Distribution
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Distribution company and payment platform Stem said on Tuesday it raised $250 million from Victory Park Capital to expand it’s popular advance check product. Stem first started offering the product in 2020 to artists at various career stages, including artists like Justine Skye, who used the capital as bridge financing when transitioning from a major […]
BMG acquired the recording catalog of British band (and Rock & Roll Hall of Famers) The Hollies. The deal includes over 20 studio, compilation, live and tribute album titles and rarities that are wholly owned by the group, including Evolution and Butterfly (1967), Hollies Sing Dylan and Hollies Sing Hollies (1969), Confessions of the Mind (1970); Distant Light (1971), Romany (1972), Out on the Road (1973); Hollies (1974), Another Night (1975), Write On and Russian Roulette (1976), Hollies Live Hits (1977), A Crazy Steal (1978), Five Three One – Double Seven O Four (1979), Buddy Holly (1980), and Then, Now, Always (2009). The agreement encompasses eight of The Hollies’ most-streamed tracks, including “Carrie Anne,” “King Midas In Reverse,” “Jennifer Eccles,” “On A Carousel,” “He Ain’t Heavy, He’s My Brother,” “Long Cool Woman (in a Black Dress)” and “The Air That I Breathe,” as well as the group’s cover versions of “4th of July, Asbury Park (Sandy)” (Bruce Springsteen), “Boulder to Birmingham” (Emmylou Harris) and “Say It Ain’t So, Jo” (Head).
Soundtrack Your Brand, a global music streaming service for businesses, announced a $15 million pre-growth round led by Matt Pincus‘ MUSIC in partnership with Liontree, JS Capital Management and Schusterman Family Investments. The round also included funding from music investors Dundee Partners and was supported by all major existing Soundtrack Your Brand investors including Balderton Capital, Fuel Venture Capital, Industrifonden, Telia and DIG. The investment will allow Soundtrack Your Brand to “double down” on its go-to-market strategy, according to a press release. Along with MUSIC’s investment, Pincus will join Soundtrack Your Brand’s board. In 2024, the company plans to raise an additional growth round.
ADA Worldwide partnered with Rostrum Records to distribute the indie label’s entire catalog and new releases. Recent Rostrum releases include Fat Nick’s “Songs on the Radio” and DC The Don’s “Funeral” as well as new music from Alé Araya and Brevin Kim. Forthcoming releases include music from Fat Nick, Lou Phelps and My Favorite Color.
Yoto, an audio platform for kids that’s behind screen-free portable audio players the Yoto Player and Yoto Mini, signed a deal with Warner Music Group that will make music from some of WMG’s artists available on the players. The partnership kicks off in June with music from Super Simple Songs, a popular YouTube channel boasting original children’s songs and traditional nursery rhymes that’s been distributed by WMG’s arts music division since 2020. Next year, Yoto will create “cards” featuring music from a curated group of WMG’s pop, rock and soul artists.
Believe signed a marketing and distribution deal with Global Records Germany, the new Berlin branch of independent label Global Records. The first release under the agreement is “Party Songs” by Gamuel Sori & INNA, which dropped June 9.
In the two years that Cat Kreidich has served as president of Warner Music Group’s distribution company ADA Worldwide, she has focused on one overarching theme: reinvention.
The music industry veteran has spent the majority of her career in the distribution business. She first worked first at Caroline, then ADA, then at Sony’s The Orchard — where she spent eight years — before shifting to Sony’s catalog division for a little over a year in 2019. But when she returned to ADA as executive vp at the end of 2020, “It was invigorating,” she says, sitting in her office at WMG’s Manhattan headquarters. “I hadn’t expected to come back to ADA, but it makes perfect sense because the culture at Warner is very entrepreneurial. So coming back, to me, was an opportunity to make an impact on a company that I truly cared about.”
At the time, the distribution space was exploding. Consolidation, streaming and new players coming into the space were upending the status quo, and the business was moving faster, and with more volume, than ever before. ADA had a few specific challenges facing it in this new environment: a third-party company that handled its tech; a blurred line between ADA and Warner Music Group that made it sometimes unclear how services were handled; and the implosion of Direct Shot Distributing after Warner and ADA had shifted its physical business to the company — leading to supply-chain issues for vinyl and CDs even before the pandemic made that a larger issue.
Kreidich had spent eight years at The Orchard building its commercial insights team, integrating tech into how the company was expanding and parsing data to help optimize commercialization for the company’s label partners. So when it came to the issues that faced ADA upon her return, she had experience in addressing the problems. But just a few months into her tenure came another change: ADA’s then-president, Eliah Seton — whom she calls “a great advocate for me” — announced he was leaving the company. Just five months after coming in as executive vp, Kreidich became president of ADA.
Following that, Kreidich embarked on an overhaul of the company’s executive structure, bringing in a team she calls “the Avengers of Distribution.” That included Samantha Moore, who heads business operations and development; Adriana Sein, who oversees artist and market development globally; Cathy Bauer, who runs physical sales and marketing; Andrea Slobodien, ADA’s first-ever head of product and integration; and MaryLynne Drexler, who oversees business and legal affairs, among several others.
“We were really specific on how we were thinking about the kind of expertise that we wanted to be in the building,” Kreidich says. “And a lot of us are here because we believe that we can do it better [than the competition], and that opportunity to have that voice feels good.”
Now, after two years of reinvention, Kreidich has the team in place to continue to fine-tune ADA as a leader in the global distribution business, which is expanding by the day. The company has launched offices in Canada, Latin America, Japan and across Europe, among others, while WMG has acquired distributors Qanawat in the Middle East and Africori in Africa to further expand their distribution offerings there, too. “At Warner, we want to have an environment where creatives, entrepreneurs and artists at every stage in their career can thrive — where there are as many different avenues as possible into the WMG ecosystem,” says Warner Recorded Music CEO Max Lousada. “What Cat and the team at ADA are doing is an essential part of our ability to partner with the full spectrum of talent. She’s relentless in her passion for the indie community and her mission to empower ADA-supported artists and labels.”
Now, as ADA celebrates its 30th anniversary this month, Kreidich speaks to Billboard about the company’s reinvention over the past two years, what a distributor can offer in the current music business and ADA’s new brand. “I’m really proud of that and the work we’ve done because I think it really nails who we are now,” she says. “I believe in the culture and I have a real soft spot in my heart for it. So I’m happy to celebrate it.”
You’ve worked at Universal, EMI, Warner, Sony and now Warner again. What were some of the things you picked up at each of those places along the way?
I started my career at Universal Motown and then went on to Virgin, and the reason why I ended up at Caroline was because of the passion for the music and the labels. My passion was always to work with the music that I loved and identified with, so I think a big part of being at each of those places was really understanding culture and the culture of representing music from a lot of different backgrounds and styles. And I think the meaning that that has — when people come together to unite for independence and music that they actually care about in a very personal way, not just a professional way — is one of the biggest things I learned and I wanted to be around and create wherever I continued my career.
I certainly thought many times of diversifying, but I always came back to the landscape of independent labels and artists. And I think that landscape has changed dramatically over the years, and the needs have changed. So the other thing I learned was really that value for a client or a label or a partner doesn’t always look the same in distribution, and many times labels are so busy running their businesses that they don’t necessarily have time to stop and ask you what your value is. So it’s being able to creatively come up with different ways to look at the business, or different ways that a label might have not considered.
You came back to ADA at the end of 2020. What were those first couple months back like?
The first thing I did was come in and interview over 40 people in the organization, mostly at ADA, some at Warner, and asked them the same 10 questions. They were generally, “How do you feel about the business? What would labels say about us?” And then I gathered all of those answers and created a presentation for Eliah. Because I knew how I felt about the business, but I also really wanted to understand how people felt about the business, because I didn’t want to make assumptions. And I think that was a really powerful thing to do, and I think it also helped me to come back to ADA authentically and genuinely; I wasn’t just trying to come here and make it The Orchard, I was truly wanting to listen and hear what were the things that we needed to solve for.
What were the conclusions from that?
There was obviously a need for process and empowerment by technology. Our technology was a third-party company that was facilitating the relationship within Warner, so that sometimes [we] just didn’t talk to each other, as third-party companies do. There was also a need for us to differentiate what it is what we do as ADA and what it is Warner does. Having run commercial teams for most of my career, it was always something that people would talk about — “ADA uses Warner to pitch” — and that wasn’t necessarily the truth. But there were things that we needed to do better together and things that we needed to do on our own, and during that time what came out of those talks was, “We need to figure out where the lines were, and then reorient those lines to make the relationships better and more clear.”
You’ve spoken a few times that once you took over as president, you embarked on a “reinvention” of ADA. Why did it need one and how did you implement it?
Warner had not made the same tech investments or acquisitions that the other majors did. They had been growing their [distribution] business as it was in this very shared service mentality that had worked for a while, and I think there was an opportunity clearly to take advantage of more and more music in small corners of the world as more and more DSPs were saturating markets with subscriptions. So it was really about three things for me. It was about being an indie advocate — that education, that understanding and helping to define what it is we do and what it is Warner does with us. It was also bringing in a skill set that was different from what I had seen at other distribution companies.
And one thing I noticed throughout my career was always, labels, managers and artists want to have expertise, and more and more artists want to own their own rights and be in control of their businesses. And that expertise to understand how other people are doing things, especially around audience development, actionable commercial insights, whether it’s growing an artist or helping with travel or breaking an artist in other countries and bringing them back — that skillset of marketing and artist development doesn’t necessarily exist in full force at tech companies, because it’s just the nature of the game.
So we were really specific about the kinds of talent we were bringing in that was going to differentiate us as we built our tech. And that was really the third thing that was most important, not only for just the idea of getting a piece of content from here to the DSP and back but also just tools and tech that would help us communicate over time zones better, help us to ignite priorities without having to email something. So I think that advocacy and audience development and marketing from a global perspective and the tech piece were the three big things we were changing.
You had gone to work at Sony’s catalog division — then a pandemic happened, and you then came back to distribution. A lot of things changed in a very short amount of time. What did you feel like had to change here because of how many things in the industry had shifted?
The great thing is that ADA is a music company. But ADA needs to be empowered by those tools and technologies that allow communication to happen easily. You can do your business with a carrier pigeon, a rotary telephone and a Yahoo email address — you could get it done — but the truth is, if you don’t have to think about those things, there’s so much more you can do. And let’s face it: we are at a point in the evolution of music formats where there’s so much volume, [thousands of] new tracks are being uploaded, social media is ubiquitous. You don’t want to have to worry about whether something got there or came back or how it worked. So I think the tools, like delivery technology that works; a self-serve platform where you can find out the basic information so that when you’re getting on the phone with somebody you’re talking about things that matter; having the strengths and the ability to talk about artist development and commercial insights and data and how things are flowing — if you have those, then you have a really competitive organization.
You also focused a lot on global expansion and having representation in both emerging and new markets, but also places like Latin America. How did you prioritize all these things?
I’ll give credit to Alfonso [Perez-Soto], who is the emerging markets leader and is a tremendous business development person inside of Warner. That track was already full-blown and a part of Warner’s larger strategy. But the truth is that in places like the Middle East and Africa, those established businesses don’t exist from a record label standpoint, so investing in distribution companies that could develop over time was really a part of that strategy. For us, first and foremost, credit to Eliah — he was able to garner a budget way before I got here and really broke the ice and started bringing people in, and Latin America was obviously really relevant in the sector, and that was a territory he really doubled down in. So we have a significant amount of people in Latin America that are ADA and distribution-focused.
But then I would say what was most important with Alfonso was we acquired Qanawat, we acquired Africori, and there’s many more to come that have not been announced yet that we’re currently working on. Once you’re looking at acquiring companies, then you’re looking at prioritizing what’s going to be most important and most impactful when it comes to market share, what are the feature sets we have to build to make sure we’re giving these labels an equal if not better level of service than they’re already receiving, because it’s distribution deals — they can walk away. So for us, the experience we brought in, it was about understanding what we could ingest the quickest, and what was going to make the most impact. But as far as the acquisitions, they were really part of the larger Warner strategy, though they are the ADA teams.
As you guys continue to expand, what are the challenges and potential pitfalls?
I think the biggest challenge is that there is a lot of competition out there, and it’s hard to compete with rates and advances. There’s a lot of money being thrown around in the distribution market, because there’s venture capital companies, there’s a lot of tourists. So I think that the challenge of growing our business, being a successful distribution company globally and also in the U.S., is making sure that we’re doing smart deals and building our business and delivering value.
I also think ADA is back and revitalized and has a new perspective, especially in the U.S. business, and I think that’s new to people. And reintroducing ourselves and letting people know what we’re doing is best done through our successes. In places around the world we’ve hired some really amazing teams, and it feels different and cool and new because ADA didn’t always really exist in all these territories. And in the U.S., it’s more of an education process because there’s so much competition and because, you know, distribution — it’s the hot new thing. For me, I guess, I’m here because I’ve always loved it.
It’s interesting you brought it up in that way, because I feel like you hear that a lot in the catalog acquisition space — there’s outside money coming in, there are companies coming in that don’t have track records in the music business — I hadn’t thought about the parallels here, too.
And all of that is about to become independent. All of these companies buying music catalogs, they have to put them somewhere, and a lot of them are buying rights that haven’t reverted yet. So those catalogs are now moving around. There’s going to be even more infusion, and I think that there’s a real opportunity. I’m very happy for my experience at Sony catalog, because working catalog is not easy, and I’m hoping that there’s an opportunity for us to continue thinking about tools and tech that can optimize catalogs. Because catalog is more important than it ever was before, and you never know when it’s coming; you have to be proactively reactive. And it’s going to be an opportunity.
What do you look for in bringing on new label partners?
I think the most important thing that we look for is the ability to partner both ways. When we first started, it was really the idea of, “How can we use each other as strengths?” Because when it’s a one-way relationship, okay, it’s transactional and we’re a distributor and you’re a label. Value comes differently for every partner. But I think one of the biggest things is a label wants to know that you’re paying attention and are able to think of opportunity either before or maybe in a different place than they would think about opportunity. We try to be very strategic yet tactical when we do business reviews, and we leave it up to three to five key things that we have to do and be able to measure those things. So of course there’s planning and proactiveness that you can do. But there’s nothing better than getting a call from your distributor and them saying, “Oh my god, I just saw a spike, let’s do this.”
You’ve been president for two years now. When you look back, what are you most proud of in that time?
First of all my team. Bringing in the executives I have is probably the biggest highlight, and empowering them. Also launching Co-Op, which is our proprietary product for third-party labels and artists, which we launched in October. No small feat. And overall I would say the successes that we’ve been able to generate with Quevedo and Central Cee. We just had a No. 1 in India with the Sean Paul–Shaggy–Spice track [“Go Down Deh,”] that literally came from us seeing a spark and starting to work it locally. We just had a No. 1 with Ayliva in Germany that beat out Miley Cyrus. So we definitely have these big wins and I hope to have many more to talk about in the future, but it honestly couldn’t happen without the team that I brought in and the relationships that we created with the ADA folks that have been here before and the new folks that have come in. And I’m really looking forward to holding a global conference and getting everybody together. Being able to be together and appreciate that is what I hope to do for the entire organization.
South Korea-based music and entertainment company HYBE signed a music distribution deal with Tencent Music Entertainment this week, according to media reports. Reuters, citing an article by the Seoul Economic Daily, reported Tuesday (May 23) that the agreement allows music by BTS, TOMORROW X TOGETHER and other HYBE artists to be streamed on Tencent Music’s platforms. […]
Asake leans back in his chair, phone glowing in the darkened studio, as Olamide hunches over his right shoulder. Suddenly, the engineer signals, and the backbone of a song swirls through the speakers while Asake begins teasing out melodies and lyrics in Yoruba, a language of his native Nigeria. The engineer cuts, rewinds and plays, and the loop once again floods the vacuum-like silence that envelops a recording studio.
Outside the room, the building is bubbling with activity and energy as artists, songwriters and engineers mill about, playing unreleased records and eating from a buffet of Nigerian food — smoked mackerel, okra soup, goat, garlic shrimp and crab — prepared by local chefs. But this is not West Africa; it’s San Francisco, at the new studio headquarters of Bay Area-based music company EMPIRE. In early March, EMPIRE was in the midst of a two-week writing camp for three of its biggest Nigerian talents: budding Afrobeats superstar Asake, his YBNL Nation label boss and Nigerian music legend/mogul Olamide and Fireboy DML, another emerging YBNL/EMPIRE artist, whose 2021 single, “Peru,” was remixed with Ed Sheeran and exploded into a global hit. “Peru” was the first song Fireboy created at EMPIRE’s studios near San Francisco’s Mission District, which the company just expanded and overhauled into a first-class, multipurpose creative hub.
The studio is now the epicenter for all that EMPIRE intends to be: a fully operational label group that can sit at the top table alongside the majors and compete at the highest levels of the global music business and beyond — TV, film, podcasts, gaming, social media, nightlife and more. And it’s currently the platform for one of EMPIRE’s biggest achievements: The company is among the foremost global distributors of Afrobeats, the umbrella term for a variety of musical genres emerging from sub-Saharan Africa, where recorded-music revenue has ballooned 34.7% year over year, according to IFPI, the fastest pace in the world.
“The music that they’re making here is, honestly, the most culturally important thing I’ve done in my entire career, and I’ve been in the music business since I was 14,” says EMPIRE founder/CEO Ghazi while walking through the space. “These guys are the kings of where they come from, and they’re about to be the kings of everywhere if we keep doing what we’re doing. It’s phenomenal to see what’s happening.”
From left: Ghazi, Asake and Fireboy DML on February 27, 2023 during EMPIRE’s Africa writing camp in San Francisco.
Matthew Fong/Courtesy of Empire
EMPIRE’s dominance in Nigeria, in particular, is immense. On the country’s TurnTable Charts, EMPIRE ended 2022 with the top three artists (Asake, Burna Boy and BNXN), the top two songs (Kizz Daniel’s “Buga,” and Asake and Fireboy’s “Bandana”) and the top album (Asake’s Mr. Money With the Vibe), while also earning the distinctions of top label and top distributor for the year. At one point, EMPIRE artists held the top slot on the Nigeria 100 for 26 consecutive weeks, and an EMPIRE song was No. 1 for 35 weeks over the course of the year. (The song Asake recorded in San Francisco was released in April as “2:30” and became his ninth No. 1 on the Nigeria 100.) EMPIRE’s relationship with Olamide and YBNL, which began in 2016 before being formalized as a partnership in early 2020, has given it both credibility and a draw to attract artists, and has become a significant success story in the region.
“They are a major organization in Nigerian music,” says Ayomide Oriowo, co-founder/head of operations of TurnTable Charts. “After 2019, when they did the deal with Olamide, they capitalized on that and became a bigger deal. It was also at the moment when the ‘Afrobeats to the world’ [movement] was really taking off. So the timing worked for them, and it was just perfect. Word travels fast when you’re an artist — this idea of, ‘They have the power to get us here.’ ”
Now the challenge is to replicate that success elsewhere — in the Middle East/North Africa region, in the Asia-Pacific, in South America and beyond — without losing the drive and identity that Ghazi and his company have cultivated over the past 13 years.
The evening runs late — it’s past 10 p.m. — but suddenly, the room is buzzing with energy, and everyone moves into the building’s marble-floored lobby. After a beat, Ghazi brings Fireboy in to surprise him with an RIAA platinum plaque for “Peru” as the staff gather around, taking photos and popping champagne. “This is the first platinum plaque we hang on the wall here for a song that was created here — the first of many,” Ghazi says amid the jubilation.
Later, he takes a more reflective tone. “It’s like a zenith point in my life,” he says. “It brought me all the way back to my beginning: in a studio, making a record, and then taking that record and putting it into a company that was a culmination of many years; to be able to put out that record and market it, promote it, distribute it, manufacture it and create accolades and international nominations. And then that record became the record that made a bunch of other African artists say, ‘I want to go to the studio where this was made. I want to have that same experience and that same magic.’ ”
Two days later, Ghazi is sitting at a Mediterranean restaurant in downtown San Francisco near the EMPIRE offices, explaining how he built a company that credibly grew into its name.
EMPIRE’s realm is not limited to West Africa — over the past decade-plus, it has also become one of the Bay Area’s biggest and most successful homegrown music companies. Half of its nearly 200 employees are based in the city (a distinction Ghazi is particularly proud of), and it’s a significant player in the independent hip-hop scene across the United States, which provided the fertile ground from which the company was born. Having its headquarters in Ghazi’s hometown has given EMPIRE a domain of its own, along with access to the best minds in technology and media that flock to Silicon Valley.
Ghazi launched EMPIRE in 2010 as a tech-first digital distributor amid the fervor of Digital Music Industry 2.0 zeal then sweeping through the Bay. He had started working at Ingrooves in 2006, which had an office down the street; IODA, which eventually merged with The Orchard, was in the same building; farther down the hallway, two guys were building Twitter. Additionally, SoundCloud, Pandora, Rdio and Mog (which, after several iterations, morphed into what became Apple Music) all had offices in San Francisco.
Ghazi had essentially come up within the cultures of two of his home city’s best exports: first as a recording engineer turned studio owner, working with some of the legends of Bay Area hip-hop, and then building servers for computer companies in Silicon Valley.
“I’d be at my Silicon Valley job from 9 to 6, and then I would jump in the car and drive an hour through traffic straight to the studio, order pizza to the studio, then work there until three, four in the morning,” he says. “Then I would go home, take a shower, sleep like four hours and go right back to my Silicon Valley job. I would sleep in my car on lunch breaks and put my pager on vibrate so it would wake me up. Then I’d go right back to work.”
Ghazi photographed on April 12, 2023 at EMPIRE in San Francisco.
Katie Lovecraft
That background — a base in tech, plus deep connections to the Bay’s hip-hop scene — led him to Ingrooves, which was trying to break into the rap market. But after three years navigating the company’s bureaucracy while continuing to run a studio, Universal Music Group (UMG) bought half of Ingrooves (it now owns the company outright), and Ghazi left to form EMPIRE. Early on, he relied on his connections to make not just new releases available, but also offer rappers’ catalogs digitally, sometimes for the first time — and to get them paid monthly, rather than quarterly or not at all. The ability to move quickly, with one-off nonexclusive deals and a client-friendly front end, helped the company expand rapidly through word-of-mouth, first through the Bay, then down to Los Angeles — where EMPIRE put out indie albums by the likes of Kendrick Lamar, ScHoolboy Q and Anderson .Paak — then to Houston and beyond.
EMPIRE truly began making its mark in 2016, when it distributed D.R.A.M.’s hit “Broccoli,” which was picked up by Atlantic Records, and the Fat Joe and Remy Ma record “All the Way Up”; both songs earned Grammy nominations. The following year, it released XXXTentacion’s debut album, 17, which debuted at No. 2 on the Billboard 200 and has racked up 3.5 million equivalent album units in the United States, according to Luminate. Without much fanfare, the company had become a hip-hop heavyweight, filling in the gaps that the traditional industry couldn’t, or wouldn’t, serve: the up-and-coming artists who hadn’t yet caught the majors’ eyes and veteran acts who had phased out of the hit-driven system.
At the same time, the industry was shifting. Apple Music had debuted in 2015, streaming had finally begun to return the music business to growth, and EMPIRE’s flexible offering forced rival music companies, including the major-label groups, to offer deals with similar terms and services as they competed for talent. Suddenly, the label pipeline burst into a fire hose, and everyone wanted in on the nimble, flexible and global distribution model that EMPIRE had made its bread and butter. New companies like UnitedMasters, Stem and Create popped up with seed money to buy into the distribution market; labels launched distribution-first imprints (Capitol’s Priority, Republic’s Imperial); and streaming services and social media companies like SoundCloud and, briefly, Spotify began offering independent artists the ability to distribute their music through them. Before long, it seemed that almost every label had a distribution-first option, while the label groups beefed up their own offerings, flooding the zone that EMPIRE helped establish.
“Now every major has an EMPIRE quote-unquote system, where they try to implement that,” says CSH Management’s Kenny Hamilton, who has had several clients work with EMPIRE over the years. “But it’s not the same relationships; it kind of sounds like they’re just trying to find the next quick thing that they can upstream to a major system, but you’re really not doing artist development. At EMPIRE, that’s what they do. They’re patient with the artists, and if they see promise and they believe in it, then they put their all into it as well. It’s often imitated but never duplicated.”
From left: Edgar Esteves of Blank Square Productions, Tina Davis, Ezegozie Eze of EMPIRE and Dayo Ademola Ayoyemi of Salpha Energy at the Forbes 30 Under 30 Summit Africa on April 24, 2023 in Gaborone, Botswana.
Tuhenye Dan Muatjitjeja
As the industry started to shift toward the EMPIRE model, EMPIRE itself was moving toward the one used by major-label groups, incorporating A&R, marketing, PR, promotions and social media into its offerings on top of pure distribution and starting to provide label deals and joint ventures. In 2018, EMPIRE struck a nonexclusive deal with UMG to distribute select UMG artist projects; in 2019, it added a vertical to handle original content, which now includes several high-traffic Instagram accounts and a music video department, and expanded into Nashville, the United Kingdom and Europe. By 2020, EMPIRE had started a merch operation by acquiring a majority stake in Top Drawer Merch/Electric Family, then officially announced a publishing division, which had already been informally part of the company for several years. The studio technically opened in 2019, but because of the pandemic and continued expansion and renovations, it is only now becoming the one-stop content shop that Ghazi had envisioned.
“I’m a practice-makes-perfect type of person,” he says. “I always knew the intention was to be a label, but I knew I couldn’t be a label without taking a lot of shots. If you want to be a great free-throw shooter, you’ve got to take a lot of shots, find your technique and the right approach.”
The right approach, at this point, is there; the goal — a full suite of music and cultural offerings — within sight. All of which has brought the kind of attention Ghazi has instinctively shied away from over the years. The offers to sell, to divest, to assume the final form of what it means to be a Major Label in the Traditional Sense is not something he’s interested in. He owns the company outright, has it rooted in his home city and has no investors or board of directors to answer to — only his staff of 200 around the world and, most importantly, his artists. Still, the questions and offers persist.
“I would call it a tug of war,” he says. “I’ve always been a firm believer that attracting too much attention sometimes gets you off your A-game. But, I also understand the balance of, every once in a while, you’ve got to shine a spotlight on something for people to see the magic.
“It was always about autonomy; if you go to my office right now, behind my desk there’s a sign on my floor, written in Arabic. It says, ‘Freedom.’ I just always wanted the freedom to just be my own man.”
The summer of 2016 was dominated by Drake’s single “One Dance,” featuring Wizkid and Kyla, which held the No. 1 spot on the Billboard Hot 100 for the entirety of June and July, making Wizkid the first Nigerian artist to chart on, let alone top, the tally. At the same time, EMPIRE made another subtle move, one that would pay off years later: getting into business with one of Nigeria’s biggest talents, Olamide.
Today, the 34-year-old rapper, singer, songwriter, producer and YBNL Nation founder has cemented his legacy on his native continent. For nearly 15 years, he has been a prolific artist and executive, helping shape the sounds of hip-hop and Afrobeats, and growing into one of the pillars of modern West African music while championing and boosting a number of young artists along the way, through features or label deals.
“Olamide is almost like a street hero,” says Phiona Okumu, Spotify’s head of music, sub-Saharan Africa. “It’s him understanding the best of American, Western hip-hop culture, but also understanding the grace and vibrancy of where he is from and bringing it together and making it so palatable that’s been his main influence. He’s able to spark a star, he’s able to hear a sound, and he’s able to make it go.”
Olamide in the San Francisco studio on February 20, 2023 during EMPIRE’s Africa writing camp.
Matthew Fong/Courtesy of Empire
By 2016, streaming services began to slowly open on the continent. IFPI didn’t even begin tracking revenue in Africa until the last few years. In 2019, South Africa ranked No. 31 among countries tracked by IFPI in recorded-music revenue, at $59.9 million; the entirety of the rest of sub-Saharan Africa, lumped together, came in at No. 59, at $4.3 million. (IFPI has not released hard figures since.)
“While we were growing up in Africa, all an artist depended on was shows,” says Mobolaji Kareem, EMPIRE’s regional head of West Africa, as he stands in Studio C with YBNL Nation head of brand and talent management Alex Okeke and DJ Enimoney, Olamide’s DJ and brother. “From 2010, 2011, until 2016, all of it was free music on SoundCloud, Audiomack. We dropped things on Twitter. Streaming money started coming around maybe 2016; if Apple Music was around in 2010, we’d be doing like a billion streams right now.”
Olamide broke onto the scene in 2010, primarily as a rapper, mixing English and Yoruba, and signed to a label called Coded Tunes, through which he distributed music and made songs available as ringtones. In 2012, he left that label and launched YBNL Nation, distributing his own music through telcos, as was standard in Africa at the time, and YBNL artists through Bolaji’s Ingle Mind distribution company, which also handled music by the likes of Wizkid, Burna Boy and Tiwa Savage. Olamide signed rising artists such as Lil Kesh, Adekunle Gold and Viktoh while steadily putting out his own music and being a hands-on label executive. By 2016, Olamide was out of his telco deal and began working with Bolaji, who had started using EMPIRE’s distribution framework to expand his artists’ reach beyond Africa.
At the time, the two sides didn’t know each other. EMPIRE was distributing around 500 projects a month, and Ghazi was more focused on building its label structure than dealing with distribution; Bolaji was working through an intermediary to release his artists’ projects through the EMPIRE system. That was the state of affairs for several years until 2018 or 2019, when the numbers began to change. “The money kept getting so much every year. At some point, Ghazi just said, ‘F–k it, who is this boy from Africa? This artist that is making up to like $40,000, $50,000, $60,000 a month out of Africa with no marketing, no pitch, nothing?’ ” Bolaji says. “They had to fly down.”
Ghazi remembers it a little differently. “One day, Tina [Davis, EMPIRE’s vp of A&R] runs in my office and is like, ‘Yo, there’s this dude from Africa on the phone right now, and I don’t know what he wants because he’s screaming at me. You need to help me deal with this,’ ” he recalls. “So I get on the phone, and if I remember correctly, it was like a payment issue — something went wrong with their account, we didn’t respond fast enough or whatever. We fixed it. And then right around that same time, Nima [Etminan, EMPIRE’s COO] came into my office and was like, ‘Man, I think we should go meet these people.’ ”
Nima Etminan photographed on April 12, 2023 at EMPIRE in San Francisco.
Katie Lovecraft
It was a fortuitous meeting — and a well-timed one. Ghazi and Etminan flew to Lagos, Nigeria, and met with Olamide, Bolaji and Okeke, who introduced them to the Nigerian music scene and some of its leading figures, including then-Universal Music Nigeria GM Ezegozie Eze. “Us being personally there was a big deal,” Ghazi says. “Because most people were just sending out reps or just hiring somebody locally to deal with it. We were running around all week, concert to concert, festival to festival, visiting other people’s houses; we went to Fela [Kuti]’s shrine; we were all over the place. We were learning about the country and the music infrastructure. And it was very gratifying that we were received the way we were received, like we’re family. That made me go 10 times harder.”
“Olamide didn’t come to meet EMPIRE. EMPIRE came to meet Olamide,” Bolaji stresses. “And that was how we started EMPIRE Africa, through YBNL. So one of the things I tell people is, ‘The catalog for EMPIRE Africa sits on YBNL.’ Because if YBNL wasn’t making that much money, [EMPIRE] wasn’t going to see Africa that early.”
Within months, EMPIRE had hired Bolaji and Eze to run EMPIRE Africa, an informal entity that was officially incorporated and announced in 2022, with YBNL as its centerpiece. The timing, once again, was fortuitous: After the first seeds of a breakthrough with “One Dance,” momentum had gradually built for a global Afrobeats movement, with artists like Burna Boy, Davido, Mr Eazi, Savage and Nasty C making gains on the Billboard charts year by year. But it was during the pandemic, just as EMPIRE was putting down roots in Lagos, that Afrobeats truly crossed over into the United States, with Wizkid’s “Essence,” featuring Tems, which ultimately peaked at No. 9 on the Hot 100 and ruled the R&B/Hip-Hop Airplay chart for 27 weeks.
“When things like this happen, it’s almost like a domino effect — that sets off the labels, and they get interested and curious about who can be next in terms of what the sound is like,” says Spotify’s Okumu. “All of the major labels were in the space before EMPIRE, and all of them had the same interests, the same pursuits — they all wanted the next big African star. But EMPIRE focused on A&R, and that is incredibly important when you have an emerging genre. I feel like that was the win in the joint venture between EMPIRE and YBNL.”
California State Assembl ymember Matt Haney presents Fireboy DML, Asake, Olamide and EMPIRE with a Certificate of Recognition from the State of California for their contributions to Afrobeats worldwide and their work in San Francisco
Daniel Aziz
It has also been reflected in the numbers. In 2021, recorded-music revenue in sub-Saharan Africa grew 9.6%, according to IFPI, with ad-supported streaming revenue up 56.4%. That number exploded in 2022, with overall revenue up 34.7% — the only region globally with growth north of 30% — taking over as the fastest-growing region for recorded-music revenue in the world. IFPI opened its first African office in mid-2020, reflecting the continent’s growing importance and potential, and all three major labels now have presences in West Africa and South Africa. In the United States, seven of the top 10 on-demand streaming songs Luminate classified under “world music” — which encompasses several African genres, as well as genres like K-pop — were by West African artists in 2022.
IFPI regional director of sub-Saharan Africa Angela Ndambuki says she expects that massive growth to continue at the same rate this year. “With the digital growth and the advances in technology and new platforms coming in, we’re able to see the labels investing even more, and their presence in the region helps drive the development of those scenes,” she says. “And that then creates a healthy music market.”
In the summer of 2021, Fireboy came to San Francisco for the first time to record in the EMPIRE studio. The young Nigerian singer had signed to YBNL in late 2018 and released his debut album, Laughter, Tears and Goosebumps, in November 2019 through YBNL/EMPIRE, then a second, Apollo, the following year. “He came to just record for a few days or a week, and we brought in three or four different producers and writers, and he wasn’t very used to having writers. He’s used to doing all his own stuff,” Davis recalls, sitting in the expansive Studio A. “So it was new for us because he hadn’t recorded here, and it was new for him because he had never been to San Francisco.”
“Peru” emerged from that session the following summer, with its lyric “I’m in San Francisco jammin’,” and almost immediately took off in Nigeria and the United Kingdom. The remix with Sheeran was released on Christmas Eve 2021, which propelled it even further. “That record was a way for us to show people that we could break a record outside of Africa and make it larger than just a record for the club and for the diaspora,” Davis says. “But what it taught the African team is that you don’t give up on a hit. I think it just opened it up for people to recognize how much we care about it, and it also gave us a bar to reach.”
Tina Davis photographed on April 12, 2023 at EMPIRE in San Francisco.
Katie Lovecraft
EMPIRE has grown beyond its YBNL foundations in West Africa. Acts like Daniel, Wande Coal, BNXN, L.A.X., Navy Kenzo and Black Sherif on its roster are expanding the limits of the Afrobeats, amapiano, highlife, fuji and Afropop genres, among others, while the company also distributes Burna Boy in Africa. (Atlantic is Burna’s label stateside, and Warner distributes his music outside of Africa.) And Asake, who officially signed to YBNL/EMPIRE in mid-2022, lit the Afrobeats world on fire with his debut album, Mr. Money With the Vibe. Released last October, it immediately topped the Spotify and Apple Music charts, and has accrued 197.5 million streams in the United States, according to Luminate. Meanwhile, streams for Asake, Fireboy and Olamide have grown more than 500% outside of Africa on Apple Music, according to the company, which greatly over-indexes in African music streams compared with competitors.
That doesn’t mean EMPIRE has cornered the market. Wizkid, Davido, Tems and rising star Libianca are all signed to RCA in the United States; CKay is distributed by Warner in partnership with local indie label Chocolate City, while Omah Lay goes through Sire; UMG’s Virgin distributes Rema’s “Calm Down,” while Larry Jackson’s new venture, gamma, has its African distribution rights, and Def Jam just signed Gold. As the industry’s attention has shifted to opportunities on the continent, the competition has gotten fierce — but EMPIRE’s reputation has allowed it to keep building organically in the region. “EMPIRE’s a family, and all the other labels are labels,” says Okeke. “That’s the difference.”
Now EMPIRE’s task is to build upon that success and keep expanding its dominion — not an easy task in a globalized climate sagging under the weight of an increasing amount of new music every day. The company has already established an operation covering the Middle East/North Africa, bringing on Spotify’s Suhel Nafar to oversee it. It is also making inroads in South Africa and recently hired people in Tokyo to oversee efforts in the Asia-Pacific region and Brazil to begin developing a foothold in South America. In each new region, EMPIRE is looking to build on the model that worked so well in West Africa, making strategic hires based on partnerships with well-connected industry players in local markets rather than signing artists to fit a sound. And even as that old Digital Music Industry 2.0 has long since drifted away from the Bay, relocating to the likes of L.A. and New York, EMPIRE has remained in San Francisco. “We’ve plotted a lot of dots on the map, and I want to plot more dots and create more connectivity, more brainpower,” says Ghazi.
YBNL Founder and CEO/Artist, Olamide, and EMPIRE Founder and CEO, Ghazi, present Fireboy DML with RIAA Platinum Plaque for his hit single “Peru”.
Daniel Aziz
On a Thursday afternoon in mid-April, Ghazi pulls over to the side of the road to explain, over the phone, the next iteration of the vision. He’s about to fly to Johannesburg, then drive to Botswana, then return to the Bay for a few days with his family before another trip down to Rio de Janeiro — around the world and back again. “When you watch those movies from 15, 20 years ago and they put a globe up on the screen and then they push a button, and all the lines fly around the globe and connect to all the different epicenters? It’s kind of like that,” he says.
Which is to say, the journey may have hit one zenith, but that has only established a new jumping-off point, a new foundation on which to build. “You’re always trying to go to greater heights, right? Man makes it to the moon, now you want to make it to Mars,” he says. “As long as we live limitless and we continue to chase ourselves rather than other people, I think that we’ll be OK. We’re already successful; this already looks like success. It’s just, how do you breed more success?”
The answer? In the studio. After the plaque presentation in March, a half-dozen A&Rs and engineers piled back into Studio C to gush over the record that Fireboy made the night before, which has a first verse; an epic, soaring hook; and a second verse left open — maybe for a stateside collaborator, or a fellow Afrobeats star, or maybe for Fireboy himself to finish off. Pop star names are tossed around, and a particular alt-R&B singer is mentioned. But one A&R stands up indignantly, voice rising above the others: “Hang on, hang on, hang on,” he says to quiet the crew before adding nearly incredulously: “Did Bob Marley get someone else to put a second verse on ‘I Shot the Sheriff’? This is all you!” The feeling is euphoric, the room is filled with laughter, the possibilities endless. The beat comes back in: rewind, cut, play, forget about the time. The vibe is here; the night is far from over.
This story will appear in the May 13, 2023, issue of Billboard.
Music business entrepreneur and EMPIRE founder/CEO Ghazi Shami announced the launch of a new, white-label distribution platform called Supply Chain today (March 15). The product, which is available now and is separate from EMPIRE, will allow brands, labels, distributors, service providers and retailers to make use of the platform to distribute music to any service provider and integrate distribution into their own products and offerings.
“With Supply Chain, we have built the most comprehensive distribution platform in the music industry,” Shami said in a statement. “Brands and services can now tap into the power of Supply Chain and offer a full set of distribution services to their customers.”
Supply Chain will offer SaaS and API solutions to allow companies to tap into digital tools to allow them to offer distribution to clients for service providers all over the world. The new offering comes at a time in the music business when there is a heightened interest in services and distribution, with new companies flooding into the arena to offer new solutions for independent artists and labels and existing companies pivoting their business models towards non-ownership services offerings. Unlike many of those services, which sign deals with artists or allow them to upload to digital service providers for a flat fee, Supply Chain will allow companies to integrate its distribution offering into their own services, providing a back-end basis for their own offerings.
“The new Supply Chain product provides a tremendous amount of power, but does so with a very simple approach that is both flexible and recognizes that many partners will not want to build out their own UI,” said chief product officer Stephen White. “We have focused on making the product easy to integrate while not sacrificing any of the powerful functionality.”
Downtown Music Services has inked a global distribution, creative marketing and synch licensing deal with Natanael Cano‘s record imprint, Los CT, it was announced Monday (Feb. 27). The label’s current roster includes Gabito Ballesteros, Alejandro Buelna, Tyan G and more.
Under the deal, Downtown Music Services will be responsible for all aspects of global distribution, creative marketing and synch for Los CT. This includes providing listeners with access to new music releases, securing strategic marketing and synch opportunities and ensuring that Los CT artist releases are available on all major digital streaming platforms.
Cano launched Los CT last year amid a public dispute with his former label, Rancho Humilde, as an opportunity to continue broadening the Mexican music style he’s been actively internationalizing.
“I am always very happy to work with people who supported me from the beginning,” Cano said in a press release. “Now being able to distribute my music with some of the same people who always believed in me, I am extremely grateful and motivated to continue giving my all alongside the Downtown Music Services team.”
Downtown Music Services vp of A&R Latin, Ray Tapia, worked side by side with Cano’s manager, Ramon Emilio Hernández, to make this partnership a reality. A subsidiary of Downtown Music Holdings, Downtown Music Services offers bespoke distribution, publishing administration, creative marketing and finance solutions to entrepreneurial creators and their partners.
Tapia said, “We are thrilled to partner with Natanael Cano and the Los CT record label team. The Mexican music scene is undergoing a transformation with an increasing number of collaborations and a growing number of artists attracting millions of monthly listeners. This genre remains one of if not the most independent, and we are super excited to have the opportunity to contribute to its success. ¡Ánimo!“
“We have been working on this for a minute and I am really excited about this partnership and how we are helping put this new era of the culture out there,” added Hernández. “There is so much promising talent in this space and we look forward to working with some of these artists and the team at Downtown Music. They really knew the genre, the music and understood our goals from the beginning.”
This year, Cano has achieved three entries on the Billboard Global 200 chart, including “AMG” with Gabito Bastelleros and Peso Pluma which hit No. 35 on the tally. He’s also scored two entries on the Billboard Hot 100.
Universal Music Group (UMG) has purchased a 49% stake in the indie label group [PIAS], expanding on a strategic global partnership that began last year. As part of the deal, [PIAS] founders Kenny Gates and Michel Lambot will retain control of the company, “remain fully independent” and UMG will have no seats on the indie’s board.
In March 2021, [PIAS] rebranded its distribution and services arm to [Integral], bringing on a new managing director to expand its business globally. Three months later, [PIAS] entered into an agreement with UMG that gave the major label group access to the [Integral] platform, which also handles distribution services for more than 100 indie label partners including ATO, Beggars Group and Secretly Group. The newly announced minority investment is said to be an extension of that initial deal.
“We have enjoyed an excellent relationship with the Universal Music Group team since we announced our strategic global alliance with them last year,” said Lambot — who co-founded [PIAS] in Brussels, Belgium, in 1983 alongside Gates — in a statement. “Kenny and I are celebrating our company’s 40th anniversary this year and we are still as ambitious as we were when we started out about growing our global presence and providing a world class service to the independent music community.”
“These days we are competing with finance and tech giants and a partner like Universal Music Group provides the additional support for us to compete and grow,” Gates said in his own statement. “Universal made it clear that they like us, they trust us and they need us, because they can’t do what we do and they value it highly. For Michel and I this is our life’s work and an ongoing journey and I am excited about the prospect of this new chapter in the life of [PIAS]. This move makes us stronger and secures the future of our brand, our staff and our partners while maintaining control of our destiny.”
The expansion of the deal comes at a time when many major labels — Capitol Music Group, Republic, 300, Interscope and more — are increasingly launching or enhancing their distribution offerings for independent artists and labels. This deal with [PIAS] presumably expands UMG’s access to independent distribution moving forward.
“The boldly independent and music-centric culture that Kenny and Michel have built over the last four decades has provided a vital creative network to so many artists,” UMG chairman/CEO Lucian Grainge said in a statement. “While much of the past was focused on ‘majors versus indies,’ it’s clear that today, the important divide in our industry is about those committed to artist development versus those committed to quantity over quality. We share Kenny and Michel’s passion for developing artists and moving culture, and we recognize that a healthy music ecosystem needs companies like [PIAS] who are committed to amplifying the best voices in independent music.”
Over one year ago, alt-pop sister duo Aly & AJ released their first album in 14 years — and the pair has been on a steady release streak ever since.
Now, Billboard can announce that the act’s upcoming single, “With Love From,” will arrive Nov. 2, ushering in a new deal for the duo. The single doubles as the title of a new album, coming in the spring, which will be the first through a new distribution deal with SoundCloud that will also see the company provide Aly & AJ with marketing support.
“We couldn’t be more thrilled to have the support of SoundCloud entering this new album cycle,” Aly & AJ said in a joint statement. “They’ve allowed us to have the creative freedom we need to make our best possible music to date.”
The signing comes at a crucial time for SoundCloud, which cut 20% of its workforce in September. Not long before that, the company had added new features such as “the roster” — which signs artists to more traditional record deals (initial members included Lil Pump and Tekno) — and Repost, a distribution service offered at $30 annually that allows artists to keep up to 80% of the royalties they make from other streaming services. Aly & AJ’s deal fits into neither category, proving artists can still choose their own path when partnering with SoundCloud.
With Love From follows Aly & AJ’s independently-released 2021 album A Touch of the Beat Gets You Up on Your Feet Gets You Out and Then Into the Sun. Also last year, Aly & AJ scored a top 10 hit on Billboard’s Digital Song Sales chart with the re-released hit “Potential Breakup Song (2020),” which went viral on TikTok years after its initial release.
Following the arrival of A Touch of the Beat, Aly & AJ hit the road performing at festivals including Lollapalooza, Governors Ball and Austin City Limits. They just wrapped an opening gig on Ben Platt’s national tour, including stops at New York’s Madison Square Garden and Los Angeles’ Hollywood Bowl. Next up, a performance at Corona Capital in Mexico City followed by a string of overseas dates in Europe and the U.K.
For now, as fans patiently wait for Nov. 2 to arrive, a snippet of Aly & AJ’s new single can be heard in the teaser for an upcoming collaboration between Rowing Blazers and Seiko watches, with the collection set to drop Friday (Oct. 28) at 11 a.m. ET.