State Champ Radio Publishing
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Sony Music Publishing (SMP) won the quarter and the year on Billboard’s last Top Radio Airplay and Hot 100 Songs publishers rankings of 2023, while Warner Chappell held on to second place on the Hot 100 and took the No. 2 spot on Top Radio Airplay as well.
Taylor Swift and Doja Cat swapped the No. 1 and No. 2 spots in the song rankings, with Doja’s “Paint the Town Red” winning Top Radio Airplay and Swift’s “Cruel Summer” taking the top spot on Hot 100 Songs.
The holidays added extra jingle to the late Johnny Marks’ royalty statement. He ranked as the top songwriter with four of his holiday classics on Hot 100 Songs, including Brenda Lee’s “Rockin’ Around the Christmas Tree,” which ranked No. 6.
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Meanwhile, Ashley Gorley had a huge quarter as the leading songwriter on the Top Radio Airplay and Top Country Radio rankings, with nine and 16 song placements on the charts, respectively. His biggest hit on both was Morgan Wallen’s “Thinkin’ Bout Me.”
Although SMP topped both rankings, its market share and song count dipped across the board. Its Top Radio Airplay share declined from 30.06% in the third quarter to 27.69% and from a staggering 70 songs to a still-massive 64. On the Hot 100 Songs ranking, the publisher’s market share fell from 30.18% to 27.14% quarter to quarter, and its song placement dropped from 63 to 59. SMP’s top track for the quarter was “Cruel Summer.”
And after a five-quarter run atop the Country Airplay publisher ranking, the company fell to No. 2 with a 22.95% share, down from 28.14%.
Warner Chappell reclaimed the No. 1 Country Airplay spot, which it has held for 22 consecutive quarters before SMP’s ascendance, finishing the quarter with 30.58% of the market, up from 26.20%. That win was part of a stellar quarter for the publisher. Warner Chappell ranked No. 2 on Hot 100 Songs for the second consecutive quarter and was runner-up on Top Radio Airplay for the first time since the third quarter of 2021. Warner Chappell’s Hot 100 Songs market share was 20.65%, up from 18.18%, even though its song count fell from 49 to 44 quarter to quarter. Its Top Radio Airplay share rose more than three percentage points, from 15.87% in the third quarter to 19.12%, and its song count increased from 51 to 54. Warner Chappell’s top song was SZA’s “Snooze.”
Universal Music Publishing Group held steady at No. 3 on the Hot 100 Songs list with a 15.78% share, down from the prior quarter’s 17.95%. Song placement also fell from 43 to 41. UMPG’s 18.47% of the Top Radio Airplay market — down from 21.16% in the previous quarter, when it ranked at No. 2 — put it behind Warner Chappell. Its top song in the Hot 100 chart was “Cruel Summer,” while in the Top Radio Airplay chart it was “Paint The Town Red.”
Kobalt ranked fourth on both the Hot 100 Songs and the Top Radio Airplay charts, scoring a 10.83% market share with stakes in 29 songs on the former and an 8.81% market share with 30 songs on the latter. Kobalt’s showings on both tallies were down from the previous quarter when it had 11.33% market share with 36 songs on Hot 100 Songs and 9.94% market share with 31 songs on the Top Radio Airplay chart. Its top song in both charts was “Paint the Town Red.”
BMG moved up a position from last quarter on Top Radio Airplay to No. 5, growing its market share from 3.23% to 6.77%. Its song placements grew from 10 to 18. On the Hot 100 Songs chart, BMG stayed at No. 5, growing market share from 4.57% to 5.95% and placements from 11 to 16, also including “Paint the Town Red.”
Concord jumped four places from the prior quarter on the Top Radio Airplay rankings, growing its market share from 1.37% to 3.71% and more than doubling its song placements from six in the third quarter to 14. Its top song on that chart was Paul Russell’s “Lil Boo Thang” (No. 8). The publisher returned to the Hot 100 Songs ranking, too, landing at No. 8 with a 1.91% market share, led by Tyla’s “Water” (No. 16).
Otherwise, Pulse held steady at No. 7 in the Top Radio Airplay publisher rankings at 2.66% market share, down from 2.80% in the third quarter. Purple Rabbit Music dropped to No. 8 with 2.07% market share from 3.52% as Luke Combs’ version of Tracy Chapman’s “Fast Car” fell from the No. 1 spot in the third quarter to No. 9. Once again, Hipgnosis Songs Group placed No. 9, with a 1.48% share, down from 1.76% in the prior quarter. And Reservoir fell to No. 10 with 1.43% market share from the prior quarter’s No. 8 finish and 1.82% market share. “Cruel Summer” was the Hipgnosis top song while “Snooze” was Reservoir’s top song.
Rounding out the Top 10 for Hot 100 Songs, Johnny Marks St. Nicholas Music ranked No. 6 with 4.96% market share. Purple Rabbit landed at No. 7 with 1.99% market share. peermusic landed at No. 9 with 1.61% market share, making the ranking for the first time since the third quarter of 2020.Pulse finished at No. 10 with 1.31% market share.
Last Quarter: Tracy Chapman + Oliver Anthony Make History
Kobalt is raising $266.5 million through the sale of a security backed by the publishing royalties of a 5,000-song catalog that includes YoungBoy Never Broke Again (a.k.a. NBA YoungBoy), AJR, Busta Rhymes and Jessie J.
The securitization is backed by a catalog valued at $410 million by Virtu Global Advisors, according to a pre-sale report by Kroll Bond Rating Agency (KBRA) released Tuesday (Feb. 20), which gave Kobalt’s asset-backed security an A- preliminary rating.
The bond allows Kobalt to raise capital on the value of the catalog and pay back investors with the publishing royalties the compositions generate. That puts music royalties in the company of common asset categories such as auto loans, mortgages and credit card receivables — all have a contractual obligation to pay — that are frequently used in asset-backed securities.
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The proceeds are expected to be used to fund reserve accounts, pay certain transaction expenses, repay existing debt and for other general corporate purposes, according to KBRA’s report.
Kobalt’s asset-backed security is the latest in a handful of large securitization deals in the music industry in recent years. Since 2021, Concord, Hipgnosis Song Management, KKR Credit Advisors (with a catalog owned and administered by Kobalt) and Northleaf Capital Partners have raised money through music asset-backed securities rated by KBRA.
The catalog backing Kobalt’s bond is diversified but younger than the typical multi-million-dollar music asset transaction. About 40% of the total net publisher share comes from compositions released since 2019 and about 43% comes from compositions first released between 2011 and 2018. Less than 3% of the total net publisher share comes from compositions from 2000 or earlier.
Nearly a third of the catalog — 29% of the last 12 months’ royalties collections — may be terminated prior to the legal final payment date in 2064, but no termination windows will fall within the next 30 years, according to KBRA. The catalogs of two artists, which account for about 1% of the catalog’s value, are subject to contractual reversion or termination prior to the final payment date. One song is currently subject to a copyright infringement claim that would result in legal expenses and reduced cash flows.
Pop music accounts for 52% of the catalog’s value while hip-hop represents 28% and rock accounts for 9%. Revenue from the United States makes up 63% of gross collections compared to 12% for the European Union and 10% for the United Kingdom.
Catch Point Rights Partners, the private-equity backed music rights acquisition firm that has purchased the publishing of such artists/songwriters and/or producers as Brantley Gilbert, Yelawolf and All Time Low, is now offering a program through which it will buy performance rights income streams from songwriters while allowing them to retain ownership and control of all of […]
Universal Music Group (UMG), the world’s largest music company, has acquired a 25.8% interest in Chord Music Partners for $240 million. As part of the deal, UMG will now handle distribution and publishing administration for Chord’s existing catalog, provided by UMG’s Virgin Music Group and Universal Music Publishing Group (UMPG), respectively.
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Formed in 2021 by KKR and Dundee Partners, the investment office of the Hendel family, Chord owns over 60,000 copyrights. This includes stakes in top songs like “Dreams” and “Landslide” by Fleetwood Mac, “La Grange” by ZZ Top, “Counting Stars” and “Apologize” by OneRepublic, “Redbone” by Childish Gambino, “I Like Me Better” by Lauv, “Pursuit of Happiness” by Kid Cudi, “All Of Me” by John Legend, “Girls Like You” and “Sugar” by Maroon 5, “Halo” by Beyonce and “A Thousand Years” by Christina Perri.
Following the completion of the transaction, KKR will exit Chord. Previously, it was the majority stakeholder in the catalog firm. Now, Dundee is increasing its share to 74.2% and UMG will hold the remaining minority share.
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UMG was advised by Goldman Sachs, Kirkland & Ellis LLP and Freshfields. DLA Piper and Axinn, Veltrop & Harkrider LLP served as legal advisors to Dundee. Fifth Third Bank, National Association served as financial advisor and provided committed financing to Dundee and UMG. The Raine Group served as the exclusive financial advisor and Manatt, Phelps and Phillips, LLP served as legal advisor to Chord Music Partners. Latham & Watkins LLP served as legal counsel to KKR.
Lucian Grainge, chairman/CEO of UMG, said in a statement: “Finding partners who share our passion for identifying iconic songs and recordings that will stand the test of time and deliver long-term growth is essential, which is why we’re so pleased to be working with Stephen and Sam Hendel and Dundee Partners. With the leadership of Jody Gerson at UMPG, Nat Pastor and JT Myers at Virgin, and the support of our experienced creative executives around the world, no one can do more with music rights than our teams. We look forward to creating maximum commercial and creative value for the songwriters and artists in Chord and building for the future.”
Boyd Muir, UMG executive vp/CFO/president of operations added: “We’re excited to partner with the Hendel family in Chord for a number of reasons. First, KKR and Dundee have built a very high-quality catalog that will benefit from our first-rate management and global capabilities. Second, this new structure provides us with an efficient vehicle for future catalog acquisitions, without significant capital allocation through a combination of leverage and partner equity capital. And finally, it offers us the perfect partner to approach future growth opportunistically and flexibly, one who is equally bullish on the long-term prospects for music.”
Sam Hendel, Dundee Partners’ managing principal/co-founder of Chord, added: “We’re thrilled to be partnering with Universal Music Group and embarking on this next exciting chapter for Chord. By combining a best-in-class financial acquisition vehicle with the world’s leading music company, we are creating both a premier platform for music investment as well as a permanent home for premier artists’ legacies and their iconic cultural works. We’d like to thank the team at KKR for their partnership and creating a strong foundation for Chord and its future success.”
“We are grateful to have had the opportunity to collaborate with many leading artists and to create significant value for our investors by building Chord into a differentiated and scaled portfolio,” said Jenny Box, partner at KKR. “We believe that Dundee and UMG will drive further value creation for artists and that they share our commitment to being respectful stewards of artists’ music.”
Primary Wave Music has finalized a deal with the Village People to control the rights to the group’s master recording and publishing assets as well as the rights to their name and likeness. In what is described as a “partnership” with the surviving family of Village People co-founder Henri Belolo — Jonathan and Anthony Belolo — Primary Wave will now look after “Y.M.C.A.,” “Macho Man” and other hits from the group.
Founded in 1977, Village People was started by producer Jacques Morali and his partner Belolo who were working with singer and Broadway actor Victor Willis to provide background vocals for a different musical project. Then Morali told Willis, “I had a dream you sang lead vocals on an album I produced and it went very, very big.” Following his gut, Willis sang four tracks for Morali and Belolo (“San Francisco [You’ve Got Me]” “In Hollywood [Everyone’s a Star],” “Fire Island,” and “Village People”). Quickly, the Village People project became a sensation with their songs climbing to the top of the charts, and Willis, Morali, Belolo formed it as an official group, adding in the rag tag team of Felipe Rose, Alex Briley, Mark Mussler, David Forrest, Lee Mouton and Peter Whitehead to fill out its ranks.
Later, they added Randy Jones, Glenn Hughes and David Hodo to the ensemble after placing an ad in a trade paper that read: “Macho Types Wanted for World-Famous Disco Group.” Donning stereotypical “macho” costumes — like construction work, biker, cowboy and more — group went on to pen defining hits and become a symbol of the Disco era. To this day, the group continues, now comprised of Willis, Angel Morales, James Kwong, Chad Freeman, James Lee, and James J.J. Lippold.
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“As we were picking up the mantle following our father’s passing in 2019, we soon realized that – to achieve his dreams of bringing the Village People ideal into the 21st century the right way is a very bold endeavor,” say the Belolos in a joint statement. “Our partnership with the amazing team at Primary Wave now brings us the backup and expertise that will ensure we can rise to the task together. With multiple projects in development, the future looks bright as ever for the Village People!”
“The Village People have brought so much joy to listeners around the world for decades,” says Lexi Todd, vp of business and legal affairs at Primary Wave Music. “With disco-inspired music all over the contemporary charts, now is the perfect time to launch our new partnership. We look forward to working alongside Jonathan and Anthony to reinvigorate the Village People brand.”
For Will Bratton, the best part of Super Bowl LVIII was not when Kansas City Chiefs wide receiver Mecole Hardman caught the game-winning pass for an overtime touchdown or when Chiefs kicker Harrison Butker nailed a 57-yard field goal. It was when Chiefs tight end Travis Kelce, during the trophy ceremony after the game, belted out an impromptu, raggedy chorus of “Viva Las Vegas” on the CBS broadcast.
Those three words, repeated several times in a pacing and melody only vaguely resembling Elvis Presley’s classic 1964 hit, have delivered an unexpected payday for the song’s rights holders.
“We were very excited about him doing that,” says Bratton, president of Pomus Songs Inc., namesake publisher for the late Doc Pomus, who wrote the song with Mort Shuman. “Royalties are paid for that performance through BMI.”
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Kelce’s rendition constituted an “ephemeral use,” according to Rachel Jacobson, who oversees film and TV for Warner Chappell Music (WCM), which administers Pomus’ recordings. As when a marching band plays an off-the-cuff snippet of a song during a televised football game, the use generates a royalty payment through BMI as a public performance. “Anything beyond that, then you come and clear it,” she says.
Although Bratton couldn’t say how much money Pomus Songs made from Kelce’s performance — “BMI’s generally three quarters behind, so we won’t have that data until probably next December” — the revenue is likely to continue. Late-night talk shows airing Kelce’s version would have to pay for a “previewing synch license,” according to Bratton, which would lead to a negotiated fee as opposed to the ephemeral use royalty payment. WCM’s Jacobson is not aware of any requests for such a license involving Kelce’s rendition of “Viva.”
For the Super Bowl, Bratton says, “It was also licensed to CBS Sports for a pre-game show and it was shown once during the game over a viewing of Taylor Swift. That paid — I don’t want to say how much, but it was good money.”
Written for the Presley film of the same name, “Viva” has come to symbolize Las Vegas glamor-and-gambling culture and has been covered by Bruce Springsteen, Dead Kennedys, ZZ Top and Shawn Colvin. Bob Dylan wrote a chapter about the song in his 2022 book, The Philosophy of Modern Song: “This is a song about faith. The kind of faith where you step under a shower spigot in the middle of the desert and fully believe water will come out.”
The song was also in The Big Lebowski and a Viagra commercial (“Viva Viagra”), which, Bratton recalls, “was a very nice synch license momentarily — but I’m not sure if we regret it or not.”
Pomus, a Rock and Roll Hall of Fame songwriter who wrote classics such as The Drifters’ “Save the Last Dance for Me” and “This Magic Moment”; The Coasters’ “Young Blood”; and Presley’s “Little Sister,” was a “sports fanatic,” according to Bratton, who is married to Pomus’ daughter, Sharyn Felder. “He would have been thrilled that his song was used like that,” he says of Kelce’s “Vegas” rendition. “It was more of a holler than a sing. It was his enthusiasm that was notable.” He adds: “We just like it to make money.”
Universal Music Publishing Group has signed hitmaker and Semisonic frontman Dan Wilson to an exclusive global publishing agreement. According to the terms of the deal, UMPG will represent Wilson’s future works. “I consider it a true gift to work alongside a person who is so storied and accomplished, and yet so open to new experiences and collaborations,” said Jennifer Knoepfle, UMPG’s evp and co-head of A&R.
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Ultra Publishing has signed a deal extension with Wheezy, who first signed to the company in 2018. The new extension will also see Ultra acquiring an additional 427 songs from Wheezy, including titles released by Drake, Travis Scott Meek Mill and Lil Uzi Vert.
Kobalt has signed Latin Grammy-nominated producer and songwriter JULiA LEWiS to a global publishing administration deal. A go-to collaborator for Bad Bunny, Anitta, Rauw Alejandro, NBA YoungBoy, Feid and more, JULiA LEWiS is a certified hitmaker with top tracks like “La Jumpa,” “Classy 101” and “Kacey Talk” as part of his fast-growing catalog. He is managed by Matt Geffen, Jamil Davis and Matt Bauerschmidt of The Revels Group.
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Warner Chappell Music France has signed an administrative publishing deal with Lofi Records, the company behind the famous YouTube “Lofi Girl.” The channel provides a 24/7 feed of chill beats to relax or study to and it boasts more than 13.6 million subscribers, with 30,000-60,000 simultaneous listeners on any given day.
Avex USA has signed Jahnei “Mr. Jah” Clarke to its publishing division. A Queens-raised, Los Angeles-based hip-hop, R&B, Latin and pop producer, he is best known for his work with Luísa Sonza, 6ix9ine, Masego.
Rimas Publishing has expanded its roster, signing seven new talents. The new signees include Andrea Cruz, Elia, Harold Wendell Sanders, Manu Berlingeri, Mendoza, Nes, and Valentina.
Warner Chappell Production Music launches Run4Cover in partnership with Warner Chappell Music. Run4Cover is a new label designed to cover some of WCM‘s biggest songs in a way that might be useful for sync licensing purposes. Already their repertoire includes new renditions of hits like Radiohead (“Exit Music (For A Film),” “Karma Police”), Curtis Mayfield (“Move On Up”), Kool & The Gang (“Celebration”) and Donna Summer (“Hot Stuff”). These covers come in a wide array of styles, from string quartets to big band to trailerizations.
Concord Music Publishing has signed songwriting team Chris Miller and Nathan Tysen to a global publishing administration deal. This includes their full catalog and future works. Two of Broadway’s biggest composers today, the duo has written the music for Tuck Everlasting, The Burnt Part Boys, Blown Sideways Through Life, Revival and more together. Independently, Miller has worked on Swept Away, April Twilights, and Ravello. Tysen has worked on The Great Gatsby, Amelie, Paradise Square.
Major Bob Music has signed rising songwriter SJ McDonald to a global publishing deal. “She keeps it country and she’s a perfect fit for Major Bob,” says Andy Friday, head of publishing. Along with the announcement of her signing, McDonald also released a new single: “Hummingbird.”
Prescription Songs and Day One Songs has signed Joseph Tilley to a global publishing agreement. An artist, producer and songwriter, Tilley makes pop and R&B music. Along with his artist project, he also produces for indie pop songstress Emilee, contributing to songs like “Heaven” and “I Love You Baby.”
Sony Music Publishing and Relative Music Group have signed rising country artist Carson Wallace to a global publishing deal. Only 20, the songwriter has built an audience on TikTok, and now has achieved success with the release of singles like “Lonely Look Like,” “Leavin’ Season,” “Ghost In My Chevy” and “Light of Day.”
Two-time Rock and Roll Hall of Fame inductee Rod Stewart has sold his genre-bending song catalog of hits, deep cuts and more to Irving Azoff‘s Iconic Artists Group. Styled as a “wide-ranging cross-media” partnership, the deal with IAG includes the raspy singer-songwriter’s rights to his sound recordings and his interest in his publishing, as well as certain name, image and likeness rights, Billboard has confirmed.
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The company, which Azoff co-founded in January 2020, declined to offer financial particulars of its deal with Stewart, who joins an elite roster of IAG acts that includes The Beach Boys, Cher, Linda Ronstadt, Joe Cocker, Dan Fogelberg, Nat “King” Cole, Dean Martin and CSN bandmates David Crosby, Stephen Stills and Graham Nash.
Concurrently, Iconic announced on Thursday (Feb. 15) that it has raised $1 billion as part of an investment from HPS Investment Partners — which it said will enable them to acquire and manage even more legendary assets.
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IAG’s arrangement with Stewart encompasses his entire career, beginning with his standout vocal contributions on Jeff Beck’s first two albums — Truth and Beck-Ola — and then the rollicking-and-randy output of the legendary Faces, his band with fellow Jeff Beck Group alum Ronnie Wood. That combo, filled out by Kenney Jones and the late-greats Ian McLagan and Ronnie Lane, produced several early 1970s gems co-written by Stewart, including “Miss Judy’s Farm” “Bad ‘n’ Ruin” and their only proper hit in the U.S., “Stay With Me” (No. 17, Hot 100).
Stewart’s solo career began in earnest during a brief window between his time in the JBG and Faces, but he truly broke through with album No. 3, 1971’s Every Picture Tells a Story, which topped the Billboard 200 and produced breakthrough hits “Maggie May” (co-written with Martin Quittenton) and a cover of “(Find a) Reason to Believe.” Throughout the decade he bagged an album’s worth of greatest hits, including “Tonight’s the Night (Gonna Be Alright),” which spent eight weeks at No. 1 on the Hot 100, as well as “You Wear It Well,” “Hot Legs,” “You’re in My Heart (The Final Acclaim)” and his foray into disco, “Da Ya Think I’m Sexy?” Plus, it was during the 70s that he established himself as an able interpreter of other people’s songs, like “The First Cut Is the Deepest” (Cat Stevens) and “Twistin’ the Night Away” (Sam Cooke ).
The 1980s saw Stewart turn to more soft rock stylings and he scored a string of top 40 hits on the Billboard Hot 100, including “Passion,” “Tonight I’m Yours (Don’t Hurt Me)” “Infatuation,” “Forever Young” and one of his biggest tracks of the decade, a cover of Tom Waits’ “Downtown Train.” The next decade produced adult contemporary hits like “Rhythm of My Heart,” off his top-10 album Vagabond Heart, and the juggernaut that was his multi-platinum Unplugged…and Seated, which capped at No. 2 on the Billboard 200 and included his wedding reception-ready version of Van Morrison’s “Have I Told You Lately.” For much of the 2000s, Stewart has released a series of highly popular Great American Songbook albums and other genre-specific collections, including ones for rock and soul. Later this month, he’ll release his 32nd studio album, Swing Fever, a salute to the big band era. The rest of the year will find him on the road and wrapping up his Las Vegas residency.
The partnership with IAG arrives less than a year after Stewart backed out of a potential catalog sale to Hipgnosis following lengthy negotiations. He said at the time that “this catalog represents my life’s work. And it’s become abundantly clear after much time and due diligence that this was not the right company to manage my song catalog, career or legacy.” (Hipgnosis went on to have a bumpy 2023 that has spilled over into this year.)
Yet now Stewart has reason to believe the “time is right” and that “I feel fortunate to have found partners in Irving and his team at Iconic that I can entrust with my life’s work and future musical legacy.”
Azoff added, “We are thrilled to welcome one of the most celebrated singer-songwriters of our time, Rod Stewart, to the Iconic family. Our new partnership with HPS provides us with the resources and flexibility to make blockbuster signings like this one and to continue the success of our legendary artists and their legacies.”
Iconic’s financial advisors during the process was Artisan and Moelis, while Kendrick & Baron acted as the company’s legal advisors. Jackoway Tyerman represented Stewart. HPS Investment Partners enlisted Lisbeth R. Barron and the team at Barron International Group, LLC as financial advisor, and Latham & Watkins as legal advisor.
For years, ASCAP and BMI were seen as the Coke and Pepsi of the performing rights management business — two giant entities with complicated formulas that seemed the same from a distance but quite different if you examined them closer. The November agreement to sell BMI to a group of investors led by New Mountain Capital, which was completed Feb. 8., has changed that — and the songwriters for whom they compete have already seen it in the marketing. BMI is making the case that a for-profit model will let it invest more aggressively in technology, among other things, while ASCAP pointed out on social media that “private equity never wrote an iconic love song.” The Pepsi Challenge seems quaint by comparison.
There were always differences between the two — ASCAP is governed by members, BMI was owned by its licensees; ASCAP charged a onetime $50 fee to join, while BMI was free, though that changed and now ASCAP is free to join and BMI charges $75. And although it’s hard to know for certain, this could end up being more of an evolution than a revolution: Nonprofits invest in technology and operations all the time, although it can be tricky, and the music business wasn’t exactly unsullied by greed before the days of private equity.
BMI and ASCAP collect and distribute more money than any other rights organizations in the world, though. So any changes in the way BMI operates — let alone whatever changes ASCAP makes in response — will reverberate through the entire competitive ecosystem to their less regulated U.S. rivals SESAC and GMR (which invite only the songwriters they want to join); to performing rights societies around the world; and ultimately to everyone who writes, owns or publishes songs.
New Mountain Capital wants a return on its investment, so BMI will need to make a profit — plus grow. Some of this will presumably come from higher-margin new businesses, including international venture — think cooperations or partnerships with societies in India, Africa or the Middle East. (BMI and ASCAP are subject to consent decrees that limit what other businesses they could get into in the U.S.) There’s already some competition in some of those places from European organizations, though.
Presumably, some of the profit is going to have to come from BMI’s traditional U.S. performing rights operations — and that won’t be easy, according to about a dozen rights organization and music publishing executives I spoke with for this column. (None has any inside knowledge about BMI’s plans.) Essentially, BMI will need to hold back enough of the money it collects to both cover its operating costs and make a profit on top of that, while paying its songwriters and publishers more than they can get from its rivals.
BMI has said a bit about how it plans to do that. In an Oct. 12 letter to “BMI affiliates and industry partners,” CEO Mike O’Neil said that for the next three years, BMI’s goal would be to retain 15% of its licensing revenue, as opposed to “around 10%,” although it would take a higher margin on “incremental growth we create for the company,” including acquisitions and new services. To make sure that additional 5% doesn’t come at the expense of songwriter and publisher royalties, BMI will need to negotiate deals that are significantly better than ASCAP’s on a consistent basis.
The only way to do that is to have the most in-demand repertoire from top songwriters like Taylor Swift, probably BMI’s biggest songwriter— and getting and retaining it may require offering better terms to top writers. That would almost presumably involve attractive advances (which all four U.S. performing rights organizations sometimes offer) and some form of bonus structure for top performers (which ASCAP and BMI offer, although their methodology differs). BMI said that advances have always been part of its strategy and it has no plans to change its general approach to this or its bonus structure, or its distribution policies. But what if BMI’s rivals also offer higher advances and better bonuses? If getting the best deal terms means having the best repertoire, they have every reason to do so.
The question is how those writers will be rewarded for the leverage they provide, and if Swift’s popularity helps her fellow songwriters, it’s only fair that she should benefit. But this can also create a temptation to pay out even more to the most successful writers — to give a bit more to Peter and a bit less to Paul and Mary. It’s good for everyone — until at some point it starts to feel unfair. And everyone who writes songs or manages those who do is either deeply concerned about this issue or simply eager to make sure they end up on the right side of it. Competition is all well and good, and it will be interesting to see which creators look for better deals and which stick with their current rights organization. (It can be harder than it should be to switch in some cases, which will be the subject of another column.) Ultimately, though, all these creators may find themselves fighting for bigger slices of the same pie.
Sony Music Publishing, the world’s largest music publisher, is expanding its operations across the Middle East and North Africa with a new office in Dubai. The region will be led by managing director Dounia Chaaban, who will report to SMP senior vp of international Dan Nelson.
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Chaaban began her career at Anghami, the leading music streamer in the Middle East. After working there for seven years, serving as the Arabic indie community lead, Chaaban then became an artist relations manager at Believe Music. “I look forward to working hand in hand with the incredibly talented team at Sony Music Publishing to propel the MENA music industry to new heights,” says Chaaban of her new appointment. “Together, we will create an environment that nurtures creativity, fosters innovation, and unlocks the boundless potential of the region’s musical landscape.”
The news arrives just a day after Universal Music Group announced the opening of a new Capitol Studios location in the UAE as part of a collaboration with DGMC, a local music organization. The two say they will work together to build a “Music City” that will serve as a regional hub for local and global recording artists and songwriters in the MENA region.
Other music companies have also expanded more into the MENA region in the last year. In October, Warner Music announced its investment in HuManagement, a Dubai-based talent agency; In the last twelve months, Reservoir Media joined with PopArabia to acquire Lebanese music company Voice of Beirut, Egyptian label 100COPIES, and Saudi Arabian label Mashrex; In May, BMI partnered with Music Nation, a UAE music rights management organization.
Billboard also expanded into the region with the launch of Billboard Arabia in June. A partnership with media giant SRMG, Billboard Arabia is a region-specific editorial site, featuing two new global charts to track the success of music from the MENA region.
Nelson says: “We are excited to welcome Dounia to the Sony Music Publishing team. Dounia’s extensive experience working with local talent will be invaluable as we expand opportunities for new and established songwriters and artists across the region. There couldn’t be a more opportune moment to launch our business, and we look forward to growing our presence in the MENA region.”
