Publishing
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Regional Mexican star Carin León signed an exclusive global publishing agreement with Universal Music Publishing Group (UMPG), Billboard has learned. A leading force in the música mexicana genre, the Sonora-born singer-songwriter has established himself as one of Mexican music’s most versatile and eclectic artists today recording in norteño, banda, R&B and pop. “There is no […]
Concord announced the completion of its $468 million acquisition of the Round Hill Music Royalty Fund on Thursday (Nov. 2), officially completing the year’s biggest catalog deal. The deal includes over 150,000 songs, among them works by The Beatles and tunes recorded by Elvis Presley, Meatloaf, James Brown and Billie Holiday, but also marked a pivotal moment for publicly traded royalty funds and Concord’s scale of business.
Concord CEO Scott Valentine, who succeeded Scott Pascucci in February, spoke to Billboard about the deal, what it says about the state of the music royalties market and how Concord plans to deal with the headwinds that currently face the music industry.
On Oct. 31, you closed the acquisition of Round Hill Music Royalty Fund. Why was it attractive to Concord and what does it say about the state of the song catalog market?
When you look at the landscape of acquisitions of scale and quality, [Round Hill’s] assets had been on our radar for a while. Our view was that the stock price of the company wasn’t giving the appropriate fair value to what the assets were worth. Josh was one of the early proponents of the notion of music assets as financial assets. We have similar backgrounds, having started in investment banking. The quality of assets that Round Hill had accumulated was remarkable, in terms of the breadth, the genres and the ability for these assets to be used in film and television. There are Beatles songs in here for God’s sake. I’m referring to these things as assets. They’re works of art, really, that have stood the test of time from a revenue perspective.
You’ve indicated that this deal counters the broader narrative that the music royalty market has deflated over the last year or so. Why?
Our deal proves that from an institutional perspective the underlying value of copyrights is still there. We’ve just gone through the first-ever cycle of price increases at the DSPs. It seems, knock on wood, that the impact on churn has been within the tolerance levels [of customers]. You have continued growth in countries around the world that have never in the history of the music business been significant sources of legitimate revenue. We are now expecting fairly regular price increases [by the DSPs] in mature markets. So, if you believe in the long-term trends that suggest the value of music should increase over the mid-term. Then, as institutional investors, it comes down to what is your time horizon?
But with Concord acquiring one publicly listed music royalty fund, and Hipgnosis investors voting to possibly wind up the Hipgnosis Songs Fund, doesn’t this spell the end of the publicly traded music royalty fund experiment?
The story isn’t written yet on Hipgnosis. Their shareholders and board still have time to [explore options]. The thing that strikes me about the commentary around Hipgnosis has been the fundamental belief by shareholders in the underlying value of the assets it owns. Shareholders rejected the sale of those assets because they seemed to fundamentally believe the value of those assets was greater than [what they could get in that) proposed in the sale.
The question is whether a publicly traded fund is or isn’t the right vehicle to access returns. We’ve tapped the asset-backed securities space and have done very well. There is certainly private investment happening and it continues to happen. I still see significant institutional interest in this space. We are still getting inbound requests from artists, managers, etcetera, asking us to look at assets for sale. The underlying market for assets is robust. Because interest rates have gone up, the high end of the price scale has come down. But there is still plenty of activity where the prices make sense.
How do you view Concord’s creative mission and direction?
We built the company over time around our catalog. We have an extraordinary catalog of works that span over a century. Because we’ve been financed by pension funds and institutional investors, the cash flow of the catalog and investing in catalogs has been part of how we grow the company. But I’m keenly focused on the notion that we are not a fund. We are a fully functional organic music company. You can’t be a music company without creating new art and discovering new artists and exposing those new artists to the world. They will create the next remarkable piece of art that 50 years from now people talk about buying. Concord has the scale now and the relationships to be a leader in catalog acquisition and exploitation but also front-line investment. And on the music publishing side, we have really grown that business over the last three to four years. We have the writers of some of the largest songs in the world. One of ours co-wrote most of the last two Harry Styles records. On the recorded side, we’ve always been in more niche genres — jazz, bluegrass, adult contemporary. We have not been in the front-line pop business or R&B or hip-hop. Those genres have always been the domain of the majors. It’s because it takes a significant amount of marketing expenditure and recording…. That said, we’re now the size that we can compete occasionally to get a few artists in those genres. I think it’s important to grow that business.
We have seen layoffs hit different music companies over the last 18 months. Do you feel your team is in good shape? Are you looking to make any pivots in strategy or structure?
From a senior exec position, [former chief label officer] Tom Whalley stepped back, so we had to find a replacement. That’s why we got Tom Becci. Because he is taking on this new role, there is a little bit of tweaking that will go on — the integration of frontline and catalog. How people report up through the recorded music division and how people spend their time may take some tweaking. But it’s a structural shift —reporting changes. I feel like we’ve always thought about the business and growth in a careful way so that we hopefully did not over hire or put people in situations where, if there was a retrenchment in the business, we had challenges. I don’t see the need for wholesale changes or layoffs in the near term.
What is the thinking behind putting frontline and catalog under the same roof?
From our perspective, the issue with catalog versus frontline is you’re really talking about a relationship with an artist. If we have an artist on one of our frontline labels who also has catalog, having two different divisions working that artists’ life work creates some weird, unintended division when the artist is hoping to have one team of people. So, it’s an alignment to get into the way the artist is thinking about their own work. There is an industry tendency to spend a lot of work on an artist’s latest album for good reason. But in the world we live in today, an artist’s older works can be reactivated very quickly in tandem with the release of a new album. We hired Tom largely because he’s had a little bit of everything. He has worked in catalog, frontline at Universal, in management. He’s got perspective from all these different angles.
What is happening with Concord’s theatrical division?
We own Rodgers and Hammerstein. We rep 30,000 theatrical rights. It’s a sneaky, large part of our business. It’s a very interesting corner of our business that we’ve built through acquisitions in the last five years. We did those acquisitions [starting in] 2018, and the challenge has been that a lot of our business is licensing to schools and universities that were impacted during Covid. We were also a producer in Hadestown, and an investor in Some Like It Hot. We are continuing to invest in new shows on Broadway and repping works that are going out on tour. There is a fair amount of investment going on there.
What are revenues going to come in at this year?
I think we’re going to come in around the mid-$600 million range. We’ve been growing pretty consistently.
How much debt does the company carry?
The ABS was $1.8 billion and then we just did the separate tranche with Apollo for $500 million. We have a revolver as well with a consortium of banks. I don’t remember that balance, but we did not use up all of our dry powder [on the Round Hill deal]. One of the reasons we wanted to do the initial bond offering with Apollo was that we thought there was an opportunity to go back to the market when we wanted to finance acquisitions. We think there is going to be a rinse and repeat component to our access to that market.
TaP Music Publishing has sold Dua Lipa back her publishing rights, the company announced Thursday (Nov. 2). She was previously a client of the company’s artist management roster as well. TaP said in a statement: “We wish Dua all the best for the future.” Anna Neville, co-president of TaP Music, added: “This is an exciting […]
Nashville-based booking outfit The Neal Agency, known for a roster that includes artists Morgan Wallen and Bailey Zimmerman, has launched a music publishing division, Billboard can reveal.
The Neal Agency’s head of business development, Ryan Beuschel, will spearhead the new division. Beuschel joined The Neal Agency earlier this year following stints at Warner Chappell Nashville (as vp of A&R/strategy and ASCAP.
The new division’s first signing is singer-songwriter Palmer Anthony via a co-publishing venture with Warner Chappell Music (WCM). Anthony previously signed with The Neal Agency for booking.
“The ultimate goal for the company is to be truly a place to develop artists,” Neal tells Billboard. “Obviously, a big part of that is on the road, but [also] being able to have a hand in the creative process. … As the music industry continues to evolve, we have the opportunity to help create and build artists from the ground up.”
Beuschel says, “I think Palmer is a great example of being the first person that we did this with because he was signing to the agency, and then shopping around and looking into publishing deals. At one point, he mentioned, ‘It would be amazing if we could work together,’ and we knew each other before he signed with The Neal Agency. He had been touring in Texas and was writing some really compelling stuff alone and with co-writers. I felt like it was a great opportunity for The Neal Agency to have creative direction and touring strategy inside the same building, communicating with each other back and forth to push his career as far and as fast as we can.”
“Working with Ryan, with his background at ASCAP and Warner Chappell, this partnership makes a lot of sense,” adds Warner Chappell Music Nashville president/CEO Ben Vaughn. “I met Palmer because of [Beuschel and Neal] and it’s been really cool to watch Palmer starting to network through the town and co-writing. It’s great to build this new thing out with them.”
Anthony grew up primarily in northern California and went on to play baseball at the University of California, Santa Barbara, before pursuing songwriting. After graduation, he moved to Fort Worth, Texas, and immersed himself in the Texas music scene, opening for artists including Riley Green, Chase Rice and Randall King.
The Neal Agency agent Haley Teske was responsible for bringing Anthony’s talent to the attention of the company in the first place, leading to his initial signing for booking.
“I saw him at [Nashville music event] Whiskey Jam and I could tell he was a hard worker, and [I] just kept in touch until the time was right,” says Teske.
“I’ll say it was a best-case scenario for me, too,” Anthony says, “because Haley was a supporter very early in the whole scene and the fact that all these pieces kind of fell into place, with Ryan at The Neal Agency and Ben at Warner Chappell. It was a perfect scenario for me to keep it kind of in-house for publishing and booking.”
Neal launched The Neal Agency in 2022, following his departure from WME. The company’s initial roster included Wallen, ERNEST, Riley Green, HARDY, Seaforth, John Morgan, Chase Rice. and Ashland Craft. It has since grown to include Zimmerman, CCM/country artist Anne Wilson, Ella Langley and lifestyle brands Stevenson Ranch and Whiskey Jam.
Neal says passion — not an allegiance to a certain genre — will continue to drive new signings.
“Me, personally, I listen to a lot of alt-rock. I grew up on Southern hip-hop, Project Pat,” he says, noting that the agency also works with rapper mike for booking. “So we’ve grown to understand that, having to forge relationships with promoters and festivals that we didn’t before, is that there are no barriers for us as a company. It’s about passion, not genre, for myself and all of our agents and staff.”
CTM Outlander has inked a deal with four-time BMI songwriter of the year winner Ross Copperman, including both the acquisition of Copperman’s catalog (via Iris in the Sky with Diamonds) as well as a publishing deal for his future works.
Copperman has had songs recorded by Keith Urban, Tyler Hubbard, Luke Bryan, Blake Shelton & Gwen Stefani, Gabby Barrett, Kenny Chesney & P!nk, Dierks Bentley, Brett Young, Darius Rucker and more. CTM will create new opportunities for Copperman through a creative partnership with SMACKSongs. Copperman was previously with Sony Music Publishing.
As part of the arrangement, CTM Outlander also acquires Copperman’s writer share for songs previously published by Plain Jane, including “Love Ain’t” by Eli Young Band, “Happy Anywhere” by Blake Shelton feat. Gwen Stefani, “Get Along” by Kenny Chesney and “Living” by Dierks Bentley.
Copperman said in a statement, “I am profoundly grateful for the opportunity to work alongside remarkable individuals like CTM and SMACK in my new team. CTM’s visionary leadership has already brought us exciting opportunities beyond Country, expanding our horizons. I’ve always held immense respect for SMACK, and I eagerly anticipate the promising collaborations and accomplishments that lie ahead.”
André de Raaff, CEO at CTM Outlander, said, “From the first moment we met Ross we felt his energy, passion and drive for music. His goal is set to break new artists and help creative new opportunities with the ones he’s already been working with. We are here to support him in any type of way and see Ross as somebody that is helping to develop the country music genre into a global genre.”
CTM Outlander is a partnership between the innovative and disruptive Dallas, Texas based Outlander Capital led by Les Ware and Mike McKool and the Dutch-based leading independent music entertainment company CTM, led by industry veteran André de Raaff. CTM Outlander previously acquired Shane McAnally‘s catalog earlier this year, in addition to other SMACKSongs works. In 2022, the CTM Outlander acquired catalogs of Natalie Hemby, Michael Tyler and Ben Burgess.
Mike McKool, director of CTM Outlander, said, “When we created CTM Outlander, we had no specific agenda as far as genre was concerned. It was only after meeting and developing relationships with the songwriting community in Nashville, that we decided to place an emphasis on country music. As we continue to invest and grow our portfolio, Ross is another example of the kind of artist we want to be in business with. We couldn’t be more excited to work with him moving forward, while also furthering our relationship with SMACKSongs.”
Robert Carlton, president of SMACKSongs, added, “SMACK is proud to further our partnership with CTM through this deal. Ross has been one of the premier writers and producers in Nashville over the last decade. We’ve been fortunate to share quite a bit of success with him through co-writes, but feel truly honored that he chose to entrust SMACK with this next chapter of his career.”
Kobalt, the digital-focused publishing administration company, has teamed up with investment funds managed by Morgan Stanley Tactical Value to invest more than $700 million into music IP in the next few years. The partnership will see Kobalt managing the creative, sync, licensing, administration and investment services for the copyrights that are purchased.
The deal, which was advised by Goldman Sachs, marks Kobalt’s return to managing investment for outside capital. Previously, Kobalt had two funds it worked with under Kobalt Capital, its investment management arm, both of which were sold in recent years. Kobalt’s first fund contained over 33,000 songs, including songs recorded by Lindsey Buckingham, Steve Winwood, the B52’s, 50 Cent, George Benson, Bonnie McKee, Nelly and Skrillex. It sold to Hipgnosis Songs Fund in late 2020 for a price tag of $323 million or 18.3 times the net publishers share, and it realized a $20 million gain for Kobalt. While it was the biggest sale for Kobalt at the time, the first fund represented less than 30% of Kobalt’s IP holdings at the time.
The second fund, Kobalt Music Royalty Fund II, sold to an investment group comprising of KKR and Dundee Partners the following year for $1.1 billion. To manage the investments of the royalty fund as well as other IP previously acquired by KKR, the partners formed a platform Chord Music Partners, which tapped Kobalt Music Publishing to continue to handle publishing administration for the works. The fund is believed to have included the SONGS publishing catalog, Insieme Music catalog, which it acquired from Glassnote, and the David Hodges catalog.
Since that sale, Kobalt has not worked with outside money for catalog acquisition.
Outside of Kobalt Capital, the publishing administrator, helmed by chief executive Laurent Hubert, has made a number of other major changes in its business. In 2021, it also sold off AWAL, the artist services company and distributor to some of music’s most successful independent talent, and its neighboring rights operations to Sony. In September 2022, following reports of its first-ever profitable year, Kobalt sold a majority stake to Francisco Partners.
“Kobalt is a pioneer in investing in music, increasing the value of copyrights, and creating music as a viable asset class,” says Hubert. “Morgan Stanley Tactical Value’s trust in Kobalt is a testament to our platform and leadership in the music industry. We are proud to form this unique partnership.”
“Morgan Stanley Tactical Value has profound respect for songwriters and the immense value of their art,” said Cameron Smalls, managing director, Morgan Stanley Tactical Value. “We are thrilled to partner with the leading creator-first publisher that is a pioneer in maximizing royalty collections for songwriters and rightsholders. Together with Kobalt’s infrastructure and deep commitment to bettering the music industry, we are excited about our partnership and the opportunities ahead.”
Nashville music publishing company Boom Music Group has severed ties with SESAC Nashville Music Awards’ 2020 songwriter of the year Matthew McGinn, after felony and misdemeanor charges were filed against him on Oct. 28 in Davidson County, Tenn. “Boom Music Group is extremely saddened about the reprehensible events that transpired this weekend with Matt McGinn,” […]
ASCAP CEO Elizabeth Matthews was among those honored on Sunday night, Oct. 29, at the 2023 Songwriters of North America (SONA) Warrior Awards gala in West Hollywood. The event was hosted by Grammy-nominated songwriters Bonnie McKee and Shane Stevens.
The other honorees were songwriter Justin Tranter; country artist and podcast host Rissi Palmer; and the late songwriter Allee Willis, who co-wrote the Friends theme, “I’ll Be There for You.” That song had added resonance on Sunday since Matthew Perry, one of the stars of that long-running sitcom, had died just the day before.
At the event, ASCAP chairman of the board and president Paul Williams and Grammy-winning songwriters and producers Jimmy Jam and Terry Lewis lauded Matthews’ achievements. Hit songwriter MoZella performed the Miley Cyrus smash “Wrecking Ball.” (All are ASCAP members.) There were also video tributes to Matthews from Stephen Schwartz, NE-YO, Marcus Miller, Desmond Child, John Platt and Ashley Gorley, among others.
“To be recognized by SONA means the world to me,” Matthews said in accepting the honor. “I know that songwriters are the true musical warriors – unbelievably brave and remaining strong in the face of uncertainty every day as new technology challenges their livelihoods. Yet, songwriters are still able to remain vulnerable and go deep creatively, opening their hearts to write the music that we all love. I am constantly inspired by songwriters and it has been an honor of a lifetime to work for and alongside music creators.”
“As a friend of Beth’s, I know firsthand how tirelessly she works above and beyond her very very big job of running ASCAP,” said SONA founder and executive director Michelle Lewis. “I want everyone to know what I know and see what I see — that she is the ultimate warrior for creators.”
Tranter, a Grammy nominee for song of the year six years ago for co-writing the Julia Michaels hit “Issues,” has advocated for the LGBTQ+ community and worked with stars such as Selena Gomez, Britney Spears, Gwen Stefani, Lady Gaga, Justin Bieber and many more.
In 2007, Palmer became the first African American woman in 20 years to reach Billboard’s Hot Country Songs chart. She achieved the feat with her single “Country Girl,” which was followed by two more hits, “Hold on to Me” and “No Air,” a cover of the Jordin Sparks/Chris Brown pop smash.
Willis won a Grammy in 1986 for best album of original score written for a motion picture or a television special for co-writing The Pointer Sisters’ hit “Neutron Dance” on the Beverly Hills Cop soundtrack. Her most famous works are the Friends theme and Earth, Wind & Fire’s “September.” Willis was inducted into the Songwriters Hall of Fame in 2018. She died in 2019 at age 72.
BMG terminated about 40 employees on Thursday (Oct. 27), sources within the company tell Billboard. The layoffs cut effectively the entirety of its film/TV, theatrical, and international marketing department for recordings as well as its Modern Recordings label, according to sources and an internal memo obtained by Billboard. It took place on the day of the New York office’s annual Halloween party, says a source.
The eliminations include company leaders like Fred Casimir (executive vp, global repertoire) and Jason Hradil (senior vp, global repertoire) and affected employees in its Berlin, New York, and Los Angeles offices. A source within the company fears there are more layoffs to come and believes the layoffs may be a result of the company hiring the consulting firm McKinsey & Company in recent months.
After employees were notified they were being laid off, the company hosted a call with the U.S. recorded music team — including those who were let go — according to a source within the company.
“Everyone at BMG says it feels like a venture capital firm now and not a record label,” laments an employee. “Things got dark real fast, and it bums me out watching a lot of amazing people lose their jobs right before the holidays.”
In a video call hosted by CEO Thomas Coesfeld, the leader explained that the restructuring was part of the implementation of its new strategy, BMG Next, according to an internal memo shared with Billboard. “The international marketing team was set up five years ago in response to the needs of the company at the time,” he said to senior managers. “Our talented team has done a great job, driving international campaigns for artists including Lenny Kravitz, Kylie Minogue, and Louis Tomlinson, but unfortunately on a business level, expectations from this novel structure were not met and it created duplication of functions with local teams. The clear business decision is to instead give artists a single contact point with their local repertoire teams.”
A BMG spokesperson declined to comment beyond providing the memo.
In the last year, BMG — which represents talent like Jelly Roll, Halsey and Lainey Wilson as well as certain rights to the catalogs of Tina Turner, Peter Frampton, Mötley Crüe, and more — has made a number of significant business changes. In January, its longstanding chief executive Hartwig Masuch announced he would retire and would be succeeded by then-CFO Coesfeld, effective Jan. 1, 2024. On April 18, BMG claimed it would be the first music company to fully integrate its catalog and frontline music operations. On May 17, Masuch announced he would accelerate Coesfeld’s transition to CEO to July 1 instead.
In September, BMG announced it was winding down its agreement with Warner Music Group’s ADA and would be taking over direct management of its 80-billion-stream digital distribution later this year. (Digital revenues contributed 70% of BMG’s overall revenues in 2022.) Last week, BMG also announced it would be partnering with UMG’s commercial services division for the distribution of its physical recorded music. Coesfeld described the deal as the first project of a burgeoning “alliance” between the two music companies.
Concord Music Publishing has signed Amaarae to a global publishing deal, in partnership with Immensum Music. This deal includes the Ghanian-American pop artist’s full catalog and all future works, including Fountain Baby, released earlier this year.
One Two Many (OTM) Music has signed Grammy-nominated producer Dot Da Genius to an exclusive global publishing deal, including both his back catalog and future works. This includes songs the producer has made with Steve Aoki, Don Toliver, Denzel Curry, JID, and Kid Cudi.
Warner Chappell Brazil has acquired a catalog from music publishing company Deck, which covers over 10,000 musical compositions by Pitty, Chico César, Falamansa and Sorriso Maroto, among other artists. The deal was first reported by POPline. According to the website’s report, the agreement between Warner and Deck — record label and publisher founded in 1998 — is one of the largest in Brazilian music.
Warner Chappell Music U.K. and Transgressive Publishing have renewed their joint venture partnership, which has been going for the last 17 years. The extension marks Warner Chappell’s longest-standing JV to date. Along with this news, Transgressive has also announced a new deal with the Foals for their catalog, side projects and future recordings.
Avex USA Publishing and The Revels Group’s Coup D’Etat Music have entered a joint venture to sign Victony to a global deal. A trusted collaborator of Rema, Burna Boy, Don Toliver and more and creator of viral hit “Soweto,” Victony is an essential part of the rising popularity of Afrobeats worldwide.
Peermusic has acquired Arctic Rights Management (ARM), the largest indie publisher in Norway. The deal will give peermusic the publishing rights to ARM’s 5,000+ recordings and compositions. This includes the publishing interest in songs like “Don’t Start Now” and “New Rules” by Dua Lipa and “365” by Zedd and Katy Perry.
Kobalt has signed U.K.-based songwriter and producer Toby Scott to a global publishing administration deal. Scott is an in-demand collaborator in the dance space and his discography includes songs with Galantis, David Guetta, Tiesto, Alok, Dom Dolla, Anyma, D.O.D, Jax Jones, Purple Disco Machine, Martin Solveig, Sophie and the Giants and Robin Schulz.
Warner Chappell Music and Tape Room Music has jointly signed country songwriter and producer Casey Brown to a global publishing deal. Over the course of his career, Brown has worked with Parmalee, Russell Dickerson, Dierks Bentley, Ashley McBryde, Keith Urban, Thomas Rhett, Tyler Hubbard, and Lauren Alaina.
Sentric Music Group has signed electronic musician and composer Amon Tobin to a worldwide publishing administration deal. To date, Tobin has released 17 studio albums, first under Ninja Tune and now under his own label Nomark, and his songs have appeared in films like The Italian Job, 21 and Rampart, Divine Intervention, Taxidermia, Splinter Cell, Infamous and more. As part of the deal, Sentric will represent Tobin’s catalog for synch opportunities.
Warner Chappell Music has signed Jenee Fleenor to a global publishing deal. The first woman to be nominated and win Musician of the Year at the 2019 CMA Awards, Fleenor is an in-demand fiddler, playing on top country songs like “I’ll Name the Dogs” by Blake Shelton, “Heartache Medication” by Jon Pardi, and “Til You Can’t” by Cody Johnson. She also releases music as an artist in her own right, beginning with 2019’s “Fiddle & Steel” and is part of a supergroup called the Wood Box Heroes.
Rogét Chahayed‘s TruSauce Publishing has signed rising producer Brandon Shoop to a worldwide publishing deal. Based in Los Angeles, Shoop’s credits include “Cybah” by Syd & Lucky Daye, “Moonlit Breakers” by Paul Dally & Dijon, “Lip Service” by Cautious Clay, “Sleeping With My Friends” by GAYLE, and Chloe George’s “Ghost Town.”