State Champ Radio magazine
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This fall, Irish singer-songwriter Hozier is hitting the road for a full U.S. tour — his first outing post-pandemic. Following a handful of warmup dates at smaller venues stateside and overseas, his Unreal Unearth tour (in support of his long-awaited third album, of the same name, released Aug. 18) will bring him and his new backing […]
Although Carlos Vives is best known for popularizing Colombian music worldwide, his activities include multiple ventures in his homeland that collectively employ some 250 people.
The singer and his wife, Claudia Elena Vásquez, call their overall enterprise Universo Vives. “We have interplanetary meetings,” jokes Vásquez, who has worked alongside her husband since 2012 and is CEO of the entity.
While Vásquez, a former chemical engineer and entrepreneur, readily admits she “didn’t know much about the music business” before, she has come to effectively oversee this particular universe. The ventures include:
Gaira Música Local Although Vives founded his own record label (named after an area near his hometown of Santa Marta) over 30 years ago, he relaunched it in 2019 with local artists like Gusi and Estereobeats. Gaira, distributed by The Orchard, also releases one-off projects, like Vives’ 2008 album, Pombo Musical, and helps curate artist performances at Cumbia House.
Cumbia HouseFormerly known as Gaira, this successful bar, restaurant and live music club launched in 1998 and has become a must-visit in Bogotá that also houses Vives’ recording studios. A business with 170 employees, it also has franchises at airports in Bogotá and Medellín.
Río Grande Music SchoolLaunched in 2016, the Bogotá school educates children ages 6 to 18 “with the purpose of teaching them how to be original in music without biases,” according to Vásquez. The school has 200 students, with plans to expand its size and provide scholarships for needy children.
Tras La Perla Vives has long supported myriad causes. But his Tras la Perla foundation, created in 2015 and based in Santa Marta, is focused on giving back to the neighborhoods his father introduced him to as a child, particularly El Pescaíto. The low-income historic area is the birthplace of some of Colombia’s top soccer players, “and we think it has great tourism potential,” Vásquez says. “Our goal is to improve Pescaíto and provide infrastructure. We wanted to bring together people who love this city and build projects around it.” With funding support from the private and public sectors, as well as Vives himself, Tras la Perla has finished projects including a House for Dance, a “spectacular” toy library, reading clubs and multiple initiatives in association with Magdalena University, Vásquez says. The venture has also worked to improve infrastructure in Santa Marta’s palafitte townships, where homes are built on stilts over water.
This story originally appeared in the Aug. 26, 2023, issue of Billboard.
Several highlights mark Carlos Vives’ year-long celebration of his three-decade musical career.
In April, the Colombian superstar released Escalona Nunca Se Había Grabado Así, an album that unites the members of his original band — La Provincia — and his longtime accordionist, Egidio Cuadrado, to revisit some of legendary vallenato artist Rafael Escalona’s biggest hits.
In May, Vives launched El Tour de Los 30 to celebrate the 30th anniversary of his breakout album, Clásicos de la Provincia. The outing appropriately kicked off at Colombia’s Vallenato Festival in Valledupar (the Colombian city known as the birthplace of the music that defines Vives’ style), then went through South America. A nine-city U.S. run began Aug. 19 in New York and ends Nov. 5 in Los Angeles.
“He’s undeniably one of the most beloved artists and influential Latin music figures of our time,” says Nelson Albareda, CEO of Vives’ U.S. tour promoter, Loud and Live. “This tour is particularly special because it pays homage to his incredibly innovative 30-year journey of his unique blend of traditional Colombian rhythms with contemporary sounds, which made him a global ambassador of Colombian music.”
During his U.S. tour, Vives will also play a landmark free show on Oct. 14 at Madrid’s Puerta de Alcalá, where tens of thousands are expected. Vives is inviting some of his many Spanish artist friends to perform with him.
The full-circle moment extends to recordings as well. Later this year, Vives will release an album with remastered versions of hits from 1993’s Clásicos de la Provincia and 2009’s Clásicos de la Provincia II. Singles with Juanes and Ryan Castro will precede the set.
And, ever in love with audiovisual content, Vives can be found on Disney+ starring in the musical comedy series The Low Tone Club, for which he plays, aptly, a music teacher with unconventional methods. He also is taping a docu-film about his life that includes archive and touring material, as well as scripted scenes.
This story originally appeared in the Aug. 26, 2023, issue of Billboard.
Little more than a decade ago, Carlos Vives’ career was on the verge of oblivion.
In the late 1990s and early 2000s, he had been one of Latin music’s biggest global stars, with hit albums, sold-out arena tours and a thriving TV presence, thanks to his telegenic looks.
But by 2012, he hadn’t had a recording contract for eight years, had no touring plans or publicist and had split with his management after years of inactivity. Vives remembers picking up the phone and dialing the president of one of the labels where negotiations had stalled.
“He told me, ‘There is nothing we can do for you,’” Vives recalls.
Then, at age 51, Vives staged one of the most remarkable comebacks in Latin music history. He signed a new recording deal with Sony, landed his first No. 1 on Billboard’s Hot Latin Songs chart in nearly a decade — the aptly titled “Volví a Nacer” (I Was Born Again) — and, six months later, earned a No. 1 on Top Latin Albums, his first in nearly a decade, with Corazón Profundo.
Vives has flourished since — as a recording artist, as a touring performer, and, perhaps most importantly, as the de facto keeper of Colombia’s most beloved musical traditions. Widely recognized as the person who took authentic Colombian rhythms like cumbia and vallenato to a global stage, Vives also opened the door to the internationalization of Colombian music, leading to the success of fellow Colombian artists like Maluma, Shakira, Juanes, Fonseca and Feid.
“The most beautiful and magical thing about Carlos is that he behaves as if he started his career today,” says Sony Music Latin Iberia chairman/CEO Afo Verde, who signed Vives after his fallow period. “He respects everyone at every level in the industry. He’s the kind of icon who’s eternal.”
And this icon isn’t slowing down. Vives’ 2023 has included a 30-date tour, a starring role in the Disney+ series The Low Tone Club and the release of new album Escalona Nunca Se Había Grabado Así. He’s also prepping for massive concerts at Madrid’s Puerta de Alcalá in October and in Colombia in December, a testament to his cross-continental appeal.
“Carlos influenced my music in every way,” Maluma says. “My parents were huge fans. Thanks to him, Colombian folklore is known worldwide. He has been a very big inspiration for us and will continue to be so. We owe our roots to Carlos.”
Vives started his career as a singer/TV actor, and he might have ended up doing run-of-the-mill pop had he not been cast in 1991 as the lead role in Escalona, a Colombian series based on the life of fabled vallenato singer-composer Rafael Escalona, who rose in the 1960s to become perhaps the most revered composer in the genre and whose songs remain classics today. On the soundtrack, Vives covered Escalona’s greatest hits in their traditional arrangements — and became an overnight sensation in Colombia and its neighboring countries.
Beyond stardom, the role sparked a quest. Born in Santa Marta, the second-oldest Spanish city in South America, Vives had grown up surrounded by the strains of vallenato, the Colombian coastal music built on accordion riffs and troubadour-style storytelling. At his childhood home, top vallenato artists regularly engaged in jam sessions with his father, a music-loving physician who had attended school with Escalona. In that music, often forgotten and undermined by the pop-loving elite, Vives found his calling.
In 1993, after moving to Bogotá following his parents’ divorce, he released Clásicos de la Provincia, a collection of vallenato standards recorded with a pop and rock sensibility that reflected Vives’ musical DNA as a son of Santa Marta with touches of Bogotá modernism and rock n’ roll. The album made him a major international star and inspired a new generation of Colombian artists who, for the first time, saw their music on a global stage.
“It was only until I heard Clásicos de la Provincia that I felt my music could have the influence and sound of Colombia,” Fonseca says. “Before that, I dreamed of being like Guns N’ Roses, Nirvana, George Michael. Carlos’ music opened my mind.”
In the United States, Clásicos de la Provincia, distributed by PolyGram Latino, debuted at No. 46 on Top Latin Albums and peaked at No. 2 seven months later. It remained on the chart for 86 weeks.
Juanes (left) and Carlos Vives on set for the “Las Mujeres” music video in Bogotá in 2023.
Frankie Jazz
Over the next decade, Vives amassed four No. 1s and nine top 10s on Hot Latin Songs and five top 10s on Top Latin Albums, including one No. 1 (2001’s Déjame Entrar). Recording from the outset with his Colombian band, La Provincia, Vives’ music became progressively more adventuresome but remained linked to his roots. “My commitment is with my locality,” he told Billboard in 2004. “It’s the sound I dreamed for our music but influenced by the world.”
“Carlos bet on Colombia’s identity and making it global,” says his wife, Claudia Elena Vásquez. “He took our roots and our folklore and modernized it. It was the match that sparked the flame.”
That “flame” is what Vives calls el Universo Vives (the Vives Universe), which includes his own label, Gaira Música Local; the Río Grande Music School for children and the venue-restaurant Cumbia House, both in Bogotá; and his nonprofit, Tras la Perla, in Santa Marta.
It all amounts to a beehive of activity that seemed implausible a decade ago. Back in 2004, his second marriage had just dissolved, his touring had ground to a halt, and after his contract with longtime label EMI had expired, he failed to secure another record deal to continue his international career. He didn’t release a single album of original material from 2002 to 2012, save for the 2008 children’s album Pombo Musical.
The flame could have been extinguished were it not for Vásquez — who has lived with Vives since 2007 and is now CEO of Universo Vives — and executive Walter Kolm, who in 2012 was starting his management career after years as a major-label executive.
“I knew I was signing a superstar,” says Kolm, who flew to Colombia to meet with Vives and offer a detailed proposal. “There weren’t that many Latin artists then who could fill arenas like he could, even after being absent. And beyond his music, Carlos was a point of reference for Colombian culture.”
Since his comeback, Vives has placed 12 No. 1s on the Latin Airplay chart, including his 2016 Latin Grammy-winning duet with Shakira, “La Bicicleta,” and two No. 1s on Top Latin Albums. Last year alone, he played 15 U.S. shows that grossed $6.1 million total, according to Billboard Boxscore. On top of that, he has won 17 Latin Grammys and two Grammys.
The artist’s resurrection has been “more than a revival; it has been a rebirth,” Kolm says with a laugh. “That’s why we’ve released so much music. He’s making up for lost time.”
“Carlos opened the door of Colombian folklore to the world and brought the music of the world to our folklore,” Juanes says. “Rock, vallenato, cumbia, caribe, funk, electric guitar, accordion, poetry and charisma. Everything fits in his name.”
To mark the 30th anniversary of his breakthrough album, Vives reflected on the past, present and future of his influential career.
Gusi (left) and Carlos Vives celebrated Gusi’s signing with Gaira Música Local at Cumbia House in Bogotá in 2020.
Daniel Amézquita
On Clásicos de la Provincia in 1993, you gave classic vallenatos a shot of steroids, incorporating electric bass, guitar and drums. Did you ever think it would go as far as it did?
I never thought doing the music we did would lead to success. Plus, back then, we were told doing vallenatos, or doing them this way, was not the right music for me. At the time, it was about finding an authentic path and breaking the industry paradigms about what was folk, pop or rock.
How did you do that?
We opened a different mindset. We took Colombian instruments and electrified them using rock instruments; like taking the caja vallenata to an electric guitar or bass, or playing the cumbia beat on a Stratocaster. We were “happy illegals,” as Gabriel García Márquez used to say. We thought we’d last forever, and we were happy doing that and playing in bars and on TV. Maybe that’s why we dared do it in the first place.
You had nothing to lose…
Exactly. And when it started to work, it caught us with our pants down because we really weren’t expecting it. But I loved being connected with my dad, my essence, with that lost world of my childhood.
Clásicos de la Provincia made you a star. But what followed next, 1995’s La Tierra del Olvido, really consolidated your success. Can you explain why?
Clásicos de la Provincia triggered pride in vallenato, but it was also a new sound for our songs. But on my next album, I couldn’t continue to just record classic vallenatos. I had to write my own songs.
The first thing I had learned about vallenato was that it was the son of cumbia, and it opened up to a much bigger universe that touched our entire Colombian culture. It was a broader musical DNA that I called la tierra del olvido [the forgotten land]. I came from recording ballads and I was searching for my identity. I was forgetting where I came from, and that’s why I called the album [and its hit title track] La Tierra del Olvido. I saw myself reflected in that album cover, where I’m standing in front of the Caribbean and at the foot of the Sierra Nevada de Santa Marta, the Colombian Tibet and home to our indigenous cultures.
Carlos Vives on set for the “La Tierra del Olvido” music video in Santa Marta.
Socorro Arango
This tour celebrates Clásicos de la Provincia. How do you summarize 30 years in a single evening?
It’s an opportunity to go on a trip. We began on a TV series singing vallenato old-school, the way tradition dictated they needed to be performed. So you see me singing with a conjunto vallenato, “La Casa en el Aire,” in the way it was done 30 years ago. I tell the story from the beginning, going through “La Tierra del Olvido,” “El Amor de Mi Tierra.” You witness how the sound grows to what I call “the rock of my town,” growing the instrumentation and showing how we changed the way we “tropicalized” with more rock-leaning patterns. It shows how very traditional fare can give way to very edgy stuff. We play 22 to 23 songs [in] two-and-a-half hours.
You had that eight-year hiatus between 2005 and 2012 before you came roaring back. Do you realize today how rare it is to have these second chances?
I think we planted something in our people that they valued and took as their own. And I think that lived on, despite bad management and my not having taken advantage of certain things. When Walter [Kolm] came along, I got a team. I haven’t met a manager that believes more in me than Walter or anyone who believes more in me than Claudia, my wife. But my marketing team were the Colombians who took my songs with them everywhere they went. Then the Venezuelans and Puerto Ricans came along, and we recognized ourselves in that diversity that’s our Hispanic America. That also allowed this comeback.
Carlos Vives celebrated his birthday (Aug. 7) with manager Kolm (right) at Cumbia House in 2021.
Frankie Jazz
You mentioned your wife. How important is it to sleep next to your biggest fan?
An artist needs someone close who loves him. And I don’t mean just the love of your life, but someone who understands your work and who has a vision to grow and dignify it. What Walter and Claudia have done is incredible. They came to my life to love and value my work. It’s something I needed.
Many people don’t know that aside from learning music in your home, you also played in Bogotá bars for years, you did theater, you produced TV shows. How important was it to put in those 10,000 hours?
It was vital to work as part of a team in a theater group, in a TV cast — getting up early, having responsibilities with a group and with a project.
There has always been a craft. I learned a lot at a bar called Ramón Antigua where I was a waiter. We had a singing contest every night. My friends from college would come and make me sing. And eventually, the owner would travel and leave me in charge. I’d put together the band, book groups like Guayacán and Niche [in their beginnings]. Can you imagine? We were always making something up.
You tour constantly. What does live performance mean to you?
It’s my comfort zone, the place where I feel safest. Being onstage means going back to all the things I cherish from my childhood and growing up with music. It’s connecting with my true roots, and I feel that’s what allows me to connect with fans. They feel the same way I do, and that’s why they’re there.
Carlos Vives (kneeling, fourth from left) and musical collaborators onstage during the VIVES Tour in Orlando, Fla., in 2021.
Sergio Rodriguez
You spent your early years in Santa Marta, the backbone of your music. But then you moved to Bogotá after your parents’ divorce. How did these very different cities shape your music?
I like to sing everything. That’s how we were raised. Even music in English, although I can’t sing in English. My challenge was, “How can I do it in my own style? How can I be modern without copying anyone?” I didn’t want to be a copy of a copy of a copy. That’s the Bogotá factor, being raised in a city full of culture. I loved what I did, but I was missing an element of authenticity and of understanding the musical processes around the world. I wanted to understand where Elvis and the British [artists] got their inspiration. I wanted to understand where the music came from.
You are a true authority in Colombian music and its roots, and the author of several books on the subject, which is remarkable for a pop star. Why is this important to you?
Understanding who you are is vital. For example, discovering through music that Spain is a key ingredient, even if people denigrate being Spanish. We don’t stop being Spaniards simply because we gained our independence. Independence is a political state, but blood, last names and the cultural footprints that come from being a mix of Spaniards and those born in our countries is something that doesn’t go away, and it’s part of our music. The same thing happens with our African and indigenous roots. That is who we are. It was so important to get on this little boat called vallenato, which is tiny but has taken me to all these other worlds. This has been a 30-year journey. A journey where we found a world far richer and far more connected through music. We live in a world of separation, distrusting others if they speak Spanish or English, and music shows us a much more united, far more beautiful world.
Let’s put a debate to rest: Was cumbia born in Colombia?
Cumbia was born in the towns of the Río Grande [in Colombia]. The cumbia rhythmic pattern is a pre-Hispanic native American pattern that is unique to cumbia; it’s not in any other indigenous or African place in the world. That’s why it’s so endemic and so unique. The shores of the Magdalena River are the capital of cumbia, and that’s where we celebrate the cumbia festival. But the Spaniards brought a writing style, metrics, décimas, the red handkerchiefs, the white dress.
Carlos Vives at the Río Grande Music School in Bogotá in 2022.
Edgar Ibarra
You’ve never sung in English. Do you see more non-Spanish speakers reacting to your music now than before?
Totally. If you play Royal Albert Hall, Colombians and Latins come to see you, but they don’t come alone. They bring their British friends with them. It’s the same on the other end; we paid to see British bands in Bogotá and didn’t understand a damn thing they were singing, but we loved it. Today, musicians connect with each other in many languages, and that’s so much more beautiful. That has been very important to me. That they take me here and there, that our flags are out there, that there’s so much more connection between artists who sing in Spanish and English. We’re part of the same industry. You’re popular, I’m popular; we all connect.
Aside from your music school in Bogotá, you also have Tras la Perla, a foundation in Santa Marta that works to improve many different aspects of the city, even though you no longer live there. Why is it located there?
Maybe because of my ties to my father and his work as a doctor. We inherited the love people felt for him. That’s one factor, and the other is the tragedy of seeing a magical place that has been forgotten. It’s unfair. I work in a neighborhood called Pescadito, where great athletes like El Pibe and [Radamel] Falcao were born and raised, and we want to improve it and attract people and tourism. And I also work in Ciénaga Grande, the delta of the Magdalena River, which is an important musical capital.
Colombia is very politicized now, with extreme views on each side. And you are such a visible Colombian icon. How do you handle that?
The world is politicized. Colombia is merely a reflection. Nowadays, being a rebel means being on the opposite side of someone else, on the left or the right. No. No. I’m the rebel. I’m a rebel because I’m Colombian. I took on that responsibility and I decided to make music based on our roots that incorporated the music of the world. Being Colombian is understanding who we are and recognizing all that we are. I don’t take sides [for politics]. I take sides for my country.
Carlos Vives performed at Cumbia House last December 2022.
Santiago Romero
Carlos Vives: Five Vital Releases
Clásicos de la Provincia, 1993 PolyGram Latino/Sonolux
The album that introduced the Vives sound covered classic vallenatos with a mix of traditional and rock instrumentation, a revolutionary approach that rocked fans and fellow musicians. Choice track: “La Gota Fría”
La Tierra del Olvido, 1995PolyGram Latino/Sonolux
Vives’ stylistic fusion solidified on this glorious nostalgic set that also established him as a songwriter and took his sound and that of his band, La Provincia, further into the pop and rock realms. Choice track: “La Tierra del Olvido”
Courtesy Gaira Musica Local
Déjame Entrar, 2001Capitol Latin
While Vives established himself on a global scale with 1999’s El Amor de Mi Tierra, Déjame Entrar unified his international appeal thanks to original global hits that had vallenato roots and broad-appeal pop melodies. “Carito,” which talks about a boy’s crush on his American English teacher, presciently united cultures and languages. Choice track: “Carito”
Corazón Profundo, 2013Sony Music Latin
Vives’ comeback after an eight-year halt on recording originals is chock-full of joyous, irresistible hits, including the first major collaboration, with Brazilian star Michel Teló. It marked a new stage in Vives’ career and sound. Choice track: “Volví a Nacer”
Cumbiana, 2020Sony Music Latin
Vives’ exploration of the roots of cumbia and vallenato, the two rhythms that define Colombian music and his style, continued on this adventuresome release. It features collaborations with artists from around the world, including Panama’s Rubén Blades, Spain’s Alejandro Sanz, Jamaica’s Ziggy Marley and Colombian-Canadian Jessie Reyez. Choice track: “For Sale”
This story originally appeared in the Aug. 26, 2023, issue of Billboard.
All that Jorja Smith likes to do is write and sing — which makes separating herself from her career “a bit tricky” sometimes. “I’ll have days where I’m like, ‘Oh, my God, I wish I gave myself a different name because I need to switch Jorja Smith off,’ ” she says. “I don’t want to be Jorja Smith all of the time.”
Struggling to find balance not only speaks to her Gemini zodiac sign, says the 26-year-old artist, but is also at the core of her highly anticipated second album, Falling or Flying, out Sept. 29 on her longtime independent label, FAMM. “I don’t really have an in between. I’m either happy or sad, obsessed or completely unfocused, up or down,” she says. “I feel like I’m flying in my career, and then other times, I feel like I’m falling because the pressure can feel [like] too much.”
At 18, Smith left her hometown of Walsall, England, and traveled two-and-a-half hours south to London in order to pursue music full time. Her secondary school yearbook named her most likely to become famous — and she quickly ascended to become one of the United Kingdom’s brightest stars. In 2016, Smith uploaded her socially conscious debut single, “Blue Lights,” to SoundCloud, and it garnered nearly half a million plays in one month. The song eventually appeared on her 2018 critically acclaimed debut album, Lost & Found, which boasted slow-burning songs that blended R&B, reggae, hip-hop, jazz and neo-soul production with a songwriting approach inspired by Amy Winehouse. All the while, Smith earned co-signs from Drake, Kendrick Lamar and Stormzy, as well as acclaim in the form of a 2018 BRITs Critics’ Choice Award and a 2019 Grammy nod for best new artist.
But fulfilling her yearbook prophecy had a disorienting effect on Smith, who became famous in her early 20s. After tiding fans over with the 2021 EP Be Right Back, she moved home to Walsall at the beginning of 2023. “I went back when I finally decided I’ve had enough of London … It’s a bit overwhelming sometimes,” she says with a sigh. “I moved back and I feel a lot more balanced. I feel more myself now.”
On Falling or Flying, Smith soars over sprightly tracks that experiment with acoustic indie-rock production, syncopated basslines and retro synth chords. She enlisted U.K. jungle DJ-producer Nia Archives to remix the album’s second single, “Little Things,” which captured a flirty, feverish energy quintessential for clubbing in its original form. But some songs demand the coziness of a jazz club, where Smith’s lithe, velvety vocals can fill the space on their own — and quiet those around her. While Lost & Found comprised teenage love songs Smith had written when she was 16, Falling or Flying finds the singer stepping “into womanhood” and being more sure of herself than ever before. As she sings on “Backwards,” “I stand here and I look down on myself and I am so proud.” Meanwhile, on tracks like “Broken Is the Man” and “Try Me,” she challenges past lovers and harsh critics.
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Walsall production duo DameDame* — Smith has known one of its members since she was 15 — was responsible for most of Falling or Flying, another sign that returning to her roots better served her music. “We laughed, ate food, sang, cried, jammed some more,” she says. “It wasn’t like, ‘I need to make the album uptempo.’ It was just, ‘Let’s mess around, have fun and see what happens.’ ”
Smith teases that she’ll take Falling or Flying on the road for her first headlining run in five years. “That’s all I want to do,” she says, beaming. “That’s where I feel at home. In Walsall and onstage is where I feel like, ‘OK, I can just be me.’ ”
This story originally appeared in the Aug. 26, 2023, issue of Billboard.
Holly Humberstone has a confession. Despite the title of her forthcoming debut album, Paint My Bedroom Black, she has never actually doused her surroundings in darkness. In reality, her bedroom in the London flat she shares with her sister is what she describes as “so girly.”
But when thinking of what she wanted her first album to signify, Humberstone kept considering the memorable debuts that preceded her own. “I feel like so many artists build such a strong world around them and such an identity, and I feel like I’m changing all the time,” the alternative pop artist says. “I’m 23. I probably should sort of know who I am at this point. I just really don’t.”
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That familiar uncertainty is not only visualized by the title of the album (out Oct. 13 on Darkroom/Geffen/Polydor Records) but also felt across its 13 songs, which embrace the duality of feeling apprehensive and alive all at once.
“I didn’t do it on purpose, but to me, the album sounds like it’s got two sides to it, like there’s two sides of me that I didn’t realize were coexisting,” Humberstone says. She thinks the consistency comes through in her vulnerability. “There’s something really empowering about being able to share so much of myself with people I don’t know.”
For much of Humberstone’s career, this has been all she knows. She released her debut single, the poignant “Deep End,” in January 2020, just before the world shut down from the pandemic, but worked tirelessly to emerge a household name. She released her first EP, Falling Asleep at the Wheel, in August 2020 on Platoon; after scoring a major-label deal the following year, she released her second EP that fall. By the end of 2021, she had won the BRIT Award for rising star, and by the end of 2022, she had opened on tour for Olivia Rodrigo and Girl in Red.
For a self-described homebody who grew up in rural Grantham, England — where “there’s nothing f–king going on” — the transition was a bit overwhelming. “You just have to adapt, and writing really helped me,” says Humberstone, who wrote and recorded much of Paint My Bedroom Black in between gigs. She describes songs like lead single “Antichrist” and the dancefloor-ready “Flatlining” as more “extroverted,” while the title track and songs such as “Elvis Impersonators” “feel like wanting to shut things out and be on my own.”
That honesty has bolstered some of Humberstone’s most affecting songs and helped establish her voice — from “Deep End,” about supporting her sister’s mental health, to the more uptempo 2022 single “Scarlett,” which mined her best friend’s one-sided relationship and ultimate breakup. On Paint My Bedroom Black, Humberstone looks inward, writing about her own attempts at relationships and the guilt that accompanies being gone so often.
On “Superbloodmoon,” which features Darkroom labelmate d4vd (marking the first time Humberstone has welcomed a collaborator on one of her own tracks), the pair sing of being far from home. “It’s a cold kind of love, from a distance … It’s a desperate kind of love that I’m missing,” they sing in longing harmony. And on “Kissing in Swimming Pools,” she sings of “wanting to hold down some form of relationship with somebody that I really liked” only to realize (and ultimately admit) how her career challenges that.
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No matter the production style or vocal delivery of each song, though, Humberstone’s brash honesty puts her in the same class of current stellar songwriters like fellow emerging artist Gracie Abrams and even her idol, Phoebe Bridgers. (Humberstone says the latter’s Stranger in the Alps is one of her most-loved debut albums; when asked whom she would recruit for her own boygenius supergroup, she picks beabadoobee and Arlo Parks, saying that women in music right now “are running the whole show.”)
“Honestly, I think writing my songs is my way of protecting [my personal life] because I can take control and tell the stories how I want them to be told,” she says. Even so, she does worry about its reception. “I low-key hate releasing music,” she nearly whispers. “I love the writing process, and I love having [songs] in my pocket. I feel like it’s my dirty little secret. And then when it goes out, it’s just scary.”
Her best solution so far? Keep writing through it — she’s already thinking of her next project. Coming off sets at Lollapalooza Chicago, Outside Lands and the Reading and Leeds festivals in England, she may even continue her habit of writing on the road.
“It does feel like I’ve poured a lot of myself into [this album], and I am really, really proud of every song,” she says. “I’m just grateful that I am able to make [an album at all], and it sounds really cheesy, but that people will be waiting for it on the other side.”
This story originally appeared in the Aug. 26, 2023, issue of Billboard.
While J Balvin still hasn’t shared the name of his upcoming album, he notes that he had decided on the title before he recorded a note. “My albums have always started with their names,” the Colombian star says. “That way, we let ourselves be guided by the vibe.” In the past, he has mostly used one-word titles: Jose (2021), Colores (2020), Oasis (2019), Vibras (2018) and Energía (2017).
He says that the mood of his latest, arriving this fall, was sheer joy. Recorded at RAK Studios and Abbey Road during a monthlong stay in London, Balvin’s first full-length album in nearly two years features a variety of producers, including Tainy, Mura Masa, Michaël Brun, Hear This Music/DJ Luian, Mambo Kingz and Súbelo NEO. The project also boasts “precisely” curated collaborations, including tracks with Stormzy and Anuel AA.
“I like to explore other cultures and genres,” he says. “But as far as my DNA and my essence, I represent Medellín, Colombia.”
London Nightlife
Coming out of the pandemic, Balvin and his team looked around at a world mired in negativity. “The vibe wasn’t right for inspiration,” Balvin says. “We decided, from within ourselves, to focus on giving happiness to our listeners and change the vibe from negative to positive.” A key element was London’s vibrant club scene, which became a living, breathing experiment to discover and test beats. Balvin and his team hit two or three clubs every weekend to take inspiration from dancefloors and observe what fans were connecting with. And, on occasion, he would even play demos. “We wanted to see fan reaction,” he says, “and it was amazing.”
Usher
Though Balvin has known the veteran hit-maker for years, their first collaboration was the result of a chance encounter during Paris Fashion Week in July. “When I saw him, I had that flashback to the songs that defined my childhood,” recalls Balvin, who, on the spot, asked Usher if he could sample his 2004 smash “Yeah!” in a new track that wasn’t even done yet — and whose title he hasn’t yet divulged. “He said of course, but then I thought, ‘It’d be great to actually do something with him.’ Recording the track and filming the video with someone so legendary fills me with nostalgia and gratitude. I think this song will have huge global impact.”
Work-Life Balance
Balvin and girlfriend Valentina Ferrer welcomed son Río in June 2021. “Having my son has changed my perspective, but my competitive spirit, that drive to improve as an artist and a person, is part of my day to day,” says Balvin, who often takes Río on his global travels. Daily workouts, he says, are also key — as is maintaining mental health, a topic he has been outspoken about. In that regard, his new album is a way to actively put positivity to work: “It’s not just talking about mental health, but actually applying the concept,” he says. “This album is a mood that will make people happy just by listening to it. I’m contributing by raising serotonin levels.”
This story will appear in the Aug. 26, 2023, issue of Billboard.
Late last year, Ben Gibbard was staring down a pair of significant milestones: Death Cab for Cutie’s breakthrough album, Transatlanticism, would be turning 20 in 2023, as would Give Up, the lone full-length that Gibbard and electronic artist Jimmy Tamborello released as The Postal Service. Death Cab’s management suggested separate 20th-anniversary tours, but Gibbard envisioned a two-for-one nostalgia jamboree.
“I was like, ‘People are going to lose their minds if this is one tour,’ ” he recalls. “And I think the initial response and ticket counts were certainly a vindication of my approach.”
Indeed, the Give Up/Transatlanticism joint tour will bring both indie touchstones to arena and theater crowds beginning Sept. 5, with stops at New York’s Madison Square Garden and two hometown gigs at Seattle’s Climate Pledge Arena among 31 scheduled dates (up from 17 when the tour was announced in December). Gibbard will naturally pull double duty — performing Transatlanticism front-to-back with Death Cab and all of Give Up with Tamborello and Jenny Lewis, who provided backing vocals on six album tracks.
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For Gibbard, the tour will revisit the most pivotal year of his career. Death Cab, which formed in 1997, famously came close to breaking up in late 2001 after touring and recording at a breakneck pace. The subsequent downtime gave a then-25-year-old Gibbard the space to craft the foundation of Transatlanticism, as well as work with Tamborello on an indie-pop side project by mailing CD-Rs to each other (hence the name The Postal Service).
“All of a sudden, I found myself with a lot of time to meander creatively,” recalls Gibbard, now 47. “I felt very confident, and maybe a little bit cocky. I could musically wander and explore the space, and it was very fruitful for me.”
Give Up turned into a blog-adored cult classic, while Transatlanticism took Death Cab “from indie-rock popular” to “popular popular,” as Gibbard puts it. Although Give Up peaked at No. 45 on the Billboard 200 and Transatlanticism at No. 97, they’ve earned 1.8 million and 1.1 million equivalent album units, respectively, according to Luminate.
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Looking back, Gibbard is grateful that his breakthrough with both albums occurred a half-decade into his career. “We had [already] gone through some very difficult times together, and come out the other end,” he explains. “I can’t say with any certainty that if things were like they are now — a band puts out a three-song EP and is selling out shows and has people putting cameras in their faces — there’s no way we would have survived that.”
While Death Cab was just on the road in support of its 10th album, 2022’s Asphalt Meadows, the upcoming tour will mark The Postal Service’s first concerts in a decade, since Give Up turned 10. For Gibbard, these Postal Service shows will be slightly different — unlike in 2013, Give Up will be played in order, without B-sides or covers — but performing again with Tamborello and Lewis will be just as fulfilling.
“These are two of my best friends, that I get to spend extended time with on this trip,” says Gibbard. “We get to celebrate this record that we made, that became this kind of lauded moment in indie rock — but also, it’s a celebration of our friendship.”
A version of this story will appear in the Aug. 26, 2023, issue of Billboard.
The ongoing dual Hollywood strikes, by the American actors’ union SAG-AFTRA and the Writers Guild of America, have brought the movie and TV businesses to a grinding halt as the historic work stoppage appears headed into the fall — and perhaps beyond. The impact has already been felt on the red carpet, as actors have had to skip new interviews or promotional appearances for some of the summer’s biggest blockbusters, as well as their upcoming projects.
When Troye Sivan spoke with Billboard recently, the singer was happy to talk about his summer single, “Rush,” but was unable to discuss his work on the HBO drama The Idol, which had wrapped its run weeks earlier. “I am in total support of the strike and am holding strong with everyone in waiting it out and making sure that everyone gets treated fairly,” Sivan said, adding that he also could not discuss his upcoming starring role in the coming-of-age drama Three Months.
Sivan’s statement was pitch-perfect, according to SAG-AFTRA chief negotiator Duncan Crabtree-Ireland, who says that artists are expected to avoid promoting music created for film, TV and streaming under the old contract during the strike. They also cannot enter into any new music licensing agreements or approve any new tracks for film or TV projects and must cease promoting songs already licensed.
The work stoppage over issues including streaming residuals and stricter safeguards against the use of artificial intelligence has shuttered all late-night talk shows for the longest stretch in modern history. It has also raised questions about Saturday Night Live’s 49th season — expected to start in September, though a representative said there wasn’t an update on a return to air — cutting off crucial promotional avenues for rising and established musical acts.
A number of major awards shows that typically feature music performances and presenters have been put in limbo by the action that began May 2, when Hollywood writers walked out, followed by members of SAG-AFTRA (which represents actors, announcers, broadcast journalists, singers and others), who joined them on July 14 to create the first dual strikes by the two unions since 1960.
The just announced 16th annual Academy of Country Music Honors will air Aug. 23 on Fox with returning host Carly Pearce, while the 2023 MTV Video Music Awards had announced a Sept. 12 airdate just as the first strike began. A representative said the latter is still planned for the Prudential Center in New Jersey, but could not comment on whether that date might change or if the broadcast could go ahead with an unscripted show, as the Tony Awards did in June. The 2023 Billboard Music Awards are scheduled for Nov. 19.
“They are not supposed to facilitate any promotion of work done under this contract, which includes going to an awards show and accepting an award,” Crabtree-Ireland says of musicians who are also SAG-AFTRA members. He noted that it’s “virtually impossible” to find a workaround, as the rules require artists to skip red carpets, interviews and accepting their trophies onstage.
A representative for the 96th annual Academy Awards, slated to take place March 10, 2024, had no comment on the strike’s impact. Similarly, a representative for the 2024 Grammys said the show slated for Feb. 4, 2024, at Los Angeles’ Crypto.com Arena is expected to go forward, but additional information isn’t available.
In the meantime, streaming services and networks are judiciously doling out already completed movies and series, like the slate at Paramount+. It includes an Elvis Presley documentary and a Biz Markie biopic; a new CBS game show, Superfan, in which die-hard supporters of artists including LL COOL J, Shania Twain and Pitbull compete for the title of ultimate fan; and the third season of Fox’s celebrity edition of Name That Tune, featuring JoJo Siwa, the Spice Girls’ Mel C, Darren Criss and Debbie Gibson.
The trickiest tightrope for musicians who also act might be social media, according to Crabtree-Ireland: “They can tweet about anything else they want, so long as they are not promoting work done under the [current] contract.”
This story will appear in the Aug. 26, 2023, issue of Billboard.
Back in January 2020, singer-songwriter Ryan Tedder was jogging through the flats of West Hollywood while talking to his friend and investment partner Abe Burns when they struck upon an idea.
“What if you could take tranches of your favorite songs and securitize them, go through the [U.S. Securities and Exchange Commission (SEC)], invest in your favorite songs and trade them on the public market?” he recalls telling Burns. “Why can’t fans do this?”
The OneRepublic frontman and prolific songwriter behind megahits like Beyoncé’s “Halo,” Adele’s “Rumour Has It” and Leona Lewis’ “Bleeding Love” is less well known for his investing acumen. But over the last decade or so, Tedder has proved to be a successful venture capital and commercial real estate investor who owns stakes in lucrative properties like the sites of a 24-hour Walgreens on the Las Vegas strip and American Airlines’ call center headquarters in Fort Worth, Texas. “That’s all well and good,” Tedder says, but to be able to share in some of the greatest pop songs — that he didn’t write himself? That would be thrilling.
Music lovers like Tedder will soon be able to do just that. Beginning Sept. 12, music fans and everyday investors can reserve stakes in the royalty streams of more than 100 songs — written by Tedder; Diplo and the trio he co-founded, Major Lazer; and rock band American Authors — through a new music investing platform, JKBX (pronounced “jukebox”). This initial batch includes songs performed by Beyoncé, Adele, Taylor Swift, Colbie Caillat and Ed Sheeran and features by Justin Bieber, Travis Scott, Ellie Goulding, Jonas Brothers, MØ and Trippie Redd.
Like dividend-paying stocks, royalty shares acquired on JKBX’s platform will give investors the right to a slice of the income a specific song generates. The types of royalty streams offered — for example, publishing, recording and whether there are geographic boundaries attached — will vary by song and be disclosed in each offering.
Founded by Sam Hendel and John Chapman of venture capital and private equity firm Dundee Partners, JKBX aims to become the Fidelity of music investment — a platform where fans can buy, trade and sell royalty shares of songs with strong, sustained records of income. The company says all of the tracks offered will have been released over 18 months ago, with most of them older than 10 years. They include Major Lazer’s perennially streamed hit “Lean On” (it has over 1.8 billion streams on Spotify) and American Authors’ “Best Day of My Life,” a synch sensation that has been used in ads for Best Western Hotels, Ford and Jeep.
Early adopters won’t initially have to put any money down, and the reservations will be nonbinding while JKBX awaits the final approval from the SEC to make public offerings available to investors. In February, the company announced that it had partnered with GTS Securities, one of the largest Designated Market Makers on the New York Stock Exchange, to mitigate volatility and promote liquidity and competition on a secondary trading market for JKBX’s royalty shares.
JKBX has yet to choose a broker dealer or alternative trading system — it is in talks with several — and until that happens, there is no secondary market where investors can sell or trade their royalty shares.
The company says it will not set a royalty share’s initial price or determine how many shares will be made available; a separate issuer will do that. The type of Regulation A offering JKBX is attempting to provide can sell up to $75 million worth of shares in a 12-month period, which it expects to do.
Because it’s still seeking SEC qualification for its first batch of offerings, JKBX was careful to state in interviews with Billboard that it’s not offering or soliciting investors in securities and that any future offerings will provide investors with all the normal disclosures, including how much revenue a song has generated over the past three years and ongoing audited financials.
Tedder and other creators with songs on the platform won’t be directly involved in the investment process — at least for now. JKBX’s deals are with labels, music publishers and catalog funds that own the copyrights. But the company says writers with songs on the platform will get a cut of trades if they are part of its Creator Program, which includes a pool of money set aside for them.
Ryan Tedder of OneRepublic performs onstage during the Lollapalooza Paris Festival – Day Three on July 23, 2023 in Paris, France.
Sadaka Edmond/SIPA/AP Images
If JKBX clears these hurdles and its business strategy takes flight, rights holders, artists, JKBX and individual investors stand to profit from a new, potentially transformative income stream generated by the masses betting on the continued earning power of songs — an asset class previously restricted to institutional investors, private equity and music publishers. Hendel estimates the total addressable market for JKBX could reach billions of dollars based on the music industry’s growth trajectory and the 60 million individual investment accounts that Americans hold.
In the meantime, sources say the company has taken on a top-shelf collection of music company investors such as Spotify, Live Nation, YouTube, Red Light Management and Bertelsmann Digital Media. Financial backers include Mike Novogratz’s Galaxy Digital, Valor Equity Partners, and Tyler and Cameron Winklevoss, sources say. According to a recent SEC filing, JKBX raised $16 million from investors in January alone.
“I see it as a potential game-changer in the music rights world,” says Round Hill CEO Josh Gruss (who is not an investor).
JKBX is not the first company to test these waters. Masterworks and AcreTrader both launched in 2018 as marketplaces where the average person could invest in top-end commodities by purchasing fractional shares of securitized fine art or farmland to earn returns. In music, Royalty Exchange, SongVest and Royal have all been doing something similar for years, but industry insiders and artists say that JKBX’s backers, song catalog and SEC validation give it a serious leg up.
Its launch also comes at a time when fans wield more power than ever to send old songs viral again, by using snippets of them in TikTok videos, for example, and may therefore have more interest in owning a share of these songs’ earnings than they did in the past.
Sources say JKBX has secured the rights to hundreds of hit songs worth over $4 billion, substantially more than prior companies in this space, and is in talks with several major rights holders, including Hipgnosis, BMG and at least one of the majors.
JKBX says it is not working directly with songwriters because it’s currently focused on securing deals that can deliver a diverse list of assets up front, though it is open to working with artist-owned catalogs in the future. Instead, it divides music assets into royalty shares and submits those shares to the SEC for qualification as Regulation A offerings. Every time an investor buys, trades or sells shares on its platform, JKBX earns a commission.
While the artist is not directly involved in the offering or investment, JKBX CEO Scott Cohen says the company actively tries to make original recording artists aware of its listings and get the artists’ blessing for songs that appear on the platform.
DJ-producer Diplo, who partnered with Royal in March 2022 to sell tokens linked to the streaming revenue of his song “Don’t Forget My Love,” says JKBX’s “business-minded” leaders and their embrace of conventional market rules — only SEC-registered and -regulated investments will be offered — convinced him the platform stands the best chance of succeeding.
“This has major artists,” he says. “It has the best chance of winning because there is real cash flow in music. There is already a money chain — and it is really SEC-regulated.” (JKBX currently is not involved with blockchain or non-fungible tokens — technologies other startups in this space have used.)
Ape Drums, Diplo and DJ Walshy Fire of Major Lazer attend Preakness 146 hosted by 1/ST at Pimlico Race Course on May 15, 2021 in Baltimore, Maryland.
Paul Morigi/Getty Images
Tedder says that when Chapman and JKBX approached him with their pitch, “I think they got maybe two or three sentences in before I said, ‘Hold on a minute. You’re pitching me on the exact same idea that I had.’ ” He says he also told them, “ ‘The devil’s in the execution and your partners — getting [Universal Music Group (UMG) chairman/CEO] Lucian Grainge, getting giant funds like Hipgnosis. Whoever gets the largest collection of catalogs first, gets the signoff from the SEC first, jumps through all the hoops first is the winner.’ And they’re like, ‘Yeah, that’s us.’ ”
An early example of the financialization of music assets came in 1997, when David Bowie partnered with the Prudential Insurance Company and attorney David Pullman to raise $55 million through the sale of what became known as Bowie Bonds. It was the first example of an artist getting investors to bet on the income a back catalog would generate.
“This is a natural progression,” Pullman, chairman/CEO of The Pullman Group, wrote in an email. “The interest in investing has continued since these first … landmark deals where you have seen the biggest, savviest investors enter the market to recognize this asset class of music that keeps growing. It’s only natural [that] investors and fans would want to invest in their favorite songs. Song by song gives more choice.”
JKBX’s idea to allow investors to create customized portfolios of songs follows the recent launch of several exchange-traded funds, including David Schulhof’s MUSQ, where investors buy shares to gain exposure to 48 different music companies, including Warner Music Group (WMG), Spotify and Live Nation, and TUNE, a fund providing exposure to 50 music and digital companies, including UMG, Netflix and The Walt Disney Company.
“As long as the deals and investors are selective,” Pullman wrote, royalty streams “can be a sound investment.”
The JKBX interface through which investors can buy stakes in song royalty streams.
Courtesy of Jukebox
One key difference between owning stock in publicly traded companies and royalty shares in music assets is that the latter doesn’t give the investor any right to say how a song is marketed or promoted.
“You’re basically buying an income stream. You have no control over or input into how the song is used,” says Don Passman, renowned copyright expert, lawyer for Taylor Swift and author of the music industry handbook All You Need To Know About the Music Business. “The prices will be higher [than more conventional investments],” he explains, “because of two things: the sexiness of it and being able to buy it in little bitty pieces. It’s a little like fantasy sports, except with real money.”
Hendel and Cohen like the fantasy sports comparison for a couple of reasons: Fans who invest in sports tend to spend more money overall on merchandise and experiences linked to games, and labels are eagerly searching for ways to find and reach their artists’ superfans.
“We view this as a way to connect people more deeply to their favorite artists and elevate the catalog,” says Hendel. JKBX’s market research tells it superfans are one of their three target audiences. “A lot of our partners are looking at this not as a way to make money — the real thing is fan engagement.”
Cohen acknowledges that selling the platform’s potential to investors comes with a substantial learning curve, but he has successfully schooled the industry on similarly challenging concepts. As co-founder of groundbreaking digital music distributor The Orchard, he helped administer the first music downloads to mobile phones when consumers were still buying CDs.
“Trying to explain to people that they would be not only consuming music on their mobile device, they would be creating and engaging — just impossible,” Cohen says. “They’d go, ‘You want to download music? Why? I have a six-CD changer in my car.’ ”
Between 1995 and 2003, The Orchard racked up $3 million in debt. “We owed everybody money,” says Cohen. “We owed every artist money, our employees, the electric bill, the rent. I had lost all of my possessions.” And the IRS was hounding the company. At one point in the early 2000s, he recalls living out of The Orchard’s Lower East Side office subsisting on a diet of beans and rice cooked on a hot plate in the pantry. “I discovered there is a level of poverty; that zero, it turns out, is not the bottom,” he says. “It goes much deeper.” Cohen adds, “It was really dark times, but I was super confident in this space.”
Scott Cohen, JKBX CEO
Susanna Cappellaro
When Apple’s iTunes Store launched in 2003, The Orchard owned roughly one-third of the digital rights to all of the songs in it. The first check the company received exceeded its total 2002 revenue. The next month, that figure doubled, Cohen says. “It was confirmation of eight years of incredible struggle.”
The Orchard paid off all of its debts a short time later thanks to a several-million-dollar infusion from media investor Daniel Stein, who Cohen says gave him sage advice: “He said, ‘You made it this far, but now you’re going to have competition. Everyone is going to pour into this space, and all that hard work to get into the lead will evaporate overnight because new people will come in fully capitalized without any debt and they’ll eat your lunch.”
This time around, Cohen is the new guy that Stein warned him about, and he claims that puts JKBX at an advantage. “With The Orchard, we were first. With JKBX we are — whatever. Twentieth,” he says. “You enter the space without all the baggage of the past, you learn from everyone else, you’re fully capitalized and, wow, you can do a lot of damage.”
However, Cohen will have to manage investors’ expectations for returns, which will be highly dependent on how quickly JKBX can achieve scale.
Company representatives decline to reveal how many customers it needs to break even, but Cohen, who runs JKBX’s 35-person team remotely from his London home, reiterates that he’s not concerned about that number. “We’ve modeled the company around a very modest growth curve — like ridiculously small numbers of people. We have enough runway to last us a very, very long time without me having to lose all my possessions and become homeless again.
“When I look at the next year to 18 months, it’s a long, slow, educational curve where we just march forward month after month, quarter after quarter on a very clear path of what we want to do and not get stressed that every rights holder, artist and consumer isn’t on board on day one,” he continues. “It is going to take a moment for this to catch on, and as long as we are seeing the growth, we feel we are in the right place.”
Cohen has a preternatural confidence and comfort in technology’s ability to improve the human experience. In addition to founding The Orchard and later helping WMG “see over the horizon” as its chief innovation officer, he co-founded wearable technology company CyborgNest in 2017 and became one of its test subjects, implanting a device called NorthSense into his chest that vibrated when he faced magnetic north.
“We only know what we know because of the sensory information that comes into our brains,” he says. “What if we give [the brain] a new signal? How would your brain interpret it? The thought was that it would make me more human, not less.”
Cohen attempted to implant three different devices, but his body ultimately rejected all of them. While he hopes to resume these explorations, he says the opportunity to run JKBX was irresistible, and he doesn’t need a wearable gadget to navigate the royalty share business: “We don’t have a road map, but we have a compass, and that’s all that matters. We are doing something new, and I know where we’re headed.”
It is too soon to project what JKBX investors can expect in terms of return on their investment, but two sources estimate royalty shares will provide a base rate of return of around 3%. By comparison, the S&P 500 Index is up about 14% so far this year, and the yield on the ultra-safe 10-year U.S. Treasury notes are at 15-year highs of 4.35% (as of Aug. 21). While JKBX’s royalty shares are a fledgling asset class compared with both of those investments, it is worth noting that on average, the stock price for companies that filed initial public offerings in 2022 rose by an average of 10%, and Royalty Exchange, which launched over a decade ago, now says it provides annual returns to investors of 13.3% a year.
Hipgnosis Songs Fund, a pioneer in providing investors exposure to music royalties through its publicly listed trust, said in July that its investors have earned 27.9 cents per share of dividends since its July 2018 IPO — a 69% net asset value return to shareholders.
Many factors affect investor returns, including market conditions, initial price, demand on a secondary market, how long an investor holds an asset and when the investor buys it. JKBX thinks this will appeal to superfans, people looking to diversify their portfolios, and crypto and Web3-savvy investors.
JKBX and financial experts argue that the rules of efficient markets incentivize issuers to price royalty shares competitively in order to create demand and foster the success of the platform.
When JKBX executives pitch rights holders and artists, they highlight older songs that achieved fresh success from viral moments on TikTok and Spotify — songs like Miguel’s 2010 hit “Sure Thing.” JKBX presents a new way to cash in on catalog-caliber songs and could help identify fans who share and promote them most, JKBX executives say. If users agree to it, JKBX sees a future where artists and labels could directly connect with superfans on the platform, potentially driving future social media revivals.
In the meantime, publicly traded music trusts like Hipgnosis, whose stock is trading at a discount, and labels, which are under investor pressure for the high prices they paid to acquire catalogs, can use JKBX “as an outlet to raise liquidity to justify their acquisitions and a higher share price to the public,” Pullman says.
As for the average investor, Passman is skeptical that they will earn high returns from JKBX, given the price record labels and catalog funds have had to pay to acquire hit song catalogs in recent years.
“It is unlikely that consumers will be able to get [royalty shares] at an initial price that would have any kind of decent return just because the multiples will be high and because there is a sexy value to owning a piece of your favorite artist’s song,” Passman says, cautioning that returns will be song-specific and lesser-known songs might present better returns.
Larry Miller, director of New York University’s Music Business Program at the Steinhardt School, says that JKBX’s success hinges on “the belief that [royalty shares] will be worth more in the future than they are worth today, and having in place a transparent, fast and highly liquid secondary market is essential in having this be more than an interesting, fun and curious hobby for fans.”
If JKBX can get that in place, Miller says, “there is a great deal of potential impact here.”
This story will appear in the Aug. 26, 2023, issue of Billboard.
