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The fallout from Warner Music Group’s company-wide cull has already reached Australia, where the head of the domestic Warner Chappell company, Matthew Capper, is understood to be among the departures.
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Capper has led Warner Chappell Australia as managing director since 2010, and boasts more than 20 years’ service with the company.
A popular figure in the music publishing community, Capper joined Warner Chappell in 2003, initially as a copyright/royalty analyst, was promoted to general manager in 2004, and was named managing director in July 2010.
Prior to working at Warner Chappell, Capper cut his teeth as administration manager at Festival Music Publishing, a now-defunct Australian independent music publishing brand which was acquired by Mushroom Music in 2005.
Outside of his duties leading Warner Chappell’s affiliate from Melbourne, he is non-executive director of APRA and AMCOS, deputy chair of AMCOS, chair and non-executive director of publishers trade association AMPAL, and treasurer and non-executive director of ICMP, the global trade body representing the music publishing industry worldwide.
On his election to the board of APRA in 2007, he become the youngest-ever director of the authors’ rights society, aged 30 – a record that still stands.
Capper will finish up with Warner Chappell Australia on Feb. 29, 2024, sources say, tying in to sweeping changes announced earlier in the week by Warner Music Group CEO Robert Kyncl.
In an internal memo to staff obtained by Billboard, Kyncl wrote that the company will be reducing headcount by 10%, or some 600 people, as part of a plan to free up $200 million in cost savings to reinvest into the business.
Those cost savings will be realized by the end of September 2025, Kyncl said in the memo; some of those laid off have already begun to be informed, while the “vast majority” will be notified “by the end of September 2024,” he writes.
“As we carry out our plan, it’s important to bear in mind why we’re making these difficult choices,” the memo continued. “We’re getting on the front foot to create a sustainable competitive advantage over the next decade. We’ll do so by increasing funding behind artists and songwriters, new skill sets, and tech, to help us deliver on our three strategic priorities,” which he says includes growing engagement with music, increasing the value of music and evolving how Warner’s teams work together.”
Just before news broke of those company-wide cuts, WMG announced that its quarterly revenue grew 17% for the period ended Dec. 31, 2023, up 11% in normalized revenue, to $1.75 billion — its highest quarterly result ever.
Warner Music Group announced Wednesday (Feb. 7) that its quarterly revenue grew 17% for the period ended Dec. 31, 2023, up 11% in normalized revenue, to $1.75 billion, its highest quarterly mark ever, ahead of its earnings call Thursday. At the same time, CEO Robert Kyncl announced in an internal memo to staff obtained by Billboard that the company will be reducing its workforce by 10%, or some 600 people, as part of a plan to free up $200 million in cost savings to reinvest into the company.
Much of that workforce reduction, Kyncl wrote, will come in the form of Warner’s owned and operated media properties — such as Uproxx and HipHopDX, which it acquired in August 2018 — as well as in corporate and support roles. “Earlier today, we began exiting our O&O media properties, as well as our in-house ad sales function,” Kyncl wrote. “These are dynamic platforms, but they operate outside our core responsibilities to our roster. We’re in an exclusive process for the potential sale of the news and entertainment websites Uproxx and HipHopDX, with more to say on that soon. After a thorough exploration of alternatives, we’ve decided to wind down the podcasting brand Interval Presents and social media publisher IMGN.”
Kyncl further added that Warner is making the move from “a position of strength,” noting that the company currently has five of the top 10 songs on the Hot 100, “and that’s the smart time to change, innovate and lead. Music is constantly morphing, so we need to morph with it.”
That $200 million in cost savings will be realized by the end of September 2025, Kyncl said in the memo; some of those laid off have already begun to be informed, while the “vast majority” will be notified “by the end of September 2024,” he writes.
“As we carry out our plan, it’s important to bear in mind why we’re making these difficult choices,” the memo continued. “We’re getting on the front foot to create a sustainable competitive advantage over the next decade. We’ll do so by increasing funding behind artists and songwriters, new skill sets, and tech, to help us deliver on our three strategic priorities,” which he says includes growing engagement with music, increasing the value of music and evolving how Warner’s teams work together.
Read Kyncl’s full note to staff below.
Hi everyone,
We just finished our first All Hands of 2024 from LA.
This is a pivotal moment in the evolution of this great company, so I wanted to make sure you heard about it directly from me. As I outlined in my note last month, 2024 is a year during which we will double down on our core business and move at an increased velocity to seize the incredible opportunities for music in the new world.
This week, our recording artists make up five of the top 10, and our songwriters have six of the Top 10, on the Billboard Hot 100. Today, we’re revealing our latest quarterly results: we grew 11% in normalized revenue. And with growing momentum in Recorded Music streaming and excellent results in Music Publishing, we hit our highest quarterly revenue ever. We’re in a position of strength, and that’s the smart time to change, innovate, and lead. Music is constantly morphing, so we need to morph with it.
Today, we’re announcing a plan to free up more funds to invest in music and accelerate our growth for the next decade. To do that, we have to make thoughtful choices about where we put our people, resources, and capital. So, as part of that plan, we’ll be realizing approximately $200 million in annualized cost savings by the end of September 2025. The majority of these savings will be reinvested, putting more money behind the music.
Our plan includes reducing our workforce by approximately 10%, or 600 people – the majority of which will relate to our Owned & Operated media properties, corporate and various support functions.
We’ve already begun to inform many of the impacted employees, and the vast majority will be notified by the end of September 2024. I recognize this is unsettling news. To the people who will be leaving us: you deserve a heartfelt thank you for your hard work and dedication. We’re fortunate that you’ve been part of the team. We’ll be moving as thoughtfully and respectfully as possible, so you have the critical information you need, and we’ll support you through this transition.
Earlier today, we began exiting our O&O media properties, as well as our in-house ad sales function. These are dynamic platforms, but they operate outside our core responsibilities to our roster. We’re in an exclusive process for the potential sale of the news & entertainment websites Uproxx and HipHopDX, with more to say on that soon. After a thorough exploration of alternatives, we’ve decided to wind down the podcasting brand Interval Presents and social media publisher IMGN. Maria and I continue to discuss the ongoing evolution of WMX, and how best to further improve our services to artists and labels, and she’ll update the team in the coming weeks.
As we carry out our plan, it’s important to bear in mind why we’re making these difficult choices. We’re getting on the front foot to create a sustainable competitive advantage over the next decade. We’ll do so by increasing funding behind artists and songwriters, new skill sets, and tech, to help us deliver on our three strategic priorities:
Grow the engagement with Music
Discovering and developing artists and songwriters is at the heart of everything we do. We’ll turbocharge our efforts and investments, with additional focus on high growth geographies and vibrant genres, as well as using our data and insights to help original talents cut through the increasing noise, and taking a holistic global approach to maximizing the potential of their catalogs.
Increase the value of Music
This is one of our industry’s largest and most complex opportunities and one that we’re working on diligently, whether it’s new DSP deal structures or building superfan experiences to help artists connect directly with their most passionate followers.
Evolve how we work together
In order to grow at an accelerated pace, we need to structure our organization so that we can grow efficiently and continue to invest more into music at the same time. That requires being intentional about where centralized shared functions make sense, versus where they are best fully dedicated. This will empower subject matter experts, while scaling our resources. We already made moves in this direction by centralizing our technology, finance and business development teams last year.
Above all, we’re positioning ourselves to be first, to be different, and to be exceptional. I – and the entire leadership team – will be keeping you updated as we make progress. In May, we’ll hold our next All Hands meeting, which we’ll devote to our best new music, as well as our most promising projects.
Thank you for your understanding, passion, and determination. We’re in an amazing industry, we’re partnered with many extraordinary artists and songwriters, and now is the time for us to pioneer the future.
Robert
Kelsea Ballerini has renewed her deal with her longtime label, Black River Entertainment. Ballerini first signed with Black River in 2013; over the ensuing decade, she has earned five No. 1 hits on Billboard‘s Country Airplay chart, including “Legends,” “Love Me Like You Mean It” and the Kenny Chesney collaboration “Half of My Hometown.” Variety […]
Tom March has been named the new chairman/CEO of Capitol Music Group, and Lillia Parsa has been named co-president of the label group alongside co-president Arjun Pulijal, Interscope Geffen A&M chairman/CEO John Janick announced in a memo today (Feb. 7). The new leadership group was announced one day after previous CMG chair/CEO Michelle Jubelirer announced she was stepping down with immediate effect yesterday (Feb. 6).
March, who has spent the past two years as U.S. president of Geffen Records, becomes the fourth head of Capitol in the 2020s, after longtime label chief Steve Barnett retired at the end of 2020, then A&R veteran Jeff Vaughn led the label for less than a year before Jubelirer took over in December 2021. Prior to his stint at Geffen — which is the home to Olivia Rodrigo, and has a high-profile partnership with BTS and HYBE, among other artists — March was the co-president of Polydor Records in the U.K. for six years, where he helped develop Glass Animals and worked the Interscope roster in the U.K. In his new role, he’ll oversee Capitol Records, Blue Note Records, Motown Records, Astralwerks, Harvest Records and Capitol Christian Music Group, and report to Janick.
Parsa arrives at Capitol after six years at Universal Music Publishing Group, where she worked with the likes of recent best new artist Grammy nominees Ice Spice and Gracie Abrams, as well as Renee Rapp, Julia Michaels, Louis Bell, Omer Fedi and many more, with clients that worked on No. 1 Hot 100 songs like The Kid Laroi and Justin Bieber’s “Stay,” Lizzo’s “About Damn Time,” Ariana Grande’s “Positions” and more. Parsa will report to March and join Pulijal, who has been president of CMG since January 2022, as co-president. Both March and Parsa will be based at the Capitol Tower in Hollywood.
“I’ve worked closely with Tom for the better part of a decade, first as he looked after IGA repertoire in his role as co-president of Polydor in the U.K. and more recently in his position as president of Geffen,” Janick said in a statement. “He is a passionate and savvy executive who is a relentless advocate for artists and is committed to building successful executive teams. I know he will thrive in this important new role. Lillia is a gifted creative executive with very strong relationships throughout our business. I’ve personally gotten to know her over the years through artists we’ve signed together and via the amazing roster of songwriters she’s assembled at UMPG. I’m excited for her to take on this key position at Capitol, working alongside Arjun to continue to build a powerful platform for Capitol Music Group.”
These executive moves come amidst a broader restructuring happening at parent company Universal Music Group, which chairman/CEO Lucian Grainge announced in an internal memo last week. As part of that overhaul, Janick will now oversee Interscope, Geffen, Capitol, Motown, Priority, Verve and Blue Note, while Republic Records CEO Monte Lipman will oversee Republic, Def Jam, Island and Mercury. That memo also included a note that said, “In the coming weeks, John and Monte will be making further announcements about structure, resources and next-generation partnerships.” Jubelirer’s exit yesterday was the first exit since the announcement was made.
Jubelirer had been at Capitol for more than a decade, and had begun to turn around a recently-flagging label in her two years in charge: In 2023, Capitol racked up a 6.66% market share in the U.S., including a 5.90% current market share — which measures releases from the past 18 months — which was fifth among all labels for the full year. Both numbers were up significantly over her first year at the helm in 2022, when Capitol’s overall market share stood at 6.40% and current market share was 4.97%. That responsibility for the 80-year-old institution will now fall to March.
“I’m thrilled to be charged with leading Capitol Music Group,” March said in a statement. “The company’s deep legacy includes so many iconic artists and records that have long played important roles in my life, and the opportunity to help write CMG’s next chapter is a dream come true. I’m excited for Lillia to be joining me to define the creative direction of the company; she is spectacularly talented, and one of the most respected A&R executives in the business today.
“Together, we’ll work with Arjun and the brilliant CMG team to enhance the careers of artists on our current roster, as well of those who will be joining us in the future,” March continued. “John Janick and I have forged a great working relationship over the past decade, and it’s only become stronger with our amazing run at Geffen. That will absolutely intensify as we take CMG to the next level and share in even greater success together. I’m grateful to all of the artists at Geffen for their incredible music I’ve had the privilege to work on these past two years, and for the teams at Geffen and IGA who have been so supportive along the way.”
Capitol has a long history in the music business, having been the home of The Beatles, Bee Gees, ABBA, The Beach Boys, Nat King Cole and many iconic artists, and more recently the label for Katy Perry, Sam Smith, Maggie Rogers, Lewis Capaldi, Niall Horan, Toosii, Queen Naija, Ice Spice, Kodak Black and many more. Having been under the EMI Music umbrella for decades, Capitol was sold to Universal Music in 2012 in a $1.9 billion deal, after which it became a standalone frontline music group until this month, when it was shifted under Janick’s purview.
“I’m excited to be working with Tom to write the next creative chapter for Capitol Music Group; to work with an array of artists that currently call CMG home, as well as those that will be joining us in the near future,” Parsa said in a statement. “I’m also looking forward to working alongside Arjun as co-president of a company with such an illustrious and ongoing legacy. I thank John Janick for this great opportunity, and my longtime mentor [UMPG Chairman & CEO] Jody Gerson for always supporting me and encouraging this next important step in my career.”
Jermaine Dupri‘s legendary So So Def Recordings has signed a multi-year agreement with Create Music Group that encompasses all of the label’s recordings, publishing and back catalog. In addition, Dupri will supervise the launch of new artists and music under the partnership and double as Create Music Group’s the newly appointed creative director.
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Concurrent with his new appointment, Dupri will segue from CEO of So So Def Recordings to its chairman & founder. He, in turn, has named Bryan Patrick Franklin to replace him as CEO and Joe Romulus Esq. as head of legal business affairs. In his role as creative director for Create Music Group, Dupri will work on “expanding the company’s impact on the cross-section between music and culture,” as noted in the press release announcing the news.
Dupri, a Grammy-winning producer and member of the Songwriters Hall of Fame, stated in the release, “I have been looking for a home for the entire So So Def brand so I can continue to do what I started.” Last year, So So Def celebrated its 30th anniversary.
Jonathan Strauss, CEO & founder of Create Music Group, commented, “Jermaine has been one of the most successful and impactful forces in music for the last three decades. We are honored that he and his team have decided to partner with us for both his catalog and future output.”
Dupri’s talent as a songwriter-producer is behind such platinum and multi-platinum songs as Mariah Carey’s “We Belong Together” (which won him the Grammy for best R&B song), Usher’s “Nice & Slow,” Xscape’s “Just Kickin’ It” and his own “Money Ain’t a Thang” featuring Jay-Z. He also produced the hits “Burn” and “Confessions Part II,” from Usher’s diamond-certified Confessions album. Upon founding So So Def Recordings in 1993, Dupri helmed a roster of R&B/hip-hop and pop hitmakers that included Xscape, Da Brat, Jagged Edge and Anthony Hamilton. A DJ and the second rapper after Jay-Z to be inducted into the Songwriters Hall of Fame, Dupri also established the plant-based ice cream alternative JD’s Vegan.
Create Music Group was founded in 2015. The Hollywood-based data-driven media and technology firm has worked with stars and global brands such as Jennifer Lopez, Marshmello and PepsiCo. Among the media networks that Create Music Group operates are the independent music distribution platform Label Engine and the Gen Z-focused digital entertainment and marketing agency Flighthouse.
Ricardo Chamberlain has been named COO of Puntilla Music, where he will oversee the music company’s distribution, record label and publishing divisions, Billboard has learned. “I feel immensely proud and excited to embark on this journey with Puntilla and its visionary team,” Chamberlain said in a press statement. “Working side by side with Claudio Pairot […]
Capitol Music Group chair and CEO Michelle Jubelirer is exiting the company, she announced in a memo to staff this morning (Feb. 6) that was obtained by Billboard. The move comes less than a week after Universal Music Group chairman/CEO announced a restructure of the label groups at the company that would shift Capitol, among other labels, under the oversight of Interscope Geffen A&M chairman/CEO John Janick.
Jubelirer, who has held her current title since December 2021, will depart the label after today.
“I am deeply saddened that I will no longer be at the company we rebuilt and took to new heights over the past two years,” she writes. “As I’ve said before, I don’t think any label group has been able to turn things around as quickly as we have managed to, and I’m certain that we’ve set Capitol Music Group on course toward a great future.”
Jubelirer joined Capitol in early 2013 as executive vp under then-CMG CEO Steve Barnett, and quickly became his second in command at the music group, which also encompassed Motown, Blue Note, Astralwerks and, until recently, indie distributor Virgin Music. In 2015 she was promoted to COO, a role she held throughout Barnett’s reign atop the label, which ended at the end of 2020. She remained on as COO under Barnett’s successor, Jeff Vaughn, who spent a short time in the top role, before Jubelirer succeeded Vaughn at the end of 2021.
A longtime attorney who also spent time at Sony Music prior to joining Capitol, Jubelirer was part of the revitalization of the storied label following UMG’s acquisition of EMI in 2012, and has been a regular on Billboard’s Women in Music and Power 100 features in the years since. Upon her appointment in 2021 to the top job, Jubelirer became the first female executive to head Capitol in its 80-plus-year history.
In 2023, Capitol racked up a 6.66% market share in the U.S., including a 5.90% current market share — which measures releases from the past 18 months — which was fifth among all labels for the full year. Both numbers were up significantly over her first year at the helm in 2022, when Capitol’s overall market share stood at 6.40% and current market share was 4.97%.
Last week, Grainge announced a restructuring of UMG’s labels, returning the company to an operational structure more similar to the one that existed from 1999 through 2014, prior to the full integration of Capitol. Under this new configuration, which is loosely an East Coast-West Coast alignment, Janick is overseeing Interscope, Geffen, Capitol, Motown, Priority, Verve and Blue Note, while Republic Records CEO Monte Lipman will oversee Republic, Def Jam, Island and Mercury.
See her letter to staff below in full:
To my Capitol Music Group Team,
I wanted you to hear this news directly from me: I’ve made the extremely difficult decision to leave the company that has been my home for more than a decade, and so, today will be my last as Chair & CEO of Capitol Music Group.
I am deeply saddened that I will no longer be at the company we rebuilt and took to new heights over the past two years. As I’ve said before, I don’t think any label group has been able to turn things around as quickly as we have managed to, and I’m certain that we’ve set Capitol Music Group on course toward a great future.
Together, we became a real team; a diverse group of individuals bonded by our love of music and passion for artistry, and whose differences in backgrounds and cultural tastes made each of us stronger advocates and champions for our artists. In such a competitive and fast-paced world, we gave it our all—every minute of every day—so that our artists could seize the opportunity to realize their dreams and ultimately succeed.
I am so fortunate to work in a business that I love and be constantly surrounded by music and the talented people that create it. Every day, I renewed my promise to do my very best for our artists, and they have given me so much in return. No matter where I find myself in this business, I will always approach my relationships with artists as their advocate, their protector, and their fan.
I will let you know of my future plans as soon as I can.
In closing, let me simply say to each of you: Thank You. It has been my honor to be on this journey with you.
With love and appreciation,
Michelle
For the second straight year, and third in the last four, the top honors in the Big Four Grammy categories were all split among different record labels, as Republic Records (Taylor Swift, album of the year for Midnights), Columbia Records (Miley Cyrus, record of the year for “Flowers”), Interscope Geffen A&M/Atlantic Records (Billie Eilish, song of the year for “What Was I Made For?”) and RCA Records (Victoria Monét, best new artist) all divvied up the major prizes.
This year, that breaks down into a split among the three major label groups, as both Universal Music Group (UMG) and Sony Music Entertainment (SME) accounted for two each, while Warner Music Group (WMG) earned one. (The discrepancy between the four categories and five label wins is because Eilish’s win for song of the year is technically split; she is a Darkroom/Interscope recording artist for UMG, but the song appeared on the Barbie soundtrack, which was released by WMG’s Atlantic Records.) In 2023, the top four was split evenly across the three majors and an independent, with Columbia (Harry Styles, album of the year for Harry’s House), Atlantic (Lizzo, record of the year for “About Damn Time”), Verve (Samara Joy, best new artist) and indie label Redwing (Bonnie Raitt, song of the year for “Just Like That”) scoring wins.
Among the Big Four and the top seven genres by U.S. market share — pop, rock, R&B, hip-hop, Latin, country and dance — RCA and Atlantic picked up the most wins, tying for five apiece, as Monét (best new artist, best R&B album) and SZA (best pop duo/group performance, best R&B song, best progressive R&B album) led the way for RCA while Eilish (song of the year for her track on the Barbie album), Fred Again… (best dance/electronic recording with Skrillex and Flowdan, best dance/electronic music album) and Paramore (best rock album, best alternative music performance) paced Atlantic. Interscope, through Eilish and a trio of awards for acclaimed group boygenius (best rock song, best rock performance and best alternative music album) landed four, while Loma Vista/Concord, off a big night for Killer Mike (best rap album, best rap song, best rap performance), racked up three.
Aside from that, honors were largely evenly divided, with no other label picking up more than two awards. Swift led Republic’s pair of wins (she also won best pop vocal album), while Cyrus led Columbia’s two (she also earned best pop solo performance); a pair of victories for Chris Stapleton (best country song and best country solo performance) landed two wins for UMG Nashville; BMG got two for best pop dance recording for Kylie Minogue’s “Padam Padam” and best country album for Lainey Wilson’s Bell Bottom Country; and UMG Latin earned best musica urbano album for Karol G’s Mañana Será Bonita and Juanes’ Vida Cotidiana, which came in a tie with Natalia Lafourcade’s De Todas Las Flores (Sony Latin) for best Latin rock or alternative album.
The rest were spread across a number of labels, including Def Jam (Coco Jones, best R&B performance), Warner Records (Zach Bryan, best country duo/group performance with Kacey Musgraves), Alamo (Lil Durk, best melodic rap performance with J. Cole), EMPIRE (PJ Morton, best traditional R&B performance with Susan Carol), Blackened (Metallica, best metal performance) Prajin/The Orchard (Peso Pluma, best Música Mexicana album), Cosmica (Gaby Moreno, best Latin pop album) and Ruben Blades Music (Ruben Blades, best tropical Latin album).
Overall, that gave Universal Music Group 11 of those victories, with indies racking up 10, Sony nine and Warner Music Group six.
The music industry’s Cold War with TikTok just turned very hot — and extremely complicated. By the end of the month, Universal Music Group (UMG) will require the platform to take down music it controls even a small part of, by using what some music executives call “the nuclear option.” This will prevent some other rights holders from making money on TikTok — but at least some of them are cheering it on.
On Jan. 30, the day before UMG’s latest deal with TikTok lapsed, the company announced in an open letter that “we must call time out on TikTok” and began removing its recorded music from the platform. After a 30-day grace period, UMG says it will also require TikTok to take down any song in which Universal Music Publishing Group (UMPG) controls any rights. That means songs by Harry Styles, SZA and Bad Bunny; those with writing credit from creators like Metro Boomin and Jack Antonoff; and even those that sample compositions by UMPG songwriters. In some markets, that might account for more than half of the music used on the platform.
The question is what this means for the rest of the business. Styles, SZA and Bad Bunny are three of the biggest acts signed to or distributed by Sony Music Entertainment, so this would affect that label, as well as Warner Music Group, BMG and scores of independents. From the end of February until UMG and TikTok reach a new licensing deal, they will not earn any money on music to which UMG has any rights — a relatively minor income stream at this point — while losing out on an important source of promotion. In the long term, of course, a win for UMG that pushes TikTok to pay more for the rights to music could also help the entire industry.
This Cold War turned hot pretty suddenly. For years, rights holders have embraced TikTok as a promotional vehicle while griping about the short-form video platform’s low payouts in what seemed like a repeat of the music industry’s contentious relationship with YouTube. Both can pay less than other platforms because in many cases they can essentially operate under the Digital Millennium Copyright Act, which allows them to make available content uploaded by users until rights holders ask for a takedown. In language that sounds like it could have come from YouTube a decade ago — or from a file-sharing service a decade before that, for that matter — in a statement released on social media, TikTok said that UMG had abandoned a popular platform “that serves as a free promotional and discovery vehicle for their talent.” Basically, they offer exposure. But as creators and rights holders might say — and here you have to imagine a Borscht Belt delivery — you could DIE of exposure!
UMG’s move came at the worst possible time for TikTok: the day before a Senate committee hearing on child safety and social media, during an escalating Middle East conflict that has focused negative attention on TikTok’s Chinese ownership, and during a week when much of the music business was in Los Angeles for the Grammys. This isn’t entirely a coincidence: UMG’s long-term deal actually expired at the end of 2023, and Jan. 31 was just the end of a one-month extension. (A source close to TikTok said that the two sides were close to a deal at the end of December, while a source close to UMG said that was not the case.) Fair or not, the pressure in Washington could be substantial. (I have serious concerns about a Chinese-owned app becoming an important source of news on Taiwan, but I’m not sure that has much to do with music licensing.)
So far, there has been some support for UMG from other companies in the music business. Neither of the other two major labels would comment — Sony declined and a spokesperson for Warner did not return messages — and it’s unlikely that they will, for antitrust reasons. Primary Wave, Downtown and Hipgnosis have expressed support for Universal, though. And at a Grammy Week music publishers event, National Music Publishers’ Association (NMPA) president/CEO David Israelite pointed out that the model contract with TikTok that’s used by many NMPA members expires in April.
Tik-tok, indeed.
The dynamic here is complicated but potentially revolutionary. For the last two decades, most of the negotiations between media and technology companies have involved a few rights holders that each control significant amounts of content and a platform that has a larger share in its market than they do — think labels and streaming services or book publishers and Amazon. Since antitrust law almost always prevents big companies from negotiating together — a lesson Apple and some book publishers learned the hard way — the platforms have an advantage. In this case, UMG managed to get more leverage by using publishing rights that by their nature will affect impact a lot of compositions, creating a situation where some small companies can cheer it on.
The question is what happens after February. Rights holders can live without the money they make on TikTok, but what about the platform’s promotional value for breaking artists? For now, presumably, artists on other labels who don’t work with UMPG songwriters will gain an advantage. If this dispute lasts a few months, that might give smaller labels enough of an advantage to matter. If it lasts longer than that, though, TikTok could face more competition, too. The company has suggested that music accounts for a modest amount of the platform’s value, but that would be tested if TikTok has to compete against other short-form video platforms that have rights to use music that it doesn’t.
The more likely scenario is that UMGand TikTok will reach an agreement — perhaps one that both will grumble about but accept — and then over time find ways to work together that benefit both sides, plus creators of all kinds. Short-form video could eventually grow into a truly important revenue stream. By that time, of course, a new platform will probably come along to challenge that, too.
Megan Thee Stallion has found a new home as she’s entered an “innovative agreement” with Warner Music Group while maintaining her independence.
Billboard reported in December that Megan would be working with WMG and utilizing the company “for distribution and services.” The distribution deal has since been signed and was announced officially on Friday afternoon (Feb. 2).
Within the structure of the unique partnership, the Houston Hottie will have access to WMG’s global services ranging from music promotion to distribution and worldwide marketing.
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On the music side, Megan will keep releasing tunes independently through her Hot Girl Productions label and work collaboratively with Warner Music Group. The deal allows Thee Stallion to keep ownership and control of her masters as well as her publishing.
“This is the beginning of an exciting new chapter of my life and career,” Megan said in a statement. “I’m really focused on building an empire and growing as an entrepreneur, so I’m proud to take this next step in my journey and work with Max Lousada and the entire Warner Music Group team in this new capacity. I know we’re going to create history together.”
Roc Nation will still be involved in managing the Grammy-winning rapper separate from the new Warner agreement.
Warner’s 300 Ent. previously distributed Megan’s music from 2018 through last November while the rapper was entrenched in a dispute with former label 1501 Certified Entertainment.
The tumultuous relationship was muddied with claims of 1501 keeping royalties from Megan and not allowing her to release music as she pleased.
The turbulent agreement between Meg and the Carl Crawford-led 1501 finally came to an end in October following a yearslong battle in court.
“Meg is not just a superstar,” WMG Recorded Music CEO Max Lousada added. “She’s an artistic force and a mogul in the making — authentic and unapologetic in defining her own unique place in the cultural landscape. So many relate to her remarkable story and have witnessed her come into her power on her own terms.
“At Warner, we’re creating an environment where original talents can explore both their creativity and entrepreneurialism, while building long-term careers. Following on her success with 300, we’re excited to continue our journey with Meg through this dynamic new partnership, with our global teams, infrastructure, and expertise supporting her every step of the way.”
Megan Thee Stallion has released a pair of singles independently, the second of which arrived last week with “HISS.” The fiery track saw her send indirect shots at Drake, Nicki Minaj, and more while blasting to top the U.S. Spotify and Apple Music Global charts.
The 28-year-old is on pace to earn her 32nd Billboard Hot 100 entry and a lofty debut on the elusive charts. Megan has two No. 1 hits on the Hot 100 and six Billboard 200 placements to her name. Her song catalog has earned 10.3 billion on-demand streams (including user-generated content, or UGC, which does not count toward Billboard’s charts), according to Luminate.
Find Megan’s post to Instagram celebrating the deal with WMG below.