State Champ Radio Warner Music
Trending on Billboard Warner Music Group reported a 23% decline in annual profit for the fiscal year ending Sept. 30 as the termination of BMG’s distribution agreement resulted in lower revenue, though higher publishing and recorded music revenues bolstered annual revenues. WMG’s net income for the 12 months ending Sept. 30 fell to $370 million […]
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A few years into the debate about AI’s potential economic impact on music, the jury is still out.
AI could be great for the music business, enabling new products and creating new revenue streams for artists and songwriters. Universal Music Group (UMG) has said as much. “We believe the commercial opportunity is potentially very significant,” chief digital officer Michael Nash said during the company’s earnings call on Thursday (Oct. 30), a day after it announced a licensing deal with AI music generator Udio. “These new products and services could constitute an important source of incremental additional new future revenue for artists and songwriters.”
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Then again, AI could erode record labels and music publishers’ businesses by flooding the internet with inexpensively made music that takes some — not all — of their market share. Record labels have already lost market share to independent artists in recent years, and AI could be either a continuation or acceleration of existing trends.
Two years ago, analysts at Barclays Research were dismissive of AI-generated music’s threat to the established music business. The general population might have access to music-making tools, but, Barclays reasoned, the quality of the music was poor, and songs created by faceless software housed on computer servers couldn’t create the human connection that listeners desire. Record labels and music publishers could be hurt if social platforms pushed AI music, but the money-saving tactic could run into legal roadblocks, they said. For all the initial hoopla about AI’s ability to upset the status quo, too many questions at the time remained unanswered.
Today, though, Barclays is singing a different tune, and advancements in AI platforms have answered some of their earlier questions. Now, the analysts are more convinced of AI music’s potential to erode record labels’ market share and weaken their financial standing. The quality of music has “improved significantly,” they wrote in a Tuesday (Oct. 28) report titled “AI in Music: Danger Zone,” adding that it’s “hard to differentiate between human music and AI music.” Fans still crave connections with human artists, they wrote, but as opposed to their earlier take, they conceded that AI music represents a threat to the music establishment.
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In the Barclays analysts’ view, AI is a mixed bag of gains (such as AI-enabled superfan tiers) and losses (lower royalties from social media platforms’ adoption of cheap AI music). Overall, though, they believe the damage that AI can create will outweigh its benefits. Their bottom line: In an average scenario, UMG takes a 1% hit to earnings before interest, taxes, depreciation and amortization (EBITDA) and Warner Music Group’s EBITDA drops 4%. A worst-case scenario calls for deeper losses. A best-case scenario sees AI providing a boost.
Not everybody is in the Barclays camp, however. Despite advancements in the quality of music produced by AI platforms, analysts at J.P. Morgan are sticking with their opinion from 2023 that AI will not have “a meaningful impact on industry revenues.” Analysts wrote in a note to UMG investors on Monday (Oct. 27) that AI risks have been “negated” and “controlled” by the company’s efforts in recent years to get streaming platforms to prioritize and reward professional artists over mass-produced, low-quality recordings.
Like Barclays, J.P. Morgan believes market erosion is a genuine threat to UMG’s market share. But J.P. Morgan analysts see much more upside in AI. (Notably, J.P. Morgan’s analysis was less thorough; unlike Barclays, it didn’t put a dollar value on AI’s potential impact.) They note that UMG will benefit from AI artists’ need for publishers and record labels (which jibes with Billboard’s assessment of Hallwood Media’s impact on Xania Monet’s on-demand streams). AI can also generate revenue streams from new licensing opportunities and make listening to music more enjoyable, they write.
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The major labels and publishers haven’t signed or created AI artists yet, but if they do, J.P. Morgan believes they will benefit from economics that are superior to their deals with human artists and songwriters. It’s not a stretch: To capture some of the market share that has shifted to independent artists, UMG has invested heavily in artist services by building up Virgin Music Group and attempting to acquire Downtown Music Holdings (the European Commission will announce its decision on the proposed merger in February 2026). If AI artists are to compete in the marketplace, they will need the same services that are available to human artists, such as promotion, distribution, copyright administration and public relations.
One thing is certain: Because AI music is in its infancy, trying to figure out its long-term trajectory is difficult. When the music industry began navigating the shift from physical to digital in the late ‘90s, few people could have guessed that the marketplace of 2025 would be dominated by subscription royalties and that download revenue would be almost nonexistent. When Napster launched in 1999, nearly a decade before the iPhone debuted, imagining the influence of an app like TikTok would have been nearly impossible. Music companies got to this point by enforcing the value of their intellectual property through a few decades of licensing agreements and lawsuits.
In the near term, expect more deals like UMG’s partnership with Udio. Over the long term, expect to be surprised.
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Dan Rosen has been promoted to an expanded role at Warner Music Group, now overseeing both the Australasia and Southeast Asia markets in a strategic move that consolidates leadership across a region of more than 550 million people.
Rosen, who currently serves as president of Warner Music Australasia, will now also lead recorded music operations in Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam. He continues to report to Lo Ting-Fai (Lofai), president of Warner Music Asia-Pacific.
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Under the new unified structure, Rosen will guide teams across eight diverse markets, with Warner Music citing the region’s heavy engagement with digital platforms and its increasing global influence. Southeast Asia is considered a “trigger region” by major labels — where digital momentum can break songs globally. WMG notes that some of its biggest acts receive up to a third of their global streams from this region alone.
“This region is richly diverse, full of extraordinary artists, talented entrepreneurs, and young passionate fans, who are highly engaged with a booming music ecosystem,” said Lofai. “Under Dan’s skilled leadership, our artists will tap into both the economic value and weight of population across all eight countries, providing a powerful springboard to global fame and fortune.”
The company also confirmed that Warner Music Australasia is evolving its domestic artist structure to double down on developing local acts. Recent global breakthroughs under Rosen’s leadership include Balu Brigada, Budjerah, Boy Soda, Kita Alexander and Thelma Plum.
“Our mission has always been to find dynamic ways to help our local artists go global, and for our global artists to grow passionate local fanbases,” Rosen said. “I’m honoured to lead a talented, focused team, and work with our amazing local partners, in these six diverse and exciting markets in Southeast Asia, while reinforcing our commitment to Australian and NZ artists.”
As part of Warner’s growing Southeast Asian presence, the company recently launched a pan-regional campaign for Vietnamese indie artist Vũ, who is set to embark on the largest-ever Australian tour by a Vietnamese artist.
Rosen will continue to lead Warner Chappell Music in Australia and New Zealand. Publishing operations in Southeast Asia remain under Arica Ng, president of Warner Chappell Music APAC, who reports to Guy Moot, co-chair and CEO of Warner Chappell Music.
Universal Music, Warner Music and Sony Music are in talks with Udio and Suno to license their music to the artificial intelligence startups, Billboard has confirmed, in deals that could help settle blockbuster lawsuits over AI music.
A year after the labels filed billion-dollar copyright cases against Udio and Suno, all three majors are discussing deals in which they would collect fees and receive equity in return for allowing the startups to use music to train their AI models, according to sources with knowledge of the talks. Bloomberg first reported the news on Sunday (June 1).
If reached, such deals would help settle the litigation and establish an influential precedent for how AI companies pay artists and music companies going forward, according to the sources, who requested anonymity to discuss the talks freely.
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Such an agreement would mark an abrupt end to a dispute that each side has framed as an existential clash over the future of music. The labels say the startups have stolen music on an “unimaginable scale” to build their models and are “trampling the rights of copyright owners”; Suno and Udio argue back that the music giants are abusing intellectual property to crush upstart competition from firms they see as a “threat to their market share.”
Settlement talks are a common and continuous feature of almost any litigation and do not necessarily indicate that any kind of deal is imminent. It’s unclear how advanced such negotiations are, or what exactly each side would be getting. And striking an actual deal will require sorting out many complex and novel issues relating to brand-new technologies and business models.
Reps for all three majors declined to comment. Suno and Udio did not immediately return requests for comment. A rep for the RIAA, which helped coordinate the lawsuits, declined to comment.
If Suno and Udio do grant equity to the majors in an eventual settlement, it will call to mind the deals struck by Spotify in the late 2000s, in which the upstart technology company gave the music industry a partial ownership stake in return for business-critical content. Those deals turned out to be massively lucrative for the labels and helped Spotify grow into a streaming behemoth.
The cases against Udio and Suno are two of many lawsuits filed against AI firms by book authors, visual artists, newspaper publishers and other creative industries, who have argued AI companies are violating copyrights on a massive scale by using copyrighted works to train their models. AI firms argue that it’s legal fair use, transforming all those old works into “outputs” that are entirely new.
That trillion-dollar question remains unanswered in the courts, where many of the lawsuits, including those against Suno and Udio, are still in the earliest stages. But last month, the U.S. Copyright Office came out against the AI firms, releasing a report that said training was likely not fair use.
“Making commercial use of vast troves of copyrighted works to produce expressive content that competes with them in existing markets, especially where this is accomplished through illegal access, goes beyond established fair use boundaries,” the office wrote in the report.
Even with the legal landscape unsettled, some content companies have struck deals with AI firms. Just last week, the New York Times — which is actively litigating one of the copyright cases — struck a deal to license its editorial content to Amazon for AI training. Last fall, Microsoft signed a deal with HarperCollins to use the book publisher’s nonfiction works for AI model training.
Music companies have not struck any such sweeping deals, and instead have preferred more limited partnerships with tech companies for “ethical” AI tools. UMG signed a deal last summer with SoundLabs for an AI-powered voice tool for artists and another one in November with an AI music company called KLAY. Sony made an early-stage investment in March in a licensed AI platform called Vermillio.
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.
Kesha is going independent. Today, the Grammy-winning artist announced a new deal with the independent label and artist services of Warner Music Group, ADA, via her newly launched label Kesha Records.
“I am proud to announce this partnership for the distribution of my music through Kesha Records. My name has become synonymous with transparency, integrity, and safety, and I want to ensure that these values are upheld for myself and any future artists signed to my label,” Kesha said in a release. “Music has the power to connect the world, and I aspire for my work to be a beacon of light and goodness. I am excited to take control of my narrative and rewrite my story in the music business.”
The partnership will see ADA cover global distribution for Kesha’s future releases including her upcoming album due out in 2025, as well as the project’s current single, “Joyride,” which nabbed a top 10 spot on Billboard’s Hot Dance/Electronic Songs chart. ADA will also work in tandem with Crush Music, which manages Kesha, overseeing marketing and promotion for Kesha’s forthcoming album. This marks Kesha’s first distribution deal and gives her full creative control and ownership of her work.
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“Since the start of her career, Kesha’s authenticity has distinguished her as a true artist whose vibrant self-expression resonates strongly with her fans,” said ADA president Cat Kreidich in a release. “We believe ADA is the ideal home for her, and we’re honored and committed to supporting Kesha as an independent artist while maintaining her creative integrity and unapologetic bold-spirit.”
Kesha’s latest hit, “Joyride,” recently surpassed 50 million streams across all platforms and landed on the Spotify U.S. and Global Viral charts upon release, according to ADA. The star also recently hit major milestones with updated RIAA certifications. “TiK ToK” is now 12x platinum and “Timber” has become her second Diamond-certified single in the U.S. Other hits like “Die Young,” “We R Who We R” and “Praying” have reached 6x and 5x platinum. These achievements push her total U.S. sales over 75 million, according to ADA.
Kesha’s discography also encompasses two No. 1 albums on the Billboard 200 and 10 top 10 singles on the Billboard Hot 100. Kesha’s third studio album Rainbow debuted at No. 1 on the Billboard 200 and went on to land a Grammy nomination for best pop solo album in 2017. The album’s lead single “Praying” spent 21 weeks on the Billboard Hot 100 and also earned a Grammy nomination for best pop solo performance. Since then, she’s released two critically-acclaimed projects, High Road and Gag Order.
Shares of Spotify rose 8.0% to $365.00 this week to lead all music stocks in a week the Billboard Global Music Index reached a new high and many of its largest components posted mid- to high-single digit gains.
The Swedish music streaming giant was boosted by a report by Pivotal Research Group that increased its price target to $510 from $460 and reiterated its “buy” rating. Spotify’s intraday high of $368.29 on Thursday set a new 52-week high for the stock and was its best mark since Feb. 21, 2021.
Spotify led the 20-company Billboard Global Music Index (BGMI) to a record high 1,873.87, up 4.1% for the week, as ten of the stocks posted gains this week, nine lost value and one was unchanged. After a 4.8% drop the week ending Sept. 6 and stagnating since March, the BGMI has gained 7.4% in the last two weeks and raised its year-to-date gain to 22.2%—more than two percentage points above the gains of the Nasdaq composite (up 19.6%) and the S&P 500 (also up 19.6%).
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Stocks generally had a good week after the U.S. Federal Reserve announced on Wednesday a rate cut of half a percentage point, the first time the central bank lowered the overnight borrowing rate since the early days of the COVID-19 pandemic. Investors had expected the Fed’s move, though, and had priced the effect of a rate cut into stock prices. Still, the Nasdaq composite climbed 1.5% to 17,948.32 and the S&P 500 rose 1.4% to 5,702.55. South Korea’s KOSPI composite index improved 0.7% to 2,736.81 and China’s Shanghai Composite Index rose 1.2% to 2,736.81. In the United Kingdom, the FTSE 100 fell 0.5% to 8,229.99.
Warner Music Group gained 4.9% to $30.44. WMG’s Atlantic Music Group laid off about 150 people Thursday as part of a restructuring plan that began in February. The week’s intraday high of $30.88 was WMG’s highest price since reaching $32.34 on July 24. The company also announced in an SEC filing this week it secured a $1.3 billion term loan that will be used to repay an existing loan and pay associated fees and expenses.
Live Nation shares also gained 4.9% to $103.65 and brought its year-to-date improvement to 10.7%. Thursday’s intraday high of $105.42 was its highest mark since April 1 and less than $2 below its 52-week high of $107.24. The concert promoter scored a win in Portland, Ore., this week after the city council upheld an August decision to allow the development of a 3,500-capacity music venue that will be operated by Live Nation.
Two other promoters also posted gains this week. MSG Entertainment, rose 4.6% to $42.16, while CTS Eventim improved 1.2% to 87.90 euros ($98.23). Another live entertainment company, Sphere Entertainment Co., dropped 2.7% to $41.09.
K-pop companies’ modest decline was an improvement from their consistently steep drops in recent weeks. The four South Korean companies had an average loss of 1.2% this week. HYBE fell 2.4%, JYP Entertainment dipped 1.2%, YG Entertainment slipped 0.9% and SM Entertainment lost 0.2%. After surging in previous years, the quartet has an average year-to-date loss of 40.4%.
Universal Music Group fell 3.6% to 22.75 euros ($25.42) following its Capital Markets Day on Tuesday. Analysts generally felt UMG set reachable financial targets and presented a believable roadmap about its strategy for the next four years. The Amsterdam-listed company laid out a strategy to achieve 8% to 10% cumulative annual growth rate (CAGR) for its subscription revenue and above 7% CAGR for total revenue.
Music streamer LiveOne had the biggest decline of the week, dropping 6.1% to $1.38. That put shares of LiveOne into the red for 2024 with a 1.4% year-to-date loss.
Welcome to another edition of Executive Turntable, Billboard’s comprehensive(ish) compendium of promotions, hirings, exits and firings — and all things in between — across music. While you’re here, we also have a weekly interview series spotlighting a single executive and a regularly updated gallery honoring many of the industry figures we’ve lost throughout the year.
Warner Music welcomed seasoned artist manager and marketer Oscar Scivier as its Hong Kong-based senior director of A&R for Asia. The label said Scivier will work closely with regional management on developing A&R strategies, plus support WMG’s over-arching vision to introduce local artists to global audiences. Scivier was most recently head of music at Digital Arts and Sciences, which followed a five-year run at First Access Entertainment, where he A&R’d Rita Ora, Madison Beer, DJ Regard and others. He also made earlier stops at Ultra Music, working with Steve Aoki, Kygo, OMI and Benny Benassi, and Three Six Zero, where he day-to-day’d Deadmau5 and Michael Woods. “Adding Oscar to our worldwide A&R team strengthens our ability to swiftly seize artist development opportunities and reaffirms WMG’s commitment to providing the best platform for the most impactful and popular talent,” said Kabiru Bello, vp of global A&R at Warner Recorded Music. “His wide-ranging experience as a producer, label manager and artist manager will make him a superb addition to our company’s leading team of A&R executives.”
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Stern Management secured the services of industry veteran Marisa Jeffries in the newly created role of general manager. She’ll work closely with the company’s roster, which includes The Black Angels, Phosphorescent, Metric, Finn Wolfhard and others. Jeffries was most recently U.S. lead of label partnerships at TikTok, where she nailed down opportunities for the likes of Taylor Swift, Rosalia, Steve Lacy and Omar Apollo — quality work that earned her a spot on Billboard‘s Women in Music list in 2023. Earlier in her career, Jeffries drove marketing strategy for Sony Music’s catalog division and prior to TikTok she spent five-plus years working label relations at SoundCloud. “I have been constantly inspired by Marisa and her community of colleagues and friends who break artists in new and inventive ways,” said Stern Management founder Nick Stern. “Her superpower has always been drawing out the best in people and building long-lasting partnerships founded on trust, excitement and a love for doing cool things.”
Universal Music Sweden tapped Mattias Caliste to lead the newly launched Def Jam Recordings Sweden. The label’s opening roster includes Asme x Sarettii, Sebastian Stakset and Zikai. His team will include Hamid Jamshidi, Hermon Alemseghed and Mathilda Sachs, plus UMG’s regional and global network. Caliste is a former member of Swedish hip-hop group Fjärde Världen (Fourth World) and was most recently in charge of Virgin Music Sweden, where he worked with artists including 23 and Asme. “Def Jam raised me!” Caliste said. “I grew up on artists like Public Enemy, EPMD, LL Cool J, Redman & Method Man, Warren G and many others who all released some of their most outstanding albums under Def Jam. The label has a legacy that is incredibly important for hip hop as both a genre and a subculture.”
Stern Management secured the services of industry veteran Marisa Jeffries in the newly created role of general manager. She’ll work closely with the company’s roster, which includes The Black Angels, Phosphorescent, Metric, Finn Wolfhard and others. Jeffries was most recently U.S. lead of label partnerships at TikTok, where she nailed down opportunities for the likes of Taylor Swift, Rosalia, Steve Lacy and Omar Apollo — quality work that earned her a spot on Billboard‘s Women in Music list in 2023. Earlier in her career, Jeffries drove marketing strategy for Sony Music’s catalog division and prior to TikTok she spent five-plus years working label relations at SoundCloud. “I have been constantly inspired by Marisa and her community of colleagues and friends who break artists in new and inventive ways,” said Stern Management founder Nick Stern. “Her superpower has always been drawing out the best in people and building long-lasting partnerships founded on trust, excitement and a love for doing cool things.”
Jake Owen and Keith Gale launched Good Company Entertainment Records, a label and artist services appendage of their management company of the same name (sans the ‘Records’ part). GCE Records aims to provide marketing services, digital and creative tools, global distribution and management services for new and established artists, including first signing Styles. “GCE Records is an alternative model to introduce artists and new music,” explained Gale. “Providing key services similar to that of the traditional record label, but dissimilar to the label structure in various facets, our artist partners and their teams have the creative freedoms to remain true to their unique brand of music that sets them apart.”
Chris Walters is now chief financial officer of Gateway Studios & Production Services, a St. Louis-based live events company that provides lighting, audio and high-tech video services for artists and festivals including Phish, Greta Van Fleet, Governors Ball, Professional Bull Riders and more. The “Studios” part of the company’s name refers to the massive, 330,000 square-foot tour and live event rehearsal campus it is currently building in STL’s Chesterfield Valley area. When online, the facility will house five separate studio spaces where events and tours destined for small theaters, stadiums and everything in between can be produced and rehearsed from soup to nuts before hitting the road. Walters has been at Gateway since 2021, following a six-year run at Emerson Automation Solutions.
Top Drawer Merch elevated Robbie McPhail to vp of sales. As part of his new role, McPhail will take lead on sales strategies for both e-commerce and in-person festival/tour merchandising, plus oversee logistics, inventory and shipping matters. McPhail joined Los Angeles-based TDM in 2016, working on-site operations at festivals such as Cali Vibes, Portola, Invisible Friends and dozens more. “His experience behind the booth gives him a unique perspective on which sales strategies are successful and which initiatives need to be implemented in the future,” the company said.
Brett Kaminsky was made partner at Felcher & Freifeld LLP, where the Cardozo School of Law grad has posted up for nearly 11 years. Most recently a senior associate, Kaminsky handles a broad swath of legal matters for F&F’s recording artists, songwriters, producers, managers and entertainment executives, including contract negotiations, licensing and branding matters and performance agreements.
Charlotte-based live events management and production company Midwood Entertainment has Joel Grubb as talent buyer and event producer. Grubb previously served as a promoter at Rival Entertainment in Atlanta, managing outdoor and special events at venues including Sweetland Amphitheatre and Chandler Park Music Festival, and contributing to booking shows at Rival’s venues including Eddie’s Attic and The Earl. In his new role, Grubb will oversee booking for a variety of venues, festivals, concert series, and special events across the southeast and beyond. Grubb also played a key role in developing/curating the indie rock festival Highball. –Jessica Nicholson
Agua Caliente Casinos hired Nick Sitar as the chain’s new director of entertainment. Based in Rancho Mirage, Calif. and reporting to Saverio Scheri, COO, Sitar is tasked with booking artists at all three of ACC’s properties in California. Prior to joining the company, he served as regional director of entertainment programming at Caesars Entertainment, where he handled bookings at all of the company’s non-Vegas properties.
ICYMI:
Christoph Behm
Christoph Behm was named the new CEO of Sony Music Germany, Switzerland and Austria (GSA), replacing Patrick Mushatsi-Kareba, who is exiting the company at the end of August … Jonathan Roberts will spearhead UTA‘s new Christian music division … and former Billboard editorial director Bill Werde will lead Syracuse University‘s new master’s degree in music business as part of the school’s prestigious Bandier Program for Recording and Entertainment Industries.
Last Week’s Turntable: Warner Chappell Promotes Zach Bryan’s A&R Guy
Warner Music Group reported on Wednesday strong streaming revenue growth and keeping a lid on its costs helped offset declines in merchandise and physical music sales in the company’s third fiscal quarter.
Quarterly net profit rose nearly 14% to $141 million from $124 million in the third quarter last year. Overall revenue fell by 1% to $1.554 billion from $1.564 billion in the year ago quarter due to the roll off of BMG’s distribution deal and a difficult comparison to the year-ago quarter, which included a $7 million benefit from the Copyright Royalty Board in Phonorecords III.
The company’s digital revenue and streaming revenue were up 4.7% and 5.5% respectively, as subscription revenue grew 7%. Recorded Music streaming revenue increased 5.0%, and music publishing streaming revenue increased 7.9%.
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“Our strong subscription streaming growth in [the third quarter] was driven by the performance of our music and healthy industry trends,” Warner Music Group chief executive Robert Kyncl said in a statement. “We’re nurturing the next generation of artists and songwriters, creating fresh impact for our iconic catalog, and working with our partners to increase the value of music. Our commitment to long-term artist development, combined with a flatter structure in recorded music, will enable us to super-serve talent and set WMG up for sustained future growth.”
WMG’s operating income jumped 10% to $207 million in the quarter from $189 million in the third quarter last year. Adjusted operating income before depreciation and amortization (OIBDA), which measures profitability over a specific period of time, rose 6% to $316 million from $297 million in the prior-year quarter.
Revenue from WMG’s recorded music division fell by 2% to $1.251 billion from $1.282 in the year-ago quarter. This was due in part to the exiting of BMG as a client, which resulted in $26 million less revenue, and a “renewal with one of the Company’s digital partners” which created an additional $3 million drage on recorded music streaming revenue, the company said.
BMG began winding down its distribution agreement with WMG’s ADA last September to move control of its 80 billion-stream digital business in-house.
Physical revenue fell by 4.8% because of release timing and a tough year-ago comparison, the company said. Artist services and expanded-rights revenue fell by 27.1% mainly due to lower merchandising revenue.
Revenue from WMG’s music publishing division rose by 8% to $305 million from $283 million in the year-ago quarter.
Topline Results:
Total revenue 1% to $1.554 billion in the third fiscal quarter 2024 from $1.564 billion in the same period last year.
Net income rose 14% to $141 million from $124 million in the third quarter 2023.
Recorded music revenue fell by 2% to $1.251 billion from $1.282 billion in the third quarter 2023.
Music publishing revenue rose 8% to $305 million from $283 million in the third quarter 2023.
Warner Music is restructuring its Mexican music division to strengthen its market presence and product quality, the label tells Billboard. The revamped division will feature a culturally attuned A&R team and a strategic marketing framework designed to promote artist development across multiple territories.
The initiative will be led by Tomas Rodríguez, president of Warner Music Mexico & Mexican Music, who will be spearheading the restructured division from Mexico. “The expertise, adaptability, and market acumen of the Mexican Music team will bolster our vision for the genre’s development and globalization, cementing Warner as a protagonist,” he said in a statement.
Rubén Abraham, Warner Music’s GM of Mexican music, will oversee the A&R and marketing teams from Los Angeles, aligning strategies across the United States and Mexico. “We’re primed to offer the industry’s premier platform for the genre, supported by top-notch professionals and tailored negotiation options that cater to both present needs and future prospects of Mexican Music,” he said.
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The division’s A&R team will include Brian Plascencia as director of A&R. Plascencia brings extensive experience from previous roles at Universal Music and Univision Records and as a West Coast label manager at Machete Music, where he was instrumental in launching artists such as Larry Hernandez, Fidel Rueda, El Potro de Sinaloa and Roberto Tapia. As a founding partner at Alianza Records, Plascencia has also developed artists like Grupo H-100 and Edicion Especial.
Elsewhere, the A&R team will include associate director of A&R Armando López, who brings over a decade of expertise in marketing, musical production and concert promotion. Cesar Carrillo has been appointed senior manager of A&R, with an 18-year track record in the regional Mexican music scene. His experience spans music production, artist management for acts like Tomas Ballardo and Los Buitres de Culiacán and booking for Legado 7 with Lumbre Music. AT FM Entertainment, he assisted in managing schedules for música mexicana giants such as Ramón Ayala, Banda Machos and Fidel Rueda.
María Angela Batiz, the label’s director of marketing for Mexican music, will continue to play a crucial role with her extensive experience and expertise in the genre, leading the development of marketing strategies and campaigns across the department.
Warner Music’s expansion in Mexican music is supported by its collaboration with the company’s independent distribution and label services arm ADA, enabling a range of services and partnership opportunities.
Warner Music’s Mexican music roster also includes Grupo Codiciado, El Komander, Pesado, DannyLux and Los Aptos.
