Record Labels
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At the midyear point of 2023, Republic Records had put up a 12.46% current market share — defined as albums released in the past 18 months — which was a remarkable figure, and more than 4.5% higher than the second-largest label. Now, as 2023 has come to a close, Republic finished the year even higher, reaching an eye-popping 13.47% current market share for the year. That’s the highest full-year mark since at least 2015, when streaming began to lift the industry out of its post-CD doldrums, and more than 3% higher than its current share in 2022, which was a then-industry-leading 10.38%.
Republic’s high-water mark stems from a combination of both enduring releases dating back to the end of 2022 and massive albums from two of the biggest stars on the planet this year: Taylor Swift and Morgan Wallen. For full-year 2023, Swift and Wallen (signed through Republic’s deal with Big Loud, which on its own commanded a 2.33% current share) combined for seven of the top 10 albums in U.S. consumption units, according to Luminate, including four of the top five. With Metro Boomin’s Heroes & Villains ranking at No. 10, Republic had an astonishing eight of the 10 biggest albums in the United States in 2023. And Republic’s fourth quarter was even more dominant: In the final three months of the year, the label’s current market share ballooned to 16.79%, buoyed by new albums from Drake, Nicki Minaj and Stray Kids. That’s higher than the current share of the entire Warner Music Group across that three-month period, which stood at 15.50%.
Following Republic — which includes Island, Big Loud, Mercury Records, Cash Money and indie distributor Imperial in its market share — Interscope Geffen A&M (IGA) came in second in current share, at 8.80%, up from the 8.72% it tallied in 2022. The label — which also encompasses Verve Label Group — scored another big success with Olivia Rodrigo’s sophomore album GUTS. It also saw critical acclaim for Verve’s Jon Batiste, once again a Grammy darling, and continued its extremely strong recent track record of breaking new artists, with Gracie Abrams up for best new artist at this year’s Grammys — a category the label has won in three of the past four years.
The success of Republic and IGA helped parent company Universal Music Group roar back to a 35.84% current market share for 2023, jumping two points year over year from 2022’s 33.57%. In second, Sony Music Entertainment also grew year over year, up to 27.08% from 2022’s 26.99%, while Warner Music Group dipped to 16.95%, down from last year’s 18.30%. The indies, by distribution ownership, accounted for 20.13% current market share, down from 21.14% in 2022.
In third and fourth place in current share among frontline labels are a pair of Warner Music Group labels, Atlantic Records (6.83%, down from 9.15% in 2022) and Warner Records (5.96%, up from 4.86% in 2022). Atlantic (encompassing 300 Elektra Entertainment), which dipped from second to third place year over year, scored a big win with the Barbie soundtrack as well as No. 1s from Lil Uzi Vert and Jack Harlow, despite a two-plus point percentage drop in current share. Meanwhile, Warner Records — which includes Warner Latin, catalog label Rhino and parts of Warner Nashville in its share — surged from sixth place last year to fourth place this year with a more than 1% boost. Zach Bryan’s self-titled album and No. 1 Hot 100 single “I Remember Everything” led the way, with Bryan landing at No. 4 on Billboard’s year-end Artist 100 ranking and his “Something in the Orange” being the third-most-streamed song of 2023.
In fifth, Capitol Music Group also saw a big year-over-year boost in current share, from 4.97% in 2022 to 5.90% in 2023. The label — which remains in fifth place despite the jump in share and encompasses Motown/Quality Control, Blue Note, Astralwerks, Capitol Christian and indie distributor Virgin Music — enjoyed the breakout success of Ice Spice (signed in conjunction with 10K Projects) in the past year as well as a top 10 Hot 100 single from Toosii.
Sixth place in current share belongs to RCA Records at 4.70%, a one-spot jump over last year when it came in with 4.65%. The label, whose market share does not include any other labels or distributors, benefited from the enduring success of SZA’s multi-Grammy nominated S.O.S. album, the third-biggest project of 2023, as well as huge hits from Doja Cat, Tate McCrae and Ateez, the latter of which landed a No. 1 album in the fourth quarter. Dropping into seventh is Columbia at 4.67% of current share, down from fourth in 2022 when it had a 6.67% share. Columbia, which includes some labels from indie distributor RED in its market share, still racked up a big hit with Miley Cyrus’ “Flowers,” which spent eight weeks at No. 1 on the Hot 100 this year on its way to becoming the fourth-most-streamed song of 2023 and the most-heard song on radio in the United States, according to Luminate.
In eighth, Sony Nashville jumped a half percentage point year over year to 2.32% from 1.89% last year, with a big Luke Combs album helping it rise one spot from last year’s ranking. Meanwhile, Sony’s Epic Records slipped to ninth year over year, despite boosting its current share from 2.23% in 2022 to 2.30% in 2023 and scoring a pair of big projects from Travis Scott — whose Utopia album was the seventh-biggest of 2023, according to Luminate — and Tyla with “Water,” which roared into the Hot 100’s top 10 late in the year. Rounding out the top 10 is yet another Sony label, Sony Latin, which also had a huge year, upping its current share from 1.24% in 2022 to an impressive 1.95% in 2023.
In overall market share, Republic’s dominance with newer releases lifted it to the No. 1 slot over IGA, 9.83% to 9.65%, despite the latter’s industry-leading 9.93% share of the catalog market. Atlantic, at 8.09%, sits comfortably in third, while Warner Records and Capitol Music Group are neck-and-neck in fourth and fifth, with 6.68% and 6.66% overall share, respectively, with their catalog shares tied at 6.92%. Columbia’s 6.65% catalog share is enough to lift it into sixth in overall share, ahead of RCA, with the two separated at 6.14% and 5.16%, respectively, in overall share. Epic (2.61%), Sony Nashville (2.05%) and Def Jam (1.84%) round out the overall top 10 rankings.
Among the label groups, the weight of catalog once again lifts all ships, with UMG jumping to an industry-leading 38.46% overall market share, up from 37.54% in 2022. Sony also saw an increase year over year, ending 2023 at 27.18%, up from 2022’s 26.87%, while Warner dipped slightly year over year, to 18.62% in overall share in 2023 compared to 19.05% in 2022. The indies by distribution ownership also fell, to 15.74% from 16.54% in 2022.
Taylor Swift dominated the U.S. market in 2023 by accounting for 1.8% of music consumption and one out of every 78 audio streams, according to Luminate’s 2023 year-end report released Wednesday (Jan. 10). But even without Swift, last year Americans streamed a record amount of music and purchased more albums than the year before.
U.S. music consumption grew 12.6% in 2023 to 1.1 billion units (measured as album sales plus track equivalent albums and streaming equivalent albums). With that double-digit gain, the U.S. market easily exceeded the 9.2% improvement from 2022 and had its biggest one-year gain since consumption grew 15% in 2019.
The streaming market picked up momentum in 2023 despite on-demand services already reaching mainstream status and subscription prices increasing in recent years. On-demand song streaming — both audio and video — climbed 14.6% to 1.5 trillion streams, an improvement on the 12.2% growth in 2022 and 10% growth in 2021. On-demand audio streams from services such as Spotify and Apple Music rose 12.7% to 1.2 trillion.
It was another good year for vinyl LPs and CDs as consumers continued to keep the album format alive in an era of single-serving music. Overall U.S. album sales rose 5.2% to 105.3 million — a rebound from 2022, when overall sales fell by 8.2%. Physical album sales grew 8.9% to 87 million while digital album sales fell 9.3% to 18.3 million.
Repeating a trend seen in recent years, the music Americans consumed in 2023 got a little older. The share of album consumption for catalog — releases more than 18 months old — was 72.6%, a slight increase from 72.2% in 2022. Total catalog album consumption increased 13.2% to 796.8 million units. Current music’s share of album consumption dropped to 27.4%, though current album consumption still increased in unit terms, rising 10.9% to 300.4 million units.
In the year it celebrated its 50th anniversary, hip-hop was the most popular genre in the United States with a 25.3% share of album units (album sales plus track equivalent albums plus streaming equivalent albums) — even though no hip-hop song topped the Hot 100 until Doja Cat’s “Paint the Town Red” did it in September. Rock was No. 2 with a 19.4% share and pop was No. 3 with a 12.3% share. Country and Latin rounded out the top five with 8.4% and 6.9% shares, respectively.
Rock led album sales with a 41.5% share, more than triple No. 2 hip-hop’s 12.9% share and No. 3 pop’s 12.7% share. Country was No. 4 with a 7.8% share and World — mainly K-pop — was No. 5 with a 6.9% share.
In terms of growth rate, World music — which also includes J-pop, or Japanese pop, and Afrobeats — topped all other genres with a 26.2% increase in U.S. on-demand audio streams to 5.7 billion. No. 2 Latin was close behind with 24.1% growth but was far larger with 19.4 billion on-demand audio streams. Country was No. 3 in terms of growth, up 23.7% and with a total of 20.4 billion on-demand audio streams.
On the other end of the spectrum was comedy, which excels at YouTube and TikTok but lost 10.2% of its on-demand audio streams in 2023. New age fell 6.9% and children’s music dropped 6.2%.
Led by Peso Pluma, Regional Mexican grew 60% to 21.9 billion U.S. on-demand audio streams, with Peso ranking No. 43 overall in U.S. on-demand audio streams with 1.9 billion. Another rising Regional Mexican artist, the group Eslabon Armado, amassed 1.3 billion U.S. on-demand audio streams — good for No. 71 overall.
J-pop totaled 1.67 billion on-demand audio streams (of J-pop tracks ranked in the top 10,000 world music songs). J-pop’s success comes from a youth movement: Fans are 95% more likely than the general population to be Generation Z and 94% more likely to identify as LGBTQ+, according to Luminate.
Direct-to-consumer album sales increased 38.6% to 11.8 million units as record labels put greater resources behind selling albums to their fans from artist and label websites. Rock was the D2C leader with a 38.6% share, followed by pop with 18.3% and R&B/hip-hop with 13.2%. D2C vinyl sales grew by 1.9 million to 6.8 million, up from 4.8 million in 2022. D2C CD sales rose 400,000 units to 3.9 million, up from 3.5 million.
The average U.S. monthly spend on music increased to $116 in the third quarter of 2023 from $96 in the prior-year quarter. That was about even with the $117 average monthly spend seen in the full-year 2021. Live music accounted for 62% of average monthly spend.
Globally, on-demand song streams — both audio and video — reached 7.1 trillion, up 33.7% from 2022. Global audio on-demand streams totaled 4.1 trillion, up 22.3%.
The United States ranked first globally in total streaming volume with 1.45 trillion, approximately 40% ahead of No. 2 India’s 1.04 trillion and nearly four times No. 3 Brazil’s 374 billion. But India ranked No. 1 in new net streams with 463.7 billion, an increase of 81% from 2022, while the United States ranked No. 2 with 184 billion net new streams and Indonesia was No. 3 with 93.1 billion net new streams (and No. 5 in total streams with 235.5 billion).
Universal Music chairman/CEO Lucian Grainge has released his annual New Year’s memo to staff today (Jan. 9), and used the moment to largely congratulate the world’s largest music company on what was, by many metrics, a huge year for the label and publishing conglomerate.
In his 2,500 word note, obtained by Billboard, Grainge went over many of the points that he raised in his New Year’s note in 2023, when he called for an “updated model” for the music industry, calling for streaming royalty reform in the face of increased fraud and a flood of non-artist music on platforms, and a forward-looking policy in confronting the challenges and opportunities brought by AI, including government protections for copyright and creators. And in this year’s letter, he touted UMG’s achievements on those fronts in the past year, citing the “several global platforms, including the world’s largest music platform, have already adopted artist-centric principles that will transform the way artists are compensated for their work,” referencing new royalty models proposed by Deezer, Spotify and others.
And on the AI front, Grainge cited UMG’s Responsible AI initiative, which lobbied the U.S. Congress on behalf of creators in protecting their works, as well as UMG’s partnership with YouTube to allow artists to develop tools to be able to utilize the advances that AI has brought. Grainge also mentioned UMG’s efforts in the spaces of health and wellness, climate change, sustainability and societal change, through its many task forces and foundations that have fought to promote and donate to coalitions that have helped feed the homeless, promote initiatives that use music to contribute to improved mental and physical health and other initiatives, including increased health care opportunities for musicians and their families.
And he also touted the massive success of UMG’s artists, publishing clients and labels, which dominated year-end charts, including Billboard’s. “To put it succinctly: UMG is the most successful company in the history of the music industry and every one of us should be enormously proud of what we have accomplished together, let alone what I know we will accomplish going forward,” Grainge wrote.
In shifting towards the future, Grainge first noted that UMG had continued its global expansion in the past year, particularly through the expansion and restructuring of distribution company Virgin Music Group, in the Middle East/Northa Africa, Thailand, India and China, to name a few. That is a plan that Grainge says promises to continue: “We will keep growing our presence around the world by doing just what we do in more established music markets: signing and developing local artists; providing local labels and entrepreneurs with global promotion, distribution, and a full suite of artist services; and acquiring local labels, catalogs and artist services businesses.”
In terms of other plans for 2024, Grainge notes that “both the pace of change and our industry leadership will increase significantly.”
In his 2023 note, Grainge wrote about the importance of addressing streaming royalty reform and making sure artists get their deserved share of the royalty pie; in 2024, he’s focused more on “grow[ing] the pie for all artists, by strengthening the artist-fan relationship through superfan experiences and products.” Grainge says that will be accomplished both through internal improvements and through partnerships with various platforms. And he promised to continue their already-underway push in protecting and promoting creators’ voices in the AI discussion.
“In short,” Grainge writes, “We are creating the blueprint for the labels of the future.”
What that blueprint may look like is still to come, however; Grainge also notes that the company will “further evolve our organizational structure,” suggesting that changes to how the overall company operates are on the horizon.
“As you know, over the past several years, we have been investing in future growth, not just expanding geographically and leveraging new technologies, but building our e-commerce and D2C operations,” Grainge writes. “In 2024, as we continue our industry-leading investments in A&R and artist development, we will further evolve our organizational structure to create efficiencies in other areas of the business, so we can remain nimble and responsive to opportunities as they arise, while also taking advantage of the benefits of our scale. In the face of so much change and opportunity, standing still is never an option.”
Read Grainge’s full New Year’s note to staff below.
Dear Colleagues,
Happy New Year! I want to express my deepest gratitude to every one of you for all of your hard work and also to take a few moments to review with you some of the highlights of 2023 and preview some of what’s to come in 2024.
Once again, 2023 saw Universal Music lead the industry in all major financial and competitive performance metrics, at the same time our artists broke records and topped the charts around the world. To put it succinctly: UMG is the most successful company in the history of the music industry and every one of us should be enormously proud of what we have accomplished together, let alone what I know we will accomplish going forward.
In fact, even beyond our artists’ extraordinary achievements and our financial results, there was so much more to be proud of this year.
By the beginning of 2023, it had become obvious that if the industry were to continue to thrive and the value of our artists’ work respected, a number of critically important issues would have to be confronted. As the industry leader we had a clear vision of how to address these issues. And then we went out and took bold steps to turn that vision into reality.
Last January, for example, I wrote to you about the streaming royalty model. A new model was needed, one that would properly reward the artist-fan relationship and disincentivize fraud and gaming the system. Because artists are at the center of everything we do, we called it the “Artist-Centric Model.”
I’m proud to say that in just a matter of months, several global platforms, including the world’s largest music platform, have already adopted artist-centric principles that will transform the way artists are compensated for their work. In the coming months, I believe you will see more platforms adopting these principles. Why? Because it is the right thing to do both for artists and for the wider music ecosystem. As this new model becomes widespread, the impact will be profound: a healthier, more equitable and more vibrant music ecosystem that rewards all artists — be they major, indie or DIY — at all stages of their careers.
In the same way, we showed the industry the way forward when it came to confronting the challenges and opportunities of AI.
Early on in 2023, many “experts” viewed AI as a looming threat. Our view? Just as we had done with so many other previous proclamations of doom, we rejected that short-sighted appraisal. On the contrary, we saw AI as presenting opportunities. And then, just as we did with streaming, we went out to turn those opportunities into reality.
We launched our Responsible AI initiative this year with two goals in mind. First, to lobby for “guardrails,” that is public policies setting basic rules for AI. In the U.S., for example we are lobbying for legislation that would establish a federal right of publicity to harmonize the protections of artists’ image, likeness and voice from AI deepfakes. We were the first music company to call upon the U.S. Congress to protect artists against unethical uses of AI.
Our second goal was to forge groundbreaking private-sector partnerships with AI technology companies. In the past, new and often disruptive technology was simply released into the world, leaving the music community to develop the model by which artists would be fairly compensated and their rights protected. In a sharp break with that past, we formed a historic relationship with our longtime partner, YouTube, that gives artists a seat at the table before any product goes to market, including helping to shape AI products’ development and a path to monetization.
Because we fundamentally believe the best way to ensure responsible AI development is through partnership and market-led solutions, in addition to YouTube, we are collaborating with several platforms on numerous opportunities and approaches — always with artists at the forefront of our thinking. In addition, our artists have begun working with some of the latest AI technology to develop tools that will enhance and support the creative process and produce music experiences unlike anything that’s been heard before. And to leverage AI technology that would benefit artists, we continue to strike groundbreaking agreements with, among others, Endel and BandLab.
We also advanced our initiatives in areas from health and wellness to sustainability and the environment.
The intersection of music and health is another exciting area about which I am especially passionate. We’ve all had experiences in which music changed our mood or comforted us in times of emotional crisis, or even helped us physically. In fact, it’s one of the reasons why so many of us have chosen to spend our careers in music. I’ve long wanted the powerful relationship between music and health to be more than a handful of subjective observations and anecdotes so that it could become a key component of our strategy.
Building upon our success in creating a robust commercial category in fitness, we’re now leading the industry in music and health. In September, we produced the first-ever Music + Health Summit where we brought our artists together with health entrepreneurs and leading neuroscientists to advance this new category. This came on the heels of us entering into a series of more than 40 license agreements to amplify the possibilities in this space. For example, we are pioneering a new category that we call “prescription music,” an evidence-based health technique built on scientific and medical research. What excites me is that it’s cost-effective, non-invasive and drives truly beneficial results. While it’s a field still in its infancy, this area will become an increasingly important component of our strategy.
In the same spirit of promoting positive change in society, our employees also accomplished amazing things. Throughout 2023, our All Together Now Foundation, Task Force for Meaningful Change, Green Team, Unhoused Coalition, and Employee Matching Program contributed to more than 500 organizations around the world, and supported over 1.2 million meals for those in need.
Moreover, in the more than three years since we established a groundbreaking relationship with the non-profit Music Health Alliance (MHA), 500 UMG and UMPG recording artists, songwriters and their families in the U.S. have received life-changing medical care. With this year’s dramatic jump in the need for mental health care within the artist and songwriter community, the MHA partnership significantly increased its support in that area.
Our efforts to move the industry on issues concerning sustainability and the environment led UMG and Bravado to host the first music industry sustainability summits in L.A., London, and New York. The series brought together industry leaders and innovators who made commitments to institute sustainable solutions across a range of categories including events, merchandise, touring and more. We co-founded the Music Industry Climate Collective, the new music industry alliance to address global climate change. And we became the first standalone major music company to win the approval of its greenhouse gas emission reduction targets by the Science Based Targets initiative, the gold standard for establishing corporate climate goals.
All of these initiatives are of course ultimately powered by the success of our artists and songwriters and the support that our employees around the world provide them. So let’s turn to the achievements of our artists and songwriters which were nothing short of astounding in 2023. Here are just a few examples.
Globally in 2023, UMG had:
On Spotify: Six of the Top 10 global artists: Taylor Swift (at No. 1), The Weeknd, Drake, Feid, Karol G and Lana Del Rey.
On Apple Music: 13 of the Top 20 most-streamed songs globally, with Morgan Wallen’s “Last Night” at No. 1.
On Deezer: The three most-streamed artists worldwide with The Weeknd, Taylor Swift and Imagine Dragons.
On YouTube: Three of the Top 5 songs, with Toosii’s “Favorite Song” at No. 1.
On Vevo: Karol G was the ‘Most Watched Artist’ for the third consecutive year.
On Amazon: The top two artists (Taylor Swift and Morgan Wallen), three of the Top 5 songs and albums, and the world’s most requested artist on Alexa (Taylor Swift).
And to break it down by region:
On Spotify: The four most-streamed artists in the U.S.: Taylor Swift, Drake, Morgan Wallen and The Weeknd.
On Apple Music: Five of the top seven songs in the U.S., with Morgan Wallen’s “Last Night” (at No.1), and “You Proof”; Drake & 21 Savage, “Rich Flex” and “Spin Bout U”; and Lil Baby “Freestyle”.
On the Billboard 200: Six of the Top 10 albums—Morgan Wallen’s One thing At A Time (No. 1), Taylor Swift’s Midnights (No. 2), Drake, 21 Savage’s Her Loss, Metro Boomin’s Heroes & Villains, Morgan Wallen’s Dangerous: The Double Album and Taylor Swift’a Lover;
Republic Records was named Billboard’s top label for the third consecutive year.
In the UK, according to the Official Charts Company, UMG had seven of the Top 10 artists, including Taylor Swift at No. 1, Drake and The Weeknd in the top five.
Also in the UK, UMG had all of the three nominees for the prestigious 2024 BRITs Rising Star award, with Island’s The Last Dinner Party taking the award, marking the third consecutive year a UMG artist has won.
In Germany, after having ALL of the Top 10 albums for a week in mid-November, a feat never before accomplished by any company; UMG finished the year with six of the Top 10 albums.
In Japan, UMG had five of the Top 10 albums according to Billboard Japan, including King & Prince at No. 1, while Ado’s single “Show” held the top spot on the weekly streaming chart for 14 consecutive weeks to finish the year.
In France, UMG had five of the Top 10 tracks overall, and three of the Top 5 tracks on Apple Music.
In Australia, UMG had the No. 1 album for 34 weeks this year, with albums from Taylor Swift, Sam Smith, Morgan Wallen, Lana Del Rey, Metallica, Peach PRC, Lewis Capaldi, Niall Horan, G Flip, Powderfinger, Olivia Rodrigo, Drake, Troye Sivan and The Rolling Stones.
In Canada, UMG had eight of the Top 10 albums, including albums from Morgan Wallen at No. 1, Taylor Swift, Metro Boomin, and The Weeknd, and held the No. 1 album for 33 weeks this year.
UMG Sweden’s Loreen won the Eurovision Song Contest with her single “Tattoo” and UMG Sweden had five of the Top 10 artists on Spotify.
At the Latin Grammys, Karol G swept three major awards, including Album of the Year, and Juanes won Best Pop/Rock Album, marking his 25th Latin Grammy award.
Feid continued his massive rise in 2023, as the third most-streamed Latin artist on Spotify, while Sebastián Yatra was recognized as “Artist of the Year” at the 2023 RIAA Honors.
In China, Wu Qingfeng’s Mallarme’s Tuesday won “Album of the Year” at the Golden Melody Awards.
In Indonesia, “Tak Segampang Itu” by Anggi Marito was the top song of the year on Spotify.
Juan Karlos became the first artist from the Philippines to enter the Top 100 Global Spotify Charts with his song “Ere,” which was No. 1 in the Philippines for 10 weeks.
Our Universal Music Publishing Group songwriters also performed spectacularly:
On Spotify’s 2023 most-streamed artists globally, we had four out of the Top 5 (Taylor Swift, Bad Bunny, The Weeknd and Drake) and seven out of the Top 10.
On Spotify’s most-streamed albums globally, we had four of the Top 5 (Bad Bunny, Taylor Swift, SZA, The Weeknd) and seven of the Top 10.
On Apple Music: UMPG had an interest in seven of the Top 10 most-streamed songs in the U.S.
On Billboard’s Hot 100 Songwriters in the U.S., UMPG had three of the Top 5 with Taylor Swift, Jack Antonoff and SZA.
In total, a spectacular performance. We should all be so proud of our artists and songwriters and the work we do to bring their music to the world.
In 2023, we also continued our strategy to expand our presence in high growth markets around the world — both through the strength of our companies in those regions as well as the expansion of Virgin Music Group.
We acquired Chabaka Music, a leading MENA-based company, as well as a majority stake in RS Group in Thailand.
In India we strengthened our position domestically with an exclusive partnership with Represent, a leading management company.
In China we signed new long-term agreements with superstar Eason Chan and with 2022’s No. 1 IFPI global album seller Jay Chou, that includes his JVR Music label.
Looking to 2024, both the pace of change and our industry leadership will increase significantly. We’ll be moving quickly and meaningfully on many different fronts.
Our pioneering artist-centric strategy will extend its reach. We first focused on a fairer way to allocate the streaming pie among real artists by addressing fraud and other aspects that deprive artists of their just compensation. The next focus of our strategy will be to grow the pie for all artists, by strengthening the artist-fan relationship through superfan experiences and products. We are already in advanced discussions with our platform partners regarding this phase and will have more to announce in the coming months. In addition, we will be building our in-house capabilities through groundbreaking partnerships that will accelerate our artists’ ability to create experiential, commerce and content offerings for their fans. In short, we are creating the blueprint for the labels of the future.
As for AI, we will continue building opportunity for our artists, while also leading the fight to protect them from unethical uses of this technology. And all around the world, we will continue to prioritize and fight for policies in the service of artistry — not at the expense of it. We also expect to announce more real-world commercial applications for artist-driven, ethical AI.
We will keep growing our presence around the world by doing just what we do in more established music markets: signing and developing local artists; providing local labels and entrepreneurs with global promotion, distribution, and a full suite of artist services; and acquiring local labels, catalogs and artist services businesses.
As you know, over the past several years, we have been investing in future growth, not just expanding geographically and leveraging new technologies, but building our e-commerce and D2C operations. In 2024, as we continue our industry-leading investments in A&R and artist development, we will further evolve our organizational structure to create efficiencies in other areas of the business, so we can remain nimble and responsive to opportunities as they arise, while also taking advantage of the benefits of our scale.
In the face of so much change and opportunity, standing still is never an option.
We must continue to fight for our artists and songwriters and stand up for the creative and commercial value of music.
Our vision of the future is filled with possibilities, and acting on our strategy will make those possibilities real — for our artists, our employees, our shareholders and the entire music ecosystem.
I promise 2024 will be an extremely exciting and transformative year for our company.
Lucian
Did You Get the Memo? Read Last Year’s Note From Lucian Grainge
Republic Records has a big week in the Billboard 200 albums chart’s top 10, as the label is home to a whopping eight of the top 10 titles on the list dated Jan. 13. Since Luminate’s electronically monitored music data began powering the chart on May 25, 1991, no label had previously held eight of […]
Now that Warner Music Group chairman/CEO Robert Kyncl has had a full year at the helm of the major label, he has released a New Year’s note to staff, obtained by Billboard, outlining a plan to kick into gear and set the company up for the next 10 years of changes in the music business.
In the note, Kyncl says he’s referring to the year 2024 as “The Year of the Next 10 — the year when we move at velocity to set ourselves up for a winning decade in the new world.”
“As we start the new year, one thing I’d like us all to remember is that our world has fundamentally changed… the music business is in a very different place than it was 10 years ago,” Kyncl writes. “Now, we’re in a position of strength. That is the time to get ahead for the future.”
He then emphasizes three key areas that he sees as crucial for the next year: growing the engagement with music; increasing the value of music; and evolving how the team works together.
On the first point, Kyncl breaks it down into four main focus points. The first, he writes, is about focusing A&R more on capturing opportunity, including geographically (“based on where artists and songwriters come from and where their streams are going”) and looking forward, as with identifying genres that will grow in the future. The second, in marketing, he emphasizes the partnership between marketing, A&R, tech and business intelligence to better focus efforts and better use the data available. The third, in catalog, emphasizes the ability to market and promote WMG’s extensive catalog on the same lines as it does its frontline music, particularly in digital optimization, given that catalog is driving some 70% of consumption in the current market. And finally, he emphasizes distribution and administration, in beefing up both the services available to the “middle class of artists” and in the major’s publishing admin business, which he wants to scale up further.
The second point, focusing on value, is about solving in 2024 for some of the conversations that rose up and started to dominate in 2023: namely, the value of artists and music on streaming platforms, as well as the issues surrounding the dilution of the royalty pool from the likes of functional music and white-noise tracks. Kyncl has previously spoken about the importance of streaming services raising prices, which many did in the past year, which he stresses as well. And finally, he stresses the need to further develop artist-to-superfan relationships, which he calls “relatively untapped and under-monetized,” though notes that WMG has initiatives in the works in many of these areas already.
The final point, on working together, is about reorienting how the WMG team works, including through leaning into expertise, transparency, flexibility, collaboration across departments and within teams, relying on metrics and not being afraid to lead rather than follow the industry.
Kyncl also takes time to point out some of WMG’s successes in the past year, including big years by the likes of Zach Bryan, Jack Harlow and Gunna; returns from Dua Lipa, David Guetta and Ed Sheeran; and catalog victories for the music of David Bowie, Madonna and Talking Heads, among others, while looking forward to new music from Gabby Barrett, Maria Becerra, Green Day and more.
Looking at the past several decades in 10-year chunks is a useful way of catching snapshots of how markedly things have changed. In 2004, the CD boom had decidedly stalled, as piracy began to take chunks out of the record industry and the business was in the midst of its protracted struggle with piracy and the digital revolution. By 2014, the industry had effectively bottomed out, with recorded revenues hitting their nadir as streaming had been introduced but had yet to catch on as a viable, much less dominant, format for the business. Now, in 2024, with streaming far and away the biggest source of revenue for a booming business, the revenue model is being hotly scrutinized, as new technologies and increasing fraud and volume threaten to overwhelm the now-established status quo.
In that respect, Kyncl sees this year as a pivotal one to answer several of these big questions, and set WMG up for the next decade of challenges and opportunities in the business. “We’re going to fuel the growth of this company using the same resourcefulness and determination with which we develop our artists and songwriters,” he writes. “Because ultimately that’s what will serve them best.”
Alfredo Delgadillo has been appointed president and CEO of Universal Music México, Billboard can exclusively announce.
Previously Universal Music México’s managing director, Delgadillo’s newly-expanded role includes Universal Music Group’s regional Mexican label, Fonovisa-Disa. The Mexico City-based executive will continue to report directly to Jesús López, chairman/CEO, Universal Music Latin America & Iberian Peninsula.
“We are in a unique moment of growth for Latin music and Regional Mexican music, so this new responsibility comes with an even stronger commitment to continue growing the success and reach of our artists both in Mexico and around the world, alongside growing our live and management businesses,” Delgadillo said in a statement.
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“Now with the addition of the Fonovisa-Disa labels,” he continued, “I am looking forward to working closely with its leader Antonio Silva, for whom I have absolute respect and their entire team, to ensure that the legacy of Fonovisa-Disa, as the symbol and leader of Regional Mexican music, continues to grow and expand to the rest of the world.”
After a 10-year run with EMI Music México, Delgadillo returned to Universal in 2013 (when UMG acquired EMI) as general manager of Universal Music México, and in 2017 was promoted to managing director where he was key in the development of local acts, such as Mon Laferte and Caloncho, while contributing to the growth of international acts in Mexico like J Balvin, David Bisbal, Metallica, U2 and Taylor Swift, among others.
During his time with the label, the industry veteran, who began his career at Universal Music México in 1998, has overseen strategies to “take UMG’s international acts to the top of the Mexican charts” and “was responsible for the development and consolidation of Global Talent Services (GTS),” according to a press release.
“Alfredo is an executive with extensive experience in all fields of entertainment, including records, management and touring,” added Jesús López, Universal Music Latin America and Iberian Peninsula chairman and CEO. “He has incredible leadership capacity and a great track record of developing and integrating young executives into his teams. These are among the many reasons for his ongoing success at Universal Music Mexico. I wish him every success in his new mission within the company. He has the support of our entire team.”
On Friday (Jan. 5), the band’s fans began expressing concern online upon noticing that its website and socials had been wiped clean. As a source confirms to Billboard, the fresh start follows the expiration of the band’s 20-year contract with Atlantic Records in late December, meaning the Hayley Williams-fronted group is now a free agent. […]
The first No. 1 of 2024 on Billboard’s Hot Latin Songs chart belongs to 19-year-old Mexican-American artist Xavi, whose “La Diabla” (“The She-Devil”) is a romantic tumbado about a bad boy romancing a bad girl to the tune of a crunchy requinto guitar. Out on Interscope, the song, which rose from No. 4 to No. 1 post-Christmas, is Xavi’s first No. 1 on any Billboard chart. It also topped Spotify’s Global Top 50, a first for a solo regional Mexican act.
Xavi (short for Joshua Xavier Gutiérrez) also scored his fourth week atop Billboard’s Latin Songwriters chart on the strength of “La Diabla,” his previous single “La víctima” (which rose from No. 7 to No. 5 on Hot Latin Songs this week), “Poco a Poco” with Dareyes De La Sierra (at No. 18) and “Modo DND” with Tony Aguirre (at No. 21).
It’s quite a performance for the relatively unknown singer-songwriter from Arizona, who was signed to Interscope two years ago when he was still in the early TikTok stage, with no viral hit to his name.
“We have great respect for the indie labels, but it’s not like he was going viral and we signed him,” says Manny Prado, vp of marketing and A&R for Interscope. “I think it’s a big success for a major label that we were able to get an artist from zero to the global charts, and hopefully next he’ll become a global superstar.”
Prado, who spent two decades with Sony U.S. Latin, most recently as head of West Coast operations, moved to Interscope in August and took over a blooming regional Mexican roster that also includes Gabito Ballesteros and Iván Cornejo. While he works with all genres of Latin music in his new position, as a Mexican-American, the rise of regional Mexican music has been particularly gratifying, he says. Regional Mexican music — the broad umbrella term given to dozens of subgenres like banda, norteño, corridos and sierreño — has always been one of the foundations of Latin music’s success, both in the United States and Mexico. But it only entered the global consciousness — and the Hot 100 — in the past two years.
Now, Xavi is part of a new generation of very young Regional Mexican artists whose music is currently the dominant Latin presence on the Hot 100 and the global Latin charts overall. But, unlike most rising stars, who first enter the upper echelons of the charts aided by collaborations and big-name partnerships, Xavi has done so alone. Both “La Diabla” and “La víctima,” his two big hits, are solo efforts by design. Since signing him, Interscope has focused on developing both his style and his songwriting. His more romantic approach — Xavi has yet to enter “bélico,” or drug-related songwriting terrain — coupled with a baby face and a vibrant, acoustic sound, has given him broad appeal. And Interscope’s focus on social amplification has taken his music even further.
In recognition of Xavi’s Hot Latin Songs chart feat, Prado is Billboard’s Executive of the Week. Below, he talks about the rise of Regional Mexican with a younger generation, why they decided not to make “La Diabla” a duet, how they plan to broaden Xavi’s reach beyond the Latin audience and more.
You’re based in Los Angeles but report to Nir Seroussi, who runs Interscope’s Miami office, with a growing Latin roster. How important is Mexican music within that?
Here at Interscope, we don’t have an “Interscope rock” or an “Interscope country,” and we don’t have a division we call Latin or Mexican. What we do is we assemble a specific team depending on the artist, and I’m in charge of all the “Miami” roster, [including] Kali Uchis and Karol G. Regional Mexican has grown exponentially. We already had Xavi when I came in, as well as Iván Cornejo and Marca Registrada [among many others]. And the common theme is they’re all young. The majority are Mexican-American, which I love, born in the United States, just like me. My parents are Mexican immigrants, so for me, it’s an honor to work with these types of artists that I have so much in common with. It’s all about respecting each individual artist, having the deepest respect for their roots and giving them the service they want. Sometimes we work with our general-market company. We don’t have borders.
Regional Mexican music has always been a backbone of Latin music but has never been this global. Why do you think it’s having such a moment right now?
They’re Gen Z-ers, and I think that’s the difference. For example, I was at Amoeba Music, and never in my wildest dreams did I imagine I’d see Natanael Cano and Gabito Ballesteros t-shirts. That’s the beauty of today that has never happened: The younger generation is growing up with these artists. When I was growing up it was all traditional music, there was nothing really young. Now it’s cool to like Mexican; the way they dress, the way they talk, they’re very relatable. And you can be an artist from Mexico and have the same things.
Within this big crop of acts, what makes Xavi stand out?
When Nir and the team first met Xavi, they immediately recognized a genuine artist in the traditional sense: a phenomenal songwriter who can sing and is also relatable. In a sea of artists lacking these qualities, Xavi stood out. People are growing weary of the superficial, and they crave authenticity — the real deal. And Xavi is the real deal. We have a daily sentiment report that we’re very much obsessed with.
A sentiment report? Can you explain?
We go into social media and look at every little comment. For example, if there’s a post on TikTok, we’ll see what the general sentiment is. This team is amazing. What sets Xavi apart by just looking at that report and talking to people is his mannerisms, his style, he’s being compared to the biggest artists on the planet. People like him. Tiene angel.
You said that social media has played a huge role in Xavi’s rise. Can you point to some examples in which Interscope mined that?
Our digital marketing team prioritized reaching out to genre-specific music reviewers to encourage them to discuss Xavi. We presented them with the project, and they consistently came back with extremely positive comments. Additionally, we organically documented special moments in the studio, video shoots and interviews, keeping Xavi’s audience captivated and well-informed. It wasn’t easy. A lot of people said, “Who is that kid?” The music also changed and he found his direction.
How did the music change?
He just found his style. It became like tumbadito romántico. Before it was a lot more romantic, a little poppier. Now he has more of a Mexican edge in the music. Another thing is, “La Diabla” talks about women in a very positive light. We’re seeing the female population really embrace it. In the genre, it’s not a thing to write about women in a positive light.
I’m also struck by the fact that his two biggest hits are solo tracks instead of collabs. Was this a deliberate decision?
Yes, and we’re very proud of it. He actually made history as the only solo Mexican artist to hit No. 1 on the Spotify chart. We wanted to be different and we felt that Xavi really had the talent, that distinctive voice to accomplish that goal. When we saw “La víctima” take off like it did, and then we had “La Diabla,” we said, “Let’s keep going.” We did think about making it a duet and we’ve had various artists approach [us], but ultimately the decision was, we’re going alone. We felt we had so much momentum that we thought we shouldn’t wait, even though the holidays were coming.
How did you promote the track?
We had a Posada at Interscope studios before the holidays, around December 14. It’s for sure the first regional Mexican event done at the historic Interscope studios in L.A., and we invited DSPs, influencers, traditional media, and that’s how we kicked off the single. And we amplified everything through that event. The goal was to surpass “La víctima.” Honestly, the goal was not a global No. 1.
I know Xavi was signed two years ago, and shortly after, he was in a big car accident that required hospitalization, extensive plastic surgery and which sidelined him for a bit. How did that affect his development? Was there a tipping point?
I don’t think this happened overnight. And we’ve always been working on music since he got signed, and that’s what it’s all about: A&R and creating awareness. He really wasn’t doing media because he was going through a moment there with the accident. But he came out of it and he wanted to give it his all. Everything clicked all at once, even though it was two years in the making. But I want to stress: It wasn’t overnight. We have four songs now on the global charts. And that’s rare nowadays. We have great respect for the indie labels but it’s not like he was going viral and we signed him. Interscope came across a video, they shared it with Nir, Nir decided to sign him. I think it’s a big success for a major label that we were able to get an artist from zero to getting on the global charts, and hopefully, next he’ll become a global superstar. Really rare nowadays.
Are there any specific examples of how the Latin team collaborated with Interscope’s general-market departments on “La Diabla”?
Once the record gained traction, we collaborated with Gary Kelly‘s team (Interscope’s GM/chief revenue officer) to expand its reach beyond Latin playlisting, successfully securing a spot on Spotify’s Today’s Top Hits. All the DSPs have been very supportive, but it hasn’t been automatic. We are also closely working with Cara Donatto (executive vp/head of media) and Xavier Ramos (executive vp of pop & rock marketing) and their respective teams on general-market media outreach and marketing initiatives.
What’s next for Xavi?
He recently signed with WME and we’re working hand in hand with them and working on a tour. He recently signed a publishing deal with Universal Latin. We don’t have plans for an album yet, so we will keep releasing singles. And we’re releasing the video for “Sin Pagar la Renta,” which never had a video when it was originally released last year. That’s also unusual.
Virgin Music Group has acquired Saban Music Latin, it was announced on Thursday (Jan. 4). The deal comes five years after entertainment mogul Haim Saban invested $500 million to launch Saban Music Group, and two years after the music company launched its Latino division.
Under the terms of the transaction, Virgin Music — a division of Universal Music Group — will acquire Saban Music Latin’s catalog, which includes such artists as Jon Z, Reykon and German Montero. It will also release future albums by Saban Music Latin artists.
Saban Music Latin’s roster includes emerging L.A.-based pop artist Loyal Lobos, Puerto Rican singer-songwriter Chesca — who has scored two No. 1 songs on Billboard‘s Latin Airplay chart (“Súbelo” and “Te Quiero Baby”) — and rapper-producer YoGambii.
Saban Music Group launched in 2019 as a music company with a Latin focus and with veteran music executive Gustavo Lopez as CEO. Lopez was the longtime GM and executive vp Universal Music Latin, where he launched Latin urban label Machete Music, home to artists like Wisin & Yandel and Don Omar, and also ran Universal Music Latin Entertainment’s regional Mexican labels, Fonovisa and Disa. After leaving UMLE in 2017, he launched indie music company Talento Uno, which was acquired by Saban.
In 2020, Saban Music Group entered into an exclusive global administration agreement with Universal Music Publishing Group — and in February 2022, it announced it was launching a Latin division with Alejandro Reglero in the role of executive vp/GM, reporting to Lopez.
The acquisition follows Virgin Music Group’s recent partnerships with other Latin labels, including DEL Records, the West Coast-based independent label home to Latin music’s biggest song of 2023, “Ella Baila Sola” by Eslabon Armado and Peso Pluma. In November, Virgin Music also announced a worldwide agreement with Pepe Aguilar‘s two regional Mexican labels, Machin and Equinoccio Records.
The Virgin Music Group roster already includes such Latin stars as Espinoza Paz, Sech, Grupo Firme, Tainy and Angela Aguilar.
More than two weeks ago, a video clip of music executive Brandon Silverstein angrily yelling into his computer at a client on a Zoom call began circulating around the music industry, prompting widespread curiosity and speculation over the circumstance that led to this on-camera blow up.
Here’s what Silverstein was so upset about: His business relationship with rising English rapper LeoStayTrill, a former contestant on The Voice U.K. who is signed to Silverstein’s S10 Entertainment label.
LeoStayTrill has enjoyed some recent TikTok success with his gliding single “Honeybun,” leading to an uptick in interest from companies around the music industry. In the leaked video, Silverstein threatens to take legal action against the artist and his representatives. On the other side of the call were two managers working with the 17-year-old rapper.
“Bro, I have tens of millions of dollars,” Silverstein says at one point. “I’ll sue you; I’ll f—ing sue your artist; I’ll f—ing sue your artist’s father. I’ll sue everybody. I’ll sue the label you sign to; I’ll sue the f—ing publisher you sign to, so shut the f— up.”
Later he returns to this theme: “I’ll f—ing sue you for tortious interference, you f—ing idiot.” Silverstein adds, “I have 40 grand of my own f—-ing money in this f—ing project,” and that the other managers “don’t have money to litigate.”
Silverstein, who also co-manages the Latin star Myke Towers, didn’t say in the clip what they’d be litigating. In a text viewed by Billboard, Silverstein apologized to LeoStayTrill’s representatives after the call, blamed his behavior on personal matters, and said there might be a way to potentially bring a major label into the business relationship.
In a statement to Billboard, Silverstein said that “prior to the Zoom call, a threat of physical harm was made against a member of my team” — LeoStayTrill’s managers vehemently deny this — resulting in “a heated business dispute.” “I’m not proud of losing my cool,” Silverstein’s statement continued, “but I have learned from this experience.” He declined to elaborate on the threat or comment on anything related to LeoStayTrill’s contract.
The two men on the other side of the call were Alistair Goldsmith, co-founder and president of Chosen Music, and Ade Shonubi, who runs the management company FlyStr8. In a statement, Goldsmith said that “being spoken to in this manner is completely unacceptable. It’s never been acceptable… We won’t tolerate it and will sing from the rooftops about any abuse of power against both our artists and our team.”
The video “should not have been shared on the internet,” says Goldsmith. (He declined to comment on how it was distributed.) “It now has been, so it’s only fair to add that Brandon Silverstein immediately apologized to both Ade and myself.”
While a source close to the rapper says he’s “not happy” and “doesn’t really want to do music anymore,” LeoStayTrill’s managers also declined to comment on his contractual obligations to S10, which offers management and music publishing operations in addition to its label services.
Heated business disputes are of course common between artist representatives and the labels they work with. A previous generation of executives sometimes even boasted about their ability to sling insults across the negotiating table. Former CBS Records head Walter Yetnikoff wrote in his memoir about “regaling [a] reporter with stories” of him “throwing plates at lawyers.” (This was confirmed to Esquire in 1986 by the music attorney Allen Grubman, who said one of those plates was hurled in his direction.)
Mores in the music industry have changed significantly since Yetnikoff ran a record company, however. And at the same time, in the social media era, more disputes between artists and labels play out partially in public, where fans and bystanders can weigh in — with little regard for facts or feelings.
Last year, for example, Halsey accused her label, Capitol Records, of preventing her from releasing “a song that I love.” In April, Halsey and Capitol parted ways. (“We are incredibly proud of all we accomplished together, and wish Halsey the very best in all their future endeavors,” Capitol said in April.)
That same month, the Brazilian singer Anitta — who was Silverstein’s management client at the time, though they’ve since stopped working together — split with Warner Records. Her departure came not long after she lambasted her label on X, the platform formerly known as Twitter. “If there was a fine to pay [to extricate myself from my contract], I would have already auctioned off my organs, no matter how expensive it was to get out,” the singer wrote. (Warner declined to comment at the time but said they “wish Anitta all the best in the future” in a joint statement announcing the end of the business relationship.)
Halsey and Anitta are established artists with big hits and large global followings. In contrast, LeoStayTrill is still at the start of his career — he just turned 17. “Honeybun” recently passed the 1-million-stream threshold on Spotify; one TikTok clip using the single has amassed more than 3 million views on the platform.
Another recent clip posted by LeoStayTrill is captioned “f*** the label.” But getting out of a deal without a star’s leverage and resources may not be so easy. In a statement, Goldsmith said that “the issue… is now being handled professionally, and in the best interests of a 17-year-old artist.”