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Few stories have captivated the past couple of months like that of Tyla, the young South African singer whose single, “Water,” emerged as a sultry blend of Afrobeats and R&B and exploded across the globe. The song first debuted on the Billboard Hot 100 in October — her first appearance on the chart — and quickly took off from there. It almost immediately reached the top of the Billboard U.S. Afrobeats Songs chart — where it has spent 14 weeks at No. 1 — and climbed all the way to No. 7 on the Hot 100, where it has spent the past two weeks. It has also been sitting comfortably at No. 1 on Mainstream R&B/Hip-Hop Airplay for eight weeks.
It’s a true breakout story for the artist, who also saw “Water” land a Grammy nomination in the brand-new category of best African music performance at the upcoming awards this February — not to mention a testament to the work of her management and her team at Epic Records, where she signed in 2021. The song began picking up organically, got a lift off a TikTok challenge and catapulted onto radio, picking up remixes from Travis Scott and Marshmello along the way. And the song’s success so far earns Epic Records president Ezekiel Lewis the title of Billboard’s Executive of the Week.
Here, Lewis breaks down how “Water” erupted onto the global stage, the multiple genre influences that went into its final version and how the singer can build on the song’s success leading into her debut album, which is due out in the next few months. “From the beginning of the record-making process, we made it a point to find the best chemistry between creatives from different backgrounds to reflect the worldly influences you hear in the song,” Lewis says. “That is a key factor in enabling it to appeal to audiences not only in the U.S. but across the globe.”
This week, Tyla’s “Water” spent its second week at No. 7 on the Hot 100, its 14th week at No. 1 on U.S. Afrobeats Songs and was certified platinum by the RIAA. What key decision(s) did you make to help make that happen?
The story starts with the creation of the song. I feel like a big part of our job is to curate an environment that creates an opportunity for magic to happen. Consider the fact that the four key writers of the song had never worked together as a collective before Tyla. From the beginning of the record-making process, we made it a point to find the best chemistry between creatives from different backgrounds to reflect the worldly influences you hear in the song. That is a key factor in enabling it to appeal to audiences, not only in the U.S. but across the globe.
“Water” blends an Afrobeats/Amapiano drum pattern with more traditional R&B elements, combining a number of different styles. Why do you think it was able to break through in such a big way?
The song not only has elements of Afrobeats but also more specifically Amapiano which is integral to the music culture of South Africa. While the wider Afrobeats influence is obvious, the use of the log drum by Sammy Soso is key to tying in that specific South African element. Then moving on to the top line, the lyric and melody, R&B and pop dominate in terms of influence there. We really hit a sweet spot in terms of multiple influences coming together seamlessly. There’s something for everyone.
The song has also done very well at radio, with eight straight weeks at No. 1 on Mainstream R&B/Hip-Hop Airplay. What was the strategy there and how has it paid off?
Once we accomplished a strong Shazam, digital and streaming story, the stage was set for radio to follow through. The audience talked back loudly and let us know it wanted to hear more and more of the record. The song’s gains at playlists across multiple genres gave us a strong sense that radio would be able to replicate that success, and that we could have a chart topper across multiple formats. Once all of the indicators pointed upward, we went for it, and thankfully we were correct in doing so.
The song was also boosted relatively early on with remixes from Travis Scott and Marshmello. How have remixes fit into your strategy, and what has been the payoff?
When thinking about remixing the song, we did not want to significantly compromise the implicit nature of the track by doing something simply to gain more audience. Authenticity is sometimes hard to articulate, but you know it once you press play and begin to listen. Travis came to the table organically, as a fan of the song, and wanted to join. We knew immediately that it would make sense creatively and would only add to the prominence of the track. Travis is a preeminent curator himself, so the vote of confidence was welcomed. His involvement gave listeners a different take on a song that they had already embraced.
Similarly, and maybe less obvious, was Marshmello, who also was a fan of the song and asked if he could do a remix. Once we heard how he re-imagined the track, we were excited to have him join us. His version has definitely given the track wings in the dance space and helped to take it further with additional streaming in that world. All of this cross-pollination has helped the track ascend the Billboard Hot 100.
So far, music from African artists has mostly broken through singles in the U.S. How do you plan to keep Tyla’s momentum going through to releasing a full album?
We will continue to build on Tyla’s momentum by keeping African culture at the center of what we do musically and creatively overall. There is a sonic consistency that listeners will hear across this first project and we expect this to go over well with the new fan base that she has developed. There is already a nearly completely sold-out tour scheduled in both Europe and the U.S. Also, her new track, “Truth Or Dare,” is showing early signs of greatness as we build daily and sits in the top five of both the U.S. and U.K. Afrobeats charts.
The song also earned a Grammy nomination in the first-ever best African music performance category. What do you see as the future of African music in the U.S. moving forward, both from a musical perspective and an industry perspective?
The sky is the limit for African music in the U.S., as I foresee continued cross-pollination to move it forward. It has proven its potential to top charts in urban, pop, and even in the dance space. It simply cannot be ignored and the Recording Academy has made an intelligent and timely decision. I could not be more excited for the future. Everyone wants a piece of the action.
Music executives Ángel del Villar and Javier “El Tamarindo” González have joined forces to launch a new distribution company, DSTRO7. Del Villar’s indie label, DEL Records, will be exclusively distributed by DSTRO7, as will González’s Tamarindo Rekordsz, which he founded in 2012. According to a press release, the company will focus on music streaming, monetization, […]
Alvaro Rizo has been named Gaira Música Local’s new MD, the company tells Billboard. Rizo will be based in the record label’s headquarters in Bogotá, Colombia. The label, which was founded in 1993 by Carlos Vives, is rooted in highlighting Colombia’s musical heritage with a roster that includes artists such as Gusi, Estereo Beat and […]
Nashville-based Big Loud, home to artists including Morgan Wallen and HARDY, has revealed a joint venture with Nashville-based indie modern rock label Severance Records.
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Former Elektra Entertainment co-president Mike Easterlin, along with former Atlantic Records GM/senior vp of A&R Steve “Stevo” Robertson, serve as co-presidents of Severance Records. The new label launches with flagship signing Dexter and The Moonrocks, who are booked by WME’s Mike Krug, and managed by Lion’s Claw Entertainment’s Chris Schoemann, and Joe Greenwald (Marketing & Promotion).
“Stevo and I could not be more excited to be joining the Big Loud family,” Easterlin said in a statement. “(Big Loud Partners) Seth (England), Joey (Moi), Craig (Wiseman), and (Big Loud Rock / Big Loud Management Partner + President) Greg (Thompson) have been so supportive from the first time we met about building this partnership together. Watching the company that Big Loud has become in the country space only drives Stevo and I to want to make Severance Records the same kind of force in the alternative space. Our goal is to be rooted in Nashville, but global in vision.”
Prior to his work as co-president of Elektra, Easterlin had worked as president and GM at two of the company’s labels – Fueled By Ramen and Roadrunner Records. His career also includes roles at Virgin Records and Island Def Jam. Along the way, he’s worked with artists including Smashing Pumpkins, Lenny Kravitz, Nickelback, Panic! At The Disco, Paramore and Bailey Zimmerman.
During his 25-year tenure at Atlantic Records, Robertson signed Shinedown, Paramore, Rainbow Kitten Surprise, Knox and A Day to Remember, and helped develop artists including GAYLE, Collective Soul, Seven Mary Three, Matchbox 20 and more.
“I’m a fan of so much of the music Mike and Stevo have discovered and promoted throughout their careers,” Big Loud Partner / Producer / President of A&R Joey Moi said in a statement. “Working with them on building and establishing some incredible new rock and alternative acts is something we’re all really looking forward to.”
“Mike and Stevo have championed some of the most exciting, culture-driving music of the last two decades, so when the opportunity to work with them in this capacity came up, it was an instant ‘yes,’” Big Loud partner and CEO Seth England said in a statement. “We’re grateful to partner with them and build a legacy together with Severance.”
“When Mike (Easterlin) and I laid the groundwork for Severance Records, we were driven by a genuine love for rock music and an instinct to follow its evolving path,” Robertson said in a statement. “In an industry that seemed to have momentarily turned away from rock, we felt a strong undercurrent – a shift back towards the authentic sounds of guitars and raw attitude. Dexter and The Moonrocks struck a chord with us immediately. While being influenced by greats like Nirvana and Kings Of Leon, they’re a bridge to the future of rock, blending influences from rock legends and contemporaries like Rainbow Kitten Surprise and Colter Wall. Their sound is the DNA of Severance Records – rediscovering and redefining rock with a fresh perspective, especially with a nod to Southern roots.
“We’re shaping a unique culture. Our focus is alternative – alt-rock, alt-pop, alt-country, and indie rock. We’re drawn to authentic, unconventional sounds. Dexter and The Moonrocks are at the forefront of that. As our first signing, they represent the distinct sound of Severance Records.”
As Universal Music Group chairman/CEO Lucian Grainge forecast in an October earnings call, saying that the company would need to “cut to grow,” UMG is expected to begin laying off employees as soon as this quarter.
Bloomberg first reported the news Friday morning (Jan. 12) that in the next few months hundreds of jobs will be cut from the company that has around 10,000 staffers worldwide.
A spokesperson for UMG declined to confirm the number or the timetable, but in a statement said, “We continue to position UMG to accelerate its leadership in music’s most promising growth areas and drive its transformation to capitalize on them. Over the past several years, we have been investing in future growth—building our ecommerce and D2C operations, expanding geographically, and leveraging new technologies. While we maintain our industry-leading investments in A&R and artist development, we are creating efficiencies in other areas of the business so we can remain nimble and responsive to the dynamic market, while realizing the benefits of our scale.”
In his New Year’s memo to the company, Grainge hinted at changes, writing the company will “further evolve our organizational structure.”
Despite the cuts, Grainge has promised further growth. In his same memo, he noted UMG’s global growth in the past year, including the restructuring and expansion of distribution company Virgin Music Group into such areas as the Middle East, Africa, India and China.
That is a plan that Grainge said 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.”
The news comes while the U.S. recorded music industry continues to grow, despite the potential for streaming saturation and growing challenges from artificial intelligence. 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), according to a year-end report issued by Luminate on Wednesday. With that double-digit gain, the U.S. market had its biggest one-year gain since consumption grew 15% in 2019.
UMG remains the leader in U.S. market share, bolstered by artists like Taylor Swift, Morgan Wallen, Post Malone and Olivia Rodrigo. For 2023, its record label market share was 35.84%, up 33.57% from 2022.
Warner Music Group already experienced layoffs, cutting roughly 4% of its staff last year.
Nate Albert has been appointed president of Giant Music, the independent record label launched in 2022 by Irving Azoff and his son Jeffrey Azoff.
A recording artist and creative A&R executive with major label experience, Albert joins the team at Giant which includes co-founder Shawn Holiday, Matt LaMotte and Charles Hamilton, Billboard can reveal.
When Giant Music was established as part of the Azoff Company, Holiday ran the venture’s day-to-day operations.
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“Partnering with Nate at Giant is the next step for us in building a world class label,” Holiday explains in a statement, issued Thursday (Jan. 11). “As an artist himself, he understands how to help artists achieve their dreams and that is what we do at Giant.”
Albert is co-founder, guitarist, songwriter and co-producer in ska punk band The Mighty Mighty Bosstones, which split in 2022 after more than 30 years, 11 albums and 10 EPs. Six of the band’s LPs cracked the Billboard 200, with 1997’s Let’s Face It peaking at No. 27 and logging 50 weeks total weeks on the chart.
He comes to Giant Music from Warner Records, where he developed and signed best new artist Grammy Award nominee Omar Apollo, Teddy Swims, and others. Before that, Albert was an A&R executive at Capitol Records and Republic Records, where he signed The Weeknd and Maggie Rogers, and worked on projects with Dua Lipa, Marshmello, Roddy Ricch, Troye Sivan and more.
“I am thrilled to help build a new label from an artist’s and manager’s perspective in 2024,” he comments on his new role. “Irving and Jeffrey have a sterling reputation as defenders of artists’ rights and that spirit and point of view will continue to thrive at Giant Music.”
The goal, he continues, “is not just to create another option for the creative community, but to create a place for the creative community to call home.”
Giant Music revives the Giant name for the Azoffs, with the elder Azoff launching Giant Records in 1990 as a joint venture with Warner Bros. Records. The label went on to work with artists including MC Hammer and Color Me Badd.
Based in Los Angeles, The Azoff Company’s portfolio includes Full Stop Management, Global Music Rights, Oak View Group, Iconic Artists Group, and Giant Music, which boasts the motto: “Creativity, transparency, and passion.”
Giant’s roster includes Ayleen Valentine, Cash Cobain and Fendida Rappa.
Columbia Records announced Joe Gallo‘s promotion to GM on Wednesday (Jan. 10). Gallo, who started at the label more than a decade ago, previously held the position of executive vp/head of sales. “Spending the last ten years in a commercial role allowed me to work with teams across the label and its storied roster,” Gallo […]
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