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Pete Ganbarg is stepping aside as Atlantic Records’ president of A&R, a role he has held since 2018, to launch Pure Tone Records, a joint venture with the label. The first artist signed to Pure Tone Records is platinum Canadian singer/songwriter Forest Blakk, whom Ganbarg originally signed to Atlantic.
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Ganbarg, who has worked at Atlantic for almost 16 years, will continue to A&R several acts on the Atlantic Music Group roster, including twenty one pilots, Shinedown, Gayle, Halestorm, and others.
“The launch of Pure Tone Records as a standalone label is an exciting moment for me,” Ganbarg said in a statement. “It’s the best of both worlds – a golden opportunity to run my own shop, while at the same time having the backing of the outstanding Atlantic team who I’ve worked with so closely over the past 15-plus years.”
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“For the past 16 years, Pete has brilliantly led our A&R mission – discovering, signing, and championing a genre-crossing array of hit artists, while also boosting our theatrical presence with a string of award-winning cast albums,” Atlantic Music Group Chairman & CEO Julie Greenwald and Atlantic Records Chairman & CEO Craig Kallman said in a statement. “At the same time, he’s mentored and built a fantastic A&R team who are expert at nurturing baby acts and superstars alike. The formation of Pure Tone is an important event for Pete and Atlantic, as he brings his decades of experience, his impeccable taste, and great ears to steering his own ship, and we’re thrilled to be his partners on this exciting next phase of his musical journey.”
If the name Pure Tone sounds familiar, Ganbarg has been using the moniker for nearly two decades. He formed Pure Tone Music prior to joining Atlantic as an A&R consultancy, whose clients included Kelly Clarkson, Chaka Khan, Santana, Aaron Neville, Donna Summer, and others. He also operates a pair of publishing joint ventures with WMG’s Warner Chappell Music under that name. Its writers have achieved multiple gold and platinum certifications, including the 2024 Grammy-winning record of the year, Miley Cyrus’ “Flowers.”
“I’m looking forward to making Pure Tone [Records] a home for exceptional, original talent, and at the same time, I’m very happy to continue to work with my amazing Atlantic artist roster,” Ganbarg continued. “I want to thank Julie and Craig for their tremendous support over the years, and for having the faith to join me in this new adventure.”
The New York-based Ganbarg joined Atlantic in 2008 as executive vp of A&R. Through his tenure, he signed or shepherded recordings by twenty one pilots, Halestorm, Jason Mraz, Christina Perri, Melanie Martinez, Skillet, Brett Eldredge, Matchbox Twenty & Rob Thomas, among others.
He also led Atlantic’s tremendous success with Broadway cast albums, including co-signing and A&R’ing the Diamond-certified original Broadway cast recording of Hamilton. He won Grammy Awards as a producer of the original Broadway cast recordings of Dear Evan Hansen and Jagged Little Pill, and more recently oversaw the Broadway cast recordings for this season’s Tony-nominated shows, Suffs and The Notebook. He also worked on the soundtrack for The Greatest Showman and Daisy Jones & The Six.
Ganbarg began his A&R career in 1989 at SBK Records. In 1997, while at Arista Records, he conceived and A&R’d Santana’s 30x platinum worldwide, nine-time Grammy-winning Supernatural.
There is no word on Ganbarg’s successor as president of A&R.
Atlantic Records has hired veteran executive Luis “Lu” Mota as evp of A&R, the label announced on Tuesday (May 7). Mota, who’ll work out of Atlantic’s NYC headquarters and report to co-president of Black Music Lanre Gaba, arrives from Columbia Records where since 2018 he was instrumental in the signing and developing of hip-hop stars […]
The anniversaries are piling up on Curb | Word Entertainment chairman Mike Curb.
This year is the 60th anniversary of Curb Records’ founding. April 29 marked 30 years since Belmont University announced its highest-profile program was being renamed the Mike Curb College of Entertainment & Music Business. And the school just wrapped the 50th-anniversary campaign that celebrated the department’s founding. All those milestones come as Curb approaches his 80th birthday on Christmas Eve.
“I like everything except the last statistic,” he deadpans near the start of a three-hour interview.
The conversation acknowledges the landmarks, but it comes, more importantly, as Curb’s latest investment wraps some of his deepest passions — education, music preservation and legacy — in a structure likely to enhance the relationship between Belmont and Music Row. Belmont announced April 9 that the Curb Foundation made a $58 million donation that will seed a multipurpose Curb College building on Music Circle South, wedged between the BMG offices and the historic Columbia Studios.
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Neither Curb nor Belmont president Greg Jones could specify the breakdown of the $58 million — both called it “complicated” — but the figure encompasses the value of the land, which Curb donated; future rent; and cash. It also includes an expansion of the Buddy Lee Attractions building that’s adjacent to Columbia, while the school attempts to raise an additional $40 million for the project, which will encourage interplay between Belmont students and working music professionals. A 150-capacity performance space will provide an ideal concert-audio learning facility and offer label showcase options. Songwriting rooms will serve the college and, perhaps, some independent writers. And a coffee shop is expected to lure lunchtime visits from nearby businesses, setting up the possibility for students that a springboard for their careers could be just a handshake away.
The building is in the works at a time when large chunks of Music Row have been overtaken by non-music developers. Curb owns 12 properties on the Row — including RCA Studio B, Ocean Way and the former Masterfonics building — and he’s doggedly determined to maintain the character of the neighborhood, where he has control. That’s particularly true on Music Circle South, a block with numerous studios that have yielded hits by Johnny Cash, Bob Dylan, George Strait, Tom T. Hall and Dan + Shay — just for starters — through the decades.
“We made it impossible for the developers to get to it,” Curb says. “Even the WNAH radio building is just the way it is. Even the buildings that we’re using for Curb Records or for Word Records. Those are staying exactly the way they are. So we’ve got it pretty locked.”
Curb established his label as an 18-year-old college student at Cal State Northridge who was too young to sign the startup papers without a co-signer. He made a deal with Capitol, wrote a Honda commercial and landed a bundle of songs on movie soundtracks, including the 1968 Clint Eastwood picture Kelly’s Heroes. Curb became the president of MGM in his 20s, working with The Osmonds, Lou Rawls, Sammy Davis Jr. and Hank Williams Jr., and by the end of the ’70s, he was California lieutenant governor, serving alongside Ronald Reagan.
Post-government, he extended the Curb label’s independent run by partnering with the majors in the careers of Williams, The Judds, T.G. Sheppard, Lyle Lovett and Debby Boone, among others.
“Back then, you could walk up and down Hollywood Boulevard or Sunset Boulevard, there were hundreds of independents,” he remembers. “Now they’re all owned by the three majors. That’s one of the big issues now, you know: The deep catalog of our industry is owned and controlled by three majors.”
Curb arrived in Nashville in the early 1990s, earning multiplatinum sales from Tim McGraw and LeAnn Rimes along with hits by Sawyer Brown, Hal Ketchum, Jo Dee Messina and, in the 2000s, Rodney Atkins. McGraw and Rimes had public spats involving their Curb deals, and Curb ended up in litigation with Big Machine Label Group over McGraw, who ultimately moved on. Despite that battle, Curb is on good terms with BMLG president/CEO Scott Borchetta, who has partnered with him in auto racing.
“I consider Mike a genius, I consider him a friend, I consider him misunderstood by a lot of people,” Borchetta says. “The guy’s a walking encyclopedia.”
Curb’s ability to maintain relationships, even amid sharp disagreements, is a skill he perfected during his political career. His relationship with Belmont, for example, continues despite his previous opposition to the university’s firing of a lesbian coach. (The school ultimately amended its policies.) In 1978, Curb helped defeat a California proposition that would have banned gay teachers from schools, convincing conservative icon Reagan to join the battle. Currently, he continues to speak highly of Sen. Marsha Blackburn (R-Tenn.), who agreed to a meeting with his gay employees, though they were unable to change her position on key issues. Writing people off, he reasons, is a poor long-term strategy.
“What I always tried to do was not criticize the people who disagreed with me, but tried to bring them together,” he says. “As I learned from Ronald Reagan, you just need 51%.”
Curb has certainly won over Belmont’s Jones. He suggested doing something with the Music Circle South property to benefit the music business program shortly after Jones became university president in 2021. The school already had an ideal location at the Southern edge of Music Row. With the new building, it will be in the heart of the district.
“We weren’t just thinking of the present and then making incremental changes,” says Jones. “We wanted the next 50 years of music business to be really transformational.”
It’s a goal that Curb shares. His label’s 60th anniversary will be celebrated June 6 with a CMA Fest show at Nashville’s Ascend Amphitheater featuring Atkins, Sawyer Brown, Dylan Scott, Hannah Ellis, Kelsey Hart and Lee Brice, among others. Curb is excited over the prospects of Brice’s new single — “Drinkin’ Buddies,” featuring Nate Smith and Hailey Whitters — which debuts at No. 26 on the Country Airplay chart dated May 11 (see page 4). But he’s just as enthusiastic about Brice’s collaboration with Christian band for King & Country on “Checking In,” which could — like Curb’s efforts for Belmont and for marriage equality — make a lasting mark. The anniversaries are important, but the future still beckons.
“We’re impacting the culture of Nashville, of country music — maybe pop music, the culture of the nation,” he says with youthful enthusiasm. “That’s what’s so exciting about what we do.”
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Universal Music Group’s three-month hiatus from TikTok ended this week after the companies reached a new, multi-faceted licensing agreement. On Thursday, UMG executives explained why it was worth the wait.
The bottom line: UMG believes its new licensing deal with TikTok is an improvement over the deal that expired at the end of January. UMG has “substantially improved the total value we’ll derive from this relationship,” CFO Boyd Muir said. Michael Nash, executive vp/chief digital officer, said the new TikTok deal “definitely deliver[s] a fair level of value relative to other short form social platform partners,” which includes Instagram Reels, YouTube Shorts and Snap.
In Thursday’s earnings call and CEO Lucian Grainge’s internal memo obtained by Billboard the same day, Grainge, Muir and Nash mentioned numerous components of the new deal that can be broken into two camps: revenue and non-revenue features and arrangements.
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As for revenue, there will be more of it under the new deal — although none of the executives shared specific deal points such as advertising revenue sharing rates. Nash said that “revenue under this new deal does markedly improve over our last deal.” The previous deal amounted to about 1% of UMG’s annual revenues, which works out to about $120 million euros based on 2023 revenue. That’s not much for a platform that commands an average of 58 minutes per day in the U.S., according to eMarketer — almost as much as Netflix and more than YouTube.
But UMG is getting more value out of TikTok in forms other than royalties. Many of those non-revenue components typically cost money to labels: e-commerce tools, marketing and promotion campaigns and ad credits. Other aspects of the deal have value that’s hard to pin down: data, artist insights, intelligence and new programs and new collaboration opportunities.
One interesting aspect of the new deal is what Nash called “content management and attribution.” When TikTok users post videos with sped-up and slowed-down recordings, attribution for the UMG recording is credited “not [to] some infringing third party, but the artists,” said Nash. “And that content is better connected with their official presence on the platform.”
As Grainge outlined in an internal memo to staff on Thursday, the deal also met the two non-revenue criteria: protection against the harmful effects of AI and prioritizing online safety for both TikTok users and UMG’s artists.
TikTok made “a number of commitments” that respect UMG artists’ works and rights of publicity and supports UMG’s principles on training AI models without consent from rights holders. UMG wants to protect its artists against deepfakes such as “Heart on My Sleeve” by Ghostwriter, which used AI-generated soundalikes of Drake and Kendrick Lamar (both UMG artists). The new deal ensures such fake content will be removed, both Grainge and Nash said.
Nash also described these efforts to combat infringing content as “elevated requirements” that detect and avoid infringing content,” including leaks, unauthorized remixes and unauthorized AI versions. The deal also contains requirements for improved filtering and stream manipulation detection.
In addition, TikTok agreed to improve online safety and attempt to mitigate the harmful effects of social media, including hate speech, bullying, responsible use of AI, and addressing infringing content and algorithmic manipulation, Grainge wrote in his memo.
Social media income might not amount to much today, but it “is increasingly important income to artists, songwriters, labels and publishers,” said Grainge during Thursday’s earnings call, “which is why we’ve pushed so hard and we will continue to push to protect and to develop it.”
A diss-track battle between two of the world’s biggest hip-hop stars has led to cryptic allegations that Drake directed his heavyweight record label to yank a hit featuring Kendrick Lamar from the airwaves. But would such a move be possible?
Probably not, say legal experts who study broadcast rights and the music business. “As a general law, broadcast stations have a lot of discretion over what they put on the air — almost unlimited discretion,” says Charles Naftalin, a Washington, D.C., attorney for Holland & Knight who specializes in telecommunications law. “A station is virtually free to pick and choose what it wants.”
Lamar’s new song “euphoria,” which he released April 30, alleges Drake and Republic had attempted to “try cease and desist on the ‘Like That’ record” — a reference to the recent Future–Metro Boomin hit containing a Lamar verse that attacks last year’s Drake-J. Cole track “First Person Shooter,” and helped spark the recent back-and-forth between the two rappers. Then a screenshot of an alleged email appeared on social media purporting to be from a Republic business-affairs executive declaring “we are not granting radio rights” for “Like That.” (Reps for Republic and Universal Music Group, the label’s parent company, did not respond to requests for comment, and the screenshot could not be verified.)
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Hypothetically, if Lamar’s lyrical allegation were true, and the Republic exec’s email were legitimate, how could a label, even the home of Taylor Swift, Morgan Wallen, The Weeknd and Post Malone, which has the industry’s largest market share, pull off such a move? One conceivable explanation stems from the fact that “Like That” is an unusual business collaboration — it’s a joint release from competing major labels, Universal-owned Republic and Sony-owned Epic. The former is Metro Boomin’s label; the latter is Future’s label. (Adding confusion to the affair: Lamar records for Interscope, also owned by UMG, so he is, in a very broad sense, Drake’s labelmate.)
Because Republic had a hand in releasing “Like That,” it is conceivable — though extremely unlikely — that the company could demand that radio stations stop playing its own song. “I don’t readily see a legal reason to request takedown from radio solely based on certain lyrics being in the song,” says Matt Buser, an attorney who represents top artists and music companies. “However, there could be a justified legal reason for takedown based on the promotional grant of rights and understanding between the two collaborating labels.”
Like Buser, Larry Kenswil, a retired top business and legal affairs executive for UMG, has no idea what is in the contractual agreement between Republic and Epic for “Like That.” (A rep for Sony, Epic’s parent company, also did not respond to a request for comment.) But he’s certain that Republic has no right to demand a radio takedown. If Lamar’s “euphoria” lyric about a cease-and-desist is true, Kenswil says, “The artist [Drake] complained to the label [Republic] and the label felt like they had to do something to satisfy the artist. But, of course, we probably don’t have the full story.”
He adds: “That happens all the time. Artists tell their lawyers: ‘Send a cease-and-desist.’ The lawyer says, ‘Uh, I don’t think they’re doing anything wrong.’ ‘Send a cease-and-desist or I’ll fire you.’ And they send the cease-and-desist — and don’t follow up.’” Evidence on behalf of Kenswil’s theory: “Like That” not only came out, but radio played the track, it debuted at No. 1 on the Hot 100 and remained there for three weeks. And as of this writing, “Like That” is No. 21 on the all-genre Radio Songs chart.
Helped by paid music subscriptions and a strong performance from its music publishing division, Universal Music Group generated revenue of 2.59 billion euros ($2.8 billion) in the first quarter of 2024, a 5.8% increase (7.9% at constant currency) over the prior-year quarter, the company announced Thursday (May 2).
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Notably, UMG’s margins improved from a year earlier. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) improved 13.2% to 591 million euros ($640 million). As a percent of revenue, adjusted EBITDA margin was 22.8%, up 1.5 percentage points from 21.3% from the first quarter of 2023.
CFO Boyd Muir attributed the margin improvement to revenue growth and a change in product mix — namely, less physical sales — but during Thursday’s earnings call he cautioned “not to read too much into any one quarter” and urged investors to look at trends over longer periods.
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The quarterly earnings release arrived a day after UMG announced a new licensing deal with TikTok. Analysts probed for insights into the economics of the agreement and possible impacts to UMG’s financial statements. Executives declined to provide details about the deal but insisted it provides fair value relative to other short-form video platforms.
Michael Nash, UMG’s executive vp/chief digital officer, said the new TikTok deal is “a substantial improvement” from the previous one and the revenue “does markedly improve for our last deal.” Some of the deal’s value is difficult to quantify, however. Nash added the new agreement contains “aspects of economic value” — such as ad credits, data and marketing programs — that won’t show up in future financial statements.
Each of the company’s divisions — recorded music, music publishing and merchandise — showed improvements in the first quarter. “This broad-based growth continues to underpin our confidence about the longer-term health of our business,” said Muir.
Subscription services were a main driving force in UMG’s quarter. Recorded-music subscription revenue grew 10.7% to 1.12 billion euros ($1.2 billion) and accounted for 43.3% of total company revenue, up from 41.4% in the fourth quarter of 2023. Recent price increases by Spotify, Apple Music and Amazon Music weren’t the only — or the primary — factor. “Subscriber growth is the biggest driver of the year-over-year growth rates we see at UMG,” said Muir.
Total streaming revenue grew at a slower rate, however, gaining 8.9% to 343 million euros ($371 million). Speaking about ad-supported streaming, Muir said he is “encouraged” by improvements but “cautious” about growth “until we see a consistent broad-based improvement across all partners and across all geographies and probably over a more consistent, longer-term timeframe.”
Total recorded-music revenues grew just 3.4% to 1.99 billion euros ($2.15 billion). Top sellers in the quarter came from Taylor Swift, Noah Kahan, Morgan Wallen, Ariana Grande and Olivia Rodrigo. Physical revenue in the recorded-music segment dropped 18.5% to 255 million euros ($276 million). (Taylor Swift’s The Tortured Poets Society, which sold 859,000 vinyl copies in its first week of release, will impact UMG’s second quarter results.) Muir explained the decrease in physical sales stemmed from particular strong physical sales in Japan in the prior-year quarter. Licensing and other revenue fell 1.8% to 222 million euros ($240 million).
Music publishing revenue jumped 16.7% to 496 million euros ($537 million) thanks to digital revenue’s 22.9% increase to 284 million euros ($307 million). Performance revenue’s 26.7% increase to 114 million euros ($123 million) more than compensated for synch revenue’s decline of 10.1% to 62 million euros ($67 million)
Merchandising revenue grew 6.5% (7.5% at constant currency) to 114 million euros ($123 million). Touring merchandise sales increased while direct-to-consumer sales and retail sales declined.
The company remains on track to realize 75 million euros ($80 million) in cost savings in 2024, said Muir. In February, the company announced a plan to save $270 million annually through organization redesign and layoffs. As part of the redesign, UMG created label operations on the coasts under the leadership of two top executives. On the East Coast, Republic Corps is led by Republic Records co-founder Monte Lipman. On the West Coast, Interscope Capital Labels Group is helmed by John Janick, previously the chairman/CEO of Interscope Geffen A&M.
Universal Music Group chairman/CEO Lucian Grainge penned a memo to staff, obtained by Billboard, about the music company’s new licensing agreement with TikTok that ended a three-month standoff between the two entities, saying the deal ended with “a decidedly positive outcome,” with TikTok agreeing “to key changes in several critical areas.”
The announcement of the new deal, which came after a high-profile dispute between the world’s largest music company and one of the current premier social media platforms in the world that first erupted in late January, was announced early this morning (May 2). The agreement will see UMG’s millions of compositions and songs, both from its recorded divisions and its publishing company, return to the platform “in due course.” The feud has been one of the biggest talking points in the music business for the better part of this year, with artists and songwriters caught in the middle of the corporate standoff and looking for alternate ways to promote and market their music beyond the parameters of TikTok.
In his memo today, Grainge broke down some of the particulars of the new agreement, saying that UMG was able to get TikTok to address its major concerns. “This agreement marks another significant step we’ve taken to guide the industry’s evolution towards a future where human artistry must be respected, artists and songwriters are treated fairly, and their fans are provided with platforms that better prioritize safety and integrity,” Grainge wrote.
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During the dispute, many in the industry were split about the issue and its effects on artists and songwriters, particularly those without much leverage or who were trying to build a following. Many music companies and organizations came out in support of UMG, saying that its fight for better remuneration and protections in an AI age was an important one for the industry as a whole, and dozens of artists also signed an open letter stressing the importance of protections against AI infringement and other issues. At the same time, many artists and songwriters — both developing artists that relied on TikTok to build a following, and some of the bigger names in the music business — decried the ban as having a negative effect on the industry, and some of the biggest artists in the world, including several with UMG connections, found ways around the ban and were able to continue to benefit from their music being on the app while the dispute dragged on.
Grainge acknowledged that friction in his memo today. “As an organization committed to breaking new ground, driving the industry forward, and protecting artists and songwriters from the negative effects of disruptive technology, we expect and even embrace the inevitable conflicts that will result from fulfilling our commitments,” he wrote. “But ultimately, the point of engaging in such conflicts is to find higher common ground from which progress can be made.”
As part of the agreement, Grainge referred back to the open letter that UMG penned in January when negotiations first collapsed, wherein the company outlined three issues it could not come to terms with TikTok on: fair compensation for artists, protection from AI, and safety for its artists. On the compensation issue, Grainge says the new deal improves compensation for artists and songwriters and that the “total value” from the partnership “will be more closely aligned with other platforms in the social music category,” referencing the amount of advertising money that social companies bring in even for content they host for free. He also wrote that TikTok will be working to improve its content identification moderation, and “implement tools and processes to help address provenance and attribution issues, helping artists and songwriters to more effectively monetize their work.”
On the AI issue, Grainge wrote that the platform “addressed the primary concern we expressed in our open letter that AI generated content would ‘massively dilute the royalty pool for human artists,’” and committed to respecting artists’ right of publicity to own their voices and to support training AI models on licensed content, rather than without artists’ or rights owners’ consent. That means the ability to take down “fake artist” AI content uploaded by third parties, among other protections.
In terms of safety for users and artists on the platform, Grainge wrote that the platform “agreed to take steps to address our concerns around platform integrity and the negative impact of social media on its users.” Some of those steps he outlined included “policies and tools to prevent and remediate hate speech and bullying,” as well as addressing deepfakes, infringing content and “algorithmic manipulation” on TikTok.
“I want to express my deep gratitude to all of UMG’s artists and songwriters who, over the last few months, have had to endure having their music removed from TikTok during the dispute,” Grainge ended on. “We appreciate how difficult this may have been for some of them and we are so grateful for their willingness to pursue the path we took. I have no doubt that their advocacy — both publicly and behind the scenes — will positively influence the future of the industry for all artists.”
Read Grainge’s full memo below.
Dear Colleagues:
I’m very pleased to share the good news that our dispute with TikTok has ended with a decidedly positive outcome: they have agreed to key changes in several critical areas (including artificial intelligence, platform safety, remuneration) and we will once again license our music to them.
This agreement marks another significant step we’ve taken to guide the industry’s evolution towards a future where human artistry must be respected, artists and songwriters are treated fairly, and their fans are provided with platforms that better prioritize safety and integrity.
I want to express how grateful we are for the outpouring of support from so many corners of the global music community over the last several months. Artist rights organizations, independent labels, music publishers, music advocacy groups and of course so many individual artists and songwriters were outspoken in their support, recognizing the importance of what we were seeking to achieve. United in purpose, they strengthened our resolve to fight for the result we have achieved: a deal that will benefit not only UMG artists and songwriters but the entire music ecosystem.
As an organization committed to breaking new ground, driving the industry forward, and protecting artists and songwriters from the negative effects of disruptive technology, we expect and even embrace the inevitable conflicts that will result from fulfilling our commitments. But ultimately, the point of engaging in such conflicts is to find higher common ground from which progress can be made. I am enormously proud of what our teams and our artists have been able to achieve with TikTok in finding that common ground on which we will build a foundation for a brighter future.
Three months ago, on January 30, we issued an open letter to the artist and songwriter community that stated plainly that any new deal with TikTok would have to address three critical issues, including:
Protecting artists and songwriters from the harmful effects of AI, and dilution of royalties by a flood of AI content;
Improving the compensation paid to artists and songwriters; and
Prioritizing online safety for both TikTok’s users and our artists.
To convey to you the essence of what we’ve accomplished, I’ll highlight the gains we’ve achieved on all three issues within the context of why these issues have been so important for UMG and all of us as a community.
I. Protecting Human Artists from the Harmful Effects of AI
TikTok has now addressed the primary concern we expressed in our open letter that AI generated content would “massively dilute the royalty pool for human artists.” Further, they have made a number of commitments regarding AI that demonstrate respect for our artists’ and songwriters’ works and “rights of publicity,” as well as support of UMG’s principles on AI, including on training without consent.
AI technology, when used responsibly, offers artists enormous untapped potential, but when used irresponsibly, threatens to cause them deep harm. UMG has been leading the industry in addressing AI’s potentially harmful effects while embracing its opportunities. Our Responsible AI initiative, which was launched last year, puts the protection of artists and the advancement of their interests at the very core of how we think about AI. The goals of that initiative are:
·protecting human artists from being economically disadvantaged by AI;
·guarding against the use of AI-generated deepfakes; and
·requiring transparency in how AI companies train their models.
Our new agreement with TikTok will protect the integrity and value of human artistry and ensure that “fake artist” AI content uploaded by third parties that misappropriates the identities of our artists and infringes upon their right of publicity can be removed. This new deal will extend artist protections even further and promote a better environment for authentic artist/fan engagement.
The deal is only the most recent example of how we are advancing our AI initiative. Over the last year, with artists, as always, at the forefront of our strategy, we developed relationships with a wide array of leading tech companies and entrepreneurs and have been collaborating with a growing number of them on various market-led opportunities and approaches for the responsible use of AI.
II. Improving Compensation for Artists and Songwriters
Under the new agreement, artist and songwriter compensation will be greater than under our prior TikTok deal, and the total value UMG’s artists and songwriters garner from this partnership will be more closely aligned with other platforms in the social music category. Further, TikTok will implement tools and processes to help address provenance and attribution issues, helping artists and songwriters to more effectively monetize their work.
As technology evolves and allows fans to enjoy and consume music in new ways and from new sources, the health and vitality of the music industry requires that artists and songwriters be fairly compensated from the revenue generated by those new sources. Social media is a critical category for advancement of this objective.
In 2017, as the growth of social media was transforming culture, UMG and Facebook entered into the first-ever deal to monetize what had yet to be monetized—the use of music on social platforms. Since that first Facebook deal, the continued growth of social media and its free-to-consumer music engagement has been remarkable.
In fact, the revenue streams from this social music engagement generate tens of billions of dollars in advertising revenue for digital platforms. (And that consumer engagement also greatly benefits platforms in another way—it enables them to acquire customers for their other business ventures, such as eCommerce.) Given the vast sums that music generates for these platforms, any claim that the “free promotion” they provide would ever be sufficient and fair compensation for the use of that music would be absurd.
Revenue streams from several categories that are “free to the consumer” today (such as ad-supported streaming, synch and neighboring rights) account for more than 30% of all revenue for the entire global recorded music industry—almost double what it was a decade ago. For some artists, that can translate into anywhere from 20% to 40% of their income from recordings.
With the commercial significance of this sector in mind, during the last few months, we’ve accelerated engagement with music on other monetized social platforms including Snapchat, Instagram and YouTube Shorts. And, in a recent agreement with Spotify—which will make available a range of new features that were previously found only on social media platforms—we’ve even broadened the very definition of the social music category. In short, the income from social media is increasingly important income to artists, songwriters, labels and publishers, which is why we have pushed hard—and will continue to push hard—to protect and develop it.
III. Providing Online Safety for TikTok’s Users and Artists
Under our new deal, TikTok have agreed to take steps to address our concerns around platform integrity and the negative impact of social media on its users.
The harmful consequences of unmonitored social media have been highly publicized of late. It is a critical part of our mission to work toward promoting the safety and integrity of environments for our artists and their fans.
Some of the concerns on our agenda with TikTok will include safeguards such as policies and tools to prevent and remediate hate speech and bullying. Some of the platform integrity measures include important steps to help address deep-fakes, infringing and unauthorized content and algorithmic manipulation.
I want to close by saying something more about the unprecedented support we received from the music community, especially those individual artists and songwriters who raised their voices in various forums. Of special note are those who signed the recent Artist Rights Alliance open letter which called on tech platforms to employ AI in a responsible manner and not at the expense of recording artists and songwriters. Their widespread support underscored the importance of striking AI protections. In particular, I want to express my deep gratitude to all of UMG’s artists and songwriters who, over the last few months, have had to endure having their music removed from TikTok during the dispute. We appreciate how difficult this may have been for some of them and we are so grateful for their willingness to pursue the path we took. I have no doubt that their advocacy—both publicly and behind the scenes—will positively influence the future of the industry for all artists.
Thank you to all who helped make this possible. This is yet another example of what the music community can accomplish when we work together.
Lucian
Fonovisa-Disa, Universal Music Group‘s regional Mexican label, has appointed Ana Martinez to U.S. GM. Based in Los Angeles, Martinez, a 19-year music industry veteran, will report directly to Antonio Silva, MD of Fonovisa-Disa for the United States and Mexico.
“The legacy that Fonovisa has historically created, mainly across Mexican music, has been the inspiration and reference for entire generations, and will continue to build long into the future,” Martinez said in a statement. “With the current moment in Latin music, it is exciting for me to join a company and team of this nature, to herald a new era for this historic label, where our music continues to elevate, leaving its mark on history and culture, not only across Latin music, but also globally.”
Martinez previously spearheaded strategy and relations as part of Amazon Music’s global Latin team, where she carried out global campaigns for the likes of Bad Bunny, Karol G and Shakira, as well as multi-platform Amazon livestreams, including Maluma‘s concert from Medellín in 2022, ”Medallo En El Mapa.” Prior to Amazon, she spent seven years at Universal Music México, joining the company as label manager of Anglo repertoire before landing the role of marketing director.
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“I am very excited about the integration of Ana Martínez to the team, her experience across different fields of the industry complements our business vision and strategy for the Fonovisa-Disa roster,” added Silva. “I fully trust that her ability to foster success across projects will further strengthen our vision of generating global hits for Mexican music in the future.”
Martinez’s appointment comes just months after Alfredo Delgadillo was appointed as president/CEO of Universal Music México. Of Martinez’s return to Universal Music Group, Delgadillo said: “Ana is always connected and thinking ahead of the market and this, together with her extensive experience across the Latin music industry from independent labels, booking and production of concerts, artist management, her time in specialized magazines and most recently in her position at Amazon Music, will further nourish our ecosystem and help Fonovisa-Disa to maintain its position as the leader of Mexican music in the world.”
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After five years of success as an artist at EMPIRE, Babyface Ray looks to take the next step and evolve into an executive. Today (April 26), Ray announces the partnership between his label, Wavy Gang, and EMPIRE, allowing him to sign and develop talent.
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Ray’s first two signings are Samuel Shabazz and Rally.
“I appreciate the partnership with EMPIRE. We have been partners for the last couple of years, and I’m excited for the next chapter with them and my label Wavy Gang Entertainment,” Ray tells Billboard. “I appreciate the team over there. Ghazi, Nima, Tina, Ari and everyone who has had an impact on my career. It’s time to embark on this chapter.”
Ghazi Shami, CEO and founder of EMPIRE expressed excitement about teaming up again with Ray and watching him leap forward to become an industry executive. “Me and Ray locked in seven years ago. I watched him build his career brick by brick. I’m honored to further our partnership together. His trajectory is limitless. Wavy Gang for life,” he says.
Not only is Ray celebrating the newly minted partnership with EMPIRE, but he’s also savoring his newest accolade: a certified RIAA-gold plaque for his song “Ron Artest,” which features 42 Dugg—his first.
With momentum on his side, Ray looks to ramp up the intensity with his weekly installment of “Face Fridays.” His newest song, “Glory,” is befitting, highlighting the wins in Ray’s life and his gratitude. “You startin’ your discipline, you’re having your business, you’re stackin’ your chips / I’m writing my goals down, I’m knockin’ them all down, I’m scratchin’ the list,” he raps on the BrentRambo and LulRose produced song.
Check out the “Glory” video below.
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A time-tested revenue model in the theater and concert world is to price the front seats highest, and sell them early to the act’s dedicated followers, then fill out the house with cheap seats to optimize cash flow and lower risk. Recorded music does the opposite: when an album drops, an artist’s music is immediately available on all streaming services to every subscriber, leaving no room for passionate fans to self-select into pricier options.
In gaming, at least since the days of Minecraft, superfans have been given early access to titles prior to their publication, generating revenue, feedback and word of mouth.
Movie studios use a similar model, charging for early access to cinema screenings of major films roughly 45 days before they are widely available to stream (typically first as a purchase, then as a rental). Apple used this windowed approach seeking to maximize revenue with Killers of the Flower Moon and Napoleon, as did Amazon Prime with Air.
The record industry seems to have missed the memo. Other than an early misfire trying out streaming exclusives on the artist-owned Tidal service, it doesn’t use a windowed approach. This is a huge missed opportunity.
One way for recorded music to open a more lucrative, superfan-based future is to turn to one of the icons of its past: vinyl records. Rapper Travis Scott figured this out, pressing 500,000 double-vinyl records of his Utopia album and making it available the same day he dropped it on streaming services. Scott has now sold the majority of them at $50 a pop, taking the risk, and reaping the reward. What if he had released those analog vinyl records before the album was launched digitally on streaming? If he had sold half the stock before the digital release, he would have grossed $12.5 million, perhaps banking $10 million of that as profit, all while supercharging his marketing machine as all those superfans paraded their prized product to their friends.
A limited-edition package of Scott’s Utopia on red vinyl.
Courtesy of Cactus Jack Records
Like the boy who cried wolf, we’ve been told again and again that the resurgence in vinyl is a blip, not a trend. Yet for 18 straight years it has continued to surpass expectations. For the past three years, it’s made up over a tenth of all label revenues from the consumer and this year will see labels reap over a billion vinyl dollars, with no slowdown in sight.
Analog is surging in book publishing, too, as printed books are now outselling their digital counterparts 4-to-1 and bookstores are ascending. Not long ago that would have seemed inconceivable.
Now let’s look at where the vinyl meets the road: the math. While streaming is a music industry success story, it’s also a commoditization story – selling more and more for less and less. Back in 2001, Rhapsody charged $9.99 to access 15,000 catalog songs; today Spotify et al charge roughly the same for 120 million songs. Add the impact of family plan, where typically three people share a $15 per month account and the value of an account user has fallen by 10% and that’s before you adjust for inflation. Vinyl is bucking this trend. Since 2016, retail prices for the platters that matter have risen 30%.
Will Page
Anjelica Bette Fellini
For a streamer to provide a record label the same amount of value from an album as a vinyl buyer, a customer would need to press play over 5,000 times — or stream for almost two weeks straight without sleep. Let’s be crystal clear on what this comparison really means: consumers are paying more for the same with vinyl but paying less to access more with streaming. So if you want to hedge your intellectual property bets, you’d better put some chips on black and spin the wheel at 33 1⁄3.
Management guru Peter Drucker once quipped that “the customer rarely buys what the company thinks it’s selling him.” In the case of vinyl, over half of buyers don’t even own a record player. So they’re not buying the music — they’re buying merchandise that gives them a sense of identity and connection to the artist. With streaming, you merely press your thumb on a piece of glass; owning, holding and displaying a curated vinyl record with unique artwork has much deeper meaning to a fan.
There are similar conundrums concerning vinyl’s relationship with the creator. Remember that streaming unbundled the album – so you could have nine filler songs on a killer Number One record yet not get paid for those songs. The book Pivot showed that Gotye’s 2011 debut Making Mirrors was the most streamed album of the year, but it was all down to one hit: Somebody I Used to Know. Strip that hit out and this record falls out of the Top 100.
Vinyl captures more in the unit value — no fan can realistically give your album $30 via streaming — and all songs receive the same payout. Saturday Night Fever soundtrack is arguably the greatest vinyl success story in history; yet the obscure Ralph MacDonald track “Calypso Breakdown” from that album earned the same as the Bee Gees signature track “Staying Alive” for every album sold. Investors in music catalogs should take note: supporting more vinyl releases stands to monetize the vast majority of songs currently owned that make almost no money from streaming.
Vinyl is not without its challenges. Measuring the size of its remarkable continued success story is just one. Recent changes by Luminate, the go-to source for industry data, wiped off 40% of the measured volume overnight, by flipping from extrapolating the size of the market to counting only those who opt in. That’s getting fixed, and will assuage the people it’s upset, but the point remains, there’s way more vinyl being purchased than Luminate measures.
Fred Goldring
Natasha Fradkin
There are other challenges, too. If counting bricks & mortar retail is hard, what about tracking online physical retail that’s based anywhere yet serves everywhere? London-based Juno is a corner kick from Camden’s famous market and serves not just the UK and US, but Brazil and China in equal measure. Add the burgeoning second-hand platforms like Discogs and you get a sense that the true size of the market is a lot bigger than we give it credit for.
This brings us back to the potential of vinyl’s first mover advantage. Until the latter part of 2023, vinyl faced an enormous manufacturing backlog and demand far exceeded supply for even the biggest artists. Many vinyl albums were released many months after their initial streaming release.
A rise of small vinyl manufacturing plants have significantly decreased lag time and backlog. Travis Scott used the Poland-based team at Pressing Business to manufacture 500,000 double-disc, multi-cover, multi-colored Utopia albums in just five weeks, allowing for the highest vinyl debut for a hip-hop artist since records began in 1991. Combined with streaming, the album stayed at #1 for five weeks.
The record industry should start selling and delivering vinyl as an early access opportunity, not an afterthought. Pre-stream vinyl releases can create scarcity, exclusivity and therefore additional revenue from superfans who will jump at the chance to be the first to hear the music or own a limited edition version. Artists will benefit creatively as well, as superfans are the ones most likely to truly appreciate the album as a body of work, curated as the artist intended (and, many would argue, with better sound). Once music is thrown into the ocean of streaming, it often gets lost at sea, and all stakeholders lose something valuable. It’s time for the record industry to embrace the vinyl first mover advantage that is hiding in plain sight.
Will Page is the author of Pivot and former chief economist of Spotify, and Fred Goldring is an Entrepreneur, Entertainment Lawyer and co-founder of Pressing Business.