Record Labels
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The Warner Music Group’s chief digital officer Oana Ruxandra is leaving the label, according to company emails obtained by Billboard.
The top-level exec, who also held the title of executive vp of business development, led the major label group’s digital strategy since her promotion to her current role in April 2020. She first joined WMG in December 2018, when she was hired as executive vp of new business channels / chief acquisitions officer, then a newly-created role at Warner under then-CEO Stephen Cooper. Her next move is currently unknown; in an internal memo to staff, Ruxandra implied that current Warner Music CEO Robert Kyncl had a replacement lined up already.
During Ruxandra’s tenure, she led Warner’s push into the gaming and web3 arenas, including investments in Roblox and Overwolf, partnerships with Snap and NFT platforms OneOf and Blockparty, and negotiated deals with Twitch, Peloton, TikTok, Meta, avatar company Genesis and Spotify’s podcast division, among several others. She has often been credited with positioning the company to take advantage of technological innovations for the future, something that has become increasingly important as the industry begins to grapple with the effects of AI.
“Oana’s been a key player in — and fierce advocate for — the evolution of both this company and the industry at large,” Kyncl wrote in an internal memo obtained by Billboard. “She has not only helped us vault many challenges, but drive streaming revenue, while exploring and developing new paths and platforms that will maximize value for our talent, our team, and our company.”
Prior to returning in 2018, Ruxandra spent four years at WMG in the early 2010s, rising to vp of digital strategy and business development, before moving to Universal Music Group as senior vp of digital strategy and partnerships in 2016. Before her time in the record label business, she spent several years working in finance at Constellation Capital Management and BlackRock.
“I leave WMG knowing it’s well positioned for a bold, bright future: Not least with our core streaming partners and evolving social media platforms and fitness players; we’ve also been the first to forge innovative partnerships with a wide, diverse, and thriving network of gaming, Web3, and AI companies,” Ruxandra wrote in an internal memo obtained by Billboard. “At the same time, we’ve acquired and created new businesses for WMG, including Interval Presents, our podcasting unit, and IMGN, our social media publisher. … The last decade has been a wonderful wild ride; we’re once again at the heart of seismic shifts and massive opportunities. I wholeheartedly believe that the future of our industry lies in the dynamic relationship between artist and fan, and the incredible explosion in creative and commercial possibilities created by that interplay.”
Read Ruxandra’s full note below.
Hi everyone,
I wanted to let you know that I’ll be leaving WMG. Robert and I have been discussing my role for a while now, and I’ve decided it’s time for a change, one where I explore even further my entrepreneurial spirit. Look out for an announcement about my next move. I know Robert has plans for my successor and you’ll be hearing from him about that soon.
Like so many of you, my primary motivation is always our artists and their music. It’s an incredible honor and responsibility to help grow their careers, expand their revenue streams, and champion their rights. I’ve loved being part of this team, dreaming big and driving change. I’ve spent eight out of the past ten years of my music career here, and I’m very proud of everything we’ve accomplished together.
I leave WMG knowing it’s well positioned for a bold, bright future: Not least with our core streaming partners and evolving social media platforms and fitness players; we’ve also been the first to forge innovative partnerships with a wide, diverse, and thriving network of gaming, Web3, and AI companies. At the same time, we’ve acquired and created new businesses for WMG, including Interval Presents, our podcasting unit, and IMGN, our social media publisher.
The last decade has been a wonderful wild ride; we’re once again at the heart of seismic shifts and massive opportunities. I wholeheartedly believe that the future of our industry lies in the dynamic relationship between artist and fan, and the incredible explosion in creative and commercial possibilities created by that interplay.
Above all, I’m most proud of the extraordinary team we’ve assembled, which has evolved into the absolute best in the business. I want to thank them for their passion, dedication, and above-and-beyond hard work. I’ll be looking forward to seeing what you all accomplish in the future.
My last day in the office will be next Friday. In the meantime, I want to thank Robert, Steve, Len, and the Board of Directors for the opportunity to help grow WMG. I’ve made many friends here and I’ll see you all soon.
Keep in touch - I’ll be rooting for you,
Oana
Rick Ross has officially brought his Maybach Music Group imprint to Larry Jackson‘s gamma with the release of his and Meek Mill’s latest collaboration, “Shaq & Kobe.” Though the rumor mill had been swirling regarding the nature of Ross’ tie-up with gamma, which was confirmed by Billboard last month, “Shaq & Kobe” signals the first release for the […]
Warner Music Group CEO Robert Kyncl has a message for a music industry facing disruption from artificial intelligence that’s often likened to the rise of file-sharing a quarter century ago: “You have to embrace technology, because it’s not like you can put technology in a bottle,” he said during an onstage interview at the Code […]
Yandel has signed with Warner Music Latina, marking his first deal with a major label after releasing his latest albums (Quien Contra Mi 2 and Resistencia) via his own company, Y Entertainment. The signing took place at the Empire State Building in New York City, where Yandel kicked off Hispanic Heritage Month festivities by leading […]
ONErpm Nashville has launched a joint venture with Huff Co., a production company spearheaded by brothers Dann Huff and David Huff, to help guide artists from various musical genres into the marketplace.
Dann, a Billboard producer of the decade honoree, will be at the helm, with creative input from David, as they produce artists signed to the joint venture. Meanwhile, ONErpm will fund production and oversee distribution and marketing for the artists. Artists will be signed directly to the joint venture, with ONErpm acting as a record label and co-owning the master recordings.
Tim Wipperman, the MD for ONErpm Nashville, previously spent nearly three decades as the head of Warner Bros. Music. He also served as CEO of Rezonant Music and then as president of Anthem Music Publishing Nashville.
“For some artists, the traditional model isn’t viable or necessary,” Wipperman tells Billboard. “There are advantages and disadvantages to working within that kind of corporate structure, and there are a lot of advantages to working outside of that corporate structure with a more nimble organization. We did 70 billion Spotify streams last month and 20 billion YouTube streams, so this company has leverage and reach.”
Musician and producer Dann has played on and/or produced recordings by Barbra Streisand, Reba McEntire, Celine Dion, Rod Stewart, Shania Twain, Keith Urban, Megadeth and more. He has won the CMA musician of the year honor three times as well as CMA Awards for his production work on CMA single of the year-winning songs in 2016 (Thomas Rhett’s “Die a Happy Man”) and 2017 (Urban’s “Blue Ain’t Your Color”). Dann will continue to produce artists outside of the joint venture.
David’s resume includes work as a producer, music director, consultant and artist development executive. In the studio, he’s collaborated with Rhett, The Smashing Pumpkins, Avicii, Sheryl Crow, Twain, Michael W. Smith and more.
Though specific artist signings will be revealed later, Dann tells Billboard that he expects the joint venture will ultimately work with a mix of new artists who have made an impact in the streaming arena as well as established artists seeking more freedom than they can get in a typical label deal structure.
“Because I have this long history in Nashville, there’s been talk of finding homes for some of these artists that maybe aren’t [still] in the mainstream, doing what they’ve done through the course of their career, but they are very viable in the sense that they have active audiences who want new music,” Dann says. “I like the fact that not everything has to go through the prism of being radio-driven. It just opens so much more…for someone who loves music, there’s nothing better.”
Wipperman adds, “We want ONErpm to be at the forefront of finding new ways to build careers. When artists look at a non-major [label operation], there’s a concern about production and the ability of a non-major to leverage what they are doing. I think getting into business with producers [with] the quality of Dann and David, that eliminates one of those impediments. You grow a company by creating alliances with talented people.”
ONErpm’s services include music distribution, marketing support, publishing, accounting and global payment systems. The company operates in 43 offices around the world, with more than 500 staffers globally. Artists currently working with the company include country artist William Michael Morgan, reggae artist I-Octane, Jamaican dancehall superstar Sean Paul, pop band Nightly, singer-songwriter Jay Allen, singer-songwriter Chance Peña and Americana artists Mark and Maggie O’Connor.
Maryland rapper Joony and his 211 label have entered into a partnership with Red Bull Records and Blxst‘s Evgle imprint, Billboard can exclusively announce today (Sept. 22).
The 22-year-old artist (real name Jonathan Negero) initially started 211 as a collective in 2014 with his best friend Max Free, but he transformed it into a label in 2022 with his managers Jason Zeigler and Darren Xu. The other core members are fellow artist Swegah and photographer Gio Vaun. Joony has released two projects under 211, his 2022 album Pretty in Black and his 2023 album SHITUMISS.
“My team and I spent a lot of time trying to figure out who was the right fit for us, not only for me as an artist, but as a company as well. We ended up loving the synergy between us and the Evgle/Red Bull Records teams, and I’ve always been a fan of Blxst, so it’s huge getting to work with him,” Joony says in an exclusive statement to Billboard. “We arranged a one-of-a-kind deal that empowers the artist with terms that have substantial gain for everyone involved, and we’re excited to launch the partnership today.”
Joony made his Billboard Hot 100 debut last July due to his appearance on Brent Faiyaz‘s “FYTB” off his critically acclaimed sophomore album, Wasteland. The two previously collaborated on “Paper Soldier” from Faiyaz’s surprise three-pack Do Not Listen from 2021.
Prior to the Evgle partnership announcement, Jordan Ward and Joony’s “IDC” track was included on the NBA 2K23 season 7 soundtrack, which Blxst curated.
“At Evgle, we think Joony is a generational artist and songwriter, and he and 211 are building something we truly admire in terms of creativity and business,” says Karl Fowlkes, COO/co-founder of Evgle. “With additional resources of Evgle and Red Bull Records at their disposal, the sky is the limit. We look forward to helping Joony and 211 reach their heights.”
Joony also announced his upcoming EP MEMENTO today, which will be released this fall as his first project under Evgle/Red Bull Records. The 10-track project includes collaborations with Tony Shhnow, TTM Dawg, Lancey Foux and Lil Candy Paint. Ahead of MEMENTO, he dropped the first single, “Need It,” with an accompanying music video directed by Zaiem.
“This partnership will bring a better look into who I am as an artist and what I want to portray with my art. There are more resources for me to get as creative as possible and give my supporters more to grab onto — bigger and better art, visuals, and most importantly, music,” Joony says. “I’m excited for fans to finally get this new music and see all of the creative endeavors I’ve been working on over the past year and a half. My new EP MEMENTO is definitely one for the books, and I’m happy as hell that y’all get to hear the project soon and take it in with the visuals we worked so hard on, starting with ‘Need It.’”
Adds Kenny “Tick” Salcido, senior vp & head of A&R at Red Bull Records: “Evgle continues to identify culture-moving artists with the newest addition to our partnership in the signing of Joony. Joony has unlimited potential as he brings a different sound with his melodic delivery and unique sonic choices. He represents a career artist at its core and we’re thrilled to welcome him.”
Joony will also accompany Lil Tjay on nine dates of his Beat the Odds Tour’s European leg, which kicks off Nov. 2 at London’s OVO Arena Wembley and wraps on Nov. 11 at Vienna’s Gasometer.
Big Hit Music, the longtime label home of BTS, announced its plans to sign exclusive agreements with all its members and also “work with the group on their future releases from 2025 onwards.” “With the renewal of their contracts, we are looking forward to supporting BTS’ group activities expected in 2025,” Big Hit’s parent company […]
Universal Music Group announced a new wellness app and a partnership with Ariana Huffington‘s Thrive Global on Tuesday during its first-ever Music + Health conference. Held at the One Hotel in West Hollywood, the event featured keynote remarks from Huffington and UMG chairman and CEO Sir Lucian Grainge, plus panels and conversations deep-diving the therapeutic and medical benefits of music.
During the event, UMG said it is working on a forthcoming, music-centric wellness app called Sollos that will deploy “cognitive science and proprietary audio technology to support focus.” As Music Business Worldwide spotted, the label group submitted a trademark application for the brand in late August, however no additional information on the app has been released.
UMG also announced a new partnership with Thrive Global that will see UMG become the exclusive music partner for their Thrive Reset stress management tool. Huffington launched Thrive in 2016 as part of her years-long campaign to stamp out “burnout” and to help companies improve the well-being of workers through science-based actions. The Thrive Reset app uses music and breathing exercises to help users reduce stress in 60-second bursts.
“Universal’s catalog will make Thrive Resets more engaging, personalized and joyful to drive even greater behavior change through our platform, helping people reduce stress and connect each day with what they love about their lives,” said Huffington, who famously installed “sleep pods” — in rooms with names like Napquest — while leading The Huffington Post. “As we learned today from neuroscientists, historians, doctors and entrepreneurs, we’re just getting started with all of the ways we can leverage music, both for preventive health and to augment medical treatment, and I am looking forward to using today’s conference to accelerate this growing movement of music and health.”
On the licensing front, UMG announced it would provide selections from its vast catalog to digital therapeutic company soundBrilliance for use in closed clinical trials. According to the label, these trials will use music, psychology & measurement techniques “to create tools & exercises which empower people to better self-manage the fundamentals of health.”
The day featured a Zoom chat with music producer Rick Rubin on the topics of creativity, music and wellbeing, plus panel discussions featuring Dr. Lisa Miller, Dr. Daniel Levitin, Dr. Assal Habibi, Jaron Lanier and neurosurgeon and scholar Dr. Ali Rezai, as well as a presentation from MedRhythms co-founder and CEO Brian Harris. The day ended with a conversation on mental health between Grainge, Huffington and Selena Gomez.
There were also performances by Republic Records’ artist Chelsea Cutler and Decca Records’ Chad Lawson, plus panel appearances from UMG partners including Apple Fitness +, Endel, Music Care, Universal Production Music, Thrive Reset and a Havas Health panel that looked at music’s power to help end the health equity crisis.
“Throughout my life, I have experienced countless examples of how music can change people’s mood, comfort them in times of emotional crisis, or even help them physically,” Grainge said. “At Universal, I wanted this powerful relationship between music and health to not simply be a series of anecdotal observations, I want it to be a key component of our strategy, so we can really put music to work in ways it has never been used before. As a company, we are fundamentally rooted in the belief that music is a powerful force for good, and now we have the science and technology—with AI and therapeutics and more— to help accelerate these developments. It really is one of the most interesting and exciting new frontiers for music.”
Warner Music has hired Disney veteran Bryan Castellani as the label group’s next executive vice president and chief financial officer, effective Oct. 16. Based in New York, Castellani will report to WMG’s CEO, Robert Kyncl.
Castellani has nearly 30 years at The Walt Disney Company under his belt, most recently serving as CFO for Disney Entertainment & ESPN. Prior to that, he held such roles as evp of finance for Disney Media, where he oversaw its distribution, ad sales and networks businesses, and previously he was evp and CFO of ESPN proper and he also spent time in the C-suite at Disney Japan. He started at the company in 1995 as a financial analyst, following a stint at the Federal Reserve Board in Washington, D.C.
“Bryan has wide-ranging experience helping one of the world’s most impactful creative enterprises build long-term value and unlock new global possibilities,” said Kyncl. “A dynamic, operational CFO, he’ll be an excellent addition to our executive leadership team, as we grow the WMG of the future for the benefit of our artists, songwriters, investors, employees, and partners.”
Castellani will succeed longtime CFO Eric Levin, who announced his retirement in mid-March after nearly a decade at the company. He’ll officially retire in January. Levin joined WMG in 2014, overseeing the company’s global financial operations at a time when piracy and streaming were overhauling the fortunes of companies across the music industry. Notably, he saw WMG through its 2020 initial public offering and managed through the leadership transition from Stephen Cooper to Kyncl.
Kyncl noted that Levin departs “with our deepest respect for his many contributions during an extraordinary period of growth that included WMG’s global expansion, numerous major acquisitions, and a successful IPO.”
Castellani said: “I’m delighted to be joining WMG at such an exciting and pivotal time for the company and the music industry. Music is a powerful global force, unconstrained by any specific model or format, and has significant business upside. Robert’s vision for differentiating WMG is inspiring, and I’m looking forward to working with the leadership and finance teams to take the company to the next level in a rapidly evolving landscape.”
Halfway through 2023, the U.S. recorded music industry has set a record for first-half retail revenue, generating $8.4 billion, according to the new RIAA mid-year 2023 report released Monday (Sept. 18). But within that headline number, there are several trends and statistics that are worthy of their own exploration, from increasing revenue to slowing growth figures and the factors behind them. Digging deeper into the numbers, here are four takeaways (and a bonus fifth) from the mid-year report.
Ad-Supported Revenue Flatlines
The RIAA reported that ad-supported on-demand streaming revenue came in at $870.1 million — just a 0.6% bump over the $865 million it generated in the first half of 2022. Looking at the 2022 mid-year report, the ad-supported revenue figure was $871.5 million, up 16.4% from $748.5 million midway through 2021. (The RIAA regularly adjusts and updates figures each year as more data becomes available, hence the discrepancies.) What it points to, at best, is a stagnant advertising market; and at worst, one that risks going backwards.
On one hand, it’s not surprising, given the adverse advertising market across the board in 2023 so far. On the other hand, it’s yet another blow to a part of the model for services like Spotify and YouTube that has been maligned for years and considerably detracts from the value of music. Still, revenue from the “other ad-supported streaming” category grew 56.8% year over year for an increase of $58 million after a few years of negligible growth at best.
The Big Pricing Shift
In the past two weeks, a lot of conversation in the industry has revolved around how royalties from streaming services should be divided moving forward. But the broader issue that many executives are, and have been, pointing to has been about pricing. Music streaming services have fallen behind the times in keeping the price of a monthly subscription largely static over the past decade-plus, while video streamers (with fractionalized offerings) have raised prices regularly.
That’s now starting to change — and it’s being reflected in the numbers. Apple Music and Amazon Music both raised prices for their streaming services at the turn of the year, and that has translated into paid subscription streaming revenue growing 12.4% in the first half of 2023 — even as the average number of subscriptions grew at a much slower rate, increasing just 6.4% from 90 million to 95.8 million. With YouTube Music and, most critically, Spotify increasing prices over the summer — numbers that were not reflected in the first half of this year — the additional value realized will be something to keep an eye on moving forward.
But It’s Not Just Streaming
Those streaming service price hikes get a lot of attention — and rightly so. But the industry is seeing increased revenue from consumers in more than just streaming. The physical product market has continued to grow in revenue, up 5% overall, with vinyl revenue rising 1.3% year over year (up $8.2 million) and CD revenue growing 14.3% (up $29.6 million). What’s more interesting — apart from, perhaps, the winding down of the “vinyl explosion” double-digit increase narrative of the past several years — is that both formats grew in revenue while being down in unit counts.
Vinyl, overall, seemed to be a little static year over year. The number of records sold dropped by about 400,000 or so, even as revenue ticked up. But the discrepancy in CDs was stark: despite the type of double-digit revenue growth that’s been associated with vinyl in years past, there were actually 3.2 million fewer CDs sold in the United States in the first half of 2023 compared to 2022. Whether that’s a reaction to the hyper-fandom of artists who tend to do well in the physical market raising prices significantly or a marker of an industry-wide price hike there, it’s another example of how pricing is shifting across the industry and changing the revenue picture as a result.
Subscriptions Slowing Down?
As noted above, the average number of paid music streaming subscriptions grew by 5.8 million in the first half of the year to 95.8 million. That represents the slowest level of growth — both in raw numbers and in percentage — since at least 2015, when the U.S. streaming industry was still in its nascent phases. The growth in the number of subscribers has been slowing down now for about five years straight, as those who haven’t already gotten on board with paid music streaming slowly sign on. But it’s unclear how much room for growth remains — and, either way, the focus will continue to shift from acquisition and retention to growing value.
As subscriptions continue to near critical mass in the United States, the industry will need to continue its growth rate by convincing digital service providers to get more from the subscribers they already have. Whether that comes from price hikes or finding new ways to monetize fans on platforms — or, more likely, some combination of both — is an area to watch.
And, Finally…
A last word for our favorite sector of the RIAA report each year: ringtones and ringbacks. U.S. consumers spent $6.0 million on them in the first half of 2023 — down slightly from $6.2 million halfway through last year — while the unit count also slightly declined. We are a long way away from the Billboard Ringtones Chart of 2004, yet they continue to hang on as a line item year after half year. What a blessing.