Record Labels
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French music company Believe benefitted from “healthy” paid streaming growth as its third-quarter revenue grew 9.1% to 215 million euros ($197.6 million at the quarter’s average exchange rate), the Paris-based company announced Tuesday (Oct. 24).
The owner of distributor TuneCore and labels such as Groove Attack and Naïve said organic revenue growth of 7.5% would have been 15.4% without the impact of the currency translation within the digital royalties it receives from its digital partners. Paid streaming “remained strong,” the company stated in its earnings release, although revenue was not yet impacted by recent price increases “due to their deployment calendar in some markets.”
Revenue grew 25.9% to 66.9 million euros ($61.5 million) in Europe outside of Believe’s two single largest markets, France and Germany, accouting for 31.1% of total revenue. The company cited particularly strong growth in Southern Europe, Eastern Europe and Turkey. The addition of Liverpool-based Sentric, acquired from Utopia Music in March, helped revenue growth in the United Kingdom. Revenue was up only 0.7% in France, which accounted for 16% of total revenue, after growing more than 40% in the prior-year quarter. Revenue dropped 6.4% in Germany due to non-digital sales being down “strongly” as Believe moved away from contracts it believes were too weighted in physical sales and merchandise.
Revenue from Asia Pacific and Africa grew 6.6% to 55.8 million euros ($51.3 million) and accounted for 25.9% of total revenue. The company was helped by increased paid streaming penetration in the region but hurt by soft ad-supported streaming and a stronger euro against local currencies. Greater China was particularly strong, while Japan was aided by Believe’s roll-out of its Premium Solutions offering. The Americas accounted for 14.4% of Believe’s revenue and grew 8.4% in the quarter; Brazil and Mexico were particularly strong, the company said.
Believe is comprised of two segments, Premium Solutions and Automated Solutions. Premium Solutions revenue rose 10.1% to 202.9 million euros ($186.5 million). Automated Solutions, which includes TuneCore, dropped 4.5% to 12.1 million euros ($11.1 million) due to a stronger euro and a challenging comparable period influenced by TuneCore’s launch of unlimited pricing in July 2022.
Looking forward, Believe increased its forecast for adjusted earnings before taxes, interest and amortization margin from 5% at the mid-year mark to 5.5%. The company reiterated its guidance for full-year organic growth of 14%.
Although Believe’s growth slowed in the last two quarters, the company expects its organic growth rate — excluding foreign exchange impacts and the impacts of acquisitions — will recover in the fourth quarter “thanks to solid paid streaming trends enhanced by price increases by some large digital partners, a slight recovery in ad-funded streaming expected at the end of the quarter and additional market share gains,” it stated in the earnings release.
Next year’s revenue will get an additional boost from subscription services following up their recent price increases by further raising prices to 12 euros/$12 per month, said CEO Denis Ladegaillerie during Tuesday’s earnings call. “We definitely expect [price increases] to come. ‘When’ is the question. But it’s going to be 2024, no doubt.”
Total revenue increased 9.1% to 215 million euros ($197.6 million).
Digital sales rose 7.1% while non-digital sales rose 39.6% as reported (12.4% at constant currency and constant perimeter).
Digital sales accounted for 92% of revenue, the same as the prior-year quarter.
Premium Solutions revenue grew 10.1% to 202.9 million euros ($186.5 million).
Premium Solutions’ digital sales rose 16.8% and non-digital sales rose 11.2%.
Automated Solutions revenue dropped 4.5% to 12.1 million.
Head versus heart; science versus art.
In the digital era where data abounds, old-fashioned music skills and modern spread sheet analysis can coexist, but deciding when to employ them is part of the art.
That was a key takeaway from an Oct. 18 panel discussion featuring two Big Loud executives, senior vp/GM Patch Culbertson and senior vp of A&R Sara Knabe, presented by the Association of Independent Music Publishers at SESAC Nashville.
In the Big Loud model, gut-level assessments dominate in signing artists and writers, while number-crunching drives the decisions when the label takes singles to radio. But with digital consumption providing the bulk of record-company revenue, getting onto the nation’s airwaves isn’t even a consideration unless the numbers justify it.
“Radio’s honestly the last thing we talk about with any artist that’s interested in partnering with Big Loud,” explained Culbertson. “It is the last thing we talk about in terms of your marketing strategy and campaign. What I want to equip all our radio team with is the power of the audience telling those stations that [something] is a hit, not that the radio person has to convince them.”
He added, “Especially for developing artists, you’re talking about the 55- to 60-week debut-single campaign. If you don’t have the hit in your hand, why are you going to go and do three or five months of radio setup and launch with that, and it’s going to be crickets when you are performing those records in front of those fans?”
The label’s roster houses 27 artists, he said, and only three of them were “research signings”: “Everybody else was a story of just either an incredible voice, incredible songs, just flooring us either performing on a stage somewhere or in our own offices, or just star quality they give off when they walk into the room.”
The approach has worked. Since its 2015 launch, Big Loud has signed and developed the genre’s most-consumed current artist, Morgan Wallen, plus HARDY, ERNEST and Hailey Whitters, a Country Music Association Award nominee for best new artist. It has also developed gold singles for Larry Fleet and Lily Rose — signs of strong market penetration, even if the songs didn’t become top 10 titles at radio.
Big Loud’s volume approach to recording may play a part as well. Since core fans demand a constant supply of new music, the label encourages artists to cut songs when they’re ready, even if no album or EP is planned. It’s part of the development process — “Even studio experience is part of their growth,” Knabe said — and more music increases the possibility that something breaks through with strong numbers.
In the Big Loud model, that’s when the head takes over from the heart.
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Singer-songwriter Maggie Rose, known for her blend of rock, soul and Americana/folk stylings, has signed with Big Loud Records.
The deal is the latest under the label’s aim to sign talent in an array of genres, including Americana, pop, folk, alt-country, and more. Big Loud Records vp of A&R Nate Yetton is leading those efforts, with Rose being among Yetton’s first new signings, following the label’s signing of Charles Wesley Godwin earlier this year.
Rose, who is managed by Starstruck Entertainment, is set to join a nationwide tour with St. Paul & The Broken Bones and promises new music soon. Rose has been a Nashville mainstay, having played the Grand Ole Opry nearly 100 times, and was recently elected as governor of the Recording Academy’s Nashville chapter. Her multi-genre talents have led her to performance slots on festivals including Newport Folk Fest, Bonnaroo, Austin City Limits and more.
Rose said in a statement, “Big Loud dove in headfirst and defied my preconceived notions of what I’d come to expect from a big label; they didn’t want me to change the music I was working on or ‘chase’ the trends. They understood the vision and believed in me from the outset. I’m so excited for this new chapter.”
Yetton added, “Maggie is a world-class vocalist, performer, and songwriter. Earlier this year I was privileged enough to hear her new, unreleased album, and after one listen through, I knew that we had to find a way to partner with her and release this body of work via Big Loud Records. I truly believe it is her best, most undeniably authentic, compelling and complete work to date. This is the kind of art that transcends genre and will be playing at dinner parties and on stages across the globe for decades to come.”
Braylin Kelly
Joey Moi, partner/producer/president of A&R, Big Loud said in a statement, “When I heard some of Maggie’s upcoming new music, I just loved the sound of it. The songs are something entirely their own; her voice speaks for itself. Happy that Big Loud is putting this music out and helping Maggie tell her story.”
Narvel Blackstock, manager, Starstruck Entertainment said, “Starstruck has been fortunate to work with Maggie for the last several years. It’s been incredible to watch Maggie as she has defined her career as a vocalist, songwriter and undeniable artist. We look forward to the future with Big Loud and looking forward to the future with Maggie.”
Virgin Music Group announced the members of its global leadership team on Thursday (Oct. 19).
The executives’ responsibilities are split across five regions. Jacqueline Saturn will serve as president of Virgin Music Group North America/executive vp of global artist relations; Thomas Lorain and Nick Roden will be co-presidents in Europe; and Victor Gonzales has been named president in Latin America and the Iberian Peninsula, with Cris Garcia Falcão working as MD of label and artist strategy/GM of Virgin Music Group Latin.
In Australia and New Zealand, Nathan McLay will assume the role of MD — working with Tim Janes as MD of global marketing for Virgin Music Group Australia — and Michael Roe will take the position of MD in Africa, Middle East and Asia (AMEA).
“It is an enormously exciting time to be working in the independent sector of our business,” JT Myers, co-CEO of Virgin Music Group, said in a statement. “In today’s market,” he added, “visionary music entrepreneurs can be successful on a global scale if they have the right team and infrastructure to empower them.”
In addition to announcing regional leaders, Virgin named Jay Blomquist as chief technology officer, Jeremy Kramer as execugtive vp of global marketing, Joy Larocca as executive vp/CFO, Liz Morentin as senior vp of global communications and brand strategy, Matt Sawin as head of global product strategy and operations, Nina Rabe-Cairns as head of global growth strategy and Zack Gershen as executive vp of global commercial and digital strategy.
The appointments are the latest step in a consolidation process for Universal Music Group’s various artist services outfits. In September 2022, the company lumped together Virgin Music Label and Artist Services, Ingrooves Music Group and the newly acquired mtheory Artist Partnerships into a new entity, Virgin Music Group — of which mtheory’s founders, Myers and Nat Pastor, were appointed co-CEOs.
“mtheory was founded on the idea that we could transform the music industry by offering better, more aligned partnerships with artists,” Myers said last year. “By bringing these incredible global teams and resources together, we have the opportunity to turbo-charge that vision, and deliver even more value to artists, labels and music entrepreneurs.”
Warner Music previously combined its Independent Label Group and Alternative Distribution Alliance (ADA) under one roof in 2012. Sony Music merged The Orchard and RED under the Orchard brand in 2017.
Jonas Group Entertainment (JGE) and the company’s founder Kevin Jonas Sr. have launched the Nashville-based Red Van Records, under the leadership of CEO Phil Guerini.
The label’s first signing is Nashville singer-songwriter Levi Hummon, who’ll release his first song under the label on Oct. 27, with a new version of his Walker Hayes collaboration “Paying For It.” Dan Pearson‘s Lakeside Entertainment Group will provide label services for Red Van Records.
JGE was founded in 2005 while Jonas was managing his sons, the sibling music group Jonas Brothers. The namesake for Red Van Records is the red van that the Jonas family originally toured the country in. “I can’t begin to guess how many hours and miles we logged driving the guys around the country in that van, but it represents the commitment you make to be in the music industry,” said Jonas Sr. in a statement. “We were always building and in motion and that’s the philosophy of Red Van Records.”
“With the values and ideals that are the foundation of Red Van Records, Levi is the perfect artist to launch our label,” Guerini said in a statement. “He is so well respected in the music community as a complete artist, and he has been tireless in his pursuit of music and taking it to the fans on the road. It’s the unrelenting pace and ‘firsts’ of the early days that may seem small at the time, but like the red van, they are the start of something truly special.”
“So excited to be working with Kevin, Phil, and honored to be Red Van Records first signing,” Hummon added. “I’m so grateful to them for dreaming big with me and I couldn’t imagine my music in better hands. Family is everything to me and they have made feel like part of their family since day one. This next chapter is going to be a wild ride.”
Jonas Group Entertainment’s artist roster includes Bailee Madison, Darby, Franklin Jonas, Harper Grace, Levi Hummon, LIVVIA, Mallary Hope, Mandy Harvey, Tayler Buono and The Band Light. Meanwhile, Jonas Group Publishing’s roster includes Franklin Jones and Terri Jo Box.
Hummon, the son of songwriter Marcus Hummon, previously issued his debut self-titled EP in 2016 through Big Machine Label Group, followed by 2018’s Patient via Iconic Records.
BMG said on Thursday (Oct. 18) that it will use Universal Music Group’s (UMG) commercial services division for the distribution of its physical recorded music, in what BMG CEO Thomas Coesfeld described as the first project of a burgeoning “alliance.” Last month, BMG announced it was winding down its agreement with Warner Music Group’s ADA […]
Universal Music Group’s Universal Production Music division has launched a new subscription-based service, offering a pre-cleared library 50,000 songs and 200,000 sound effects, starting at $5.99 per month. The new library, called Universal Music for Creators, is aimed at servicing influencers and online talent that need royalty-free music for their videos and podcasts at a low price.
Universal Music Group’s library includes the option to separate out some of its songs into audio “stems,” industry shorthand for individual instrument tracks used collectively to create a full sound recording. This offers creators greater flexibility to customize the song to best fit their needs.
Though it is full of options for creators, the library does not include any of the major acts that are signed to UMG — like Drake, Rihanna, Taylor Swift and many more. It is searchable through the website’s search bar, where users can type in descriptions of mood and style to find the songs they want. The company also offers curated playlists of different moods and occasions for faster discovery.
UMG is not the first to try to fulfill the needs of the growing creator economy through a subscription-based pre-cleared music library, but the company’s announcement claims that Universal Music for Creators “boasts more tracks and SFX than any other claims-free music subscription service.” In recent years, a number of other libraries have formed with similar business models and offerings, including Songtradr, Loudly, Collabhouse, Bopper, Epidemic Sound and more. Some digital platforms, including TikTok and YouTube, have also amassed their own pre-cleared music libraries for creators to choose from in order to dissuade creators using songs without the proper clearance to do so.
Soundtracking social media content is also one of the most cited use-cases for the burgeoning field of generative artificial intelligence. Some of the models hoping to provide AI music for this use includes Stability AI’s Stable Audio, Soundful, Tuney, and more. These companies threaten to disrupt today’s music libraries, offering soundtracks that are one-of-a-kind and customizable for content creators at a similarly low monthly fee. Still, some of these models do not yet create music that rivals the quality of stock human-made music.
Jody Gerson, UMPG chairman and CEO, said: “Universal Music for Creators delivers our unparalleled production music library to content creators everywhere for the first time. Innovative programs like this exemplify why Universal Production Music continues to lead the industry.”
Jane Carter, president of Universal Production Music said, “We’re thrilled to become the first major publisher to offer production music to content creators as a subscription service and grow the accessibility of our music catalog. With a brand heritage that signifies trust, quality and prestige, Universal Music for Creators will provide affordable, hassle-free music and sound effects for the most imaginative creators. We are excited to provide yet another innovative opportunity to support our talented production music songwriters and composers.”
Following Hamas’ attacks throughout Israel this past weekend and Israel’s current bombardment of Gaza, the three major labels, along with the Recording Academy, have released statements condemning Hamas. In a statement posted Thursday to X, the platform previously called Twitter, Warner Music Group wrote, “We condemn the terrorist attack on Israel by Hamas and the […]
Mariah The Scientist is the newest signee to Epic Records. The singer/songwriter joins a roster that boasts Future, Travis Scott, 21 Savage, Giveon and more. To celebrate, the singer released her newest single, “From a Woman,” released early Friday morning (Oct. 13). “I was reluctant to signing any new deal, “Mariah tells Billboard. “But I was […]
Interscope has a signed a partnership with Los CT, the record label launched by new regional Mexican music star Natanael Cano, a pioneer of the corrido tumbado movement. The deal will bring in Los CT artists Gabito Ballesteros, Alejandro Buelna, Tyan G, Amillkar Galaviz, Luis Castillo, Nueva Era, Cocho, Herencia LP and Delilah under the […]