Record Labels
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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.
After scoring a Hot 100 No. 1 single with Kendrick Lamar for “Not Like Us” last month, Mustard partners with BMG for his forthcoming studio album, Faith of a Mustard Seed.
“I’m happy to join forces with BMG, a company known for its dedication to nurturing artistic independence, integrity, and innovation,” Mustard tells Billboard. “Together, we’ll continue to push the boundaries of creativity and deliver groundbreaking music that resonates with audiences worldwide.”
On Friday (June 21), Mustard kicked off the rollout to his fourth studio by releasing a first single, “Parking Lot,” featuring Travis Scott. Slated to drop July 26, Faith of a Mustard Seed follows Mustard’s 2019 release Perfect 10, which featured Hot 100 charting hits “Pure Water,” “100 Bands” and “Ballin.” Upon its release, the effort debuted at No. 8 on the Billboard 200 and included an all-star lineup with Migos, Young Thug, Gunna, Roddy Ricch, Future, A$AP Rocky, Playboi Carti, and more.
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“Mustard’s approach, coupled with a proven track record of chart-topping hits, delivers unparalleled musical experiences to audiences worldwide,” says Dan Gill, BMG’s executive vp of recorded music, West Coast. “We look forward to supporting and working alongside him as we continue to elevate his artistry and the impact of his music.”
Adds Tim Reid, BMG senior vp of repertoire & marketing: “Mustard’s anthems have consistently orchestrated the soundtrack to the Culture. Partnering with Mustard and the 10 Summers Team on his next movement is an exciting opportunity for the BMG Team to help propel his brand and turn the ordinary into extraordinary.”
Mustard recently featured at Lamar’s Juneteenth Concert celebration, which honored the West Coast. During his set, he brought out Tyler, The Creator, Steve Lacy, Ty Dolla $ign, Roddy Ricch, Blxst, Dom Kennedy, and 310 Babii. He also joined Lamar for his performance of “Not Like Us,” where the Compton rapper performed the song five times.
Rimas Entertainment has announced new corporate appointments, adding two key executives to its leadership team, Billboard has learned.
Rodrigo Prichard has been named general manager of Rimas Entertainment, and will begin July 1, reporting directly to the company’s chief operating officer, Jorge Bracero. Kristen Quintero-Garriga has been named vice president of brand partnerships under RIT.MO, Rimas’ new division that acts as a creative consultancy and sales force.
“I am thrilled to welcome Rodrigo Prichard and Kristen Quintero-Garriga to our corporate leadership team,” Bracero said in a press statement. “Their deep knowledge and experience in the music industry and in creating strategic alliances are invaluable to us at this time of growth and evolution. I am confident that their leadership will be crucial in further driving Rimas’ success in the future.”
Prichard, who was vp of legal and business affairs at Universal Music Latin before joining Rimas, will oversee all departments of the record labels within the Rimas conglomerate (Rimas Music, Sonar, Nain Music) in Puerto Rico, the United States and all other markets.
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Prior to joining Rimas, Quintero-Garriga was market manager at Puma Energy LATAM, Burger King and Advice Global. In her new role, she will lead brand partnerships, offering her expertise to Rimas, Habibi, Rimas Sports, Fundación Rimas and Rimas Nation, among others.
“Rimas is what all other brands aspire to be right now: agile, smart and passionate,” Prichard expressed. “I am honored to join this family of visionary professionals and look forward to contributing to the brand’s success.”
Quintero-Garriga added: “The speed and efficiency with which each business line under Rimas Entertainment has developed have created great opportunities to forge strategic alliances with local and international brands, which we will capitalize on. We are focused on creating unparalleled collaborations with brands and our world-class artists, athletes and events that we are bringing to Puerto Rico.”
In May, Taylor Swift notched her 14th No. 1 album on the Billboard 200 with the help of 14 different vinyl versions of The Tortured Poets Department, which sold an astounding 859,000 units in the album’s debut week. She has now stayed atop the Billboard 200 for eight consecutive weeks by rolling out additional variants, proving the pop megastar has mastered the art of giving superfans what they want.
Swift isn’t alone in upping her variant game. Luminate looked at the number of physical variants — defined as distinct UPCs per project — in the top 10 of the Billboard 200 albums chart each week since the beginning of 2019 and found that the amount has trended upwards since that year, when the average number of physical variants in the top 10 was 3.3 per week, according to data shared with Billboard. While that number fell to 2.8 per week in 2020 due to the COVID-19 pandemic and its effect on release schedules and supply chains — physical album sales also fell, from 73.5 million units in 2019 to 68 million units in 2020 due to a sharp drop in CD sales — the average number of physical variants in the top 10 has increased sharply in the post-pandemic years.
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Making albums available in different colors, formats and packages has proven to be a shrewd move for prominent artists aiming for the top of the chart. In 2021, Adele’s 30 debuted atop the Billboard 200 with a Target-exclusive CD, vinyl exclusives at Amazon and Walmart, and three items sold through her official webstore: a cassette and two deluxe boxed sets.
Like she did with The Tortured Poets Department, Swift has frequently topped the Billboard 200 with the help of physical variants. Her 2022 album Midnights had the biggest week for an album in nearly seven years. And in 2023, her 1989 (Taylor’s Version) had the biggest week in nearly a decade with the help of 15 collectible physical formats.
Also in 2023, Travis Scott’s Utopia reached No. 1 thanks to 84 variants, as the album was made available in three different track lists and multiple CD and LP variants including zine and merchandise bundles. The same year, Fall Out Boy’s So Much (for) Stardust had a whopping 116 physical variants, according to Luminate, although it reached only No. 6 on Billboard 200.
CD variants have helped numerous K-pop artists achieve high Billboard 200 debuts. K-pop fans have long clamored for collectibles from their favorite artists, and in South Korea, labels employ lottery-style marketing strategies and package CDs with merchandise — even though many fans don’t own a CD player. In March, With YOU-th by TWICE debuted atop the Billboard 200 with the help of 14 CD variants. “To the fans, it’s not just an issue of buying music,” Bernie Cho, the head of DFSB Kollective, a Korean music export agency, told Billboard in 2020. “You’re showing your loyalty.”
But physical variants aren’t the exclusive domain of albums popular enough to land in the top 10. “For certain records, multiple variants can support a chart position, but it’s not the main driver for Concord,” says Joe Dent, executive vp of operations at Concord Label Group.
“Fans want to support their favorite artists of course, but oftentimes they want to support a particular shop or webstore that they love as well,” Dent continues. “We strive to meet those fans wherever they are.” For example, Concord’s Rounder Records made vinyl variants of Sierra Ferrell’s Trail of Flowers available as exclusives to indie record stores, Magnolia Record Club and Spotify Fans First, while several other vinyl variants sold through her website and the Rounder Records webstore, says Dent.
AWAL, home to such indie artists as Laufey and JVKE, has a similar mindset. “The way we look at physical never starts with the commercial opportunity,” says CEO Lonny Olinick. “It starts with how the artist wants to express themselves and what the fans are likely to love. And what it really comes down to is how an artist can deepen the connection they have with their fans.”
Variants can also be a marketing strategy for catalog albums that aren’t likely to achieve a high chart position. “We use the variants as an opportunity to excite the market,” says Rell Lafargue, president/COO at Reservoir Music. “For example, if we have something that has been out of print for decades, we might want to do a color variant to reintroduce it into the marketplace as a new, distinct and fun physical product.” Reservoir’s Tommy Boy Records took this approach for the upcoming reissue of Afrika Bambaataa & Soulsonic Force’s 1986 album Planet Rock by opting for a limited edition pressing with a three-color splatter.
Each additional variant adds to the complexity of releasing an album. That challenge was exacerbated by COVID-related supply chain issues, leading to longer lead times and searches for alternate manufacturers. But while logistical challenges remain, says Lafargue, they aren’t as persistent. “While it can be challenging to manage multiple variants or exclusives instead of a singular version, it is worth the extra effort to expose the record to different retailers and get it into the hands of even more fans,” he says.
The proliferation of physical variants doesn’t come as a surprise. Streaming has made music both plentiful and easily accessible — almost to a fault. Some artists are now releasing physical albums a week or two before making them available on streaming platforms. So while chart position remains a big motivator for many, there’s also something to be said for the way physical variants can foster a feeling of closeness between artists and fans.
Artists “look to cut through the volume of digital music being released,” says Olinick. “Bringing that connection into the real world, whether through live shows or physical products, is hugely impactful.”
Now that it’s officially summer, we can start calling 2024 the summer of BRAT. Charli XCX’s sixth studio album, released June 7 on Atlantic Records, has taken the internet, and dance floors, by storm, spawning memes, jokes and posts galore, all colored the fluorescent “brat green” on social media — and that’s before you even get to the music. The record itself is a triumph of dance-pop that has not only ignited Charli’s legions of fans but brought her the biggest debut week of her career, having moved 82,000 equivalent album units in the United States to debut at No. 3 on the Billboard 200.
It’s a testament to the groundswell of support that Charli has cultivated, and that her management team, creative and design teams, and label Atlantic Records have helped nurture. The album arrived with 14 different vinyl variants and a number of exclusive editions, helping to sell 45,000 copies (the biggest sales week of Charli’s career) while becoming nearly inescapable in the cultural discourse. It also proved that Charli is a true innovator who’s much more than the “Boom Clap” and “I Love It” hits of a decade ago, or even the songwriting superstar she’s been for other artists throughout her career. All that hype and success has helped Atlantic’s vp of marketing Marisa Aron earn the title of Billboard’s Executive of the Week.
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Here, Aron discusses the marketing plan and rollout of BRAT, how Charli helped build hype for the album more than a year ago and the groundswell of support — including a gigantic record-store listening party at more than 170 stores across the country three days before the album’s release — that led into BRAT’s debut. But just as the solstice has only passed this week, there’s much more to come: as Aron puts it, “BRAT Summer has just begun.”
This week, Charli XCX’s BRAT debuted at No. 3 on the Billboard 200 with 82,000 equivalent album units, her biggest first week ever. What key decision did you make to help make that happen?
The success of BRAT is a testament to Charli’s incredible artistry and vision. She not only created the most culturally important pop and dance album of the year but also delivered a masterclass in artistic direction and marketing strategy. Charli has an amazing team, and together with the unwavering support from our team at Atlantic we all worked to execute her vision to the fullest. Our key decision? To trust her implicitly. We fully embraced her vision, her plan, her ideas and helped her bring BRAT to life.
What was the overall marketing plan for the release?
The marketing plan for BRAT is all about amplifying Charli’s authentic voice and connecting directly with her fans. We knew we had an incredibly important album on our hands, one that was innovative, bold, fun, loud and would create a lot of conversation. We wanted to put together a campaign that captured that energy and put BRAT into the cultural zeitgeist. The plan doesn’t end with the album release; stay tuned, there is a lot more to come.
The album also sold 45,000 copies, her largest sales week ever, including 14 different vinyl variants. What was your guys’ approach to physical for this album, and how did it pay off?
The physical release plan was so much fun to put together. It was a collaborative effort between Charli; [creative director] Imogene; design team SPECIAL OFFER, Inc.; Charli’s management team; and our team at Atlantic. From the start, we wanted to create a series of limited-edition drops that would keep fans excited throughout the campaign. It was important that each variant felt unique and special both in design and in the rollout.
We started the campaign ahead of the album and artwork announcement with the limited edition 360_brat vinyl, released at first only to Charli’s followers on her private Instagram. This moment helped set the tone for the rest of the campaign. When the official album pre-order went live, we partnered with major retailers like Target and Urban Outfitters, as well as local record stores, Blood Records and more to create exclusive variants that gave fans more options to choose from.
On Tuesday, June 4th, we unleashed BRAT into the world a little early. Thousands of Charli’s fans went to their local record stores for a first listen, three days before the official release. It was a massive undertaking — Atlantic’s biggest listening event campaign ever — with 179 stores across the country.
BRAT’s physical release wasn’t just about sales figures; it was about creating a deeper connection with fans. From the unique packaging that you have to rip into to get to the music, to the events and limited-edition drops, it is a reminder that in the digital age, the physical album can still be a powerful, personal and meaningful experience.
This album almost immediately became a cultural touchstone, and was a huge talking point online, with fans making memes of the cover art and the color palette seemingly everywhere. What was your approach to the digital marketplace for the project?
The BRAT campaign started in February when Charli threw a legendary Boiler Room in Brooklyn with A. G. Cook, George Daniel, Finn Keane and Doss, drawing a record-breaking 40,000 RSVPs — the most in the history of Boiler Room. There were surprise appearances from Addison Rae and Julia Fox. This was the first time people got to hear a few tracks from the forthcoming album, turning it into one of the year’s most viral moments and really setting the tone for what was to come.
The approach was about creating really memorable moments both online and in real life, from surprise DJ sets, exclusive Club Angel events, single reworks with Addison Rae, Robyn, Yung Lean, Skream and Benga to one of the most talked about music videos of the year (“360”) and so much more. We carefully planned out the timing of it all.
The “brat green” that we all have filling our timelines right now goes back to Charli’s brilliant vision for BRAT artwork. Once the artwork was revealed fans started to recreate it themselves, which inspired us to launch the brat generator. From there, it really started to take on a life of its own. We continued to incorporate brat green throughout all the marketing. One of the most fun pre-album moments in the campaign happened in Brooklyn a few days before “360” was released. Terry [from the digital team] had an amazing idea of painting a huge wall “brat green” during a livestream, and thus the “brat wall” was born.
It’s been 12 years since Charli first hit the Hot 100 top 10 with her feature on Icona Pop’s “I Love It,” and 10 years since Charli’s first solo Hot 100 top 10 with “Boom Clap.” Her career feels bigger now than it’s ever been. How did you energize those day one fans and pull in new ones for the run-up to this release?
Speaking from my own experience, it honestly is just really fun to be a Charli fan. For example, a full year before the album campaign even started Charli brilliantly started a new private Instagram account, @360_brat. What goes down on that account is strictly confidential, so I won’t give too much away. But Charli’s early vision and authenticity has made BRAT an undeniable phenomenon which really resonated with her early fans, and then throughout the campaign brought new fans in.
Steve Aoki‘s longstanding Dim Mak label has a new president, with Lorne Padman — the imprint’s vp for the last decade — assuming the position. In the role, the Los Angeles-based Padman will oversee strategy for the imprint, which was founded by Aoki in 1996 while he was a student at UC Santa Barbara.
The current Dim Mak roster includes producers like Henry Fong, Chyl, Ookay, Deorro, Cash Cash, Cheyenne Giles, Sikdope, 4B and more, with upcoming releases from Ray Ray, Mila Falls, Nostalgix and Aoki and Afrojack’s collaborative Afroki project, among others.
“Throughout Lorne’s ten years as vice president, he has been an integral part of the label’s success story,” Aoki tells Billboard. “His ability to cultivate strong relationships within the industry has been critical in elevating the reputation of Dim Mak’s brand. I’m confident that Lorne’s leadership and hard work will continue to steer the label toward further growth and excellence.”
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Padman tells Billboard that for him, the label’s health and vibrancy is demonstrated by the fact that artists from across the roster collaborate often, without being pushed to by management. “For me,” he says, “that’s an indication we must be doing something right, if we’re creating an ecosystem of talent that all want to work with each other and get along socially and musically.”
These artists make many different styles of electronic music, with Dim Mak focused less on cultivating a specific sound and more on releasing compelling, relevant output. The idea, Padman says, is to offer a “complementary roster of different sounds, from really fresh underground and cool and new. But also, a bit like a financial portfolio, you can’t only be taking moonshots, you also need to have some established things that will guard our reputation and can also financially open the possibility of being able to take swings at emerging artists.”
Taking swings is built into Dim Mak’s business model, with the label’s New Noise imprint having released music from a totally new artist every two weeks for the last decade. This structure offers artists with what is often their first official release, providing them with the Dim Mak visibility boost while helping the label identify emerging sounds and trends. Altogether, Padman says, it’s “an avenue to market for development artists that are potentially too small for some other other labels.”
Padman brings decades of experience to the role, having DJ’d in Australia for 18 years. (“With only six Saturday off,” he says.) He was part of the development teams for the first releases by Avicii and The Chainsmokers and also has experience in management, radio, television, production and songwriting.
This history gives him the ability to speak the same language as artists and offer feedback in technical terms. But, he says, “I only ever feel like I have 49% of the vote” regarding the creative decisions any artist or member of the team — which includes staff across A&R, video, marketing, social media and art direction — should make.
“I want the artists to feel good and empowered, and I definitely don’t want to feel like Dim Mak is a distributor and that we’re not adding any value,” he says. “But at the same time, I don’t want them to feel like they’re being told what to be, because they have to choose that themselves.”
Padman’s previous label experience includes a run as national promotions and label manager at Australia’s Vicious Recordings, where he was working when he met Aoki. “At that time I felt Vicious was quite successful,” Padman says, “then Steve said something to the effect of, ‘But no one’s wearing a Vicious t-shirt.’ That stuck in my head. People will wear Dim Mak shirts and get Dim Mak tattoos, but no one’s wearing Sony or Warner or Universal or Republic shirts. There are labels and lifestyle labels. I always have to keep cognizant of the fact that Dim Mak is a lifestyle label.”
Padman also has a close working relationship with the dance/electronic categories at the Grammys, having co-authored proposals including the one that introduced the Dance Pop category to last year’s awards.
“I’ve always felt that it’s about reputation more than anything really,” he says of his and Dim Mak’s position in the wider industry ecosystem. “I’ve always felt like that if I can live my life through the four principles [of coaching expert Dan Sullivan] of showing up on time, doing what I say I’ll do, finishing what I started and saying please and thank you, then I’m going to be referable.”
The three major music companies are weighing a lawsuit against AI startups Suno and Udio for allegedly training on copyrighted sound recordings, according to multiple sources.
The potential lawsuit, which would include Universal Music Group, Warner Music Group and Sony Music, would target a pair of companies that have quickly become two of the most important players in the emerging field of generative AI music. While many of its competitors focus on generating either music or lyrics or vocals, Suno and Udio both allow users to generate all three in the click of a button. Two sources said the lawsuit could come as soon as next week. Reps for the three majors, as well as Suno and Udio, did not respond to requests for comment.
Music companies, including UMG, have already filed a lawsuit against Anthropic, another major AI firm, over the use of copyrighted materials to train models. But that case dealt only with lyrics, which in many ways are legally similar to written subject matter. The new suit would deal with music and sound itself.
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Just a few months from its launch, Udio has already produced what could be considered an AI-generated hit song with “BBL Drizzy,” a parody track created by comedian King Willonius and popularized via a remix by super producer Metro Boomin. Later, the song reached new heights when it was sampled in Sexyy Red and Drake‘s song “U My Everything,” becoming the first major example of sampling an AI-generated song.
Suno has also achieved early success since its launch in December 2023. In May, the company announced via a blog post that it had raised a total of $125 million in funding from a group of notable investors, including Lightspeed Venture Partners and Nat Friedman and Daniel Gross.
Both companies, however, have drawn criticism from many members of the music business who believe that the models train on vast swathes of copyrighted material, including hit songs, without consent, compensation or credit to rights holders. Representatives for Suno and Udio have previously declined to comment on whether or not they train on protected copyrights, with Udio’s co-founders telling Billboard they simply train on “good music.”
In a recent Rolling Stone story about Suno, investor Antonio Rodriguez admitted that Suno does not have licenses for whatever music it has trained on, but he said that was not a concern to him, adding that this lack of such licenses is “the risk we had to underwrite when we invested in the company, because we’re the fat wallet that will get sued right behind these guys… Honestly, if we had deals with labels when this company got started, I probably wouldn’t have invested in it. I think that they needed to make this product without the constraints.”
In a series of articles for Music Business Worldwide, founder of AI safety non-profit Fairly Trained, Ed Newton-Rex, found that he was able to generate music from Suno and Udio that “bears a striking resemblance to copyrighted music. This is true across melody, chords, style and lyrics,” he wrote. Both companies, however, bar users from prompting the models to copy artists’ styles by typing out sentiments like “a rock song in the style of Radiohead” or from using specific artists’ voices.
The case, if it is filed, would hinge on whether the use of unlicensed materials to train AI models amounts to copyright infringement — something of an existential question for the booming sector, since depriving AI models of new inputs could limit their abilities. Content owners in many sectors, including book authors, comedians and visual artists, have all filed similar lawsuits over training.
Many AI companies argue that such training is protected by copyright’s fair use doctrine — an important rule that allows people to reuse protected works without breaking the law. Though fair use has historically allowed for things like news reporting and parody, AI firms say it applies equally to the “intermediate” use of millions of works to build a machine that spits out entirely new creations. That argument will likely be the central question in any lawsuit over AI training.
Some AI companies have taken what is often called a more “ethical” approach to AI training by working directly with companies and rights holders to license their copyrights or form official partnerships instead.
So far, the majors have embraced partnering with AI companies in this way. Already, UMG and WMG have worked with YouTube for its AI voice experiment DreamTrack; Sony has partnered with Vermillio on a remix project for The Orb and David Gilmour; WMG has worked with Edith Piaf’s estate to recreate her voice using AI for an upcoming biopic; UMG launched an AI music incubator with YouTube Music; and most recently, UMG has teamed up with SoundLabs to let their artists create their own AI voice models for personal use in the studio.