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Universal Music Group made a pair of announcements on Wednesday that signal the global leader in music is getting more and more serious about China.
Universal Music Greater China and Modern Sky, a leading independent music label in the country, pressed send on a strategic distribution agreement giving the domestic label’s catalog and artists access to UMG’s global distribution network, fostering collaboration and promoting Chinese music and youth culture internationally.
Additionally, UMGC announced a pact with iQIYI, China’s leading online entertainment platform, to distribute new releases from contestants of reality show The Rap of China 2024 worldwide. This agreement includes support for the rap artists and opportunities for the top three finalists of the iQIYI-produced show to visit UMG’s global music labels and studios, with a goal to foster international collaborations with other artists and producers.
Modern Sky, founded in 1997 by Shen Lihui, has been a key player in China’s indie music scene, producing over 500 albums and working with influential bands and artists. The label’s roster includes over 150 acts, featuring Matt Lv, Aflou, DOUDOU and other established and emerging talents across diverse genres. Modern Sky is also known for organizing the Strawberry Music Festival, China’s first large-scale outdoor music festival, and hosting over 30 festivals and 1,000 performances annually. The label has expanded internationally with divisions in New York, Liverpool and Tokyo, with plans to debut the Strawberry Music Festival in Tokyo in 2025.
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As for The Rap of China, a hit since its debut in 2018, UMGC will dedicate a team to support the narrative-driven show’s artists in A&R, management, marketing and merchandise development.
Timothy Xu, chairman and CEO of UMGC, expressed excitement about both collaborations, highlighting their potential to amplify Chinese music on the global stage. He said the Modern Sky agreement “not only broadens the global reach of Chinese music but also highlights the distinct energy and creativity that define China’s young generation today,” and noted the alliance with iQIYI’s The Rap of China 2024 “reaffirms our commitment to nurturing Chinese rap talent but also extends their global reach, bridging cultural gaps and enriching the international music landscape with the dynamic culture of Chinese rap.”
Modern Sky founder Shen Lihui said his label has “always embraced an independent spirit and a forward-looking vision,” adding they hope to “bring a fresh side of Chinese originality to the world, inviting audiences everywhere to experience the unique energy and cultural depth of China’s youth.”
Earlier this year, UMG expanded its partnership with China-based Tencent Music Entertainment, parent of streaming platforms QQ Music, KuGou, Kuwo and WeSing. In 2021, UMGC became the first major music company to establish multiple frontline label operations across China with the launch of Republic Records China, and the re-launch of historical labels Polygram Records China and EMI China alongside Universal Music China.
This story was published as part of Billboard’s music technology newsletter ‘Machine Learnings.’
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Last week, Universal Music Group filed a $500 million lawsuit against TuneCore and its parent company Believe over alleged copyright infringement of UMG’s recordings. The lawsuit presented two core issues: first, that bad actors used TuneCore to upload songs to streaming services that were simply sped up or remixed versions of UMG-copyrighted recordings, often listed under slight misspellings of the real artist, like “Kendrik Laamar” or “Arriana Gramde.” Second, it claimed that “Believe has taken advantage of the content management claiming system” on YouTube “to divert” and “delay… payment of royalties” that belong to record labels.
If you’ve been following the issues in this case over the last few years, this lawsuit feels like a long time coming, and the issues that UMG raises are certainly not just a TuneCore-specific issue — they’re an industry-wide DIY distribution issue. With the vast scale of songs being uploaded through these companies, and staffs that are too small to catch every bad actor, infringing material has, according to just about everybody, flooded onto streaming services.
The distributors know it’s a problem, too. It’s why TuneCore, DistroKid, CD Baby, Symphonic, Downtown and more formed the Music Fights Fraud coalition in 2023 and say they have increasingly invested in preventing fraud and infringement. Unfortunately, Beatdapp, the industry leader in identifying streaming fraud, believes the problem has only worsened since then. UMG is also not convinced that TuneCore is doing enough, saying that the company’s business model incentivizes them to “turn a blind eye” to this damaging activity.
Below, I’ve condensed some of the arguments I’ve heard among industry leaders both for and against DIY distribution continuing just as it is today. I’ll let you judge which outcome is better.
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Argument #1: Why its essential to protect DIY distribution as is
It’s easy to take for granted today that anyone who wants to release a song can do it themselves, but that wasn’t always the case. When physical records reigned supreme, record label contracts often favored the companies involved, and seldom went the artists’ way. At the time, artists were essentially forced to sign to a record label if they wanted a chance at shelf space in stores — especially worldwide. This left artists vulnerable to unequal label deals that locked them in for many albums while the label took the lion’s share of the royalties and the copyrights, often in perpetuity.
When Distrokid, CD Baby, TuneCore and the like emerged in the 2000s, they let anyone sign up for distribution services to digital outlets like the iTunes Store for a flat fee and forever altered the power dynamic. Today, the playing field has leveled significantly: hobbyists can get their music out to the world and artists with professional aspirations can wait as long as they want before they have to give up a single percentage point of their master recordings to a label. These companies helped shift negotiating power to the artists, and for the first time, started the process of allowing music fans to decide what songs would pop, rather than the labels that pulled favors with the gatekeepers who worked in radio, retail and the press.
The shift also presented a new, lucrative business opportunity. Music companies no longer need superstars in their catalogs to make their numbers. In fact, they don’t need catalogs at all. A company can now make money by providing services, like distribution, to the masses of previously-overlooked musical hopefuls instead, relying on volume to make up the numbers.
But that volume allowed for the proliferation of fraud, which is a problem that evolves every day, and bad people will always find loopholes. Already, most distributors have implemented common-sense regulations and checks to curb fraud and invested money into quality control teams. But for many experts, it feels impossible to totally solve the problem. As it’s commonly said, this is an endless game of “wack-a-mole.”
But if the barriers to DIY distribution are too significant — like limiting the number of releases, gating who can use it, hiking the platform fee, adding a streaming threshold, or slowing down release time — it could take power away from indie musicians that they have become accustomed to. Such a move would be a step backward for artistic freedom, and the cost of implementing these regulations could threaten to put some of the smaller distributors out of business. Less choice and competition in DIY distribution isn’t better for users.
It’s impossible to put the DIY distribution genie back in the bottle. Artists, who have become used to the current system, would still find ways to get their music out there quickly and cheaply — whether fraudulent or not. Likely, that music would go out on social media or to social-streaming hybrids like YouTube and SoundCloud, both of which pay out royalties and can still be cheated. Streaming services, like Spotify, Apple and Amazon, would risk losing listenership and music discovery to social media platforms — something they already struggle with in today’s TikTok era — and it might not even solve the problems it targeted.
Argument #2: Why the DIY distribution system is in need of serious reform
Currently, over 120,000 songs are uploaded to streaming services every day, a rate that has rapidly increased for years and will likely continue to do so. This is mostly due to DIY distributors. While it is great that aspiring artists can get their music out there cheaply and easily, this has also led to rampant fraud and copyright infringement that puts excessive burdens on rights holders to police their own catalogs online. What happens when we inevitably get to a point where 1 million songs are uploaded every day? We can’t keep going as we are now, and we are in need of serious reform.
While DIY distributors have announced initiatives like Music Fights Fraud and have hosted panels at industry conferences to explain the new methods they are using to stop bad actors, some people say these companies have an incentive for at least some of it to slip by their watch, given their business models rely on receiving fees in exchange for uploading as many songs as possible. Self-policing is not enough, considering this problem only seems to get worse.
The introduction of generative AI has made this matter even more pressing. While it’s impossible to know how much of the music being uploaded today is AI-generated, and to date the streaming services have no regulations against this, it is certainly contributing to the rising number of songs released to streaming services per day. AI songs are believed to be exploited by bad actors to commit streaming fraud, as we saw in the September lawsuit which alleged a musician named Michael “Mike” Smith stole $10 million in streaming royalties by uploading AI-generated songs using a distributor and then used bots to stream them. Bad actors upload AI songs en masse to spread out artificial streams and make their schemes tougher to detect.
It’s hard to argue that it makes a user’s streaming experience better when a platform has a vast number of AI songs and tracks that not a single person has streamed, and it’s clear that these songs, largely stemming from DIY distributors, are diluting the royalty pool at the expense of what some stakeholders have called “professional artists.” The negligibly low payments earned by hobbyists who have accrued hundreds or just a few thousand streams are sometimes lower than the fees one would incur from transferring the royalties into their bank account.
These distributors, the argument goes, should be penalized for the bad actors they let through. This has been proposed in many forms so far, including a financial penalty instituted by streaming services, requirements for significant “know your customer” checks to slow down uploads and verify users’ identities, a minimum stream count threshold before artists can be eligible for royalty collection, a limit to the number of songs a user can upload at a time, an additional fee for storing massive uploads to streaming services, and more.
It’s not a viable business if you rely on a massive scale of song uploads but can’t afford the proper staffers and tools to police them.
Universal Music Group wants a federal judge to dismiss a copyright lawsuit claiming Mary J. Blige’s 1992 hit “Real Love” used a famed 1973 funk sample without a license, arguing the accusers have popped up “out of the blue” to sue over two tracks that “sound nothing alike.”
The case, filed in earlier this year by Tuff City Records, claims Blige’s track borrowed from “Impeach the President” by the Honey Drippers — a legendary piece of hip-hop source material with a drum track that’s been sampled or interpolated by Run-DMC, Dr. Dre, Doja Cat and many others over the years.
But in a response on Tuesday, UMG argues that Tuff City’s case is deeply flawed and must be tossed out of court at the outset.
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“Now, more than 30 years after ‘Real Love’ was released, plaintiff appears out of the blue alleging that ‘Real Love’ contains an uncleared sample from ‘Impeach the President,’ with no allegations concerning the works’ substantial similarity,” the music giant wrote. “The absence of that allegation is fatal.”
One key claim in Tuff City’s lawsuit is that UMG’s recorded music unit (UMG Recordings, Inc.) has already reached a settlement regarding the use of the “Impeach” sample on the “Real Love” sound recording, but that UMG’s publishing arm is unfairly refusing to do the same for the musical composition.
In Tuesday’s response, UMG confirmed the existence of that earlier settlement over the sound recording, but said it was entirely separate and complete “irrelevant” to a dispute over the composition. UMG’s attorneys said the settlement did not admit that “Real Love” infringed “Impeach” — but that even if it had, Tuff City was “confusing” a basic distinction that lies at the heart of music copyright law.
“Plaintiff … insinuates that defendant infringes simply because non-party UMG settled plaintiff’s claim of infringement [over] the sound recording,” the company wrote. “Because there exist two separate copyrights in music … a work can readily infringe one without infringing the other.”
Blige’s “Real Love” spent 31 weeks on the Hot 100 in 1992 and reached a peak of No. 7 on the chart. It has remained one of the star’s most enduring hits, with more than 105 million spins on Spotify and a movie adaptation released by Lifetime last year.
Tuff City sued UMG over the track in April, claiming it had “advised defendant repeatedly” about the allegedly uncleared sample, but that Universal had done nothing about it: “Defendant has repeatedly refused to engage plaintiff in substantive negotiations to rectify the foregoing, let alone agreed to compensate plaintiff for the past infringement or on an ongoing basis.”
The lawsuit did not name Blige herself as a defendant nor accuse her of any wrongdoing.
Tuff City, which owns a large catalog of old songs, is no stranger to copyright litigation – filing cases over tracks by Jay-Z, Beastie Boys, Christina Aguilera, Frank Ocean with claims that they featured unlicensed samples or interpolations. The company has even already sued over “Impeach the President,” claiming in a 1991 complaint that it had been illegally sampled on the LL Cool J tracks “Around the Way Girl” and “Six Minutes of Pleasure.”
The company has won plenty of rulings and settlements, but the litigation process has not always gone smoothly. In 2014, a judge dismissed one Tuff City case over Jay-Z’s “Run This Town” on the grounds that any alleged sample was “barely perceptible” after multiple listens. In that ruling, the judge chided Tuff City over its approach to the case, saying it “incorrectly … assumes that every copying of any part of another artist’s protected work is infringement.”
In Tuesday’s motion seeking to dismiss the “Real Love” case, UMG directly cited that 2014 ruling – arguing that the two songs “sound nothing alike” and that Tuff City had failed to argue otherwise.
“Unwilling to learn from the lessons of its past, plaintiff again seeks to assert copyright liability without plausibly pleading substantial similarity with respect to the musical compositions at issue here,” the company wrote. “The copyright claim must accordingly be dismissed.”
An attorney for Tuff City did not immediately return a request for comment.
Billionaire hedge funder and Universal Music Group board member Bill Ackman called for UMG to move its stock listing and legal headquarters to the United States from Amsterdam after violent attacks on Israeli soccer fans overnight in the Dutch capital. Amsterdam’s Mayor Femke Halsema said fans of Maccabi Tel Aviv were attacked and “pelted with […]
Welcome to the latest spin ’round the Executive Turntable, Billboard’s comprehensive(ish) compendium of promotions, hirings, exits and firings — and all things in between — across music.
We’ve seen the departure of Spotify’s global head of music and a changing of the guard at Verve, but otherwise it’s been a fairly quiet week. Read on for [mostly] good news and also check out Billboard‘s just-released annual list of Latin music’s most powerful executives, plus our weekly interview series spotlighting a single executive, our helpful calendar of notable events, and have you ever wanted to look at tchotchkes inside the office of an executive while reading their in-depth answers to the most important questions facing the biz? From the Desk Of is probably your jam.
Aric Steinberg has been elevated to executive director of Sweet Relief Musicians Fund, the 30-year-old non-profit that delivers a lifeline to musicians and industry types facing financial hardships due to illness, disabilities or other challenges. Founded by folk singer-songwriter Victoria Williams in 1994 following the release of a star-studded benefit album on her behalf, the charity offers financial assistance to artists, composers, road crew, agents and others in the form of grants to cover essential expenses ranging from medical bills to housing and food. The LA-based Steinberg joined Sweet Relief in 2010 and most recently served as executive vp of development and artist relations, though he has been essentially filling the role since the 2017 passing of former director Rob Max. “It is long overdue that in 2024 we are officially giving Aric the title of executive director … as he has been embodying that position for many years now,” noted fund president Bill Bennett. “I look forward to an extraordinary future with Aric where Sweet Relief will continue to help more and more musicians and music industry workers in need.”
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Sweet Relief has assisted a wide range of artists over the years, most recently Sick of It All frontman Lou Koller and singer-songwriter Jesse Malin — who both have benefit concerts planned for them later this year. “I see a bright future for Sweet Relief as we continue to grow and help more musicians and music industry professionals every year,” said Steinberg. “This 30th anniversary year has been our best ever, and I look forward to serving the community in the years to come.”
Meanwhile…
Alen Torosyan is promoted to general manager of Warner Music Emerging Markets, effective Oct. 1, while Jonathan Jules has joined as vice president of creative. Both will report to Alfonso Perez Soto, president of emerging markets. This division is home to artists including Calin, Diljit Dosanjh and Joeboy, and covers rapidly growing regions such as Africa, Eastern Europe, India, and the Middle East, which have expanded through strategic investments and partnerships. Torosyan, with over a decade at Warner Music, was previously vp of operations for the division. Jules, formerly vp of international marketing and operations at EMPIRE, will now drive strategic leadership to WMEM’s A&R and marketing teams. Perez Soto praised Torosyan’s “unflappable” ability to multitask and carry out detail-oriented projects “without losing his forensic focus on detail,” and lauded Jules’ entrepreneurial drive and “ability to read the shifting sands of culture and music, anticipating tomorrow’s trends.” Perez Soto added: “Together, they’ll help us superserve artists and rapidly grow our business.”
Sony Music Publishing hired Caroline Elleray as vice president of creative, songwriter services, effective immediately. In this role, Elleray will lead efforts to support songwriters, manage catalogs and collaborate with global creative teams to explore new growth opportunities. The London-based Elleray reports to co-managing directors Tim Major and David Ventura. With over two decades of experience in music publishing, including previous stints at UMPG and BMG, she has discovered and developed artists like Coldplay, Keane, Feist, Rex Orange County and Mumford & Sons. Alongside her new role at SMP, Elleray will continue managing Second Songs, a publishing and management venture she co-founded in 2022 with Mark Gale. Second Songs, in partnership with SMP UK, represents talents like Victoria Canal and songwriters Matt Hales and Dan Green. “Her track record, the songwriters and artists she has worked with speak for themselves, showcasing her immense and relentless dedication for music creators,” said Ventura, who is also SMP UK’s president and svp of international.
Nashville-based record label New West Records promoted Tommy Robinson to general manager and vp of sales, while Brady Block was boosted to senior vp of media and reissues producer. Katie Keller has been upped to vp of project management, while Meg Barron rises to director of A&R and publishing. Brooke Nixon joins as vp of digital marketing, following a role as director of streaming at Big Machine Label Group imprint The Valory Music Co. New West’s current roster includes Aaron Lee Tasjan, 49 Winchester, Ben Folds, American Aquarium and more. –Jessica Nicholson
Universal Music Finland appointed veteran executive Petri Mannonen to CEO, effective immediately. Mannonen joined UMG in 2010 as a commercial director and in 2017 expanded his responsibilities to include overseeing operations in the Baltics (Estonia, Latvia, and Lithuania). Prior to Universal, he was CEO of Viasat Finland (now Viaplay), a pay television company. The UMF roster includes KUUMAA, Mirella and Robin Packale, among others. “The Finnish music market is in a really interesting situation at the moment,” said Mannonen. “Music is now easier to release than ever, and as the selection grows, the role of major record labels is also emphasized. Our job is to focus on building long-term artist careers while taking care of artists. We want to offer our current and future artists a creative and professional place to grow and develop while making sure that their music reaches the right audiences.”
FUGA, the Downtown-owned B2B music distributor, promoted Renato Vanzella to general manager of LATAM, expanding his previous role as GM of Brazil to oversee operations in Argentina, Brazil, Colombia and Mexico. Vanzella will focus on business development, client relations, and partnerships with DSPs, reporting to Sarah Landy, the senior vp for the Americas. Since joining FUGA in 2019, Vanzella has significantly grown the team and secured key clients, including Elemess, MJC Music, Beeside Records, and Radar Records. Landy praised Renato Vanzella’s promotion, highlighting his “exceptional strategic vision and leadership” over the years. “Renato consistently has demonstrated a deep understanding of the local music landscape, and his passion for collaboration and client service has earned him the respect of our team and our partners,” she said.
Armada Music appointed Susanne Hazendonk as head of catalog, bringing over 15 years of industry experience from Spinnin’ Records and Warner Music Benelux. Having worked with top dance artists such as Lucas & Steve, Sam Feldt and Afrojack, as well as hitmakers like Bruno Mars and The Red Hot Chili Peppers, Hazendonk is well-versed in both dance music and big ol’ hits. She’ll report directly to COO Jop Bonnike, leading marketing and storytelling efforts and overseeing the expansion of Armada’s catalog department and acquisitions through the BEAT Music Fund. Bonnike praise Hazendonk’s “unwavering passion and infectious enthusiasm for dance music, adding, “As we continue to prioritize the growth and evolution of our catalog department, we’re looking forward to working alongside Susanne to seize new opportunities in the market.”
Big Loud Rock added Zach Siegal-Eisman as vice president of digital and viral marketing, overseeing the imprint’s digital marketing strategy and execution, as well as artist growth and digital presence of both upcoming and catalog record releases. Earlier this year, Siegal-Eisman launched the marketing consultancy Amplify Legacy and previously worked at social media agency Crowd Surf and at Artist Network Management. –J.N.
BOARD SHORTS: The Music Managers Forum appointed Niamh Byrne as chair and Jill Hollywood as vice chair, succeeding Paul Craig and Kwame Kwaten, respectively, who recently stepped down after serving two three-year terms. Byrne, co-founder of Eleven Management, has made a mark with artists including Damon Albarn, Blur and Gorillaz. She brings a wealth of experience, having held roles at Universal Music UK and her consultancy firm The Engine Room. Hollywood, founder of Echo Beach Management, has managed both legendary producers and emerging talents, including current roster Jacknife Lee, Ash Howes and Ash Workman. Hollywood previously spent over a decade at Big Life Management. MMF also said that Theory Management’s Hide Whone is joining the board, replacing Clare Wright … Newport Folk launched the Newport Folk Stewardship Program, designed to recognize individuals who have significantly contributed to Newport’s legacy and challenge the “Folk Family” to innovate for the future. The first appointee is St. Louis-born Americana artist Nathaniel Rateliff, who’ll focus on artist advocacy, mentorship and fellowship, both within the Newport Folk community and beyond. He’ll serve a three-year term, with two years as an active steward and one as an advisor to his successor.
Nettwerk welcomed Ruth Wyatt as director of sync for UK and Europe, bringing her experience from Warner Music UK, where she successfully placed artists in various sync opportunities. Her notable achievements include Sam Ryder’s “Christmas To Me.” Wyatt said she’s looking forward to helping Network build out its sync opportunities across the UK and Europe, adding, “It’s never been a more exciting time to be in the sync space, with more productions being made than ever before and we’re witnessing breakout productions from the Nordics, Spain, Germany, France Australia, all of which are attracting overwhelmingly international audiences, subsequently creating global impact for our artists.” Nettwerk co-founder Mark Jowett, said Wyatt’s “expertise in achieving syncs is matched only by her passion for supporting great music and artists.”
Alphabeats, a startup using music and neurofeedback tech to help athletes improve mental acuity, announced that chief commercial officer and U.S. president Jorrit DeVries will assume the role of global CEO. Current chief Han Dirkx, one of alphabeats’ three co-founders along with DeVries, will move into the role of chief operating officer and lead the company’s product, research and development, and technology teams based in The Netherlands. As U.S. president, DeVries has overseen sales, marketing, product development and fundraising. Prior to joining alphabeats, he was global head of category development at Spotify, and he has also held senior roles at Samsung, Vodafone and Warner Music, leading teams in the U.S. and Europe.
ICYMI:
Jeremy Erlich
Verve Label Group promoted Jamie Krents to CEO and president, and Dawn Olejar to chief operating officer … Harvey Mason Jr. isn’t going anywhere … Republic appointed Mary Catherine Kinney as executive vp of artist & label strategy … Alicia Arauzo and Luis Fernández are the new co-managing directors of Universal Music Spain … Jeremy Erlich will be leaving his position as Spotify’s global head of music … and Narcís Rebollo has been appointed CEO and president of UMG’s spun-out Global Talent Services. [MORE]
Last Week’s Turntable: An Old Friend Returns to Budd
Alicia Arauzo and Luis Fernández have been appointed co-managing directors of Universal Music Spain, the label announced on Tuesday (Oct. 1).
According to a press release, Arauzo and Fernández will “work closely” in shaping and implementing the company’s business strategy and creative direction, “focusing on the nurturing of the division’s solid artist roster,” as well as the development of new talent. Both executives will be based in Madrid, reporting directly to Jesús López, chairman/CEO of Universal Music Latin America & Iberian Peninsula.
“It is an honor for me to take on this new role, alongside such a great team of professionals,” Arauzo said in a statement. “Luis and I have many challenges ahead of us and I am sure that as a team we will work tirelessly to achieve new milestones for Universal Music Spain, especially in artistic development, which is the DNA of UMG globally. I would like to thank Jesús López for his trust, leadership, and constant encouragement to pursue new goals.”
Arauzo began her career in 1982 working at Spanish record label Hispavox and joined Universal Music Spain in 1996, where she started as manager of international marketing. Her most recent role was general manager. Meanwhile, Fernández joined Universal Music Spain in 2023 as head of A&R. Prior to joining UMG, he was CEO & founder of Sonido Muchacho, the independent record and music publishing company he launched in 2014.
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“It is a great opportunity to assume this new position at UMS, where I have grown professionally, and where I have felt so supported since my arrival,” added Fernández. “It is a wonderful challenge to take on this responsibility alongside people I have known since I started in the industry, as we all grow towards a promising future. I would like to thank Jesús, Narcís, and, above all, Alicia, for the trust they have placed in me, as well as the entire A&R team, with whom I have shared the last year of learning and professional growth.”
About the new appointments, López expressed: “Alicia possesses extensive experience, knowledge, immense work capacity and an unquestionable love for Universal Music, among many other qualities, while Luis brings innovation, entrepreneurship, and a deep artistic knowledge. Together, they are the perfect team to lead the continued development of our artists and take Universal Music Spain to the next level of success, that the music market demands of us. I wish them both huge success in this new stage of their careers, and I am certain that the entire team will join me in these wishes.”
Narcís Rebollo has been appointed CEO and president of Global Talent Services, Universal Music Group’s full-service company for Latin artists spanning management, booking, live events, promotion and brand partnerships.
In line with Rebollo’s appointment, which was announced by Universal Music on Tuesday (Oct. 1) and is effective immediately, Global Talent Services (GTS) becomes a standalone company, with its management and operation now handled independently from UMG’s local music labels.
In the newly created role of GTS CEO and president, Rebollo — who is based in Madrid — will oversee the company’s operations in the U.S., Latin America, Spain and Portugal, reporting to Jesús López, chairman and CEO of Universal Music Latin America and Iberian Peninsula. Further details of leadership appointments within Universal Music Iberian Peninsula will follow shortly, said UMG in a statement announcing the structural changes.
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Launched in 2007, Global Talent Services provides a full suite of artist services for Latin artists and operates offices in eight countries, including the U.S., Spain, Portugal, Brazil, Mexico and Columbia.
Artists signed to GTS’ management roster in Spain include Antonio José, Salma, Natalia Lacunza and Mala Rodriguez with the company’s live events team booking over 500 shows in the country last year, according to Universal Music.
Other markets where UMG says Global Talent Services is experiencing solid growth include Mexico, where it booked 175 shows for 25 artists in 2023; and Brazil, where the company has had strong success as a booking agency and managing partner for artists projects by Maneva, Leo Santana, Atitude 67, Felipe Araújo and Paula Fernandes.
One of GTS’s biggest campaigns to date has been establishing Colombian band Morat as one of the leading Spanish-speaking pop-rock acts in the world with its “Si Ayer Fuera Hoy” 2023-2024 global tour — which included a sold-out show at New York City’s Madison Square Garden Theater in January — selling more than one million tickets across 125 concerts and over 15 countries, according to the company. GTS also operates the multi-date Universal Music Festival, which takes place every year in the Spanish capital city of Madrid.
Prior to today’s appointment, Rebollo served as president of Universal Music Iberian Peninsula since 2015, where he was responsible for UMG’s recorded music and GTS operations in Spain and Portugal. Under his leadership, the company grew its operations to include concert booking and promotion, festivals, touring and live events with GTS clients including Latin artists David Bisbal, David Bustamante, Pablo López, Lola Indigo, Aitana and Camila Fernández.
Before joining Universal, Rebollo held senior roles at Spanish independent music company Divucsa, BMG, electronic dance music label Max Music and Spain’s biggest independent label, Vale Music, which Universal acquired in 2006.
“Narcís is one of the most experienced executives in Latin music,” said Jesús López in a statement. “His vision of the evolution of the business and the expansion of Latin music around the world in recent years, has led him to create a very successful team in Spain and Portugal in the areas of management, booking, promotion and brands.”
López went on to say that GTS was born “with the purpose of being a full-service agency for artists, and the time has come for it to become an independent business unit within UMG.” Rebollo, added López, is the “perfect leader” to lead the growth of GTS globally.
“Today more than ever, our artists need strategic support from a company that is both fully focused on management, but with the ability to deliver global services and support,” said Rebollo in a statement. “With the explosion of interest and influence of live music, and music driving social engagement and conversation more than ever, I strongly believe that GTS is perfectly positioned to provide the best support for Latin artists around the world.”
Universal Music Group opened up about how the company plans to keep growing in amid an evolving streaming landscape on Tuesday at the company’s capital markets day. Held in the storied Abbey Road studios in London, UMG’s c-suite and various executives from Republic, Interscope, Virgin Music Group and more described how they build a world around superstars like Taylor Swift, The Weeknd and Olivia Rodrigo, and how they’ve launched new acts like the Afrobeats star Rema.
The crowd of mostly financial industry analysts and investors also got an overview of the collectibles UMG hopes superfans will open their wallets for, its talks with Spotify about higher-priced premium subscription plans, and it’s new strategy to keep streaming revenues growing by an 8-10% compound average growth rate until fiscal year 2028.
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Streaming 2.0
Despite industry reports that new streaming subscribers are hard to find in developed markets and that streaming growth rates in smaller music markets like Brazil, Italy and Germany are besting major markets like the U.S., UMG Chairman and Chief Executive Officer Lucian Grainge gave an overview of UMG’s new strategy — dubbed Streaming 2.0 — to get more revenue out of streaming.
“The addressable market — in both established markets and fast-growing high potential music markets — is massive,” Grainge said, referring to streaming subscriptions. “We expect more than a billion subscribers by the end of the decade, and we constantly ask ourselves, ‘How long could it take us to get to 2 billion?’”
“While streaming has delivered robust growth to UMG for over a decade, Streaming 2.0 will deliver a new age of innovation, consumer segmentation, geographic expansion and greater value through both subscriber and [average revenue per user] growth,” Grainge said.
The strategy relies in part on increasing the number of streaming subscriptions in developing markets where UMG says subscribers meaningfully contribute to monthly trade average revenue per user. Less than half of people in established markets have streaming subscriptions, with less than 25% of the population in Japan holding subscriptions, UMG chief financial officer Boyd Muir said.
UMG said it also expects a new wave of subscribers in these markets to come from a second cohort of older listeners starting up subscriptions and younger, digitally native music fans getting older and spending more on their streaming subscriptions. They also expect to target audiobook listeners and satellite radio subscribers for music streaming subscriptions.
Super premium streaming subscriptions
UMG’s Streaming 2.0 strategy also relies on innovation in streaming, possibly like the development of high definition streaming plans like the one Spotify‘sDanielEk hinted in June is on the horizon. Ek said that “delux” subscription could cost around $17-$18 per month for a single account.
UMG is in advanced talks to partner with Spotify on the development of that higher-priced subscription plan, Muir said Tuesday. During his presentation, UMG chief digital officer Michael Nash compared it to “another exciting” example of higher priced subscription plans — Tencent Music Entertainment’s super VIP tier, which costs five times as much as the standard tier.
Muir said “a double digit percentage” of TME’s subscriber base signed up for the super VIP plan. UMG’s own research tells it that 23% of current streaming subscribers would pay more for a “better music experience.”
Monetizing superfans
UMG execs spoke admiringly of the good old days when superfans lined up outside stores to spend gobs of money on Michael Jackson and Shania Twain CDs. The reason why? Devotees of artists in prior decades spent more per capita on music, merchandise, concert tickets and collectibles than streaming-era fans.
“Superfans, the most avid 20-30% of all music listeners, once drove over 70% of recorded music spending,” Muir said. “Streaming monetizes them, but not nearly as well in the past. This is an enormous opportunity. We are seeing dramatic growth in revenues that are complimentary to spending.”
He was referring to premium music — vinyl, collectible CDs and cassettes — and merchandise collectibles. UMG has seen its revenues from products sold directly to consumers through some 1,300 odd online stores grow at a 33% compound annual growth rate in recent years.
When something like a $55-Olivia Rodrigo Stanley Cup gets sold, UMG collects as much information as it can, and the purchaser becomes one of the 100 million fans in what Muir referred to as “our owned audience.”
Republic Records has named Miles Beard and David Wolter as co-heads of A&R, the company announced today (July 15). Beard, based on the West Coast, and Wolter, based on the East Coast, will report to label president and chief creative officer Wendy Goldstein.
The duo, who both joined Republic in 2022, had previously served as executive vice presidents of A&R for the label. Their new roles will see them jointly lead the A&R development and strategy for the company, as well as oversee partnerships, alongside executive vp Danielle Price, who oversees the R&B/hip-hop A&R team.
“When it comes to A&R, Miles and David are two of the industry’s most savvy and visionary executives,” Goldstein said in a statement. “They could not be more different in terms of preferences, approach and even location of the two coasts, however they’re the perfect match to run this department. They share a rare passion for music and they’re intensely committed to championing their artists. Their partnership is genuinely next-level and will be integral to our success going forward. Our focus is creating a dominant A&R team with them along with our hip-hop/R&B initiatives.”
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Beard has worked with the Jonas Brothers, with Republic’s K-pop partners on Stray Kids and TXT, and on Republic’s recent deal with Nigerian label Mavin for the singer Ayra Starr, among other projects. Wolter, meanwhile, has worked with artists like Conan Gray, Greta Van Fleet, Miranda Lambert and Zoe Kravitz for the label. Republic Records — also home to superstars like Taylor Swift, Ariana Grande, The Weeknd and more — is part of Republic Recording Company, alongside Island Records, Def Jam Recordings, Mercury Records, Casablanca Records, indie distributor Imperial and the Corps team, under Monte Lipman and Avery Lipman.
“It’s incredible to work with Wendy, Monte and Avery Lipman, and my new partner Miles,” Wolter said in a statement. “We have so much support. Wendy’s instincts are unrivaled. Monte and Avery don’t stop, and it’s inspiring. When it comes to our artists, I just want to be a vigilant fighter for their artistry. My main hope is for our team to have a massive impact on culture and challenge the status quo.”
Wolter spent a decade at Virgin Records from 1997 through 2007, signing The Gorillaz, before spending another 10 years at RCA Records, before returning to Virgin under the Capitol Music Group umbrella in 2017, and then shifting to Republic in 2022. Beard, a longtime DJ, spent 10 years at Mike Caren’s APG, signing Charlie Puth, before moving to Republic.
“Wendy, Monte and Avery make you feel like anything is possible,” Beard said in a statement. “The way they balance being good people and being extremely competitive is one-of-a-kind. David and I are opposites. He’s a purist, I just love what people love. He has no filter, I’m measured. He’s tall, I’m short. We complement each other in every way. As an A&R, I want to make our artists feel comfortable and motivated to think as big as possible.”
LONDON — Universal Music Group is to merge its historic Island and EMI label divisions as part of a widespread restructuring of the company’s U.K. business that will also see the launch of new Audience and Media Division to support artists and labels.
The announcement was made on Tuesday (July 9) by David Joseph, chairman and CEO Universal Music U.K. and Ireland, in an internal memo, which has been viewed by Billboard.
The reorganization of Universal Music’s U.K. operations follows changes the company made to its U.S. teams earlier this year with the formation of Interscope Capitol Labels Group and Republic Corps.
That structure is now being loosely mirrored in the United Kingdom with the creation of what Joseph called “two new powerhouse frontline label groups” — Island EMI Label Group, headed by Louis Bloom as president, and the newly formed Polydor Label Group, led by Ben Mortimer.
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Both label groups will be home to multiple labels “all with creative autonomy,” said Joseph’s memo. Each department will also contain a team dedicated to supporting artists from the wider UMG family, said the Universal U.K. boss.
In line with the restructuring, which comes into effect Oct. 1, Universal is shuffling its executive ranks.
EMI Records co-president Jo Charrington has been appointed president of a “reimagined” U.K. arm of Capitol, which will sit within the wider Polydor Label Group, as will 0207 Def Jam, led by president Alec Boateng. (Billboard understands that Boateng’s brother and co-president of 0207 Def Jam Alex Boateng is to remain with Universal and will be given a job within an international division).
EMI Records’ other co-president, Rebecca Allen, will take up the role of president of Universal’s Audience and Media Division (AMD), a newly formed U.K.-based department dedicated to serving artists and labels that will have a global remit.
Joining Allen in the Audience and Media team will be Suzy Walby (media), Kate Wyn Jones (Audience and Digital Strategy) and data and strategic branch The Square insight team, led by Jack Fryer.
In his internal staff memo, Joseph said the “industry first” AMD team “will revolutionise how we deliver for our artists” and will become Universal U.K.’s largest division.
Not mentioned in the memo is the scale or number of job losses that will result from the changes, although it does state that the consultation period for staff whose roles are potentially at risk starts today and will continue until mid-September.
In the United Kingdom, it is a legal requirement that companies must follow so-called “collective consultation” rules if it is making 20 or more employees redundant within any 90-day period. Universal U.K. declined to comment on staff redundancies.
Not impacted by the changes are Laura Monks and Tom Lewis, who will continue in their current roles of Decca co-presidents, which will remain a stand-alone label. Hannah Neaves remains sole president of Universal Music Recordings.
“As a company, we must continue to be forward-looking, innovative, and bold. Developing artists now requires more creativity and patience than ever before,” said Joseph in his internal memo.
Joseph went on to say that the restructure would “strengthen our labels’ capabilities to deepen artist and fan connections.”
“We are committed to being the number one place for artists, fans and talent,” surmised the U.K. CEO. “I have an incredible appreciation for our team given what we have achieved in the past and what I know we will achieve in the future.”