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Imagine a land where it’s never cold but Christmas celebrations, and the holiday music associated with them, last for months. Such is life in the Philippines, where Christmas songs are played from Sept. 1 through the holiday itself, generating good cheer — and royalties for rightsholders — for almost a full third of the year.
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The global pattern of Christmas music consumption is that countries with colder weather start listening to it earlier, which generally translates into more streams, according to internal data from a major label shared with Billboard. The Philippines is the giant exception.
The country, which has a population of 109 million — a bit less than a third that of the U.S. — was the sixth biggest market for holiday music for Spotify in 2021, according to the company, after the U.S., Germany, the U.K., Canada and Sweden. (This data is skewed by the popularity of Spotify itself in various markets, and it and YouTube are the dominant platforms in the Philippines.) It’s also Sony’s sixth biggest market for streaming holiday catalog music, according to that company. In general, the Philippines is the 32nd-biggest market for recorded music revenue, according to the trade organization International Federation of the Phonographic Industry (IFPI).
One reason for the popularity of Christmas music in the Philippines is that it’s a predominantly Roman Catholic country — the only one in Asia — because it was ruled Spain from the 16th century to the end of the 19th century. Later U.S. rule brought English and an immersion in American pop culture. One popular saying has it that the country spent “300 years in a convent, 50 years in Hollywood.”
The Christmas season traditionally starts in what Filipinos call the “ber” months — SeptemBER, OctoberBER and so on — when the weather turns a bit cooler and workers look forward to a bonus 13th month of pay.
“There’s a stereotype that we can all sing, and we have a very communal culture,” says Victoria Maria Malong, Warner Music Philippines’ marketing & audience engagement director, domestic. “So we have lots of Christmas parties, with lots of food and singing — sometimes drunken singing.”
The big Christmas hits in the Philippines are mostly the songs you would expect — there’s a lot of “lean-back listening,” driven by playlists, according to Sony. “In terms of Christmas songs, it’s mostly the same around the world,” says Enzo Valdez, managing director of UMG Philippines Inc. (Universal Music Group’s business there goes by that name, since there’s an independent label Universal Records in the country.)
There’s one major exception, in the form of Jose Mari Chan, a performer, songwriter, and businessman known as the King of Philippine Christmas Carols. Although music isn’t his main job — he also runs a sugar company owned by his family — Chan is one of the country’s iconic singers, who is known for holiday songs like “A Perfect Christmas” and especially “Christmas in Our Hearts.” His biggest Christmas album, Christmas in Our Hearts, came out on Universal Records — the local company — but is now distributed by Ingrooves, which is owned by Universal Music.
As the dominance of streaming drives Christmas recordings to the top of the charts every year in the Philippines, just as it does in the U.S., Chan has become an online harbinger of the season, albeit one that appears earlier than Mariah Carey. Memes of Chan peeking through an opening door start to appear around Sept. 1, and he has capitalized on this success. In a country where tours of malls are part of promotion and endorsements are an important revenue stream, Chan has signed a deal with Uniqlo that has him singing the chain’s Christmas jingle, and appearing at events.
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Playlist promotion works much the same as in other markets, and preparation for holiday music marketing starts in the summer. Sony Music has a Christmas music team with a core of eight to 10 executives that expands to about 30 internationally. “It’s international music and some of ours,” Malong says, “so it’s Mariah Cary and Jose Mari Chan and our challenge is to put [Warner Music Group artist] Michael Bublé into the conversation.”
Emerging local artists want to be part of that, too, and “we also have a lot of younger acts who are making new Christmas songs,” Valdez says. The duo Ben and Ben collaborated with Chan, and the young singer Juan Karlos has a new song, “Maligayang Pasko” (Merry Christmas in Tagalog, a dominant language), which came out November 10. Now, Valdez says, “Karlos plans to do a full Christmas album next year.”
Each week we’ll be sharing the most important news from the north with Canada’s top music industry stories, supplied by our colleagues at Billboard Canada.
For more Canadian music coverage visit ca.billboard.com.
Bryan Adams Splits With Longtime Manager
After a memorable handshake agreement in Vancouver 44 years ago, manager Bruce Allen and client Bryan Adams have broken up. As confirmed by a source with direct knowledge of the situation, Adams is now self-managing his career.
Bruce Allen
There has been no public announcement of the falling-out, but Bruce Allen Talent’s website no longer lists Adams as a client, and the “Run to You” rocker’s website similarly strikes any mention of Allen as his manager. Insiders say that Adams, short-term, is handling his own affairs.
Allen, now 78, has earned his mostly Canadian client list untold millions of dollars. Among them include some household names such as Bachman-Turner Overdrive, Loverboy and, more recently, Michael Bublé and Jann Arden.
The breach in the handshake agreement is believed to be over artistic direction, in particular Adams’ insistence on investing heavily in new music and videos in recent years. READ MORE
Spotify’s Global Job Cuts Hit Canada
On Dec. 4, Spotify announced it would be slashing its global workforce by 17%. Billboard Canada has learned that Nathan Wiszniak, Head of Artist & Label Partnerships at Spotify Canada, was among those laid off.
At the time of Spotify’s announcement, just a few days after unveiling its popular Spotify Wrapped campaign, it was unclear how many of the roughly 1,500 jobs cut would come from Canada. A spokesperson from Spotify Canada declined to share, but confirmed that Wiszniak was part of the layoffs.
Wiszniak has worked at Spotify Canada for nine years and was one of the founding members when the music streaming company expanded to Canada in 2014. In his role in Music Partnerships, he worked to promote Canadian music and artists and give them a global platform on Spotify.
“From the outset, my mission was to establish and promote an ecosystem that would propel the growth of our industry,” Wiszniak writes in an email to Billboard Canada.
Asked about his accomplishments, he highlights his role in championing Punjabi-Canadian artists like Ikky, Karan Aujla and AP Dhillon (all three appeared on Billboard Canada’s inaugural Punjabi Wave cover) and contributing to their exponential growth and in nurturing the early careers of breakout Canadian artists like Jessie Reyez, Daniel Caesar and Charlotte Cardin.
In the last two years however, he says, Wiszniak’s primary role has been “educating government stakeholders about the intricacies of streaming…during a regulatory phase that occurs once in a generation.” He’s likely referring to Bill C-11, the Online Streaming Act, which will update Canada’s media policy for the first time in decades. Spotify is at the heart of that bill’s implementation, which could require the company to make more direct and mandatory financial contributions to the Canadian music industry via government regulations.
On Nov. 30, just a few days before the layoff announcement, Wiszniak spoke at the Online Streaming Act hearings, arguing that “imposing initial base contributions on platforms before defining critical elements of the broadcast policy is premature, and risks overlooking the many ways that Spotify already contributes to and supports Canadian and Indigenous artists.” READ MORE
New IFPI Report Reveals Canadian Distrust of AI
The International Federation of the Phonographic Industry (IFPI) has released a new report detailing how music fans all over the world listen to music, with specific stats for participating countries. Music Canada has shared new data about Canadian listening habits from the report.
Most notably, it includes some vital Canadian perspectives on one of this year’s hot-button topics in the music industry: artificial intelligence. Many are not in favour, at least not of the wild west version of AI that has flooded the internet this year. 76% of Canadians believe that AI shouldn’t be employed to impersonate or clone a musician without their approval.
Even more Canadians — 85% — believe that music created solely using AI should be labelled as AI-generated, and also that human musicians are an essential part of music creation. The data indicates that in ongoing debates over the role of AI in music, Canadian consumers could support certain amounts of regulation and protections for artists.
AI music is already flooding streaming services, and Spotify allegedly removed tens of thousands of AI-generated songs from its platform earlier this year, to prevent those songs from acquiring fake streams and inflated royalties. Meanwhile, TikTok user @ghostwriter977 released an AI-created fake Drake and The Weeknd song earlier this year, gathering millions of streams before the song was taken off streaming platforms. According to the IFPI report, 77% of Canadians agree that AI systems should list which music has been used to train their tools.
The report included over 43,000 respondents from 26 countries, and concludes that globally, we’re listening to more music in more ways than ever. People around the world listen to an average of 20.7 hours of music per week — up from 20.1 hours in 2022 — and the use of paid streaming platforms is rising. For the 16-24 demographic, though, short-form videos are the top method of music listening, not audio streaming services.
On average, Canadians use 7.2 different methods to encounter music and hop between eight different genres. Half of Canadians subscribe to audio streaming services, while a quarter access music through unlicensed methods. In addition to how we listen to music, the report also highlights what music does for us: 83% of Canadians say that music is important to their mental health. READ MORE
Last Week’s Headlines: Top TikTok Tracks, Montreal’s Music and Noise Laws
The French government’s decision to impose a new tax on music streaming platforms will be highly damaging for the country’s music industry and sets a “dangerous precedent” for other markets, warn streaming executives opposing the levy.
France’s National Assembly officially approved the tax charges on Tuesday (Dec. 19) as part of the country’s 2024 finance bill.
It specifies that streaming services such as Spotify, Deezer and Apple Music earning above 20 million euros ($22 million) in annual turnover will have to pay a new tax charge of 1.2% on all streaming revenue generated in France in addition to their existing tax duties. Social media platforms like Facebook and TikTok which license and feature music will also be subject to the tax charges.
The money will be used to help fund a national body to support the French music sector, The Centre National de la Musique (CNM), which was created in 2020 and is already partly financed by the live music industry.
The new levy comes into effect from Jan. 1, although music streaming services are still waiting for confirmation of when the first payment will be due to the French authorities.
‘A REAL BLOW’
Deezer CEO Jeronimo Folgueira says the tax on streaming platforms’ earnings will have “negative consequences for the entire music industry in France.”
“It is the worst possible outcome of all the different scenarios that we could have ended up with,” Folgueira tells Billboard. “Adding taxes is the worst way of trying to support the industry. It sets a very dangerous precedent for other markets.”
In a statement, a spokesperson for Spotify France called the tax “a real blow to innovation, and to the growth prospects of recorded music in France.”
The company said it is “assessing the implications of such a tax” and “strongly remain opposed to this unfair, unjust and disproportionate measure.”
On Wednesday (Dec. 20), Spotify France announced that it was pulling financial support for two local music festivals, the Francofolies de la Rochelle and the Printemps de Bourges, to help offset the extra tax burden.
Plans to tax music streaming platforms’ earnings in France have long been mooted by authorities and were first proposed in April by then-senator Julien Bargeton, who initially suggested a tax rate of 1.75% for services like Spotify, Deezer, Apple Music, Amazon Music and YouTube Music to support the French music industry.
In response, streaming executives and stakeholders from across the country’s music industry put forward a number of alternative funding solutions, including making a voluntary annual contribution of 14 million euros ($15 million) towards The Centre National de la Musique.
Executives closely involved in those talks tell Billboard that the voluntary contribution proposal — which involved the participation of collecting societies and music producers and was tiered depending on a company’s business and turnover — received “near unanimous” backing from across the sector, apart from Amazon, which refused to commit. (Amazon Music, Apple Music and YouTube Music all declined or didn’t respond to requests to comment when contacted by Billboard).
With the music industry unable to agree on an alternative offer, the French Senate voted in November to approve the new tax measures, which were formally ratified earlier this week.
TAX BURDEN
President Emmanuel Macron’s decision to tax music streaming companies to fund cultural programs follows the same principles the country already applies to the film industry. For many decades, the French government has imposed a tax levy on cinema ticket sales (currently amounting to 10.7% of the ticket price) to fund public body The French National Centre of Cinema (CNC).
Since 2010, publishers and distributors of television services, including streaming platforms like Netflix and ad-funded videos platforms such as YouTube, as well as DVD and Blu-Ray retailers, have paid a similar mandatory contribution set at 5.15% of turnover.
Like its cinema counterpart, funding for The Centre National de la Musique will come from across the French music industry, but executives at Spotify and Deezer believe it places an unfair burden on streaming companies who already pay out around 70% of their revenues to rights holders alongside their existing tax commitments in France. They include sales tax (VAT) at 20% and a 3% tax on digital services.
At present, the French live music industry pays a higher rate of tax contribution (3.5% on concert tickets) towards the CNM, but ticketing companies pay a lower rate of VAT sales tax (around 5%) compared to digital music platforms.
Physical music retailers, recording studios, radio services and labels are exempt from paying the new 1.2% levy.
“We’re not questioning the need to finance The Centre National de la Musique or be taxed. What we’re questioning is the decision to only target one distribution format – DSPs,” says one France-based music executive, speaking to Billboard anonymously.
Folgueira says the tax unfairly impacts on European streaming platforms like Deezer and Spotify, which have heavily invested in developing the local market, and disproportionately advantages American tech giants like Google, Apple and Amazon who have a smaller on-the-ground presence and “can easily absorb the costs.”
Paris-based Deezer is the market leading subscription streaming service in France and generates around 60% of its 451 million euros ($478 million) yearly revenue in the country. A tax rate of 1.2% on domestic turnover works out at around 3.2 million euros ($3.5 million), according to Billboard’s calculations.
CUTS COMING?
Folgueira says the new tax burden could possibly mean that Deezer is forced to pass on the extra costs “along the value chain,” which could include reviewing agreements with labels and rights holders.
The CEO says that it’s likely to mean Deezer cutting spend on domestic music projects and marketing, while price rises for subscribers is another possible outcome. “None of which is a good outcome for boosting the French market,” cautions Folgueira.
France is the world’s sixth largest recorded music market with €920 million in revenue in 2022, up 6.4% on the previous year, according to IFPI’s Global Music Report.
Folgueira’s concerns are shared by executives at Spotify. Speaking last week to local news network France Info, Antoine Monin, director general of Spotify France said that the company will reduce its investment in the market as a result of the taxes and said “France will no longer be a priority for Spotify.”
Billboard understands that Spotify France will be making further cost saving announcements in the coming weeks with subscription price rises among the options on the table.
Confirmation of a new tax charge for streaming companies in France comes at a pivotal time for Spotify, which posted an operating profit of 32 million euros ($35 million) in the third quarter of 2023 but has also undergone three rounds of job cuts this year.
Earlier this month, Spotify co-founder and chief executive Daniel Ek announced that the company was to close more than 1,500 posts internationally, representing around 17% of its global workforce.
“For many months now, we have been denouncing the risks underlying the creation of such a tax, particularly in terms of the loss of attractiveness for platform investments in France,” says Alexandre Lasch, managing director of French labels body SNEP. “It is precisely the artists produced in France who will be the victims.”
Despite streaming companies’ opposition to the levy, other sectors of France’s music business have welcomed the increased funding towards domestic culture.
Guilhem Cottet, managing director of the French association of independent music companies UPFI, says the establishment of a mandatory contribution to the CNM from streaming companies will help drive diversity and innovation in the sector.
“The current remuneration model is unjust towards a lot of musical genres which are not heavily listened to by young people — mostly rap and electronica — in France. And if there’s no decent remuneration, labels will cease producing these genres,” says Cottet.
“The tax is a regulation tool to ensure the CNM is able to finance them and make sure diversity prevails.”
Vinyl Group announced on Thursday a binding agreement to acquire The Brag Media, publisher of Australian and New Zealand editions of Rolling Stone and Variety, as well as publisher of its own tiles including TheBrag. com, Tone Deaf and industry news outlet The Music Network.
The proposed takeover of Brag Media, pending certain conditions and expected to close by Jan. 31, is being funded by an $11 million AUD ($7.5 million USD) round of investment in Vinyl Group by billionaire Wisetech Global chief executive Richard White, who when completed will own more than a third of the ASX-listed business. With funding in place, Vinyl Group’s purchase of 100% of Brag Media will break down as $8 million in cash and a further $2 million in deferred compensation through cash or stock.
Brag Media originated as Seventh Street Media in 2017, launching local trade outlet The Industry Observer and youth-focused title Don’t Bore Us, before rebranding as The Brag Media in 2019 — the same year it partnered with Billboard parent Penske Media to launch Rolling Stone Australia. Brag also represents the digital audiences in the market for Billboard and The Hollywood Reporter, as well as Rotten Tomatoes, Hypebeast and others. In 2022, Brag bought The Music Network and shuttered Industry Observer. Based on unaudited figures disclosed in the announcement, The Brag Media generated $8.39 million in revenue in its current fiscal year, generating a net profit of $334,824.
Once the acquisition is complete, Brag Media’s portfolio will join a Vinyl Group that also includes music credits specialist Jaxsta, social networking platform Vampr and online record store Vinyl.com. As part of the deal, Brag Media’s co-founder and CEO Luke Girgis is set to remain as publisher and managing director of the company’s publishing business.
“Vinyl Group’s suite of products work together to empower participants of the music ecosystem and reach all corners of the creator economy, and we can’t wait to start working with the iconic mastheads that Luke and The Brag Media have successfully developed in Australia,” said Vinyl Group CEO Josh Simons, who took over the top job in late June following the departure of Beth Appleton. “We’ve identified several impactful synergies between the two businesses that will deliver immediate cost efficiencies and revenue, including streamlining Vampr’s in-app ads business and leveraging The Brag Media’s impressive audience reach to bolster Jaxsta, Vinyl.com and Vampr in the market.”
Girgis added that he “couldn’t be happier about” the consolidation. “Right from the earliest discussions we had, it was clear that the Board, Josh and the team shared our vision for the future of the business, and I’m thrilled that they’ve made this commitment with us.”
White said there is “no doubt that iconic brands like Rolling Stone and Variety make sense and add value to VNL. Combined under the leadership of Josh and Vinyl Group, the consolidated business and team will have a lot more growth levers and options.”
Vinyl Group is Australia’s only ASX-listed music business and trades under the ticker code VNL (it was JXT before a recent parent company name change). Its share price jumped 22% to .055 following the acquisition announcement.
In the 36 years since The Pogues released the band’s now-seminal “Fairytale of New York,” the acerbic holiday classic has occupied every single position on the Official U.K. Singles Chart’s top 20 — except for No. 1.
If there was ever a year when that changed, this would be it.
Following frontman Shane MacGowan‘s death on Nov. 30, “Fairytale of New York” is once again in the running for the coveted top spot on the annual “Official Christmas Number 1” chart put out by the U.K.’s charts organization, The Official Charts Company (OCC). On Monday, the track was No. 5 on the preliminary Christmas chart, which closes at midnight on Thursday (Dec. 21); the winner will be announced on BBC Radio 1’s The Official Chart show the following day. A mix of fan engagement and label strategy may push it up the ranking — but, as in previous years, the song faces strong competition, and a fairy tale ending is far from guaranteed.
“It’s going to be very, very tight this year and it’s not really until the week itself that you can tell who the main contenders are going to be,” says Martin Talbot, chief executive of the OCC.
Sales for MacGowan’s duet with Kirsty MacColl, co-written with Jem Finer, climbed to 77,000 in the week after MacGowan’s death, a rise of 170% from the week before, according to the OCC.
U.K. streams of “Fairytale of New York” crossed 9 million over the same period, reports OCC, giving the song its biggest-ever streaming total in the country outside the Christmas period. Total U.K. streams over the past month stand at just under 23 million, up 13% on average compared to the same period over the past five years.
The singer’s death also saw several covers of the song generate renewed traction on TikTok — including clips of Ed Sheeran, Saoirse Ronan and, of course, Travis Kelce, who recently earned his first Billboard chart-topper with “Fairytale of Philadelphia,” a spoof on The Pogues’ original version featuring his brother, Jason Kelce.
Despite the song’s New York setting and memorable black and white video (featuring a cameo from Pogues fan and Hollywood star Matt Dillon), “Fairytale of New York” has proved considerably less popular in the United States, where it has never reached the Billboard Hot 100. It has charted on Billboard‘s Holiday Digital Song Sales chart, climbing to a new peak of No. 16 in the wake of MacGowan’s passing (on the chart dated Dec. 9, 2023). According to Luminate, “Fairytale of New York” also earned just under 400,000 on-demand U.S. streams the day MacGowan passed (Nov. 30), marking a 227.2% increase in streams from the day prior.
Tom Gallacher, the London-based senior director of digital and marketing at Warner catalog imprint Rhino Music, which owns the worldwide rights to The Pogues’ repertoire, including “Fairytale of New York,” says that organic searches for the song and the group’s catalog on streaming services were “significantly up” across multiple markets in the week following MacGowan’s passing, with the biggest surges taking place in the United Kingdom and Ireland. (The song returned to No. 1 in Ireland in early December).
In tribute to the late frontman, who was born on Christmas day 1957 and died from pneumonia in a hospital aged 65, Rhino is re-releasing “Fairytale of New York” on 7-inch vinyl (limited to 5,500 copies) in the United Kingdom, with all proceeds going to homeless charity Dublin Simon Community. The direct-to-consumer release shipped on Monday (Dec. 18), meaning that those sales will count towards the all-important Christmas week tally.
“When you have a very tight chart race, physical product can make the difference,” says Talbot. “It also acts as a good marketing tool, reminding people about a record.”
MacGowan’s widow, Victoria Mary Clarke, has meanwhile given her backing to a fan-led social media campaign to get the song to No. 1 almost four decades after it was first released in 1987.
“Fairytale of New York” propelled The Pogues to a new level of mainstream success and is the band’s highest charting song to date; when it peaked at No. 2 on the U.K. chart, it was behind only the Pet Shop Boys‘ version of “Always On My Mind.”
The song served as a single from the Pogues’ 1988 album If I Should Fall From Grace With God — which became their highest-peaking entry on the Billboard 200, at No. 88 — and is routinely voted the U.K. public’s favorite Christmas song in polls.
Despite its enduring popularity, “Fairytale of New York” has also generated controversy over the years concerning its lyrics, in particular the Kirsty MacColl-sung line “You scumbag, you maggot, you cheap lousy fa–ot.”
Shane MacGowan of The Pogues performs at 02 Arena on December 20, 2012 in London, England.
Caitlin Mogridge/Redferns/Getty Images
In 2007, BBC Radio 1 announced that it would be bleeping out the slur to avoid offending listeners before immediately reversing its decision following complaints by fans and MacGowan’s mother, Therese.
In 2020, the BBC Radio 1 again announced that it would play a censored version of the track with the offending word, along with “slut,” removed. In response, musician Nick Cave accused the broadcaster of “mutilating” the festive classic.
Addressing the issue in 2018, MacGowan said that the words were not intended to offend but reflected the language that the song’s female character — “a woman of a certain generation at a certain time in history… down on her luck and desperate” — would use.
“Sometimes characters in songs and stories have to be evil or nasty in order to tell the story effectively,” said MacGowan.
Currently leading the race for the U.K. Christmas No. 1 is pop duo Wham!, whose evergreen 1984 single “Last Christmas” has spent the past two weeks at the top of the British charts.
The Yuletide-themed George Michael and Andrew Ridgeley song first went to No. 1 on New Year’s Day 2021, at the time breaking a chart record — now held by Kate Bush‘s “Running Up That Hill” — for the longest time a track has taken to top the U.K. singles chart.
“Last Christmas” has now topped the Official U.K. Singles Chart on five non-consecutive occasions, but never on the “Official Christmas Number 1” tally — traditionally seen as the most coveted chart position in the U.K. music industry.
To give “Last Christmas” a final push, Wham’s label, Epic, is releasing a limited-edition vinyl version of the track as well as a CD single release, complete with download promotion.
Hot on Wham’s heels is U.K. Eurovision 2022 entry, Sam Ryder, whose original song “You’re Christmas To Me” (East West/Rhino) climbed eight places to No. 2 in the first 48 hours of the current Dec. 15-21 chart week.
Other front runners include Mariah Carey‘s “All I Want For Christmas Is You” (currently No. 3 based on preliminary sales), Ed Sheeran and Elton John‘s “Merry Christmas” (No. 4), Noah Kahan‘s “Stick Season” (No. 6) and British TikTok collective Creator Universe’s charity fundraising cover of Wizzard‘s “I Wish It Could Be Christmas Everyday,” which is just outside the top 10.
If “Fairytale of New York” does finally top the charts on Friday it would be a “beautiful and fitting” tribute to the late singer, reflects Gallacher, who says MacGowan’s best-known song continues to resonate with audiences because “it goes beyond the usual saccharine sentiment of a lot of Christmas songs.”
“It’s totally unique,” adds Mike McCormack, U.K. MD of Universal Music Publishing Group, which represents “Fairytale of New York” on the publishing side.
“Only a lyricist as gifted and uncompromising as Shane could have written a Christmas song so joyfully sad and unconventional,” McCormack continues. “It’s the antithesis of all the other mainstream perennial hits but is honest and heart-warming… I don’t think it’ll ever be beaten as the greatest Christmas song.”
One of Ibiza‘s most fabled clubbing institutions is under new ownership.
As was rumored this past summer, Pacha Group — which includes the Ibiza flagship club, two hotel island hotel properties and clubs in Barcelona and Munich — has been acquired by FIVE Holdings, the Dubai-based hospitality and real estate group. FIVE encompasses a namesake hotel brand with two locations in Dubai and a property in Zurich, with a third Dubai property currently under construction.
FIVE Hospitality and The Pacha Group CEO Aloki Batra tells Billboard that FIVE’s acquisition of The Pacha Group is worth approximately $330 million, and that conversations regarding the sale started nearly two and a half years ago at an event in Mykonos.
The Pacha Group was previously owned by the private equity firm Trilantic Capital Partners, which acquired the brand in 2017. A representative from Trilantic declined to comment on the sale.
Batra says that as part of the transfer of ownership, Pacha Ibiza will see some light changes, including improvements to the lighting system, slightly expanded VIP areas, enhanced production elements and improvements to the club’s “digital footprint” including systems to track attendance through NFT wristbands.
“If [you’ve] been to been to five or six shows, the next time you show up, we should know that. Now it’s just blind,” says Batra. “[We plan to] increase the quality of experience by getting to know our fans a lot better and then [determining] how we can engage with them and make them feel special.” Batra adds that there’s been a “full continuity” of staff at the club amid the change in ownership.
Batra says FIVE is also looking at ways to revive the club’s longstanding record label, Pacha Recordings with pre-recorded DJ sets delivered to fans globally on DSPs.
“[We’re] definitely looking at that that very seriously,” Batra says. “We have this rich legacy and need to take it ahead for the digital age and the customer of today. I think that’s a huge opportunity for us, and it’s great for the fans, because we intend to bring your favorite club closer to you.”
While programming at the club will remain largely the same — including Solomun’s iconic Sunday night residency — Batra says the plan is to also make offerings “a bit more reggaeton-ey” for the 2024 season. “There’s a lot of demand for it and we’re looking to address that demand,” he says, noting that Maluma and J Balvin have previously performed at Pacha Ibiza. “We want to be well represented in the reggaeton world… We think there’s definitely a trend in that direction.”
The acquisition marks FIVE’s first properties in Ibiza, with the deal also encompassing the resorts El Hotel Pacha Ibiza and Destino Pacha Ibiza. Located approximately 15 minutes north of the club, this latter property will see a series of what Batra calls “significant upgrades” and officially become a FIVE branded property in 2025.
He says that while the Ibiza market is highly competitive, visitors to the island now often come more and stay longer, creating opportunities for property owners. He adds that the same demographic that visits FIVE resorts in Dubai are also likely to travel to Ibiza.
Pacha Ibiza opened in 1973 and, 50 years later, hosts some of the biggest DJs in the world. Batra emphasize that while other clubs in the market offer “a show with a big DJ set” Pacha is still focused on throwing “a party with the DJ right at the center.”
To wit, FIVE will maintain Pacha’s ” bohemian artistic direction…[The plan is] not more pyrotechnics as far as we’re concerned,” says Batra. “We’re more about the party, the atmosphere and enhancing that experience [and not having] people pull out their mobile phones for the entirety of the set.”
“We’re buying into a real legacy,” Batra adds. “It’s one of the greatest entertainment brands out of Europe at the forefront of dance music and culture. The relationship between the success of Ibiza and the success of Pacha is very intertwined; I think it’s almost a definitive story of Ibiza… So it’s very exciting to have an opportunity to be part of this great story and navigate it into a blissful future.”
Hipgnosis Songs Fund has announced a last-second delay in publishing interim results for the six months ended Sept. 30, citing concerns over its valuation following a series of hiccups for the Merck Mercuriadis-led company.
The fund, which owns full or partial rights to the song catalogs of artists ranging from Justin Bieber, Neil Young, Bruno Mars, Jimmy Iovine, 50 Cent, Shakira, Blondie, Justin Timberlake, Lindsey Buckingham and many more, was scheduled to publish it financial results on Tuesday (Dec. 19) but now expects to announce on New Year’s Eve, according to a regulatory filing.
In explaining the delay, the Hipgnosis board said the valuation it received from an independent firm was “materially higher than the valuation implied by proposed and recent transactions in the sector,” namely two deals involving itself: a proposed $417.5 million sale of 29 catalogs to Blackstone-backed Hipgnosis Songs Capital, a price reflecting a 24.3% discount from a valuation dated March 31, and last week’s sale of 20,000 “non-core songs” to an undisclosed buyer for $23.1 million, which it said reflects a 14.2% discount on the songs’ valuation as of early fall.
Due to the disparity between the independent valuation and the “implied” one tied to recent trends and proposed sales, the board sought advice from its in-house investment advisor, Hipgnosis Song Management Limited, which delivered a “heavily caveated” opinion that led to the board’s concerns as to the valuation of HSF listed in the interim results scheduled to be disclosed today.
Hipgnosis is comprised of three companies: Hipgnosis Song Management, Hipgnosis Songs Capital and Hipgnosis Songs Fund. The latter of the three has been mired in controversy in recent months after it was announced that the London-listed trust would not pay its investors a dividend because of new, lower projections for revenue. On Oct. 26, investors of the fund overwhelmingly demanded structural changes to the music rights company, with more than 80% of Hipgnosis investors voting in favor of the board drawing up “proposals for the reconstruction, reorganization or winding-up of the company to shareholders for their approval within six months.”
Last month the company announced that the fund will not declare dividends before the new fiscal year, which begins next April, in order to ensure it has enough on its balance sheet to pay contractually-mandated catalog bonuses.
Investors are still processing the news, with the company’s stock only slightly down, roughly 2%, in mid-day trading on the London Stock Exchange.
When Frances Moore started in the Brussels office of The International Federation of the Phonographic Industry (IFPI) in 1994 as regional director for Europe, the trade organization represented six major labels that made most of their money selling CDs – and mostly in Europe and the U.S. When she retires at the end of this year, she will leave a business with three majors that’s truly global and focused on streaming. In between, Moore scored some of the key policy wins that made that happen, especially since ascending to the top job in 2010. She also transformed IFPI into a global force and served longer as CEO than any of her predecessors.
Moore started just as the major labels and other media companies began pushing for laws to protect digital content – an effort that ultimately resulted in the 1998 Digital Millennium Copyright Act in the U.S., and the 2001 Copyright and Information Society Directive in the European Union. One of her major achievements was IFPI’s passage of the 2019 copyright directive that addressed some of its shortcomings by tightening up some of the safe harbor rules that created a “value gap” between what rightsholders made from licensed services like Spotify and what they got from user-upload-fueled services like YouTube. In between, she led IFPI efforts to extend the term of copyright protection for recordings in Europe and establish a public performance right for recordings in China, plus strengthened IFPI’s operations in markets that barely existed when she started at the organization three decades ago.
You announced in July that you would retire at the end of the year, but some executives can’t quite picture that – you have a reputation for working extremely hard. What are your plans?
I can’t really picture me retiring, either! Come the first of January, I’ll tell you the answer. I’ll take a rest at the beginning and see what happens afterwards.
You’re leaving an organization that’s much more international than the one you joined in 1994.
When I joined, the two big markets were Europe and the U.S., and the bulk of the industry’s revenues came from those two places – the other territories were much smaller. But IFPI was always an international organization: There was already an office in Hong Kong and two small offices in China, so it was more a question of how you brought everyone together.
You started in Brussels and played a major role in building up the organization there.
There was a Brussels representation [when I started] but they didn’t really have U.S. [style] lobbying and that’s what I brought to build a campaign for the [2001] copyright directive. Back in the ‘90s, Europe had a lot to learn about lobbying. I remember suggesting to one of the major national groups that they bring in a lobbyist and they were shocked. It was as if I had suggested bringing in a lady of the night. Lobbying wasn’t seen then as a clean profession.
You started at IFPI right before the first copyright directive and one of your big accomplishments as CEO was to get the 2019 copyright directive passed. That was supposed to address some of the issues with the first one, but the implementation of it in different EU countries has varied. How do you see that?
For the first copyright directive, we built something at the European level that we never had before – we had 32 organizations working together from books, film, music, you name it. In implementing the WIPO treaty, we had a good, strong directive that let companies go online with confidence. When it came to the second one, the issue was what we called ‘the value gap’ [the difference between what it cost companies to license content and how little some of them were paying to use it]. Companies were doing deals with one hand tied behind their back. That was a hard campaign to fight, not because of the arguments – people could see that – but because we had huge opponents. Now some of these companies we work with and they’re a part of the success of the music industry. But as far as EU Parliament, they said this was the hardest-fought campaign they ever had to deal with. Luckily, they came through in the end.
In theory, you got what you needed. But the directive was implemented quite poorly in some countries, especially Germany.
There are 27 countries and there’s one that hasn’t implemented it yet – Poland. But Donald Tusk [who became Polish Prime Minister on December 13], will make sure it’s implemented. In most countries, it has been done faithfully. In Germany and in Belgium, we had problems and we’re taking it to court. But it was a signal more than anything else. To some degree, once it was adopted, the tech companies realized that they had to do what it was asking for.
What do you consider your biggest accomplishment?
I think my biggest accomplishment was putting together an A-level team. I don’t like the cult of personality – everything we do, we do as a team.
Your job is like herding cats – there are the national recording business organizations and the major labels – now small, medium, and large. It’s a very tough act to follow.
The job isn’t to be an expert in legal policy – the job is to hold the ball tight and keep running forward. There’s a global search [for a successor] and I think we’ll be able to announce the person shortly, and I wish that person all the best. The most important thing is that the companies speak with one voice – then everything else becomes easier.
Frances Moore and Taylor Swift
Dave J Hogan/Getty Images
You’ve had support on policy issues over the years from some very famous artists. Did you ever get starstruck?
I’m a Scottish rationalist – I don’t do starstruck. We have this program, Friends of Music, when artists come to the Parliament and they perform, and it moves you. I remember Jamie Cullum was performing in Strausberg [Germany] and at one point he stopped playing on the keys of his piano and just strummed on the wood. It was pure music. I don’t get starstruck but I get impressed beyond belief with talent.
You are leaving an organization that’s much more diverse than the one you joined in 1994. For example, you have women regional directors in Sub-Saharan Africa, the Middle East and North Africa (MENA) and Latin America. Was that a priority for you?
That was the state of the world [in 1994] – it wasn’t just the recording industry. In my case, there was never a point of saying I’m going to recruit a woman – you can only put together an A-level team if you choose the best candidates. We have six regional teams, and three are led by men and three are led by women. That’s balanced but not deliberately balanced – it just worked out that way.
What’s going to be the most important priority for your successor?
AI, because if you don’t get it right, it could decimate the industry. That’s the big one. There are some technology companies saying that there are text and data mining exceptions and we fit in there, so we don’t have to respect copyright. Wrong.
The European Union is looking into whether Elon Musk’s online platform X breached tough new social media regulations in the first such investigation since the rules designed to make online content less toxic took effect.
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“Today we open formal infringement proceedings against @X” under the Digital Services Act, European Commissioner Thierry Breton said Monday in a post on the platform formerly known as Twitter.
“The Commission will now investigate X’s systems and policies related to certain suspected infringements,” spokesman Johannes Bahrke told a press briefing in Brussels. “It does not prejudge the outcome of the investigation.”
The investigation will look into whether X failed to do enough to curb the spread of illegal content and whether measures to combat ” information manipulation,” especially through its crowd-sourced Community Notes fact-checking feature, were effective.
The 27-nation EU also will examine whether X was transparent enough with researchers and will look into suspicions that its user interface, including for its blue check subscription service, has a “deceptive design.”
“X remains committed to complying with the Digital Services Act, and is cooperating with the regulatory process,” the company said in a statement. “It is important that this process remains free of political influence and follows the law. X is focused on creating a safe and inclusive environment for all users on our platform, while protecting freedom of expression, and we will continue to work tirelessly towards this goal.”
A raft of big tech companies faced a stricter scrutiny after the EU’s Digital Services Act took effect earlier this year, threatening penalties of up to 6% of their global revenue — which could amount to billions — or even a ban from the EU.
The DSA is a set of far-reaching rules designed to keep users safe online and stop the spread of harmful content that’s either illegal — such as child sexual abuse or terrorism content — or violates a platform’s terms of service, such as promotion of genocide or anorexia.
The EU has already called out X as the worst place online for fake news, and officials have exhorted owner Musk, who bought the platform a year ago, to do more to clean it up. The European Commission, the EU’s executive arm, quizzed X over its handling of hate speech, misinformation and violent terrorist content related to the Israel-Hamas war after the conflict erupted.
Each week we’ll be sharing the most important news from the north with Canada’s top music industry stories, supplied by our colleagues at Billboard Canada.
For more Canadian music coverage visit ca.billboard.com.
PARTYNEXTDOOR’s Decade-Old Track Tops Canada’s TikTok Year-End
Every year, TikTok takes a look back at the songs and creators that made a mark on the year. At times, it feels like an alternate dimension.
The most popular TikTok song in Canada this year belonged to PARTYNEXTDOOR – no doubt a major hip-hop and R&B artist. However, the version of the Canadian star’s 2014 song “Her Way” that tops the list is not the original, but a sped-up version attached to a dance challenge.
“The song’s accelerated tempo seemed to resonate perfectly with the fast-paced, dynamic nature of TikTok,” says Kat Kernaghan, Head of TikTok Music Canada. “It’s not just about consuming the music; it’s about actively participating in the creative process.”
Many of the biggest songs on the social media platform were the ones that people interacted, memed and played with the most. That can resurrect an older song, like Justin Bieber’s “Beauty and a Beat,” which was released over a decade ago in 2012.
Here’s the full list of most popular songs on TikTok in Canada this year:
When it comes to the most popular artists on TikTok in Canada this year, it’s an interesting mixed bag. Tate McRae is on the list after a year that saw her transcend social media onto the stage of SNL and the cover of Billboard. Artists like Lauren Spencer Smith, Alexander Stewart and Faouzia made intimate and emotional music that people related to so much they had to use the sound. Others, like Tiagz, blurred the lines between “creator” and “artist,” making content designed to go viral first, then chart later.
Find the full list here.
Why Changes Could Be Coming to Montreal’s Music and Noise Laws
Montreal venue owners have been making noise about existential threats to their businesses. Now, the City of Montreal says a new nightlife policy will make changes to how noise is regulated in the city.
On Nov. 20, Sergio Da Silva incited a conversation about noise complaints when he posted a screenshot of a message recently received by Turbo Haüs, a long-running rock venue he co-owns located in Montreal’s Quartier des Spectacles entertainment district.
In French, the message informs Turbo Haüs that they may be subject to a fine of up to 12,000 Canadian dollars ($8,950) because noise from the venue was audible in a nearby residential region.
Turbo Haüs is far from the only venue affected by noise complaints in Montreal.
Prominent venue The Diving Bell Social Club, is currently preparing to close down this month, in part due to complaints the venue says they’ve received from a neighbouring landlord.
Responding to questions about noise complaints, Julien Deschênes — a political aid for the City of Montreal — tells Billboard Canada that a new nightlife policy is currently under development at the city, and should be ready for city council approval in January. The policy, Deschênes says, will seek to implement the “agent of change” principle, which puts the burden on new buildings that go up near commercial establishments to adapt to the existing noise in the area and not vice versa.
Deschênes says that the specific framework is not yet finalized, but that the policy will aim for implementation in the Ville-Marie borough, home to Turbo Haüs, as well as Plateau-Mont-Royal, where The Diving Bell is located.
Montreal has a reputation for supporting arts and culture — launching the careers of Canadian stars like Kaytranada and Grimes just in the last decade — but as rents rise, new developments go up, and the city landscape changes, artists and cultural workers are raising concern about the future of the city’s venues. READ MORE
SOCAN Foundation Announces Winners for 2023 Black Canadian Music Awards & Young Canadian Songwriters Awards
The SOCAN Foundation has announced the five winners of its fourth annual Black Canadian Music Awards, a group of rising talents in Canada’s music industry. Toronto hip-hop artist DVBLM; R&B singers Liza, Savannah Ré, and Myles Castello; and genre-hopping NAIIM take home $10,000 each as this year’s winners, with support from Sirius XM.
The awards, which were announced on Dec. 12, seek to recognize Black creators from all over the country. They’re determined by a jury of Black artists and industry experts from a pool of applicants.Honourable mentions for this year’s awards went to Eleanor, Tona, Kirk Diamond & FINN, Mah Moud and Ryan Ofei.
The SOCAN Foundation also just announced winners for another awards program: the Young Canadian Songwriters Awards.
The winners include seventeen-year-old Sofia Kay, who recently helped K-POP group Tomorrow x Together hit No. 1 on the Billboard 200, co-writing their single, “Sugar Rush Ride.”
The winners of that award are:
Andelina Habel-Thurton for “Le grand retour de l’insomnie”
Brighid Fry (a.k.a. Housewife) for “Matilda”
Elizabeth Royall,for “Numb”
Fin McDowell for “People I Barely Knew”
Sofia Kay, for “Fuu”
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