Record Labels
Warner Music Group (WMG) reported earnings on Thursday (Nov. 21), and there was much that its executives wanted to discuss beyond the usual profitability metrics and balance sheet management. On a call with financial analysts, CEO Robert Kyncl discussed Warner’s recent reorganization — how it built a simpler, flatter, faster structure, according to him — as well as why he’s so confident that streaming revenues will continue to deliver strong growth and the company’s M&A and internal investment plans.
Here are some of the highlights.
Bullish on subscription streaming growth
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WMG executives said they expect subscription streaming revenue to continue to grow by high single-digit increases, and analysts peppered them with questions about how they will achieve that. WMG CFO Bryan Castellani said that roughly 70% of that growth will come from more people paying for music streaming subscriptions everywhere — from markets like the United States, where many already pay to stream music, to places like India, where far fewer people do so but where there is much room for growth. To bolster his argument, Castellani pointed to the 70 to 80 million new subscribers he says began paying for streaming subscriptions in the past year.
Additionally, WMG gained a greater share of the most streamed songs thanks to popular releases from Rosé, Bruno Mars, Teddy Swims, Benson Boone, Charli XCX, Zach Bryan and others. Kyncl said WMG’s market share of the Spotify 200 has increased by 10 percentage points since he became CEO.
The final reason for their optimism is the various price increases at the DSPs that Kyncl believes his side will benefit from, including things like higher wholesale prices earned off of family plans and other multi-user subscription streaming plans that currently get discounts; higher-priced subscriptions for super fans; and premium audio or further audience segmentation. “Wholesale prices generally go up,” Kyncl said. “It may not have happened that way in music in the past, but it is how it happens in 99% of industries. We are just trying to align with the way the world works.”
Elliot Grainge’s Star Rises Inside and Outside WMG
Kyncl kicked off the call with comments about WMG’s recent restructuring, which included promoting Elliot Grainge, the founder of the independent label 10K Projects and son of Universal Music Group chairman/CEO Lucian Grainge, to lead the renowned Atlantic Records Group. Kyncl described Atlantic and Warner Records as “important twin engines of growth” and said Elliot’s team has “an impressive ability to discover extraordinary talent across multiple genres and find fresh ways [to make them] stand out from the crowd.” Kyncl added that Warner Records, under the leadership of Aaron Bay-Schuck and Tom Corson, is adroit at driving hits and creating superstars.
“I cannot stress enough how exhilarating it is to watch the creative success of both Warner Records and Atlantic are having,” Kyncl said.
An analyst later asked Kyncl what it is about Grainge that worked at 10K and if that will translate to future success at Atlantic, acknowledging that Grainge “has stepped into a much larger, broader and important role.”
Kyncl said 10K has demonstrated “phenomenal growth from top line to bottom line” since Warner began a joint venture with the independent label last year, and he thinks Grainge and his team’s digitally native approach gives Warner an edge for how music is being consumed and shared and how artists are being discovered today.
Kyncl also praised Grainge for his intensity — “I love that about him” — and said he takes strong points of view when making decisions, adding that doing so appeals to talent.
The silver lining of cost cuts
Cutting costs, reducing its headcount and restructuring some label groups saved an estimated $260 million on an annualized basis, WMG said in September — money Kyncl says is now freed up for dealmaking and internal investments.
“Our focus on efficiency has freed up capital, enabling us to increase our investments in growth opportunities,” Kyncl said in prepared remarks.
WMG also increased investment in A&R by around 11%, allowing it to sign more new artists and songwriters and to make more catalog acquisitions.
Additionally, WMG continues to explore companies to acquire that could fill a need within its larger companies — so-called bolt-on acquisitions. Billboard reported in June that WMG is shopping for an alternative distribution company, and it poached Goldman Sachs investment banker Michael Ryan-Southern this summer to lead M&A; WMG’s companies around the globe are now exploring the gaps in their services and looking to Ryan-Southern’s team for suggestions on acquisitions to fit those needs. The company is also exploring the launch, with equity partners and debt facilities, of a catalog acquisition platform and fund for artist advances, sources tell Billboard.
Universal Music Group made a pair of announcements on Wednesday that signal the global leader in music is getting more and more serious about China.
Universal Music Greater China and Modern Sky, a leading independent music label in the country, pressed send on a strategic distribution agreement giving the domestic label’s catalog and artists access to UMG’s global distribution network, fostering collaboration and promoting Chinese music and youth culture internationally.
Additionally, UMGC announced a pact with iQIYI, China’s leading online entertainment platform, to distribute new releases from contestants of reality show The Rap of China 2024 worldwide. This agreement includes support for the rap artists and opportunities for the top three finalists of the iQIYI-produced show to visit UMG’s global music labels and studios, with a goal to foster international collaborations with other artists and producers.
Modern Sky, founded in 1997 by Shen Lihui, has been a key player in China’s indie music scene, producing over 500 albums and working with influential bands and artists. The label’s roster includes over 150 acts, featuring Matt Lv, Aflou, DOUDOU and other established and emerging talents across diverse genres. Modern Sky is also known for organizing the Strawberry Music Festival, China’s first large-scale outdoor music festival, and hosting over 30 festivals and 1,000 performances annually. The label has expanded internationally with divisions in New York, Liverpool and Tokyo, with plans to debut the Strawberry Music Festival in Tokyo in 2025.
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As for The Rap of China, a hit since its debut in 2018, UMGC will dedicate a team to support the narrative-driven show’s artists in A&R, management, marketing and merchandise development.
Timothy Xu, chairman and CEO of UMGC, expressed excitement about both collaborations, highlighting their potential to amplify Chinese music on the global stage. He said the Modern Sky agreement “not only broadens the global reach of Chinese music but also highlights the distinct energy and creativity that define China’s young generation today,” and noted the alliance with iQIYI’s The Rap of China 2024 “reaffirms our commitment to nurturing Chinese rap talent but also extends their global reach, bridging cultural gaps and enriching the international music landscape with the dynamic culture of Chinese rap.”
Modern Sky founder Shen Lihui said his label has “always embraced an independent spirit and a forward-looking vision,” adding they hope to “bring a fresh side of Chinese originality to the world, inviting audiences everywhere to experience the unique energy and cultural depth of China’s youth.”
Earlier this year, UMG expanded its partnership with China-based Tencent Music Entertainment, parent of streaming platforms QQ Music, KuGou, Kuwo and WeSing. In 2021, UMGC became the first major music company to establish multiple frontline label operations across China with the launch of Republic Records China, and the re-launch of historical labels Polygram Records China and EMI China alongside Universal Music China.
UnitedMasters has announced the promotion of music industry veteran Gerardo Mejía to the newly created position of senior lead of Latin music. This advancement recognizes Mejía’s significant contributions to the company’s growth and influence in Latin music.
Mejía, previously serving as an A&R at UnitedMasters, has been instrumental in expanding the company’s reach within the Spanish-language genre, boasting several achievements including discovering and signing 2024 breakout Latin superstar FloyyMenor, a teenaged rapper from Chile.
“UnitedMasters has really granted me the runway and latitude to follow my instincts and seek out artists who are unconventional, yet undeniable,” said Mejía in a press release. “They’ve given me the utmost trust, and it’s been incredible to continue my journey here. I’m very thankful and excited for what the future holds. The sky is most definitely the limit.”
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Under his guidance, FloyyMenor’s viral hit “Gata Only,” featuring Chris MJ, put Chilean reggaetón on the global map. Additionally, it won the Billboard Latin Music Award for Global 200 Latin Song of the Year and held the No. 1 spot on the Hot Latin Songs chart for 14 consecutive weeks, marking a historic achievement as Floyymenor and Chris MJ became the first Chileans in 25 years to top this list.
“Gerardo lives and breathes music. He has been a major force in the explosion of Latin music globally,” said UnitedMasters founder/CEO, Steve Stoute, in a press release. “He has an impeccable ear for talent and a knack for artist development while empowering his artists to exceed their potential time and time again. It’s a pleasure to announce this much-deserved promotion.”
UnitedMasters vp of music/head of A&R, Mike Weiss added, “We are incredibly proud to be promoting Gerardo to this role. Gerardo has continued to reinvent himself while discovering star artists for many years. This success did not happen overnight, and we can’t wait for the future in our Latin Music business.”
As Mejía steps into his new position, he carries a robust record of multi-industry achievements. He first gained international attention as a young Ecuadorian immigrant turned U.S. pop sensation with his 1990 hit “Rico Suave.” The track not only charted impressively—peaking at No. 7 on the Billboard Hot 100, No. 2 on Hot Rap Songs, and No. 12 on Dance Singles Sales—but also played a pivotal role in ushering Latin music into the U.S. mainstream. Transitioning from Latin pop performer to Latin Power Player, Mejía’s strategic roles in artist development and A&R at major labels have continually shaped the evolving landscape of the music industry.
His tenure at Interscope Records was marked by facilitating Enrique Iglesias’ U.S. breakthrough, and he further impacted Latin’s growth by fostering the reggaeton movement during his time at Univision Records. Transitioning seamlessly into entrepreneurship, he also launched Rico Suave Coffee, intertwining his music and business acumen. This breadth of experience underscores his ability to shape the future of Latin music at UnitedMasters with a strategic and innovative approach.
Read our previous profile of Gerardo Mejía here.
Republic has announced the promotion of Kevin Lipson to the newly created position of chief revenue officer, effective immediately, as touted by president and COO Jim Roppo.
In this role, Lipson will lead revenue strategies for artists across Republic Records, Mercury Records, Def Jam Recordings and Island Records through the Republic Corps. Collective. He’ll oversee teams involved in streaming, e-commerce, data, retail, gaming, sports marketing, media planning and catalog initiatives, while also driving innovation campaigns to boost audience and revenue growth.
The New York-based Lipson is a 28-year veteran of Universal Music Group, having held senior management roles at Republic, Island, Def Jam and Universal Music Group Distribution in both LA and New York. His tenure at Republic — most recently as evp of global commerce and digital strategy — has seen the label earn titles such as Billboard 200 Label of the Year and Billboard Hot 100 Label of the Year, and achieve the industry’s ten biggest streaming weeks of all time.
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His team has delivered successful albums for artists like The Weeknd, Metro Boomin and Morgan Wallen, among others. In mid-2022, Lipson’s marketing rollout strategies for Post Malone’s Twelve Carat Toothache album earned him a hat-tip as Billboard‘s executive of the week.
The expanded role, but not title, for Lipson — encompassing revenue strategy at the label group — was initially announced in March as part of the formation of the East Coast-based Republic Corps, designed to compliment UMG’s Interscope Capitol Labels Group out west.
Roppo praised Lipson as a “tenacious” and innovative, adding, “with a fresh perspective, he’s constantly looking for unconventional ways to break new artists and maximize global repertoire revenue for our roster of superstars.”
Lipson thanked Republic’s leadership for their backing and emphasized the collaborative nature of the team. “They support their people here first—which inspires everybody to compete at the highest level while breaking historic industry records,” he noted. “Our team is involved in many different facets of the label, which is inspiring to all. It’s not exclusive to marketing, sales, and data; it’s all-encompassing. Even with all of the incredible success, we’re constantly trying to evolve and better ourselves while staying humble.”
Taylor Lindsey has been named as Chairman and CEO, Sony Music Nashville (SMN), beginning January 2025. She replaces Randy Goodman, who announced in September he would be retiring at the end of the year after running the company since 2015.
Additionally, Ken Robold, has been named president and chief operating officer of Sony Music Nashville.
Lindsey will oversee Sony Music Nashville, as well as leading Christian music company Provident Entertainment. She will remain based in Nashville and report to Rob Stringer, chairman of Sony Music Group.
“I’m very grateful to step into this role,” Lindsey said in a statement. “Along with Ken and the incredible SMN team, we are committed to fostering collaboration with our artists, creators and fans, and will create a vibrant community that not only honors our rich heritage in storytelling but also redefines the sound of country music for generations.”
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Lindsey has been head of A&R for SMN since 2021, most recently serving as vp. She has worked closely with Sony artists including Old Dominion, Luke Combs, Megan Moroney, Maren Morris and Mitchell Tenpenny, among others.
“I am very excited that we can promote a creative talent from within the company to this top position,” Stringer said in a statement. “I have witnessed Taylor become an all-round executive from an A&R background and she is ideally suited to plot the future for our Nashville team in a chapter where country music is clearly evolving and thriving as a key musical genre. I am also so pleased that simultaneously to Taylor’s appointment Ken will be in an important wider role helping her build a new era for Sony Music Nashville.”
Prior to joining SMN in 2013, Lindsey, who has been featured on Billboard’s Women in Music and Country Power Players lists, worked in A&R at BMG Music Publishing, where she represented Grammy-award winning songwriters such as Hillary Lindsey and Tony Lane.
Robold, who has also been on Billboard‘s Country Power Players list, joined SMN in 2015 as executive vp and COO. Previously, he was president of Zac Brown’s Southern Ground Artists and spent 22 years at Universal Music Group.
The news means that all three major labels in Nashville are headed or co-headed by women: Cindy Mabe is chair/CEO of Universal Music Group Nashville and Cris Lacy is co-chair/co-president of Warner Music Nashville alongside Gregg Nadel. It also means that all the heads of the three Nashville majors have changed hands over the past two years., with Lacy and then Ben Kline replacing chairman/CEO John Esposito at Warner at the end of 2022, while UMGN chairman/CEO Mike Dungan left his post in 2023, with Mabe officially taking over April 1, 2023.
Over the past decade-plus, few artists have become as much of a creative, cultural and economic force in the entertainment industry at large as Tyler, the Creator. Emerging from the hip-hop-meets-everything collective Odd Future, he has continued to innovate and expand the boundaries of his career each year, whether it be in fashion, festivals or with the type of music he puts out into the world — with plenty of recognition, and accolades, coming his way as a result.
But these past two weeks have topped even that. With the release of his latest album, CHROMAKOPIA — which dropped on Oct. 28, a Monday, bucking the industry norm of Friday — Tyler earned the biggest debut week of his career, with 299,500 equivalent album units earned — even more impressive given that it was achieved in just four days of the tracking week. Now, he’s landed a second straight week atop the Billboard 200, with another 160,000 equivalent album units — his first time spending back-to-back weeks at No. 1 on the albums chart in his career. And that success helps Columbia Records’ vp of marketing Victoria White-Mason earn the title of Billboard’s Executive of the Week.
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Here, White-Mason discusses the strategy that went into the release — including the much-discussed Monday debut — and how Tyler has been able to grow himself as an artist and a businessman so effectively through the years. “It’s clear that Tyler is truly an artist in every sense of the word, and he extends his taste level and ingenuity into all the verticals he touches,” White-Mason says. “Whether it’s fashion, business or film, he’s going to bring perspective that is shaped by curiosity and an enduring sense of wonder.”
This week, Tyler, the Creator’s CHROMAKOPIA spent its second week at No. 1 on the Billboard 200 after debuting at the spot last week, making it his third chart-topping album. What key decision did you make to help make that happen?
My job as marketing lead was to amplify, scale and make tangible the world of CHROMAKOPIA, which started with the CHROMAKOPIA trucking activation that launched alongside the album announcement. We knew that these shipping containers would be a centerpiece of the overall creative and it sparked the idea to utilize them as moving billboards originating in Tyler, Texas, with pitstops in multiple markets.
The activation was an ambitious endeavor made possible by an immense amount of collaboration across our teams — from complex routing and logistics to daily social touchpoints alongside the truck’s movements and planning experiential elements for fans along the way. The payoff was clear almost immediately upon launch, as the trucks became a movement builder for us.
Most notably, Tyler initially released the album on a Monday, instead of the industry standard Friday, meaning he missed out on three days of the chart week in his debut week. How did that affect your rollout strategy? And how important was the first day in your planning?
With a career-best debut, the numbers indicate that Tyler didn’t miss out on much! His intention for a Monday release was for listeners to start their week with CHROMAKOPIA, on their commute to work or school. By encouraging you to listen as a part of your natural routine at the start of the week, the hope is that you become an active listener in the process.
Of course, shortening the release week is not a natural instinctive idea in today’s market, but it is hard to overstate how remarkable a job Tyler did to create that awareness through visual trailers, touring announcements, live events and more.
At 299,500 equivalent album units, the first week was the biggest of Tyler’s career and the sixth-biggest debut of the year so far. How did you set this up differently from his other projects?
Tyler has always been a first-rate world builder, constantly innovating and transforming, and consistently besting himself in the process. With CHROMAKOPIA, I think we have an album and a campaign that feels almost cumulative in nature. It’s bursting with vulnerability, maturation, peak creative prowess and a pristine level of cohesiveness throughout it all.
CHROMAKOPIA’s success is not an anomaly, it’s the result of all the foundational work he’s done to get to this point. That said, we had a perfect storm of a tapped-in, fully engaged artist, an equally tapped-in and engaged fan base, and an overwhelming desire from fans to be fed.
With 66,000 vinyl sales in its first week, the album was also the third-biggest hip-hop vinyl album since Luminate began tracking sales in 1991. How did vinyl — and physical product in general, given his six CD boxed sets — play a role in this album campaign?
There’s an obvious and immense demand for physical product for this artist and we were fortunate to be able to make it available immediately thanks to the tireless efforts of our Commerce and Release Planning teams. The partnership between Golf Wang, Ceremony of Roses and Columbia Records is as strong as ever. We took all our learned experience to date from his previous releases and strategized the best way to make the strongest impact. Tyler’s standard of exceptional quality and creative cohesiveness were pivotal in helping to create the demand.
How has Tyler’s career grown and developed outside of just the recorded music to the point where you guys were able to set these benchmarks in just four days of release?
Tyler, the Creator is a genius and a generational talent. I don’t say this lightly, or with the slightest bit of hyperbole, and I think it’s starting to be recognized en masse. His ability to envision and, more importantly, manifest the worlds and characters that live inside his mind is truly unparalleled. It’s clear that Tyler is truly an artist in every sense of the word, and he extends his taste level and ingenuity into all the verticals he touches. Whether it’s fashion, business, or film, he’s going to bring perspective that is shaped by curiosity and an enduring sense of wonder.
The album has already spent a second week at No. 1 now. How do you keep the momentum going from here?
Before I had the opportunity to work with Tyler, I came across an interview he did where he talked about the importance of promoting your work. He told aspiring artists to be proud of the work they made and to never stop being a passionate advocate for your art. Tyler’s conviction and candor always stuck with me and now, years later, it is truly inspiring to witness his commitment to his craft firsthand.
CHROMAKOPIA’s momentum will continue to be sustained by that commitment. Look at Tyler’s activity in the 11 days since release and you’ll see that he is promoting the work authentically through his connection to his fans. What he’s encouraging is an ongoing conversation around the feelings that this music evokes and the connection that it helps create. On top of that, you have a massive world tour that will continue to expand the world of CHROMAKOPIA.
Andre Benz’s foray into the music business was not like most. He didn’t attend a music business program at a university, toil away at an unpaid internship or manage a local artist. Instead, he built his own YouTube empire at age 15.
Working from his childhood bedroom in New Jersey, Benz created the YouTube channel Trap Nation, where he featured a curated selection of dance music and remixes of popular songs. “Originally, it was just a hobby, but I think one of my positive and negative traits is I become obsessive about what I do,” he says. “I just kept doing it and doing it until one of the uploads blew up — a remix of ‘Wrecking Ball’ by Miley Cyrus.”
By the time of his high school graduation, Benz had become an unlikely but important tastemaker in the world of electronic music. He expanded Trap Nation into a whole suite of channels — Chill Nation, House Nation and Bass Nation — and he says his flagship brand grew to about 2 million subscribers. Today, it has amassed over 30 million.
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Around the same time, he met another student, Brandon De Oliveira, who went to a neighboring high school in New Jersey and had mutual friends. Their eventual collaboration led Benz to sell his YouTube channels to Create Music Group in 2022 and co-found Broke Records with De Oliveira the following year. Now 27, Benz says his goal is no less than building “the best independent record label in the history of the music industry,” and he takes inspiration from the digital-driven approach of Mike Caren’s APG and Elliot Grainge’s 10K Projects, which he says showed him what indie success can look like.
“What we’re doing would not work at any other company in the music industry — Republic, Columbia, Atlantic or Warner,” Benz says. “[Create founder] Jonathan Strauss and the entire Create team have given us full-on trust, opportunity and accessibility to do what we believe is right for the company. That means doing larger deals and taking larger risks.”
“Andre gave me this framed printed chart as a Christmas gift to commemorate the label’s launch,” De Oliveira says, “so we’d be able to look at it and grasp the level of growth the company has had over the next year.”
Jamie Pearl
Broke Records is distributed by Create and has a staff of eight full-time employees focused on finding and breaking artists. The label currently has “Embrace It” by London-based Angolan rapper Ndotz and “Alibi” by Iranian Dutch singer-songwriter-producer Sevdaliza on Spotify’s Global Top 50 chart and claims that its international roster, which includes Blackbear, Bread Beatz and Camelphat, generates more than 32 million streams a day globally on Spotify.
How does your YouTube marketing background and experience with algorithms benefit Broke Records?
ANDRE BENZ That’s our biggest advantage and the biggest difference between us and an older label — how we think about services for our artists. We don’t have to rely on paying outside people to do the [digital marketing] for us. I think a lot of companies love outsourcing work because it holds a third party accountable. If the artist complains, the label can say, “Oh, it’s actually their fault.” Some of these other labels have too much volume, too, and they’re not able to control what’s actually going on, so they outsource work.
Why are you succeeding with TikTok creator campaigns at a time when digital markets are saying they’re less effective than a few years ago?
BRANDON DE OLIVEIRA I think creator campaigns now are actually more influential than ever, but everyone’s spending way too much. We are constantly refreshing the list of creators that we’re [using]. Two or three years ago, labels got used to thinking, “OK, these are the big accounts now. We will just go to them.” These creators’ rates kept going up, and as the market kept getting more saturated, those creators didn’t move the needle anymore. In certain cases, we will spend on larger creators, but for the most part, we’re spending like $1,000 across 100 to 200 creators in really strategic markets — Eastern Europe and Latin America specifically. That’s typically where we start most of our campaigns before we move into more premium territories.
“Lowly Palace was the first label I started, at 19,” Benz says. “We created a hard-cover illustration book of our cover art to showcase the brand and vision that we had. I hold on to this to value the importance of progress and growth over the years.”
Jamie Pearl
Why those territories?
DE OLIVEIRA Cheaper cost, and these markets start a lot of trends on the internet. A lot of our marketing campaigns start as bundle deals. We spread less money across several tracks that have familiarity in whatever type of video we are into, whether it’s edits, dances, lip-syncs and so on. And a lot of those bigger creators in the more premium territories — where we would have had to spend $4,000 for one post — just jump on for free. Why? Because at some point, there’s a tipping point where creators jump on just because they see the videos using that song getting bigger.
Andre, why was Create the right partner for you? Why not continue to do things on your own?
BENZ There were three or four years after I started Trap Nation where I was, for lack of a better word, a degenerate. I wasn’t interested in music at all anymore. I couldn’t find any passion. I was just so young when I started it, and I felt like I didn’t have anybody to relate to in terms of what I was building. YouTube was declining, and our channels were declining in growth. I had never been through the process of growing quickly and then declining. I was like, “I’m out, I’m done.” I wanted a fresh start. The acquisition was less of a money thing than it was a fresh start. I was like, “OK, I can sell this company, move forward, get integrated into a new ecosystem and learn from other people who started their own company. Jonathan Strauss started [Create] around the same time I started [my company]. I thought, “I can learn from these people.”
How promising are YouTube Shorts and other features that the platform has added?
BENZ I’m super excited about YouTube Shorts. I think they’re going to continue pushing them from an algorithmic standpoint, and we see that we’re able to capture a lot of new audiences and revenue as well. We make a lot of money on YouTube Shorts for songs we are putting out because we have a really good content claiming team [through Create]. And because of our background with YouTube, we understand the platform better than any other label. They also give us a lot of support. Anytime we have songs trending on that platform, they’ll give us billboards in Times Square [in New York], in Los Angeles. They’ll feature us on the homepage. YouTube, out of all platforms right now, is by far the most powerful for the amplification of records.
Does virality on Shorts translate to non-YouTube streams?
BENZ Not really. Brandon and I share the same opinion that YouTube Shorts usually comes last in terms of virality. It’s TikTok, then Instagram, or TikTok and Instagram at the same time. Then it trickles over to YouTube a month later. But we see our songs stay super viral for a while on YouTube Shorts. I don’t think we’ve ever found a new song viral from YouTube Shorts — maybe once. We don’t look for artists or records on Shorts. It’s more of an audience-marketing opportunity.
The golden Broke hoodie “was the first piece of merchandise we produced under the new label,” De Oliveira says. “We continue to gift it to our artists and partners.”
Jamie Pearl
What are you doing to ensure the longevity of those songs that go viral and, in the long term, build a catalog?
BENZ When we started Broke, the plan was to build an incredible digital marketing team and sign a lot of these viral electronic songs because that’s what we know best. So we did that. And then we started moving to other genres: rap, alternative rock, pop. Then we hired a few more people. Now we have to start breaking artists and building longer narratives around artists, not just singles.
In two years, we want to have four to five superstars [with] 30 million to 40 million monthly listeners, selling out arenas, selling out merchandise. Sevdaliza is our first opportunity to prove ourselves. It’s a huge risk for our company because of the deal size, but I think it’s a once-ina-lifetime opportunity for us to go above and beyond. I want to prove to people that you don’t need to sign to Republic Records to get on top 40 [radio]. You don’t have to sign to Island to be the next Sabrina Carpenter. I don’t think anyone’s proved that yet.
What does the label landscape look like in 10 years?
BENZ A lot of distributors are going to start acquiring and starting up labels like ours. A lot of traditional record labels are going to continue the distribution model, which I think is a race to the bottom. It makes absolutely no sense. It’s going to be more fragmented, more democratized. You’re going to have more independent market share.
DE OLIVEIRA There will be a lower barrier of entry with [artificial intelligence] — whether that’s mixing, mastering, content production or the actual full production of songs. It’s going to be really interesting and it’s going to be super saturated. So figuring out how to create experiences and really personal moments between the artists and their fans will be the key distinguishing factor moving forward.
This story appears in the Nov. 16, 2024, issue of Billboard.
On Christmas Eve in 2019 — while most music business executives were headed out to holiday parties or completing last-minute shopping — Warner Records quietly finalized a label deal with Jaten Dimsdale, a former member of a hair metal cover band outside of Atlanta who had also tried his hand at hardcore and hip-hop.
Dimsdale had posted a handful of viral YouTube covers: In his version of Michael Jackson’s “Rock With You,” uploaded earlier in 2019 on the 10th anniversary of the artist’s death, his buttery tone contrasted shockingly with his grizzled beard, gauge earrings and the hourglass tattoo stamped on the side of his head. Aaron Bay-Schuck and Tom Corson, Warner Records’ then-recently appointed co-chairmen, had been scavenging for stars to revitalize the faded label — so as the rest of the world hunkered down for the night and wrapped gifts, they inked a deal with Dimsdale, who had started performing under a different name: Teddy Swims.
Fast-forward four Christmases. At the end of 2023, Teddy Swims still lacked a signature hit, but Bay-Schuck spotted some encouraging data surrounding the singer’s single that had been hovering in the middle of the Billboard Hot 100. “I remember over the holiday break, ‘Lose Control’ was taking a positive turn,” he recalls of the singer’s single released in June 2023, “so we knew that was going to be a key song for us going into ’24.”
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During that same holiday downtime, Bay-Schuck also noted some positive numbers on TikTok for another relatively new Warner signing, singer-songwriter Benson Boone: The teasers for his unreleased “Beautiful Things” were gaining traction, so the label posted more snippets before the end of the year to further fuel its growth. “And also,” Corson adds of that particularly busy December, “our A&R team had identified [country singer] Dasha and [folk artist] Michael Marcagi, who were trending [on social media] significantly. We closed those deals, essentially, over Christmas.”
With that hectic holiday season, Warner set the stage for what would become an enormous 2024. In January, “Beautiful Things” rocketed to a startling No. 15 debut on the Hot 100 upon its official release. Dasha’s country clap-along “Austin” started morphing into a viral hit following its late-2023 arrival, and Marcagi’s wistful anthem “Scared To Start” gained immediate traction when unveiled in mid-January. As for “Lose Control,” Teddy Swims’ first Hot 100 hit has become a year-defining smash: It reached the chart’s top 10 during the week of Jan. 20, went to No. 1 the week of March 30 and now, in its 64th week on the Hot 100, remains in its upper reaches — and will likely finish quite high on Billboard’s year-end Hot 100 chart. Boone’s “Beautiful Things,” which eventually peaked at No. 2 on the Hot 100 and logged 27 weeks in the chart’s top 10, likely won’t be far behind “Lose Control” on the year-end list. And as the year drew to a close, Boone and Teddy Swims both notched best new artist Grammy nominations in November.
Going into 2024, Bay-Schuck and Corson had recognized it would be a pivotal year for their regime at Warner Records, even if they might not have predicted the exact way it would unfold. After all, Zach Bryan and Dua Lipa, two of the label’s flagship artists, were expected to release new music — but Teddy Swims’ raspily belted soul-revival pop anthem and Boone’s existential ballad with its out-of-nowhere wailed chorus out-charting any new song by those superstars was less expected.
When reflecting on Warner’s surprising year, Corson offers some wisdom from the Roman philosopher Seneca: “Luck is what happens when preparation meets opportunity.” The startling triumph of relative unknowns like Teddy Swims and Boone, along with strong performances from the label’s A-list roster of talent, has made Warner much healthier than its fallow period in the mid-2010s.
Neither Corson nor Bay-Schuck expected this resurgence would sound like “Lose Control” or “Beautiful Things,” but when the moment arrived, they had already been working overtime to meet it. Unabashed music geeks with complementary talents — Corson the master marketer, Bay-Schuck the A&R whiz — the two label leaders can easily rattle off empirical and emotional takeaways from even their roster’s tiniest artists, and they’re hustling both on and off the clock, studying market inefficiencies and, as Seneca may have wanted, placing the label in a position to scoop up potential wins. “These songs didn’t sound like anything else that you were hearing on top 40 [radio],” Bay-Schuck points out. “That’s a big part of our brand at Warner Records. We aren’t trying to do what everybody else is doing — we’re trying to take risks and stand out.”
From left: Dasha, Dua Lipa, Zach Bryan, Benson Boone, Mike Shinoda and Billy Strings.
Illustration by Israel Vargas
As slow-burning smashes with 10-figure streaming numbers, “Lose Control” and “Beautiful Things” headline a year for Warner that has also included country-rock virtuoso Bryan graduating to stadiums and scoring another hit album with The Great American Bar Scene, which reached No. 2 on the Billboard 200; Lipa earning her highest-charting album and best sales week yet with her third full-length, Radical Optimism; and eclectic acts like Linkin Park, Warren Zeiders, Billy Strings and Rüfüs Du Sol yielding success stories in rock, country, bluegrass and dance, respectively. As a result, Warner Records’ market share soared to third among individual labels (behind Republic and Interscope Geffen A&M) in Billboard’s 2024 midyear report, its highest ranking since Bay-Schuck and Corson were named CEO and COO of Warner, respectively, in 2018.
“Aaron, Tom and the team focus on signing and carefully nurturing original artists, and the result is a diverse roster of established superstars and emerging talent,” says Robert Kyncl, CEO of Warner Music Group. “At the same time, they’ve pioneered new ways of breaking through the clutter and grown their market share in an ultra-competitive environment.”
When Max Lousada, former WMG CEO of recorded music, recruited Corson from RCA Records and Bay-Schuck from Interscope to run Warner Records, both executives understood they had their work cut out for them. Outside of Lipa, who took home the best new artist Grammy Award in 2019, Warner ended the 2010s with an aging, rock-focused roster and a severe lack of new star power. “I’m going to quote Lyor [Cohen], a mentor of mine over the years,” Bay-Schuck says. “When we got this opportunity, he was like, ‘You better make sure they’re giving you five to seven years. That’s how long it takes.’ And I think he was spot-on, when you’re taking on a challenge like we did. We had a really unhealthy company that we inherited, and so the first couple of years were about the culture and getting the right people working here.”
In addition to bringing in deputies like executive vp/head of A&R Karen Kwak, senior vp of digital marketing Dalia Ganz and CFO Michele Nadelman, Corson and Bay-Schuck took a divide-and-conquer rebuilding approach that incorporated their personal expertise. Corson, a former president/COO of RCA Records, was tasked with maximizing the potential of Warner’s existing roster and catalog upon arrival, allowing Bay-Schuck, who previously ran A&R at Interscope, the necessary time to discover and develop new artists.
For Corson, the situation “was a combination of understanding roster catalog and needing to find revenue to buy us enough time.” Fortunately, the Warner catalog was filled with legendary artists — from Prince to Tom Petty to Fleetwood Mac to Madonna — even if, Corson says in disbelief, “there wasn’t anything strategic being done with them by the label.”
Short term, there was plenty of new revenue to uncover. Initiatives included responding to significant album anniversaries with glossy vinyl box sets for classics like Green Day’s Nimrod and Linkin Park’s Hybrid Theory, strengthening relationships with the estates of artists like the Ramones and Mac Miller for special releases and also prioritizing new material from still-viable veterans like Red Hot Chili Peppers and Gorillaz. “Developing a high standard helped create a higher flow of product coming out of the catalog department,” Warner executive vp of promotion and commerce Mike Chester says. “And it really carried us. It allowed us to sign and develop Benson Boone and many others, because you need time to do that.”
With the exception of Lipa — whose 2020 album, Future Nostalgia, yielded hit after hit and also bought the new Warner regime more time to retool its roster — the label’s biggest new names are long-term development projects. Boone, a former American Idol contestant with a strong TikTok following but no original songs, signed with Warner in 2021; Bryan joined the same year, while he was still serving in the Navy and had yet to perform a proper concert. As Teddy Swims puts it nearly a half-decade removed from his own signing, “I speak for more than myself when I say just how thankful we are to [Bay-Schuck and Corson] for having the grace and patience to give artists like me the time and space to develop into what we are meant to be.”
Bay-Schuck points out that “Lose Control” and “Beautiful Things” first became hits outside of the United States, dominating parts of Europe and the United Kingdom before igniting on the Billboard charts this year — but that similarity aside, they required wholly different strategies. “ ‘Beautiful Things’ was viral as f–k — I think that’s an industry term,” Corson says with a laugh, nodding to the dedicated social following and streaming activity that helped unlock radio and tidily set up Boone’s April album, Fireworks & Rollerblades.
On the other hand, Warner had to grind out “Lose Control” with old-school radio promotion, then harness digital marketing to widen its footprint. “It’s one of the most interesting records I’ve ever worked because it’s an eight-format record,” Corson says of the single, which has, in fact, charted on eight different genre-based charts, from Adult Pop Airplay to Rock Airplay to R&B/Hip-Hop Airplay, and has topped three of them in addition to the Hot 100.
As for Bryan, whose singular mix of country and rock has also transcended genre lines, the label’s executives say that his sound, release rate and social media presence all come straight from the singer-songwriter, and they just fill in any of the necessary details. “It is entirely Zach’s vision,” Bay-Schuck says. “And the legacy of this label is exactly that. No one was telling Prince what to do, no one was telling Madonna what to do. You give them advice, you challenge them, you insert your opinions where you can. But ultimately, those artists thrive because the label understood how to let them grow and mature and take swings on their own.”
As they’ve settled into their respective roles, Bay-Schuck and Corson have also clicked personally. They didn’t know each other prior to working together at Warner, but in conversation now, they often finish each other’s thoughts, thank each other for specific achievements and describe developing a friendship “off the field” while sharing a philosophy in the office. “Tom is this masterful operator, and Aaron is serious but in a very nuanced way,” Chester explains. “You have two people working full tilt to keep everything aligned, and the more wins, the greater proof of concept, just doubles down on the relationship.”
The dynamic has impressed the roster’s newer additions. Dasha, whose “Austin” peaked at No. 18 on the Hot 100, remembers meeting with Warner prior to other labels and feeling like her mind was made up before any further conversations. “Tom has been such an angel since day one. He is like my dad — he’s so funny and so kind,” she says. “Aaron, the same thing. He has so much passion for what he does and so much drive that it makes me want to work harder.”
And the label’s veteran artists, too, have met Warner’s efforts to revitalize catalogs and mine new opportunities with open arms. After working with Bay-Schuck and Corson on multiple anniversary reissues, Linkin Park set up its next chapter with new co-vocalist Emily Armstrong under cover of darkness, working with Warner to plan a global livestream, arena tour dates and the Nov. 15 release of its latest album, From Zero. “The Emptiness Machine,” the lead single from the album, debuted at No. 21 on the Hot 100 — Linkin Park’s biggest hit in 15 years and one of fall’s hottest new rock singles. The band’s Mike Shinoda says that Bay-Schuck and Corson were “instrumental” in Linkin Park’s comeback. “They helped us choose ‘The Emptiness Machine’ as a first single before it was completed,” he says.
Next, Bay-Schuck and Corson are focused on building the profiles of Warner’s new stars beyond their breakthrough hits. Teddy Swims’ uptempo follow-up single, “The Door,” has peaked at No. 24 on the Hot 100, and a new album — billed as a “second part” of his debut, I’ve Tried Everything but Therapy — is slated for a January 2025 release. Meanwhile, Boone’s “Slow It Down” reached No. 32, and he spent the year touring the globe (including a few dates opening for Taylor Swift’s The Eras Tour).
The executives also rattle off a dozen rising prospects on their roster — from pop singer CIL to viral country artist Maddox Batson to drum’n’bass revivalist Kenya Grace — and stress a greater focus on hip-hop and R&B in 2025, including with the impending arrival of a new head of its urban A&R division.
Meanwhile, Bay-Schuck and Corson have recently begun overseeing Warner Music Nashville, taking a more hands-on approach with artists like Bailey Zimmerman, Gabby Barrett and Cole Swindell and providing Warner Records’ global resources to help broaden those artists’ international footprints. The move was part of the summertime shake-up at WMG that resulted in Lousada’s departure, as well as the installation of a new regime at Atlantic Music Group, with Julie Greenwald departing as chairman/CEO and 10K Projects founder and CEO Elliot Grainge taking her place.
“We’re getting to know Elliot and [new COO] Zach [Friedman] and [new GM] Tony [Talamo] in real time — so far, great experience,” Bay-Schuck says. “They’re young, they’re energetic, they’re fearless. They’re going to come up with some new ways of doing business that I’m sure will prove to be really great for Warner Music Group.”
Another more subtle change followed the WMG restructuring: Bay-Schuck and Corson now report directly to Kyncl, after previously reporting to Lousada. While both executives say that Lousada’s leadership proved invaluable to their current run of success, they’re happy to be ending a momentous 2024 with a bigger seat at the table.
“We now have visibility into things that we didn’t before,” Bay-Schuck says. “With the greatest respect to those who came before us.”
Corson adds, “We’ve earned this.”
This story appears in the Nov. 16, 2024, issue of Billboard.
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In calling for Universal Music Group (UMG) to move its stock listing and legal headquarters to the U.S. from Amsterdam by next year, board member and billionaire activist investor William Ackman argued the move could make the company more valuable. But financial sources are split on whether that would be the case.
On Friday (Nov. 8), Ackman said his hedge fund, Pershing Square Capital Holdings, which owns 10.25% of UMG’s stock, will exercise its right to require the company to register with the U.S. Securities and Exchange Commission following violent attacks on Israeli soccer fans on Thursday night (Nov. 7) in Amsterdam, where UMG’s stock is listed on the Euronext exchange. But would the move actually benefit the company, as Ackman seems to believe?
“It could noticeably increase UMG’s value because even though it will make your taxes a little higher and you’re going to spend a whole lot more on expensive securities lawyers, it gives you access to the giant U.S. retail market, and UMG is the perfect kind of company for retail investors,” says Erik Gordon, a professor at University of Michigan’s Ross School of Business.
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In the U.S., more than 62% of individual adults own stocks, a group referred to as retail investors. While big institutional investors, like Pershing, account for about three-quarters of the trading volume on U.S. stock markets, like the Nasdaq or New York Stock Exchange, retail investors are a powerful and growing group. Since the start of the pandemic, when retail investors on Reddit fueled a run-up in the share price of companies like GameStop and AMC, more than 30 million new investors have opened brokerage accounts, according to a University of Missouri study.
Right now, four institutional investors control nearly 60% of UMG’s current pool of stock. In his post last week, Ackman argued that lack of liquidity — in part because only a slim portion of UMG’s stock frequently changes hands — could improve if UMG listed in the U.S.
“UMG trades at a large discount to its intrinsic value with limited liquidity in significant part due to it not having its primary listing on the [New York Stock Exchange] or Nasdaq Exchange and not being eligible for S&P 500 and other index inclusion,” he wrote.
Ackman’s argument is essentially that if UMG lists and starts trading in the U.S., its value will make it an important stock in U.S. financial markets, which in a few years will earn it inclusion in a major index, says Gordon. Getting included in an index, like the S&P 500, creates more demand for a company’s stock because mutual funds and exchange traded funds that track the S&P begin to buy the stock.
Over the weekend, UMG stated that Pershing can request that UMG list in the U.S. if it sells at least $500 million worth of its own UMG shares as part of that listing.
“If I had to guess, Ackman will end up with the right to sell his shares in the U.S. public market and that the company will issue new shares in the U.S. so that Ackman isn’t the only guy selling,” Gordon says.
One equity analyst believes UMG would not become a more valuable company if it moved to a U.S. exchange because its shares already trade at a premium to shares of Warner Music Group (WMG). In a Nov. 1 investor note, J.P Morgan analysts wrote about the premium, arguing that “UMG should trade at a significant premium to WMG…to reflect greater scale, a better track record for growth and consistent margin expansion, best-in-class management and better governance.”
According to Billboard’s calculations, UMG shares were recently trading at a roughly 17 times multiple trailing 12 months adjusted EBITDA, while WMG shares were trading at about 11 times multiple.
UMG moving its stock to an American exchange also comes with another downside: the operational expense that U.S.-listed public companies face from shareholder lawsuits.
“One area U.S. issuers have to manage, unlike non-U.S. issuers, is the volume of shareholder litigation that gets brought in the U.S.,” says Michael Poster, a music industry lawyer at Michelman & Robinson. “It’s expensive to deal with litigation, there are a lot of fees associated with managing, settling and litigating the claims, and it’s frankly a distraction for management. Those things contribute to making trading in the U.S. more expensive from an operational point of view.”