Record Labels
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Warner Music Group reported quarterly revenues grew 1.7% to $1.399 billion (4.6% in constant currency) as strong revenues from its music publishing revenue helped offset a slow quarter for recorded music releases.
WMG, the music industry’s third largest major label, reported revenue from its recorded music revenue was effectively flat at $1.143 billion for the second fiscal quarter ending March 31, compared to $1.147 billion in the year ago quarter. (In constant currency, recorded music revenue rose 2.5%.) Streaming revenue in the quarter was down 0.4% (or, in constant currency 2.2% higher) on fewer releases and a slowdown in ad-supported revenue due to macroeconomic uncertainty.
In contrast, music publishing revenue rose 12% to $257 million from $230 million a year ago.
“While our publishing was best in class, we underperformed in recorded music,” Robert Kyncl, chief executive officer, said on a conference call.
WMG executives have said throughout this fiscal year that the label’s major releases of the year would come in the second half, and on the call, they stressed they are already seeing improvement with the late-April releases of Jack Harlow’s Jackman., Tïesto’s Drive and Ed Sheeran’s Subtract, released in early May.
“Our release slate was a little lighter in the first two quarters of the year and will be weighted to (the third quarter) and (the fourth quarter),” Warner chief financial officer Eric Levin said, flagging releases expected from Dua Lipa with her Barbie soundtrack track, among others.
“We absolutely expect this to improve our results in recorded music streaming in the second half of the year.”
Key Points From WMG’s Q2:
WMG’s revenues grew 1.7% (or 4.6% in constant currency, a measure that standardizes foreign exchange fluctuations) to $1.399 billion
Digital revenue increased 1.2% (or 3.7% in constant currency) to
Streaming revenue increased 1.9% (or 4.5% in constant currency) on growth in music publishing streaming
Music publishing revenue increased 12%, or 14.2% in constant currency
Music publishing streaming revenue grew 16.4% (18.3% in constant currency)
Recorded music streaming revenue decreased 0.4% (an increase of 2.2% in constant currency) on a lighter release schedule, foreign exchange currency fluctuations and slowdown in ad-supported revenue.
Net income was $37 million this quarter, down 60% from $92 million one year ago, primarily driven by the negative impact of currency fluctuations on the company’s Euro-denominated debt. Adjusted net income up 5% to $116 million from $111 million a year ago.
Operating income was $124 million, down 25% from $166 million a year ago, with adjusted operating income up 10% to $203 million from $185 million.
Adjusted net income of $116 million was up 5% from $111 million in the year ago quarter.
Chris Strachwitz, a producer, musicologist and one-man preservation society whose Arhoolie Records released thousands of songs by regional performers and comprised an extraordinary American archive that became known and loved worldwide, has died. He was 91.
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Strachwitz, recipient in 2016 of a Grammy Trustee Award, passed away Friday (May 5) from complications with congestive heart failure at an assisted living facility in the San Francisco Bay Area’s Marin County, the Arhoolie Foundation said Saturday.
Admired by Bob Dylan, Bonnie Raitt and many others, Strachwitz was an unlikely champion of the American vernacular — a native German born into privilege who fell deeply for his adopted country’s music and was among the most intrepid field recorders to emerge after Alan Lomax.
He founded Arhoolie in 1960 and over the following decades traveled to Mississippi, Texas and Louisiana, among other states, on a mission that rarely relented: taping little-known artists in their home environments, be it a dance hall, a front porch, a beer joint, a backyard.
“My stuff isn’t produced. I just catch it as it is,” he explained in the 2014 documentary This Ain’t No Mouse Music.
The name Arhoolie, suggested by fellow musicologist Mack McCormick, is allegedly a regional expression for field holler.
Ry Cooder would call him “El Fanatico,” the kind of true believer for whom just the rumor of a musician worth hearing would inspire him to get on a bus and ride hundreds of miles — like the time he sought out bluesman Lightnin’ Hopkins in Houston. Strachwitz amassed a vast catalog of blues, Tejano, folk, jazz, gospel and Zydeco, with Grammy winners Flaco Jimenez and Clifton Chenier among those who later attracted wider followings. An Arhoolie 50-year anniversary box set featured Maria Muldaur, Taj Mahal, Savoy Family Band and Cooder, who would cite the Arhoolie release Mississippi’s Big Joe Williams and His Nine-String Guitar as an early inspiration.
“It just jumped out of the speaker on this little school record player,” Cooder told NPR in 2013, adding that he decided “once and for all” to become a musician. “I’m gonna do this, too. I’m gonna get good on guitar, and I’m gonna play it like that.”
Strachwitz despised most commercial music — “mouse music,” he called it — but he did have just enough success to keep Arhoolie going. In the mid-1960s, he recorded an album in his living room for no charge by Berkeley-based folk performer Joe McDonald, who in turn granted publishing rights to Arhoolie. By 1969, McDonald was leading Country Joe McDonald and the Fish and one song from the Arhoolie sessions, the anti-war anthem “I-Feel-Like-I’m-Fixin’-to-Die Rag,” was a highlight of the Woodstock festival and soundtrack.
Arhoolie releases were cherished by blues fans in England, including Keith Richards of the Rolling Stones. Around the same time Strachwitz met with McDonald, he taped more than a dozen songs by bluesman “Mississippi” Fred McDowell, including McDowell’s version of an old spiritual, You Gotta Move. The Stones sang a few lines from it during the 1970 documentary Gimme Shelter and recorded a cover that appeared on their acclaimed 1971 album Sticky Fingers. Strachwitz prevailed over the resistance of the band’s lawyers and ensured that royalties were given to McDowell, who was dying of cancer.
“I was able to give Fred McDowell the biggest check he’d ever seen in his life,” Strachwitz later said.
In 1993, Arhoolie was boosted again when country star Alan Jackson had a hit with “Mercury Blues,” a song co-written and first performed by K.C. Douglas for the label.
Besides his Grammy, Strachwitz received a lifetime achievement award from the Blues Symposium and was inducted as a non-performing member of the Blues Hall of Fame. In 1995, Strachwitz established the Arhoolie Foundation to “document, preserve, present and disseminate authentic traditional and regional vernacular music,” with advisers including Dylan, Bonnie Raitt and Linda Ronstadt. In 2016, Strachwitz sold his majority interest in the record label to Smithsonian Folkways Recordings, part of the national museum in Washington.
“The ripple effect of Chris Strachwitz in the world of is immeasurable in preserving this music,” Raitt, a longtime friend, told the podcast The Kitchen Sisters Present in 2019.
The son of wealthy farm owners, he was born Count Christian Alexander Maria Strachwitz in the German region of Silesia, now part of Poland. His family, displaced at the end of World War II, moved to the United States in 1947, eventually settling in Santa Barbara, California. Strachwitz had already been exposed to swing overseas through Armed Forces Radio and became a jazz fan after seeing the movie New Orleans, a 1947 musical featuring Louis Armstrong and Billie Holiday. He also felt a strong kinship with country and other forms of “hillbilly music.”
“I felt it all had this kind of earthiness to it that I didn’t hear in any other kind of music. They sang about how lonesome you are, and how you miss your girlfriend and all this other thing,” Strachwitz told NPR. “Those songs really spoke to me.”
By his early 20s, he was taping local radio and live performances and he perfected his craft while attending the University of California at Berkeley. He served two years in the Army, completed his studies at Berkeley through the GI Bill and, starting in the late 1950s, taught high school for a few years in Los Gatos, California.
Often short on money, Strachwitz sold pressings from his collection of old 78s to support his early recording efforts. Arhoolie’s first release was Mance Lipscomb’s Texas Sharecropper and Songster, for which Strachwitz and friends personally assembled 250 copies.
“So much of pop music has all this slop added, with this mush background that I can’t even call music,” he said in a 2013 interview with the online publication waytooindie.com. “You can hardly hear the voices! They bury the voices. If somebody wants to sing, sing god damn it! You know? In the old days, you could hear them sing.”
CIL, the 20-year-old pop artist who recently opened for Stevie Nicks on a string of spot dates, has signed to Warner Records, Billboard can exclusively reveal. The singer-songwriter commemorated the label deal by releasing a new single, the blistering “Devil In Your Eyes,” on Friday (May 5).
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“’Devil In Your Eyes’ is about freedom,” CIL says in a statement. “It’s about realizing somebody wasn’t who you thought they were. You may break over them, but at least you’re breaking free.”
The Fort Collins, Colo. native moved to Los Angeles by herself as a teenager to pursue a music career after teaching herself piano as a child. Her debut single, the waltzing “One More Shot,” earned a following on TikTok upon its independent release last October, and has earned 12.6 million U.S. on-demand streams through Apr. 27, according to Luminate.
In March, CIL was tapped to open for Nicks for four dates on her U.S. arena tour, writing on social media that she was “beyond honored & grateful for the incredible opportunity.”
“CIL’s world-class vocals, combined with her genuine authenticity and moving personal story, are certain to make her one of the most important artist voices of this next generation,” says Aaron Bay-Schuck, Warner Records co-Chairman and CEO, in a statement. “She’s totally fearless, raw, vulnerable, real, and uncompromising in her mission to make emotional connections with people through her music. From the moment I met her, I knew she had to be a Warner Records artist. Tom [Corson] and I are grateful she felt the same way.”
“Devil In Your Eyes” marks CIL’s second release of 2023, following the track “Girl I Used To Be,” which was released in March. CIL is currently working on her first proper project for Warner Records.
“I’m so honored and excited to be joining Warner Records,” CIL says. “Aaron and the whole team have been amazing from the start – immediately understanding what I stand for and where I’m headed. I’m very grateful for their support in bringing my dreams to life.”
On July 2, 2020, Jack Nathan went to a party with some friends near his hometown of Livingston, New Jersey. Amidst the revelry, the artist and college student took what he thought was a Percocet. But the pill was laced with fentanyl, and by the early hours of July 3, Jack Nathan had died of fentanyl poisoning. He was 19 years old.
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In the wake of Jack’s death, his parents — Bradi Harrison and former Republic Records SVP of Promotion & Artist Development David Nathan — took over the apparel company their only son had founded years prior and was successfully running from his dorm room in Denver. This company, Happy Jack — called so for a nickname a very smiley young Jack had earned during a Pamper’s commercial shoot when he was a baby — sold T-shirts, hoodies, hats and other streetwear, with Jack Nathan donating percentages of his profits to mental health-focused charities.
He himself had long struggled with anxiety and depression, and in making clothing and other visual art, he found a creative outlet that helped him deal with it. A lover of music, especially hip-hop, he was just beginning to expand his business into managing musical acts when he died.
“I have never been more excited, passionate and sure of something in my entire life,” he wrote of his company on Instagram just a few weeks before his death. “I can not sleep, I can not think, I can’t eat. I promise, I f–king promise you, Jack Nathan is a name you’ll never forget.”
Through a new venture, Jack’s father David Nathan and his business partner Sam Koch are making sure to honor that statement. Today (May 4), the elder Nathan and Koch are launching Happy Jack Records, a boutique label taking a mega-proactive approach to the mental health of its artists, in honor of the person the label is named for.
David Nathan, who spent 21 years at Republic Records, brings deep industry contacts and knowledge to the project. Koch — who’s in his 20s — brings a dual passion for music and mental health, along with an understanding of the industry gained from his entrepreneur father, who runs an event production company. Together, Nathan and Koch are structuring Happy Jack Records to be a mental health optimization platform for the artists signed to it, and via them, to anyone who taps into their music.
“Think of us like a bootcamp,” Koch says. “We have a team of coaches attacking different elements of wellness, everyone from therapists, to a psychiatrist, to a vocal coach, to a life coach. We’re going to align them with a fitness trainer and a nutritionist. You’re talking about it all every week in therapy. We put artists into our program for 18 months, and they come out on the other side better individuals.”
With this multi-layered approach to artist development, the plan is to only sign three to four artists a year, with the funding necessitated by the bootcamp approach underwritten by donations. (Happy Jack Records is set up as a 501(c)(3) nonprofit organization.) The idea is to sign up-and-coming artists from across genres and focus on acts who have themselves struggled with mental health issues.
The launch party for Happy Jack Records, happening in conjunction with Mental Health Awareness Month, happens this evening at New York City’s Ascent Lounge with a fundraising event featuring performances by The Arti$t, SNF.JT, American Idol winner Nick Fradiani and a DJ set by ZeeMuffin. Following this fundraising launch, the label will lock in a distributor, with Nathan saying they’re considering got some “amazing options” on this front.
The goal is to also develop partnerships across the industry when the label is fully up and running, and also do cross-collabs with Happy Jack apparel, which David Nathan and Jack’s mother Brandi Harrison took over when their son passed away and which has since donated more than $150,000 to mental health related organizations like Lady Gaga’s Born This Way, Release Recovery, Active Minds and Child Mind Institute.
For David Nathan, the new label is dually an homage to his son and an effort to help evolve an industry in which, until recently, conversations around mental health were taboo. “Honestly, there wasn’t anything,” he recalls of his time at Republic. “There were no help lines, no coaches. You couldn’t make a phone call to the record label five or ten years ago and be like, ‘I’m not gonna go on tour this year, because I need to get my head right.’”
While many mega-stars have since become more open about their mental health challenges, Happy Jack Records’ focus on emerging artist is an effort to tackle the lack of industry inroads and limited access to mental health resources such artists often experience.
“With all the fame, money and success, [a lot of the biggest artists in the world] still have issues,” says Koch. “You can only imagine what it’s like for artists that have no money and don’t have teams of people behind them to give them the resources they need.”
The idea is that artists signed to Happy Jack Records will use the label as both a conduit to their own self actualization (and through it, career success), and will also use their growing platforms to tell the stories of their personal growth.
“We are not interested in signing artists that don’t want to use it as a platform,” says Nathan. “Whatever their issue is, or their experience has been, we want them to share it. And we want them to educate with it. One of the things that we’re really trying to focus on is making this a community for the misunderstood.”
In a cross collaboration with the Happy Jack apparel company, Happy Jack Records is also focused on making mental health cool via merch that Jack himself might have designed. (During our Zoom call for this story, Koch wears a t-shirt from the line that says “I told my therapist about you.”) Another goal is that at the end of each year, Happy Jack Records will take 15% of what its earned from each artist and donate it to a mental health charity of that artist’s choice, with the caveat being that the artist must match the donation. “We’re essentially in a good way, forcing ourselves and forcing the artists to put their money where their mouth is and really be that spokesperson for what they believe in,” says Nathan.
For David Nathan and Koch, everything their doing is essentially a continuation of the work Jack Nathan himself started, via his own unique amalgamation of art, business and honest conversations about his interior life.
“Jack always wanted to start a record label,” says Koch. “He was managing artists at one point, and he loved music. I feel like we’re taking the Happy Jack concept and just doing what Jack would have done.”
Pick a lane. How many times have you heard that? For me, I’ve lost count. I’ve never been one for labels, boxes, or genre assignments. I feel that extends to every vertical of my life – down to how I live, work, love, and find joy.
In some ways, I took the whole “dances to the beat of my own drum” as far as I could. Just call me an Avril Lavigne lyric, because I am “anything but ordinary,” honey! Maybe that has stifled some of my success, but I would argue that it’s helped me more than it’s hurt me. I am resourceful, adaptable, resilient, and I relate to so many different human experiences – which in my line of work(s) has been nothing short of an asset.
For example I’ve been a songwriter for over 19 years professionally, a performer since the age of three, a major label signed artist at the age of 19, and I’ve worked behind the scenes as an industry professional since 2014. That being said, even as someone with years of professional experience it took me years to land a mid-to-senior level role working for a reputable music company. No one wanted to hire me, because I didn’t have a college degree and I never worked as a coordinator. For some reason that never applied to the men I used to tour with, but that’s a story for another day.
The question is… why aren’t we looking at future employees with a holistic viewpoint? Why are we assigning only one genre tag and then disregarding their potential because we can’t place them?
When I pitch music, the more metadata tags the better; I want to know the song can fit many opportunities, not just when all the stars align. Why are we afraid when a future teammate offers layers? Often in my interview process, I would get asked if “being an artist” was going to get in the way of my prospective job. It’s such an odd question to me, because as a freelancer most of my life was and is about time allocation. No one is more mindful of how I spend my time… than me. There’s also no one way to be an artist.
I see a lot of fear when it comes to hiring in the music industry. Hands-on experience in the creative music space is a huge asset and shouldn’t be looked at as a liability. Often, a potential employee goes to college, scores an internship, lands an assistant gig, and then shoots up the ladder… but they’ve never been to the factory. They don’t know how the product is made.
Here’s the thing – traditional music industry folk can’t empathize with the talent, because they have never lived it. They don’t speak the language.
When we don’t understand each other, can’t relate to each other’s experiences, and have no visibility in the day to day functions of each other’s jobs it can become a breeding ground for miscommunication.
Miscommunication is the enemy of progress and productivity aka the enemy of getting sh*t done.
Not to say there’s anything wrong with taking a traditional route to the top of the music business, but it shouldn’t be the only path and at the very least… go to the factory y’all!
When I received the opportunity to work for other companies (not just my own) – I jumped at it! To me, it’s just another tool in my arsenal. I had a front row seat to look into how the other side strategizes, rationalizes, moves mountains, and builds winning campaigns on behalf of their roster.
I got to hear the worst and the best from peers and senior executives that would have never kept it real with me as the talent/creative. I listened to everything intensely. What I heard motivated me to get to work. I saw how both sides need each other, that it’s a marriage and that marriage is rocky at best.
How do we save this union? Like anything in life… we seek to understand and we find better ways to communicate effectively. A strong tool I can offer you? Hire a former creative or active creator. Let them help fix what’s not working – they know how to. They’ve been small businesses for years. They’ve been on the road, they’ve had the odds stacked against them and they still got on that stage and SERVED. That’s someone I want on my team. The show must go on and they know how to deliver the goods.
As a songwriter I listen, internalize, and then externalize. I aim to understand and have others find themselves in the work. I create. I am a little big problem solver, so why would this be any different in behind the scenes business?
Open up your doors to creators and allow them to bring the positive tension this industry desperately needs. We only grow when we allow ourselves to be uncomfortable, so embrace the fear.
Creatives are builders, let them build. They may show up with big dreams, but they’re going to have the know-how to see it through. Give them a chance to bring home the bacon. They’ve been singing for their (YOUR) supper anyways, now let them sit at the table.
Jessica Vaughn is the head of sync at Venice Music and president of Head Bitch Music. Before breaking into the business side of the industry, Jessica began her career as an artist under the name Charlotte Sometimes, releasing a debut album on Geffen Records and later appearing on season 2 of NBC’s hit series The Voice.
Urbano star and reggaeton veteran Chencho Corleone has launched a “new musical phase” by signing a global record deal with Sony Music Latin, the company tells Billboard. The agreement comes on the heels of Chencho’s upcoming debut album as a solo artist; he was previously one-half of the duo Plan B, who rose to fame in the early 2000s.
“I’m very happy with what we’ve been creating and what’s coming up,” said the Puerto Rican hitmaker in a statement. “I’m sure my fans will enjoy this new musical phase, adding another milestone in my career.”
Corleone is set to drop the first single from the set, “Un Cigarrillo,” on Thursday (May 4) along with a music video directed by Jessy Terrero. “I had the opportunity to sit down with production and the team to create a visual concept that projects and marks the new solo path at the beginning,” Chencho added in his statement.
The deal comes amid a career spike for Corleone. Last year, he scored his first No. 1 on Billboard‘s Hot Latin Songs chart thanks to “Me Porto Bonito” with Bad Bunny, which ruled the tally for 20 weeks. He also notched his first No. 1 on Billboard‘s Latin Airplay chart with his feature on Rauw Alejandro‘s “Desesperados.”
About the signing, Sony Music U.S. Latin president Alex Gallardo, added, “We’re extremely happy to welcome Chencho Corleone to the Sony Music family. Chencho has proved to be one of the leaders in his genre with his distinctive style and powerhouse collaborations, reaffirming his position worldwide. We are committed alongside his team to take his career to new levels and establish him as one of the biggest names in the music.”
After netting a No. 2 debut on the Billboard 200 with his first album Wasteland, Brent Faiyaz solidified his standing as a critical cog in the R&B circuit, so much so that a year later, he and UnitedMasters agreed on an unprecedented partnership to form a new creative agency as a hub for his upcoming endeavors.
A source close to the situation tells Billboard that the deal is rumored to be valued at close to $50 million.
“Brent Faiyaz is one of the most prolific independent artists today, and we are extremely excited to embark on this new partnership with him,” UnitedMasters founder Steve Stoute tells Billboard. “It’s been inspiring to watch his journey as an artist over the years, and with this partnership we look to further amplify his creative vision and support his entrepreneurial ambitions.”
Along with his new partnership, Brent Faiyaz will embark on a world tour later this summer. Titled F–k the World, It’s a Wasteland, the multi-date trek will arrive in major markets, including New York, Chicago, Los Angeles, Miami, Paris, and Milan. Presale tickets will be available on Spotify through May 3 and open for the general public on May 5.
Faiyaz keeps momentum from his 2022 effort by releasing his latest visual, “Rolling Stone.” Channeling classic film noir elements, the video is presented as a cinematic thriller with black and white coloring. I still got demons from my younger days. “I wish I could shake ‘em, but they follow me,” he sings in the clip.
Check out video for “Rolling Stone” and the tour dates for F–k The World, It’s a Wasteland below.
TOUR DATES:
7/16 Landover, MD forthcoming
7/25 Denver, CO The Mission Ballroom
7/28 Chicago, IL The Salt Shed
8/1 Toronto, ON History
8/6 New York, NY Central Park Summerstage
8/9 Boston, MA MGM Music Hall at Fenway
8/12 Miami, FL James L. Knight Center
8/16 Orlando, FL Dr. Phillips Center
8/19 Sacramento, CA forthcoming
8/22 New Orleans, LA Orpheum Theater
8/23 Houston, TX 713 Music Hall
8/24 Dallas, TX The Factory Deep Ellum
8/31 San Francisco, CA The Masonic
9/1 Oakland, CA Fox Theater
9/3 Las Vegas, NV The Cosmopolitan of Las Vegas – Chelsea Theater
9/15 Los Angeles, CA YouTube Theater
10/16 Leeds, UK O2 Academy Leeds
10/19 Manchester, UK O2 Apollo
10/21 Glasgow, UK O2 Academy Glasgow
10/23 Birmingham, UK O2 Academy
10/25 London, UK Eventim Apollo
11/1 Utrecht, Netherlands TivoliVredenburg
11/3 Stockholm, Sweden Banankompaniet
11/5 Copenhagen, Denmark Vega
11/8 Oslo, Norway Rockefeller Music Hall
11/10 Berlin, Germany Tempodrom
11/12 Milan, Italy Fabrique
11/14 Barcelona, Spain Razzmatazz
11/17 Cologne, Germany Palladium
11/19 Paris, France Elysee Montmartre
11/20 London, UK Eventim Apollo
Growing up in East Los Angeles in the 1980s, George Prajin could see music in the making. His father was Antonino Z. Prajin, owner of Prajin One-Stop, a music retailer and distributor in Huntington Park, Calif., that sold to over 3,000 stores in the U.S. and Mexico and had 26 warehouses throughout Southern California. At that time, the music known as regional Mexican — comprising subgenres like banda, norteño and mariachi — dominated U.S. Latin music sales.
At the Prajin brick and mortar record shop that catered to mostly Mexican and Mexican-American buyers, “I always noticed that Mexican-American youth would buy hip-hop and regional. And I always tried to mix the two,” says Prajin today. “I tried to come up with a fusion of the two sounds.”
It took 25 years, a lot of money and a lot of heartbreak, but Prajin has finally found his sound with the artist known as Peso Pluma, the only act signed to his indie Prajin Records, and distributed via The Orchard. While Regional Mexican music is definitely having a moment — this week, 13 Regional Mexican tracks are on the Billboard Hot 100, a record for the genre — the current wave is led by the 23-year-old from Guadalajara, Mexico.
Of those 13 tracks, an astounding eight are his, including “Ella Baila Sola,” his smash hit with California quartet Eslabón Armado, which reached No. 5 on the chart, marking the first time ever a Regional Mexican track, in Spanish, reached the top five — or the top 10, for that matter. The song also reached No. 1 the Billboard Global 200 chart (dated April 29). It’s the first leader on the list for each act, as well as the first for the regional Mexican genre. And it helps make Prajin Billboard‘s Executive of the Week.
The importance of the moment is not lost on Prajin, who grew up following the Billboard charts and who in the 1990s launched an independent record label for the first time. When the recording industry’s bubble burst at the onset of the digital download age in the early-mid-2000s, Prajin closed shop, studied law and established a practice — alongside veteran music entertainment lawyer Anthony Lopez — representing athletes and musicians. In 2019, when streaming numbers started to soar, he decided to give the music industry another shot as a record executive and launched Prajin Records. This time, the timing was right. Among the different projects that were shopped to him, one was Peso Pluma, a young Mexican singer and rapper who was living in New York and had been discovered through social media.
“Ella Baila Sola” is not only a Peso Pluma track; it was released on another California-based indie, DEL Records, whose founder Angel Del Villar was also an Executive of the Week when Eslabón became the first Regional Mexican act to enter the top 10 of the Billboard 200 last year.
This week’s achievement, says Prajin, was not just the result of DEL and Prajin’s strategy with “Ella Baila Sola.” Instead, he says, “it’s been a strategy with the project overall.”
Peso Pluma arrives for the 8th annual Latin American Music Awards at the MGM Grand Garden Arena in Las Vegas, Nevada, on April 20, 2023.
ROBYN BECK/AFP via GI
What was it about Peso Pluma that you found interesting?
I saw how he flowed on the tracks. He could do it all: He could rap, he could do regional, he could do reggaeton. But he was very stubborn that he wanted to do everything independently of each other. He said, “I want to rap on a rap song, I want to sing reggaeton on a reggaeton song.” I realized there is a way to do it and it’s how Peso envisions it, by staying in each lane and killing it in each genre but giving people what they want. I always recognize his base audience is regional and that’s actually the music he loves the most. But because Peso can do all these genres, and when they [he and his cousin Tito] write songs, they [incorporate] all these influences.
You met Peso Pluma through your former artist, Jessie Morales (El Regional de la Sierra). Jessie wanted you to sign Peso, but you actually turned him down the first time, even though as an attorney you represented several prominent Regional Mexican artists and labels at that point. What happened?
At the time, I didn’t want to compete with my clients, even though I felt the kid had a lot of talent. He ended up signing with Herminio Morales, Jessie’s brother. Fast forward 2021, Herminio got really sick and called me up and asked me if I could help with Peso. You don’t get two bites of the apple very often, and I was restless. I wanted to produce more music. And at that time nobody was really interested in Peso, because it wasn’t really a successful project.
Once you started with Peso, what would you say was your breakthrough track?
Because no other label was interested, I didn’t feel I was competing with anybody [so I would experiment]. He had an album already recorded and one song attracted my attention: “El Belicón.” He gave me permission to work on the track and we ended up taking the guy that was there off the track and putting in [singer] Raul Vega. We mixed the song — I have an amazing engineer — and we put it out on TikTok. We saw that there was a spark and we put in promotion and made an inferno. We made sure the video was like Call of Duty because we really wanted to target the kids. We threw all our efforts into making the song as big as we could. And we got to the level where we got people’s attention.
You did tracks with more urban acts like Nicki Nicole from Argentina and Ovy on the Drums from Colombia. Were you aiming for a more international sound?
I feel we started in regional but at the same time we were expanding regional. It’s like when rock n’ roll got into grunge. Peso’s saying, “We’re not regional; we’re Mexican.” When we saw the fusion going to the top of the charts, that’s when we invited others. The goal was to expand the international Latin scene. And what’s really, really cool is they all want to jump on Peso’s sound.
I feel that has really expanded the Mexican market. He wanted to do reggaeton and rap, we’d be in talks with major artists in other countries and we’d usually say, “Lets do a reggaeton song,” but they’d say, “Let’s do a regional song.” When we saw these artists wanted to do something regional, we started to double down.
When did you realize there was another audience interested in this guy?
I pay a lot of attention to the analytics. I’m always looking at the numbers and looking at what countries we get engagement. I saw we were getting a lot of engagement in the countries we were targeting but also in places like Japan and Germany. And then, obviously, the global charts. When we broke into the Billboard Global 200 and then we became the No. 1 song, and then we get interest from Jimmy Fallon, that’s when you see something that is global. As an executive I take everything and say, “How do we double down?”
Peso Pluma & Blessd
Cristhian Álvarez Suarez
And, how do you double down?
We’re Latin and we’re keeping our base. We’re opening offices, we’re doing a global tour, but like when we first started at the top of the charts in Mexico we doubled down on our infrastructure, and now that we’re global we’re going to make sure we can double down and have boots on the ground and make sure we’re touring individual countries.
“Ella Baila Sola” is originally an Eslabón Armado track. What is it about that song?
It’s a combo of a good sound, and Eslabón has a really good U.S. base which is something we were on the verge of entering. At one point our streams were 80% in Mexico and 20% in the U.S. Now I think we’re 50-50. But I feel this momentum was coming and we had been focused on international development. The audiences were looking for another regional track from Peso Pluma and it just so happened we were releasing with Eslabón. [Lead writer and singer] Pedro Tovar is an amazing talent. And the song was produced to be in line with Peso’s sound.
You hit a historic top five on the Hot 100. Were you aiming for that?
Nobody knows what’s going to be a hit. But the way it came out with the numbers it did overnight and on a weekly and monthly basis, I knew this song was going to be massive. I’d never seen those numbers with a regional song before. DEL released that track and they’ve done a lot to support the success of the track.
What’s next for you and for Peso Pluma?
Peso just launched WP Records. He’s the CEO and he’ll be producing a lot of the tracks. The first single came out 4/20. We’ll finally be releasing a Peso Pluma album before summer and that will be the focus in the next two to three weeks. I give all the credit to my artist. I’m an executive. I’m involved in every single aspect. But I give leeway to my artist and I trust him so much that we created a label.
Previous Executive of the Week: Cindy James of Virgin Music
Sony Music Entertainment notched one of its most profitable years on record in 2022, as strong growth in streaming subscriptions and a favorable exchange rate propelled the company’s revenue from chart-topping artists like SZA, Harry Styles and Miley Cyrus.
SME’s reported revenue rose by nearly 24% to 1.38 trillion yen ($10.16 billion) and operating income rose nearly 25% to 263 billion yen ($1.94 billion) for the fiscal year 2022, making it the most profitable of the six companies under Sony’s umbrella.
“We have steadily improved our ability to continuously create hits,” Sony chief financial officer Hiroki Totoki said on a webcast, calling out Cyrus’ Flowers release in January. “In Recorded Music, an average of 43 songs ranked in the Spotify weekly global top 100 songs in FY22, increasing our market share significantly year-on-year.”
For the most recent quarter, Sony reported that overall revenues rose 19% to 341.89 million yen ($2.5 billion). Recorded music streaming revenue grew by 23% to 148.9 billion ($1.093 billion) from a year ago. Publishing income rose by 22% to 65.96 million yen ($485 million). SME’s revenues also benefitted from an exchange rate during that period that favored its Japanese parent company’s accounting in yen.
“In recorded music and music publishing, we aim to continue to grow faster than the market and maintain a higher growth rate and profit margin than our competitors by strengthening relationships withinfluential artists, discovering and nurturing new talent, expanding our lineup through The Orchard and AWAL, and growing our business in emerging markets,” said Totoki, who also serves as Sony’s president and chief operating officer.
Executives said on Friday they expect revenues in Sony Music to grow by 2% overall to 1.41 trillion yen ($10.37 billion) for the fiscal year 2023.
LONDON — French music company Believe’s recent investments in Europe, Asia Pacific and Africa helped boost digital sales across its key markets and drive overall revenues up 22% from January through March, despite a slowdown in ad-funded streaming revenue.
The company reported Thursday (April 27) that revenues grew 22.2% to 198.6 million euros ($218.9 million) compared to the prior year’s quarter. The Paris-headquartered company’s premium solutions business — which includes label services, marketing, distribution, promotions and sync — rose 23% year-on-year to 186 million euros ($205 million), while its automated solutions, which includes the TuneCore distribution platform, increased 11.2% to 12.7 million euros ($14 million).
Digital revenue also grew by 22.2% during the quarter, with non-digital sales up 21.8%. Believe didn’t provide financial figures for either market segment, nor an indication of overall net profit or loss for the quarter. The company’s shares, traded on France’s Euronext, fell 2.41% on Thursday to close at 9.70 euros ($10.70).
The company said ad-funded streaming revenue slowed to single digit growth at the start of the year — in line with the challenging global advertising market — but didn’t report financial values or the percentage increase.
Non-digital revenue benefitted from merchandising, branding and live activities in France and India, as well as a film project in Turkey, which Believe said collectively offset the fall in physical sales, most notably in Germany.
Growth of Believe’s core digital business, which focuses on markets and music genres where artist promotion and marketing are predominantly online, was driven by the global rise in paid music steaming and the company’s expanding international portfolio of artists and labels, CEO and founder Denis Ladegaillerie said during Thursday’s earnings call.
Recent investments include partnerships with Filipino label Viva Music and Artists Group (VMAG), India-based imprints Think Music and Panorama Music, French pop label Structure and Germany-based Madizin Music. Last month, Believe acquired U.K.-based publisher Sentric from Switzerland-based Utopia Music in a €47 million ($51 million) deal that marks the French company’s first major entry into the publishing industry. (Sentric is expected to add about 3% to annual revenue growth, the company said Thursday.)
Notable Believe artist signings cited include Thai acts TimeThai and Reinizra, Belgian rapper Hamza and a new multi-album deal with French hip-hop star Jul.
Globally, revenue from Asia Pacific and Africa, which Believe groups together in its earnings report, grew 40% year-on-year to 56.1 million euros ($61.8 million), representing 28.2% of the company’s earnings, compared to 24.7% in the first quarter of 2022.
Within the Asia Pacific and Africa region, Believe said it recorded strong growth in India, Greater China and Southeast Asia, driven by its growing roster of local artists and labels, sustained investment in on-the-ground teams and the rollout of its full label and artist solutions offer in most markets.
Europe, excluding France and Germany, recorded a revenue increase of 21.1% to 54.4 million euros ($60 million), representing around 27% of total revenue.
Believe’s operations in the Americas rose 25.2% to 29.4 million euros ($32.4 million), representing 14.8% of all income, with the company saying that it had a particularly strong sales quarter in Latin America, most notably in Brazil.
The company’s two strongest individual markets, France and Germany, also grew by 13.2% to 32.1 million euros ($35.4 million) and 3.7% to 26.6 million euros ($29.3 million), respectively. France generates 16.2% of the company’s total revenue, while Believe said its performance in Germany was impacted by a “strong decline in physical sales linked to the lowered exposure to physical sales-heavy contracts.”
Over the past 12 months, Believe has made significant moves into the dance music sector with the launch of global label solutions brand b:electronic, which has signed deals with electronic music imprints Hospital Records and Rinse in the U.K.; Big Top Amsterdam, Blackout Music and Mixmash in the Netherlands; and Cercle and Roche Musique in France.
On Wednesday, the company announced that its TuneCore distribution platform had teamed up with Beatport, enabling TuneCore artists to distribute their songs on the world’s largest electronic music platform for working DJs.
“This great start to the year, marked by strong operational milestones and solid organic performance, shows that we are well on track to deliver another year of profitable growth,” Ladegaillerie says in a statement. Believe’s increasing global reach combined with a “successful investment strategy” was enabling “artists and labels to thrive in the digital ecosystem,” he says.
Ladegaillerie says the company is looking to make further acquisitions in the year ahead. Believe, which operates in more than 50 countries and has over 1,600 employees worldwide, says it expects to generate positive free cash flow for the full year and expects to record organic revenue growth of around 18% in 2023. The company says it will “monitor its investment pace and focus on improving efficiency” to reach an adjusted EBITDA (earnings before interest and taxes, depreciation and amortization) margin of 5% for fiscal year 2023.