the superfan via their groundbreaking Weverse model, we’re thrilled to grow and expand our platform business collaboration as we evolve together leading the music industry’s evolution.”
“This incredible partnership between our companies will ensure mutual benefits and collaborations for the fans, teams, artists, and labels around the world,” says Braun, CEO of HYBE America. “The opportunity created here not only allows us to help our current roster, but grow opportunities for independent artists and labels globally. I’ve known and respected Sir Lucian Grainge for many years, and alongside chairman Bang and HYBE CEO Jiwon Park, we look forward to the undeniable opportunities that will come from this partnership as we together grow the music industry’s future.”
Todd Moscowitz‘s Santa Anna Label Group has invested in and partnered with OVO Sound, the Canadian record label founded in 2012 by Drake, Noah “40” Shehib and Oliver El-Khatib. Under the deal, Santa Anna will distribute and market OVO Sound releases while providing additional A&R support, production, finance and accounting, artist and label services, and more. OVO Sound’s current roster includes PARTYNEXTDOOR (slated to release his new album, P4, in the first quarter of 2024), Majid Jordan, Naomi Sharon, Roy Woody, Smiley, Popcaan and Drake collaborations with artists including Bad Bunny, Central Cee, Blocboy JB and Dave. OVO will remain a standalone record label as part of the agreement.
Warner Music Group (WMG) has partnered with Pakistani music and audio production company Giraffe, which was co-founded by artist Xulfi (rela name Zulfiqar Jabbar Khan) and CEO Muhammad Ibrahim. The deal, which allows WMG to establish a new A&R source in Pakistan, will kick off with Coke Studio Season 15. In addition to Coke Studio, Giraffe has produced some of the most popular music shows in South Asia, including Drummers of Pakistan, Nescafé Basement and Red Bull Music Sound Clash. “Pakistan has a rich music scene that offers huge opportunities for a global music company,” said Alfonso Perez Soto, president of emerging markets at WMG, in a statement. “Through the powerhouse that is Coke Studio, Xulfi and Ibrahim have proven to be phenomenal A&Rs that will be invaluable in Warner Music’s growth in the region. Together, we will discover and develop artists that have the potential to connect with fans all around the world.”
PPL, which licenses the use of recorded music for public performance and broadcast in the United Kingdom and collects neighboring rights royalties for performers and recording rightsholders globally, has signed a deal with the Indian Singers’ and Musicians’ Rights Association (ISAMRA). Under the deal, PPL will now collect royalties on behalf of mandated performers in India, while Indian performers will also receive payment for the use of their recorded music in the United Kingdom.
Kids’ music brand KIDZ BOP and Live Nation extended their partnership via a new three-year North American tour deal. KIDZ BOP is currently ramping up for its KIDZ BOP LIVE 2024 tour, which is slated to kick off June 27 in Stamford, Connecticut.
France-based streaming service Deezer has renewed its longstanding partnership with TIM, the largest mobile carrier in Brazil. Under the agreement, TIM customers will continue to receive access to Deezer.
Uber has taken naming rights for two AEG venues in Berlin: Uber Arena (formerly Mercedes-Benz Arena) and Uber Eats Music Hall (formerly Verti Music Hall). It also has naming rights to an adjacent complex encompassing a movie theater, restaurants and bowling alley that will now be known as Uber Platz (formerly Mercedes Platz). AEG’s partnership with Mercedes-Benz will continue, with the brand remaining a partner of the Uber Arena in a more general role.
Lyric licensing and data solutions company LyricFind and business-to-business music and streaming technology platform Tuned Global have signed a partnership that will allow Tuned Global clients to enroll with LyricFind to unlock lyric-based tools through APIs or turnkey apps. These tools include the ability to display lyrics in multiple languages; use lyrics to search catalogs to create thematic playlists or other content; and utilize LyricIQ, a content analysis engine that allows curators to filter lyrics and tracks by mood, subject matter and age appropriateness.
AI-powered marketing operating system SymphonyOS has partnered with CD Baby in a deal that will enable CD Baby artists to access SymphonyOS tools. Those tools include Forever Saves, which allows fans to subscribe to a creator’s releases, meaning all new music from the creator is automatically added to fans’ music libraries on release; and discounted access to SymphonyOS Pro via CD Baby’s tools & promotions page.
Music venue and hospitality company Notes Live has selected Live Nation as the operator of its Sunset Amphitheater, a new 12,500-capacity venue set to open in Broken Arrow, Okla., through a public-private partnership. The amphitheater is slated to open in summer 2025.
Latin American media solutions company US Media has signed an advertising sales partnership with Vevo. Under the deal, US Media will become the Latin American sales representative for Vevo’s ad inventory in Mexico, Brazil, Argentina, Colombia, Chile and Peru. US Media will sell on Vevo’s behalf pan-regionally from Miami.
Barbadian copyright collective membership organization COSCAP (Copyright Society of Composers, Authors and Publishers) has signed a partnership deal with CMRRA (The Canadian Musical Reproductin Rights Agency) and SX Works Global Publisher Services, which are both SoundExchange companies. Under the agreement, CMRRA will oversee the mechanical reproduction rights of COSCAP members across the Canadian marketplace, while SX Works Global Publisher Services will help manage the end-to-end administration on behalf of COSCAP members with the Mechanical Licensing Collective (the MLC) in the United States.
London-based Web3 music startup TRAX, described as a content aggregator and social marketplace helping artists build a digital space for superfans, raised a $2.9 million decentralized funding round on the Internet Computer ($ICP) blockchain. Following the investment, TRAX will operate as a decentralized autonomous organization (DAO) democratically controlled by holders of TRAX’s new governance token, $TRAX. The funds will be held in TRAX DAO’s treasury, which will allow $TRAX holders to decide how best to use them.
Music executives Ángel del Villar and Javier “El Tamarindo” González have joined forces to launch a new distribution company, DSTRO7. Del Villar’s indie label, DEL Records, will be exclusively distributed by DSTRO7, as will González’s Tamarindo Rekordsz, which he founded in 2012. According to a press release, the company will focus on music streaming, monetization, […]
After splitting with her original record label in October, Megan Thee Stallion is entering a new era: A source at Warner Music Group confirmed to Billboard that the artist has signed a distribution agreement with the company that includes services from a select global team.
For years, Megan Thee Stallion was embroiled in a legal battle over the deal she signed early in her career with 1501 Certified Entertainment, which released her music in partnership with 300 Entertainment. (300 was acquired by Warner Music Group in 2021.) In October, the rapper and 1501 “reached a confidential settlement to resolve their legal differences,” making Megan Thee Stallion — who is managed by Roc Nation — a free agent. “I’m so excited to be doing something for the first time independent since it was just me and my mama,” she said during an Instagram Live session.
Artists prize distribution deals because they typically get to retain ownership of their recordings. At the same time, Megan Thee Stallion will still benefit from WMG’s global infrastructure, marketing muscle and longstanding relationships at radio and television. Her team will include some staffers from 300 Entertainment as well as others across the company. (A rep for Megan Thee Stallion did not respond to requests for comment.)
These types of distribution agreements within major label systems have become more common in the modern music industry once artists gain a certain amount of leverage. Some young acts that have fast-climbing viral hits are even able to negotiate similarly favorable agreements right at the start of their careers, which would have been unthinkable a decade ago.
There is a potential downside to these arrangements: Because labels stand to earn less revenue from distribution deals, they may be less incentivized to throw their full weight behind these artists. Still, this is a dream scenario for many artists because it inverts the traditional music industry power dynamic.
Historically, artists handed their recordings over to a label in perpetuity in exchange for an advance and the chance to become a household name. Now it’s possible to have the best of both worlds. “That’s an amazing position to be in, to keep your copyright and still be famous,” says Tab Nkhereanye, a senior vp of A&R at BMG. (BMG has long offered artists licensing deals; in these agreements, ownership of recordings typically reverts back to an artist after a set period, conditional upon recouping the costs of the deal.)
As a result of these shifts in the industry, though, the term “independent” has become so roomy as to be nearly meaningless. It now stretches from an act self-releasing homemade recordings on TuneCore for a handful of fans all the way to Bad Bunny, who fills stadiums and tops charts around the world while enjoying lavish funding from The Orchard, which is owned by Sony Music. Most basketball players probably wouldn’t group together Giannis Antetokounmpo and a decent guy in a local pickup game, but that’s sort of what happens on a daily basis in the music industry. Adding to the confusion — “indie” is now often used to describe a specific style of rock music, regardless of whether it’s released by a major or independent label.
In many cases, “I don’t know that [independent] is really an applicable phrase anymore,” says Lulu Pantin, founder of Loop Legal. “The big distinction is self-funding versus receiving funding from an outside source.” “Now it seems like you’re either an unsigned artist or an independent artist,” adds Todd Rubenstein, founder of Todd Rubenstein Law.
Artists once required a hefty amount of financial support to record, manufacture, distribute, and market their music. Signing with a major record company meant acts had more resources at their disposal, while remaining independent signified a scrappier, bootstrapping approach, usually with a select group of labels — 4AD, for example, or Secretly Canadian. “Releasing on XL at one point was the height of independence,” says Ben Blackburn, who manages girl in red.
The initial outlay required to get a successful artist project off the ground plummeted with the rise of production programs accessible on laptops, digital distribution companies, streaming services, and social media platforms. Artists had a “newfound ability to compete on the same level without [the major labels], and in doing so, the ability to claim more control and literal ownership,” says Nabil Ayers, president of Beggars Group US.
“With digital distribution, artists weren’t going to keep doing perpetuity deals on the master side for five albums and an 18 point royalty,” adds Nick Stern, a longtime artist manager. “It was just a matter of time.”
In the second half of the 2010s, especially during the SoundCloud rap era, it became more common to hear about major labels chasing artists who were already amassing streams by the million. This meant that record companies had to give up a lot for the privilege of being associated with the artists, rather than the other way around.
Today many rising artists and their managers are intent on giving away as little as possible. This means that the major labels have all beefed up their distribution-and-services offerings, making attractive deals like the one obtained by Megan Thee Stallion more prevalent. “All of these major players with power and money decided to head into the [distribution] fray,” says Blackburn.
Sony Music has had the most success with the distribution-and-services model: It runs these deals through The Orchard, which enjoyed a bigger current market share in 2023 than any frontline label other than Republic and Interscope. The Orchard is hardly a loner, though; every major label group has at least one, if not more, distribution companies. (Warner has the Alternative Distribution Alliance, though Megan’s deal doesn’t run through ADA, according to a source with knowledge of the arrangement.)
“There are a lot of options out there for people to find those kinds of deals now that there weren’t even two years ago, and certainly weren’t five years ago when we started,” says J. Erving, a manager and founder of the artist services and distribution company Human Resources (which was acquired by Sony Music in 2020). “Initially a lot of artist managers and executives thought that type of deal was subpar in terms of your ability to have success. Now it’s something that’s sought after.”
A side effect of this new desirability, though, is “there really is no clear delineation of what it means to be truly independent,” Pantin says. “Independence now is a flexible term,” Blackburn adds. “It’s also a commodified term.”
This means the music industry would probably benefit from developing a new vocabulary to distinguish between artists with wildly different levels of financial support. “The record industry is currently lumped into two sectors: the majors and the independents, or ‘the rest,’” Ayers says. “‘The rest’ is actually a very disparate group of interests that don’t belong in a single bucket. We need a better way to describe the growing number of entities out there.”
Rubenstein agrees: “A deal with a major — or major independent label — is different than using a larger distributor that provides limited services, which is different than being your own ‘label’ and just loading your music up via DistroKid and jumping on TikTok,” he notes.
For now, as Blackburn puts it, “independence in the eye of the beholder.”
Full-service music company ONErpm is filling out further with the launch of two divisions, one being a new administration system meant to simplify managing an artist’s day-to-day needs — and the other an updated distribution platform geared for budget-crunched DIYers. Explore Explore See latest videos, charts and news See latest videos, charts and news The […]
Virgin Music Group announced the members of its global leadership team on Thursday (Oct. 19).
The executives’ responsibilities are split across five regions. Jacqueline Saturn will serve as president of Virgin Music Group North America/executive vp of global artist relations; Thomas Lorain and Nick Roden will be co-presidents in Europe; and Victor Gonzales has been named president in Latin America and the Iberian Peninsula, with Cris Garcia Falcão working as MD of label and artist strategy/GM of Virgin Music Group Latin.
In Australia and New Zealand, Nathan McLay will assume the role of MD — working with Tim Janes as MD of global marketing for Virgin Music Group Australia — and Michael Roe will take the position of MD in Africa, Middle East and Asia (AMEA).
“It is an enormously exciting time to be working in the independent sector of our business,” JT Myers, co-CEO of Virgin Music Group, said in a statement. “In today’s market,” he added, “visionary music entrepreneurs can be successful on a global scale if they have the right team and infrastructure to empower them.”
In addition to announcing regional leaders, Virgin named Jay Blomquist as chief technology officer, Jeremy Kramer as execugtive vp of global marketing, Joy Larocca as executive vp/CFO, Liz Morentin as senior vp of global communications and brand strategy, Matt Sawin as head of global product strategy and operations, Nina Rabe-Cairns as head of global growth strategy and Zack Gershen as executive vp of global commercial and digital strategy.
The appointments are the latest step in a consolidation process for Universal Music Group’s various artist services outfits. In September 2022, the company lumped together Virgin Music Label and Artist Services, Ingrooves Music Group and the newly acquired mtheory Artist Partnerships into a new entity, Virgin Music Group — of which mtheory’s founders, Myers and Nat Pastor, were appointed co-CEOs.
“mtheory was founded on the idea that we could transform the music industry by offering better, more aligned partnerships with artists,” Myers said last year. “By bringing these incredible global teams and resources together, we have the opportunity to turbo-charge that vision, and deliver even more value to artists, labels and music entrepreneurs.”
Warner Music previously combined its Independent Label Group and Alternative Distribution Alliance (ADA) under one roof in 2012. Sony Music merged The Orchard and RED under the Orchard brand in 2017.
BMG said on Thursday (Oct. 18) that it will use Universal Music Group’s (UMG) commercial services division for the distribution of its physical recorded music, in what BMG CEO Thomas Coesfeld described as the first project of a burgeoning “alliance.” Last month, BMG announced it was winding down its agreement with Warner Music Group’s ADA […]
Kanye West and Ty Dolla $ign are shopping for a partner to distribute their forthcoming collaborative album — and sources tell Billboard they are considering five different offers. West “will make a decision soon,” says one source. And while sources say the album release was originally planned for Friday (Oct. 13), it was pushed back and is expected to land in the coming weeks.
The project has record industry executives weighing the risks and rewards of releasing what some who’ve heard the music say is West’s best music in at least five years, since 2018’s Ye, but at an especially fraught time as the conflict between Israel and Hamas intensifies following the surprise attack on the Supernova Sukkot Gathering music festival on Oct. 7.
Some label leaders have passed on the opportunity to distribute the project given the antisemitic comments West began making almost exactly a year prior, beginning Oct. 8, 2022 — even though the music itself isn’t controversial lyrically, sources say. But there are a multitude of smaller distributors in fierce competition for whom such a release could be game-changing, given the two artists’ streaming histories. One such possible company is Too Lost, the music distribution and publishing company that launched in 2021 and currently represents West’s rights on YouTube. (When reached for comment, Too Lost CEO Gregory Hirschhorn declined to comment.)
The last time West and Ty Dolla $ign released a collaboration was “Junya Pt 2” on Ye’s 2021 album, Donda. Before that, they worked together on Ty Dolla $ign’s “Ego Death” (2020) and on West’s “Everything We Need” (2019), “Real Friends” (2016) and “Only One” (2014).
After releasing 10 albums on Def Jam, Donda was West’s last release with the label. His 2022 album, Donda 2, was exclusively released on the Stem Player, and later that year, following West’s antisemitic comments, a spokesperson for Def Jam parent company Universal Music Group denounced his rhetoric and distanced the company from the artist. “Def Jam’s relationship with Ye as a recording artist, Def Jam’s partnership with the GOOD Music label venture and Ye’s merchandise agreement with Bravado all ended in 2021,” the rep said.
West has not officially released any new music since then, and industry watchers have wondered what kind of route he might take when he decided to make his return. Owning all his copyrights, West also has the option to self-release his music through a do-it-yourself service such as Distrokid or Tunecore for a modest one-time fee, but may favor a boutique distribution service that would pay an advance for the deal, provide a more personalized approach and work directly with streaming services for promotion and editorial placements.
BMG is exiting its current distribution agreement with Warner Music Group’s ADA and taking direct control of its 80 billion-stream digital business in a move the company called “the biggest change to its recorded music strategy” yet, according to a statement released Monday. The fourth largest global music company will begin phasing in the new […]
Exceleration Music, the independent music company that has invested in and acquired numerous indie labels over the past several years, has acquired global digital and physical distribution and music services company Redeye, it was announced Friday (Sept. 8).
The deal not only marks Exceleration’s biggest acquisition to date but an expansion into distribution and services, effectively creating an entirely new division at the company — albeit one that will continue to operate under the Redeye name. Under the agreement, Redeye founders Glenn Dicker and Tor Hansen will continue to lead the company, retaining its existing staff and infrastructure while taking advantage of the resources and expertise offered by the Exceleration partners and team.
“We looked at what was happening with the distribution landscape, [which was seeing] a lot of consolidation,” Exceleration co-founder Glen Barros tells Billboard. “You know, you have each of the majors buying up indie distributors, and we thought it would be good to really preserve and strengthen a great indie option and make sure that indie labels have a fully independent path to market.”
The deal also includes Redeye’s in-house labels, Yep Roc and Sundazed, along with its publishing company, Riff City Sounds. Yep Roc’s roster includes Nick Lowe, Dave Alvin, Aoife O’Donovan, Alejandro Escovedo, Chuck Prophet and Jobi Riccio. Sundazed is a reissue label based in the United States.
Redeye — which signed a distribution deal with Exceleration in May — represents some of the world’s most prominent independent labels, including Beggars Group, Domino, New West, Saddle Creek, Mom+Pop, Kemado/Mexican Summer, Stones Throw, Warp, Drag City, Real Gone, Innovative Leisure, Carpark, !K7, Thrill Jockey, Luaka Bop, Partisan, Sargent House, Ninja Tune, Barsuk and Daptone.
Founded in 1996 by Hansen and Dicker, the distributor is headquartered in Hillsborough, N.C., and boasts more than 120 employees spread across 15 locations in the United States, Canada, Europe, the United Kingdom and Australia. Prior to the acquisition, it was wholly owned and operated by Dicker, Hansen and their team. In 2019, the company merged with Sweden-based distributor Border Music to expand its distribution operation in Europe.
In addition to Hansen and Dicker, Redeye’s leadership structure will remain in place following the acquisition. The list of high-level executives at the company includes Michael Petkov, head of international; Jason Taylor, director of global sales (physical and digital); Laura Pittard, director of global marketing; Michael Howard, associate vp of global operations; Hank Stockard, global business development director; Sean Pecor, IT director; and Jim Trenner, global accounting director.
Moving forward, Exceleration will support Redeye’s existing growth plans by providing operational and strategic support as well as capital. “Redeye has done a lot of work over the last few years to expand their worldwide footprint on the physical side, and they’re been a digital distributor for a long time too,” says Exceleration co-founder Dave Hansen. “So we’re going to work with them to continue building that network and offer a real solution for their existing customers, our label group and new customers [as well].”
More than anything, adds Barros, the Redeye acquisition dovetails nicely with Exceleration’s overall mission: to strengthen the independent music community in whatever ways it can. “We really want to serve this community according to what’s important within this community, and [that] is having, I think, an independent vibe,” he says. “It really is looking at the whole sector holistically and saying, ‘How can we really fill the needs of the community and do it in an indie way?’”
Exceleration was founded in 2020 by a group of five prominent independent label executives: Barros (former CEO of Concord Music Group), Hansen (executive chairman of Merlin and former GM of Epitaph), Charles Caldas (former CEO of Merlin), Amy Dietz (former GM of Ingrooves) and John Burk (a Grammy-winning producer and former president of Concord Records). Its music rights group includes investments and partnerships with labels and catalogs including +1 Records, Alligator, Azadi, Bloodshot, Candid, Heroic, Kill Rock Stars, Mom+Pop, SideOneDummy and The Ray Charles Foundation/Tangerine Records. The company currently boasts nearly 30 employees and is currently hiring for two additional positions, including a head of finance. Funding for Exceleration comes from all five of its partners as well as institutional and private investors.
“Working with the Exceleration team feels like expanding the family,” said Dicker in a statement. “Sharing strong ideals and a strategic vision, it feels like the next natural step on our journey towards providing our world class distribution service to an expanded independent community.”