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The music business has earned a reputation for being recession-proof. In bad economic times, people still pay for their music subscription services and want to go to concerts. Some synch opportunities may dry up as advertisers make cutbacks, but overall, the music is a hearty business that doesn’t follow typical economic cycles.
Music business stocks, however, aren’t immune to fluctuations in the market and investors’ worries about the increasingly fragile state of the economy. This week, just three of the 20 companies on the Billboard Global Music Index (BGMI) finished with gains, and five stocks had losses in excess of 10%. Despite a host of strong quarterly earnings results in recent weeks, President Donald Trump’s tariffs on goods from Canada, Mexico, China and Europe have caused markets to panic, taking down music stocks along with the industrial and agricultural companies most likely to be affected.
The S&P 500 entered correction territory on Thursday (March 13) when it closed down 10% from the all-time high. The Russell 2000, an index of small companies, was down 18.4% from its peak. Most stocks improved on Friday (March 14) as markets rallied — despite a decline in the University of Michigan’s consumer confidence index — but the first four days of the week were too much to overcome. The S&P 500 finished the week down 2.3% and the Nasdaq composite closed down 2.4%.
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Markets outside of the U.S. fared better than U.S. markets. The U.K.’s FTSE 100 dropped just 0.5%. South Korea’s KOSPI composite index rose 0.1% and China’s SSE Composite Index improved 1.4%.
Even though 17 of the 20 companies on the BGMI posted losses this week, the index rose 0.5% to 2,460.71 because of Spotify’s 8.1% gain, and the dollar’s nearly 1% increase against the euro offset the weekly declines of 17 other stocks. Spotify is the BGMI’s largest component with a market capitalization of approximately $117 billion — more than twice that of Universal Music Group’s (UMG’s) $50.2 billion. The stock also received rare good news this week as Redburn Atlantic initiated coverage of Spotify with a $545 price target (which implies 5.5% upside from Friday’s closing price) and a neutral rating.
UMG shares fell 8.8% on Friday, a reaction to Pershing Square’s announcement on Thursday that it will sell 50 million shares worth approximately $1.5 billion. Pershing Square CEO Bill Ackman called UMG “one of the best businesses we have ever owned.” JP Morgan analyst Daniel Kerven admitted the news was “a near-term negative for confidence” in UMG but saw Pershing Square’s decision to sell shares as a move to take profits and re-weigh its portfolio (UMG was 27% of Pershing Square’s holdings) rather than a commentary about UMG’s long-term potential or recent operating performance. UMG shares ended the week down 8.2% to 25.46 euros ($27.78) but remained up 6.5% year to date.
Live Nation shares dropped 6.5% to $119.22, marking the stock’s fourth consecutive weekly decline. During the week, Deutsche Bank increased its Live Nation price target to $170 from $150 and maintained its “buy” rating. On Friday, a judge denied Live Nation’s request to dismiss an accusation that the promoter illegally forced artists to use its promotion business if they wanted to perform in its amphitheaters.
Other U.S.-based live entertainment companies also fell sharply. Sphere Entertainment Co. fell 10.1% to $31.55. MSG Entertainment dropped 1.3% to $31.46 despite Wolfe Research upgrading the stock to “outperform” from “peer perform” with a $46 price target. Vivid Seats, a secondary ticketing platform, fell 28.1% to $2.86 after the company announced fourth-quarter earnings.
Radio companies, which tend to suffer when economic uncertainty causes advertisers to pull back spending, had yet another down week. iHeartMedia fell 12.0% to $1.61. Cumulus Media dropped 11.5% to $0.46. And SiriusXM, which announced layoffs this week, fell 10.1% to $22.67. Year to date, iHeartMedia is down 24.4% and Cumulus Media is down 40.3%. SiriusXM, on the other hand, has gained 1.4% in 2025.
K-pop stocks also fell sharply despite South Korea’s market finishing the week with a small gain. HYBE, SM Entertainment, JYP Entertainment and YG Entertainment had an average decline of 7.4% for the week. Collectively, however, the four South Korean companies have had a strong start to 2025 and, after this week, had an average year-to-date gain of 19.3%.
Hedge fund Pershing Square Holdings is parting with 50 million shares of one of its most prized assets, Universal Music Group (UMG). The sale of 50 million shares — approximately 2.7% of UMG’s outstanding shares — on the Euronext Amsterdam exchange, at 26.60 euros ($28.97) to 27.90 euros ($30.28), according to Bloomberg, would gross between […]
Live Nation, Sphere Entertainment Co. and MSG Entertainment stocks fell this week as markets were hurt by fears about the impacts of U.S. tariffs, ongoing inflation and government layoffs.
Live Nation, which reported record full-year results on Feb. 20, dropped 11.0% to $127.51, erasing the stock’s entire year-to-date gain. Sphere Entertainment Co. dropped 18.8% to $35.45 following the company’s quarterly earnings on Monday (March 3). MSG Entertainment slipped 7.7% to $31.86.
U.S. stocks had their worst week in months. The Dow slipped 2.1%, the S&P 500 dropped 3.1% and the Nasdaq Composite fell 3.5%. In the U.K., the FTSE 100 dipped 1.5%.
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On Friday, Treasury Secretary Scott Bessent told CNBC that the U.S. economy would go through an adjustment period with less government spending. “The market and the economy have just become hooked,” he said. “We’ve become addicted to this government spending, and there’s going to be a detox period.”
Doubts about live music’s ability to sustain growth in the current economic climate were captured in a CFRA analyst’s note. “Live entertainment and exorbitant ticket prices have raised investor concerns whether record demand will recede with a rising household cost of living and lower consumer confidence,” analyst Kenneth Leon wrote in a March 5 note to investors.
Nevertheless, Leon maintained its $135 price target and upgraded Live Nation shares to “hold” from “sell.” The company, he added, “is a market leader in tickets and continues to fund large capital expenditures to expand its own venues.”
Sphere Entertainment Co. shares fell 13.6% on Monday (March 3), the day the company released quarterly earnings, and slipped another 6% through Friday (March 7). Revenue fell 2% to $308.3 million from the prior-year period, although revenue for the Sphere venue was up 1%. At the company’s MSG Networks division, revenue dropped 5% and its $34.2 million operating profit turned into a $35 million operating loss.
Numerous analysts made downward revisions to their Sphere models after the earnings release. Benchmark dropped its price target to $35 from $36. JP Morgan cut its price target to $54 from $57. And Seaport cut its earnings-per-share estimate for the current quarter to -$2.03 from -$1.66.
Other companies in the live entertainment space also declined. MSG Entertainment fell 7.7%, Vivid Seats dropped 3.9%, Eventbrite dipped 2.1% and German concert promoter CTS Eventim lost 0.6%. Many other companies that depend on consumer discretionary spending also fell this week, including Expedia Group (down 6.9%), Hyatt Hotels (down 3.7%) and cruise operator Carnival Corporation (down 13.7%).
The 20-company Billboard Global Music Index (BGMI) dropped for the third consecutive week, falling 6.3% to 2,449.61. Although the index is up 15.3% year to date, it has fallen 11.1% in the last three weeks. Most of the index’s most valuable companies were among the week’s winners. Other than Live Nation, none of the 13 stocks that lost ground are among the index’s most valuable companies — with one major exception.
Spotify, the BGMI’s largest single component, dropped 12.6% to $531.71, putting the stock 18.5% below its all-time high set on Feb. 13. With a market capitalization of roughly $105 billion, Spotify is large enough to influence the fortunes of an index that contains 19 other stocks. Despite having a few off weeks, however, Spotify is the best-performing music stock of the last year and has gained 14.0% year to date.
Universal Music Group (UMG) shares rose 6.8% on Friday following the company’s fourth-quarter earnings release on Thursday (March 6), though itended the week up just 3.3%. Warner Music Group appeared to benefit from investors’ enthusiasm about UMG’s earnings as its shares rose 2.0% to $34.39.
iHeartMedia CEO Bob Pittman caused his company’s stock to spike 23% on Thursday after an SEC filing revealed the executive purchased 200,000 shares. Investors noted the CEO’s optimism in his company’s future, and the stock ended a downward slide to finish the week up 3.4% to $1.83.
The week’s biggest gainer, Chinese music streaming company Tencent Music Entertainment (TME), rose 9.2% to $13.31. TME benefitted from a surge in Chinese stocks as comments made during the country’s parliamentary meetings this week fueled optimism that the government will provide stimulus for Chinese technology companies. The company will release fourth-quarter earnings on March 18.
Cumulus Media was the week’s biggest loser after dropping 27.8% to $0.52. The company revealed on Friday that it received a warning from the Nasdaq stock exchange that it faces a de-listing for failing to meet the minimum shareholders’ equity threshold of $10 million.
Get ready for a new era of innovation by streaming services. That was the message sent by Universal Music Group (UMG) chief digital officer Michael Nash during the company’s fourth quarter earnings call on Thursday (March 6), during which he noted that the label is currently in talks with all of its streaming partners — not just Spotify — about super-premium tiers.
“There’s a continuing wave of innovation that we’ve seen really transform our business and transform the digital landscape in particular, over the last decade, and we anticipate that that’s going to continue as the market grows,” said Nash.
Not that streaming services haven’t been innovating since day one. Listeners have enjoyed new ways to discover music (the growth of playlists, personalized listening and algorithm-driven radio stations), follow their favorite artists (album pre-saves) and view concert listings and lyrics. From 2011 to 2014, Spotify allowed developers (Rolling Stone, Billboard, Tunewiki and Songkick, among others) to build apps that lived inside its platform and utilized its song catalog. Services such as Tidal and Qobuz have made high-fidelity audio a part of their brand identities. And over the years, the types of subscription offerings expanded from individual plans to encompass family plans and affordable student options.
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But the type of innovation that Nash referenced is different. Except for high-fidelity audio, streaming innovations haven’t resulted in greater revenue per user — all the features packed into streaming services haven’t cost the consumers anything extra. That’s going to change. The next wave of music streaming will have products and services that carry higher prices. After decades of providing the same service to all customers, streaming platforms will segment the market and offer premium products to a subset of their subscribers.
Super-premium streaming is one component of what UMG calls “streaming 2.0.” On Thursday, CEO Lucian Grainge explained that streaming 2.0 “will build on the enormous scale we’ve achieved thus far in streaming’s initial stage. This next stage of streaming will see it evolve into a more sustainable and growing, artist centric ecosystem that improves monetization and delivers great experiences for fans.” Offering multiple tiers rather than a single subscription plan, Grainge said, “enabl[es] us to segment and capture customer value at higher than ever levels.”
Conversations about superfan offerings have extended as far as concert promotion and ticketing. Live Nation CEO Michael Rapino revealed during the company’s fourth-quarter earnings call that streaming services are interested in pre-sale ticket offers. “We’ve talked to them all about ideas on if they wanted inventory,” he revealed on the Feb. 20 call. “There’s a cost to that, and we would entertain and look at that option if it made sense for us in comparison to other options we have for that pre sell.”
Spotify is known to be working on a superfan product — CEO Daniel Ek revealed in February that he is testing an early version — but Nash suggested other streaming services could follow suit. “We’re in conversations with all of our partners about super-premium tiers,” he said. “We think this is going to be an important development for segmentation of the market.”
JP Morgan believes the customer segmentation that Nash referenced will be a component of UMG’s growth over the next 10 to 20 years. “In a streaming 1.0 world UMG was reliant on DSPs raising retail price rises if it was to benefit from a higher wholesale price; in a streaming 2.0 environment UMG has visibility on wholesale price rises that underpin its growth algorithm, while still having potential upside should DSPs raise prices above the minimum,” analysts wrote in a March 6 investor note.
UMG’s market research suggests that 20% of music subscribers are likely to pay for a superfan streaming product, according to Nash. If Spotify reaches that threshold, it will have converted roughly 53 million of its 263 million subscribers into higher-paying customers (as of Dec. 31). It’s already worked for at least one company outside the U.S., as Tencent Music Entertainment has already proven there’s demand for a high-priced, value-added streaming product: Its Super VIP tier, which costs five times the normal subscription rate, had 10 million subscribers at the end of September — over 8% of TME’s 119 million total subscribers. If other streamers can successfully follow suit, new superfan streaming products will generate more revenue for artists, rights owners and streaming platforms — and help the music business continue to grow for years to come.
Growth in recorded music, publishing and merchandise helped Universal Music Group (UMG) post strong revenue growth in both the fourth quarter and full year 2024, while cost savings from layoffs helped the company produce even better earnings gains.
Driven by an 8.2% increase in recorded music subscription revenue, full-year revenue was up 6.5% (7.6% at constant currency) to 11.83 billion euros ($12.8 billion). With a lower cost base, adjusted earnings before interest, taxes, depreciation and amortization (EDITDA) improved 13.8% to 2.66 billion euros ($2.88 billion), while adjusted EBITDA margin climbed to 22.2% from 21.3% in 2023.
During Thursday’s earnings call, CEO Lucian Grainge called 2024 “a tremendously successful year for us at UMG” and cited the company’s “healthy revenue and double-digit adjusted EBITDA growth for each and every year since 2021 when UMG became a standalone public company.” He rattled off a host of UMG’s accomplishments for the year, including having four of the top five artists on Spotify and nine of the top 10 artists — and all of the top five — on the IFPI Global Artist Chart. UMG also had the two biggest new artist breakthroughs of 2024 in Chappell Roan and Sabrina Carpenter. Roan won the Grammy for best new artist in February.
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In the recorded music segment, full-year revenue increased 5.2% (6.4% in constant currency) to 8.9 billion euros ($9.63 billion). Adjusted EBITDA climbed 11.4% to 2.28 billion euros ($2.47 billion). Streaming revenue grew 5.9% to 6.04 billion euros ($6.54 billion), with subscription revenue doing the heavy lifting, rising 8.2% while other streaming revenue — namely ad-supported streaming — fell 0.8%. Downloads and other digital revenue dropped 13.0% but accounted for just 180 million euros ($195 million), or roughly 2% of recorded music revenue. Physical revenue fell 1.6% (up 1.1% in constant currency) to 1.36 billion euros ($1.47 billion). Licensing and other revenue jumped 12.9% to 1.33 billion euros ($1.44 billion).
In music publishing, full-year revenue rose 8.4% (9.0% in constant currency) to 2.12 billion euros ($2.29 billion) and adjusted EBITDA improved 8.7% to 511 million euros ($553 million). Led by strong streaming growth, digital revenue improved 12.4% to 1.27 billion euros ($1.37 billion) and accounted for 60% of total publishing revenue. Performance revenue grew 6.3% to 442 million euros ($478 million). Synch revenue fell 0.4% to 253 million euros ($274 million). Mechanical royalties dropped 4.6% to 103 million euros ($112 million).
Full-year merchandise revenue grew 19.3% to 842 million euros ($911 million), although adjusted EBITDA declined 8.5% to 43 million euros ($47 million). UMG COO/CFO Boyd Muir said the revenue growth reflected “robust superfan demand that is driving strong growth in both direct-consumer and touring revenue.” The lower EBITDA resulted from lower-margin touring merchandise sales, said Muir, though UMG expects merchandise margins to improve as the company ramps up its direct-to-consumer business.
UMG experienced 75 million euros ($81 million) of cost savings in 2024 in the first phase of a 250-million-euro ($270 million) cost savings program. Muir said the company will provide an update on the second phase of the program at a later date and added the implementation “remains on — if not slightly ahead of — schedule.” When UMG announced its cost-savings plan in February 2024, Grainge said the redesign “carefully preserves what we’re best at: creative A&R, marketing independence, unique label brand identities” and an entrepreneurial and competitive spirit.
Cash paid for catalog acquisitions grew to 266 million euros ($288 million) in 2024 from 178 million euros ($193 million) in 2023. Last year’s figure included the acquisition of the remaining stake in RS Group in Thailand and the completion of a 2023 catalog acquisition. UMG had a busy M&A year, buying the remaining share of [PIAS] and investing in Chord Music Partners, NTWRK and Mavin Global. As a result of that activity, free cash flow fell to 523 million euros ($566 million) in 2024 from 1.08 billion euros ($1.17 billion) in the prior year.
Comprehensive fourth-quarter revenue grew 7.2% to 3.44 billion euros ($3.67 billion), or 7.9% in constant currency. Adjusted EBITDA jumped 19.1% to 799 million euros ($852 million). Adjusted EBITDA margin rose to 23.2% from 21.1%. Excluding one-time items, fourth quarter revenue was up 6.1% in constant currency. That non-recurring revenue included the 20 million euros ($21 million) of DSP catch-up income and 40 million euros ($43 million) of legal settlements.
Recorded music subscription revenue climbed 7.9% (9.0% in constant currency) in the fourth quarter, safely within the company’s prior long-term guidance of 8% to 10%, though it suffered a one-percentage-point hit from a decline in revenue from fitness platforms. Ad-supported streaming revenue fell 5.1% (4.1% in constant currency). Combined subscription and ad-supported streaming revenue grew 4.6% (5.6% at constant currency).
Hit songwriter Savan Kotecha has partnered with Universal Music India, Republic Records and Represent to launch an initiative aimed at discovering and developing India’s first globally impactful pop boy band. The nationwide talent hunt seeks to redefine India’s pop landscape by creating a group that reflects the country’s diversity, while also “igniting an unprecedented wave of fandom and paving the way for the Indian Teen Pop economy,” according to the announcement.
Kotecha, a Grammy, Oscar and Golden Globe-nominated native of Texas, has played a pivotal role in shaping modern pop music over the last 15-plus years. His extensive catalog includes hits for Ariana Grande, One Direction, The Weeknd and Maroon 5. With a career that took off in Sweden alongside mentor Max Martin, Kotecha has contributed to chart-topping songs like Grande’s “Problem,” 1D’s “What Makes You Beautiful,” The Weeknd’s “Can’t Feel My Face” and Maroon 5’s “One More Night.” He also served as executive music producer for Eurovision Song Contest: The Story of Fire Saga.
Kotecha believes that India has long looked outside its borders for pop and teen idols, and this initiative aims to change that. “Boy bands have shaped generations around the world—now, it’s India’s turn,” he said. “We want to create a group that represents India’s dreams and sparks an unprecedented wave of fandom.”
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Universal Music Group India & South Asia managing director Sanujeet Bhujabal emphasized the project’s significance. “Our i-Pop strategy has focused on cultivating a Gen Z and Gen Alpha-driven sound in India. Partnering with Savan, we’re taking this vision global by launching India’s first true pop boy band. This will be the biggest talent hunt India has ever seen, and we are committed to building a long-term teen pop economy.”
Aayushman Sinha, founder of Represent, echoed this sentiment: “We’re stepping into a new era of talent development, something India has never seen before. More importantly, this project is about fostering sustainable careers for young artists and establishing pop music as a dominant cultural force.”
To shape the eventual band’s identity, the project has also partnered with Jugaad Motion Pictures.
Aspiring musicians can audition by following @greatestindianboyband on Instagram and submitting their entries on the contest’s website. To apply, candidates need to upload a video showcasing their talent and answering a few select questions. After a month-long selection process, shortlisted contestants will advance to the next round, with the final five then participating in what’s described as a “training bootcamp” ahead of their official debut.
For more than a year, record labels and publishers have seen investors pour into streaming stocks — namely Spotify — while downplaying the potential benefits rights owners will accrue from rising subscription prices. Now, Universal Music Group (UMG) and Warner Music Group (WMG) are getting some attention as analysts are optimistic about the terms of new licensing agreements Spotify reached with the companies.
WMG shares rose 10.9% to $36.20 a week after the company released fiscal first-quarter results. This week, the stock got a boost when Citi raised its WMG price target to $42 from $34 and upgraded the stock to a “buy” rating from “neutral.” As Morningstar explained last week, WMG is a “primary beneficiary of the ongoing growth” in the music industry. At $36.20, WMG shares have gained 17.0% in 2025 and are only slightly below their 52-week high of $36.64 set in February 2024. WMG shares fell 13.4% in 2024.
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At UMG, shares rose 7.1% to 28.89 euros ($30.32), the stock’s highest closing price since May 27, 2024. Morgan Stanley analysts have been making the case that UMG is undervalued given Spotify’s soaring share price and this week raised its UMG price target to 42 euros ($44.07) from 36 euros ($37.78). Recent licensing deals with Spotify and Amazon “increases our confidence that its subscription growth will accelerate” from approximately 5% at the start of 2025 to “closer to 15%” at the beginning of 2026, they wrote in a Monday (Feb. 10) investor note. After falling 4.2% in 2024, UMG shares are up 20.8% in 2025.
WMG and UMG were among the best performers on the 20-company Billboard Global Music Index (BGMI) this week. The BGMI rose 4.6% to a record 2,755.53, bringing its year-to-date gain to 29.7%. Only two stocks lost ground while one was unchanged and 17 posted gains for the week. The index outperformed the Nasdaq composite (up 2.6%), the S&P 500 (up 1.5%), the FTSE 100 (up 0.4%), China’s SSE Composite Index (up 1.3%) and South Korea’s KOSPI composite index (flat versus the previous week).
Live Nation reached an all-time high of $152.94 on Friday (Feb. 14) before closing at $153.76, up 3.7% for the week. Ahead of the concert promoter’s earnings results on Thursday (Feb. 20,) Wolfe Research increased its price target to $175 from $160 and Goldman Sachs raised it to $166 from $148.
Streaming services fared well, too. Spotify rose another 2.4% to $637.73 and reached a new all-time high of $652.63 on Thursday (Feb. 13). Fewer than seven weeks into 2025, Spotify shares have gained 36.7%. Elsewhere on the streaming front, Cloud Music rose 9.1% to 142.20 HKD ($18.01) and Tencent Music Entertainment gained 8.7% to $13.63.
Music streamer LiveOne had the week’s biggest loss after falling 20.5% to $0.93. On Thursday, the company announced that its revenue fell 6% in the fiscal third quarter. LiveOne also lowered revenue and earnings guidance for its full year, causing shares to end the day down 18.6%. The other streaming loser was Abu Dhabi-based Anghami, which fell 2.7% to $0.71.
Satellite radio broadcaster SiriusXM shares rose 6.6% to $27.11, bringing its year-to-date gain to 21.2%. This week, Deutsche Bank raised its price target to $27 from $25.
Most K-pop companies finished the week in positive territory. HYBE shares rose 5.8% and reached their highest mark since July 2023. SM Entertainment, which reported a 9% increase in revenue this week, increased 5.4%. JYP Entertainment improved 4.2% and YG Entertainment fell 1.3%.
On Valentine’s Day, Drake teamed up with OVO signee and frequent collaborator PARTYNEXTDOOR to release the collaborative album Some Sexy Songs 4 U, a 21-track project that marks his first release since the three-track project 100 Gigs last August.
More significantly, it’s his first release since he filed a lawsuit against his record label, Universal Music Group (UMG), on Jan. 15 for defamation over the release of Kendrick Lamar’s “Not Like Us,” the searing, chart-topping diss track aimed at the Canadian rapper that was released by UMG’s Interscope Records. In the lawsuit, lawyers for Drake alleged that “UMG intentionally sought to turn Drake into a pariah, a target for harassment, or worse,” by pushing a “false and malicious narrative” that the star rapper was a “certified pedophile,” as Lamar rapped on the track. (UMG, in response, said in part, “Not only are these claims untrue, but the notion that we would seek to harm the reputation of any artist—let alone Drake—is illogical.”)
That raises the question: How is Drake able to release an album while he’s actively suing the record label to which he’s signed?
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First, the logistics: The new album was released jointly through OVO Sound, to which PARTYNEXTDOOR is signed, which is distributed by Santa Anna, a company under Sony Music Group’s Alamo Records umbrella; and OVO, which is Drake’s vehicle through UMG’s Republic Records. They are co-billed that way and in that order on digital service providers like Spotify and Apple Music. These types of joint releases are relatively common; think Future and Metro Boomin’s back-to-back We Don’t Trust You albums last year, released jointly via Future’s label Epic Records (also a Sony label) and Metro’s label Republic Records. (Coincidentally, We Don’t Trust You contained the song “Like That” featuring Lamar, the track that kicked off the Drake-Kendrick beef in earnest.) Another, more current, example is the Lady Gaga–Bruno Mars collaboration “Die With A Smile,” currently sitting at No. 1 on the Hot 100 for its fifth week, which is co-billed to Gaga’s Interscope and Mars’ Atlantic Records.
That means UMG would have had to legally clear Drake’s appearance on the album, an outcome that a handful of lawyers consulted by Billboard say would not necessarily be affected by any ongoing litigation. “Suing UMG shouldn’t preclude him from working with them legally,” one lawyer says. “As for their desire to be in a contractual relationship with him while he is litigating against them, that’s a different story.” Adds another, who agreed that it would not affect his ability to release an album: “Whether or not UMG decides to properly fund and support a release that Drake wants to do while Drake is suing UMG is another question.”
A UMG spokesperson did not immediately respond to a request for comment. In its response to the initial lawsuit last month, the company wrote, “We have invested massively in [Drake’s] music and our employees around the world have worked tirelessly for many years to help him achieve historic commercial and personal financial success. … Throughout his career, Drake has intentionally and successfully used UMG to distribute his music and poetry to engage in conventionally outrageous back-and-forth ‘rap battles’ to express his feelings about other artists. He now seeks to weaponize the legal process to silence an artist’s creative expression and to seek damages from UMG for distributing that artist’s music.”
An artist suing their record label is not an unheard-of occurrence; it has happened several times through the years, often over royalty payments or other contractual disputes. Suing their own record label for defamation over a diss track, however, is unprecedented; given the mutually beneficial financials involved in an artist and an album’s commercial success, it would stand to reason that UMG would not aim to materially harm one of their superstar artists. But that’s a determination for the courts to make.
Additional reporting by Elias Leight.
Universal Music Group (UMG) and Nashville-based non-profit Music Health Alliance (MHA) are expanding their relationship to launch the Music Industry Mental Health Fund, which will provide comprehensive, high-quality outpatient mental health resources for music industry professionals across the United States, it was announced Thursday (Feb. 13).
The new partnership, which builds upon the healthcare access program launched by UMG and MHA in April 2021, will provide a range of mental health services, including individualized recommendations for mental health professionals; grants to help offset costs; and funding resource recommendations to ensure continuity of care through additional financial and mental health support. Clients from UMG and beyond will have access to MHA’s team of advocates, with initial inquiries receiving a response within 24 hours.
“Music Health Alliance possesses the comprehensive resources necessary to address the full spectrum of mental health needs for music industry professionals,” said MHA founder/CEO Tatum Hauck Allsep in a statement. “This includes financial assistance, a continuum of care for both mental and physical health, and wraparound services such as psychiatric support, facilitation of intensive outpatient and inpatient programs, and data collection. MHA’s holistic approach ensures a long-term commitment to the health, well-being, and sustainability of the music industry workforce.”
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Services will be open to current and former music professionals, including those outside of UMG.
“We have been working on ways to establish a streamlined pathway for mental health access, funding and care planning,” said UMG chief impact officer Susan Mazo. “Growing and continuing our partnership with Tatum and the Music Health Alliance was the most natural way to ensure continuous and effective mental health support for anyone working in our industry.”
In addition to the expanded services, MHA offers a full spectrum of mental health and healthcare advocacy services, including dental care resources via the Richard M. Bates SMILE Fund, group health services, healthcare advocacy and confidential guidance. MHA, which boasts more than 32,000 members from across the music community, also offers individual/family healthcare insurance, senior care support via Price Legacy Fund and vision care resources.
According to UMG and MHA, the entities’ earlier healthcare access program, which provides a healthcare concierge to clients, has served nearly 1,000 clients to date and saved them more than $12.5 million in healthcare costs.