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Benson Boone has had a few appearances on the Hot 100, scraping No. 100 with “Ghost Town” in November 2021 and reaching No. 82 with “In the Stars” in May 2022. But nothing has compared with his latest song, “Beautiful Things,” which rocketed onto the chart at No. 15 in its first week. The track garnered 15.7 million on-demand U.S. streams in the week ending Jan. 25, according to Luminate, and debuted at No. 5 on the Streaming Songs chart.
That instant success for the song has been a long time coming. Boone signed to Warner Records alongside Dan Reynolds’ Night Street Records in October 2021 and has emerged more than two years later as a heavy hitter, having spent that time in writing rooms honing his craft and developing as an artist. That’s the exact type of story that many have said is in the past in the current record business.
Now, he’s become just the latest in Warner’s recent run of success stories, which are coalescing in the first part of this year as Zach Bryan, Teddy Swims, Kenya Grace and Boone all occupy spots in the top half of the Hot 100. Meanwhile, another Warner artist, Brandy Clark, is one of the top-nominated acts at this weekend’s Grammy Awards with six nominations. This success with Boone, Clark and other artists such as Billy Strings (three Grammy noms), Rufus du Sol, Nessa Barrett and others earns Warner Records executive vp of A&R Jeff Sosnow the title of Billboard’s Executive of the Week.
Here, Sosnow talks about the rapid rise of Boone’s latest hit, the songwriting and artist success story Clark is enjoying and the evolution of artist development in the modern record business at a time when many deride the major labels as chasing after virality and one-off unicorn hits. “In this moment,” Sosnow says, “the artist development piece at Warner Records is no bulls—.”
This week, Benson Boone’s “Beautiful Things” debuted at No. 5 on the Streaming Songs chart and No. 15 on the Hot 100. What key decision(s) did you make to help make that happen?
It starts with the music. I had worked with producer Evan Blair over the last few years with another one of my artists, Nessa Barrett. I had a hunch Evan and Benson would hit it off and work well together. “Beautiful Things” was the first song that came together. After that, it really became a collaborative effort between our viral and marketing teams supporting Benson and his manager Jeff Burns’ incredible social campaign and teasing cadence. But certainly, it comes back to the music resonating in such a way with potent visuals that make for a magical moment.
Boone signed to Warner alongside Dan Reynolds’ Night Street Records in October 2021. What work have you done to help develop him as an artist over the past few years?
Dan and his brother, Mac, had signed Benson, and Jon Chen at Warner Chappell turned me on to Benson who at the time had one song, “Ghost Town.” Together with co-publisher Coulter Reynolds we have put Benson with a group of core writers and producers after some trial and error. He found his footing and confidence as a writer and artist. The level of consistency in his writing is reflected over the arc of two years of consistent streaming. And it’s not just one or two big songs. But then you throw in the fact that Benson is a world-class performer and you watch thousands of kids sing every word to every song — not just the bigger ones — and you know the hard work and patience has paid off. Some used to call this artist development.
This is his third Hot 100 entry, but first in the top half of the chart. What is it about this song that has made it resonate so much — and so quickly?
A great vocal can never be underestimated. I think Benson’s passion cuts through. There’s an urgency and a universal lyric. But again, his clever visuals on the social platforms and effective music video helped punctuate the visceral feel the song has.
Brandy Clark is nominated for six Grammys this year, part of a dozen nominations that artists you’ve signed have earned. What made her year so special, and how has she developed and grown as a songwriter and artist?
Brandy is the most prolific songwriter I’ve ever worked with. It’s been an honor to work with Lenny Waronker on Brandy’s last few records. She always amazes us because we literally go through upwards of 100 to 150 demos to get to what comprises the album. Brandy’s openness to collaboration is a key ingredient to her success. It was an amazing moment when I was able to get Michael Pollack in with Brandy for just one day. They came out with “Dear Insecurity,” which is simply one of the most powerful songs of this or any year. Enter Brandi Carlile to produce and feature on the song, and you walk out with a timeless record. As great as the album itself is, “Dear Insecurity” was always the centerpiece for me.
How has the rise of different technologies and social apps changed how the role of A&R functions?
Many A&R people rely heavily on data, and it is such an incredible tool to have. We have always had various iterations of data — watching market-by-market ticket sales, radio spins, etc. But other constants that seem to prevail in the A&R process are a great song and a great voice. So technology hasn’t really affected one’s gut instinct and intellectual ability to speak to artists and producers and make decisions about pulling the trigger on a signing, or whether a song is working or not.
A lot of people bemoan the state of artist development these days, but many of the artists you’ve signed have grown and developed extended careers. What would you say about the perception that labels don’t invest in artist development like they used to?
I don’t think labels as a whole have really, truly been beacons of artist development the last five years. I can say that what Aaron [Bay-Schuck] and Tom [Corson] have done in their time at Warner Records is to trust me with acts like Billy Strings, Rufus Du Sol, Benson, Nessa and Michael Marcagi. Each has a different arc and story, but the common thread is patience and belief in the artists and the A&R person’s ability to have real, honest conversations that will push them while also protecting and supporting them for the long haul. And in this moment, the artist development piece at Warner Records is no bulls—.
The Universal Music Group announced a massive restructuring of its record label operations Thursday (Feb. 1), reorganizing its web of frontline labels to align them under two main companies, in Republic Records and Interscope Records. The move, which can loosely be termed an East Coast (Republic) and West Coast (Interscope) realignment, means that Interscope’s John Janick and Republic’s Monte Lipman will be leading U.S. label operations for UMG.
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As part of the move, the other U.S. label heads will now report through to Janick and Lipman, a source confirms. In the new alignment, Janick will now oversee Interscope, Geffen, Capitol, Motown, Priority, Verve and Blue Note, while Lipman will oversee Republic, Def Jam, Island and Mercury.
UMG chairman/CEO Lucian Grainge announced the move today in a memo to staff, in which he acknowledged that Republic and Interscope have been the two market leaders in current market share in recent years; in 2023, Republic claimed 13.47% of the U.S. market, while Interscope was second, at 8.80%.
“As our labels continue to maintain their creative A&R and marketing independence, unique identities, and entrepreneurial spirit, they’ll also be provided with access to the talent and resources best able to support their rosters and bring them to new levels of success,” Grainge wrote in the memo, obtained by Billboard. “It’s a proven model we pioneered on the East Coast several years ago — one that we will accelerate and expand.
“As this model takes shape and spurs new creativity, our U.S. recorded music business will continue to outperform and outgrow our competition,” Grainge continued. “Led by the industry’s best creative visionaries — we will cultivate more repertoire sources, we will invest more in new artists and emerging genres, and UMG will become an even more attractive destination for the world’s most gifted artists.”
The move comes after weeks of speculation about layoffs and restructuring at the company, and while no other moves were announced Thursday, layoffs are still expected, according to many sources. In his memo, Grainge said that “In the coming weeks, John and Monte will be making further announcements about structure, resources and next-generation partnerships. These and other developments will also power some of the other initiatives I outlined in my New Year’s note, including super-fan and audience monetization, state-of-the-art D2C, e-commerce, branding and more.”
Universal has restructured its label network in the past, generally during times of big change in the music business. In 1999, at the formation of what is now the Universal Music Group, the company structured its label operations into Island Def Jam, Universal Motown Republic, Verve Label Group and Interscope Geffen A&M. In 2012, UMG purchased EMI Music’s recorded music operations, bringing Capitol Records, Blue Note and others under its purview, forming the Capitol Music Group. Then in 2014, UMG unwound its East Coast operations to make Def Jam, Island and Motown all standalone labels; in subsequent years, Motown would be moved under the Capitol Music Group umbrella, while Island would begin sharing services with Republic. This new reorganization combines several of those labels under a streamlined structure once again.
“The competition within our own company in signing and developing artists is no accident. It’s by design,” Grainge wrote in his memo. “By creating a home for a variety of independent and competitive creative centers and the leaders that run them, we increase opportunities for growth and success.
“At the same time, our culture never lets our ‘in-house’ competition become destructive; our executives never forget that we are all part of the same UMG team. John and Monte consistently share strategies for success with our labels in the U.S. and around the world, strategies that benefit artists signed to all our labels, not just those on Republic and IGA.”
Big Machine Label Group (BMLG) has elevated Kris Lamb to executive vp/GM of Big Machine Records, effective immediately.
Lamb, who will report directly to BMLG chairman/CEO Scott Borchetta, most recently served as senior vp of promotion and digital, where he led radio and digital strategy for the Big Machine Records imprint, which includes artists Tim McGraw, Carly Pearce and Midland. In his new role, Lamb will focus on breaking, building and retaining Big Machine Records’ roster of artists and focus on fan acquisition and engagement.
“Kris has been with the label group for 13 years; he started with us as a regional promotions director and I’ve loved watching him work his way up through our system, excelling at each new level. I am so proud that he is now leading the charge for our flagship imprint, Big Machine Records,” Borchetta said in a statement. “There is an added pressure being the imprint that founded the company and I’m thrilled he has accepted the challenge to take it even higher. Game On, Lamb Chop… GAME ON!”
“I am beyond honored to represent this remarkable roster of culture-shaping storytellers and blessed to lead this team of forward-thinking executives at Big Machine Records,” Lamb added. “BMR has always been the tip of the spear and I look forward to elevating our impressive roster of artists even higher as a team and making an impact on the future of this imprint, its talent and the country music genre.”
With Lamb’s promotion comes more shifts at the Big Machine Records imprint, with the elevation of Brooke Diaz to national director of promotion and marketing.
Lamb says, “Brooke is one of the most multi-dimensional promotion executives in the field and her passion, ideation and execution is next to none. I am so thrilled to watch her, along with Erik as VP, guide our radio promo team and strategy to the highest level.”
Additionally, Bill Lubitz has been promoted to senior director of West Coast promotion and national strategy. The promotion team also includes vp of promotion Erik Powell, director of Midwest promotion Jane Staszak, director of Southeast promotion Jay Cruze and promotions coordinator Sara Barlow.
Lamb’s promotion follows Tuesday’s (Jan. 30) news that Big Machine Label Group has promoted Mike Rittberg to COO and Clay Hunnicutt to executive vp of label operations.
In Warner Music Group‘s sprawling 2023 ESG report, released Tuesday (Jan. 30), the label outlined plans and goals for its workforce, artists and environmental impact.
“We are determined to transform our business and spur industry change to mitigate the effects of the climate crisis,” the report states in an expansive section on sustainability practices. “This includes measuring and understanding WMG’s environmental footprint, setting science-based targets to reduce emissions…and leveraging our scale, experience and partnerships to foster cross-industry cooperation to minimize the environmental impacts of making and distributing music.”
For the company, these changes start with the company’s brick-and-mortar spaces, with the goal that “WMG will source 100% renewable energy for our operations” by 2030.
The plan is to first implement this initiative in WMG’s global offices and workspaces before rolling it out to WMG-owned and operated facilities. The company also plans to decarbonize its workplaces through 100% renewable energy-based power by 2030.
The report cites WMG joining with Sony Music Entertainment and Universal Music Group in 2023 to establish the Music Industry Climate Collective. The first initiative of this working group has been supporting the development and implementation of sector-specific guidelines for calculating Scope 3 GHG emissions within the recorded music industry. “Scope 3” refers to indirect emissions that occur in the value chain, such as those from product manufacturing, distribution and licensing.
The company also noted a previously announced partnership with MIT, Live Nation, Coldplay and Hope Solutions to understand and mitigate the environmental impact of the live events.
The company cites a goal of increasing public transportation utilization by 20% at Warner Music live events. This effort has already resulted in a partnership between Warner Music Finland Live and Helsinki City Public Transportation, which has provided fans with free public transportation included in their concert tickets.
With its environmental impact data independently reviewed and assured by a third-party auditor for the first time in 2023, WMG reports that in the past year, it has made “significant strides” in its Scope 1 and 2 data collection, analysis and methodology. (Scope 1 and 2 refers to emissions that are owned or controlled by the company and indirect emissions that result from activities of the company.)
“Despite our return to office,” the report says, its efforts “have led to an overall decrease in our reported Scope 1 and 2 greenhouse gas emissions for 2023.”
The report also cites successful employee-driven initiatives, including its U.K. Wrights Lane office eliminating single-use plastic and switching to reusable cutlery and serveware. The WMG office in France has eliminated paper cups and improved waste management to increase recycling.
Regarding sustainable products and merchandise, the company outlines “an industry-first method” of creating vinyl albums using PVC alternatives. Says the report: “We are delivering these changes in partnership with our artists and songwriters, many of whom are increasingly looking for ways to share music with their fans in a sustainable way.”
Read the full report here.
Big Machine Label Group has promoted two executives, with Mike Rittberg rising to COO and Clay Hunnicutt rising to executive vp of label operations. Both are already in their new roles and report to Big Machine Label Group president of label operations Andrew Kautz. Rittberg most recently served as Big Machine’s executive vp of label […]
BMG has entered into a strategic partnership with the TUM School of Management as it looks to fast-track the implementation of artificial intelligence across the Berlin-based company’s marketing campaigns for artists. BMG said in its announcement on Tuesday (Jan. 30) that it sees generative AI as a way to help manage the complex array of […]
Go to any given spa or yoga studio and you’re likely to hear music or soundscapes designed to help you relax. Sometimes the sound is of a pan flute, or soft rain. Most often, though, you’ll hear some form of ambient music: gentle, often instrumental “chill out” productions meant to enhance the serene atmosphere.
Now, two longstanding electronic music industry executives, in partnership with leaders in the wellness and music audio technology spaces, are getting into the genre through a new ambient label: Sacred Society Music Group.
The label is a project of founders Bradley Roulier, who also co-founded the electronic music digital download store Beatport in 2004, and Barbie Beltran, a wellness expert and co-founder of a Denver wellness center also called Sacred Society. Co-founders include Paul Morris — the founder of electronic agency AM Only, which was acquired by Paradigm in 2017, and Tiësto’s longtime manager — and Dolby Atmos specialist Adelio Lombardi. Matthew Evertsen handles A&R and special projects.
With Sacred Society, the label’s founders are aiming to heighten the quality and effectiveness of ambient music by producing its entire catalog in Dolby Atmos — a move they believe can increase the well-being of listeners who use the genre for relaxation, sleep and various wellness practices.
“As label owners, we felt we could make this music that is part of life extraordinary,” Roulier tells Billboard.
Based in Denver, the label launched this week with a collection of more than 55 tracks and over six hours of immersive content. A track named “Ancient Chant” features hand drum, a rain stick and lapping water with various bells and a voice repeating, “You have it all inside.” A meditation track, “Inside The Womb Of The Earth,” is precisely 11 minutes and 11 seconds long.
This music, organized by more than two dozen tags to help users find ambient sounds best suited for certain activities and times of day, is currently available on Apple Music, Tidal and Amazon Music. (It’s not yet on Spotify or YouTube, as those platforms don’t currently support Dolby Atmos.) So far the label features music from nine contributing musicians including Dynasty Electric, Matthew James Kelly, Cobane Ivory, Sean Stolar and Roulier himself, with all artists appearing under the “Sacred Society” name.
While a barrage of ambient music already exists on the market (a search for “ambient” on Spotify results in upwards of 30 playlists), the Sacred Society founders believe their output is distinguished by its production in Dolby Atmos. The spatial audio technology adds dimension and depth to music and can only be made, and played, through specialized equipment. The label founders claim that listeners will benefit from this technology; as Roulier says, by helping them “explore meditative and ambient soundscapes more deeply than [they] ever thought possible.”
Sacred Society Music Group’s side3 studio in Denver, Colo./Photo Courtesy Sacred Society Music Group
Sacred Society music is produced exclusively at Denver’s Dolby Atmos-equipped side3 studio, which was built by Lombardi. While construction of the studio required, as a Sacred Society rep says, “significant financial investment,” it was more intensive to set up the precise technical specifications necessary to record in Dolby Atmos.
But this investment was worth it, Lombardi tells Billboard, because “adding immersive audio to this [music] experience elevates it significantly.”
This may all sound like a niche endeavor, but there’s potential to tap a wide audience given how many people engage in wellness practices at home and how often this music is licensed for use in facilities like spas and yoga studios. Roulier says the group “wants our music to be widely available within the wellness space globally,” and has discussed launching a subscription service tailored for practitioners, hotels and spas that would allow them to use Sacred Society content commercially.
The demand for ambient music is also expected to grow; the label cites a report that says the genre was valued at $1.8 billion in 2022, with that number expected to rise to $3.21 billion by 2030. The demand for Dolby Atmos is also expanding, with the label citing a statistic that 90% of Apple Music users have engaged with the format, as well as that plays for music available in spatial audio have more than tripled in the past two years.
All this work is ultimately meant to deliver on the founders’ goal of sharing the holistic benefits embedded in the genre.
“I have always enjoyed ambient music, and I truly believe that music has the power to heal,” Morris tells Billboard. “With anxiety, depression, and mental health problems having escalated to unprecedented levels in our society, I can’t think of a more fitting time for the launch of Sacred Society Music. I have made a living from music my entire career and, by helping to put this music out into the world, I feel I am giving back in a small way through a medium that has given so much to me.”
“It’s about providing a unique and serene musical journey for our listeners, regardless of market trends,” Beltran adds. “We aim to offer a path to serenity, self-discovery and inner harmony through the transformative power of sound.”
During an October earnings call, Universal Music Group CFO Boyd Muir told investors the company was conducting “a careful review” of its costs. In the world of public company statements, that was a hint that UMG expected to make cuts to its workforce of roughly 10,000 — specifically hundreds of jobs in the first quarter of the year, as Bloomberg later revealed.
UMG has plenty of company. Until late last year, the music business had mostly escaped the job-cutting that ravaged industries that depend more on advertising in 2022 and 2023. That was still the best of times for the industry, which had found double-digit revenue growth in streaming. Since 2020, 10 music companies have gone public to take advantage of investors’ enthusiasm for music, including labels and publishers (UMG, Warner Music Group, HYBE, Reservoir Media, Believe, Round Hill Music Royalty Fund), streaming services (Deezer, Anghami, Cloud Music) and live-entertainment firms (a spinoff of MSG Entertainment).
That changed during 2023. In March, WMG’s new CEO, Robert Kyncl, a former YouTube executive, laid off around 270 people — 4% of the company’s workforce — to focus more on technology initiatives and “new skills for artist and songwriter development,” as he wrote in a memo to staff at the time. Downtown Music Holdings — owner of CD Baby, FUGA, Songtrust and more — also thinned its payroll in May. BMG laid off about 30 people in October. Digital music companies fared even worse in 2023: Spotify cut about 23% of its workforce in two rounds of layoffs, TIDAL cut 10%, SoundCloud cut 8%, and Bandcamp chopped half its head count after being acquired by Songtradr.
But UMG? The company’s revenue in the first nine months of 2023 was up 9.4% on a constant currency basis, 6.8% as reported due to foreign currency fluctuations. More than two years after spinning off from former corporate parent Vivendi, UMG is a profitable, hit-making machine that controlled 29.4% of the U.S. recorded-music market in 2023, easily besting Sony Music’s 18.9% and WMG’s 15.6%. It has Taylor Swift, Morgan Wallen, Drake and many other big stars. Perhaps understandably, there has been talk that other labels could follow, with cuts of one size or another.
UMG’s decision may be the most dramatic example of just how profoundly the music business is changing — and how quickly. Lean is the new black. Bloat, or anything that evokes it, is out. The old ways of finding, developing and marketing artists no longer work the way they used to. How big a radio promotion department does a label need — how many radio promotion departments does its parent company need — at a time when radio no longer plays as important a part in breaking hits? Social media and data analysis might matter just as much. So could developing markets that once didn’t account for much revenue.
UMG’s next focus, chairman/CEO Lucian Grainge wrote in a memo to staff in early January, will be “creating the blueprint for the labels of the future” by building the technology to do more work in-house, expanding in developing markets and finding ways to better monetize superfans. That requires moving resources away from the “legacy business,” Muir said in the October earnings call, to “benefit from all of the opportunities that we see ahead.” What that will mean for how UMG reshuffles its organizational chart remains to be seen, but it is already building an artist services business with Virgin Music Group and making aggressive moves in developing markets with investments in TM Ventures in India and Chabaka in the United Arab Emirates.
Other music companies are also reassessing their priorities. BMG’s staffing changes were spurred by new CEO Thomas Coesfeld as a response to an international marketing structure that didn’t meet expectations and duplicated the efforts of local teams, he wrote in a memo to staff.
“Businesses are repositioning themselves slightly to become more competitive,” Downtown Music president Peter van Rijn says. “One must always be mindful to not get complacent,” he adds, noting that his company needed to stay nimble enough to respond to the marketplace. “What you do see, in general, is the music industry is maturing. The digital growth is still there, but it’s slowing down.”
The world is changing, too. Along with the major labels, companies like Believe and Reservoir Media are investing in Africa, the Middle East, Southeast Asia and other regions where music revenue is growing. And both new companies and the established majors are expanding their artist services businesses to court creators who can now choose from among an increasing number of alternatives to a traditional major-label deal. Sony acquired the artist services company AWAL in 2022, UMG is building up Virgin, and WMG’s Kyncl wrote in an early-January memo that he wants to augment services to the “middle class of artists” and scale up the company’s publishing administration business.
Public companies in the music industry face pressure from investors to constantly improve their bottom lines, especially as streaming growth levels off. “Two-and-a-half years ago, we started making cuts because we knew the market was no longer about just growth,” says Rob Ellin, CEO of music streaming company LiveOne, which is cutting up to 100 staffers in a restructuring. “You had to be profitable.”
The growth-over-profits era finally ended at Spotify, too. When the streaming giant announced it would cut 17% of its global workforce in December, CEO Daniel Ek explained that costs were too high, efficiency was too low and too few people “contribut[ed] to opportunities with real impact.” Cutting roughly 1,500 jobs and seeking a replacement for CFO Paul Vogel, Ek wrote in an open letter, were necessary to become “relentlessly resourceful.”
Record labels and music publishers have better margins than Spotify, which will rarely turn a profit — but investors also expect more of them. In the first half of 2021, UMG — then a subsidiary of Vivendi — had a margin of 21.5% in earnings before interest, taxes, depreciation and amortization and told investors in August it expected to reach the “mid-20s” soon. Two years later, revenue had increased 34% but its EBITDA margin was almost unchanged at 21.5% (or 14.9% after deducting 345 million euros of noncash, share-based compensation for senior management). With layoffs can come better margins. Restructuring saved Warner $19 million in the fiscal year ended Sept. 30, and Barclays analysts estimated UMG’s layoffs could save the company $70 million annually.
To those who remember the crisis caused by the death of the CD, this talk of restructuring might have a familiar ring. As piracy ravaged the music business, the majors scaled back their physical distribution businesses, sold their CD pressing plants and retooled for a digital world. That’s why Grainge reminded investors that UMG is no stranger to managing disruption. “We’ve got decades of experience in executing cost-cutting programs in the various cycles of the industry, right back to the piracy days,” he said during the October earnings call. And currently, “we’re seeing a change in the business.”
Singer 4Batz, whose track “act ii: date @ 8” erupted on social media and streaming services during Christmas week, has sparked a bidding war among several major labels, sources familiar with the negotiations tell Billboard.
Four years ago, it was routine for previously unknown artists with viral singles to score big record deals in a matter of weeks. But that path slowed to a trickle in 2023, and some label executives started to worry about a stagnant climate for new artists.
That helps explain why many A&R executives are now eager to sign 4Batz. One executive calls the singer’s rapid ascent “the most exciting thing to happen in the last six months” in the music industry. Multiple major labels, including Republic Records, Atlantic Records and Warner Records, are in conversations with 4Batz’s team about a potential deal.
While he has released just two songs to date, they are already earning more than 9 million streams a week in the United States between them, according to Luminate. “act ii: date @ 8” leads the way, climbing to No. 76 on the latest Billboard Hot 100 chart. Due to this upward momentum, two sources familiar with the label negotiations say they are all but certain to end in a robust seven-figure deal for 4Batz. When another R&B singer, Muni Long, enjoyed a viral breakout with “Hrs and Hrs” late in 2022, her subsequent record deal came with an advance of around $5 million, according to a source with knowledge of the negotiations.
Legal counsel for 4Batz declined to comment.
In the heady early days of TikTok, it was common for half a dozen major labels to compete over a new act with a hot single. From 2019 through at least the end of 2021, this led to big deals for artists like Lil Tecca, Arizona Zervas, Ant Saunders and more. During that period, “it felt like every single day another artist signed a deal that was a gazillion dollars,” one music attorney told Billboard last year.
But as 2022 bled into 2023, fewer unsigned acts surged into view behind singles that streamed like crazy. Executives worried that virality on short-form video platforms no longer sparked listening the way it once did; sometimes what happened on TikTok stayed on TikTok.
At the same time, many label executives became disillusioned with the viral chase. Due to the intense competition around these deals, they invariably ended up being costly. (Though two of the acts who were able to translate viral energy into noteworthy Hot 100 success in 2023, the rapper Superstar Pride and the singer Oliver Anthony, both ended up remaining independent rather than taking a fat check from a major label.) The high cost of the deal put a lot of pressure on young artists to replicate their initial success quickly — to prove they were worthy of a hefty investment in a bottom-line-focused business. Many of the signings were unable to make the leap from popular song to popular artist.
“We’ve all been burned to a certain degree,” Tab Nkhereanye, a senior vp of A&R at BMG, said last year.
As a result, labels have been more circumspect when it comes to signing artists with viral singles in the last 18 months. They’ve also been trying to connect with more acts earlier in their careers via low-cost distribution deals; that way, they have a pre-existing contractual relationship if one of those signings starts to take off. (“act ii: date @ 8” was released through Vydia, a music tech company which is now part of the Larry Jackson-helmed gamma; this marks another win for Vydia, which also brought in Sexyy Red, one of last year’s few genuine breakouts.)
But 4Batz has shown staying power in recent weeks, spending all of January to date near the top of Spotify’s Global Viral 50. “act ii: date @ 8” is hypnotic and loop-able, with feathery come-ons and a slinky bass vamp; it already cracked the top 10 on the Hot R&B Songs chart, leapfrogging established artists like Brent Faiyaz (a clear influence on 4Batz).
R&B is on the upswing at the moment, which is another factor working in 4Batz’s favor. SZA and Victoria Monet dominated the latest Grammy nominations, with Janelle Monae and Coco Jones also scoring nods in the Big Four categories. In R&B, “it’s highly unusual for an artist to come onto the scene with the numbers and interest from labels” that 4Batz has, an executive says. “Normally an artist has to drop more music to get this level of attention.”
Rostrum Records has acquired distribution company and retail brand, Fat Beats.
The acquisition, announced today (Jan. 25), will give Rostrum artists direct backing from Fat Beats’ wholesale distribution, e-commerce support, and direct-to-consumer fulfillment with an open line to brick-and-mortar stores. In return, Fat Beats will join the Rostrum Pacific umbrella — Rostrum’s entertainment company — and continue to operate as their own entity with access to Rostrum’s various vehicles, including sister companies Spaceheater, Rostrum Pacific’s catalog marketing arm, and Rostrum Records.
“Fat Beats is a legendary brand that I’ve been a fan of for decades. From Rostrum Records to our most recent expansion of Rostrum Pacific, we’ve diligently outlined the next 20 years of our company. One of our goals has been to get vertically involved with physical distribution, and Fat Beats is a key part of that strategy,” Benjy Grinberg, Rostrum Pacific’s CEO and founder, tells Billboard. “Together, we can offer a level of professionalism, strategy, and forward-thinking that most physical companies lack. The ability to acquire Fat Beats and help it grow to new heights is incredibly exciting for us.”
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“As a pillar of the independent Hip-Hop community since 1994, it was important to me to ensure what we’ve built over the last 30 years is well cared for and respected,” adds Joe Abajian, founder of Fat Beats. “We have found the perfect custodians in Benjy and the Rostrum Pacific team, and we’re confident that Fat Beats now has the expertise and resources to continue growing well into the future.”
Along with acquiring Fat Beats, Rostrum announced that it would hire Kevin Engler as general manager of Fat Beats and Bobby Israeli as Rostrum Pacific’s head of e-commerce. For almost 20 years, Engler previously worked at UMG and was most recently vice president of Commercial Strategy at Ingrooves, a division of UMG, while Bobby Israeli will join Rostrum Pacific after leading the e-commerce teams and strategy for UMG’s East Coast labels, including Def Jam Records, Island Records, and Verve Music Group. Both will report directly to Rostrum Pacific COO Jonathan Partch.