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After five years of success as an artist at EMPIRE, Babyface Ray looks to take the next step and evolve into an executive. Today (April 26), Ray announces the partnership between his label, Wavy Gang, and EMPIRE, allowing him to sign and develop talent.
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Ray’s first two signings are Samuel Shabazz and Rally.
“I appreciate the partnership with EMPIRE. We have been partners for the last couple of years, and I’m excited for the next chapter with them and my label Wavy Gang Entertainment,” Ray tells Billboard. “I appreciate the team over there. Ghazi, Nima, Tina, Ari and everyone who has had an impact on my career. It’s time to embark on this chapter.”
Ghazi Shami, CEO and founder of EMPIRE expressed excitement about teaming up again with Ray and watching him leap forward to become an industry executive. “Me and Ray locked in seven years ago. I watched him build his career brick by brick. I’m honored to further our partnership together. His trajectory is limitless. Wavy Gang for life,” he says.
Not only is Ray celebrating the newly minted partnership with EMPIRE, but he’s also savoring his newest accolade: a certified RIAA-gold plaque for his song “Ron Artest,” which features 42 Dugg—his first.
With momentum on his side, Ray looks to ramp up the intensity with his weekly installment of “Face Fridays.” His newest song, “Glory,” is befitting, highlighting the wins in Ray’s life and his gratitude. “You startin’ your discipline, you’re having your business, you’re stackin’ your chips / I’m writing my goals down, I’m knockin’ them all down, I’m scratchin’ the list,” he raps on the BrentRambo and LulRose produced song.
Check out the “Glory” video below.
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A time-tested revenue model in the theater and concert world is to price the front seats highest, and sell them early to the act’s dedicated followers, then fill out the house with cheap seats to optimize cash flow and lower risk. Recorded music does the opposite: when an album drops, an artist’s music is immediately available on all streaming services to every subscriber, leaving no room for passionate fans to self-select into pricier options.
In gaming, at least since the days of Minecraft, superfans have been given early access to titles prior to their publication, generating revenue, feedback and word of mouth.
Movie studios use a similar model, charging for early access to cinema screenings of major films roughly 45 days before they are widely available to stream (typically first as a purchase, then as a rental). Apple used this windowed approach seeking to maximize revenue with Killers of the Flower Moon and Napoleon, as did Amazon Prime with Air.
The record industry seems to have missed the memo. Other than an early misfire trying out streaming exclusives on the artist-owned Tidal service, it doesn’t use a windowed approach. This is a huge missed opportunity.
One way for recorded music to open a more lucrative, superfan-based future is to turn to one of the icons of its past: vinyl records. Rapper Travis Scott figured this out, pressing 500,000 double-vinyl records of his Utopia album and making it available the same day he dropped it on streaming services. Scott has now sold the majority of them at $50 a pop, taking the risk, and reaping the reward. What if he had released those analog vinyl records before the album was launched digitally on streaming? If he had sold half the stock before the digital release, he would have grossed $12.5 million, perhaps banking $10 million of that as profit, all while supercharging his marketing machine as all those superfans paraded their prized product to their friends.
A limited-edition package of Scott’s Utopia on red vinyl.
Courtesy of Cactus Jack Records
Like the boy who cried wolf, we’ve been told again and again that the resurgence in vinyl is a blip, not a trend. Yet for 18 straight years it has continued to surpass expectations. For the past three years, it’s made up over a tenth of all label revenues from the consumer and this year will see labels reap over a billion vinyl dollars, with no slowdown in sight.
Analog is surging in book publishing, too, as printed books are now outselling their digital counterparts 4-to-1 and bookstores are ascending. Not long ago that would have seemed inconceivable.
Now let’s look at where the vinyl meets the road: the math. While streaming is a music industry success story, it’s also a commoditization story – selling more and more for less and less. Back in 2001, Rhapsody charged $9.99 to access 15,000 catalog songs; today Spotify et al charge roughly the same for 120 million songs. Add the impact of family plan, where typically three people share a $15 per month account and the value of an account user has fallen by 10% and that’s before you adjust for inflation. Vinyl is bucking this trend. Since 2016, retail prices for the platters that matter have risen 30%.
Will Page
Anjelica Bette Fellini
For a streamer to provide a record label the same amount of value from an album as a vinyl buyer, a customer would need to press play over 5,000 times — or stream for almost two weeks straight without sleep. Let’s be crystal clear on what this comparison really means: consumers are paying more for the same with vinyl but paying less to access more with streaming. So if you want to hedge your intellectual property bets, you’d better put some chips on black and spin the wheel at 33 1⁄3.
Management guru Peter Drucker once quipped that “the customer rarely buys what the company thinks it’s selling him.” In the case of vinyl, over half of buyers don’t even own a record player. So they’re not buying the music — they’re buying merchandise that gives them a sense of identity and connection to the artist. With streaming, you merely press your thumb on a piece of glass; owning, holding and displaying a curated vinyl record with unique artwork has much deeper meaning to a fan.
There are similar conundrums concerning vinyl’s relationship with the creator. Remember that streaming unbundled the album – so you could have nine filler songs on a killer Number One record yet not get paid for those songs. The book Pivot showed that Gotye’s 2011 debut Making Mirrors was the most streamed album of the year, but it was all down to one hit: Somebody I Used to Know. Strip that hit out and this record falls out of the Top 100.
Vinyl captures more in the unit value — no fan can realistically give your album $30 via streaming — and all songs receive the same payout. Saturday Night Fever soundtrack is arguably the greatest vinyl success story in history; yet the obscure Ralph MacDonald track “Calypso Breakdown” from that album earned the same as the Bee Gees signature track “Staying Alive” for every album sold. Investors in music catalogs should take note: supporting more vinyl releases stands to monetize the vast majority of songs currently owned that make almost no money from streaming.
Vinyl is not without its challenges. Measuring the size of its remarkable continued success story is just one. Recent changes by Luminate, the go-to source for industry data, wiped off 40% of the measured volume overnight, by flipping from extrapolating the size of the market to counting only those who opt in. That’s getting fixed, and will assuage the people it’s upset, but the point remains, there’s way more vinyl being purchased than Luminate measures.
Fred Goldring
Natasha Fradkin
There are other challenges, too. If counting bricks & mortar retail is hard, what about tracking online physical retail that’s based anywhere yet serves everywhere? London-based Juno is a corner kick from Camden’s famous market and serves not just the UK and US, but Brazil and China in equal measure. Add the burgeoning second-hand platforms like Discogs and you get a sense that the true size of the market is a lot bigger than we give it credit for.
This brings us back to the potential of vinyl’s first mover advantage. Until the latter part of 2023, vinyl faced an enormous manufacturing backlog and demand far exceeded supply for even the biggest artists. Many vinyl albums were released many months after their initial streaming release.
A rise of small vinyl manufacturing plants have significantly decreased lag time and backlog. Travis Scott used the Poland-based team at Pressing Business to manufacture 500,000 double-disc, multi-cover, multi-colored Utopia albums in just five weeks, allowing for the highest vinyl debut for a hip-hop artist since records began in 1991. Combined with streaming, the album stayed at #1 for five weeks.
The record industry should start selling and delivering vinyl as an early access opportunity, not an afterthought. Pre-stream vinyl releases can create scarcity, exclusivity and therefore additional revenue from superfans who will jump at the chance to be the first to hear the music or own a limited edition version. Artists will benefit creatively as well, as superfans are the ones most likely to truly appreciate the album as a body of work, curated as the artist intended (and, many would argue, with better sound). Once music is thrown into the ocean of streaming, it often gets lost at sea, and all stakeholders lose something valuable. It’s time for the record industry to embrace the vinyl first mover advantage that is hiding in plain sight.
Will Page is the author of Pivot and former chief economist of Spotify, and Fred Goldring is an Entrepreneur, Entertainment Lawyer and co-founder of Pressing Business.
Just days after launching an audit into subsidiary label ADOR and asking its CEO, Min Hee-jin, to exit, the Korean entertainment giant says it will report the executive to police.
The announcement came ahead of Min holding an emotional press conference in Seoul, where she refuted allegations of usurping ADOR girl group NewJeans‘ management, shared conversations she had with the group’s members and addressed other rumors as the Billboard 200–topping girl group prepares to launch its new single, “Bubble Gum.”
On Thursday (April 25) local time in Korea, HYBE shared the following statement with the media as an update to its audit regarding ADOR, CEO Min and other executives at the label:
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On April 25 KST, HYBE announced that the company will report CEO Min Hee-Jin of its subsidiary label ADOR to police for a breach of trust and other related allegations today.
HYBE secured substantial evidence to prove that Min deliberately led the plan to take over management control of the subsidiary, through the audit process. The evidence included detailed discussions that Min has ordered the ADOR management to find ways to pressure HYBE into ultimately selling ADOR’s shares. One of the audited parties submitted information assets to seize the management of ADOR and to attempt to contact external investors. The auditee also admitted to creating the documents to attack HYBE.
In the meantime, HYBE will continue to provide attentive mental and emotional care to the company’s artist NewJeans and best support for their upcoming comeback. The company will meet legal representatives of the respective members as soon as possible to discuss the plan to protect the act.
As previously reported, Min earned an 18% stake in ADOR in late 2023, when HYBE moved from full ownership of the label to 80%, with the additiona 2% owned by other company executives.
Following Min Hee-jin and ADOR going on the offensive with interviews and multiple statements to various Korean media alleging that HYBE has been exploiting ADOR and allowing NewJeans’ concept to be plagiarized, the K-pop industry veteran held a press conference with her lawyers that lasted more than two hours on Friday.
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According to the Korea JoongAng Daily‘s minute-by-minute report, Min arrived for the 3 p.m. press conference casually dressed in a baseball cap and simple T-shirt to be greeted by a slew of photographers — so many that at one point, the executive said she wouldn’t be able to speak if the camera flashes continued. Throughout the two-hour event, Min proclaimed her innocence, shared her disagreements with HYBE’s leadership, rebutted their conclusion that she wanted to seize NewJeans’ management and tried to shift focus back to her original internal complaint regarding plagiarism. Under Min’s leadership, ADOR previously claimed that HYBE’s newest act, the five-member girl group ILLIT formed under another subsidiary, BELIFT LAB, is copying NewJeans.
While weaving through stories with her lawyers alongside her, an at-times sobbing Min also addressed rumors regarding current and past HYBE artists including BTS, GFRIEND, LE SSERAFIM and more.
During the first half hour of the presentation, Min shared text message chats she claims she had with HYBE founder/chairman Bang Si-hyuk and HYBE CEO Park Ji-won. These alleged texts, according to Min, show Bang’s interest in buying Source Music, where Min previously worked, to launch a girl group. She also revealed that she recruited NewJeans’ eldest member, Minji, from Source’s trainee pool for ADOR. Min further claimed that HYBE’s debuting LE SSERAFIM under the Source label led to NewJeans being cast aside and created internal issues.
In a 2022 Billboard interview shortly after NewJeans’ debut, Min described her move away from Source Music by noting that “there would have been a number of different challenges involved” at the time and that she instead focused on creating “an independent label,” which became ADOR. “ADOR is a label that started with guaranteed autonomy, so it has no ties with HYBE’s management,” Min said. “They actually didn’t have any knowledge about anything we were going to release up until the first music video was released.” In the same interview, a question regarding Minji’s time as a trainee under Source Music was never addressed by press time.
After the first hour of the press conference, Min added claims that her contract terms with HYBE were unfair, though her lawyer said the details of the contract are confidential. Min also alleged that HYBE spun her contacting a law firm as external consulting, creating the current situation. Min pointed to multiple misunderstandings, including those that arose from jokes between her executive team, and added that HYBE still owes her money.
Through tears, Min revealed more text messages claiming that a NewJeans member’s mother called her to encourage her to speak out. During the Q&A with the press in attendance, Min contended that NewJeans members Hanni and Haerin have specifically reached out to her in support.
Separately, two NewJeans members have made public appearances amid the K-pop power struggle. Minji attended a Chanel pop-up store opening on Tuesday (April 23) in Seoul, while Danielle attended different fashion events on the Tuesday and Wednesday, though neither has made public statements on the matter.
Throughout the press conference, Min also touched on BTS (refuting an online rumor that she claimed the Billboard chart-toppers had copied her ideas), GFRIEND (saying she had nothing to do with the group’s abrupt 2021 disbandment soon after her formal start at HYBE) and took several shots at the teams behind ILLIT by sharing how the members are innocent but “it’s the adults that have sinned…copied all the formulas that we had with NewJeans,” from the concept to fashion collaborations, as reported by the Korea JoongAng Daily.
Just as HYBE did in its statement, Min ended her press conference by re-focusing attention on NewJeans. Despite the clash, the K-pop group’s upcoming music video for “Bubble Gum” is still set to premiere on Friday (April 26) via the HYBE Labels YouTube channel.
Universal Music Group is betting big on French-speaking Africa, announcing a new partnership on Wednesday with Wèrè Wèrè Music founder Binetou Sylla to lead Def Jam Africa‘s efforts in the rapidly growing music market. Working with Universal Music France and Capitol France, Sylla and her team will focus on discovering and producing French-speaking artists in […]
Following an impressive run in 2023, producer BYNX officially partners with Zack Bia‘s label Field Trip Recordings and Capitol Records. In addition, BYNX will work with Yeat’s Lyfestyle Corporation, who will work with him on the marketing side.
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“BNYX is an exceptional musician, a true artist with a specific vision but, above all, an incredible human,” says Bia, founder of Field Trip. “Yeat brought him into our lives, and he’s turned into family. It is only right we would all partner to bring his music to the world as the first official signee to Lyfestyle Corporation / Field Trip / Capitol Records. We couldn’t be more honored and excited.”
Capitol Music Group chairman and CEO Tom March echoes Bia’s sentiments and is eager to see the Philly producer blossom under their tutelage. “As a producer, BNYX®️ has had a profound impact on both music and culture,” he says. “We’re thrilled to partner with him, his manager Ness, the brilliant Zack Bia, and Field Trip Recordings on the launch of BNYX®’s solo career. It’s a privilege to enter this new era together, continuing our longtime relationship with Zack and the Field Trip team.”
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BYNX expressed his gratitude, telling Billboard: “I’d like to thank God, my manager, and Rick Owens.”
BYNX carved out a formidable lane for himself on the hip-hop side, working with the likes of Drake, Travis Scott, Nicki Minaj and his running mate, Yeat. BYNX produced four records from Yeat’s 2023 album AftërLyfe and Drake’s “Search & Rescue,” which debuted at No. 2 on the Hot 100 last year.
The partnership with Field Trip and Capitol will enable BYNX to release his debut album and single soon. Fans of the BYNX and Yeat tandem can rejoice, as the producer will join the “IDGAF” rapper on a soon-to-be-announced run of special shows this summer.
While HYBE has successfully expanded into an entertainment powerhouse built around its multi-label structure, the Korean corporation says it has investigated one of its crown jewel agencies, ADOR, the home of chart-topping girl group NewJeans.
Since its launch in late 2021, ADOR (an acronym for the phrase All Doors One Room) has been led by Min Hee-jin, a veteran creative in the K-pop industry who famously helped develop the scene’s penchant for artistic concepts and craft era-defining K-pop acts like Girls’ Generation, SHINee, f(x), EXO and Red Velvet during her tenure at SM Entertainment. After Min’s exit from SM, she joined then–Big Hit Entertainment in 2019 as chief brand officer and helmed the company’s rebrand into HYBE. During the 2021 rebrand reveal, HYBE announced Min as CEO of a new label, ADOR, with plans to debut the girl group that would become NewJeans.
Earlier this month, a report by Korea’s Financial Supervisory Service revealed that Min controlled an 18% stake in ADOR since late last year. HYBE previously had complete control of the label but now boasts 80%, with an additional two percent owned by other company executives. HYBE reportedly invested 16.1 billion won (about $11.7 million) to establish ADOR.
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Less than two years into NewJeans’ history-making debut, HYBE is asking Min to step down from ADOR after an audit of her, the label and its executives.
HYBE confirmed to Billboard that on April 22, the company “invoked the right to audit CEO Min Hee-Jin and top executives of its subsidiary label ADOR.” HYBE said it “called them to summon a shareholder meeting and sent an official letter to ask CEO Min to step down.” HYBE added that it could not provide further information on reason or reasons for the audit or why it is asking Min to step down.
Since news of the audit went public, ADOR and Min Hee-jin have gone on the offensive in the Korean media.
In a series of statements, ADOR claims HYBE’s newest act, the five-member girl group ILLIT under another subsidiary, BELIFT LAB, is copying NewJeans. With HYBE founder and current chairman Bang Si-hyuk involved in ILLIT’s debut album Super Real Me (No. 6 on the World Albums chart after three weeks), ADOR claims both BELIFT LAB and HYBE are complicit in the alleged infringement. ADOR says they raised the copycat issue internally a month ago but did not receive answers, claiming now that HYBE’s attempt to remove her as CEO is a result of bringing up the alleged problem. Min gave an additional interview to Korean outlet Sports Ilgan to fire back at rumors she was trying to break ADOR away from HYBE or seek outside investors to go independent with her 18% stake.
Min Hee-jin has not responded to Billboard‘s request for comment.
Min and ADOR quickly spun NewJeans into a slew of record-setting achievements including a No. 1 album on the Billboard 200 with 2023’s Get Up just a year after the debut, five Hot 100 hits to their name, a well-received live debut in the U.S. at Lollapalooza last year, plus honors like Top Global K-Pop Artist at the 2023 Billboard Music Awards and the first K-pop act honored as Group of the Year for Billboard‘s Women in Music. In 2023, Min earned a spot on Billboard‘s International Power Players and Women in Music executive lists and also collaborated with V of BTS on the overall production of his debut solo album, Layover, which peaked at No. 2 on the Billboard 200 in September.
The K-pop power clash comes as NewJeans prepares for several releases including new singles “Bubble Gum” and “How Sweet,” with the former’s music video scheduled to drop April 26 on the HYBE LABELS YouTube channel. NewJeans is also preparing their first-ever Japanese singles “Supernatural” and “Right Now,” as well as a new album planned for the second half of 2024.
Elsewhere in the HYBE universe, ILLIT’s “Magnetic” is currently at No. 91 on the Hot 100, making it the first debut single from a K-pop act to enter the ranking. New music from HYBE artists like Zico (under HYBE LABELS’ KOZ Entertainment) and SEVENTEEN (PLEDIS Entertainment) are also coming this month. Historically, internal company issues can affect K-pop music or content releases, but no updates have been shared as of press time.
Following her departure from longtime home Sony Music Nashville last year, Miranda Lambert has signed a new deal with Republic Records. Nashville’s Big Loud will provide country radio promotion and marketing efforts as part of its partnership with the Universal Music Group-owned label.
As the first salvo in the new deal, Lambert will release the new track “Wranglers” on May 3. It will mark her first new music since the release of her 2022 album, Palomino. “’Wranglers’ is a tale of a woman taking her power back. I think we can all identify with the character in this song, because we have all had a time in our life that we needed to find a way to find our strength and also get a little revenge on someone that did us wrong or hurt us,” she said in a statement. Lambert will likely premiere the song during the seven-time CMA female vocalist’s headlining Stagecoach Festival appearance this Saturday (April 27).
Lambert’s affiliation with Republic comes as the New York-based label has moved more into country music and further into its partnership with Big Loud; in March, Big Loud inked a multi-year distribution deal with Mercury Records/Republic for all of its acts. Previously, only releases by Big Loud acts Morgan Wallen, Lily Rose and Dylan Gossett had gone through the partnership. Notably, Gossett is signed to Big Loud Texas, an imprint Lambert and Jon Randall started last year through Big Loud.
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“Being in Texas with Jon, recording where I cut my teeth as a young artist, felt like coming home. I thought about the women — and men — who’ve lived, loved and found power in my music, and I wanted to get back to the root of those spaces,” continued Lambert, who is managed by Marion Kraft. “Talking to [Republic founder/chairman Monte [Lipman], [Republic founder/vice chairman] Avery Lipman and the team at Republic, as well as [Big Loud CEO] Seth [England] and the Big Loud folks who are leaning in, everyone understood my desires and vision for this next era of my music. Aligning like that is empowering; it gives you a license to really chase it. Signing with Republic has inspired me to find the sweet spot for me and all the people like me. I can’t wait for everyone to hear ‘Wranglers,’ and the rest of this record.”
“Miranda Lambert’s legacy as both a consummate storyteller and legendary performer speaks for itself. Her new music is spectacular and we are thrilled and honored to welcome her to Republic Records in partnership with Big Loud,” added Monte Lipman.
Lambert added that the move has been inspiring. “Having a new home has given me a hunger I didn’t realize I still had inside me,” she said. “This song feels like it could be on the same record as ‘Gunpowder & Lead’; it has that same fury. I can’t wait to get out there with this new label and this new music… Monte Lipman and his team fire me up!”
“Gunpower & Lead,” featured on Lambert’s second album, 2007’s Crazy Ex-Girlfriend, became her first top 10 hit on Billboard’s Hot Country Songs chart.
There’s no word on when Lambert will drop a new album, but Republic president/COO Jim Roppo said in a statement, “As she puts the final touches on her fantastic new body of work, it has all the hallmarks of her signature sound, yet she continues to push herself as a songwriter, producer and performer. We’re all at the beginning of a very special moment, and we’re grateful to be on this journey with her.”
Lambert, the most awarded artist by the Academy of Country Music Awards, recently wrapped her residency in Las Vegas and will be on the road through September, during which time she will headline several music festivals.
When Annie Ortmeier was appointed co-president at Triple Tigers in September, one of the programs she undertook was retooling Scotty McCreery’s online presence.
One person, rather than an independent firm, was devoted to the singer’s social media, and in the first six months, his email list doubled in size alongside growth in his streaming and his online followers. When McCreery received the trophy for CMT digital-first performance prior to the CMT Music Awards on April 7, it marked his first win at that ceremony in 12 years, and Ortmeier took it as a sign that their revised marketing efforts are working.
“We made voting a part of our social media strategies since the nominations came out,” she says. “I can’t help but think that had a lot to do with him winning that award.”
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Ortmeier and Warner Music Nashville co-president/co-chair Ben Kline are the first two country label heads whose paths to leadership included working full time in digital marketing. Ortmeier’s journey started in 2004 at CMT.com, where she ventured into ecommerce for CMT, VH1, VH1 Classic and Comedy Central. She segued into digital marketing for Universal Music Group Nashville.
Kline started more traditionally in the 1990s with the pop divisions of PolyGram and Island before joining UMGN in 1997, staying in Nashville for a dozen years. By the end of that run, new media had become part of his job title. He left to work for three years at InGrooves, a company focused strictly on distributing and marketing music online. It was a key piece of his development as a 21st-century music executive prior to his 2014 return to Nashville with WMN.
“Every decision we made [at InGrooves] was viewed through the digital lens, and we were raising money and going through a couple rounds of funding, and the conversations all were digital: ‘What’s the future? What’s next? What are the growth patterns?’” he recalls. “It was a digital-driven business, and you had to understand the ins and outs of how to speak to consumers and speak to partners in that space.”
Both Kline and Ortmeier first devoted their efforts to digital music and promotion full time in an era when CDs and airplay were still the primary vehicles for the country genre. Their early commitment to then-new platforms uniquely positioned them to take label reins once the industry’s drivers flipped.
“I was working in streaming when it was 15% of the business,” Ortmeier recalls of her earlier UMGN work. In more recent years, “it was 85% of the business. So it completely inverted.”
Label leadership has changed dramatically in Nashville. In the earliest years of the business, record company heads — including Chet Atkins at RCA, Owen Bradley at Decca and Ken Nelson at Capitol — tended to be producers. It made sense; labels earned their money by selling singles and albums that were exposed through radio, and producers generally had a handle on the sounds that worked on-air. But as the industry increasingly relied on the sales of more expensive albums, record companies more frequently gave the top position to promotion and marketing execs, including Joe Galante at RCA, Bruce Hinton at MCA and Rick Blackburn at CBS.
Now that artists and labels reach listeners through virtual platforms, the industry’s central companies are turning to people who were on the front lines as those new avenues emerged, providing more data than was ever available before. Understanding that information is key to every modern marketing plan. But knowing when to apply humanity to the numbers is just as important.
“Data can make smart people look dumb or make dumb decisions,” Kline reasons. “Analytics and data help inform, but it can’t be how your decisions are all based. Gut and instinct and knowledge and past experience — they all have to play a role.”
One of the key lessons of past experience, however, is that the past may not be much of a predictor for how to reach fans in the future. Taylor Swift famously built some of her earliest fan base on Myspace, which is now a quaint relic with outdated accounts. Luke Combs came to prominence by introducing his music on Vine, which was shut down in 2017.
“Whatever is working today, enjoy it today, because it may not work tomorrow with the digital world,” Kline says.
That same digital environment has radically changed the way that labels and artists find one another. In another era, artists’ consumer marketing started primarily after they signed a recording deal and started releasing music. Now the artist already has a fan base before labels will even consider a signing, and the act is usually savvier about how to interact with that audience. Thus, meetings with an artist in 2024 are different than they would have been in, say, 1994.
“They’re creating fans, they’re talking to them, they’re sharing music, they’re getting their music heard,” says Kline. “Think about the stories that artists bring by the time they go sign deals versus what it was 30 years ago. I mean, it’s unbelievable, so the conversation has to change.”
Similarly, that overall country audience is different. Streaming platforms make more artists and more genres available, so even core country listeners are likely to ingest a wider range of music. Similarly, the genre is accessible to a much larger slice of the population. Thus, the current Beyoncè moment is possible, in part, because of streaming. Cowboy Carter is connecting because she was able to harness her established audience in addition to appealing directly to country fans. Had she attempted to cross over in ’94, her primary options of exposure would have been late-night TV appearances, prominent in-store placement and whatever radio play she could muster. PDs who were protective of country’s identity would have felt reluctant to give a playlist slot to a pop singer who was likely to stick around for only one album.
“It does open up a consumer who never thought they were a country fan, much like Garth Brooks did 30-plus years ago,” Ortmeier suggests.
The shift to digital marketing and distribution in country directly aided the rise of Kline and Ortmeier to label leadership. Streaming is here to stay, so it’s a good bet that these two execs are setting what could be a long-term precedent.
“I do think,” predicts Ortmeier, “that there will be others behind us.”
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On Jan. 30, the day before Universal Music’s deal with TikTok lapsed, the company announced in an open letter that “we must call time out on TikTok,” for not paying rightsholders and creators enough. Universal immediately began removing its recordings from the platform — then, by the end of February, took down every composition to which it had some rights. Essentially, Universal went to war for the value of music, to benefit not only it and its artists and songwriters, it said, but the entire industry. And although the two other major labels declined to comment at the time, Primary Wave, Downtown and Hipgnosis publicly backed Universal, and in late March Sony Music CEO Rob Stringer told the Financial Times that he did not rule out taking the same action as Universal.
Not Taylor Swift, though.
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By April 11, a little over a week before the release of Swift’s new album —The Tortured Poets Department, which comes out April 19 — songs from Swift’s albums to which she owns the rights were available on TikTok. Which made for an uncomfortable conversation, you’d have to imagine — and that’s about all you can do, because neither Universal nor Swift’s representative would comment and TikTok could not be reached for comment.
It seems that Swift’s contract with Universal allows her to either license the recordings she owns herself or somehow opt out of label licensing policies, which is an unusual amount of independence. Usually acts with that kind of leverage choose to leave their music off of new services — the Beatles waiting to offer their music on the iTunes Store is the classic example — or strike some kind of exclusive deal, like Garth Brooks did with Amazon Music. It’s hard to think of another example where a label announced it was going one way and its biggest artist — although she hasn’t said anything about her decision — went another.
That’s a big deal. Eventually, Universal’s other megastars — think Morgan Wallen, Drake, or The Weeknd — might want that same freedom or start to think about using whatever freedom they already have. Some artists have more power than others, though: Swift’s contract is generally thought to be more like a distribution deal, where she owns her new recordings, including the Taylor’s Versions of her old albums, but licenses them to Universal. Also, with 18.9 million album consumption units in 2023, more than some divisions of major labels, she has more market power than any other artist.
Given TikTok’s relatively low payouts, many executives assume that Swift appreciates the platform’s promotional value, even though she doesn’t exactly need it — Tortured Poets would almost certainly be the biggest album of the year either way. There’s also speculation that she wants to reach out to younger fans with shorter attention spans.
This reasoning seems to go against Swift’s reputation for sticking up for the value of music more broadly, as she did when she declined to release her 1989 album on Spotify, pushed Apple Music to pay rightsholders for plays during the service’s free trial period and insisted that Universal pay artists their share of the proceeds from its Spotify stock sales whether their deals had recouped or not. “This is not about me,” she wrote about the Apple situation at the time, but rather about emerging artists. What happens to them now? It has even been suggested that Swift essentially crossed a picket line of sorts.
That’s a bit much. The concept of a picket line implies a situation in which people who are paid on a scale are bargaining collectively, and that’s not the case here. And it’s not Swift’s responsibility to fight for the overall health of the music business — she’s an artist and she’s already done far more than most. For that matter, there’s more to creators’ rights than the size of a check. If you think about the way Swift re-recorded her old albums, she may place as much value on control — not only how much she makes on an album, but who owns it, how they present it, and where and under what circumstances it can be heard. I’m not sure whether her decision about making her music available on TikTok is the right one, but I am completely positive that it’s not mine to make.
This is all based on the assumption that Swift’s agreement with TikTok is vaguely similar to the one labels have, but that may not be the case. If you think about Swift’s instinct for navigating the music business, her deal could be much better — perhaps with an advance or guaranteed minimum or other kinds of considerations. (Just to be clear, I have no idea.) If you were, or managed, an artist with that kind of market share, what would you ask for? And if you worked for TikTok, facing political pressure in the U.S., as well as a difficult negotiation with the biggest music company in the world, how much would you be willing to offer?
In the modern media business, market share doesn’t just create efficiency — it also offers important negotiating leverage, especially with technology companies that operate on a global scale. That’s why music and film companies are buying rivals, getting deeper into the distribution business, and pursuing growth so aggressively in the first place. Swift may be the only artist there is who can offer real scale by herself, built on recordings she owns herself, so labels don’t need to worry about this becoming a trend. But whatever Swift’s decision means for the industry at large, it seems somewhat inevitable that she would pursue, and at some point use, the power her market share gives her — just as the major labels do.
When Steve Stoute connected with Davido at his UnitedMasters SelectCon event last year, he didn’t flinch at the opportunity to build with the Afrobeats superstar; after their initial encounter, the executive visited Davido’s homeland of Lagos, Nigeria and dared the “Fall” singer to dream bigger. Stoute envisioned Davido, adept at crafting sugary melodies with a Nigerian flair, leading nothing less than a global takeover — not just as a premier artist but as a businessman.
Starting Wednesday (April 17), the three-time Grammy nominee will embark on a new chapter as a full-fledged executive, signing a deal with UnitedMasters (which recently launched in Nigeria) to start a new label, Nine+ Records. Stoute and Davido are clear that they won’t limit themselves to Afrobeats but will venture into the realms of hip-hop, R&B, Latin, country and more, casting a wide net for new talent.
“I think the music that Davido has been able to make, produce and share with the world has been amazing,” says Stoute. “For me, I think his connection between Nigeria and Atlanta, and everything he’s gone through has brought unique experiences that I can hear and feel through his lyrics and production. I didn’t even know that [at the time], I just knew there was something different about his sound and the way he structured his songs.”
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According to Stoute, it didn’t take much convincing: He sold Davido on the possibilities of building a label reminiscent of the hard-nosed rap imprints he witnessed first-hand in the ’90s and ’00s.
“There’s such a big opportunity globally and I see him as an entrepreneur that could build the next Bad Boy, the next Death Row and the next label that has significant impact like a Cash Money,” Stoute says. “[I told him to] forget everything you were doing before, let’s commit to building something in a joint venture and that’s the formation of Nine+ and UnitedMasters.”
Billboard spoke to Davido and Steve Stoute about their newly minted partnership, the importance of having a great team and more.
Davido, what made you decide to partner with UnitedMasters for your new label Nine+ Records?
Davido: Shout-out to big bro. There’s one thing that I’ll always love, which is nurturing new talent, bringing them up and helping them grow. I’ve been doing that since Afrobeats wasn’t even Afrobeats, since when you guys didn’t even know what it was. Since I came up from writing my first song, I’ve been helping my two cousins work on their music. I put them under my label, but it got to a point where I felt I needed some knowledge. I need some mentors to advise me. Some artists, all you need is one hit song and your life can change. Sometimes, when you get to that point, you don’t have anybody to advise you on how to move and get good paperwork done. I just felt like that was one thing Steve Stoute represents, and that’s helping the artists and making sure they know the best option when it comes to business. My job is obviously to bring the creatives and deliver, but I do need Steve’s vision on how I’m going to advise on these new artists.
Steve, speak to the tutelage you hope to instill in Davido from an executive lens with the years of experience you have under your belt.
There’s a thin line between what a talent and what an executive has to do. For a lot of talent, it’s very hard to be an executive or it’s hard for them to jump that fence. I’m gonna be there to help him because he comes from a lineage of very, very tight, philosophically sound businessmen.
His father was a G. His father was very special and talented. Davido is also very creative. It takes that sort of left brain and right brain to be a talented musician who could work with talent as well as be a business person. To be able to bring that together to build one of these legacy companies, the greatest artists always had that attribute. He has that attribute.
The best thing that I can do is, you use my experience as a veteran in this business to help put up some guard rails to keep him going because I want him to become the biggest artist in the world and continue his trajectory as an artist, but then build something that’s a legacy outside of that with Nine+.
Before this, I was the president at Interscope. When Jimmy [Iovine] built Interscope, it was all about these labels. Whether it was Pharrell’s label, Organized Noize, Timbaland, or Aftermath, these were labels that were built because Jimmy built The Ruff Ryders. Jimmy believed in that model. So I came from working with talent who had labels and I understand how to build that model just from that experience. I want to pass that along to this young entrepreneur, creative genius.
What’s the best advice you’ve gotten from Steve on accelerating as an executive and building out Nine+ on what you ultimately want it to become?
Davido: First of all, you gotta have a good team. There’s one thing I learned from Steve: I didn’t know you had to get all of this to get a label because where I’m from and where you record, there’s no office. Now…with Steve, we’re getting an office, we’re getting [a lot]. I have a studio and a headquarters, but it’s different from the way I’ve worked.
Steve Stoute: If you wanna scale, you gotta bring structure. He’s a super-talented guy. He’s gonna find talented people. There’s been a lot of people who are talented, but they didn’t have the business structure around them. They never got a chance to see the effects of their talents go all the way. It’s the guys who had structure with talent that were able to actually go all the way. My job is bring that structure to him and hopefully to his team.
He has a great team around him. He has a great team of people with chemistry. Chemistry is undervalued and underrated. It’s very important who you want to work with. We’re here to bring that structure and funding so he can do what he has to do. My job isn’t to go in there and A&R records. If I can get him in the room with the producers and the artists, and I can get it out the room, that’s my job. To get in the room and to get out.
Again, my experience in doing this for a while and being able to help bring that structure, whether it’s an office or not, is what I’m bringing to the table and I’m looking forward to working with him and building something that’s an aspect of his legacy.
With Nine+, are you looking to expand beyond Afrobeats?
Davido: Oh yeah, everything. R&B, trap, etc. Obviously, I’m going to start in Africa, but definitely yeah. I can see us going all the way. I don’t see why not.
Steve Stoute: Look, I told you, my man has roots in Atlanta and Nigeria. This is not going to be limited to anything. When you have creative people who can understand melodies, beats, rhythms and songs, whether it’s country music, trap music, hip-hop music, Latin music, none of these things are off-limits. I think we look at it as global music. I think Davido is a global superstar. He’s going to sell out Madison Square Garden like he sells out London, like he sells out buildings in Africa. That’s what he does. He wants to make global music, so we’re looking for artists that have that potential and it’s not limited to genre. It is limited to great music.
