Record Labels
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It’s a good thing that there’s a German word for pleasure in the misfortune of others: schadenfreude.
Just before the Grammy Awards, The New York Times published an investigation that revealed that BMG signed, then let go before it released any music, the French rapper Freeze Corleone, who had previously been dropped by Universal Music Group for lyrics in previous music in which he compared himself to Hitler. Then, the following week, on Feb. 9, the German newsweekly Der Spiegel reported that Universal Music had made a distribution deal with the band Weimar, at least some of whose members had extreme right-wing affiliations in their past — and which the label immediately dropped when this came to its attention. (The band has since issued a statement renouncing extremism, xenophobia and racism, and two of the members admitted to a “right-wing-motivated past” but said they had since changed their ways.)
The schadenfreude, directed toward both labels, came from competitors and may have been heightened by BMG’s penchant for criticizing the majors for a business model it deems outmoded. “Look what they did,” some said. “Well, I mean, sure — OK — that last bad thing we did wasn’t exactly good but wasn’t much of a story. But this? This is a story!”
Both companies can claim some moral high ground: BMG’s French operation released Freeze from his one-album contract as soon as Dominique Casimir, who is now the company’s chief content officer, asked for additional checks into the rapper’s history. (BMG’s deal with Freeze gave it the right to reject the album if it included antisemitic lyrics, which it didn’t.) Universal, which wasn’t aware of Weimar’s members’ backgrounds — the musician that Der Spiegel describes as the worst of the band’s members did not have his name on the recording contract and wasn’t in the group as far as the label knew — dropped the act when it discovered its past connections to the far-right.
But I don’t think either has much to be proud of, either. BMG knew Freeze had been dropped by Universal and signed him anyway; a memo sent by an executive in the label’s French office said the rapper “faced controversy,” which is offensive in its understatement. Less is known about the Weimar situation — Universal said in a statement that despite efforts to vet the act, “we were unaware of the band members’ background” — but a group named after the inter-war German government would seem to merit more intense scrutiny. (To be fair, the group’s lyrics, which seem so alarming given the members’ backgrounds, seem melodramatic but cliché taken out of context.) Most people in the music business seem to have an opinion on which of these incidents was worse, but there are no bragging rights for having the industry’s second-worst antisemitic issue of 2023 — especially when it’s only February.
My own opinion on all of this is complicated by the fact that I’m Jewish, and I happen to live in Berlin, not far from the offices of these companies. And I’ve already disappointed some industry acquaintances looking for an easy villain by pointing out that the people involved — Casimir directly and BMG CEO Hartwig Masuch and Universal Music Central Europe chairman and CEO Frank Briegmann far less directly — are decent people who try hard to do the right thing and in both of these cases did so as soon as they fully understood the situation. That’s important.
However unsatisfying it might seem, the villain here may be a gold-rush for streaming market share and an industrywide shift toward single-album deals and distribution agreements. Until a decade ago, most artists signed long-term recording contracts and worked closely with A&R executives. These days, some artists simply hand over finished music — which sounds really cool until something like this happens — and the economics of streaming incentivize grabbing market share now and asking questions later.
That’s an explanation, though — not an excuse. And while both BMG and UMG have admitted they messed up, neither has publicly discussed any kind of plan to avoid making the same kind of mistake in the future. Both companies should do so — and soon. That’s especially important for BMG, which is owned by Bertelsmann, a German media conglomerate that printed books for the Nazi army during World War II. Everyone who ran Bertelsmann back then is dead, and everyone I know who works there now is very nice, but the company’s past gives it a responsibility to do better.
Both BMG and UMG want to put these controversies, and these artists, behind them — but they can’t avoid taking responsibility. (This can be complicated: UMG is still distributing the Freeze album it put out before it dropped the rapper, presumably because he has an ongoing defamation lawsuit against the label. “Universal Music France (UMF) does not work with Freeze Corleone and has not done so since September 2020 when, after one week, we ended our relationship with him with immediate effect,” according to a statement from the company. “Because this is the subject of a pending legal matter, we are unable to comment further, other than to say that we deeply regret that we were unaware of the situation prior to starting collaboration with Freeze Corleone.”) In 2018, when BMG faced another controversy about rappers with antisemitic lyrics, it donated 100,000 euros to a campaign against antisemitism, which is a significant gesture — but situations like this can’t be solved with an expensive swear jar. Companies need to think about how to keep this kind of thing from happening again.
At a bare minimum, record companies need to spend a few hours learning about artists they sign or distribute. (Going out to lunch or dinner: Not scalable, usually inefficient, often worth the time.) If they release controversial music — which may well be the right move when it comes to music that’s political, rather than racist or antisemitic — they should put their brand names on it. (BMG planned to release Freeze’s album without its logo, which the label has done for other acts, for reasons that have nothing to do with controversy.) If you’re not proud of it — not necessarily as politics but at least as art and expression — don’t put it out.
And if you take antisemitism and fascism seriously, don’t just drop acts that cross the line. Tell Spotify that Joe Rogan went too far when he said on his podcast that “the idea that Jewish people are not into money” is “like saying Italians aren’t into pizza.” (I like both, as do most people I know, but crudeness aside, no one has threatened Italians with genocide for their alleged food preferences.) Try to get Roger Waters to criticize Israel in ways that don’t play into antisemitic conspiracy theories. Ask Jay Electronica why he started the 2020 album A Written Testimony by sampling the notoriously antisemitic Louis Farrakhan asking, “Who are the real children of Israel?”
These won’t be easy conversations, but it’s time to have them. Then, maybe, we can try to go the rest of the year without anything like this happening again. We only have 10 and a half months to go.
For the Record is a regular column from deputy editorial director Robert Levine analyzing news and trends in the music industry. Find more here.
SM Entertainment’s revenue in 2022 grew 18.7% to 848.3 billion won ($657 million at the average 2022 exchange rate) in 2022, the Korean music company announced Monday. Gross profits rose 15.4% to 297.5 billion won ($230 million), operating profit fell 3.7% to 93.9 billion won ($73 million) and operating margin dropped from 13.6% to 11.1%.
The K-pop company’s roster includes NCT Dream, NCT 127, Aespa and Red Velvet. NCT Dream had the fourth most album sales of any artist in Korea in 2022 with 4.1 million units. Red Velvet was the No. 9 artist with 2.4 million units, NCT 127 was No. 11 with 2.2 million units and Aespa was No. 13 with 1.8 million units.
In the U.S., NCT Dream reached No. 39 on Billboard’s Artist 100 chart in April 2022, while the group’s album Glitch Mode peaked at No. 50 on the Billboard 200 album chart. NCT 127’s latest album, 2 Baddies, peaked at No. 3 on the Billboard 200 in October.
Although SM Entertainment’s largest source of revenue, recorded music, declined 3.7% in 2022, gains in other parts of the business made up for the loss: Concerts jumped tenfold from a pandemic-led slowdown, licensing climbed 62.2% and appearances jumped 48.1%.
In the fourth quarter, SM Entertainment’s revenue rose 7.7% to 256.4 billion won ($188.6 million at the quarter’s average exchange rate). Operating profit rose 70.3% to 25.2 billion won ($18.5 million) and operating margin improved 9.8% from 6.8% in the prior-year period. Net profit fell 72.7% due in part to the sale of real estate in the fourth quarter of 2021 for 19.7 billion won ($14.5 million). The company also experience 7.5 billion won ($5.5 million) of foreign-currency-related loss in the quarter.
SM Entertainment’s earnings release arrived amidst a brewing controversy over an investment in the company by its largest competitor, HYBE. In a deal finalized on Feb. 22, SM Entertainment founder Lee Soo Man sold a majority of his shares to HYBE in what SM Entertainment CFO Jang Cheol-hkuk called a “hostile takeover” that will “undermin[e] the diversity of the K-pop market.”
SM Entertainment’s vision for the company includes Korean entertainment and tech company Kakao, which announced on Feb. 9 it would acquire a 9.1% stake in SM Entertainment. As SM Entertainment laid out in a presentation released Feb. 22, Kakao’s technological capabilities could help SM Entertainment build a stronger line-up and upgrade online fan platforms. Kakao owns the music streaming service Melon.
In an open letter posted on social media on Tuesday, HYBE CEO Park Jiwon argued that together the companies have an opportunity to reach more fans and “stand shoulder-to-shoulder with the world’s major record labels.” HYBE believes it can help SM Entertainment artists in North America and prizes SM Entertainment’s infrastructure in China and Southeast Asia, regions where HYBE currently does little business.
Brad Paisley has shifted labels, from his longtime home at Sony’s Arista Nashville, to EMI Records Nashville, under the Universal Music Group Nashville (UMGN) umbrella.
The move reunites Paisley with UMGN chairman/CEO Mike Dungan and president Cindy Mabe. Dungan was instrumental in signing Paisley to his first deal at Arista Nashville, while Mabe served as Paisley’s marketing point person through many of his early album cycles including Mud on the Tires and Time Well Wasted. He also joins a label group roster that includes several of his collaborators, including Carrie Underwood, with whom Paisley co-hosted the CMA Awards for more than a decade and together earned a No. 1 Country Airplay hit with “Remind Me” in 2011. He is also now labelmates with his “Start a Band” collaborator Keith Urban.
“There were two people that should get the credit that you even know my name – Mike Dungan and Cindy Mabe. I ran into Mike at the fishing department at Walmart after having met with several labels and he talked me into signing my first deal with Arista. They assigned this woman named Cindy Mabe to me – we graduated the same day at Belmont. I got to work with her on my first few albums and now I get to work with her at UMG,” Paisley said via a statement. “Cindy’s a genius and terrific human being. She heard what I was up to with the new music, and she pointed me further into the direction I was headed. I’ve never had this kind of enthusiasm and empowerment. She said, ‘Make music that matters.’ It’s an amazing thing to work with Mike and Cindy again. It’s great to know they believe in this music as much as I do.”
For more than two decades, Paisley’s razor-sharp songwriting, keen wit and dedication to country music have garnered him three Grammy Awards, 14 CMA Awards, 15 ACM Awards and more accolades. He was inducted as a member of the Grand Ole Opry in 2001. During his career, he’s posted nine albums at the pinnacle of Billboard’s top country albums chart, and earned nearly two dozen hits on the Country Airplay chart.
Paisley’s first UMG Nashville album is slated for later this year, while he will release a new song from the upcoming project on Feb. 24. Titled “Same Here,” Paisley wrote the song with Lee Thomas Miller and Dawes frontman Taylor Goldsmith, with production by Luke Wooten.
“Brad is a true creative. He has no boundaries to what he uses as his canvas. He has used his voice and his words as a gift to heal the world through his philanthropy, his song writing, his guitar playing, his entertaining, his music videos, his sense of humor and his heart,” Mabe said via a statement. “He has been a part of the country music duo with Carrie Underwood that helped define country music to the world. And getting to reunite with my friend and collaborator in his next creative adventure is something I’ve wanted for a long time. I cannot wait for him to share the music he has created with the world.”
Just in time for what would have been George Harrison’s 80th birthday, BMG and Dark Horse Records have reached an agreement to bring his solo recorded works to BMG. It marks the first time that Harrison’s recorded and publishing works are under the same roof.
BMG entered into a global deal last year with the George Harrison Estate to administer the 200-song plus Harrisongs catalog, which includes all of Harrison’s work written with the Beatles, the Traveling Wilburys and his solo career. Harrison died in 2001.
“This is a banner day for BMG, bringing together for the first time the song and recorded rights of one of the greatest musicians in popular music history under one roof,” said BMG CEO Hartwig Masuch in a statement. “Only BMG can do this. We look forward to working with the George Harrison Estate and Dark Horse Records to promote George’s peerless music to generations old and new.”
To commemorate his Feb. 25 birthday, Dark Horse and BMG have released Harrison’s entire catalog in Dolby Atmos surround sound exclusively on Apple Music.
Harrison’s recorded catalog features 12 studio albums of solo works including his debut Wonderwall Music (soundtrack to the film Wonderwall) and the US and UK chart-topping critically acclaimed, 7x Platinum-certified triple album All Things Must Pass featuring the No. 1 hit “My Sweet Lord,” “What Is Life,” “Isn’t It A Pity” and “All Things Must Pass.” Other albums include Living In The Material World, featuring “Give Me Love (Give Me Peace On Earth),” his Platinum-certified Cloud Nine, featuring “Got My Mind Set On You,” and his final studio album Brainwashed featuring the Grammy award-winning “Marwa Blues.”
The catalog also includes the live double album, Live in Japan, featuring Eric Clapton, and four compilations Let It Roll – Songs by George Harrison, Early Takes Vol 1, The Apple Years 1968-1975 and The Dark Horse Years 1976-1992.
The partnership expands on BMG’s relationship with Dark Horse Records as BMG serves as its global partner and infrastructure across recorded music, music publishing and merchandise, including the launch of a new merchandise store for Harrison and the introduction of the Dark Horse Sounds wellness music series.
While BMG and Dark Horse have not announced an album rollout beyond the Apple Music exclusive, Harrison’s son Dhani hints in a statement that there is more coming.
“22 years since his passing, for what would have been his 80th birthday, I am overjoyed to announce that we are bringing my father’s music catalogue back home to Dark Horse Records, the company he started back in 1974. We look forward to releasing only the finest of packages and hope the fans join us on the deepest of dives into our archives as we continue to grow his legacy through our partnership with BMG, starting with the release of his entire back catalog in Spatial Audio, for the first time, on Apple Music,” he says. “We also will be using this opportunity to make all the custom limited vinyl that we can get away with. Happy 80th Dad!!! We love you always.”
The catalog partnership is the latest move in the relationship between BMG and Dark Horse, which began in 2020 to revive the label Harrison launched in 1974. Dhani Harrison runs Dark Horse with David Zonshine. Last year, Dark Horse signed a new licensing agreement with the Leon Russell estate for 16 albums by the late singer/songwriter and Harrison friend, as well as with Joe Strummer’s estate to administer the Clash co-founder’s music publishing. BMG has been working with Dhani since 2014.
Thomas Scherer, BMG president of repertoire & marketing, New York and Los Angeles, said, “For years we have had an amazing partnership with Dhani and David that continues to grow to this day. What began as working with Dhani on his own albums and publishing, to the re-launch and expansion of the Dark Horse Records business, together we believe in providing white glove service for artists, globally, with enormous opportunities to grow. We are proud to bring all of George Harrison’s music together, under one roof, and are very grateful for Olivia and Dhani’s trust in BMG.”
LVRN continues to bolster the company by adding nine-time Grammy-winning producer and songwriter Bryan Michael Cox. Cox will serve as senior vp of A&R and executive producer for upcoming albums and artists for the label.
“A&R has become a lost art in this new generation of music because of the gap in relationship between A&R, the artist, and the label,” says Justice Baiden, LVRN co-founder. “Bryan-Michael Cox is a respected and accomplished producer and executive, and he’s the perfect addition to our team to help continue in bridging that gap. Bryan not only speaks the same language as the artist, but he also shares the same values as LVRN. We are on an unwavering mission to disrupt and redefine the rules of the music industry while also preserving the quality and integrity of the music. When I think of someone who handles music with care, I think of Bryan, and we’re excited to welcome him home to Atlanta and LVRN.”
“The time is right for this union because what LVRN has been able to do culturally is incredible,” adds Cox, who has worked with Usher, Mariah Carey and Justin Bieber throughout his career. “The commitment to the full picture of artist development is something that this business has been missing. From the single selections to album track listing to the rollouts, each artist has been launched uniquely with care. Justice pays attention to detail, and he has great understanding of what hit records should sound like without compromising the artists creativity and identity. I have a great track record of being able to bond with artists, get the best out of them, and, of course, being able to create or identify hit records. This is a perfect fit.”
Earlier this year, CEO and co-founder of MUSIC Matt Pincus joined the label’s board of directors and invested $25 million. The investment values LVRN at more than $100 million.
As the country music community continues to grapple with ways to increase diversity and inclusion, the Black Music Action Coalition (BMAC) and Academy of Country Music have come together to launch OnRamp, a program set to empower the next generation of Black leaders.
The OnRamp partnership will take 20 young, Black artists and music industry professionals in Nashville through a year-long program that includes access to top leaders, community mentorship and professional development. Vitally, the program comes with a guaranteed $1,000 monthly stipend for the 12 months.
Applications will be available starting in late Spring with the program kicking off in June during Black Music Month. Candidates can sign up for email notifications now at acmcountry.com/onramp to learn more.
This inaugural program will be funded by BMAC, the Academy and industry partners, and aided by social impact agency BreatheWithMe. The hope is that Nashville companies will make financial contributions to fund future years.
“The Academy has a rich history of fostering diversity and inclusion in the country music industry both on stage and behind-the-scenes, and we see this partnership as a particularly impactful way to continue our committed work to making the statement ‘Country Music is for Everyone’ a true reality,” said ACM CEO Damon Whiteside in a statement. “We’re excited to work with BMAC on this pivotal and transformative work for our Nashville community by increasing opportunities for young professionals from diverse backgrounds in our industry.”
The Academy relocated from its longtime home in Southern California to Nashville last year.
The guaranteed income component was critical, BMAC co-founder/co-chair Willie “Prophet” Stiggers tells Billboard. He studied such initiatives including a program started by former Stockton, Calif., mayor Michael Tubbs a few years ago that guaranteed $500 a month to 125 residents for 18 months and has now spread to more than 50 cities.
“All the data showed how people were lifting themselves out of poverty and realizing their dreams, not just from the cash relief, but the mentorship and wrap-around programs,” Stiggers says. “I said to myself and the BMAC team, with the billions of dollars the entertainment industry generates, we can, without government support, have these programs happen across the country and really begin to close the wealth gap that is targeting Black and Brown people.”
OnRamp comes several months after BMAC released its Three Chords and the Actual Truth report last June. The report called for the country music community and the city of Nashville to commit to change and equity through partnering with BMAC. The Academy was among the first companies to come aboard.
“They were really the first to raise their hand and says, ‘we’re prepared to stand with you and launch this program in Nashville and then call on the other companies up and down Music Row to partner with us.’ So this initiative can grow and become a sustainable part of the Nashville community,” Stiggers says.
The Academy’s LEVel Up: Lift Every Voice program will help facilitate OnRamp. LEVel Up is a two-year professional development program, originally launched last year and fully funded by the Academy, for rising leaders in country music. The members of the current LEVel Up cohort will play a hands-on role in the application review process and drive the candidate selection work, proposing a recommended slate of candidates to the Academy and BMAC teams.
Each of the 20 members of the inaugural OnRamp cohort will have a program designed specifically for them with their own facilitating team with the help of LEVel Up members and the Academy’s DEI task force. “For instance, if you’re a young person trying to become a manager, we’ll pair you with a manager who is killing it in that space and allow you to shadow them,” Stiggers says.
“It’s my pleasure to stand alongside other industry leaders to support this important program,” said ACM DEI Task Force chair/ACM board member and BMI executive Shannon Sanders, in a statement. “The Academy continues to play a pivotal role in ushering in a new era in country music by truly supporting and lifting up those underrepresented in the industry.”
Additionally, there will be money management and mental health components activated on a weekly or monthly basis. “The idea is to build the communities around each of these individuals that they need to help them realize their dreams,” Stiggers says.
Ultimately, the idea is to transform the country music industry across the board. “Five years from now when you’re able to have a few hundred young people who have been provided access in the training, resources and connections they need in the country music space I think we see a more diverse pool of artists and executives,” Stiggers says. “I think we see more Black women faces showing up on the executive side and I think we’ve opened this up to allow the charts to be reflective of the community that enjoys the genre, which isn’t the cast today.”
Earlier this year, the Country Music Association launched a diversity and inclusion fellowship program to provide an immersive experience in the country music industry initially through the CMA’s communications team in conjunction with the 50th anniversary of CMA Fest this June. Fellows will then work for six weeks with a country music publicity firm. Set to launch this Spring, the program is open to all students from underrepresented communities through Plank Center for Leadership in Public Relations and the University of Alabama, with additional collegiate partners including the University of Tennessee, Knoxville and Nashville’s Belmont University.
Such programs, as well as The Hubb, a professional development summit started by CAA in 2018, have Stiggers feeling optimistic. “I am encouraged to see people actually moving past the hashtags and trying to implement sustainable programs that are really going to create a more level playing field.”
Korean music company HYBE is more than getting by with its primary artist, BTS, on hiatus and its members pursuing solo projects and preparing for military duty. In 2022, HYBE’s revenue grew 41.6% to 1.78 trillion won ($1.41 billion at the Dec. 31, 2022 exchange rate), the company announced Tuesday (Feb. 21).
Adjusted earnings before interest, taxes, depreciation and amortization rose 23.9% to 328.8 billion won ($260.5 million). Margins were thinner that in previous years, however. Last year’s operating margin (as a percent of revenue) fell to 13.4% from 15.1% in 2021 and 18.3% in 2020. Adjusted EBITDA margin dropped to 18.5% from 21.1% in 2021 and 20.2% in 2020.
HYBE breaks revenue into two main categories: artist direct-involvement and artist indirect-involvement. Direct involvement revenues cover such things as recorded music, touring and management. Recorded music sales improved 47% to 553.9 billion won ($438.9 million) and was the largest single revenue source. Concert revenue jumped 470.1% to 258.2 billion won ($204.6 million) as artists returned to touring after scaling back performances during the pandemic.
BTS may be taking a break but it’s still HYBE’s sales leader in album-loving Korea. Four HYBE artists were in the top 10 of Korea’s year-end album tally: BTS was No. 1 with 5.75 million units, Seventeen was No. 3 with 5.56 million units, Tomorrow X Together was No. 5 with 2.78 million units and ENHYPEN was No. 8 with 2.64 million units. Le Sserafim was the No. 15 artist with 1.29 million units. As a point of comparison, the top album in the U.S. last year, Taylor Swift’s Midnights, sold the equivalent of 1.8 million units.
Artist indirect involvement revenue grew only 9.7% in the calendar year. Merchandising and licensing improved 24.8% to 395.6 billion won ($313.5 million) and fan club revenue grew 47.1% to 67.1 billion won ($53.2 million).
In the fourth quarter, HYBE’s revenue grew 16.9% to 535.3 billion won ($424.2 million) in the fourth quarter of 2022. Recorded music revenue jumped 76.4% to 149.1 billion won ($118.2 million) and was the largest single source of revenue.
BTS’s global success has allowed HYBE to diversify itself and rely less on the K-pop super group. In 2017, Korea accounted for 72% of HYBE’s revenues compared to 14% for Japan and 9% for North America. In 2022, HYBE had grown 19-fold from 2017 and had almost evenly balanced business between its three main markets: Korea (33% of revenue), North America (32%) and Japan (28%). The rest of the world contributed just 7% of HYBE’s 2022 revenue — but that could change if the company’s newest investment works as expected.
HYBE’s recent acquisition of a leading stake in competing K-pop company SM Entertainment is an opportunity to develop in markets where it currently has little presence. CEO Park Jiwon explained during Tuesday’s earnings call that HYBE artists can benefit from SM Entertainment’s strong network and infrastructure in China and Southeast Asia. Likewise, HYBE believes it can help SM Entertainment in the North American market.
HYBE latest acquisition didn’t impact 2022 results but will help expand its presence outside of Korea in 2023. On Feb. 8, HYBE purchased QC Media Holdings, the parent company of Atlanta-based hip-hop label Quality Control Music, the home of Migos and Lil Baby, for $300 million. Quality Control will sit under HYBE America and the leadership of CEO Scooter Braun, whose Ithaca Projects was acquired by HYBE in 2021.
One of the bigger surprises of 2023 so far has been the music of Lil Yachty, the Atlanta-based rapper who released his first project in three years earlier this month. But rather than delving into the hip-hop styles for which he’s known, Yachty branched out with Let’s Start Here, releasing an album that is more psych rock than trap rap — and receiving some of the best reviews of his career in the process.
The album debuted at No. 9 on the Billboard 200 and No. 1 on the Top Rock Albums chart last week, and has stuck around in the top 40 of the former and top 10 of the latter in its second week on the chart. And helping guide the stylistic switch up and land Yachty with some of the most intriguing collaborators he’s worked with in his career has been Motown Records vice president of A&R Gelareh Rouzbehani, who earns the title of Billboard’s Executive of the Week.
Here, Rouzbehani discusses the switch for Yachty from hip-hop to alt-rock, and the somewhat unexpected success that the album achieved, given how difficult it can be to change the narrative for an artist who is nearly a decade into his career at this point. “It goes to show that great music still reigns supreme,” Rouzbehani tells Billboard. “Working with Yachty on this album was more about adding ideas rather than taking things away. He had a really strong sense of the record he was making and, for me, it was about bringing session ideas to the table, people I felt like could add to his vision.”
This week, Lil Yachty’s Let’s Start Here spent its second week in the top 40 of the Billboard 200 and the top 10 of the Top Rock Albums chart. What key decision did you make to help make that happen?
The beauty of this album’s success thus far is that it has organically resonated with people around the world. It goes to show that great music still reigns supreme. Working with Yachty on this album was more about adding ideas rather than taking things away. He had a really strong sense of the record he was making and, for me, it was about bringing session ideas to the table, people I felt like could add to his vision.
This album represented a stylistic switch for Yachty, from rap to rock. What did that entail from the A&R side?
I remember when I first met Yachty in Atlanta and we shared a love of Tame Impala and music that inspired him as an artist and me as an exec. He has always wanted to make an alternative record and I was itching to A&R an alt-leaning album. We didn’t necessarily sit down and say, “Hey, let’s do this now.” The stars just aligned. He had met Pony, Patrick and Jacob and just started creating. I’m grateful that Yachty trusts me with his art. As much as it’s vulnerable for an artist to put themselves in that position, it’s also something I don’t take lightly. To be able to call him and bounce ideas back and forth is something I enjoy. He was open to meeting and working with Teo Halm, so we invited him to a session at Mac Demarco‘s studio. They started vibing, Teo was playing chords and Mac was on bass. Nami, another extraordinary creative, came to that session. Credit to Yachty for saying yes. That day, “drive ME crazy!” was created, which is now the No. 1 most consumed song [from the album].
How is it different A&R’ing a hip-hop record vs. a rock record like this?
The initial process for me is always the same. The way we go about making the records may be different and, of course, sonically there are differences, but there’s always very similar underlying characteristics. Being aligned with an artist’s vision is the most important part for me. Once that foundation is set, it’s like painting on a blank canvas, whether it be rap, alt, pop, rock. I’m most inspired when I’m giving creative input and it just flows.
What challenges exist in shifting genres like this, and how do you overcome them?
I think the challenge really lies outside of the world you build. There wasn’t necessarily a challenge going into making the record; that came very naturally to Yachty. Since he’s a multi-genre artist, he can literally make any genre of music, he’s just that type of creative. It was about making sure we don’t alienate his core fans but also grow and reach new audiences. It was also really important for the alt/rock community to grasp this type of record coming from Yachty, who has evolved so much musically.
The album debuted at No. 9 on the Billboard 200 and No. 1 on the Top Rock Albums chart with a strong critical reception. What did you do to help it succeed out of the gate, and how do you keep the momentum going now?
Having every department aligned on our goals was key for the rollout of this project. Everyone was really excited hearing the record, but the challenge was how to get it out to the world in the most meaningful and genuine way. That energy has to match the music, from marketing to international to creative. The goal was to have people listen to the album top to bottom, no skips, since it’s really a journey from the very beginning to the last track. Now, it’s about getting the live element in place and going into the second phase of marketing and our plans around ex-U.S. markets.
How has the job of an A&R changed over the course of your career?
Every A&R is different. It depends on each individual and what their strengths are and really focusing on those strengths. I’m very hands on and like to be a part of the creative process from inception, then putting a different hat on once we deliver the record.
Previous Executive of the Week: Debra Rathwell of AEG Presents
Former Roadrunner Records executives Dave Rath and Cees Wessels are spearheading a fresh rock label, Blue Grape Music (BGM), Billboard can exclusively reveal.
Rath, former head of A&R at Roadrunner Records, and Wessels, founder and ex-CEO of Roadrunner, have a long — and loud — history with the harder-edged stuff. The pair played their parts in shaping the careers of Nickelback, Slipknot, Type O Negative, Killswitch Engage, Fear Factory, Sepultura, Turnstile and others.
The first signing to BGM is Code Orange, the two-time Grammy Award-nominated hardcore punk band from Pittsburgh, PA, and whose first release through the label is What Is Really Underneath?, a 14-track companion to 2020’s Underneath, a collection that is part-remix, part-soundtrack.
“I have been lucky enough to be on the ground floor with Dave Rath and Co. watching them build the foundation of Blue Grape Music,” comments Code Orange frontman Jami Morgan in a statement, unveiling the new project. “There is no group of people that I have more faith in to create a fresh, forward leaning home for rock music and beyond.
Expect BGM and its roster to operate in the harder lane.
“The focus of the label will lean toward all forms of rock music, along with music that may reflect the attitude that made rock music what it is,” Rath tells Billboard.
Blue Grape Music “strives to be a place where artists have the latitude, support, and resources to grow and create something meaningful,” he continues. “We look for music that takes the culture it came from and moves it forward to new places.”
Sony Music’s The Orchard handles distribution for BGM, which has the “muscle and reach of a major” with the “attention and dedication of an indie,” reads a statement. Each signing can expect to work with a team “carefully crafted to best serve their creative vision and goals,” the message continues.
To reach those goals, the venture taps Roadrunner alumnae Suzi Akyuz as senior vp of marketing, and Paolo d’Alessandro as executive vp of international.
Rath spent 21 years in the A&R and creative departments of Roadrunner, where he A&R’d albums by Slipknot, Korn, Gojira, Coheed and Cambria, Slash, The Amity Affliction, Trivium, Stone Sour, Dream Theater, Megadeth and more.
Wessels left Roadrunner in 2012, some 17 months after the completion of the rock and metal specialist’s sale to the Warner Music Group.
Blue Grape is headquartered in New York City with its European operation in Amsterdam. Additional signings will be revealed in the coming months.
“The collective history of BGM’s staff understands when to be patient, and when to move quickly,” Rath adds. “Our focus on providing artists with the support they need to express the best version of themselves is, first and foremost, our priority.”
Staff at Motown Records were hit with news of layoffs Thursday (Feb. 16) as the label gets reintegrated under the Capitol Music Group (CMG) umbrella, multiple sources tell Billboard. The number of people and departments affected are unknown as of press time.
A spokesperson for Motown Records confirmed the layoffs to Billboard. “As Motown returns to the Capitol family, certain positions that had been created when we became a stand-alone label have since become duplicative,” the person said in a statement. “These employees are leaving the company and our People, Inclusion and Culture department is helping them find new opportunities — either within or outside of UMG.”
Layoffs were feared by staffers since chairwoman/CEO Ethiopia Habtemariam’s sudden announcement of her departure on Nov. 29, at which point the future of Motown — which had been spun out of the Capitol Music Group into a standalone label in March 2021, with Habtemariam promoted to the top title — was unclear. In the weeks that followed, it emerged that Motown would be consolidated once again into CMG, at which point the prospect of layoffs loomed.
Motown had been under the CMG umbrella since 2014 when Universal Music Group (UMG) dissolved the Island Def Jam Music Group and moved Motown to Los Angeles to operate out of the Capitol Tower. Habtemariam, who had been president of Motown since that year, oversaw the shift from New York to L.A. and in 2015 led the signing of Motown’s landmark partnership with Atlanta-based Quality Control, which brought Migos, Lil Baby, Lil Yachty, City Girls and others to the label. That led to a surge in interest, signings and market share for Motown, resulting in the establishment of the label as a standalone frontline in 2021, with Habtemariam given the chairman/CEO title.
However, just 20 months after assuming that role, Habtemariam announced she was leaving UMG entirely to “pursue new endeavors,” departing a label that had been energized in recent years without a clear leader. As a standalone label, Motown maintained its own A&R and marketing departments, though it shared services such as radio promotion with Capitol.
CMG is run by Michelle Jubelirer, who was promoted from COO to chair/CEO in December 2021, succeeding Jeff Vaughn, who lasted just a year in the role. Jubelirer oversees a record group that also encompasses Blue Note, Astralwerks and Capitol Christian Music Group, in addition to Motown. While its market share remains under CMG, in September indie distributor Virgin was consolidated alongside Ingrooves and mTheory into the Virgin Music Group, whose co-CEOs report directly to UMG chairman/CEO Lucian Grainge.
However, Capitol will not have Quality Control in its purview moving forward, as the label was sold to HYBE America in a deal that was announced Feb. 8. That means that while Capitol will oversee Motown, it will not have any future releases from some of Motown’s biggest stars of the past decade.
Motown is the latest music company to undergo layoffs in recent months, as the global economy’s outlook remains uncertain. The tech sector was hit particularly hard in that respect, with Amazon, Google/YouTube, Spotify, Twitter, SoundCloud, BMI and others shedding jobs; many cited the dwindling advertising market, which has stubbornly retracted. In October, Grainge himself addressed the advertising market’s downturn when speaking about UMG’s third quarter financials, noting that ad-supported streaming revenue grew slower than expected, up just 5.2% over the third quarter period of 2021, though it was offset by increases in other sectors such as subscription, licensing, tour merchandising and publishing.
In 2022, Motown had raised its overall market share to 0.97%, up from 0.90% in 2021. In terms of current market share — music released over the most recent 18 months — Motown grew its share from 1.18% in 2021 to 1.33% in 2022. It had remained part of Capitol’s market share during that period, despite its ostensible status as a standalone entity. Capitol’s overall market share declined from 6.81% in 2021 to 6.40% in 2022, while its current share dropped from 5.64% in 2021 to 4.97% in 2022.
Additional reporting by Gail Mitchell.