Record Labels
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Brazilian pop singer/songwriter Giulia Be has signed a new recording deal with Sony Music Latin Iberia. The rising Brazilian star, whose music draws from Brazil’s tropicalismo movement with influences of disco and urban music, is currently working on new material that will be released through Sony worldwide. “I am deeply grateful for this new journey […]
Virgin Music Group has announced the acquisition of Outdustry, a leader in artist and label services and rights management across China, India, and other high-growth markets.
The acquisition, disclosed on Wednesday, underscores Virgin’s commitment to expanding its influence in some of the most dynamic music regions globally. Outdustry will continue its established operations in marketing, music publishing, and label services under the Outdustry brand, while founder Ed Peto will join Virgin Music Group as senior vice president of international strategy.
Peto, based in London, will oversee Virgin’s strategic direction in China, India, and other fast-growing regions, reporting directly to Virgin Music Group co-CEOs JT Myers and Nat Pastor. He’ll collaborate closely with Michael Roe, managing director of Virgin’s operations in Africa, the Middle East, and Asia.
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“After more than fifteen years working in China, India, and other territories, Ed and his team have built unparalleled experience and relationships in some of the world’s most important growth markets,” said Myers. “Ed will be a key player as we chart our global expansion plans. We’re happy to have him and his team onboard for this exciting next step in the evolution of Virgin Music Group.”
Peto stated, “Bringing everything we’ve built at Outdustry into Virgin Music Group represents an enormous opportunity to expand our vision globally. It’s never been a more exciting time to be working in music, and I’m looking forward to working closely with the incredible team that Nat and JT have assembled to create more opportunities for independent music entrepreneurs and artists around the world.”
With a well-established footprint in Asia, Outdustry operates as a multifaceted company that includes Outdustry Songs, a publishing arm that has landed numerous hits with leading Chinese artists such as Bibi Zhou, Kun, Jolin Tsai, Chris Lee, Lu Han, Sunnee, Jane Zhang, and Pharaoh. Outdustry Records, the company’s label division, is committed to spotlighting emerging talent in the region. Both Outdustry Songs and Outdustry Records will continue to work in partnership with Universal Music Publishing Group and Virgin Music Group, respectively.
Founded in Beijing in 2008, Outdustry has been pivotal in facilitating international success for artists like Adele, Dua Lipa, Lauv, and Major Lazer in the Chinese and Indian markets. The company has also been instrumental in landmark market entries for indie heavyweights like Beggars Group and Merlin and has consulted for global brands including Spotify, PRS, and Believe in Greater China.
HYBE CEO Lee Jae-Sang has shared a public apology following a partial leak of the company’s internal “Weekly Music Industry Report,” which boasted what some have called disparaging remarks about the K-pop industry, including some young artists.
The letter stemmed from a Thursday (Oct. 24) court hearing regarding the HYBE audit carried out by the South Korean National Assembly’s Culture, Sports, and Tourism Committee. The Korea Herald reported that Democratic Party representative Min Hyung-bae revealed the weekly document during the heart. Reportedly spanning around 18,000 pages, Rep. Min noted that the document contains unverified rumors and at times harsh commentary on very young artists, including minors, with alleged statements including, “They debuted at an age when they’re at their most unattractive” and “Surprisingly, none of them are pretty.”
In response to the leak, a letter by Lee that was posted on the company’s official website on Tuesday (Oct. 29) offers an apology “to the artists, industry stakeholders, and fans” who were upset the the revelations.
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“This document was created as part of a process to retrospectively gather various reactions and public opinions on industry trends and issues,” wrote Lee, clarifying that it was shared only with “a limited number of leaders.” However, he acknowledged that it was “highly inappropriate” for the document to feature “provocative and explicit expressions directed at K-pop artists,” adding, “As the representative of the company, I acknowledge all the mistakes and take full responsibility.”
Lee added that HYBE is “reaching out to each agency individually to offer our apologies directly” and continued, “I am also sincerely extending an official apology to all the artists of HYBE Music Group who have been subjected to criticism due to the company.”
Lee further promised “to establish guidelines and strengthen internal controls to prevent such issues from occurring again” and added that the company has halted the creation of such documents. Near the end, he emphasized HYBE’s dedication to the well-being of all artists and its respect of the fans, committing to reforms aimed at contributing positively to the K-pop industry.
Read the full statement (with translations provided by Soompi) below:
As the CEO of HYBE, I extend my sincere apologies regarding the HYBE monitoring document.
Regarding our monitoring document that was highlighted during the National Assembly’s Culture, Sports, and Tourism Committee audit on October 24, I deeply apologize to the artists, industry stakeholders, and fans.
This document was created as part of a process to retrospectively gather various reactions and public opinions on industry trends and issues. Although it was intended to be shared only with a limited number of leaders to understand market and fan sentiments, the content was highly inappropriate. The document contained provocative and explicit expressions directed at K-pop artists, included personal opinions and evaluations of the author, and was preserved in written form. As the representative of the company, I acknowledge all the mistakes and take full responsibility. I am particularly sorry and distressed about the unfounded suspicions of reverse viral marketing that are not true at all, causing misunderstandings and harm to innocent artists and individuals.
I formally and respectfully apologize to the external artists mentioned in the document who have suffered damage and distress. We are also reaching out to each agency individually to offer our apologies directly. Additionally, I am also sincerely extending an official apology to all the artists of HYBE Music Group who have been subjected to criticism due to the company.
I acknowledge the lack of awareness among the leadership who received the document and, as CEO, I have immediately halted the creation of such monitoring documents. I promise to establish guidelines and strengthen internal controls to prevent such issues from occurring again.
Once again, I apologize to the artists, industry stakeholders, fans, and everyone who loves and supports K-pop for the pain caused by this incident. As the company’s representative, I commit to thorough reflection and self-examination to rectify past mistakes and prioritize the rights of all K-pop artists and respect for fans. We will do our utmost to contribute to the healthy development of the K-pop industry.
Thank you. HYBE CEO Lee Jae-Sang
Songwriter. Musician. Singer. Producer. Creative director. Social media expert. Videographer. Editor. Marketing department. Digital department. Product manager. Data analyst. Label owner.
These are just some of the job titles that can apply to an artist in 2024 — a whirlwind of adventure, experimentation and exhaustion. Throughout my career, I’ve been signed to a major label, indie label and recently just started my own. Maybe you’re an aspiring artist, you listen to my music or you’re simply bored and scrolling. Here’s what I’ve learnt, what I’ve loved and what I’ve struggled with.
How I Got Here
In 2012, I was a 17-year-old girl from a small town, equipped with a guitar and big dreams. I released my first official EP, The Apple Tree, which shot into the top 10 on the iTunes chart. The lead single, “The Apple Tree,” then became BBC Radio 1’s “Tune of The Week” and I subsequently signed a five-album record deal with Universal’s Island Records. I desperately needed the money and I also naively thought they were going to make all of my dreams come true. After battling to find my identity on their roster and trying to hone my craft as the musician I wanted to be, I released my first folk/pop album, Peroxide. It charted at No. 11 on the UK’s Official Albums Chart Top 100, missing the top 10 by a small amount of copies. After this was classed as a disappointment, I was promised another shot and they picked up the option for a sophomore album. However, after two years of making that album, it became clear that I had in fact been shelved and was later dropped — the night before a music video shoot for the first single. It was brutal and mortifying.
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I threw myself into songwriting for others and, after having some success with that, I wrote my second album, The Sun Will Come Up, The Seasons Will Change. I had written the majority of the album before I signed to an indie label at the end of 2016, writing and recording the demos in the bedroom of my London flat share. I couldn’t afford to pay producers after being dropped, so I taught myself how to do it until I found a few passionate collaborators. I still had this gut feeling that my time as an artist wasn’t over. I felt like I had something to prove. My manager and I sent the demos around to most of the labels, including “The Best You Had,” which eventually earned us our first silver record and a spot on Taylor Swift’s playlist. However, at the time, everyone passed on the songs except a handful of indie labels.
I met with Cooking Vinyl and although they had no one else like me on their roster — it mostly consisted of older, hugely established artists with decades of releases under their belt — I liked what they stood for. I felt like it was a place I could have full creative control and I knew they already liked the album. It was a risk for them and it was a risk for me. I released my second album through Cooking Vinyl in 2019. Overall, my indie-label experience was a very positive one and just what I needed to restore my faith in the music industry. They helped me build a long-term career and I’m forever grateful for all the work they put in to take me to the next level. I then released my third album, Älskar, on Cooking Vinyl in 2022, written mid-pandemic. This is when I felt everything start to shift. The world changed. The music industry changed. Social media changed. I changed.
After the success of my second album and a grueling touring schedule — once being on two tours on different continents at the same time — I felt completely burnt out. Mentally, creatively and physically. It wasn’t a sustainable way of working. I felt like I had to say yes to everything in case it was my only shot. Then the pandemic hit and we were all forced to slow down. Things became increasingly online and the rise of TikTok began. Suddenly, unknown artists were having top 10 hits almost overnight, and artists that had been dropped were having their big breakthroughs. For a time, I felt like it started to give power back to the artists and fans. It was something I would’ve dreamed of when I was a teenager starting out, coming from a small village with no industry contacts or financial backing.
However, as time went on I started to feel like it was becoming a competition for the viewer’s attention. Social media felt oversaturated with everyone trying to do the same thing, and there seemed to be an overwhelming amount of music being released. According to Luminate, an average of 103,500 tracks were added to streaming services daily in 2023. I started to miss some of my favorite artist’s albums coming out because I didn’t even hear about them.
I was encouraged to reduce my songs to 10-second clips, to try to start trends with certain lyrics, or do something that demanded the viewer’s attention within the first few seconds. But I felt like I didn’t fit into this new world. I’m not shocking. I’m not extroverted. I don’t think I’ve just written the song of the summer. Like most of my fellow musicians, I’m full of self-doubt and anxiety. I wanted something more than virality and views.
Why I Decided to Launch a Label
In 2023, I took some time out to write for other artists and reassess what I wanted to do. After some time away, I started to write music for myself again. I was fully independent at that point. After the pandemic and how everything had changed, I just wanted to create something that set my world alight because the rest felt so uncertain. Over the course of three months, in the mornings and evenings, I wrote my latest album, Mountain Music. It’s a folk album and completely different to anything I’ve released before. After playing the demos for my manager, Vicky Dowdall — who has managed me since the 2012 release of The Apple Tree EP — we decided to send it to some labels.
I was unsure what a record label could offer us in 2024. My last album campaign with Cooking Vinyl felt very social media heavy. Of course, I always want to be the one running my social media, but it is a lot of work when you’re also trying to juggle the music side of things. It made me question: If it’s mostly on me to get this album out there, do I really need a label? Vicky and I have always been proactive with every album release. She and I are lucky to have relationships with passionate people who work at streaming services. Vicky has always been the one to book meetings with the likes of Spotify, Apple, Amazon, YouTube, etc. She has always been the one to do the meetings. Vicky has secured me playlists and billboards around the world for my releases and I trust her fully to get my vision across. I started to feel like the traditional support a label could offer us seemed slightly redundant in 2024. Everything now feels so social media-based, and I believe it really does have to come from the artist. People want to see behind the curtain. They want to know who they’re listening to. I thought, why not fully embrace that?
Off the back of receiving some offers from labels, I told Vicky I’d rather start a label with her. After a decade of going from label to label, leaving large gaps between releases while we figured out the next deal, I wanted to create our own home. Momentum is so important in an artist’s career, and I’ve found that switching between labels and the lengthy waits during these contract negotiations can really affect it.
The other thing for me was that typically, an artist manager works for 20% commission and only gets paid once the artist gets paid. The chances of the artist actually earning money from an album is slim. You have to really believe in it and be willing to initially work for free, as does your manager — but in the end, they will only receive 20%. These days it feels like so many managers are also taking on the roles that a label used to. Vicky and I were in agreement that we would start our label as co-owners. We couldn’t do it without each other. We decided to call it Apple Tree Records, as a homage to our first release together. It was a time when anything felt possible, when we were two young women in the music industry on a mission. I wanted to weave that ethos into our label and remember that feeling with every release.
How I Launched My Label
I’m not ashamed to say, I had absolutely no idea how to go about starting our own label. I had no idea what it would look like or what it would require. Vicky took the first step to secure a distributor who would help fund it. We went with FUGA as I loved their passionate team and how they also provided an audience service, which meant they’d help with the social media and the digital side of things. Distributors typically sign labels, not artists, so we formed our company and the rest was history.
It was then time to decide what kind of team we needed. We initially kept it very small, with a few people consulting on marketing. Over time we started to hire services such as radio, PR, TV and more. We hired people coming from all different areas of the industry — some with decades of experience, some with much less. I think everyone can offer different perspectives which feels important, especially in an industry that is rapidly changing. We also had to find someone to help with invoices and legal contracts — the boring part that I like to pretend doesn’t exist!
There’s definitely a lot more to setting up a label than I first thought, but it felt empowering making these choices by ourselves. I loved handpicking our team, people who were truly passionate about the project. As an artist signed to a label, sometimes the person leading your campaign will leave and then someone else will inherit you. It can work out, but it can also be detrimental if that person doesn’t click with your project. It was incredible to feel supported by a group of mostly women, as it reminded me how much times have changed since I first started out.
The Good Parts
I’ve loved waking up every morning thinking, “What can I do to further this project today?”
I’ve enjoyed being part of a team, not just being the artist. Working side by side with my manager and making all the decisions together. I’ve loved having absolute free reign to do niche creative things, such as creating a microsite where listeners can visit a map, get access to exclusive content and follow along the journey while listening. Making sure every single aspect of this album campaign has been carefully thought out has been so fulfilling. From the colors and stories associated with each vinyl to the way we address my listeners in each mailer, making them feel like they’re going on a road trip to the mountains.
I’ve received so many lovely messages from my listeners telling me they’ve really enjoyed how interactive and creative this project has been. It’s also been interesting to see where our spend has had results and where it hasn’t. It’s been a learning process about what is worth investing in and what isn’t. Every artist’s project is completely different and there’s no right answer for everyone, but I think the main thing this campaign has taught me is how important your audience is. Of course, they’ve always been the most important thing, but they now also hold the power to break you as an artist. In the past, it was the audience who bought the songs that ultimately broke an artist, but it was often the result of extensive radio play or a massive TV slot.
These days it feels very direct. Artist to fan. I believe investing in your listeners is more important than any influencer campaign, radio play or TV show. So I’ve constantly thought: What can I do to add value to their lives? How can I help them to feel understood? How can I connect my songs to their own experiences? How can I reward them for their support? I can see my audience slowly growing and that’s more important to me than any chart position or industry win.
The Not So Good Parts
Artists tend to be quite sensitive and I’m definitely no exception. I found it difficult in the beginning to be comfortable with ad spend being put behind my videos on social media — especially when I received trolling for it. I guess my agenda as an artist is to always let things grow organically and hope for the best. But of course, the agenda of a label is to get you out there in front of as many people as possible and sell albums. There are financial targets and money that needs to be recouped. It’s becoming increasingly harder to even reach your own followers, so online ads do feel like a necessary evil these days. I initially found this tricky and pushed back multiple times, having lengthy chats with my team. As someone working at a label, I assume you don’t feel the mental effects of being the artist, putting yourself out there to millions of people. However, wires cross when you’re the artist and the label. What’s in the best interest of you personally and your mental wellbeing can be quite the opposite of what’s best for your album campaign and career.
I think a lot of us artists are desperate to be seen but also terrified of it. I’ve had to try to work through this and really seize the opportunity that I’ve been given to get my music heard. It’s become easier as time has gone on. When I was on a major label things were very much filtered down to me. It’s very common for the artist not to attend or be allowed into meetings about the campaign so people can speak freely. However, when running your own label, you have to be aware of everything, good and bad. This has definitely been hard at times. I also found direct-to-consumer (D2C) a bit of a minefield, having to try and guess how much stock to order, not wanting to be left short but also not wanting to over-order.
Touring is very tricky. I know many artists are struggling with this right now, as I don’t have the traditional major label tour support and everything is currently self-funded. Lastly, I’d say one of the most challenging things was knowing what roles we needed within the label. Whether it be a product manager, marketing, digital or just overall consulting. You can start by thinking you know what you need, but as time goes on and the campaign develops, sometimes it becomes clear you need to adapt. I’ve learnt, much like making music, that sometimes fewer people can be more, as decisions can be made quicker and communication can be more efficient. It’s also just a really difficult time to try and break as an artist; sometimes the team can be doing all they can, but you still need the stars to align.
The Takeaway
Releasing Mountain Music on Apple Tree Records has been a stressful, intense yet incredibly rewarding and empowering experience. In an industry that has so often sunk its teeth into young female artists, attempting to mold and manipulate them, it feels like I’m finally in a safe place where I can lock the doors and take a deep breath. Starting your own label is by no means a walk in the park. It requires a village. I couldn’t have done it on my own. I’m grateful to have shared all the big decisions with Vicky and had the support of a team around us. I’ve learnt to trust my gut instincts and to also question what’s actually just my own fear.
Personally, I’ve felt even more pressure to deliver compared to when I was signed elsewhere. On a big label, you know you’re one of many and could be dropped at any time. But when it’s your own, you see firsthand how hard everyone is working. It’s made me want to succeed not just for Vicky and me, but for everyone else too. From my own experience, I wouldn’t advise an artist to start a label without a strong support system around them who is willing to share the workload. Starting this label has been very different from just releasing something independently through the likes of AWAL or Platoon, partly because of the length of this particular album campaign and partly because I’ve signed as a label, not an artist.
I should also state that I’ve been in a privileged position to not rely on the advance that you get from signing to a label as an artist. I did not receive any personal income for signing as a label. It’s not something I could have financially done at the beginning of my career and I realize most new artists rely on this to sustain them for years to come, much like I did. Despite the uncertainty of everything in the industry right now, it feels comforting to know we have our little slice of home. Something I can grow over time with a person who shares my vision. It’s hard to find and I feel so lucky to have a partner to go on this journey with. I hope in time we can sign other artists and be the label I wished I’d had.
Nina Nesbitt is a Scottish singer-songwriter who has released four albums to date. The most recent of those, Mountain Music, arrived in September via her own label, Apple Tree Records.
Drew Baldridge, who earned a top 5 hit on Billboard’s Country Airplay chart with his independently-released song “She’s Somebody’s Daughter,” has partnered with BBR Music Group/BMG Nashville in releasing his new song, “Tough People,” which goes for radio adds Nov. 4 via Stoney Creek Records. Baldridge has also signed with Left | Right Management for representation. He […]
Following his 2023’s breakthrough album, Whitsitt Chapel, Jelly Roll has become a country superstar widely embraced for the former rapper’s confessional, salvation-seeking songs and his larger-than-life personality, as well as his redemption arc as a former convict.
As he began promoting and releasing songs from his follow up release, Oct. 11’s Beautifully Broken, Jelly Roll also made it very clear on social media that debuting at No. 1 on the Billboard 200 would be the realization of a dream. That dream came true this week, when the set entered atop the chart with 161,000 equivalent album units earned in the U.S. for the week ending Oct. 17, according to Luminate — the artist’s best week ever by units and the third-largest week, by units, for any country album in 2024.
The work began more than a year ago, as Jelly Roll began writing and recording songs for the new album. He worked closely with Katie Kerkhover, vp of A&R for Nashville-based BMG/BBR Music Group (which released the album in conjunction with Republic), whose own background as a musician helped inform her work with Jelly Roll. And her contributions to Beautifully Broken help earn Kerkhover the title of Billboard’s Executive of the Week.
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Here, Kerkhover discusses the making of the album from the “vision” Jelly Roll took into its creation, his sense of purpose in recording every song and the intention behind picking his duet partners from several different genres, as well as the non-stop promotion efforts that brought it over the line.
Beautifully Broken debuted at No. 1, something that Jelly Roll made clear was his goal. What decisions did you make in the making of the album that you felt would increase its chances for a No. 1 debut?
Jelly has a very strong vision for the impact he wants to make with his music. It has a purpose. Every song he writes has a purpose. Making sure his heart and the gravity of his messages was the constant that was guiding everyone was critical in making the album. Encouraging those involved, who have their fingerprints on it with him, to bring that emotion out of their own contributions was vital. Making sure the production and mixes were mirroring Jelly’s emotions. He was creating until the absolute last moments, so having trust in each other when we were counting the hours on the final touches was also extremely important. Don’t forget, he was finishing this album while he was in the middle of tour.
This album was a joint project with Republic. What was the division of duties in terms of the A&R?
Jelly started working on this album in 2023. He had already defined a solid foundation and clear direction, so when Republic joined the team, we all knew what we were aiming at. There wasn’t so much a division of duties as more of how we work together to add the most value to Jelly. What strengths do we have separately and together to elevate his vision and hit his goals.
Was there a mission statement from the moment you started recording tracks for what Jelly Roll wanted the album to be?
There wasn’t any more of a mission statement than what you hear him continuously say, “I make real music, for real people, with real problems.” When we started to go through songs in 2023, we listened to every song he had written and focused on the ones with the strongest impact. Did we feel something? One of the things I admire most about Jelly is he always comes back to the purpose and to the why. “Why am I cutting this song? What purpose is it filling on the album and in the lives of others?”
Jelly Roll duets with a number of artists, country and otherwise, on Beautifully Broken, including Halsey, Keith Urban and Wiz Khalifa. How were his duet partners chosen and how does the diversity of the artists broaden the album’s appeal?
The collaborators were chosen by who Jelly felt the song would resonate with. Who would be the best person to add their talent and continue to elevate the song? As far as the broader appeal, Jelly is a huge music lover and that’s why you see so much diversity in his collaborators on this album. I think it’s only natural that the appeal is broadened because he creates without boundaries and, ultimately, the human factor is what connects all of us. Fun fact: he also knows more about the history of songs, artists and genres than anyone I’ve met, so his well of potential collaborators runs deep.
“I’m Not Okay” tackles mental health and is a Hot 100 hit for Jelly Roll. How has that song brought him a new audience?
We all have times we struggle and are not okay. The message of this song transcends genres and resonates deeply with listeners. Jelly has the courage to share his personal struggles through candid lyrics, revealing a vulnerability that really enables him to connect with a broader audience, including those who may not have been familiar with his earlier work.
There are several different configurations of Beautifully Broken, ranging from 14 to 28 tracks. How was the sequencing for each project decided to convey a cohesive work no matter what variation fans were buying?
We selected the initial 14 as the first collection for vinyl because he was still writing. The sequencing is tied together by the overarching message that Beautifully Broken is a reflection on his experiences with mental health and addiction, and the idea that winning comes from losing. The road to atonement has no shortcuts and there will be highs and lows along the way. It all began once he selected “Winning Streak” to be the opening track of the album.
Beautifully Broken achieves the third largest week for a country album in 2024, behind Beyoncé and Post Malone. What does that mean to Stoney Creek/BBR?
Jelly’s success speaks volumes about the incredible connection he shares with his audience. His fan base is broad and deeply passionate, showing up in full force for every project. This relationship helps fuel our growth as a team, pushing us to innovate and strategically add resources that make sense. Our collaboration with Republic on this project is one example.
But the real driving force behind this achievement is Jelly himself. The sheer amount of work he poured into creating and promoting this album is nothing short of mind blowing. For two months leading up to its release, Jelly didn’t have a single free minute. Every ounce of his energy was devoted to making this album the best it could be, and the results speak for themselves. His work ethic, paired with the passion of his fans, made this project a true success.
You come from a publishing background. How did that help you approach picking songs for this album?
I’ve had a long and extensive career as a touring musician, having played violin since the age of four. Before I turned 20, I was performing hundreds of shows a year with Nashville artists like Sara Evans and Billy Currington, playing at the biggest country festivals and stadiums.
What I set out to do was take my real-life musical experience and transform it into a tool to help songwriters and artists master their craft. A great example of that is from late 2020 when I joined BMG as a publishing A&R. One of the first things I did was bring in the incredibly talented songwriter/producer Austin Niveral, just as the label was signing Jelly Roll. I immediately saw the potential for the two to collaborate, [then-BMG Nashville president] Jon Loba recognized my strengths and ultimately appointed me to lead A&R for the label side. As we know, Jelly and Austin would go on to write the massive hit “Need A Favor” from Whitsitt Chapel, and they continued their partnership with Beautifully Broken, setting the tone for the album with “Winning Streak.”
The pop duo LANY released their first four albums on a major label. But when they completed their contract, they decided to hunt for a different kind of business partner, one that would give them more control over their operations. “Autonomy is the future,” manager Rupert Lincoln told Billboard. LANY ultimately chose to work with Stem, a distribution company.
For decades, major labels demanded long-term contracts, obtaining multiple albums from the acts they signed, and made most of the money from those acts’ sales. The balance of power has shifted dramatically in the modern music industry, however, and so have artist contracts. More and more acts want distribution deals — short-term agreements where they retain ownership of their work and keep the majority of the income their music generates.
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As these have become more desirable, competition for high-performing artists seeking distribution deals has gotten fierce, according to a pitch deck Stem has sent to potential investors, which was obtained by Billboard. Stem “has lost numerous deals historically as it wasn’t able to be competitive with advances,” the deck states.
Other companies have also seen prices rise. “It is a much more competitive market” than it used to be, says Jorge Brea, founder and CEO of the distributor Symphonic. “All distros have to be well-funded to ensure they can put up money for deals.”
Historically, digital distributors didn’t help artists much with marketing or radio promotion; they were basically tech companies that made music widely available on places like iTunes and Spotify in exchange for a small percentage of sales. These low-overhead operations were a world away from an old-school major label, which had lots of manpower to promote artists around the world.
But ironically, as the distribution landscape has become sexier — “There have been more entrants,” Brea notes — many of these companies are starting to resemble labels. Increasingly, they try to differentiate themselves from rivals by offering bigger up-front payments to artists and more label-like services: assistance with digital marketing, playlist pitching to streaming services, or radio promotion.
Concerns about up-front payments and services feature prominently in Stem’s pitch deck. The company estimates that it lost out on $45.6 million dollars worth of business in 2022: $19.2 million in scenarios where Stem couldn’t meet an artist’s ideal “check size,” and $26.4 million in situations where it couldn’t compete on “check size + other services (Intn’l, radio).”
By Stem’s count, the number of lost business opportunities ballooned in 2023, tripling to $134 million. (If accurate, this number helps demonstrate how popular distribution deals have become recently.) “We’re tracking all the lost deals that we were actually in the conversation on,” says Kristin Graziani, Stem’s president.
The pitch deck zooms in on two artists in particular whom Stem lost to rivals: Aaron May, a rapper with a laid-back delivery who took an advance of $2.2 million elsewhere, according to the deck; and 6arelyhuman, an electronic act specializing in glitchy, thumping tracks who took an advance of $1 million. (A source close to May contends the number cited in the pitch deck isn’t accurate.) In both these cases, Stem couldn’t match the final check, though the presentation doesn’t say whether those artists also wanted services that the company couldn’t provide — or picked a rival distribution outfit for another reason altogether.
In July 2023, Stem announced that it had set up a $250 million credit facility from Victory Park Capital to provide artists with advances. But “some of the dynamics of our deal with Victory Park were still a little bit constraining in terms of allowing us to win the type of deals that we were seeing,” says Stem CEO Milana Rabkin-Lewis. “There are many other types of capital out there that have less restrictions,” she continues, “and those are the conversations we’re having” now.
Other companies are doing the same — Billboard reported in August that at least half a dozen independent music distributors that have been fundraising or exploring a sale. That said, investors may be wary of providing some of these businesses with additional money to help them win bidding wars over talent, according to Erik Gordon, clinical assistant professor at the University of Michigan Ross School of Business.
Stem’s adjusted EBITDA — earnings before interest, taxes, depreciation, and amortization — was -$5.2 million in 2022 and -$4 million in 2023, according to the company’s presentation; it’s projected to be -$3.8 million in 2024. In Gordon’s view, “investors are likely to take three consecutive years of EBITDA that is negative, even after management adjusts it, as a sign of problems.”
Rabkin-Lewis says that, although “the distribution business is profitable, the overall Stem company is not because we’ve invested a lot into Tone, which is a newer product.” (The adjusted EBITDA for the distribution part of Stem’s business was -$1.3 million in 2022 and $400,000 in 2023, according to the deck.) “We’ve been prioritizing gross revenue growth,” Rabkin-Lewis adds. The deck indicates that gross revenue rose by a little more than 4%, from nearly $88 million in 2023 to a projected number around $92 million in 2024.
Meanwhile, distribution deals for proven artists continue to get more expensive. “A lot of companies are throwing out cash-heavy distro deals that we have never seen before,” says Karl Fowlkes, an entertainment attorney. At Symphonic, Brea has watched some of his competitors enter into agreements he believes are “ridiculous.” “We’re aggressive when going after deals,” he adds, “but not to the point where it’s not going to make [economic] sense.”
Distributors have to be especially careful when it comes to chasing expensive deals, because the short-term nature of their contracts gives them little time to make their money back. And successful artists often decamp for a rival company, lured away by a bigger check or the promise of a more powerful services division that can propel them to even greater heights. Brent Faiyaz, who worked with Stem among other companies in the past, subsequently partnered with UnitedMasters, for example.
On October 4, Stem updated its terms of service to say that it is guaranteed a five-year license on any new music uploaded through its system. (As always, artists with more leverage can negotiate a shorter term.) This change raised eyebrows in some corners of the music industry, because the ability for artists to disentangle relatively quickly is a big part of why they choose to work with companies like Stem. “We feel like we’re finally at a point, from a services perspective, where we can demand longer licenses,” Graziani says. A five-year term is more in line with what a major-label-owned distributor like AWAL would ask for in negotiations with an artist.
This points to another lane for competition — not just check size and services offered, but license length. Independent distribution companies face an ongoing challenge: It can be hard to prevent artists from heading elsewhere without offering agreements that look more like the ones handed out in the major-label ecosystems.
“The supply of distribution is now almost infinite — you can get it anywhere,” says Emmanuel Zunz, founder of the independent label OneRPM. “In order to make money in distribution, you have to create value elsewhere. If you’re unable to create additional value, you get stuck.”
Warner Music Group announced the launch of Warner Music Africa Francophone (WMAFR) on Thursday (Oct. 24).
The new venture will “spotlight incredible talent from Francophone Africa,” co-director Yoann Chapalain said in a statement. “It aims to connect diverse sounds and regions, elevate releases for maximum success, and expand the music’s reach globally.”
The launch comes at a time when demand for French-language music is growing. “Since 2019, French-language music streams have surged by 94%” on Spotify, the streaming service noted in a blog post in September.
“All regions of the world are embracing the richness and diversity of the French-language music scene,” according to Jeremy Erlich, head of music content at Spotify. “There’s been a sharp rise in the number of French-language music listeners on Spotify.”
Warner Music Africa Francophone will be a collaboration between Warner Music Africa, Warner Music France, and Africori, a distribution company. WMG previously announced that it acquired a majority stake in Africori in 2022.
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The company was working with around 7,000 artists at the time. “African music is booming all around the world and some of our artists are right at the heart of the explosion,” Yoel Kenan, CEO of Africori, said in 2022. “Through our partnership, Warner Music has proven that it is the perfect home for Africori and our artists going forward. I’m looking forward to continuing to work with them as we break more artists on a global scale.”
WMAFR will be led by Chapalain along with Marc-André Niang. Chapalain also serves as A&R Manager at Africori, and Niang continues on as A&R director, French-speaking African repertoire at WM France.
“It’s important for us to be able to create new synergies for the development and structure of the Francophone market in Africa,” Niang said in a statement. “While the region is steeped in both culture and talent, the ecosystem faces challenges. Our team will connect creatives and help shape the environment to drive cross-cultural success.”
Simon Robson, WMG’s president of recorded music for Europe, Middle East, and Africa, likened WMAFR to 91 North, a joint venture between Warner Music Canada and Warner Music India that launched in 2023.
“There’s a strong cultural trade route between France and West Africa,” Robson added. “WM Africa Francophone will help us support the artists in that space.”
Two years after she became the first and only woman to debut at No. 1 on Billboard‘s Hot R&B/HipHop Songs as a producer this century — thanks to Nicki Minaj‘s Rick James-indebted “Super Freaky Girl” — Malibu Babie has found a new home.
On Thursday (Oct. 24), ONErpm announced that the artist/producer signed with the distribution and marketing company; “Baddie Bakery,” her new Flyana Boss-assisted single, is due Friday (Oct. 25).
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“Malibu Babie’s producer accolades speak for themselves and it’s time for the world to recognize her as an artist,” said Alex Ziabko, denior director of A&R at ONErpm, in a statement. “Malibu reminds us all to have fun from time to time. I’m thrilled to welcome such a strong, creative, forward-thinking artist to ONErpm.”
“I’m so excited to be releasing music with the ONErpm team” added Malibu Babie. “Alex & the incredible team of women he’s brought on to support me — Jenna LoMonaco, Julia McLeod, & Casey Childers, immediately understood my artistic vision and unique path as a producer/artist. I’m thrilled to bring my music to life with an innovative team who takes my mission to trailblaze as seriously as I do!”
In addition to her forthcoming new single with Flyana Boss — the hip-hop duo behind the 2023 hit “You Wish” — Malibu Babie is also prepping a new mixtape for 2025. Beginning Oct. 31, she will join Qveen Herby‘s The Alchemist tour as a supporting act. The trek will commence at The Novo in Los Angeles, visit major cities such as Toronto and New York, and conclude at The Fillmore Miami Beach in Miami on Nov. 23.
Recently, Malibu Babie has landed placements with Katy Perry and Kim Petras (“Gorgeous”), as well as official remixes of tracks from Sia and Kylie Minogue (“Dance Alone”) and Shania Twain (“Giddy Up!”). She released her debut mixtape, Malibu SZN, Vol. 1, in November 2022.
Hailing from Olympia, Wash., Malibu Babie graduated from Vanderbilt University, where she made an eleventh-hour decision during her senior year to ditch her law school aspirations and go all in on music. After six years of toiling in the industry — including a stint as a studio intern for a company called ZMG in Nashville — she finally struck gold with “Super Freaky Girl.”
Minaj’s 2022 smash debuted atop the Billboard Hot 100 chart dated Aug. 27, 2022, becoming Minaj’s first unaccompanied No. 1 hit on the chart. The “Super Freak”-sampling track also helped Minaj become the first solo female rapper to debut at No. 1 on the Hot 100 since Lauryn Hill did so with “Doo Wop (That Thing)” in 1998. The same week “Super Freaky Girl” reigned as America’s most-consumed song, Malibu Babie notched a second Hot 100 entry, this time with Megan Thee Stallion‘s “Her,” a house-inflected track from Megan’s Traumazine LP. That track, whose music video earned three nods at the 2023 MTV Video Music Awards, peaked at No. 62 on the Hot 100.
The Core Records and Capitol Music Group have signed Hannah McFarland to their joint venture; it is the first signing announced by the two entities. McFarland’s single, “Hey Highway,” out Friday (Oct. 25), will be the first official release from the new label. “Signing with The Core Records and Capitol Music Group feels like the […]