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The music business, historically speaking, has not been great at consensus. But there does seem to be growing agreement from many quarters now that the existing payment structure for streaming royalties isn’t working for everyone and that a different approach is required.
This isn’t a new idea, but it’s one that’s quickly gathering steam in the wake of Universal Music Group chairman/CEO Lucian Grainge’s internal staff memo/open letter to the industry earlier this month, in which he called for an “updated model” for the music industry — one that will be “an innovative, ‘artist-centric’ model that values all subscribers and rewards the music they love.”
It wasn’t clear what, exactly, Grainge meant in the letter. And on Tuesday (Jan. 31), it became a little bit clearer that, as of yet, there isn’t much clarity on what it will mean — though UMG is hoping to find it. To that end, Universal has announced a partnership with TIDAL to “research how, by harnessing fan engagement, digital music services and platforms can generate greater commercial value for every type of artist,” according to a press release. Essentially, there are a lot of unknowns here other than that something needs to change.
That was more or less what UMG’s executive vp/chief digital officer Michael Nash said in a statement accompanying the release. “As the digital landscape continues to evolve, it’s become increasingly clear that music streaming’s economic model needs innovation to ensure a vibrant and sustainable future,” he said. “Tidal’s embrace of this transformational opportunity is especially exciting because the music ecosystem can work better — for every type of artist and fan — but only through dedicated, thoughtful collaboration. Built on deeply held, shared principles about the value of artistry and the importance of the artist-fan relationship, this strategic initiative will explore how to enhance and advance the model in keeping with our collective objectives.”
This is not TIDAL’s first attempt at stepping out of the traditional streaming royalties model, in which streaming income is collected and divvied up among rights holders according to their share of total streams. In November 2021, the streamer announced a new three-tier membership structure and a step into a user-centric royalty model for its premium tier, which endeavored to pay rights holders based on the streaming activity of each individual user — with the additional element that 10% of each user’s subscription fee would go directly to their most-streamed artist.
That, in itself, is a twist on the “fan-powered royalties” that SoundCloud first rolled out in March 2021, which allocated streaming revenue to artists based on which acts a given user listened to, and which Warner Music Group opted into last year. (Deezer has also publicly supported a user-centric model.) SoundCloud says that artists using FPR generate 60% more streaming revenue than those who use the more traditional model, though it’s currently only being offered to indie artists and WMG artists on the SoundCloud platform; a MiDiA study said that 56% of artists were better off with FPR. Access to the data on who the fans are who are streaming that music the most, SoundCloud has said, is the true game-changer for the model.
There has, however, been some hesitance around that user-centric idea, mainly due to studies conducted in the last few years surrounding who would benefit, and at the expense of whom, by the switch. One study found that for 99.4% of artists, the switch would equate to less than a 5% bump in royalties — for many, effectively just a few euros per year — which could be offset by the administrative costs of the switch itself for the platform. That could disproportionately affect R&B/hip-hop artists, given that the genres have thrived in the streaming era, to the benefit of other, smaller or more niche genres. And it would definitely take away from top earners’ revenue — i.e., artists who wield an outsized voice in the business. A general view became that the switch would equate to moving money from one bucket to another, without really moving the needle for most artists at all.
TIDAL, in today’s announcement, effectively conceded the point and said they are stepping away from the user-centric model they were pursuing in order to take a step back and join in this new research project with UMG. “We are setting aside our current fan-centered royalties investigation to focus on this opportunity for more impact,” TIDAL’s Jesse Dorogusker said in a statement. “This partnership will enable us to rethink how we can sustainably improve royalties’ distribution for the breadth of artists on our platform.”
What they’re saying is, essentially, it’s time for a new study to see if there are better, perhaps more nuanced, ways to change up a model that pretty much everyone is beginning to agree is no longer functioning the way it was originally intended. “At TIDAL, we learned from [fan-centered royalties] there is an opportunity to build a royalties distribution model that could be better at compensating the breadth of genres and artists that contribute to streaming catalogs,” TIDAL’s global head of communications Sade Ayodele tells Billboard. “Many of the alternative models explored, however well intended that they are, unfortunately create a new set of winners and losers. With this partnership, we’re hoping to find a fairer and more equitable distribution approach that benefits a broader set of genres and artists contributing to the culture of music.”
Which brings us, again, to the original question: What will that look like? The answer could be varied, and it could be different for each streaming service. There have been some conversations in some sectors of the industry about weighting music streams higher than background sounds, for instance, or more heavily weighting intentional listening (searching for or clicking on a song or artist) over background listening (a playlist, or an algorithmically-chosen next song). There are already different models around ad-supported vs. paid subscription payouts, and there is a conversation to be had about how fan engagement should or could influence where money is directed. What UMG and TIDAL are trying to say with Tuesday’s announcement is, let’s go try some things and see what works, and let everyone else know what we’re doing so that maybe they can try to find an innovative answer, too.
Consensus is a hard thing to come by. There likely won’t be a consensus around what the end solution is, and several options could eventually emerge. But streaming has been around for more than a decade now, and if there’s any consensus at all, it’s that something needs to change.
A federal judge ruled Friday that hundreds of artists cannot join forces to sue Universal Music Group to regain control of their masters, saying the case raised big questions about “fairness” but that it was ill-suited for class-action litigation.
The ruling came in a closely-watched case brought by “Missing You” singer John Waite and others over copyright law’s “termination right.” The rule is supposed to let authors take back control of their works, but the lawsuit claims UMG has flatly ignored that requirement when it comes to sounds recordings.
Waite wanted to certify the case as a class action — a make-or-break move that would have allowed hundreds of UMG artists to bring their claims as a single lawsuit, represented by a single set of lawyers.
But in a crucial ruling issued Friday, Judge Lewis Kaplan denied that request, citing the complex and unique questions raised by each individual artist’s relationship with UMG.
“Plaintiffs’ claims raise issues of fairness in copyright law that undoubtedly extended beyond their own grievances,” the judge wrote. “However, the individualized evidence and case-by-case evaluations necessary to resolve those claims make this case unsuitable for adjudication on an aggregate basis.”
Waite and other artists sued UMG in February 2019, claiming the label had effectively refused to honor the termination right. The case was filed as a proposed class action, aiming to eventually represent hundreds of others in a similar situation. A nearly-identical case was filed on the same day by the same attorneys against Sony Music Entertainment, claiming it had adopted a similar stance on terminations.
According to the lawsuits, the labels have long claimed that sound recordings – unlike the underlying musical compositions controlled by music publishers – are effectively never subject to the termination rule. The basic argument is that most recordings are so-called works for hire, meaning the label essentially creates them itself and simply hires artists to contribute to them.
In seeking to pull hundreds of other artists into the lawsuit, lawyers for the artists argued that UMG has made those “fictitious” and “erroneous” arguments “in every instance” that an artist invokes the termination right – meaning they represent the kind of “systematic wrongful conduct” that is best addressed by a huge class action.
But in Friday’s decision, Judge Kaplan disagreed. “The … analysis requires understanding for each artist the circumstances in which the recordings were produced, the creative involvement, if any, of the record label, and the types of resources and payments the record label provided the artist.”
To decide if a record really was produced simply as a work for hire, the judge said tricky questions would need to be answered for each separate artist. Judge Kaplan said the evidence indicated that UMG sometimes only provided “big picture approval authority,” which could help an artist prove their right to terminate. But for other artists, he said the label was “more involved in the creative process.”
“Did the record label agree on the lyrics and music with the artist?” the judge asked. “Did the record label select the producers and sound engineers to work on the sound recordings? What level of substantive artistic feedback, if any, did the record label provide?”
The ruling is not necessarily a death-knell for the lawsuit against UMG, which will now proceed on behalf of Waite and a handful of others. Evan Cohen, the attorney who represents the artists, did not immediately return a request for comment.
The case could still make a big impact, class-or-no-class. Countless other artists have similar arrangements with record labels over highly-lucrative masters, but the legal arguments about when sound recordings are subject to the termination right have thus far only been lightly tested in court. A final ruling in favor of Waite could provide key legal ammo for those other artists, even if they need to bring their own cases.
A representative for UMG did not immediately return a request for comment.
But it will doubtless be a severe logistical hurdle for such cases actually being filed, since they’re expensive to litigate and artists typically lack the same kind of legal resources as the major labels who have denied their termination requests. A class action would have allowed the artists to pool their resources and secure a sweeping decision with only a single set of legal costs.
Friday’s decision will not directly apply to the similar proposed class action against Sony, which has been on pause for months as the two sides attempt to strike a settlement. But the new ruling, issued by a judge in the same federal court district as the Sony case, certainly does not bode well for that case being certified as a class action.
Read the entire decision here:
TV producer and recording industry executive Roey Hershkovitz was named vp of sound & picture at Universal Music Group (UMG), a newly-created position. In the role, Hershkovitz will lead visual content capture across UMG’s studios, develop new programming and build on the company’s immersive audio efforts. Alongside head of video services Joe McCrossan, he will also develop new strategies to build on the company’s multimedia services and capabilities available to record labels, artists and songwriters. In addition to his vp of sound & picture title, Hershkovitz will also serve as head of West Coast studios, where he will continue to oversee Capitol Studios and its ongoing renovation. He was also appointed to UMG’s audio leadership team to drive innovation and audio quality, including Dolby Atmos Music adoption across a broad array of consumer products. Now based out of Santa Monica, Hershkovitz will report to executive vp of digital studios Christopher Jenkins and senior vp of recording studios & archive management Pat Kraus. Prior to his promotion, Hershkovitz was vp of Capitol Studios & Digital Studios.
Rapper Papoose was named head of hip-hop at TuneCore, where he will lead the Believe-owned company’s artist ambassador program for hip-hop and rap, scouting emerging talents, overseeing artist education and career advice workshops and acting as a brand advisor for new programs and technology launches. He’ll report to CEO Andreea Gleeson. In addition to his new executive role, Papoose also announced the release of his new single, “Making Plays” featuring Jim Jones and Jaquae, which drops Feb. 10. He can be reached at papoose@tunecore.com.
Colton McGee was named senior vp of business and legal affairs at Concord Label Group. Based at the company’s Nashville headquarters, McGee will work with executive vp of business and legal affairs Gregg Goldman as a key member of the business and legal affairs team for Concord’s recorded music division. McGee previously spent 13 years at BBR Music Group in Nashville, handling business and legal affairs for both BBR and BMG (the latter since 2017). He can be reached at colton.mcgee@concord.com.
Warner Chappell Production Music (WCPM) will expand into Brazil with a new team based in São Paulo, headed by Renato Moraes. In his role, Moraes will lead a team focused on building out a local repertoire and work to expand the company’s footprint by servicing the region’s film, TV, radio and advertising clients with WCPM’s catalog. The team will also provide custom music services and work to broaden creative partnerships. Moraes will report to vp of licensing & music creative Sinéad Hartmann and work closely with director of strategic, commercial, film, synch and licensing Flávia Cesar. He joins the company from Music Branding Brazil, where he was head of recordings and publishing. Moraes can be reached at Renato.Moraes@warnerchappellpm.com.
Adam Gardiner was named senior vp of international synch at Concord Music Publishing; he joins the company from Universal Music Group’s creative division, Globe, where he served as head of film & TV. In his new role, Gardiner’s purview will include all music publishing synch activity outside the U.S., with the U.K., Germany and Australia synch teams reporting directly to him. He will also coordinate all of the company’s third-party synch activity. Based in London, he reports to president of international publishing John Minch.
Music scholar and musician Jason King was named dean of the USC Thornton School of Music, effective July 1. He currently serves as chair of the Clive Davis Institute of Recorded Music at Tisch School of the Arts, New York University and also serves on the editorial board of the Journal of Popular Music Studies.
Joe Conyers III was named senior advisor to global growth investor Warburg Pincus in their technology group, specifically focusing his efforts on new investment opportunities in music and entertainment companies. Conyers was formerly executive vp and global head of NFT at Crypto.com and chief strategy officer of Downtown Music Holdings; he also co-founded Downtown subsidiary Songtrust. Conyers can be reached at jc@joeconyers.com and his website is joeconyers.com.
Erika Montes was named president at Rostrum Records, where she will lead the company’s growth strategy and oversee frontline label operations. Montes most recently led artist and label relations at SoundCloud, where she served as global vp. She reports to Rostrum founder Benjy Grinberg and can be reached at em@rostrumrecords.com.
Artist manager Andy Robinson and cross asset speculator Sean Stockdale launched Interstellar Music Services, a rights management company that “will primarily be made available to those qualifying artists and songwriters who wish to retain full control of their recordings and compositions,” according to a press release. The company will work to maximize the collection of royalties via a suite of services that includes digital distribution, sync and brand partnerships, metadata cleaning, neighboring rights, publishing administration, DSP repitching and detailed analysis and reporting. Joining Interstellar at launch are David Wille and Sarah Bargiela, who join as global head of sync and brand partnerships and head of copyright and royalties, respectively. Robinson formerly launched Interstellar Music and Interstellar Publishing, which informed the establishment of Interstellar Music Services; Stockdale has 13 years of experience in asset management, with a particular expertise in saber metrics. Wille most recently served as senior vp at Kobalt Music Publishing, while Bargiela was senior income tracking manager at BMG Rights Management.
Ru Ping Gan was named vp of digital, Asia Pacific at Warner Chappell Music, where she will oversee Warner Chappell Music Asia Pacific’s digital strategy and commercial operations while working closely with the global digital and WCM Asia leadership team to help shape international policies that support local songwriters. She will also be tasked with driving digital strategic planning initiatives. Gan, who was most recently vp of revenue and deal strategy, joined WCM Asia Pacific in 2013.
Butch Spyridon, longtime head of the Nashville Convention & Visitors Corp (NCVC) who has served as president and CEO since 2003, will retire from the organization on June 30, 2023, following 32 years as its top executive. He’ll be succeeded by current president Deana Ivey, who will be promoted to president and CEO effective July 1, 2023. On that date, Spyridon will transition into a role as a strategic consultant to the NCVC under a two-year contract that will see him recruiting major global events to the city, including the Rugby World Cup and, if an enclosed stadium is approved, the Super Bowl.
Patra Sinner was named general counsel at Symphonic Distribution, where she will advise the company’s senior management team on both internal and external legal needs and manage and negotiate partner contracts including DSPs, industry organizations and contractors, as well as record labels, ambassadors and artists. Based in Charlotte, North Carolina, Sinner has been in private practice for nearly 20 years and is also the co-founder of Nashville-based artist management, distribution and label services company Vista 22. She can be reached at patra@symdistro.com.
Meike Nolte was appointed business development manager for b:electronic, the dance & electronic division of Believe. Reporting to b:electronic global director Leigh Morgan, Nolte will be tasked with defining and executing the sourcing and acquisitions strategy for labels and artists within the electronic division. She most recently led Beatport’s artist services department.
Dave Felipe was named director of publicity at Zach Farnum‘s 117 Entertainment, where he will oversee all publicity initiatives for 117’s roster. He was most recently public relations manager for the Mechanical Licensing Collective (the MLC). Felipe can be reached at Dave@117group.com.
Ra-Fael Blanco was promoted to senior vp of media relations & communications for Universal/Virgin Music’s SRG-ILS Group; he was previously vp of media relations. Blanco will continue overseeing PR and media efforts for SRG-ILS clients including Chaka Khan, Brian McKnight and Erica Campbell, among others. He reports to general manager Michael Cusanelli and founder/CEO Claude Villani. Blanco can be reached at Ra-Fael@2rsentandmediapr.com.
Austin-based publicist Trey Hicks launched his own PR agency, Painting Pictures. Joining Hicks in the new venture is Allison Winkler. Hicks previously worked as an account director at Giant Noise and founded Trey Hicks PR. He can be reached at trey@paintingpictures.co.
Lauren Branson joined River House Artists as vp of publicity, where she will develop and execute PR strategies for the company’s roster. She reports to founder and CEO Lynn Oliver-Cline and vp and gm Zebb Luster. Branson joins from BMI, where she served as senior director of media relations for eight years. She can be reached at lauren@riverhouseartists.com.
Amber Morris was hired as global account director – TikTok at Songtradr. In the role, Morris will build and maintain the company’s relationship with TikTok, working with their team to expand the video-sharing platform’s partnership with Songtradr.
Graham Rothenberg was named partner at entertainment marketing agency The Syndicate, with his title elevated to president & general manager. Rothenberg, who has been with the company for 18 years, has served as general manager since 2018. He will now lead the agency alongside partners Jon Landman, Tracey Zucatti and Chris Elles. During his tenure, he has been a key force in campaigns including the Interpol “Big Shot City” exhibit and Panic! At The Disco’s crop circle tour announcement.
“I’ve known Graham for over 20 years and have watched him grow from College Radio Music Director (WICB) to College Radio Promoter at The Syndicate to becoming our General Manager and now being elevated as our President and a Partner of the company,” said managing partner/CEO Jon Landman in a statement. “Graham’s leadership and creativity have been instrumental in advancing our organization to new levels while staying true to the grassroots connection to music and artists on which we founded the company. As we enter our 25th year of The Syndicate, we can’t wait for what’s on the horizon.”
Rothenberg added, “It’s an immense honor to be named Partner at The Syndicate, a company I’ve been privileged to grow with over the past 18 years. Starting as a college radio promoter back in 2004, I’ve been able to watch The Syndicate evolve into the unique agency it’s become today. I’m extremely excited to work even more closely with Jon, Tracey, and Chris while continuing to lead our incredible staff in moving culture forward and helping our clients achieve their most creative goals.”
Jackie Augustus joined Spotify‘s artist partnerships team to lead country and folk artist partnerships for the streamer. Augustus, who was named to Billboard‘s Country Power Players list in 2022, most recently served as strategic partner manager of music at Instagram.
Chris Schuler was named vp of promotion at Capitol Records Nashville where he will lead the promotion team previously headed up by Bobby Young. He most recently served as vp of promotion at Arista Nashville. Schuler can be reached at chris.schuler@umusic.com.
Sherry Lansing was designated chairman of the board on Universal Music Group‘s board of directors, effective Jan. 10. Lansing, a retired film studio executive who previously served as CEO at Paramount Pictures and president of production at 20th Century Fox, succeeds Judy Craymer, who retired from the position to focus on her film and theater production projects.
Jitze de Raaff was appointed president of CTM Entertainment, effective Jan. 1. He was previously managing director of CTM Publishing and Music in the Benelux region. De Raaff, also co-shareholder of the company, will now be responsible for all other CTM activities in addition to music. He will additionally play a bigger role in the company’s international expansion alongside CTM CEO André de Raaff. He can be reached at Jitze.deRaaff@ctm.nl.
BMG appointed Stefan Lehmkuhl programmer for Berlin’s historic 1,700-seat Theater des Westens, which the company announced it had leased for two years last September. Lemkuhl has curated and produced music events including Melt Festival and Lollapalooza Berlin for two decades. He will be joined by event producer Parker “Pansy” Tilghman.
Randy Reyes was promoted to senior director of rhythmic promotion at Atlantic Records. Reyes has worked in rhythmic and pop mix show promotion at the label for the past nine years.
Tvg hospitality, founded by Ben Lovett of Mumford & Sons, named Jayne Davis COO and Katie Millar gm of the Orion Amphitheater. The New York-based Davis arrives from OTG Management where she served as senior vp of operations development, while Millar previously served as manager at Paramount Fine Foods Centre & Living Arts Centre in Mississauga, Ontario, Canada.
James Ainscough was appointed to the role of CEO at the Royal Albert Hall, where he will lead the execution of the venue’s post-pandemic business plan; he previously worked at the Hall from 2008 to 2017 as director of finance and administration and then as COO. He joins in late spring 2023 from the charity Help Musicians, where he currently serves as CEO. Ainscough replaces Craig Hassall, who stepped down from the CEO role last month. COO Dan Freeman will continue serving as interim CEO until Ainscough officially joins.
Mandy McCormack was named executive vp/marketing & partner strategy for Trisha Yearwood, Inc. In her enhanced role as part of Yearwood’s management team, McCormack will manage brand partnerships, oversee marketing plans, seek out new business ventures and provide strategic consultation in all aspects of the country star’s business. McCormack most recently served as senior vp of radio promotion & marketing/artist strategy at Garth Brooks’ Pearl Records and Team TY (Trisha Yearwood). McCormack can be reached at mandy@trishayearwoodinc.com.
Tristra Newyear Yeager was named chief strategy officer at music/tech PR firm Rock Paper Scissors (RPS), while Travis Feaster was named new business manager at the company. Newyear Yeager, who has been with RPS for 17 years, was previously director of strategy and will now oversee PR and client services and guide strategic planning at the firm. Feaster was most recently national sales manager at Boutique Amps Distribution.
Jayne Hamblin was named manager of management and records at Creative Nation, where she will oversee the day-to-day responsibilities for Creative Nation’s artist clients while serving as a liaison between them and outside partners. Hamblin can be reached at jayne@creativenationmusic.com.
Dr. Dre is selling a bundle of music income streams and some owned music assets in a deal that was seeking $250 million when it came to market, according to sources. Those assets, which generate almost $10 million in annual income, are being acquired, apparently in two separate deals, by Shamrock Holdings and Universal Music Group. Both deals are said to be close to completion and were shopped by Peter Paterno, name partner in King, Holmes, Paterno & Soriano, sources say.
The assets include mainly passive income streams, according to those sources, such as artist royalties from two of his solo albums and his share of N.W.A. artist royalties; his producer royalties; and the writer’s share of his song catalog where he doesn’t own publishing, which may include the writer’s share of songs on his The Chronic album, which is published by Sony Music Publishing. Sources say that portion of the bundle comprises 75% to 90% of the package’s revenue and is most likely being acquired by Shamrock, which owns some Taylor Swift master recordings, among other past acquisitions. The remaining 10% to 25% of income in the package is generated by owned assets and is probably being acquired by Universal Music Group.
The latter Dre-owned assets that are said to be headed to UMG include the ownership of the master recording of his first solo album, The Chronic, which is scheduled to revert from Death Row Entertainment to Dre in August of this year; his share of an Aftermath/Interscope joint venture with the Top Dawg label for Kendrick Lamar releases through that deal; and maybe some publishing, though it’s unclear exactly which portion of his song catalogs is included. The bundle of offered assets doesn’t, however, include his ownership stake in the Aftermath label, which he co-owns with UMG’s Interscope.
The way the assets are being divided in the sale process fits with each buyer’s strategic profile. Shamrock, as a financial player, is much more interested in income streams and hopefully incremental valuations down the line. UMG, as an industry strategic player, is more interested in owning music assets than in buying passive income streams controlled through ownership or administration by competitors. Plus, ownership of Dr. Dre assets would give UMG the added bonus of enjoying a closer relationship with the rapper/producer, who — along with his co-ownership in Aftermath — has been on Interscope Records for most of his solo career.
While the sellers were seeking $250 million, sources suggest that the combined payments likely fell short but will collectively bring in upwards of $200 million, which would imply a 20-times multiple. But not all of the pieces of the bundle individually carry that type of multiple. Some of the Dre assets could be trading hands at a lower multiple.
UMG declined to comment while representatives from Dr. Dre’s camp and Shamrock Holdings could not be reached for comment.
Dr. Dre is one of the pre-eminent producers of his generation, as well as a rapper and songwriter who has worked with some of the most iconic R&B and hip-hop artists of all time, including Snoop Dogg, Eminem, 2Pac, Mary J. Blige, Busta Rhymes, 50 Cent and Lamar. He initially rose to fame as a co-founder of seminal gangsta rap group N.W.A in the 1980s, before releasing his first solo album, The Chronic, in 1992, which is widely regarded as one of the best hip-hop albums of all time and ushered in the West Coast G-Funk movement that helped to popularize the sampling of 1970s and 1980s funk music by the likes of Parliament, Funkadelic and Ohio Players. That album was released under Death Row Entertainment, the pioneering hip-hop label Dre co-founded with Suge Knight that would rise to fame with releases by Dre, Snoop Dogg, Tha Dogg Pound and 2Pac, who became the label’s marquee artist.
Dre would later found Aftermath Entertainment, his own imprint through Interscope, through which he would sign Eminem, 50 Cent, Lamar and Anderson .Paak, among others. In 1999 he released the followup to The Chronic, titled 2001, which was similarly celebrated, with star turns from Snoop Dogg, Eminem, Nate Dogg, Kurupt, Xzibit and others. In 2015, the famously perfectionist Dre would release his third album, Compton, a companion to the N.W.A biopic Straight Outta Compton, which was also released that year. As a solo artist, his three studio albums have amassed close to 20 million album consumption units, with 2001 at 11 million units and The Chronic at 6.6 million units. On an annual basis, those albums have averaged about 600,000 units over the last three years.
Dre also co-founded Beats Electronics alongside Interscope co-founder Jimmy Iovine in 2006, initially as a headphone brand. In 2014, the company morphed into a streaming service, Beats Audio, as well. The company was subsequently purchased by Apple later that year for north of $3 billion, turning Dre into a billionaire, while the Beats Audio streaming service became the backbone of what became the Apple Music streaming service, which was officially introduced in 2015. In subsequent years, Dre and Iovine donated $70 million to the University of Southern California, endowing a program that became the USC Jimmy Iovine and Andre Young Academy for Arts, Technology and the Business of Innovation. Lately, his production has appeared on releases by Anderson .Paak, Eminem and DJ Khaled.
With Dre coming to market and having found a buyer, the deal marks an acceleration of a run on hip-hop/rap assets kicked off by the acquisition of music assets owned by Future and production songwriter duo Andre Harris and Vidal Davis, better known as Dre & Vidal, in groundbreaking deals that finally brought private equity into the R&B/hip-hop/rap world. Future’s assets were acquired by Influence Media Partners, while the latter duo’s assets were purchased by HarbourView Equity Partners. Up until those deals, private equity had been primarily interested in classic rock, country or current mainstream pop music.
Dr. Dre has been in the news lately after his lawyers called out Rep. Marjorie Taylor Green for using his song “Still D.R.E.” in a video posted to social media without permission. A cease and desist letter signed by Howard King of King, Holmes, Paterno & Soriano LLP informs the Congresswoman that Dre “ will never grant [Taylor Greene] permission to broadcast or disseminate any of his music.” While Dre appears to be selling a large portion of his music rights, that doesn’t mean that the Congresswoman may eventually be able to license his music from some other owner. When such deals are being done, an artist or songwriter might want to retain some control over song use approval rights, though that could result in a discount to a deal’s valuation.
Dan Rys provided assistance in preparing this story.
With 2022 now officially in the books, the U.S. market share report is in: with Bad Bunny, Lil Nas X and Harry Styles leading the way, it was a banner year for Sony Music, as it gained in both overall market share and, more drastically, in current market share on the leading Universal Music Group, narrowing the gap among releases less than 18 months old to 6.58% in 2022 — a chasm that stood at 13.7% at the end of 2021.
But there was good news for UMG, too, as Republic Records rode a red-hot fourth quarter — led by Taylor Swift’s Midnights, the No. 2 album of all of 2022 despite only being released in October — to rank No. 1 among labels in current market share for the entirety of 2022, coming in at 10.38%. That makes it the only label to top double digits in the final ranking of the year. And UMG maintained a double-digit lead in overall market share over second-place Sony, leading 37.54% to 26.87% despite the latter’s gains throughout the year. Interscope Geffen A&M finished the year as the No. 1 label in overall market share once again, coming in at 9.63%, though it was down from the 10.08% share it held at the end of 2021.
Sony’s overall market share grew 0.76% year over year — up to 26.87% in 2022 from 26.11% in 2021 — marking a big stride forward for the music group. That gain was largely at the expense of Universal Music Group, which dropped 0.66% year over year, from 38.20% in 2021 to 37.54% at the end of 2022. Meanwhile, Warner Music Group’s market share grew from 16.06% in 2021 to 19.05% in 2022, though that is not an apples-to-apples comparison; this year, Warner-owned distributor ADA — which distributes dozens of independent labels — was factored into WMG’s market share, adding 2.96% to its total and accounting for almost all of Warner’s jump. (The move more accurately aligns Warner’s distributed market share with the other majors, which also include their distribution wings in their totals.) That switch also explains the commensurate dip for the indie sector, which fell from 19.63% in 2021 to 16.54% in 2022.
In current market share, Universal fell more than 4%, from 37.89% in 2021 to 33.57% in 2022, with all three other major players picking up that slack, led by Sony, which ballooned significantly almost 3 percentage points to 26.99% in 2022 — up from 24.19% in 2021. Warner — even taking into account the 3.32% in current share added by ADA — was also up, from 14.42% in 2021 to 18.30% in 2022 (an increase of 0.56% beyond the ADA bump), while the indie sector went from 23.50% last year to 21.14% in 2022, which is up 0.96% year over year when taking into account the loss of the ADA labels. Universal did, however, raise its catalog percentage from 38.33% in 2021 to 38.94% in 2022, while the other three all fell slightly.
Following Interscope in overall market share, Atlantic remained in second, at 8.89%, although it, too, was down slightly from 2021, when it posted a 9.17% overall share of the market. Republic ended the year in third — the only label in the top five to grow its overall market share year over year — with an 8.44% mark, up from 8.28% through the end of 2021, while Columbia (6.98%) and Capitol Music Group (6.40%) rounded out the top five. (A note on these labels: Interscope’s market share includes Verve [0.85%]; Atlantic’s includes the now-combined 300 Elektra Entertainment Group [2.35%], which would have been good enough for ninth place on its own; Republic’s includes Island [1.51%], Cash Money [0.71%], Big Loud, Imperial and Mercury; Columbia includes some indie labels from distributor RED; and Capitol includes Virgin [1.78%], Motown/Quality Control [1.05%], Capitol Christian Music Group [0.61%], Astralwerks and Blue Note.)
In sixth, Warner Records — which includes Rhino, Warner Latin and a chunk of Warner Nashville in its market share — grew year over year, from 6.16% in 2021 to 6.35% in 2022, having steadily increased its share each quarter of the year. RCA, whose market share stands alone, did the same; the label came in seventh, growing in each quarter to a finish of 5.12% — up from 4.89% in 2021 — wrapping the year strongly with the four-week No. 1 run of SZA’s S.O.S. In eighth, Epic Records also picked up market share, rising to 2.63% in 2022 from a 2.38% share in 2021. Def Jam, in ninth, faltered to 2.07%, down from 2.25% in 2021; while Sony Nashville jumped into 10th, leapfrogging UMG Nashville by growing its market share from 1.99% to 2.04% year over year.
UMG Nashville dropped to 11th, slipping from 2.04% in 2021 to 1.85% in 2022, while Concord jumped from 13th (1.68%) in 2021 to 12th (1.73%) in 2022. Disney — with its early-year Encanto boost — was up to 1.60% in 2022 from 1.40% the year before, good for 13th, while Universal Latin (1.47%) and Sony Latin (1.24%) rounded out the top 15, both up from the year prior as well.
Republic had a big fourth quarter (9.57%), with four major releases — Stray Kids’ Maxident, Swift’s Midnights, Drake and 21 Savage’s Her Loss and Metro Boomin’s Heroes & Villains, all of which debuted at No. 1 on the Billboard 200 — collectively topping the Billboard 200 for eight weeks. That helped boost its current market share from 8.77% through the first three quarters of the year to 10.38% by year’s end, with that late push taking it to No. 1 among all labels in terms of current market share in 2022.
Atlantic, in second place in current share, essentially maintained its level from last year, coming in at 9.15% (from 9.16% in 2021), though it moved up one spot from third place; while Interscope dropped sharply, from a stellar 11.05% in 2021 to 8.72% in 2022, falling from first to third. Columbia and Capitol, in fourth and fifth, respectively, both fell in share, the former from 6.83% to 6.67% and the latter from 5.64% to 4.97%; while Warner and RCA, in sixth and seventh, both grew in share, the former from 4.48% to 4.86% and the latter from 4.37% to 4.65%.
Outside the top seven labels, there was a bigger shakeup in current market share. Epic Records moved up to eighth place, gaining from a 2.04% current share in 2021 to 2.23% in 2022, while Sony Nashville jumped up to ninth, growing to 1.89% from 1.59% in 2021. Alamo made the biggest leap, all the way up to 10th in current share in 2021 at 1.56% in its first full year as a standalone Sony Music label; in 2021, its share was split between UMG and Sony as it was sold midway through the year, making an apples-to-apples comparison difficult. BMG, in 11th, held steady at 1.42%, while Disney, perhaps unsurprisingly, surged into 12th, up to 1.36% year over year from 0.52% in 2021. Def Jam, however, saw its current share sink from 2.21% in 2021 to 1.27% in 2022, finishing 13th, while Sony Latin (1.24%) and UMG Nashville (1.23%) rounded out the top 15.
As is generally the case, catalog market share tracked similarly to overall market share, as older titles generally perform consistently as a percentage of the market year over year. But both UMG and the indie sector grew year over year, while Sony and Warner, the latter accounting for the ADA switch, were both down slightly as well.
Universal Music Group chairman/CEO Lucian Grainge has sent out his annual New Year’s memo to staff at UMG, within which he touted several of the wins — both artistically, but also culturally and socially — that the world’s largest music company achieved in the past year. But he also laid out several issues that he feels have arisen in the decade-plus since streaming was introduced and began to take over the music industry, and called for an “updated model” for the business that will be “an innovative, ‘artist-centric’ model that values all subscribers and rewards the music they love.”
Grainge, who just guided UMG through its first full year as a public company, touted the advances that UMG’s Task Force for Meaningful Change and other community efforts made around the world, including helping artists with health insurance through a partnership with Music Health Alliance and, through various initiatives, contributing to 500 organizations around the world. He also highlighted chart successes on all platforms, including the Billboard charts in the U.S. and in countries like Japan, China and the U.K., and UMG’s role in ushering in immersive and spatial audio, which has grown significantly in the past year.
But he also sought to position UMG as the lead innovator in the music business globally, particularly in a time of growth for the business in which “bad actors” have come in to take advantage of that growth.
“Unlike so many other players in the music world, especially the newer ones, UMG can never be regarded as merely a ‘checkbook and distribution’ company,” Grainge wrote. “Nor are we some convoluted financial instrument that seeks to exploit the recent growth in our industry. No, we are different. Very different. Because for all of us at UMG, music and the artists who create that music comprise our very raison d’être. It’s what gets us up in the morning.”
While championing the company for helping usher in the streaming era, he also attacked the ecosystem that streaming has created. “Today, some platforms are adding 100,000 tracks per day,” he added. “And with such a vast and unnavigable number of tracks flooding the platforms, consumers are increasingly being guided by algorithms to lower-quality functional content that in some cases can barely pass for ‘music.’ … For example, just witness the thousands and thousands of 31-second track uploads of sound files whose sole purpose is to game the system and divert royalties. The result? A less fulfilling experience for the consumer, diminished compensation flowing to artists that are driving the business models of the platforms, and fewer cultural moments that fans can collectively share, all of which undermines the creativity and development of artists and their music that the platforms were, in part, designed to foster.”
After pointing out those issues, Grainge then called for change — change that he didn’t specify, but that he says will be “absolutely essential to promote a healthier, more competitive music ecosystem, one in which great music, no matter where it’s from, is easily and clearly accessible for fans to discover and enjoy. An environment where great music is not drowned in an ocean of noise. And one where the creators of all music content, whether in the form of audio or short-form video are fairly compensated.”
That, he says, will be one of the main goals for UMG in this coming year.
“[W]e need an updated model,” Grainge wrote. “Not one that pits artists of one genre against artists of another or major label artists against indie or DIY artists. We need a model that supports all artists — DIY, indie and major. An innovative, ‘artist-centric’ model that values all subscribers and rewards the music they love. A model that will be a win for artists, fans, and labels alike, and, at the same time, also enhances the value proposition of the platforms themselves, accelerating subscriber growth, and better monetizing fandom.”
Read Grainge’s entire memo below:
Dear Colleagues,
Happy New Year! I wanted to write to you to welcome you back and as promised, give you my thoughts about the year ahead. It’s hard to believe that just a little more than a year ago, UMG became a freestanding public company. It was a watershed moment in our history. And yet, in some ways, when it comes to what we do every day, we just kept doing what we’ve always done: bring great artists and their music to the world; break performance records of all kinds everywhere; and drive the industry forward though creativity, strategic investments and innovation.
And that’s exactly what we plan to do this year.
Now, with 2022 in the rearview mirror, I’d like to share with you a few thoughts about what was an extraordinary year for UMG and also express my gratitude to all of you for making the year so remarkable. I’ll have something to say as well about the very real challenges and opportunities that lie ahead for us in 2023, but first let’s take a brief victory lap to reflect on what we achieved last year.
Beginning with some accomplishments I’m particularly proud of, here are just a few examples of how, once again, you and our artists showed up big time to make our communities stronger and help those in need:
— Serving more than 20,000 meals around the world;— Building community gardens throughout the US, Europe and Australasia;— Working on vital education campaigns with organizations such as Mental Health Coalition; and— Extending our programs to benefit our artists past and present including assisting hundreds of artists in saving millions of dollars in healthcare costs through our partnership with Music Health Alliance in the U.S.
And our company’s Task Force for Meaningful Change continued its groundbreaking work in a variety of ways: funding programs to mentor the next generation of Black artists and Black music industry executives; fighting for criminal justice reforms; investing in community violence intervention programs and policy organizations; partnering with HBCU medical schools to widen the Black practitioner pipeline; and helping turn out the vote in the U.S. elections by providing more than 13,000 rides to and from the polls. Between the TFMC, our All Together Now Foundation, and our Employee Matching Program, we have contributed to more than 500 organizations in 2022 alone.
On the charts, the performance of our artists and songwriters remained stellar. So many artists from around the world contributed to 2022’s success, with standout performances from: Taylor Swift; Olivia Rodrigo; The Weeknd; The Beatles, Kendrick Lamar; Drake; BTS; Karol G; Luciano; Angèle; Glass Animals; Imagine Dragons; Rammstein; Helene Fischer; ABBA; Ado; Elton John; Eminem; Justin Bieber; King & Prince; Lil Baby; Billie Eilish; among many many others. Here are some examples:
— On Spotify: UMG had four of the Top 5 Artists globally; four of the Top 5 in the U.S.; 7 of the Top 10 in Germany and Italy, including No. 1s in both countries; and the top female artist in France;— On Apple Music: Universal Music Publishing Group had writer-interests in 9 of the Top 10 most-streamed songs globally;— On YouTube: UMG had 7 of the Top 10 Songs in the U.S.;— On Billboard: We had the No. 1 Song on the Hot 100 year-end chart and 7 of the Top 10 Albums;— On Deezer: UMG had the Top 2 Artists globally, and 5 of the Top 10;— In Germany: The Top 4 Albums and the Top 3 Singles;— In the U.K.: 6 of the Top 10 artists including No. 1;— In Japan: The No. 1 Artist on Billboard’s Year-end Chart;— On Vevo: The No. 1 Global Artist— And finally, in China: Eason Chan’s “Gu Yong Zhe” (“The Lone Warrior”), became the most-streamed song in UMG China’s history after topping the charts on all major streaming platforms.
All that — and so much more — didn’t just “happen.” To achieve such astonishing success for both developing and established artists, and to do so year after year, in every conceivable genre, often in regions beyond their home countries, is no accident. UMG’s unique artist-centric culture accounts for that repeated success and is at the heart of our company’s two-fold mission.
Our first, simplest, and yet most difficult imperative is to discover and break new artists and then sustain their careers over the long run. Unlike so many other players in the music world, especially the newer ones, UMG can never be regarded as merely a “checkbook and distribution” company. Nor are we some convoluted financial instrument that seeks to exploit the recent growth in our industry. No, we are different. Very different. Because for all of us at UMG, music and the artists who create that music comprise our very raison d’être. It’s what gets us up in the morning.
The second part of our mission is to promote a healthy, sustainable and exciting music ecosystem in which our artists can thrive for years and decades to come. We fulfill that goal by using our ingenuity to drive the music industry forward as technology and the world around us keep changing. That is why, even as we diligently work, day-in and day-out, to break our artists and songwriters, we’re also pursuing unexplored avenues of creative and commercial possibilities and, whenever appropriate, taking the necessary steps to turn those possibilities into reality.
One powerful example of one of those possibilities becoming reality: immersive or ‘spatial’ audio. Seven years ago, we embarked on a journey to evolve the music listening experience. We approached Dolby with a proposal: if our two companies worked together, we could develop a new format that envelops the listener into a 360-degree immersive environment that provides artists with a broader creative palette on which to express themselves. We believed that this could be one of the most important developments in the recorded music listening experience in decades.
An advance as significant as immersive audio was no easy feat. It required years of investment and innovation. Much more. We built state-of-the-art recording suites within our network of iconic studios — Capitol Studios in L.A. and Abbey Road Studios in London, to name just two. We trained some of the world’s top engineers in how to make the best use of the format. And we conducted an extensive campaign to educate artists and artist estates about the limitless creative opportunities that immersive audio provides.
We’re already seeing the results. Nearly half of UMG’s streaming consumption and 80% of our top-50 streaming artists’ music are available in immersive (or Atmos) versions.
Who benefits from this landmark innovation? For starters, artists, of course. And by “artists,” I mean all artists, not just UMG’s. Thanks to our efforts, the entire industry has been releasing more and more music in immersive audio. And many platforms — including Apple Music, Tidal and Amazon Music — are offering this far superior experience to the other beneficiaries of immersive audio: music fans. Millions and millions of them around the world. And they simply can’t get enough.
This year fans will get even more. I am confident that we will see significant global growth in the availability of immersive audio as more and more automobile and device manufacturers introduce new products designed to deliver this greatly enhanced musical experience.
Looking beyond the expansion of immersive audio, our determination to drive change will only accelerate this year. Just as we’ve done so successfully in the past, we’re putting in place the strategies and resources to lead through every significant technological advance on the horizon. And each such advance — from web3 and the metaverse, to new applications for health and wellness and medical music delivery — will enable us to connect directly to consumers in ways that were unimaginable just a few years ago and deliver significant long-term value to those fans, as well as to our artists, our employees and our shareholders.
That’s exactly the pioneering approach we took at the advent of streaming. Early on, we saw the potential inherent in streaming and subscription and jumped right in. Though it seems like only yesterday that we were working with Spotify to enable their U.S. launch, that “yesterday” was way back in 2011. While other companies were trying to hold their ground even as that ground was shifting beneath their feet, UMG leaned into what was the most profound business model shift the industry had ever seen, redesigning our global organization, becoming the first to adapt to and then thrive in the streaming era.
But if history teaches us anything, it is this: every blazingly transformative technological development inevitably creates new challenges for us to confront. So, it’s no surprise that after almost a dozen years of fundamentally transforming the music business, the manner in which music is presented and consumed on streaming platforms has itself evolved. And while that evolution has created enormous opportunities and benefits for artists and consumers — reflected in increased listening diversity that initially comes with adoption of subscription — it has also created byproducts that are increasingly confusing and unfulfilling for them as the volume of noise in the marketplace has increased. Today, some platforms are adding 100,000 tracks per day. And with such a vast and unnavigable number of tracks flooding the platforms, consumers are increasingly being guided by algorithms to lower-quality functional content that in some cases can barely pass for “music.”
Let me explain. In order to entice consumers to subscribe, platforms naturally exploit the music of those artists who have large and passionate fan bases. But then, once those fans have subscribed, consumers are often guided by algorithms to generic music that lacks a meaningful artistic context, is less expensive for the platform to license or, in some cases, has been commissioned directly by the platform. For example, just witness the thousands and thousands of 31-second track uploads of sound files whose sole purpose is to game the system and divert royalties. The result? A less fulfilling experience for the consumer, diminished compensation flowing to artists that are driving the business models of the platforms, and fewer cultural moments that fans can collectively share, all of which undermines the creativity and development of artists and their music that the platforms were, in part, designed to foster.
While this unsatisfying situation is discouraging, it’s not surprising. Now that the industry is growing again — in large part as a result of UMG’s strategy, investments and innovation — new players as well as some bad actors who do not share our commitment to artists and artistry have been swooping into the reinvigorated industry.
In the past, music industry conflict was often focused on ‘the majors versus the indies.’ Today, however, the real divide is between those committed to investing in artists and artist development versus those committed to gaming the system through quantity over quality. The current environment has attracted players who see an economic opportunity in flooding platforms with all sorts of irrelevant content that deprives both artists and labels from the compensation they deserve.
What’s become clear to us and to so many artists and songwriters — developing and established ones alike — is that the economic model for streaming needs to evolve. As technology advances and platforms evolve, it’s not surprising that there’s also a need for business model innovation to keep pace with change. There is a growing disconnect between, on the one hand, the devotion to those artists whom fans value and seek to support and, on the other, the way subscription fees are paid by the platforms. Under the current model, the critical contributions of too many artists, as well as the engagement of too many fans, are undervalued.
Therefore, to correct this imbalance, we need an updated model. Not one that pits artists of one genre against artists of another or major label artists against indie or DIY artists. We need a model that supports all artists — DIY, indie and major. An innovative, “artist-centric” model that values all subscribers and rewards the music they love. A model that will be a win for artists, fans and labels alike, and, at the same time, also enhances the value proposition of the platforms themselves, accelerating subscriber growth, and better monetizing fandom.
Along with many others in the music world, we share deeply held principles about the value of artistry and the artist-fan relationship. This year, we will be working on the innovation that is absolutely essential to promote a healthier, more competitive music ecosystem, one in which great music, no matter where it’s from, is easily and clearly accessible for fans to discover and enjoy. An environment where great music is not drowned in an ocean of noise. And one where the creators of all music content, whether in the form of audio or short-form video are fairly compensated.
Achieving such a profound change will present challenges as well as opportunities. I’m confident, however, that our long and deep involvement with music and artists will enable us to safely and profitably navigate our way forward through the industry’s next big shift.
I’m looking forward to being on this journey with all of you!
Our past is prologue to a future where the solutions we find and the steps we take to implement them will contribute to another era of growth for UMG and the industry at large. I believe there is no better team anywhere than the one we have right here at UMG.
Thank you once again for incredible 2022 in which our artists and our company achieved remarkable things.
I am immensely proud of all of you.
I’m excited for what will be an eventful and prosperous 2023.
Lucian
Madrid is hosting the first UMusic Hotel, a venture that aims to become an entertainment hub in the heart of the capital of Spain. Co-created by Universal Music Group and Dakia Entertainment Hospitality Group, the hotel is located inside the historic Albéniz Theater building, just a few steps from downtown tourist sites such as Puerta del Sol and Plaza Mayor.
The hotel opened on Nov. 14, 2022 at a 60% capacity and is now fully operating, with Antonio Banderas‘ take on the musical Company showing at the theater until Feb. 14. Next, Spanish singer-songwriter David Bisbal will take the stage for 20 days between March and April as part of the celebrations of his 20th music career anniversary.
The Albéniz Theater was inaugurated in 1945 and was in operation for more than 60 years until it closed its doors in 2009, when its owners wanted to demolish it and build a luxury residential building in its place. A group of citizens came together to create the Albéniz Theater Aid Platform and asked for it to be declared an Asset of Cultural Interest to prevent its demolition, which was finally granted in 2016. This allowed the 898-seat venue to be rehabilitated, and negotiations began for what is now the UMusic Hotel Madrid.
UMusic Hotels is a new international brand that offers first-class accommodations and entertainment. The goal is to create a unique experience for both guests and artists staying at their hotels, and to offer a wide range of music-related services and activities.
Music is in every corner of UMusic Hotel Madrid. Details such as the “Pasillo de la Música” (Hall of Music) — which connects the two buildings that make up the venue, and where you can see works of musicians such as Freddie Mercury, Lady Gaga, Alejandro Sanz and Katy Perry created by the Mexican artist and athlete Hubertus de Hohenlohe — is magical. Upon entering the access foyer located on Carretas Street, visitors are greeted by a neon sign that says, “Vente Pa’ Madrid” (Come to Madrid,) like the famous Ketama song, a cheerful welcoming. On one wall is a verse from Bob Dylan’s classic “Mr. Tambourine Man.”
The hotel has 130 rooms divided into four categories: classic, deluxe, premium and ultimate, all equipped with Nespresso coffee machines and Marshall speakers. There’s also the Artist’s Suite, an exclusive two-floor room with a private solarium terrace, living room and guest bathroom.
Guests can enjoy a vinyl library, gym, bar, amphitheater, outdoor pool, three meeting rooms, a two-level solarium, events spaces, a gastronomic experience at El Albéniz restaurant, 24-hour room service, and the Nota Alta (High Note) bar, located on the rooftop with a lovely city view.
Universal Music Spain has said it will keep working with the hotel to continue attracting top international stars to Madrid. UMusic Hotel confirmed that it is already working on the development of a second hotel, this time in South America, in Barranquilla, Colombia.
Universal Music Group is suing Triller over allegations that the video-sharing app has failed to make payments for months under its music licensing agreements, echoing accusations made by Sony Music Entertainment in a similar lawsuit last year.
In a complaint filed Thursday (Jan. 6) in Los Angeles court, the music giant’s publishing arm claimed that Triller stopped making payments in April 2022 under two different licensing deals and had missed several required payments since.
Universal says it filed a notice of default in November and terminated the deal earlier this week, but that Triller has still not paid the money it owes — despite allegedly spending plenty of cash elsewhere.
“During the same period that Triller was defaulting on its payment and reporting obligations, it was reported that Triller was spending substantial amounts of money acquiring companies … and throwing lavish events catering to members of the media and entertainment industry,” the company wrote.
Universal says Triller has also breached provisions that require the company to report how the music has been used on the platform. Combined with the lack of payment, Universal cited the breaches as cause to terminate the licensing contract, effective Jan. 3.
In a statement to Billboard, Triller downplayed the seriousness of the case, saying it dealt with only “a very small percentage of the catalogue, and is the ordinary course of business for the music industry and over a small amount of money.”
“This will be decided upon in a proper venue in a few years, and we clearly believe we are in the right and that a court will find in our favor,” Triller wrote in the statement. “It’s a plain vanilla case that virtually every social network has faced in one form or another. It’s not the first and won’t be the last but similar to the past disputes of these nature they tend to settle quietly and end up being a lot to do about nothing .”
The lawsuit is the latest recent legal trouble for Triller. Sony filed a similar case in August, saying it had terminated its licensing deal with the company after months of non-payment. That case, filed in federal court, claimed that Triller had continued to use Sony music without a license — meaning it had also infringed Sony’s copyrights. The case remains pending.
Before that, Triller got into a messy fight with Swizz Beatz and Timbaland, who sued in August over allegations that they were still owed $28 million from the sale of their Verzuz livestream series to Triller. The company was sued again later that month by a smartphone app consulting firm, which claimed the company had failed to pay more than $100,000 in fees. Both cases were quickly settled on confidential terms.
It’s also not the first sign of problems between Triller and Universal. In early 2021, the music giant abruptly pulled its catalog from the platform, claiming Triller had “shamefully withheld” artist payments. Three months later, the two companies announced a new worldwide licensing agreement, spanning recorded music and publishing and restoring the UMG catalog to the app. But in December, UMG was one of several major music companies to again be pulled down from the platform.