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Universal Music Group has announced a new partnership with SoundLabs, a “responsible” AI music tools company, to provide AI music editing tools to UMG talent. This includes a real-time personalized AI voice clone plug-in, called “MicDrop,” due to launch later this summer.
The SoundLabs AI-powered music editing tools (AU, VST3, AAX) hook up to all major digital audio workstations (DAW), including Logic, ProTools, Ableton and more, to let musicians clean up their vocals, make changes, and even shape-shift their voices in the click of a button, thanks to AI technology. With MicDrop, UMG artists can create their own AI voice models, but these custom models will exclusive to their creative use, not available to the general public.
The news falls perfectly in line with the company’s “responsible” AI strategy, laid out by UMG CEO and chairman, Lucian Grainge, at the beginning of 2024. As he stated in a January memo to staff, obtained by Billboard, Grainge wrote that even though some experts viewed AI as “a looming threat,” UMG’s view was that AI would be “presenting opportunities” for the company. “Just as we did with streaming, we went out to turn those opportunities into reality.”
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He went on to explain his two-prong approach to embracing what he called UMG’s “responsible AI initiative.” First, he would lobby for “guardrails,” or public policies to protect artists’ name, image, voice, and likeness from wrongful impersonation and other “basic rules.”
Second, Grainge set out “to forge groundbreaking private-sector partnerships with AI technology companies,” which now includes its deal with SoundLabs. “In the past, new and often disruptive technology was simply released into the world, leaving the music community to develop the model by which artists would be fairly compensated and their rights protected,” Grainge continued. “In a sharp break with that past, we formed a historic relationship with our longtime partner, YouTube, that gives artists a seat at the table before any product goes to market, including helping to shape AI products’ development and a path to monetization.”
SoundLabs was co-founded by Grammy-nominated producer, composer, software developer and electronic artist BT. After a 25-year career, working with David Bowie, Madonna, Sting, Death Cab for Cutie, Peter Gabriel and Seal, he turned to software development to create new music tools to help producers innovate. Over the years, his software products — including patented audio plugins like Stutter Edit, BreakTweaker (iZotope), Polaris, Phobos (Spirfire Audio) — have generated $70 million in gross sales.
The company’s other co-founders — Joshua Dickinson, Dr. Michael Hetrick and Lacy Transeau — are all aligned with BT on an “artist-first” approach to making AI music tools. As a press release from UMG about the partnership states: “SoundLabs was founded with a foundational respect for intellectual property rights and is focused on helping artists retain creative control over their data and models.”
“It’s a tremendous honor to be working with the forward-thinking and creatively aligned Universal Music Group. We believe the future of music creation is decidedly human. Artificial intelligence, when used ethically and trained consensually, has the promethean ability to unlock unimaginable new creative insights, diminish friction in the creative process and democratize creativity for artists, fans, and creators of all stripes. We are designing tools not to replace human artists, but to amplify human creativity,” says BT.
Chris Horton, svp of strategic technology at Universal Music adds: “UMG strives to keep artists at the center of our AI strategy, so that technology is used in service of artistry, rather than the other way around. We are thrilled to be working with SoundLabs and BT, who has a deep and personal understanding of both the technical and ethical issues related to AI. Through direct experience as a singer and in partnership with many vocal collaborators, BT understands how performers view and value their voices, and SoundLabs will allow UMG artists to push creative boundaries using voice-to-voice AI to sing in languages they don’t speak, perform duets with their younger selves, restore imperfect vocal recordings, and more.”
It’s time for another spin around the Executive Turntable, Billboard’s comprehensive(ish) compendium of promotions, hirings, exits and firings — and all things in between — across music. Don’t forget to dig into this year’s Indie Power Players list. We also have a weekly interview series spotlighting a single executive and a regularly updated gallery honoring many of the industry figures we’ve lost throughout the year.
Sphere Entertainment has turned to Hollywood studio veteran Carolyn Blackwood as its new head of Sphere Studios, which develops and produces the “multi-sensory entertainment experiences” for concerts, corporate events and more at the next-generation spherical wonder. At Sphere, Blackwood will lead a team of creative, production and other various wizards responsible for those immersive experiences, plus work closely with MSG Ventures on developing the production technologies needed to create them. Blackwood has more than 25 years of studio experience, and was most recently chief operating officer at Warner Bros. Pictures. Prior to WB, she spent 20-plus years at New Line Cinema, where she rose to president and chief content officer. Between those two studios, she was integrally involved with some of the biggest films of the last quarter-century, including The Lord of the Rings, The Hobbit, Barbie and The Conjuring franchise.
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“Throughout my career, I have focused on creative and business innovation in the entertainment industry, as well as the pursuit of production excellence, and this is a tremendous opportunity to be part of the cutting-edge work at Sphere,” said Blackwood. Sphere’s newly elevated president and COO Jennifer Koester added that she believe’s Blackwood’s “expertise bringing high-profile entertainment projects to life will be an asset as we continue to build on, and grow, the Studios’ capabilities.”
The creative team at Sphere also includes chief creative officer Ned McNeilage, who joined earlier this year. Since opening last year with a successful run of U2 shows, the Las Vegas megavenue has been in a jam-y mood with a four concert mini-residency by Phish and an in-progress 24-date residency by Dead & Company. An eight-date run by Eagles is scheduled for the fall.
Meanwhile…
Universal Music India and South Asia promoted Viral Jani to chief revenue officer. Jani joined UMGISA in 2023 as head of digital, strategy & transformation, having previously held senior positions at Times Network, GroupM and Twitter, among others. The promotion follows the May elevation of Sanujeet Bhujabal from evp of content to managing director of the Mumbai-based label division. “[The promotions of Bhujabal and Jani] reflects the company’s commitment to growth and development of one of Universal Music Group’s most important emerging markets,” noted Adam Granite, CEO, Universal Music Group AMEA. “Together they will work closely, alongside Chairman & CEO Devraj Sanyal and myself, to deliver our mission of creating the best music-based entertainment company in the region.”
Warner Chappell Music promoted A&R exec Jessi Vaughn Stevenson to vp, A&R and digital. Stevenson will continue reporting to Ben Vaughn, president/CEO WCM Nashville, as she strategizes opportunities for songwriters. During her career, Stevenson has worked with songwriters including Jessi Alexander, Rhett Akins, Parker McCollum, Hailey Whitters, Morgan Wallen and Randy Montana. “Jessi has always shown commitment to songwriters, helping them with their craft and careers,” said Vaughn. “She is always thinking of new ways to support songwriters and is a wonderful team player. We’re happy to announce her promotion.” –Jessica Nicholson
APM Music elevated creative executive Adam Weitz from senior director to vp of TV and film sync. Weitz has spent the bulk of his 16-year sync licensing career — roughly 11-and-a-half years — at APM, a production music joint venture between Universal Music Publishing Group and Sony Music Publishing. During that time he and his TV/Film team has banked large-scale licensing deals with Hollywood studios, streaming platforms and others, and locked in placements with hundreds of films and shows, including recent wins in Oppenheimer, Succession, Spider-Man: Across the Spider-Verse, Ted Lasso and more. He also spearheads APM’s sample clearance business, which has collaborated with Drake, Beck, The Black Keys and others. Weitz reports to chief revenue officer Chad Elbert and president Adam Taylor, who remarked, “His deep industry connections and unique blend of creative and licensing expertise have established him as one of the very best in the industry.” Prior to joining APM in 2013, the Los Angeles-based exec spent nearly five years in leadership at sync licensing house Visions from the Roof. Under the pseudonym Phofo, Weitz composed music for several animated shows including Sushi Pack, Care Bears and Club Penguin, and he co-produced the first studio LP by MC Paul Barman. Reach him at aweitz@apmmusic.com.
BOARD SHORTS: Furnace Record Pressing founder and former CEO Eric Astor was elected to the Vinyl Record Manufacturing Association‘s board of directors. VRMA works to advance the record manufacturing sector — in which Astor has been deeply invested since FRP’s 1996 founding. He recently transitioned to an advisor role at the Metallica-backed Virginia plant, with Ali Miller taking over as CEO in March … OpenAI (ChatGPT) appointed Paul M. Nakasone, the former head of the National Security Agency (NSA), to its board of directors.
BMG appointed Alexandra Behrens as senior vp of global people excellence, a most excellent way of saying she’ll oversee HR services and operations across the company. Behrens is sliding over from Bertelsmann sister company Gruner + Jahr (G+J), where she led the people management & services team during a 15-year run at the print publishing giant. “Alexandra’s leadership will be instrumental in driving our global HR initiatives and fostering a culture of excellence across all of our locations,” said BMG CHRO Nikola Holle-Spiegel, to whom she’ll report. BMG recently announced a fine-tuning of its frontline recordings business under Jon Loba.
Digital Media Association (DiMA) promoted Sally Rose Larson to senior vp of government and external affairs. Prior to joining DiMA in 2019 as the audio streaming trade group’s vp of government relations, the Georgia native served as legislative director and later deputy chief of staff to Rep. Doug Collins (R-GA), and was chief copyright advisor to House Judiciary Committee GOPers.
Reed Smith welcomed Jackson Abbeduto as counsel in its global entertainment and media industry group. Based in the lauded law firm‘s Century City, Calif. office, Abbeduto arrives following a year as counsel at Granderson Des Rochers. Prior to that, he spent nearly a decade at Universal Music Publishing Group and three years at YouTube as an executive. “Music is very important to our overall practice strategy, and considering our partner Gregor Pryor is the leading digital music lawyer in Europe, Jackson will have all the resources necessary to help us be on the forefront of advising clients in the US on all cutting-edge digital issues,” said Stephen Sessa, the co-chair of Reed Smith’s global entertainment and media industry group.
RADIO, RADIO: Cumulus Media promoted Kriston Aitken to chief human resources officer, taking over for a retiring Todd McCarty, who held the role for nine years. The HR veteran joined Cumulus in 2016 and was elevated to vp of Human Resources two years ago … Jose George and Olivia Morley joined advertising consulting firm Madison and Wall as senior analysts, according to Radio Ink … Samantha Melbourneweaver is joining NPR as managing editor/digital audience growth & engagement. She was previously the assistant managing editor of audience at the Los Angeles Times.
CAA promoted 15 employees, including Shayna Ehrlich to music marketing executive in the agency’s music touring department. She joined the firm in March 2019 as a music and comedy tour marketing assistant and later shed the laughs part of her workload. Prior to joining CAA, the NYC-based Ehrlich was in media strategy at iHeartMedia. THR has more details on the moves.
Hollywood-based publicist and former TV programmer Kiki Ayers launched My Best Kid Life, a new “daily guide on how parents and kids can live their best life” that will focus on wellness, nutrition, co-parenting and more, plus feature exclusive interviews with celebs discussing parenthood. Unique to MBKL is that all images used for the company are in the style of comic book, cartoon or anime. Pryor to this new venture, Ayers ran her PR firm Ayers Publicity and worked as an entertainment reporter. Earlier in her career, Ayers was a music programming manager at REVOLT and was in production at both MTV2 and The Jerry Springer Show.
ICYMI:
Richard Burgess
A2IM president and CEO Richard James Burgess telegraphed his exit from the indie label trade group … UTA hired ex-Ingrooves chief Bob Roback as COO … Downtown named Molly Neuman as president of its CD Baby arm … Jennifer Koester was promoted to president and COO of Sphere Entertainment … UnitedMasters hired Def Jam vet LaTrice Burnette as evp and head of music … and COLTURE‘s Ty Baisden was named executive of the year in Billboard‘s Indie Power Players list.
Last Week’s Turntable: TikTok Lawyers Up
Universal Music Group (UMG) shareholders approved CEO Lucian Grainge‘s 138.8 million euros ($128 million) compensation package from 2023 in a nonbinding advisory vote at the company’s annual general meeting in The Netherlands on Thursday (May 16).
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A majority of investors voted to approve all proposals up for a vote this year, including the reappointment of billionaire Bill Ackman, Cyrille Bollore and others as non-executive directors despite criticism from shareholder advisory groups Glass Lewis, who last month called UMG’s pay practices excessive and said the board lacked independence.
Advisory shareholder votes like these are only advisory and not enforceable, but they are closely watched as indicators of investors’ feelings on a company’s pay policies and the people who make up their boards. Anytime a significant percentage of investors expresses disapproval, which Glass Lewis defines as 20% or more, directors consult with shareholders about how to make internal changes to address their concerns.
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Investors in Live Nation and Cumulus Media used recent shareholder meetings to vote their disapproval of those companies’ CEO pay packages.
UMG did not immediately disclose the percentage of votes cast in support of the proposals at this year’s annual meeting, which was livestreamed only to registered shareholders. Last year, a slim majority of UMG investors representing roughly 59% of shares voted in approval of UMG’s remuneration policy, which details the 2023 compensation packages paid out to Grainge and deputy CEO Vincent Vallejo.
About 58% of UMG’s voting shares are collectively held by Ackman’s Pershing Square Capital Management, Tencent, Bollore and Vivendi. Last year, all four shareholders voted to approve UMG’s remuneration policy.
Grainge’s total 2023 compensation is 138,814,000 euros, or $128,264,000 based on a monthly average foreign exchange rate of 0.924. In 2022, he was the third highest-paid music executive, having made total compensation of 47.3 million euros ($49.7 million) thanks to a 28.8 million euros ($30.3 million) performance bonus in addition to a base salary of 15.4 million euros ($16.2 million).
In 2023, Grainge had a base salary of 7.5 million euros (just over $8 million) and bonus of 15.16 million euros (nearly $16.3 million), and a one-time transition equity award worth 92,406,852 euros (roughly $100 million). That award was paid out in half in restricted stock units and half in performance stock options. The performance stock options vest over the coming five years and can only be excised once UMG’s stock hits certain thresholds.
Glenn Peoples contributed reporting.
Influential shareholder advisory groups Institutional Shareholder Services and Glass Lewis advised Universal Music Group (UMG) investors to vote their disapproval of a UMG compensation report that details CEO Lucian Grainge‘s 2023 pay package, which included a one-time $100 million stock and options award, when it’s put to an advisory vote at UMG’s annual meeting on May 16.
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It’s the second year in a row that ISS and Glass Lewis have criticized Grainge’s compensation package –with ISS calling it “excessive” and Glass Lewis saying it has “severe reservations” about UMG’s remuneration report – and it could stir opposition among investors, many of whom expressed reservations about payouts at last year’s annual meeting.
UMG did not respond to a request for comment.
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While investor advisory votes are non-binding and Grainge and other UMG executives are expected to keep their compensation regardless of the outcome, they are considered a measure of investor sentiment, which has hardened in recent years.
Last year, a slim majority of UMG investors – roughly 59% of shares – voted in favor of the executive pay packages for Grainge, who has been CEO of UMG since 2010, and his deputy CEO Vincent Vallejo, at the company’s annual meeting.
Other media and entertainment companies have fared worse. Investors in Cumulus Media overwhelmingly rejected CEO Mary Berner‘s $4.5 million 2023 compensation earlier this month. Last June, 53% of Live Nation shares were voted against CEO Michael Rapino‘s nearly $139 million 2022 compensation package.
Rapino and Live Nation’s president/CFO Joe Berchtold, who earned $52.4 million in 2022, were the best paid music executives of that year, and the board of the world’s largest concert promotion and ticketing company said that pay reflected “strong leadership decisions” made during the pandemic that contributed to a record-breaking $16.7 billion in Live Nation revenue in 2022.
Grainge, 64, was the third highest paid music executive of 2022, having made a total compensation of 47.3 million euros ($49.7 million) thanks to a 28.8 million euros ($30.3 million) performance bonus in addition to a base salary of 15.4 million euros ($16.2 million).
For 2023, Grainge’s base salary and cash bonus were reduced by half to 7.5 million euros (just over $8 million) and 15.16 million euros (nearly $16.3 million), respectively. The significant boost to his total compensation is owed to a one-time transition equity award worth 92,406,852 euros (roughly $100 million) that is comprised of 50% restricted stock units and 50% performance stock options. The performance stock options vest over the coming five years and can only be excised once UMG’s stock hits certain thresholds. UMG’s stock last traded at 29.23 euros ($31.44).
Taking into account other short-term and long-term incentives and benefits, Grainge’s total 2023 compensation is 138,814,000 euros or $128,264,000 based on a monthly average foreign exchange rate of 0.924.
The shareholder advisory firms were aligned in their concerns over how UMG’s pay practices compared to similar companies and argued the one-time transition award was not sufficiently linked to the company’s stock performance.
ISS said Grainge’s pay was more than 25 times higher than the median pay of CEOs from a peer group that included companies like Spotify and Vivendi.
In its report, Glass Lewis cited an alert published by Eumedion, the Dutch Corporate Governance Forum for institutional investors, which said it was “unclear if the company can count on societal support for the CEO’s total remuneration … in addition to the dissent shareholders expressed at the company’s 2023 general meeting.”
UMG said in its annual report that “the increase in remuneration year-over-year is primarily driven by the transition to a more performance-based and share-based remuneration package.”
UMG’s stock rose 17% in 2023, “which it believes is indicative of the success of its recent remuneration practices in incentivizing the creation of value,” according to the Glass Lewis report.
ISS also recommended investors vote against the election of Bill Ackman, the billionaire investor whose Pershing Square Capital Management owns 10.25% of UMG, and also against Cyrille Bollore, Manning Doherty, Catherine Lawson-Hall, James Mitchell and Vincent Vallejo, because the board “lacks sufficient independence among its members.”
Universal Music Group is betting big on French-speaking Africa, announcing a new partnership on Wednesday with Wèrè Wèrè Music founder Binetou Sylla to lead Def Jam Africa‘s efforts in the rapidly growing music market. Working with Universal Music France and Capitol France, Sylla and her team will focus on discovering and producing French-speaking artists in […]
When licensing negotiations between TikTok and the Universal Music Group collapsed at the end of January, many official recordings from UMG artists vanished from the platform. UMG chief digital officer/executive vp Michael Nash told financial analysts in February that the company had been “providing notices to effectuate the muting of millions of videos every day for the last two weeks.” Yet a number of songs connected to UMG — or its publishing wing, Universal Music Publishing Group — remain available on TikTok anyway.
Some are user uploads, which might theoretically be harder to find and take down or mute. Others are official tracks, including recent releases from prominent stars and fast-moving viral hits. And much of Taylor Swift’s catalog returned to TikTok on Thursday (April 11), raising the question of how other artists may be able to find workarounds while the licensing dispute continues.
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One possible reason that some songs are staying on TikTok: Several artist lawyers tell Billboard they are devising contractual carve-outs to allow their clients to keep their music on the platform. Others note that even though they haven’t added these clauses to recording agreements yet, it has become a topic of conversation with their clients.
“Some labels are allowing some of their artists to exclude newly created music from the grant of rights until the label has a deal in place” with TikTok, says David Fritz, founding partner at Boyarski Fritz. “Because the issue is so new, we are developing on the fly to meet the needs of talent — songwriters and artists — that want their music on TikTok. This is an issue, and workaround, that came about solely as a result of UMG taking down its catalog from TikTok.”
Reps for UMG and TikTok declined to comment.
Some artists have invested years of their life building a following on TikTok. (Predecessor Musical.ly was acquired by Bytedance in 2017 and then relaunched in the United States as TikTok the year after.) For more than two months now, they’ve been unable to share official recordings with those fans on the platform — the same fans who may have earned them their major-label deal in the first place.
“Some artists are concerned about this,” says Josh Binder, founding partner at Rothenberg Mohr & Binder. “They don’t want to be uncompetitive, unable to use TikTok to muster up an audience.”
“TikTok is mostly used as a new-music discovery tool — discover a clip on TikTok, listen to it on a DSP,” Fritz adds. “So those who are trying to get their music discovered are the most concerned” about being unable to promote new songs on the app.
In 2022, MIDiA Research found that TikTok was the second-biggest driver of music discovery for Gen Z, after YouTube. In recent months, TikTok popularity has helped little-known acts like Dasha, Good Neighbours and the Red Clay Strays explode at streaming services — leading to major-label deals — and contributed to breakout hits for Djo, Flo Milli and Benson Boone, among others.
UMG pushed back against the idea that TikTok has a lock on discovery during its most recent earnings call. Chairman/CEO Lucian Grainge told financial analysts that TikTok was “not a material part of the multidisciplinary jigsaw where we promote and market our music globally.” And UMG CFO/executive vp Boyd Muir said that UMG would “focus on accelerating [its] partnerships” with other social media platforms, including Meta, Snap and YouTube, to provide alternative promotional avenues for its artists.
But the job of an artist lawyer — a good one, at least — is to help their client get what they want. Labels typically aim to control as many rights as they can for as long as they can. In the modern music business, artists have more ability to push back; because they can generate momentum on their own, without a record company’s help, more aspects of a record deal are negotiable. “You can cherry-pick what you want to be in your contract to some degree,” Scott Booker, the longtime manager of The Flaming Lips, recently told Billboard.
As with any negotiation, artists’ ability to get their preferred terms comes down to their leverage — for stars especially, there are few rules that can’t be bent — and the skill of the lawyers involved. “If you successfully reserve the right to license to TikTok directly in your contract with UMG, you would be able to do so directly or via a third-party service,” says Leon Morabia, a partner at Mark Music & Media Law. “It would be a difficult point to win in a deal, but it is contractually feasible.”
Josh Love, partner at Reed Smith, says he has been able to get “a carve-out” in the past that allowed an artist “to do a direct license with a DSP” — a digital service provider like TikTok or another social media or streaming service — “if the label or distributor is ever not licensed with that DSP and [the artist] wants to remain on the platform.” This is meant to act as interim coverage for an artist; if the label or distributor were to form a new licensing agreement, that would likely supersede that deal made between the artist and the DSP in the meantime.
Some clauses that are already in record deals could also be expanded by artist attorneys to ensure their clients’ music remains available on TikTok. “Release commitments,” for example, are put in place to “force the label to guarantee that a record will be released within certain months after delivery so that the artist’s record doesn’t get ’shelved,’ with the artist stuck in the deal,” says Gandhar Savur, a music attorney.
These clauses have become increasingly comprehensive, stretching “to cover commitments by the label over more specific aspects of the release — the exact countries in which the album will be distributed, formats that the album will be released in such as vinyl and digital, and even including specific major DSPs by name like Spotify and Apple Music.” After negotiations between UMG and TikTok unraveled, Savur continues, “it would be a natural response that artist attorneys will gradually start to require release commitments to cover all platforms generally so that if a label is not licensed with a particular platform for any reason, the artist can deal with that platform directly.”
Savur believes that artists who are signed to labels that are distributed by UMG, rather than signed directly, probably have more latitude to try to deal with platforms like TikTok on their own. “Although I believe that what Universal is doing overall is a good thing for the industry, Universal-distributed labels might be more sympathetic to their artists’ desire to stay on TikTok because the increased streaming and ticket sales [that] result from any tracks going viral on the platform can be a big win for the artist and label alike,” Savur says.
If the UMG-TikTok deadlock rolls on, Fritz says, “smart lawyers” with leverage will find “a workaround that enables their clients to continue to use the most popular discovery tool while the large-scale license gets worked out.”
When Ariana Grande released her latest album eternal sunshine, one of its most beloved tracks, “the boy is mine,” became an instant dance trend on TikTok. At any other moment, a viral trend around a major pop star’s new song would seem obvious, even normal. But amidst the licensing feud between TikTok and Grande’s record label Universal Music Group, it’s a surprise to find the song on TikTok at all.
Grande’s music is not alone in sticking around on the app far past the expiration of UMG’s last license, which lapsed at the end of January. Thanks to clever tactics by fans, artists and their teams, some notable UMG-affiliated songs have been able to effectively skirt the company’s TikTok boycott. While it helps promote these songs individually, trying to get around the ban also has a knock-on effect for songwriters — and supplies UMG hits to TikTok without the app paying a cent.
An Olivia Rodrigo fan under the username LouLiv recently uploaded Rodrigo’s new single “so american” to TikTok as an “original sound,” and Rodrigo herself used the sound in a few recent TikToks, helping boost the song’s visibility. Grande’s fans have also been creating various versions of “the boy is mine” on TikTok, which has helped spread the song on the app, as well as other tracks from eternal sunshine.
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These original sounds often manipulate the official recording, changing the speed, pitch and/or title of the song to help them slip past TikTok’s detection technology, which is used to automatically catch songs, like UMG’s, that are not licensed to be on the app. A source close to the matter says that TikTok’s detection technology combs for metadata provided by UMG and UMPG and then removes the content. But the remaining original sounds that don’t get automatically wiped from TikTok are so widespread that it can sometimes feel like UMG never left the app at all.
The songs are not hard to find, either. The most popular sound for Rodrigo’s “so american,” for example, is straightforwardly titled “so american” and already has 33,400 videos created with the song to date. The most-used original audio for “the boy is mine” was recently removed after weeks on TikTok, a sign that UMG is issuing takedowns for some original sounds using their catalog. But multiple other original audios for the song remain, including “the boy is mine” by star and “the boy is mine sped up” by satvrn, amounting to over 100,000 videos made to original sounds of the song on TikTok and counting.
For songwriters, there are negative consequences. In two separate text and email chains reviewed by Billboard, non-UMG recording artists that have worked on recent or upcoming releases with UMPG songwriters have asked the track’s songwriters to withhold information about who wrote the song at the time of a track’s release to try to skirt the UMG TikTok ban — and the songwriters have agreed.
Though the two sources who provided correspondence to Billboard wished to remain anonymous to protect their clients, Lucas Keller, founder/CEO of Milk & Honey and manager to a number of songwriters and producers, confirmed that this is happening to songwriters. “Sometimes there’s a song coming out and there’s four writers, and one of them is UMPG, and someone steps forward and says, ‘Hey, can you not get in the way of this one? Can we register this in like three months?’” Keller says. “Then the song can be used on TikTok. It’s an interesting dark corner of the business that’s emerged.”
It is common for tracks to be released without submitting the proper publishing “splits,” meaning the names of the writers and what the percentage of ownership each holds, given these negotiations can be lengthy and sometimes contentious. But in the cases Keller and the other two sources discussed with Billboard, the songs’ publishing splits were ready to go and could have been submitted on time. The only reason they weren’t was to allow the artist to promote it on TikTok.
Michelle Lewis, co-founder and CEO of Songwriters of North America (SONA), says these asks by artists put songwriters in a bad position. “Songwriters are the least equipped to negotiate, the lowest on the food chain in these discussions,” Lewis says. She worries songwriters don’t feel like they have the ability to push back on these asks if they want to. Meanwhile, leaving out this key information could threaten the songwriters’ ability to get paid royalties from streaming services on time if the parties hold out longer than a few months.
Lewis, Keller and three artist managers who wished to remain anonymous, all tell Billboard that some artists are also “thinking twice” about inviting UMPG writers to sessions. “I have also heard about Universal writers not being invited to camps,” Lewis says; while it’s unclear how often this is occurring, Keller says it “is absolutely happening.” Adds Lewis, “It’s so uncool. If you’re not including Universal writers, you’re basically crossing the picket line. You’re weakening [UMG’s position].”
A UMPG spokesperson declined to comment on its songwriters facing these specific effects from the TikTok feud, but pointed to its letter to songwriters on Feb. 29, which read in part, “We understand the disruption is difficult for some of you and your careers, and we are sensitive to how this may affect you.”
Some official recordings with UMPG writers, like “Texas Hold Em” by Beyonce, who is affiliated with Sony’s Columbia Records, still remain on TikTok for unknown reasons. That song, which is currently ranked at No. 5 on Billboard’s TikTok Viral 50, was co-written by UMPG’s Raphael Saadiq, as were other songs on Beyonce’s new album Cowboy Carter that remain on the platform.
“Texas Hold Em” and some other tracks by Beyonce have a large number of songwriters — which is one major reason why publishing information is often submitted late — so it is possible that TikTok hasn’t removed the track because it doesn’t have verification that it is in any way affiliated with UMPG. Strangely, however, this track was taken down from TikTok briefly and then reappeared days later. When asked why “Texas Hold Em” was available on TikTok despite its clear ties to UMPG, neither TikTok nor UMPG responded to Billboard’s requests for comment.
Regardless of how these songs avoided an automatic removal from TikTok, UMG could have requested that these popular tracks and original sounds be taken down by now. Rights holders are able to manually request takedowns of content on TikTok that they believe infringe on their copyrights, like the original sounds for Grande and Rodrigo and songs like “Texas Hold Em,” and TikTok is required to remove them to remain in compliance with the Digital Millennium Copyright Act.
But tracking down all infringing content and requesting takedowns, especially for a catalog of millions like UMG’s, is known to be a tedious task. As UMG put it in its original letter to artists and songwriters, it is “monumentally cumbersome” and “the digital equivalent of ‘Whack-A-Mole.’” Michael Nash, the company’s executive vp of digital strategy, also added on an earnings call on Feb. 28 that the company had sent requests to “effectuate muting of millions of videos every day.” However, it is possible to get infringing tracks removed if that is the rights holders’ wish.
“This is not a united front,” Lewis says. “It feels indicative of our industry overall. We can never get along, and the individual creator is the one who gets hurt… It’s totally not fair for songwriters, but this is all beneath the top line concern, which is that TikTok completely underpays, undervalues songwriters. That’s number one. They’re the ones who started this.”
Attorneys for Universal Music Group CEO Lucian Grainge fired back at a lawsuit that claims he and the label “aided and abetted” Sean “Diddy” Combs in his alleged sexual abuse, saying the accusations are so “offensively false” that they plan to seek legal penalties against the lawyer who filed them.
In a motion to dismiss all claims against UMG and Grainge, the label’s lawyers blasted attorney Tyrone Blackburn for filing “knowingly false allegations” of criminal wrongdoing “without the slightest factual or legal basis.” They said they would seek so-called sanctions against him in a future filing.
“A license to practice law is a privilege,” wrote Donald Zakarin, a longtime music industry litigator who represents UMG and Grainge. “Mr. Blackburn, plaintiff’s lawyer, has misused that license to self-promote, gratuitously, falsely and recklessly accusing the UMG defendants of criminal behavior.”
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The Wednesday filing came in response to a lawsuit filed last month by a producer named Rodney “Lil Rod” Jones, who says the rapper sexually assaulted and harassed him. The lawsuit is one of several abuse cases filed against Combs, in addition to an apparent federal criminal investigation that led to raids of his homes this week. Combs has strongly denied all allegations of wrongdoing.
But the case filed by Jones went far beyond a simple assault claim, arguing that Diddy, Grainge and many others had also violated the Racketeer Influenced and Corrupt Organizations Act – the federal RICO statute that’s more often used in criminal cases against mobsters and drug cartels. He also accused the various defendants of violating federal sex trafficking laws.
In Wednesday’s filing, UMG’s lawyers said those claims were “entirely invented by Mr. Blackburn.”
“The [complaint] hurls accusations of criminal racketeering and criminal sex trafficking against the UMG defendants, respected individuals and companies having utterly nothing to do with plaintiff’s claims,” Zakarin wrote Wednesday’s filings. “These accusations are recklessly false and, but for the fact that they are embodied in a complaint, would be libelous.”
In addition to the original allegations, UMG’s lawyers also sharply criticized Blackburn for filing a second, updated complaint this week – a filing that they claim drastically altered the allegations. In his filing, Zakarin called it the worst lawyering he had seen in nearly 50 years as an attorney.
“In all that time, I have never seen any attorney display anything remotely like the utter indifference shown by Mr. Blackburn towards his obligations as an attorney,” Zakarin wrote. “I have never seen any lawyer, in any pleading, in any court, accuse people and companies of criminal conduct without the slightest basis and then try to file an amended pleading completely jettisoning every allegation underpinning the original claims and substituting completely different and irreconcilable allegations to support the very same claims.”
In a letter to the judge Thursday, he called the UMG motion a “public relations stunt” that had been filed in bad faith. “They did not have any issues marrying themselves to Mr. Combs when it was popular. Now, suddenly … they are treating Mr. Combs like he has the plague,” Blackburn wrote in the letter.
In a statement to Billboard on Thursday, Blackburn said: “UMG should produce their financial records. Let’s see what the money was used for. Stop trying to escape liability.”
A spokesman for UMG did not immediately return a request for comment on the motion.
Universal Music Group (UMG) has expanded its relationship with HYBE to include the exclusive digital and physical distribution rights to the company’s artists for the next 10 years. UMG will also continue to collaborate with HYBE’s Weverse to onboard more UMG signees to the superfan platform.
Scooter Braun, CEO of HYBE America, will take on new responsibilities with the new agreement. The SB Projects founder and former manager to Ariana Grande, Demi Lovato and J Balvin will now oversee all promotional and marketing collaborations between HYBE and UMG in North America.
Notably, this exclusive distribution deal does not include social media sites YouTube, Meta and TikTok, allowing HYBE artists to remain on the short-form video app despite UMG’s current licensing feud with TikTok.
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The announcement builds upon the already established relationship between HYBE and UMG which started in 2017 with a partnership that gave UMG distribution rights to HYBE’s BTS in Japan. In late 2021, HYBE expanded the deal to grant UMG’s Geffen Records distribution rights for BTS in the United States and other regions, moving their U.S. distribution over from Sony Music’s Columbia Records.
Geffen and HYBE also worked together via a joint venture to put together the Netflix and YouTube streaming documentary series The Debut: Dream Academy in which the two music companies work together to form an American girl group using HYBE’s K-pop methodology.
Last year, BMG also moved some of its distribution to Universal Music. In October, the company announced that it would move its physical distribution to UMG’s Commercial Services divison, starting in the second quarter of 2024. It will be fully transitioned by the end of 2024.
“A partnership of this magnitude only comes together when both sides are equally committed to continued growth,” says Bang Si-Hyuk, Chairman of HYBE. “UMG is an iconic music company and together with HYBE, the potential is endless. We are certain that this will expand our global footprint, while benefiting our fans, artists, and labels.”
“Chairman Bang, Scooter Braun and Jiwon Park have brought an innovative and progressive vision to the industry that underscores music’s global power,” adds Lucian Grainge, Chairman and CEO of Universal Music Group. “With the opportunities in engaging the superfan via their groundbreaking Weverse model, we’re thrilled to grow and expand our platform business collaboration as we evolve together leading the music industry’s evolution.”
“This incredible partnership between our companies will ensure mutual benefits and collaborations for the fans, teams, artists, and labels around the world,” says Braun, CEO of HYBE America. “The opportunity created here not only allows us to help our current roster, but grow opportunities for independent artists and labels globally. I’ve known and respected Sir Lucian Grainge for many years, and alongside chairman Bang and HYBE CEO Jiwon Park, we look forward to the undeniable opportunities that will come from this partnership as we together grow the music industry’s future.”
At the end of February, TikTok took down every song in which Universal Music Publishing Group owns a share, a complicated step in the escalating showdown between the two companies that started a month earlier during the week before the Grammy Awards.
We are now in uncharted territory: Never before has a major label used the “nuclear option” to withdraw both recorded music and publishing rights from a platform — an especially dramatic step because it includes any song in which UMG owns even a small share. (By Billboard‘s estimates, it affects over 60% of the most popular TikTok songs in the U.S.) What most people don’t know is that these negotiations might perhaps also be affected by a Feb. 9 decision from the Munich Regional Court about the German implementation of the 2019 European Union Directive on Copyright in the Digital Single Market — the Urheberrechts-Diensteanbieter-Gesetz (UrhDaG). It will certainly shape future negotiations like this.
The case involved the Berlin-based film distributor Nikita Ventures, which operates YouTube channels and, coincidentally, TikTok. And although it wasn’t covered much by English-language press, it shows that negotiating leverage is gradually shifting from platforms to rights holders. “This verdict,” Matthias Lausen, a founding partner of the Lausen law firm, who represented Nikita told me, “shows that there is no safe harbor in Europe anymore for platforms.”
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In the case, Nikita said that it offered to license its content to TikTok in early 2022, at a cost of three euros per thousand views, an amount based on a published rate from GEMA, the German collecting society. (Licensees often seem to pay less than this.) By summer, TikTok had not responded with a counteroffer, and Nikita said that the content it had asked TikTok to block was available until August. TikTok said in court that it was still negotiating, that its filtering system is compliant with the law and that it responded to takedown notices. The court essentially ruled that TikTok didn’t make a best effort to negotiate, though, and held the company liable for infringement, with damages to be determined, plus required it to provide information about how many times the content in question was accessed, as well as its resulting revenue and profit.
Why does this matter? Until now, the U.S. Digital Millennium Copyright Act and laws like it have limited the leverage of rights holders in negotiations. Platforms that make available content uploaded by users have been free to build audiences, and businesses, as long as they have no direct knowledge of infringement and respond promptly to takedown notices filed by copyright holders. This has given platforms what some might call a “Free Ride,” and on a Feb. 28 UMG earnings call chairman and CEO Lucian Grainge said “there must not be free rides for massive global platforms such as TikTok.”
The 2019 European Copyright Directive was intended to address this, and it requires online platforms to make their “best efforts” to license content, as well as block content they haven’t licensed once rights holders have given them the necessary information. But this is the first court decision based on it.
Nothing will change overnight. The scope of this decision is limited, platforms could potentially get around it by better documenting their negotiations with rights holders, and it’s hard to imagine it will have a substantial effect on UMG’s negotiations with TikTok. But it shows that Europe is serious about forcing online platforms to negotiate on an even playing field, which should result in more favorable deals. (Since European countries do not have class-action lawsuits or high statutory damages for copyright infringement, though, this will not lead to a gold rush of litigation.)
Much of that is in the future, and some of these deals will involve platforms that don’t even exist yet. To get a sense of how this might play out, though, imagine a video-based nano-blogging platform that allows schoolchildren to record minute-long covers of pop songs. (I’m making this up, of course, but it’s not the dumbest idea I’ve heard this year.) That platform would have to approach rightsholders about deals early and often, then take serious steps to block the content they ask it to. That means it would have to license content before it got big — not once it’s already too big to fail.
Even now, TikTok needs to make a “best effort” to take down UMG’s publishing catalog. The company took prompt action, so it’s likely to be in the clear there, although it will be interesting to see what happens with recordings that are sped up and slowed down. At a time when songs are sliced and diced by influencers, how elaborate does a best effort have to be? Could we find out in a case that involves this dispute? The odds are against it, but stranger things have happened.
For the past quarter century, rights holders have had a hard time negotiating on an even playing field, which has arguably pushed down the price of content for both online businesses and, through them, for users. That dynamic is changing — slower than rights holders want and faster than platforms prefer — but steadily all the same. It will be hard to measure this, because these big licensing deals by their nature are complicated and intransparent. Finally, though – for good or ill depending on what side you’re