Record Labels
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South Korea-based music and entertainment company HYBE signed a music distribution deal with Tencent Music Entertainment this week, according to media reports. Reuters, citing an article by the Seoul Economic Daily, reported Tuesday (May 23) that the agreement allows music by BTS, TOMORROW X TOGETHER and other HYBE artists to be streamed on Tencent Music’s platforms. […]
Sony Music Group chairman Rob Stringer said on Tuesday (May 23) that the company is focused on the fight against low-quality content — which he called ”the lowest common denominator” — flooding top streaming platforms. “We have to look after the premium quality artists at the top of our business,” Stringer said during a company-wide […]
Warner Music Group executive Ernst Trapp is stepping down from his dual role of president of global e-commerce, retail and licensing at the label group, and as CEO of specialty online retailer EMP at the end of the month. “Now is the right time for me to move on and pursue new opportunities,” Trapp said. […]
Earlier this year, Oleg Stavitsky, co-founder/CEO of Endel, laid out a vision for how his company’s AI-driven functional soundscapes could help the major labels — even as anxiety around AI was reaching new heights. “We can process the stems [the audio building blocks of a track] from Miles Davis’ Kind of Blue and come back with a functional sleep version of that album,” Stavitsky told Billboard. At the time, he said his company was in talks with all the major labels about this possibility.
A few short months later, Stavitsky will have a chance to do exactly that: Endel announced a new partnership with Universal Music Group on Tuesday (May 23). In a statement, Endel’s CEO said his company will put “AI to work and help UMG build new and exciting offerings to promote wellness and banish the perceived threat around AI.”
“Our goal was always to help people focus, relax, and sleep with the power of sound,” Stavitsky added. “AI is the perfect tool for this. Today, seeing our technology being applied to turn your favorite music into functional soundscapes is a dream come true.” Artists from Republic and Interscope will be the first to participate — though the announcement omitted any names — with their soundscapes arriving “within the next few months.”
Endel focuses on creating “sound that is not designed for conscious listening,” Stavitsky told Billboard earlier this year. “Music is something you consciously listen to when you actually want to listen to a song or an album or a melody,” he explained. “What we produce is something that blends with the background and is scientifically engineered to put you in a certain cognitive state.”
Endel’s technology can spit out these soundscapes effectively at the click of a button. “The model is trained using the stems that are either produced in-house by our team, led by co-founder and chief composer Dmitry Evgrafov (who’s himself an established neo-classical artist), or licensed from artists that we’ve worked with,” Stavitsky said. “The trick is all of the stems” — Endel has used stems from James Blake, Miguel and Grimes —”are created following the scientific framework created by our product team in consultation with neuroscientists.”
Some people in the music industry have taken to calling sounds designed for sleep, study, or soothing frayed nerves “functional music.” And while it maintains a low profile, it’s an increasingly popular and lucrative space. “Science tells us that nature sounds and water sounds have a calming effect on your cognitive state,” Stavitsky noted this winter. “So naturally, people are turning to this type of content more and more.”
Early in 2022, Endel estimated that the size of the functional music market is 10 billions streams a month across all platforms. (The company has since raised its estimate to 15 billion streams a month.) If true, that would mean functional music is several times more popular than the biggest superstars. “Every day, hundreds of millions of people are self-medicating with sound,” Stavitsky wrote in March. “If you look at the top 10 most popular playlists at any major streaming service, you’ll see at least 3-4 ‘functional’ playlists: meditation, studying, reading, relaxation, focus, sleep, and so on.”
But this has caused the music industry some concern. Major labels have not historically focused on making this kind of music. Most streaming services pay rights holders according to their share of total plays; when listeners turn to functional music to read a book or wind down after a long day, that means they’re not playing major label artists, and the companies make less money. In a memo to staff in January, UMG CEO Lucian Grainge complained that “consumers are increasingly being guided by algorithms to lower-quality functional content that in some cases can barely pass for ‘music.’”
But record companies can’t eliminate listener demand for functional music. It makes sense, then, that they would try to take over a chunk of the market. And Stavitsky has been savvy, actively pushing Endel’s technology as a way for the labels to “win back market share.”
Back in 2019, Endel entered into a distribution agreement for 20 albums with Warner Music Group. And the company announced its new partnership with UMG this week. In a statement, Michael Nash, UMG’s evp and chief digital officer, praised Endel’s “impressive ingenuity and scientific innovation.”
“We are excited to work together,” Nash continued, “and utilize their patented AI technology to create new music soundscapes — anchored in our artist-centric philosophy — that are designed to enhance audience wellness, powered by AI that respects artists’ rights in its development.”
Riser House Records has signed LANCO, welcoming the group to its artist roster. Known for the two-week No. 1 Billboard Country Airplay hit “Greatest Love Story,” from the group’s 2018 debut album Hallelujah Nights, LANCO also earned an Academy of Country Music Award for new duo or group of the year, in addition to nominations […]
Warner Music Group executive vp/CFO Eric Levin reiterated the label’s call for streaming services to raise their prices while speaking at a conference hosted by JP Morgan Chase & Co on Monday (May 22).
Levin, who worked at HBO between 1988 and 2002, told the group of investors and Wall Street analysts that, unlike streaming services, the cable network almost annually raised prices during that period because the company knew customers wanted its content enough to pay a premium.
“I think and I am hopeful now that much of the [streaming] industry has done a round of rate increases successfully…that they start to understand that the industry can bear it,” Levin said.
Levin’s comments echo WMG CEO Robert Kyncl‘s previous call to streaming company hold-outs to raise prices, delivered during a wide-ranging presentation in March that touched on WMG’s growth strategy if streaming growth slows as well as its light release schedule in the first two quarters.
An increase in music streaming revenue, the main driver behind WMG and other major music companies’ double-digit growth in recent years, is expected to decline from 10% growth in 2024 to 3% growth in 2029, according to a recent presentation by MIDiA Research. That projection, which is far gloomier than Goldman’s forecast for a 12% compound annual growth rate for streaming revenue until 2030, prompted several questions to Levin about WMG’s streaming revenue expectations and how it may grow even if the streaming engine slows.
“We still have a lot of conviction that streaming has a lot of growth,” Levin said while noting that growth may come from a series of drivers.
“When we went public three-ish years ago, our growth story really revolved around subscription streaming,” he said. “Now … it includes ad-supported streaming [and] emerging [sources] of streaming, social, fitness, gaming, etc. So the facets of growth have really diversified.”
The industry has seen steady growth in subscription streaming since roughly 2015, and growth in that area remains present in all economic forecasts, Levin added.
Other revenue drivers like ad-supported streaming, he continued, are more impacted by “cyclicality based on slowdowns when the economy slows and rapid recovery when the economy is solid.”
Emerging sources of streaming revenue, such as from social media and short-form video apps, have significant growth potential, Levin said, because “you have potential for multiple products per person in a home — people have multiple social media accounts in one home.”
This month, WMG reported its second straight quarter of basically flat recorded music revenue, driven by a slower first half of the year for music releases. Recorded music streaming revenue declined nearly half a percent from the prior year due to the light release schedule.
Pressed to provide greater detail around why the company is experiencing a modest release slate this year, Levin said the May 5 release of Ed Sheeran‘s – (pronounced Subtract) is expected to be the first in a slate of upcoming releases by prominent artists — and indeed, the company is already showing signs of a second-half rebound. Still, he acknowledged WMG has lost ground to its competitors.
“We lost a little bit of momentum, but we fully expect to get it back,” Levin said.
Terrace Martin — the artist, producer, and multi-instrumentalist known for working with Kendrick Lamar, Snoop Dogg, and Robert Glasper, among others — announced a partnership between BMG and his Sounds of Crenshaw label on Monday (May 22). The results will be six jazz albums, with the first of which is due out this summer. According […]
Andrea Ganis, a 43-year veteran of Atlantic Records and the label’s first president of promotion, announced Thursday she is leaving the company. In a memo to staff, the glass ceiling-breaker graciously thanked her staff (“you are all warriors”) and bosses, including former CEO Doug Morris (“my mentor”) and current chiefs Craig Kallman and Julie Greenwald (“they… have the courage to take chances”).
Ganis joined Atlantic in 1980 as a secretary (“yes, we were called that”) and worked her way up to president of national promotion by 1988. Two years later she was named a senior vp and in early 1996 was elevated to executive vp. In 2019, Ganis was promoted to the then-newly created role of president of promotion, overseeing all promotion activities pertaining to Atlantic and its subsidiaries, as well as serving on the company’s leadership team.
“Andrea is a force of nature and a legend in the promo universe,” said Kallman and Greenwald at the time. “She’s been a rock star at Atlantic for nearly four decades and the godmother to countless career-defining records.”
Ganis recounted her early days at the historic label in a lengthy message to colleagues, first picked up by Variety.
“I couldn’t believe my good fortune to then get a job at the mighty Atlantic Records led by the legendary Ahmet Ertegun,” she wrote. “I started in January of 1980 and thanks to his and Jerry Wexler’s unparalleled A&R acumen, got to work with many of the greatest artists on the planet and, amazingly, helped them reach even greater heights. Working with baby bands and developing artists brought its own joys, particularly when they too achieved new heights and we helped them realize their own dreams. I found all of it incredibly inspiring and still do — I will always get a rush from the many songs I hear for which I can claim ‘I worked that record.’”
As one of the first women to head a major-label promotion department, Ganis has been a regular honoree in Billboard’s Women In Music issue. In 2011, her “continued focus on teamwork, strategic planning, creativity, innovation and humor in an ever-challenging environment” was credited for big wins that year with Bruno Mars and others. In 2017‘s list, she noted that “artist development is in Atlantic’s DNA” when calling out a roster that included Cardi B, Charlie Puth and Portugal. The Man. In 2020, her 40th year at the label, she and her staff were feted after Atlantic overdelivered across genres from a roster including Lizzo, Jack Harlow and Coldplay.
Read her message to staff below:
With 15,877 days at Atlantic including 2,262 add dates under my belt, Malcolm Gladwell and his 10,000 hours got nothing on me.
So yes, its my time to say to all of you goodbye for now. After 43+years at Atlantic, I can truly say I have had the greatest ride of all time. Every era had its own magic and though the work was hard, it was also incredibly exciting, tremendously rewarding and quite fabulous in every way—an understatement if there ever was one.
I was one of the original glass ceiling girls who started as a secretary (yes, we were called that) and worked my way up to President of Promotion—not bad for a girl who went to college with the largest record collection of anyone, leaving 4 years later with an even larger one!
I started out like all of you—with a great love of music. Ironically, how I was exposed to it became my lifelong career—through the radio…..WNEW, WLIR and WHFS were responsible for my initial musical discoveries—whatever I heard I usually purchased. In junior high and high school I bought my albums at Korvettes—a discount store near where I grew up; they knew me by name and I came in every week like clockwork hungry for music of every genre. BTW, they were 3 for $10.00 then and I continued those purchases throughout my college days in Washington DC negotiating for the same price—ah promotion already in my blood!
I was lucky enough to be brought up in a musical era that was diverse in every way. FM radio was free form and callout research did not exist. Though there was no social media and bands were far more mysterious then, I became totally immersed in the music and culture enhanced by radio, word of mouth, concerts and clubs, Rolling Stone magazine, conversations with record store personnel and anything I could pick up from other members of my musical community. And the best part was the music scene was remarkably prolific populated by bands whose work was not only unique but identifiable by the first note. Like you, I was addicted to all of it.
I couldn’t believe my good fortune to then get a job at the mighty Atlantic Records led by the legendary Ahmet Ertegun. I started in January 1980 and thanks to his and Jerry Wexler’s unparalleled A&R acumen, got to work with many of the greatest artists on the planet and amazingly, helped them reach even higher heights. Working with baby bands and developing artists brought its own joys, particularly when they too achieved new heights and we helped them realize their own dreams. I found all of it incredibly inspiring and still do—I will always get a rush from the many songs I hear for which I can claim “I worked that record”.
And even now, so many years later, the joy of hearing the song on the radio for the first time brings me to tears…this will forever be a constant and knowing how much effort it took to create that moment makes it all the more special. Seeing any act we’ve been a part of perform in any arena for sure will make me cry, particularly when the fans sing every word.
My tremendous thanks to Julie and Craig who continue to guide with intelligence, vision, honesty and heart. They lead by example and continue to have the courage to take chances. Always a shout out to my mentor, Doug Morris, who believed in me and saw the potential to what I could become.
Which brings me to promotion….a land that I love. I was a solid athlete in my formative years and it taught me the importance of teamwork, a lesson I swear is one of the great keys to success….yes, a village indeed. So to be given the opportunity to grow from a young team member to leading the greatest squad there is for as long as I have has been a dream come true.
Throughout all these years I’ve worked with so many wonderful, smart, talented people on the record, radio and management sides and I thank each of you for helping me learn and grow—I hope I’ve done the same for you.
To my current team—my colleagues but better still, close wonderful lifelong friends, I can’t begin to express the love and respect I have for each of you—we have changed culture one spin at a time! You are all warriors and the best there is at getting the job done.
It has been an honor and a privilege to carry the promotion torch for Atlantic Records. We are a skillful, smart, strategic, creative, word-is-our-bond kind of crew, who always took the time to laugh, even at our own expense. Continue to turn no’s into yesses, stay passionate and in the toughest of times, know you’ve got this.
Long may we all run—
Andrea
Ineffable Records, the label division of Ineffable Music Group, has announced the appointment of Diego Herrera as director of Business Development. Herrera joins the leading independent reggae label after close to a decade at Pandora, where he played a pivotal role in music curation, specializing in pushing forward reggae, dancehall, soca, and other Caribbean genres. […]
Will Ward‘s global management, production, publishing and business development company Fourward has now launched a record label, Billboard can reveal. Dubbed Fourward Records, the label has already signed buzzy folk-pop artist Brenn! under a licensing and partnership agreement with Justin Lubliner‘s Dark Room imprint (via Interscope Records), as well as indie-rock band Sarah and the […]