Record Labels
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RCA Records has signed BERWYN in the U.S. as the Trinidad-born, London-raised rapper looks to plant his feet in America with his debut 12-track studio effort, WHO AM I. “[It’s] amazing to have the backing of a label like RCA, which has an incredible history of working with some of the greatest artists in black […]
Halfway through 2024, it’s once again Taylor Swift’s world, and we’re all just living in it. At the midway point of the year, her Tortured Poets Department album is the biggest release of 2024 so far by a huge margin, having spent nine of the 13 weeks of the second quarter atop the Billboard 200. That helped her label, Republic Records, best the entire Warner Music Group in current market share for the year through June 27, contributing to Republic’s 15.72% mark — by far the best among individual labels.
However, Swift is far from the only factor. Republic’s market share also includes Mercury Records, Big Loud Records and Island Records (as well as indie distributor Imperial and Cash Money), and each of those labels is also on fire in the first half: Mercury’s Post Malone has collaborated with Swift, Beyoncé, Blake Shelton and Big Loud’s Morgan Wallen on big singles (the latter of which, “I Had Some Help,” spent six weeks at No. 1 on the Hot 100), while Island’s Sabrina Carpenter has dominated the singles charts of late and the same label’s Chappell Roan has emerged as one of the artist stories of the year. Each of the three labels, if broken out on their own, would have made the top 15 of the midyear current market share chart, while Island in particular logged a midyear mark (1.29%) that was more than double its share at the same point last year, and represents its highest midpoint stake since 2018.
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That surge from Republic, which is up more than 3% from the 12.42% current share it posted midway through 2023, helped boost the Universal Music Group’s industry-leading current market share up to 36.37% at the halfway mark, up from the 34.48% it had the same period last year. In turn, Sony Music Entertainment’s current share came in at 26.07%, down from 27.54% halfway through 2023; while the Warner Music Group’s 15.68% dipped from the 17.26% it enjoyed midway through last year. The indie sector, by distribution ownership, grew more than a percentage point to 21.88%, up from 20.72%. By label ownership, the indie community remained the biggest sector of the business, with a 39.12% current share and a 37.35% overall share, both of which are slightly down year over year but relatively static.
Among individual labels, beyond Republic, Interscope Geffen A&M (whose market share also includes Verve Label Group) also had a strong quarter. The label came in at 9.51% in current share, also up a large margin from the 8.08% it posted halfway through 2023, with Billie Eilish’s Hit Me Hard And Soft leading the way. Taking into account the realignment of UMG’s label structure under the Interscope Capitol Labels Group on the West Coast, within which Capitol now reports up to ICLG chief John Janick, and Republic Recording Company on the East Coast, which includes Def Jam among the additional labels that report in to Monte Lipman, ICLG’s current market share would come in at 13.54% halfway through the year, with Republic Recording Company at 16.36%.
Outside those two labels, Warner Records — which includes Warner Latin, catalog label Rhino and some share from Warner Nashville — has continued its hot streak from the first quarter, as singles by Benson Boone (“Beautiful Things”), Teddy Swims (“Lose Control”) and Zach Bryan (last year’s “I Remember Everything” with Kacey Musgraves) remain among the biggest songs of 2024. Notably, Warner’s 6.30% current share — which keeps it in third place among labels — comes even before the impact of Bryan’s latest album, The Great American Bar Scene, given that it was released after the half-year tracking period. That’s easily Warner’s best midyear mark in years and an improvement over 2023’s 5.62%, when it ranked fifth.
Coming in fourth is Atlantic, at a 5.24% current share, which is both down significantly from the 7.34% it posted halfway through 2023 and up slightly from the 5.14% current share it had in the first quarter, as Jack Harlow’s former No. 1 “Lovin On Me” remains among the top songs of the year. (Atlantic’s share includes the 300 Elektra Music Group.) Fifth place, with a 4.59% current share, belongs to RCA Records, representing a dip in share from last year’s 4.98% midyear mark but a rise in position, as it came in seventh at this point last year.
In sixth, Columbia’s current share has improved, up to 4.35% from 3.71% in Q1, as Beyoncé’s Cowboy Carter and Hozier’s No. 1 single “Too Sweet” factors in, though it’s still down from the 5.16% it held midway through last year. (Columbia’s share includes some labels from indie distributor RED.) Capitol Music Group, meanwhile — which includes Virgin Music, Motown/Quality Control, Capitol Christian, Blue Note and Astralwerks in its share — has dropped into seventh place with a 4.03% current share, down from its 6.00% 2023 mark and the 4.71% it posted in the first quarter of 2024.
A trio of Sony labels round out the top 10, though in a different order than they did in the same period of 2023. In eighth, Epic Records has capitalized on a slew of big hip-hop albums in the first half of the year from 21 Savage, Future and Metro Boomin to boost its current share to 2.78%, up significantly from the 1.82% share it held last year when it sat in 10th. Also pushing higher is Sony Latin, which came in ninth at 2.17%, up from 1.99% last year. It comes in ahead of Sony Nashville, which dropped from a 2.55% share halfway through 2023 to a 1.96% share at the midpoint of 2024.
Another big climber at the year’s midway point is Alamo, which is up to 1.78% so far this year, good for 11th and a jump from the 0.96% current share it held this time last year. (Alamo also last year launched indie distributor Santa Anna, which inked a deal with Drake’s OVO Sound label in January.) Universal’s Nashville (1.35%) and Latin (1.12%) follow in 12th and 13th, respectively, while BMG (0.93%) and Concord (0.75%) — the latter of which scored a big hit with the Pulse Music-released “Million Dollar Baby” by Tommy Richman — round out the top 15 among current market share.
In overall market share — which combines current releases (within the past 18 months) with catalog — UMG increased its lead at the top, to 38.52% over last year’s 37.98%, while Sony (27.21%) and WMG (18.22%) both dipped slightly, and the indie community by distribution ownership inched upward, to 16.05% from last year’s 15.93%.
Among the individual labels, the race is much tighter at the top in overall share, with Republic’s 10.61% beating out Interscope’s 9.88%, though both saw their share increase year over year. (The score for the UMG umbrella groups in terms of overall share: ICLG at 15.78% and Republic Recording Company at 12.45%.) Below them, Atlantic jumps to third with a 7.61% mark, leapfrogging Warner Records’ 6.74%, while the deep catalogs of Capitol (in fifth) and Columbia (in sixth) allowed their shares rise to a virtual tie at 5.90%, with Capitol edging out Columbia by five ten-thousandths of a point. RCA (5.05%), Epic (2.75%), Sony Nashville (2.02%) and UMG Nashville (1.86%) round out the top 10.
By catalog share, both UMG (39.25%) and Sony (27.60%) grew year over year, while Warner (19.07%) and the indies (14.08% by distribution ownership) both dipped slightly. Among the individual labels, Interscope takes the top slot, coming in at 10.00% even, ahead of Republic’s 8.88%, with both up slightly over their prior-year marks. Republic barely rises above Atlantic, which drops to No. 3 with an 8.41% share, while Warner Records (6.88%), Capitol Music Group (6.53%) and Columbia Records (6.42%) are closely bunched together behind, with Warner jumping past Capitol year over year. RCA comes in a solid seventh with a 5.21% share, while Epic (2.75%), Def Jam Recordings (2.25%) and Sony Nashville (2.04%) complete the top 10.
LONDON — Universal Music Group is to merge its historic Island and EMI label divisions as part of a widespread restructuring of the company’s U.K. business that will also see the launch of new Audience and Media Division to support artists and labels.
The announcement was made on Tuesday (July 9) by David Joseph, chairman and CEO Universal Music U.K. and Ireland, in an internal memo, which has been viewed by Billboard.
The reorganization of Universal Music’s U.K. operations follows changes the company made to its U.S. teams earlier this year with the formation of Interscope Capitol Labels Group and Republic Corps.
That structure is now being loosely mirrored in the United Kingdom with the creation of what Joseph called “two new powerhouse frontline label groups” — Island EMI Label Group, headed by Louis Bloom as president, and the newly formed Polydor Label Group, led by Ben Mortimer.
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Both label groups will be home to multiple labels “all with creative autonomy,” said Joseph’s memo. Each department will also contain a team dedicated to supporting artists from the wider UMG family, said the Universal U.K. boss.
In line with the restructuring, which comes into effect Oct. 1, Universal is shuffling its executive ranks.
EMI Records co-president Jo Charrington has been appointed president of a “reimagined” U.K. arm of Capitol, which will sit within the wider Polydor Label Group, as will 0207 Def Jam, led by president Alec Boateng. (Billboard understands that Boateng’s brother and co-president of 0207 Def Jam Alex Boateng is to remain with Universal and will be given a job within an international division).
EMI Records’ other co-president, Rebecca Allen, will take up the role of president of Universal’s Audience and Media Division (AMD), a newly formed U.K.-based department dedicated to serving artists and labels that will have a global remit.
Joining Allen in the Audience and Media team will be Suzy Walby (media), Kate Wyn Jones (Audience and Digital Strategy) and data and strategic branch The Square insight team, led by Jack Fryer.
In his internal staff memo, Joseph said the “industry first” AMD team “will revolutionise how we deliver for our artists” and will become Universal U.K.’s largest division.
Not mentioned in the memo is the scale or number of job losses that will result from the changes, although it does state that the consultation period for staff whose roles are potentially at risk starts today and will continue until mid-September.
In the United Kingdom, it is a legal requirement that companies must follow so-called “collective consultation” rules if it is making 20 or more employees redundant within any 90-day period. Universal U.K. declined to comment on staff redundancies.
Not impacted by the changes are Laura Monks and Tom Lewis, who will continue in their current roles of Decca co-presidents, which will remain a stand-alone label. Hannah Neaves remains sole president of Universal Music Recordings.
“As a company, we must continue to be forward-looking, innovative, and bold. Developing artists now requires more creativity and patience than ever before,” said Joseph in his internal memo.
Joseph went on to say that the restructure would “strengthen our labels’ capabilities to deepen artist and fan connections.”
“We are committed to being the number one place for artists, fans and talent,” surmised the U.K. CEO. “I have an incredible appreciation for our team given what we have achieved in the past and what I know we will achieve in the future.”
Quality Control has appointed Britney Davis as general manager. Davis will supervise the label’s daily operations alongside CEO Pierre “P” Thomas and COO Kevin “Coach K” Lee. In addition to serving as a liaison between Quality Control’s artist roster and affiliated teams, she will assist the staff, managers and artists in developing strategies and structure across all […]
Warner Records has promoted Robert Santini to senior vp of brand partnerships and ad sync, the company announced Monday (July 1). Santini assumes the role after four years as the label’s vp of brand partnerships & ad sync. Under his previous title, he spearheaded projects including Warner Records’ collaboration with Roblox and the NFL for […]
For the past few months, things seem to have only been getting better for Sabrina Carpenter. Last summer, while opening on Taylor Swift’s Eras Tour, she began going viral for the city-specific outros she would tack on to the end of her song “Nonsense,” a true fan-driven hit that reached No. 56 on the Hot 100 and No. 10 on Pop Airplay. Next came “Feather,” off the deluxe edition of her Emails I Can’t Send album, which went even further, reaching No. 21 on the Hot 100 and becoming her first-ever Pop Airplay No. 1 earlier this year.
But that was just the beginning. “Espresso,” her single she released on top of her Coachella performance in April, exploded to No. 2 on the Hot 100 and No. 1 on the Global 200, cementing her as the pop superstar of the moment, crowned accordingly with a performance (and skit appearance) on Saturday Night Live. But her latest single, “Please Please Please,” then went even further — after debuting at No. 2 on the Hot 100 and giving her the top two songs on the Global 200, “Please Please Please” then ascended to the top of both charts, giving Carpenter her first-ever Hot 100 No. 1 and the distinction of replacing herself atop the global charts.
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The momentum has been dizzying — with every level conquered, another fell right after. Or, as Island Records vp of A&R Jackie Winkler puts it, “‘Nonsense’ walked so ‘Feather’ could jog, then ‘Espresso’ ran so that ‘Please Please Please’ could start a stampede.” And the success earns Winkler, who originally signed Carpenter to Island and has worked with her ever since, the title of Billboard’s Executive of the Week.
Here, Winkler talks about the building success of each of these songs, Carpenter’s evolution as a songwriter, the way that A&R has evolved over the years — and what will come next. “I think this album is going to blow people away,” Winkler says of Carpenter’s forthcoming Short N’ Sweet, due out in August. “If you like ‘Please Please Please’ and ‘Espresso,’ just wait for what’s in store.”
This week, Sabrina Carpenter’s “Please Please Please” reached No. 1 on the Hot 100, her first-ever song to top the chart. What key decision did you make to help make that happen?
Sabrina and Jack Antonoff had known each other personally for some time, so it was a natural progression for them to eventually work together. Given the chemistry that Sabrina and Amy Allen had already built, putting the three of them together felt like the perfect musical combination to undoubtedly yield something exceptional. It’s also fun to share the success of this song with David Gray and Jenn Knoepfle at UMPG who were instrumental in connecting the dots.
“Please Please Please” also hit No. 1 on the Global 200, replacing “Espresso,” which was No. 1 last week. Why do you think these songs are resonating, and working so well, around the globe?
To put it simply, the two songs speak for themselves. The first time I heard “Please Please Please” and “Espresso,” both sounded like hit records to me. The extraordinary nuances of Sabrina’s vocal delivery and quick-witted lyrics, combined with Jack Antonoff and Julian Bunetta’s brilliant productions, all play an essential role in what makes these songs so infectious and undeniable. They are especially bold, and nobody could pull them off as fearlessly and authentically as Sabrina.
Since last year, Sabrina has been on an increasingly-ascendant run up the charts, from “Nonsense” to “Feather” to “Espresso” and “Please Please Please.” How have you worked with her to help her develop her sound in the past year to reach this level?
It really feels like all four songs came at the perfect times in her career. “Nonsense” walked so “Feather” could jog, then “Espresso” ran so that “Please Please Please” could start a stampede. At the core, the music Sabrina makes is perfectly reflective of who she is as a person, and all the quirks and character are what give her such a strong musical identity. Writing with her friends has always felt like the most effortless way to allow her to be herself, so protecting that process at all costs will remain a vital part of her ever-evolving sound.
You originally signed Sabrina to Island several years ago. How have you seen her develop as a songwriter and as an artist since then?
From day one, Sabrina’s superpower has always been knowing exactly who she is and the type of musical collaborators she’s wanted to work with. I’ve witnessed her develop into an extraordinary songwriter who has not only coined entirely new phrases, but also infiltrated popular culture around the world with her lyricism alone. One of the most rewarding parts about seeing her succeed is that none of this has happened by skipping steps or catching a lucky break. It is all owed to her remarkable talent, the music itself and the relentless detail put into every aspect of her creative campaign. [Island co-CEOs] Justin Eshak and Imran Majid are ambitious leaders who strongly encourage our artists and our Island Records staff to take risks musically and strategically, which has made this journey even more gratifying as we continue to charge forward with no limitations.
With such a string of successful singles, how does that influence your approach to her upcoming album?
I think this album is going to blow people away. If you like “Please Please Please” and “Espresso,” just wait for what’s in store. Every ounce of the album oozes with Sabrina’s personality — funny, sincere, cheeky and intelligent, but above all, it’s honest. There isn’t a single song on the album that one could mistake for another artist, which is by far my favorite part.
How has A&R changed over the course of your career, and how has technology changed the role?
Technology continues to be a valuable tool for us to perform our jobs more efficiently. Since the start of my career, our access to information, data and even resources used to break artists have multiplied; however, my approach to signings, choosing singles and pairing creatives has never wavered from following my gut instinct. What will remain constant in A&R is the importance of maintaining genuine relationships, remaining selective and staying true to finding artists with longevity, a point of view and an unparalleled vision.
Over the past decade, as U.S. recorded music revenue grew from $7 billion in 2014 to $17 billion in 2023, the combined market share of music sales and streaming controlled by the three major labels went from 64.9% in 2014 to 64.3% in 2023, Billboard estimates. That modest decline, which counts only music that the majors control rather than just distribute, came even as the companies bought market share with acquisitions of independent labels like 300 Entertainment, 12Tone and Alamo, plus buyouts of joint ventures. And it came about partly because about 5% of the global recorded music market — about $1.5 billion annually, according to a Billboard estimate — is now controlled by digital distribution services that mostly serve DIY and independent artists such as CD Baby, DistroKid and TuneCore, which I founded and ran until 2012. And this part of the market is projected to continue to grow.
This comes as consumers have access to more independent music than ever on the same online services, and even the same playlists, as major label releases. But one of the responses from the major music companies seems to be, if you can’t beat them, push to change the rules to take a portion of their royalties.
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Last year, the three major labels made separate deals with Spotify, as well as with Deezer, on new licensing terms for recordings, to which all other rightsholders on those platforms have to agree. The new agreements changed the policy on when a stream of a recording can generate a royalty, and in some cases the amount earned. In addition, this year, under the rules laid out by the Music Modernization Act (MMA), some portion of the “accrued but unpaid” mechanical “black box” royalties currently held by the Mechanical Licensing Collective (MLC) become eligible to be paid out to member publishers, some of which have executives on the MLC board, based on their market share on the platform and at the time the royalties were earned. Although both policies apply to the entire market, they will redistribute revenue disproportionately to large labels and publishers, especially the majors, at the expense of smaller companies and DIY and independent creators.
Deezer now applies a royalty multiplier to tracks by artists that have at least 1,000 streams per month from 500 unique listeners, a policy that generally benefits major label artists, who tend to be more popular. Under Spotify’s new deal terms, royalties that previously would have been paid out on recordings with fewer than 1,000 streams over the course of the prior 12 months are now essentially reallocated to recordings that streamed more than 1,000 times over that same time period. And since the majors control fewer recordings that stream less than 1,000 times compared to the vast number controlled by DIY creators and independent labels, those royalties will overall go disproportionately to them.
In 2023, there were 106 million recordings that received between one and 1,000 streams (others generated no streams at all), which together accounted for a total of 13.68 billion streams globally, according to Luminate. Since each Spotify stream is worth a global average of between $0.0038 and $0.0042, that suggests that, although it’s hard to measure the impact of individual services, about $33 million a year could flow from smaller artists to more popular ones that are disproportionately signed to major labels.
To understand what these new policies mean in practice, consider the indie band Head of Femur. Over the last two decades, the band released several albums that include a total of 58 tracks. Under Spotify’s new model, the service will only pay out royalties for the band’s recordings that streamed more than 1,000 times in the prior 12 months, no matter how much the recordings streamed in total. In other words, a band with 58 tracks that stream 999 times each, for a total of 57,942 streams, will make nothing — while a band with a single song that streams 1,000 times will get paid. The royalties that would have gone to those 57,942 streams will go to bigger acts — many of them on bigger labels.
The model for streaming mechanical royalties changed in a way that will benefit the same players. Before the October 2018 passage of the Music Modernization Act and the January 2021 creation of the Mechanical Licensing Collective, Spotify and other streaming services didn’t get the mechanical licenses they needed, and as a result faced multiple copyright infringement lawsuits, with potentially ruinous statutory damages. In addition, services weren’t paying out all, or in some cases any, royalties for some of the songs they had licensed — to the point that the MLC reported that it received $397.7 million in adjusted unpaid “historical” mechanical royalties that had been earned but not paid out. The Music Modernization Act was supposed to address these issues by making it easier to license mechanical rights and accurately pay publishers and songwriters.
In order to do this, the Music Modernization Act made three significant changes to the relevant parts of U.S. copyright law. First, it created a “blanket” compulsory license for digital services for every song ever written, to protect the services from liability for copyright infringement. Second, it shielded the services from liability for infringement before the law took effect. Third, it mandated the creation of a database to be administered by a designated “mechanical licensing collective,” with the goal of accounting to and paying publishers and songwriters billions of dollars in mechanical royalties generated by trillions of streams — promptly, accurately and transparently. The collective was also charged with paying out the $397.7 million in “historical” mechanical royalties earned but not paid out before 2021.
By enacting the MMA, Congress made mechanical licensing easier and protected digital services from liability for infringement. Although the law calls for penalties if digital services do not pay the MLC, it includes no specific regulations about the MLC paying rightsholders or offering rightsholders any remedies if it fails to do so. (The U.S. Copyright Office oversees the MLC and every five years reviews whether it should continue administering the compulsory license.) In fact, the Music Modernization Act states that its regulation of the mechanical licensing collective “shall supersede and preempt any State law (including common law) concerning escheatment or abandoned property, or any analogous provision, that might otherwise apply.”
That means that any unpaid mechanical royalties are subject solely to the Music Modernization Act, which says that after a certain amount of time they become eligible to be distributed according to “relative market share” of copyright owners “as reflected in reports of usage.” Essentially, the money is divided by market share on a given platform during a given time, which means that it will disproportionately go to larger publishers. So far, the MLC has yet to distribute any money based on market share. But as of June 2024, the MLC is sitting on $634 million in “black box” royalties that it has taken in but not distributed, according to the organization; it also received $397.7 million in undistributed historical royalties, of which it is sitting on $285.9 million. Eventually, all of that money — $919.9 million — will be eligible to be distributed by market share on a given platform and time period.
Over the next decade, predictions suggest that consumers will continue to turn their attention to a wider selection of DIY and independent artists. Under these policies, however, some of the revenue generated by their work will be disproportionately paid to the major labels and publishers instead of to the artists and songwriters who earned them.
Jeff Price is the founder and CEO of Word Collections. He previously co-founded and was GM of spinART Records and founded and was CEO of TuneCore and Audiam.
Following its acquisition of Exile Music last November, HYBE is expanding its global entertainment empire in Latin America, launching new offices in Mexico City, Miami and Los Angeles and introducing new properties to its Latin-focused operation.
The move includes the introduction of a new label, Docemil Music, and the rebranding of Exile Music as Zarpazo. Another Exile division, Exile podcasts, will be rebranded as Ajá Podcasts.
“Latin music is one of the fastest-growing genres in the global market,” says Jonghyun “JH” Kah, CEO of HYBE Latin America. “Additionally, there are very nimble and smart independent local music companies that aim to change the status quo by developing new acts and really sticking with them.”
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By the same token, adds Kah, the Latin market is unique in the longevity enjoyed by its artists, and older songs have a long shelf life. “We aim to rediscover the soul of Latin sound and make it a global phenomenon by focusing on talent that resonates with different generations and has a defining impact on the music world, not just within the Latin sphere,” he says.
The company’s executive team includes Jeremy Norkin, who co-founded Exile Music and is now serving as HYBE Latin America’s COO. Elsewhere, Docemil will be headquartered in Mexico City and led by GM Fernando Grediaga, who brings over 23 years of industry experience, including stints at EMI Music and Universal Music, among others. Zarpazo, formerly Exile Music, is based in Miami and will be led by Grediaga and Santiago Duque, who formerly worked at Rimas Entertainment and Sony Music. Zarpazo’s roster includes emerging artists Magna and Chicocurlyhead.
HYBE Latin America also includes a boutique touring agency led by Norkin with a diverse roster that includes Quevedo, Cypress Hill, Nach, KHEA and Marc Seguí.
In expanding in Latin America, HYBE is looking to tap into a burgeoning market with no genre borders, says Kah.
“We see a lot of diversity in Latin music, and we are not bound to any particular genre. As K-pop can encompass many different genres of music, I believe Latin music can be more diverse in many ways,” he says. “As music transcends boundaries, our targets cannot be confined to geographical borders. Mexico is the most populous Spanish-speaking country in the world, which is why we are headquartered in CDMX. Nonetheless, the U.S. Hispanic market is just as big or perhaps even bigger than Mexico. We’re also keeping in mind that Latin artists come from all over the world, including the Americas and Europe.”
HYBE, of course, is known for developing mega K-pop stars like BTS via a sophisticated artist identification and development infrastructure. “HYBE always seeks out the best talent, allows them to discover their authentic voice, and connects them with their fans. K-pop’s training system is competitive since we’re trying our best to train well-rounded professional artists,” says Kah. “In our new endeavors, we will scout for talent and provide them with the tools they need to improve. Our goal is to ensure that our artists discover their own unique voices and establish stronger relationships with their fans than ever before.”
That said, Kah adds that HYBE Latin America “won’t just be replicating our practices from Korea, or from the U.S.” Rather, he says, “our system will try to seek the best of both worlds. The Korean approach is highly exclusive, and the initial costs are extremely high. In Latin America, we want to revamp our model, we want to plant seeds and see how they grow. It took K-pop more than a decade to get to where it is. I hope that in 10 years we can confidently say we made the same unique success here.”
Belfast singer/songwriter Jordan Adetunji, who scored a viral hit earlier this year with the single “Kehlani,” signed to 300 Entertainment in North America and Warner Records UK, the companies tell Billboard. “Jordan is a generational talent whose music transcends genres,” said Kevin Liles, CEO of 300 Entertainment, in a statement. “300 is built on recognizing […]
Fly Me to the Moon,” “This Land Is Your Land,” “We Shall Overcome,” “Are You Lonesome Tonight,” “Space Oddity” — the list reads like the top titles in a major music company’s catalog.
But it’s actually a list of just a few of the copyrights in the catalog of the quiet independent publishing giant TRO Essex Music Group. Founded in 1949 by Howie Richmond, a former press agent for the day’s biggest stars like Frank Sinatra, Glenn Miller and Gene Krupa who went on to become a pioneering music publisher (and co-founder of the Songwriters Hall of Fame), today’s TRO Essex started under the name Cromwell Inc. and quickly grew into a collection of 22 publishing companies under The Richmond Organization (TRO) umbrella. It became a titan of indie publishing, particularly in the 1950s, ’60s and ’70s, finding success in jazz with Bill Evans and Alec Wilder, folk with Pete Seeger, Lead Belly and Woody Guthrie, and rock with Pink Floyd, Black Sabbath, Marc Bolan of T. Rex, The Who and Pete Townshend.
At 75, TRO Essex is still going strong, managing its formidable catalog of publishing and recorded-music interests through its international offices in Hamburg, Germany; London; Paris; and elsewhere. After a few decades of taking on more of a catalog management role, TRO Essex is returning to frontline signings, using proceeds from past evergreens to fund new development.
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“For our 75th anniversary, we started to think about ways we could celebrate our past and move into our next chapter,” says Kathryn “Kathy” Ostien, COO of global music operations. “So we restructured and brought in a whole new A&R team. In 2023, we signed 26 new writers to the publishing catalog. We then launched a new record label called Shamus Records at the end of the year to manage their masters.”
This includes betting on albums arriving this year by newcomers of all genres, including alt-pop talent Sam Louis, indie pop artist Casii Stephan and jazz producer Matt Stevens.
The company is also rolling out the latest album installment in its series Evergreens Reimagined, under Shamus, enlisting its new talent to cover older hits. “It’s an exciting time,” Ostien says. “We are building fast on top of our already incredible base, but we are ready for the future, too.”
Kathryn Ostien
Sabrina Asch Photography
You look after such a rich back catalog, which you administer in-house. What is your strongest income stream?
I feel like it changes every five years, mostly because of the technology that we’ve seen. Obviously, it used to be CDs, tapes, LPs. Mechanicals were everything. Performance has always been strong, too. Overall, I think mechanicals have always remained very steady. Our most iconic catalogs continue to do well with mechanicals as well as synchronization.
When I first came to TRO Essex [in 2000], the synch market wasn’t much of anything. We were outsourcing it. Now it’s a huge amount of what we are doing — talking to the studios in Los Angeles, New York. Any type of synch is important for us — commercials, films, TV shows. The Hollywood strikes did not help last year.
Has synchronization risen now that the strikes are over?
We have definitely seen some nice pickup in the past few months.
Do certain genres in your catalog fare better for synch than others? I’ve heard rock is particularly of interest for synch.
I don’t know that I see it that way. There was a period in the early 2000s where rock was really, really desirable for commercials. Every ad agency wanted a Pete Townshend song. It ebbs and flows and all comes from the studios — sometimes they want hard rock, sometimes they want a standard. It depends. During COVID, we did really well with synch, ironically because we have a lot of wartime peace songs, hopeful songs. Everybody wanted that. It did well with commercials and productions during that time.
Your catalog includes some of America’s most essential protest anthems, and the last five years or so have seen the rise of several social movements. Do you look after those songs with particular care?
We do have a lot of protest songs. It’s interesting, especially with the political climate that we’ve had in the past several years. One of the things we take a lot of pride in is protecting those songs and making sure that they’re being used in the way that they were originally written — you always want to stay true to that. You want to keep songs like “This Land Is Your Land” within the time and [context] it was important. We also represent “We Shall Overcome,” which is very iconic. That song in particular is curated the most heavily because it’s so special to [the Civil Rights] movement.
How has the popularity of sampling, interpolating and more influenced your catalog in the last few decades?
Sampling really started taking off with hip-hop and rap in the late ’90s, and then it really took off in the mid-2000s. It has been great for our back catalog, though, to have new copyrights established on top of songs. A great example is how Joe Cocker’s “Woman to Woman” became 2Pac’s “California Love.” We work with a lot of hip-hop and rap managers to use some of these iconic songs and bring them to life.
The catalog market has been red hot for the last five or so years. Does TRO Essex ever try to acquire more catalogs?
We don’t do acquisitions — we’ve never needed to. We want to grow our company by following our own history, which was always based on discovering new, incredible songs that don’t have a home and seeing what we can do with them.
Was there a period where you completely stopped signing frontline acts? Or was it just a slowdown up until the founding of Shamus Records?
I don’t know if I would say it fully stopped, but [it slowed in] the ’80s to ’90s. This is a large catalog to manage independently. We’re trying now to restart that signing process.
Is there a particular identity you’re trying to build with the Shamus signees?
It’s still so new, and our team here is still so new. Mostly, we’re just trying to do what [founder] Howie [Richmond] did — find songs and acts that we like and see what we can do with them. I don’t know if we really have a brand in mind with our roster, but we were thinking that we wanted to bring some newer sounds to the catalog.
What is one of the most important things you can offer to an act looking to sign to Shamus Records/TRO Essex?
It’s an interesting time right now because metadata is everything. We feel that metadata management takes away from the creativity that writers and artists might have if they didn’t have to sit there and go through all these different portals to try to get their money. That’s something we excel at.
Having accurate and complete metadata — like the names of all the songwriters, the performing rights organizations and publishers they use — is important to keep track of as a publishing administrator. Do you think it is more important than ever to manage metadata closely to ensure you and your talent are paid?
Yes, exactly. We had to bring in new staff just to handle the metadata management. This is true for all publishers. It has been an incredible thing, what happened with [the Music Modernization Act] and the creation of the [Mechanical Licensing Collective]. The MLC has built this portal that so easily allows you to go match and claim royalties for your songs. It has really made it so much easier. There was nothing there before. It has made it much more universal and cleaner.
Doing administration in-house with the caliber of the catalog TRO Essex holds must be a lot of work. How do you keep up with it as an independent player?
It is one of the hard things about remaining independent because as the revenue increases, the administration costs increase as well, if you’re doing it correctly.
I’m sure anyone would be interested in buying or administering this catalog for TRO Essex. Why was it important to make sure that you are always independent, always doing your own administration despite the challenges that come with it?
I’m not the right one to speak about why we never sold, but the motivation was just never there for us. We’re proud of what we do. We’re strong. We’re financially very healthy. We don’t think anybody else knows these copyrights as well as us, and we’re good at what we do.
There are several emerging revenue streams in music, particularly in social media licensing. TikTok has made headlines this year for its strained negotiations with Universal Music Group. Are these sources of income good moneymakers for your catalog?
I haven’t seen that [TikTok payments] make a huge [boost] to us financially, but every way you can get a catalog out there is important, especially with a vintage catalog. It’s a new way to introduce it. We just need to be paid appropriately. We follow the guidance of the [National Music Publishers’ Association].
Another emerging area of the music business is artificial intelligence, which could provide risks and benefits to catalog holders. Some are even using AI to market catalogs. Do you have any estates interested in leaning into AI for this purpose?
There’s so much more to understand about AI. At this point, I don’t believe it affects us as greatly as it would probably some of the current recording artists, mostly because of the copying of the voices and likenesses. For us, our copyrights are much more secure bedrocks. It’ll be interesting to see how AI develops and what that true impact is on copyright. We haven’t had anyone really concerned from an estate or writer perspective. As I said earlier, though, every five years it seems there’s a sea change. We’re watching it.
Given that you have such a strong back catalog, it would be easy to say, “That’s it.” You’re just going to keep doing the administration and not push forward into signing new acts. Frontline is so risky. Why was it important to continue to sign new talent?
It’s a lot of work managing a catalog like this, and it presents different, evolving challenges around the world, so for a long time that’s what we did. However, looking at the 75th anniversary, we decided we wanted to breathe new life into it. We wanted to create these new covers, explore a new sound and see what we could do to reinvigorate it. While we were at it, we just thought, “OK, let’s see what else we can sign.” It’s an exciting time to celebrate this incredible history of the past 75 years and then look at the next 75 years with so much hope and excitement.
This story originally appeared in the June 22, 2024, issue of Billboard.