Record Labels
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It didn’t take long for news of a lawsuit against Lizzo to put a dent in her sales and streaming activity. Multiple metrics — such as on-demand audio streams and Instagram followers — reveal a small but noticeable fan backlash in the week following news that the singer was sued in a Los Angeles court by three tour dancers who claimed the “Special” singer subjected them to sexual harassment and a hostile work environment.
From August 1 — the day the lawsuit became public — to August 8, Lizzo’s daily U.S. on-demand audio streams fell 21.7% while her daily U.S. track sales have declined 35%, according to Luminate.
Almost half of the decline in U.S. track sales appears to be the result of a drop-off in sales of “Pink,” Lizzo’s contribution to the Barbie: The Album soundtrack. Excluding “Pink,” Lizzo’s track sales declined 19.3% from August 1 to August 8. The decline in her on-demand audio streams excluding “Pink” was unchanged at 21.7%.
The cumulative loss over the seven-day period is relatively minor: about 6 million on-demand audio streams with a royalty value of roughly $10,000 to her record label, according to Billboard’s estimate. Smaller yet is the cumulative decline in royalties from track sales of roughly $1,000 over the same period.
The financial damage would be far greater if Lizzo’s streams and sales continue to be impacted by the controversy. The lawsuit could remain in the public spotlight for some time: The attorney representing the three plaintiffs claims to have received “at least six other inquiries” from people with similar stories regarding their employment by Lizzo. If her U.S. sales and streams continued at the current rate, the cumulative decline in U.S. royalties from streams and track sales would amount to about $89,000 over the first 30-day period and $320,000 over a 90-day, three-month period.
Although her streaming numbers dropped considerably, Lizzo lost just 0.1% of her Spotify followers, amounting to roughly 6,000 of her 5.6 million followers, in the seven days after news of the lawsuit broke. But the singer took a bigger hit on social media. In the week after the lawsuit, Lizzo’s Instagram followers fell 1.7% to 13.4 million while her TikTok followers declined 0.7% to 26.8 million, according to Chartmetric.
Social media numbers fall when services occasionally remove fake followers, but “it is highly unusual to see these simultaneous declines in follower accounts on multiple services,” says Chaz Jenkins, Chartmetric’s chief commercial officer. Artists’ followers tend to increase steadily over time. In fact, before the lawsuit, Lizzo’s Instagram never declined more than 0.1% over any seven-day period in 2023. .
Seeing some fans’ reaction to Lizzo’s lawsuit recalls how Doja Cat lost about 600,000 Instagram followers in roughly two and a half weeks, according to Chartmetric, after the rapper traded barbs with her fans. She received none of the groundswell of support that Jason Aldean experienced after CMT’s decision to pull the video for his song “Try That in a Small Town” sparked a national conversation. From July 1 to August 10, Aldean’s YouTube subscribers grew by 10.9% to 2.7 million, his Instagram followers increased 5.9% to 4.3 million and the track went to No. 1 on the Hot 100. But, as Kanye West’s rebounding music consumption suggests, listeners may not stay mad for long.
Longtime music executive Steve “Steve-O” Carless has partnered with Warner Records on a joint partnership to start his label Defiant Records. Carless, who is president of A&R at Warner, told Billboard that creating Defiant was a “lifelong mission.”
“I just believe in achieving what you set out to do no matter the risk, test, or obstacle,” he said. “It’s important to be brave and intentional to not lose sight of that. I wanted this to be representative of the career I’ve been privileged to have and also speak to the artists who dream to create their story on their own terms, who aren’t scared to be who they are unapologetically.”
Defiant Records houses burgeoning acts, including Bandmanrill, Sha EK, and McVertt, who teamed to craft the bulky 27-track project The Defiant Presents: Jiggy In Jersey. Executive produced by McVertt (who co-produced Lil Uzi Vert’s Hot 100 top 10 hit “I Just Wanna Rock), Bandmanrill and Sha EK thrive in a playground where Jersey Club and drill music coexist. Having previously worked with Pusha T, Big Sean and the late Nipsey Hussle, among many others, Carless believes his experience will come in handy when building out the careers of his signees.
“I truly believe that my experience affords these artists an opportunity and mentorship that’s hard to duplicate,” Carless relayed to Billboard. “I have 10,000 hours of experience in management, A&R, digital, and promotions. I’ve been inside a record company for my whole career and have simultaneously operated outside of those buildings as well. I’ve helped build brands and companies and also understand the agency piece of it thoroughly. I think all of that super-serves these artists in a way that can create more unexpected opportunities and expedited learning because it’s a unique situation here at Defiant Records.”
Regarding plans to grow Defiant Records into a powerhouse, Carless has a simple rinse-and-repeat strategy he thinks will be the blueprint for his label.
“The plans are simple, be authentic and detailed. We set attainable goals, achieve them, and repeat. We will always be the best in our space. The name of the game is to be consistent and curate our big-picture and individual stories simultaneously. Our focus has primarily been YouTube because it’s the most current breeding ground for global talent, and we’ve signed each one of our artists based on their following on the platform.”
Stream The Defiant Presents: Jiggy In Jersey below.
Long before signing Nirvana and the Foo Fighters to their respective record labels and, later, becoming AEG Presents’ global touring and talent president, Gary Gersh was a devoted The Band fanatic. While working at Licorice Pizza in California, he saw the influential rock ‘n’ rollers perform numerous times, and as a young Capitol Records employee, he befriended Robbie Robertson, who died Thursday at 80, during The Band’s The Last Waltz farewell concert.
By phone from a Minneapolis airport, Gersh recalls his early encounters with The Band; coaxing Robertson into recording his 1987 self-titled solo debut while working as a Geffen Records A&R man; and long conversations with the guitarist and songwriter in Woodstock, N.Y.
How did you come to be involved with The Last Waltz?
I was a young guy starting out, and The Band were on [Capitol] and doing their thing when they decided The Last Waltz would be the last show. I get up there for rehearsals, and for the show itself, and it was monumental. I watched Robbie in the middle of it all, being different than a musician — he was always talking to cameramen and Mr. [Martin] Scorsese [who directed the 1978 film documenting the event]. It was a beginning of an education. Robbie helped raise me and I was fortunate to have somebody so unbelievably talented and so beautiful as a human being teaching me so much.
What moment do you remember most from that concert?
Robbie was front and center in a way he had never been seen before. Not necessarily the most important member, because the beauty of The Band was the quality of the whole and everybody mattered, but Robbie was the star on screen. Because of the way everything was captured, all of a sudden people were seeing this guy as one of the greatest live guitarists that ever lived.
How did you get to Capitol Records back then?
Gary Gersh photographed on Oct. 21, 2019 at AEG Presents in Los Angeles.
Sally Peterson
I had come from a chain of record stores, Licorice Pizza, and Capitol was my first record-company job. The Band had put out a Christmas song [“Christmas Must Be Tonight,” recorded in 1975 and, released two years later] as a single, and I was crazy for it. I was just this guy at the record label, at the very, very bottom, jumping up and down and screaming about The Band. They weren’t the biggest priority at the time, because they weren’t the biggest band, but, to me, they were the most influential band in American music. I saw them play at the Santa Barbara Bowl when I was in my late teens and it was probably well over 100 degrees. Robbie was dressed up in a suit and they were all just dying from the heat, but there they were, just being The Band, and they crushed every time I saw them.
You helped him make Robbie Robertson — how did that come about?
One of the first things I did as an A&R guy was sign Robbie and talked him into making solo records, which, at the time, he wasn’t thinking of doing. I said, “You can’t stop making music. You can do whatever else you need to do, but you can’t stop making music.” I kind of didn’t know what I was talking about, but I think he got that I could be a partner on the ride.
What was making that album like?
He was developing what he wanted his sound to be while we were working on the record. I had always known that [producer] Daniel Lanois was the guy to make the record, and Robbie knew it but had never met him. They hit it off famously. … Daniel pushed Robbie in ways I’m not sure had ever happened before. Robbie had always written multiple verses and had extra lyrics from all the songs. I had never seen that before. There were whole verses being moved in a way that took all of us to see and help develop.
Was there a moment that stands out from that process?
When the first solo album was finished, we mixed the record with [engineer] Bob Clearmountain at Bearsville Studios [in Woodstock, N.Y., site of many Band recordings], which Robbie obviously had a real history at. The day we got to Woodstock, we got a six-pack and he took me over to Big Pink, and we sat on the curb, and I just started asking questions. He was one of the greatest storytellers, whether he was talking about a meal at dinner or a film or music. He talked about how, once they got into the house, they started writing songs from fragments of things. And how Robbie thought each piece was like an actor in a play or a movie, and how they would come and go in a way that made it so cinematic.
When was the last time you saw him?
I talked to him a few weeks ago — he knew my family and knew my wife, and we had young kids and were starting to raise a family, and he had already had one.
Anything else you’d like to add?
He introduced me to so many people — so many musicians — that I had never thought in my life I would know. But he felt it would be part of my education. Van Morrison was just on the music system here [at the airport]. I remember meeting Van because Robbie introduced me to him when they were working on a song [“Wonderful Remark”] for the [1983] King of Comedy soundtrack. I hear things and I’m just reminded everywhere I go. I think that’s the way it is with great teachers. It never leaves you.
Ivan Cornejo has signed a record deal with Interscope Records, the Universal Music Group-owned label announced today (Aug. 10). The música mexicana singer-songwriter had been signed to indie label Manzana Records since 2021.
The 19-year-old artist went from social media phenomenon to chart-topping artist when he topped Billboard‘s Latin Songwriters chart dated Oct. 30, 2021 thanks to his hit sierreño anthem “Está Dañada,” which then became only the second regional Mexican song to enter the Hot 100 tally. The track later got a remix featuring Jhayco. Last year, he scored his first No. 1 on the Regional Mexican Albums with his sophomore album, Dañado, and he won new artist of the year the 2022 Billboard Latin Music Awards.
“I am really excited to begin this new chapter of my career,” Cornejo said in a statement. “It’s been a long road even though my career is young and we have built a really strong foundation up until now. I am looking forward to working with John and Nir and the entire team at Interscope to continue to build and take my project to the next level.”
Cornejo made his Lollapalooza debut on Aug. 5, where he officially kicked off his Terapia Tour, which will make stops in major cities such as New York, Atlanta, Dallas and Houston before wrapping up with two back-to-back shows in Chicago on Nov. 16-17.
“At Interscope we have always been attracted to artists who move culture, and Ivan has already proven he is on that path,” said John Janick, chairman and chief executive officer of Interscope Geffen A&M Records. “He is absolutely one of the most exciting new artists in music and we are looking forward to working with him and his team on the next chapter of his incredible career.”
“Ivan is truly a special artist, a songwriter of depth and a masterful live performer,” said Nir Seroussi, Interscope executive vice president, who oversees Interscope’s efforts in Latin music. “In a very short time he built a passionate and loyal fanbase which has propelled him up the charts. We’re so proud that he’s chosen Interscope as his new creative home.”
Ivan Cornejo’s move from an indie Latin label to a mainstream label comes just two months after Interscope signed Karol G, joining a roster of Latin acts that include Kali Uchis, Cuco and Bad Gyal, among others.
Universal Music Group is in the early stages of talks with Google about licensing artists’ voices for songs created by artificial intelligence, according to The Financial Times. Warner Music Group has also discussed this possibility, The Financial Times reported.
Advances in artificial-intelligence-driven technology have made it relatively easy for a producer sitting at home to create a song involving a convincing facsimile of a superstar’s voice — without that artist’s permission. Hip-hop super-fans have been using the technology to flesh out unfinished leaks of songs from their favorite rappers.
One track in particular grabbed the industry’s attention in March: “Heart On My Sleeve,” which masqueraded as a new collaboration between Drake and the Weeknd. At the time, a Universal Music spokesperson issued a statement saying that “stakeholders in the music ecosystem” have to choose “which side of history… to be on: the side of artists, fans and human creative expression, or on the side of deep fakes, fraud and denying artists their due compensation.”
“In our conversations with the labels, we heard that the artists are really pissed about this stuff,” Geraldo Ramos, co-founder and CEO of the music technology company Moises, told Billboard recently. (Moises has developed its own AI-driven voice-cloning technology, along with the technology to detect whether a song clones someone else’s voice.) “How do you protect that artist if you’re a label?” added Matt Henninger, Moises’ vp of sales and business development.
The answer is probably licensing: Develop a system in which artists who are fine with having their voices cloned clear those rights — in exchange for some sort of compensation — while those acts who are uncomfortable with being replicated by technology can opt out. Just as there is a legal framework in place that allows producers to sample 1970s soul, for example, by clearing both the master and publishing rights, in theory there could be some sort of framework through which producers obtain permission to clone a superstar’s voice.
AI-driven technology could “enable fans to pay their heroes the ultimate compliment through a new level of user-driven content,” Warner CEO Robert Kyncl told financial analysts this week. (“There are some [artists] that may not like it,” he continued, “and that’s totally fine.”)
On the same investor call, Kyncl also singled out “one of the first official and professionally AI-generated songs featuring a deceased artist, which came through our ADA Latin division:” A new Pedro Capmany track featuring AI-generated vocals from his father Jose, who died in 2001. “After analyzing hundreds of hours of interviews, acappellas, recorded songs, and live performances from Jose’s career, every nuance and pattern of his voice was modeled using AI and machine learning,” Kyncl explained.
After the music industry’s initial wave of alarm about AI, the conversation has shifted, according to Henninger. With widely accessible voice-cloning technology available, labels can’t really stop civilians from making fake songs accurately mimicking their artists’ vocals. But maybe there’s a way they can make money from all the replicants.
Henninger is starting to hearing different questions around the music industry. “How can [AI] be additive?” he asks. “How can it help revenue? How can it build someone’s brand?”
Reps for Universal and Warner did not respond to requests for comment.
Tom Becci has joined Concord Label Group as chief executive. In the newly created role, he will oversee Concord’s recorded music division, including frontline label and catalog operations.
Becci, who will be based in Los Angeles and report to Concord CEO Bob Valentine, comes to CLG from Red Light Management, where he spent the last seven years working with founder Coran Capshaw in several areas, including organizational structure, new business opportunities and artist contract negotiations. He also monitored Red Light’s investments and played a role in Red Light’s label development and investment in such companies as LEO33, Chess Club Records and AMF Music. Prior to Red Light, he was COO of Universal Music Group Nashville.
“Having admired the work of Concord for years, I am thrilled to join this incredible company,” said Becci in a statement. “It is abundantly clear that the label group’s passionate, dedicated team works day in and day out in service of its artists and has built something truly unique. With the help of the label presidents, the entire Concord staff, and inimitable artists like Pierce the Veil, Killer Mike, Thirty Seconds to Mars, Allison Russell, and so, so many more, I can’t wait to continue building on what has been established and usher Concord Label Group into a new era.”
CLG’s frontline labels include wholly owned Concord/Rounder, Concord Jazz, Fantasy Records, Fearless Records, and KIDZ BOP and joint ventures with Easy Eye Sound, PULSE Records and Loma Vista Recordings. Its catalog labels include such imprints as Fania, Prestige, Specialty, Stax and Telarc.
“Concord is at a pivotal point in its company story,” said Valentine, who ascended to CEO in July. “Tom has spent his career helping to operate and lead some of the most important recorded music and artist management groups in the U.S. He knows what it takes to keep a music enterprise culturally, financially, and operationally healthy and I am eager to work with him as we continue to bolster our global footprint in support of artists and creators, as well as their legacies. As we enter this next chapter for Concord Label Group, I am thrilled to have him at the helm along with our label presidents and Concord’s senior team.”
Sony Music Entertainment’s revenue rose 16% to 358.2 billion yen ($2.5 billion) last quarter, as hit records by SZA, Miley Cyrus and Harry Styles helped boost growth in both recorded music and music publishing.
For the fiscal quarter ended June 30, SME reported quarterly operating income of 73 billion yen ($510 million), a 20% rise on the same period a year ago. Adjusted earnings before interest, taxes, depreciation and amortization were up 11% year-on-year, totaling 83 billion yen ($580 million).
The company said growth in streaming subscription revenues and the impact of foreign exchange rates were among the key drivers of its positive quarterly financial results. SME said it also benefitted from a 6 billion yen ($41 million) operating income boost from the completed acquisition of an unnamed company.
SZA’s SOS, Miley Cyrus’ Endless Summer Vacation and Harry Styles’ Harry’s House were among the company’s top performing titles of the quarter. SME also named Luke Combs’ Gettin’ Old, the 10th anniversary reissue of Daft Punk’s Random Access Memories, Foo Fighters’ But Here We Are and Beyonce’s Renaissance among its 10 best-selling releases in the first three months of the current financial year.
On the back of those sales, Sony Music’s recorded music division’s revenues rose 19% to 237.7 billion yen ($1.6 billion), with streaming revenue growing by almost 19% to 164.8 billion yen ($1.1 billion), accounting for 69% of total recorded music revenue.
Physical sales fell 2.4% year-on-year to 24.9 billion yen ($174 million) and accounted for just over 10% of the quarter’s recorded music revenue. Download sales rose slightly to 7.7 billion yen ($53 million), up around 2% compared to the same quarter a year prior.
License revenue, including public performance, broadcast and sync sales, coupled with merchandising and live performance income, brought in an additional 40.1 billion yen ($280 million) to Sony’s recorded music division.
On the publishing side, revenues increased 19% year-on-year to 75.1 billion yen ($524 million). Within publishing, streaming sales rose 24% to 41.6 billion yen ($290 million), while other publishing income totaled 33.5 billion yen ($234 million).
Revenues from the company’s residual media and platform business, which represents less than 10% of SME’s operating income and includes animation titles and game applications, was more-or-less flat as the same period last year at 42.8 billion yen ($299 million). That total was, however, down 16% when compared to the previous quarter’s 53.4 billion yen ($372 million).
Looking ahead, Sony Music Entertainment raised its forecast for full-year revenue by 6% to 1.49 trillion yen (approximately $10 billion) with a projected operating income of 280 billion yen (approximately $1.9 billion).
Warner Music Group reported quarterly revenue was up 9% as of mid-year, as the third-largest U.S.-based music company beat Wall Street estimates for revenue and profit on big album releases by Ed Sheeran, Melanie Martinez others.
WMG reported revenue for its fiscal third quarter ending June 30 rose to $1.56 billion — analysts had expected $1.47 billion — driven by strong releases and a 15.5% uptick in music publishing revenue of $283 million. Streaming revenue rose by 9.5% overall and digital revenue was up 8.8% to $1.03 billion compared to the year ago quarter. Net profit edged slightly lower to $124 million from $125 million a year ago but still beat analysts’ expectations.
“We had a great release slate with lots of momentum and success, but at the same time our catalog has also delivered,” WMG Chief Executive Robert Kyncl said on a call with analysts. “We are firing on both engines.”
WMG’s stock was up 8% by mid-day trading in New York.
Executives said the current quarter is off to a good start with major releases from Lil Uzi Vert, Dua Lipa and the Barbie movie soundtrack, and upcoming releases from Zach Bryan and Charlie Puth.
“Our results show we’re gaining real traction,” Kyncl said, adding that as price increases from Spotify, YouTube and others filter in to WMG’s financials this quarter, the company can expect continued strength.
“We see these initial price increases as an encouraging start,” Kyncl said. “There’s no evidence that the services are experiencing elevated levels of customer churn. We believe the market will bear further price increases in the future, and we’re expecting that they’ll arrive on a more regular cadence than in the past. “
The growth in music publishing revenues was driven by a 26.4% uptick in digital revenue and 27.1% increase in streaming revenue, reflecting the impact of digital deal renewals and a revenue true-up of $9 million from the CRB. Mechanical revenue spike about 45% primarily due to a higher share of physical sales in the quarter.
Recorded revenue rose 7.8%, bolstered by a 5.6% increase in digital revenue and a 6.3% increase in streaming revenue on the stronger release schedule and growth in ad-supported revenue.
WMG prefers to use operating income before depreciation and amortization (OIBDA) as a metric to assess its overal business health, and OIBDA increased 18% to $275 million in the quarter compaired to $233 million a year ago. Adjusted OIBDA rose 16% to $297 million from $255 million a year ago.
Key WMG financial highlights:
Total revenue rose 9% to $1.56 billion for the second quarter 2023, from $1.43 billion in the same quarter 2022.
Net profit, or net income, was flat at $124 million this quarter compared to $125 million in the year ago quarter.
Digital revenue rose 8.8% to $1.03 billion from $944 million in in the year ago quarter.
Streaming revenue rose 9.5%
Recorded music revenue rose 8% to $1.28 billion from $1.19 billion in the year ago quarter.
Music publishing revenue rose 16% to $283 million from $245 million in the year ago quarter.
Operating income was up 29% to $189 million from $146 million in the year ago quarter.
OIBDA was up 18% to $275 million compared to $233 million in the year ago quarter, with OIBIDA margin of 17.6%, up from 16.3%.
Shortly after notching his first Billboard 200 top ten album with Been One, Rylo Rodriguez became the first artist signed to Lil Baby’s Glass Window Entertainment through a partnership deal with Motown Records and Capitol Music Group. According to sources, the signing of Rodriguez is believed to be a multi-million deal. “I’m overly excited for Rylo […]
300 Elektra Entertainment has promoted Aimie Vaughan-Früehe to executive vp/head of promotion and streaming, the company announced Wednesday (Aug. 2). In the role, Vaughan-Früehe will oversee all radio promotion and streaming across the label group, which includes 300 Entertainment, Elektra, Fueled by Ramen and Roadrunner Records as well as a roster of artists that includes […]