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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.
In his Washington, D.C. office, Michael Huppe rolls his chair past gold records, an Elvis Costello poster and an electric guitar to a back shelf to locate a key and unlock a drawer. “Let me see if I still have it here,” the SoundExchange president/CEO says before pulling out a black vest with capital yellow letters that read “RIAA Anti-Piracy Unit” and draping it over his coat.
Prior to collecting performance royalties from digital radio stations, as well as broadcast companies such as SiriusXM and distributing them to creators for non-interactive digital streaming through SoundExchange, Huppe helped hunt down piracy rings around the country for the RIAA to ensure artists weren’t losing out on revenue. “I have gone on raids — flea markets, cassette operations, some CD operations,” he says.
Since Huppe joined SoundExchange in 2007, his tactics have changed — but his primary goal of getting performers and rights owners paid has not. Over the past two decades, he has helped raise their royalty rates and helped track them down at locations from music festivals to Mississippi Delta homes to distribute earned royalty payments. Now SoundExchange is marking its 20th anniversary and, in May, announced it had distributed $10 billion overall in payments. According to the organization’s most recent annual report released in July, SoundExchange collected $1 billion in digital royalties from more than 3,600 digital streaming platforms and distributed them to over 600,000 creators and rights holders in 2022 alone.
“You recognize you’re really making a difference in people’s lives,” Huppe says.
Explain what it means for SoundExchange to cross what it calls the “$10 billion distribution milestone.”
The growth rate of our payments surprised everyone, including me. When I came over to SoundExchange, I saw streaming was going to grow. We pay significant amounts of money to the big superstars, but also good amounts to working-class musicians that you may or may not have heard of. It makes a difference as to whether they stay in the industry. During the pandemic, for a lot of those musicians, we were the only revenue stream. The emails we received … it’s really gratifying.
What are some examples of those messages?
One band with regional popularity had been driving around trying to make it in a van, crashing on friends’ couches, barely getting by. We were trying to find them because we had money for them. They were literally about to hang it up — they were at the end of their run, running out of steam. That initial SoundExchange payment made all the difference and incentivized them to keep going.
There was a widow of a Delta blues singer we had been trying to find forever. We finally found her, and she was in tears because they were about to foreclose on her house and because of that [payment], they saved her house.
Country artist Randy Travis (seated), his wife, Mary Travis, and Michael Huppe.
Courtesy of SoundExchange
After working at the RIAA, you joined SoundExchange in 2007, which had been operating for four years. What were those early days on the job like?
We were still sending out paper checks. Back then, they were quarterly or semi-annually, and half the staff would gather into a room and run the distribution. That makes me think how far we’ve come, from paper checks to a system that processes 35 billion [digital] performances a month from 600,000 accounts. We were like, “Oh, my God — the next $100,000 [comes in] this quarter!” Now we’re regularly doing $1 billion [in payouts] per year.
It’s SoundExchange’s 20th anniversary. What have been the company’s biggest achievements during your tenure?
When I first started working — I guess I was still at the RIAA — SiriusXM was paying 2% of revenue, and now it’s 15.5%. And streaming rates we get from webcasting have more than quadrupled. We’ve done a really good job of demonstrating and achieving the value for music. [Editor’s note: In August, SoundExchange filed a lawsuit against SiriusXM claiming the platform is “gaming the system” to “grossly underpay the royalties it owes” to the amount of $150 million by manipulating how it bundles satellite services with web streaming services. A representative for SiriusXM has denied the allegations.]
How has SoundExchange helped those rate increases?
For the first few years, we would go before this three-judge panel at the Copyright Royalty Board. We’ve had a good track record of convincing them why we should be paid higher rates for music, which is so important to these services. The last satellite radio proceeding we had went from 11% to 15.5% overnight. So Dec. 31 of one year [2017], it was 11%, and the next day, they were paying us 15.5%. For the most part, it has been a gradual uptick.
What is SoundExchange’s general strategy for helping to persuade the CRB to raise the rates?
You put on artist witnesses and people from the union and record-label folks who explain what goes into the making of sound recordings. You bring in experts who can talk about the profitand-loss situation or what the future five years of the industry is projecting. You do all that the right way and make a convincing case, and the court increasingly recognizes the value music plays in the services. They are big, long, expensive cases, but it’s worth it because we have to look out for the value of music.
How quickly does SoundExchange make those payments?
Ninety percent of our royalties are out the door in 45 days, whereas around the world, on average, folks pay out annually, semi-annually or quarterly. We’re working for the creators. Our job is to take their money from the digital service providers and get it to them as accurately and efficiently as possible.
Are you a musician?
I’ve played piano since I was 4 years old. My chops are not what they used to be! So don’t ask me that. I played in different bands through high school. I’ve always loved music.
I’ll be honest with you: I never thought I’d end up in the music industry. I’m a recovering lawyer. When I was in law school, I got really interested in intellectual property [IP]. It’s this thing you can’t touch, you can’t hold, it’s not tangible — but the government vests a property right in it because they want to incentivize investment in creation. It just was a really interesting concept. [Without it], you wouldn’t have research in the next cancer treatment. You wouldn’t have people investing in music or movies or software.
Rapper Armani White (left) and Michael Huppe.
Courtesy of SoundExchange
After Harvard Law School, you started at the RIAA in 2000. How did you get to that job?
I clerked in court in the Eastern District of Virginia. We saw a lot of IP — when someone’s infringing your patent, you could be losing millions of dollars a day or tens of millions, and it makes a difference going to a quick court. When I started out as a lawyer in a law firm here, I tried to do IP if I could, but I was just doing general litigation. I got this headhunter to [help me] come over to work at this place called the RIAA, which happened to be across the street from where I was working. I came in to do litigation and piracy work and a lot of other things at the RIAA.
Like what?
There were still full-blown, big, commercial pirate cassette operations. I was helping to develop processes and cases. Slowly, that work moved from cassettes to commercial CDs to burnable CDs and downloads, and by the time I left, it was all streaming. We had eight offices around the country, probably 60 people in the department, tons of investigators. I helped create a system where we could build our own cases against pirates because we started to move toward the civil side instead of just criminal.
Any stories about busting flea markets?
The more tense times are when you’re going to someone’s house and they’ve got a CD-burning factory in the basement. Then you move on to the internet. It’s a whole different ball of wax. You’ve got people hiding behind 14 different anonymizers who may not even be based in this country. It was an interesting way to get into the business, that’s for sure.
In addition to Michael Huppe, SoundExchange is guided by an executive leadership team consisting of (from top) chief business officer Tommy Korpinen, CFO/COO Anjula Singh, general counsel Tim Dadson and chief technology officer Luis Bonilla.
Elliot O’Donovan
What are the next big goals for SoundExchange?
SoundExchange, 10 years from now, is going to be an even bigger part of the industry than we are today. When we moved into publishing in June 2022, part of that was to bring some of the same philosophy and perspective and transparency into the publishing world that we brought into the sound-recording world. The ultimate thing is to marry up the metadata. Wouldn’t it be great if there was one central nonprofit place where you had all the authoritative data about who wrote the song, who owns the publishing, what are the splits, who played [in the] background, who sang vocals? It’s interesting and a little crazy we don’t have that as an industry. If we can move in that direction, that removes friction.
Obviously, [artificial intelligence] is a big topic. There are a lot of benefits and a lot of threats. We would like to play a part in making sure AI is rolled out responsibly so we can take advantage of all the benefits, but also set up guardrails so it doesn’t hurt creators — and, by the way, society.
I would love to continue our work in making the business side of music flow more smoothly. The sign of success, in 10 years, is that no one’s even talking about transparency or metadata or mistaken lineups or not knowing who wrote a song. I hope in 10 years, we’re not even talking about that because we’ve solved the problems that got us here.
How has SoundExchange changed over 20 years?
In those early years, people didn’t necessarily know who SoundExchange was. We would have money for somebody and contact them: “Just give us your name and number and bank account.” Understandably, people rarely give that up unless they get to know you. I think people know who we are now. At South by Southwest, we get a list of all the bands, we cross-reference bands, we put up fliers: “Do you know this band? Send them here. We have money for them.” If you’re commercially active in the industry and you don’t know who SoundExchange is, that’s kind of more on you than it is on us.
SoundExchange’s Fight for Fairness
Visitors are cast in silhouette at the top of stairs near the Capitol Visitors Center at the United States Capitol on Wednesday, Oct. 5, 2022 in Washington, DC.
Kent Nishimura/Los Angeles Times/Getty Images
Under its president/CEO, Michael Huppe, SoundExchange has consistently supported the American Music Fairness Act — which would, for the first time ever, impel terrestrial radio companies to pay performers and copyright holders when airing their songs.
Since U.S. Reps. Ted Deutch, D-Fla., and Darrell Issa, R-Calif., introduced the bill in June 2021, it has slowly progressed through Congress. In December 2022, the House Judiciary Committee approved the legislation. “For decades, broadcast corporations have made hundreds of billions of dollars while denying creators royalties for music played on AM/FM radio stations,” Huppe said in a statement at the time. “That’s fundamentally wrong.” In February, Sens. Marsha Blackburn, R-Tenn.; Alex Padilla, D-Calif.; Thom Tillis R-N.C.; and Dianne Feinstein, D-Calif., reintroduced the bill into the U.S. Senate.
On its website, SoundExchange summarized a key exception for small, local broadcasters: Those making less than $1.5 million in annual revenue and whose parent companies make less than $10 million annually would pay just $2 per day to rights holders so they could play any song they want over the air.
The National Association of Broadcasters, which opposes the bill, last December called the legislation an “onerous performance fee” and a “new performance tax” that would “irrevocably damage local radio.” Since the Copyright Act of 1909, broadcasters have consistently won this argument. In the 1930s, top bandleaders Fred Waring and Paul Whiteman formed an advocacy group called the National Association of Performing Arts; in the late 1980s, Frank Sinatra wrote letters to fellow pop stars to build a unified artist coalition; and in the 1990s, Congress passed laws forcing digital services to pay royalties and exempted over-the-air broadcasters from doing the same.
In a December 2022 Billboard op-ed, Huppe countered the NAB: “Corporate broadcasters argue that a ‘mutually beneficial relationship’ exists between AM/FM radio and music creators,” he wrote. “Yet their actions belie that claim, as they spend millions to fight this legislation and avoid sharing the billions of dollars they make in advertising from music.”
This story originally appeared in the Aug. 26, 2023, issue of Billboard.
Since the rise of digital music technology in the 1990s, royalties from online music have proved bountiful for star performers.
But back then, forward-thinking music industry executives and musicians helped make sure that non-featured performers on recordings, like session players and backup singers, could also share in digital music royalties. One of those income streams — the AFM & SAG-AFTRA Intellectual Property Rights Distribution (IPRD) Fund, which marks its 25th anniversary this year — reports paying out $650 million to date to such artists.
For the 12-month period ending March 31, 2021 — the most recent full year for which its finances are available — the nonprofit fund has distributed $57.2 million to eligible performers.
Most of the fund’s revenue comes from SoundExchange, which collects royalties for every song played on digital radio like Pandora, webcasters like iHeartRadio and satellite radio services like SiriusXM. Those royalties are split: 50% to the record label, 45% to the featured artist and 5% to non-featured performers.
Fund participants span a spectrum of musical skills and styles. They include vocalists such as Carmen Carter (who has recorded with Beyoncé, Céline Dion, Whitney Houston and Luis Miguel), Wendy Moten (Carrie Underwood, Buddy Guy, Cece Winans) and Dan Navarro (Dolly Parton, Julio Iglesias, Neil Young), as well as musicians like guitarist Michael Landau (Enrique Iglesias, Diana Ross, LeAnn Rimes), keyboardist Greg Phillinganes (Michael Jackson, Mariah Carey, Elvis Costello, Stevie Wonder) and drummer Abraham Laboriel Jr. (Paul McCartney, Sheryl Crow, Miley Cyrus), among many others.
But while collecting royalties from Sound Exchange is easy and many musicians are easy to find, tracking down every performer who should get a cut can be a challenge. Though the fund paid out royalties to some 27,000 non-featured musicians last year, many are still unaware of its existence — or that they might have royalties to be claimed, says fund CEO Stefanie Taub.
“The big thing for us is we really want to make sure that the non-featured performers are aware that we’re here and there is this money source for them,” says Taub, a 25-year AFTRA and SAG-AFTRA veteran who prior to leading the fund sat on its board of directors.
The SoundExchange royalties paid to labels and performers are the result of the Digital Performance Right in Sound Recording Act of 1995 and the Digital Millennium Copyright Act of 1998, which between them amended copyright law so that, among other things, digital and satellite radio services pay royalties for recorded music. (Terrestrial radio doesn’t make any payments to record labels and performers but pays royalties to songwriters and music publishers.)
As part of the revamped copyright law, AFM (American Federation of Musicians) was designated to be the agent to pay out half, or 2.5%, of the 5% due to non-featured musicians on songs played on digital and satellite radio, while AFTRA (American Federation of Television and Radio Artists) was designated to oversee the other half (2.5%) of the royalties for non-featured singers.
The two unions agreed to collaborate on a single administrator to collect and pay out the royalties. Thus, the AFM & SAG-AFTRA IPRD Fund was born.
“Back then, it made sense to create this fund so they didn’t waste money with duplicate efforts,” Taub says. “So it’s very unique that these two completely separate unions came together to create this fund.”
Stefanie Taub
Courtesy of AFM SAG-AFTRA Fund
How do you view this anniversary of the fund?
We’re very proud of the fact that we paid over a half-billion dollars to non-featured performers in our 25 years. We’re in a unique space because many people are aware of how featured artists — name artists on recordings — get paid for their music. But there’s not as much awareness that our fund exists and that it pays the non-featured performers. People really don’t know we exist, especially when we first started out. Back then, we were collecting a very small amount: under $100,000 a year. Nowadays, we collect more than $50 million a year. So that is something we really want to promote: This money is there for these performers, and we are here to pay it to them.
Does a musician need to be in the union to qualify for funds?
That’s a misconception. Even though the unions created this fund, their executives sit on the board, and our name includes the unions; the fund distributes to all performers without regard to union status. We’re required by law to distribute to everyone [regardless of] status.
Where does the Screen Actors Guild, which represents and pays actors, come into the picture? Are its funds blended into what you collect?
SAG represents mostly actors but also other performers in film and TV, [so] if a singer did a song in a film, that would be represented by SAG; if they do a record, they are represented by AFTRA. But the SAG funds are completely separate, and what we collect is completely separate from anything that the unions do on their own.
Your financial statement for the fiscal year ending March 31, 2021, shows that the fund collected $63.1 million in royalties. How much came from SoundExchange?
It fluctuates, but it has been around $50 million or more for [each] of the past five or six years.
Foreign royalties also flow into the fund. What’s the source of those monies?
They are due to copyright treaties and to reciprocal agreements with collection organizations in other countries — and those royalties consist of many different things, including what they call “private copying”; in some foreign countries, they collect a royalty on devices like iPhones and iPads and things like that. Some countries do pay the U.S. [royalties] on broadcast terrestrial radio and even [on] what they call “communication to the public,” like songs played in nightclubs and restaurants. Every country is a little bit different in what royalties they pay to the U.S.
So, percentagewise, what would you say the breakout is from SoundExchange versus the other sources of income?
I would say SoundExchange is about 80% of what we collect. But we’re growing in the international space every year, and we’re hoping to increase that as time goes on. We had a very good year last year. Our financials are not showing yet for that, but we collected over $25 million internationally last year.
Are there other challenges your organization faces in paying out royalties?
When we reach out to people [eligible for payments], some don’t believe us because no one has ever gotten a secondary income stream from their recordings. Of course, we need to verify their identity and we ask for certain information. And these days, everybody’s concerned about their privacy, so they think it’s a scam sometimes. But the more we can get our message out, the more that creates awareness, so [that] people actually do sign up for us.
How do you reach musicians who might be due money?
We have a whole department called artist relations, and their only job is to either take incoming inquiries or to actively search for folks where we’ve seen their names on credits but need to find them. We use all types of resources, whether it’s the internet, social media or other publicly available information. We also try to get other participants who have been paid to let their friends know about our fund.
A big question for funds like yours is, how much of what you collect do you match with eligible recipients and pay out every year?
Our current percentage is about 82% payout, and we are reducing the unmatched number every year.
And your administrative costs are about 14% of your revenue.
We have an obligation to make sure we’re doing the right thing with other people’s money. It’s not my money, so I always look at the most efficient way to get the job done so that as much of what we collect as possible can go out the door to the performers.
What if the album credits don’t specify who played on what song?
When we get the money from SoundExchange, we do our research on a track-by-track basis and by individuals. It’s very difficult because, depending particularly on the age of the recording — or where it was done — sometimes there’s no information at all. That’s why we really encourage people to also look at the list on our website of all the recordings that we have money for. If they make a claim on a recording, then we always require proof that shows they are on the recording. That proof could be a union contract, liner notes or something printed somewhere on the internet. And we cross-check multiple sources to make sure that everything’s matching.
What if the featured artist says, “Yeah, he played on my track”?
We accept that, too. Or often there might be other side musicians on the track who vouch for the third, and we will accept that.
How many titles do you research and pay out on?
In April 2023, the fund distributed royalties on 50,000 titles. And we’re increasing that every day. But it’s very time-consuming to research non-featured artists, especially now when there is often no printed [credits] because there is no physical recording. But there’s a current drive to get more metadata to be included in a lot of [digital] tracks.
It’s the record labels that should make sure songwriters, publishers, side musicians and singers are listed.
Yes, and they’re not as driven to make sure that the non-featured artists are getting credit.
There have been some recent grievances with the fund, including a suit over $45 million in undistributed funds and another complaint about a data purchase and service fee paid to the unions. What has happened with those complaints?
The former was settled in November 2020, and the latter was resolved in March 2022. We welcome the resolution of these matters so we can focus our resources on what we do best, which is putting money into artists’ pockets.
Are there any other messages you would like to get out?
Just to let people know that they should take a look at our website and make sure that if they’ve done any non-featured work on songs, they should sign up and create an account so that we can find them and pay them. That’s the whole reason we exist — to pay performers. We want to make sure that we’re creating that awareness.
This story originally appeared in the July 15, 2023, issue of Billboard.
Coi Leray notched her fourth entry on the Billboard Hot 100 songs chart with “Players,” her TikTok-viral hit that’s currently sitting at No. 12 as of March 25, 2023.
When asked when she knew she made it, Leray told Billboard at Rolling Loud California, “When I found out I was on the top 10 U.K. charts, and then the top 20 pop charts and then the top 20 Billboard [Hot 100]. That was a big stepping stone for me because my dream was to cross over. Of course, I love Billboard. I look up to you guys. You guys are watching me grow, so I can’t wait to show you how much more I have for you.”
If you need a guide to follow along with Coi Leray’s “Players,” find the lyrics below:Yeah‘Cause girls is players too, uhYeah, yeah‘Cause girls is players too (keep it player, baby)‘Cause girls is players tooBi–hes gettin’ money all around the world‘Cause girls is players too
What you know ’bout livin’ on the topPenthouse suites, lookin’ down on the opps?Took him for a test drive, left him on the lotTime is money so I spent it on a watch, hol’ onLil’ ti–ies showin’ through the white teeYou can see the thong bussin’ out my tight jeans (okay)Rocks on my fingers like a n—a wifed meGot another shorty? She ain’t nothin’ like me (yeah)
‘Bout to catch another flight (yeah)The apple bottom make ’em wanna bite (yeah)I just wanna have a good nightI just wanna have a good night (hold up)If you don’t know now you knowIf he broke then you gotta let him goYou could have anybody, eeny, miny, moe‘Cause when you a boss, you could do what you want
Yeah‘Cause girls is players too, uhYeah, yeah‘Cause girls is players too (keep it player, baby)‘Cause girls is players tooBi–hes gettin’ money all around the world‘Cause girls is players too
I go, on and on and on againHe blowin’ up my phone but I’m ignorin’ himHe thinkin’ he the one, I got like four of himYeah, I’m sittin’ first class like Valedictorian, uhCame a long way from rag to richesFive-star bi–h, yeah, I taste so deliciousLet him lick the plate, yeah, I make him do the dishesNow he on news talk ’cause a bi–h went missin’, sheesh
‘Bout to catch another flight (yeah)The apple bottom make ’em wanna bite (yeah)I just wanna have a good nightI just wanna have a good night (hold up)If you don’t know now you knowIf he broke then you gotta let him goYou could have anybody, eeny, miny, moe‘Cause when you a boss, you could do what you want
Yeah‘Cause girls is players too, uh(And it’s time that we let ’em know that)‘Cause girls is players too (keep it player, baby)‘Cause girls is players tooBi–hes gettin’ money all around the world‘Cause girls is players too
Lyrics licensed & provided by LyricFind
Lyrics © Universal Music Publishing Group, Sony/ATV Music Publishing LLC
Written by: Akil C. King, Clifton Nathaniel Chase, Coi Leray Collins, Edward G. Fletcher, Felicia Ferraro, Melvin Glover, Sylvia Robinson, Yonatan Goldstein
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