warner music group
Page: 3
The music business is getting back to basics.
In a few short years, the major labels have gone from investing in and partnering with speculative tech startups to pouring money into regionally focused music companies across Asia, Africa and Latin America. After a brief flirtation with NFTs and live-streaming businesses, anything resembling a faddish technology seems to be out of favor, judging from the deals and partnerships they’ve been making lately. Instead, the majors are targeting old-school music companies that own catalogs and develop artists — and can benefit from the majors’ global network of distribution and other services.
In 2024 alone, the three majors — Universal Music Group, Sony Music Entertainment and Warner Music Group — have acquired or invested in 11 record labels, music catalogs and service providers in small or developing markets. The flurry of deals — there were even more in 2023 and preceding years — provides the majors with more content for their ever-increasing distribution pipeline and more international artists to take to Western markets.
Take UMG’s run of acquisitions and investments in 2024: the remaining stake of European indie label group [PIAS], the remaining stake in the catalog of Thai music company RS Group, a majority stake in Nigerian record label Mavin Global and the outright acquisition of Outdustry, a multi-faceted company with an artist- and label-services arm that focuses on China, India and other high-growth emerging markets. Outdustry will be a division of Virgin Music Group, UMG’s fast-growing distribution and artist services company that includes distributor Ingrooves Music Group and Integral, formerly the artist services division of [PIAS].
Trending on Billboard
UMG, in particular, is letting the world know about its intentions. On Thursday (Oct. 31), UMG CEO Lucian Grainge dedicated much of his earnings call opening statements to the company’s efforts to expand into potentially lucrative markets that merited little attention before legal streaming services replaced digital piracy. UMG plans to make “several other investments” before the end of the year, CFO Boyd Muir said during the earnings call. In total, he said, investment spending in the second half of the year will be 350 million to 400 million euros ($380 million to $434 million).
The focus on emerging markets and artist services is a noticeable change from a few years ago. When NFT prices soared and fans were stuck at home during the pandemic, the majors invested in blockchain, virtual reality and live-streaming startups. Today, as the majors face slowing streaming growth in mature markets and the needs of an increasing number of independent artists, they’re focused on building a global network of service providers with an eye on up-and-coming markets.
The focus on emerging markets goes beyond acquisitions. In September, UMG launched a new company, Universal Music Group Greater Bay Area, that will be based in Shenzhen, making “the first time a major music company has established a division in China’s Greater Bay Area, the world’s most populous urban area,” the company said.
Another development mentioned on UMG’s earnings call was GTS, a global talent services business in Latin America. In October, GTS became a standalone company separate from UMG’s record labels. “By separating from our local labels,” Grainge explained, “GTS will now be able to also offer its services to artists outside of the UMG family.”
Grainge and Muir painted a picture of a global business determined to expand outside of the mature markets they know best and build a presence in high-growth ones. UMG’s competitors — including independent Believe — are doing the same.
WMG has also had a busy year investing in traditional music companies. In March, WMG purchased a stake in India’s Global Music Junction (India’s The Economic Times reported it was a 26% stake) and launched Warner Music South Asia in April. Last year, the company took a majority stake in Divo, an Indian digital media and music company. Earlier this week, CEO Robert Kyncl told The Economic Times that China and India are the company’s top markets for expansion. “We’re already doing great in India, but it can be a much bigger part of our story,” Kyncl told the paper.
The majors continue to buy catalogs, of course. This year, Sony Music purchased Pink Floyd’s recorded music catalog (in addition to merchandising and name and likeness rights) and UMG bought a minority stake in Chord Music Partners, which holds the rights to over 60,000 songs. Expensive song catalogs give the majors rights to assets with long, productive lives. But given the enormous size of these companies, artist catalog acquisitions barely move the revenue needle. A legendary artist’s catalog might cost $200 million but generate a steady $10 million a year — a healthy sum but a pittance to a company with annual sales exceeding $12 billion.
Rather than pour money into just catalogs, the majors are buying entire companies and building new businesses with growth potential. As Morgan Stanley analysts wrote in an investor note about UMG on Thursday (Oct. 31), earlier acquisitions have had “a negligible effect on revenue and a small impact on profit growth.” But in the future, they are likely to be a more important driver of revenue growth, and Morgan Stanley expects UMG’s financial reports will break out their impact (e.g. reported revenue vs. organic revenue).
In buying regional music companies and building artist-services business, the majors are also taking a defensive measure. Independents such as Believe have been investing in local markets for years. In 2024 alone, Believe purchased the remaining stake in Turkish record label DMC and acquired Indian label White Hill Music’s music catalog and YouTube channel. Independent distributors such as UnitedMasters, Stem, Symphonic Distribution and Create Music Group have given artists a viable alternative to major label-owned systems. The majors are simply changing along with the market.
In 2012, UMG acquired the recorded music assets of EMI Music and later sold some pieces to WMG to satisfy antitrust regulators. Opposition to greater consolidation in the U.S. and Europe means it was probably the last acquisition of its size in those regions. (WMG’s brief flirtation with buying Believe in April and May quickly drew opposition from French indie labels.) There’s less opposition to more gradual growth taking place elsewhere in the world, though. The majors are continuing to expand, but they’re taking many small steps, not single EMI-sized leaps — and they’re doing it through old-fashioned music businesses.
Sandbox Succession, the legacy division of Sandbox Entertainment, partnered with the Patsy Cline estate through Patsy Cline Enterprises. Under the agreement, Sandbox Succession will collaborate with Cline’s daughter and heir, Julie Fudge, to expand her legacy across film, TV, publishing, merchandising, hospitality and licensing. Gregory Hall, a key player in the management of Cline’s estate, will remain an instrumental member of the team. A new biography and documentary on Cline are both in development. Sandbox Succession also represents the estates of Johnny and June Carter Cash and Loretta Lynn.
Business-to-business digital music platform Tuned Global forged a partnership with streaming fraud detection company Beatdapp, through which Tuned Global will incorporate Beatdapp’s fraud detection capabilities into the Tuned Global platform. The deal will help Tuned Global ensure that client royalties are fairly distributed to rights holders. Beatdapp also has deals in place with Universal Music Group and the Mechanical Licensing Collective.
Trending on Billboard
Oak View Group (OVG) and Middle East event management and venue operator Ethara struck a joint venture to enable OVG’s entry into the Middle East market. Under the agreement, Ethara — which operates venues in the United Arab Emirates, including the Etihad Arena, Etihad Park, Yas Marina Circuit and Yas Conference Centre — will provide OVG with knowledge of local markets, with the two companies exploring growth opportunities together across the region. Ethara will also work closely with Rhubarb Hospitality Collection (RHC), a British venue caterer recently acquired by OVG, to improve the fan experience by providing food, beverage and hospitality services at venues across the Middle East.
Dreamliner, a provider of upscale travel coach buses for entertainers, acquired two events logistics companies: Denver-based Shomotion and Nashville-based Show Pro, with founders of each company joining Dreamliner’s executive team. Dreamliner will retain all Shomotion and Show Pro employees and expand its footprint by adding Shomotion’s Denver facility and Show Pro’s Nashville facility. The acquisition adds over 70 trucks and 220 trailers to Dreamliner’s offerings. – Jessica Nicholson
AtVenu, a leading provider of live event software and payment solutions, received a $130 million equity investment from Sixth Street Growth. The partnership will allow atVenu to expand and speed up the company’s growth into new live event markets, including sports and food and beverage. AtVenu helps ease the process of managing locations, inventory and the deployment of point-of-sale hardware while offering real-time data for organizers to optimize the event experience. According to a press release, the company processes more than $1.6 billion in merchandise and food and beverage volume every year and works on more than 125,000 events annually, from small clubs to stadiums. Raymond James served as atVenu’s financial advisor in the transaction.
Armada Music Group’s BEAT Music Fund acquired several new catalogs. They include the artist shares from a portion of techno pioneer and artist Kevin Saunderson‘s Inner City catalog; master and artist royalties for trance DJ and Coldharbour Recordings owner Markus Schulz; and the catalog of Robbie Rivera’s dance label Juicy Music. BEAT’s roster, through acquisitions, also includes Sultan + Shepard, Jax Jones, Amba Shepherd, VIVa MUSiC, Sola Records, King Street Sounds and Chocolate Puma.
Warner Music Group (WMG) Benelux acquired Netherlands-based record label Cloud 9 Recordings, which counts artists including Claude, Jaap Reesema, Kris Kross Amsterdam, Snelle and Turfy Gang on its roster. Under the deal, the Cloud 9 team will relocate to The Amsterdam Music Harbour, which serves as the creative hub of WMG Benelux in the Amsterdam Houthavens. Raymond van Vliet will retain his role as president of Cloud 9, which will remain a separate label, as well as his responsibilities at Blue Skies Publishing. Along with the acquisition, WMG Benelux entered an exclusive global administration agreement with the Cloud 9-affiliated Blue Skies Publishing, which represents songwriters including Claude, Davina Michelle, Edwin van Hoevelaak, Flemming, Frank van Etten, John Dirne, La Fuente and Snelle and owns several catalogs. Blue Skies Publishing will continue to manage the creative process with its current team, while its office in the Dutch town of Laren will serve as a satellite office for Cloud 9.
Moombix, described as a music education platform enabling adult hobbyists and aspiring music professionals to have one-on-one online classes with expert teachers, closed a seed funding round of over 1.9 million pounds ($2.47 million), led by Iceland’s Frumtak Ventures with participation from angel investors. The money will be used to scale the Moombix marketplace and improve the user experience, accelerate customer acquisition and prepare for a strategic launch into the U.K., where 200 teachers have already signed up to offer classes, according to a press release. Moombix offers classes on instrument learning, voice coaching, DJing, production and more.
Downtown-owned business-to-business distributor FUGA struck a new partnership with UNIFIED Music Group, a multi-service music company that operates across Melbourne, Syndey, L.A., New York, Nashville and Toronto. Under the deal, FUGA will support UNIFIED Recorded Music labels including UNFD and Domestic La La, which will leverage FUGA’s platform and suite of services, including strategic marketing and account management, social video management, YouTube channel partnerships, physical distribution, synch and licensing solutions via Downtown Music Publishing, and neighboring rights collection through Downtown Neighbouring Rights. Since 2022, UNIFIED has been a client of Downtown-owned royalty accounting platform Curve.
Live Nation signed a deal to manage Allas Live, a 2,500-capacity open-air venue within the Allas Sea Pool complex in Helsinki, Finland. Under the deal, Live Nation will also manage the Allas Live outdoor concert series in partnership with Allas Sea Pool.
ASM Global reached an agreement with the City of Worcester, Mass., to extend ASM’s management services of the city-owned DCU Center Arena and Convention Center. The five-member Civic Center Commission, which oversees ASM’s management contract on behalf of the city, voted unanimously to recommend the contract extension. As part of the 10-year extension, ASM has committed to a $3.5 million investment in the DCU Center that will focus on enhancing food and beverage operations, creating digital advertising opportunities and implementing further technology upgrades.
Acrisure Arena, located in Palm Springs, Calif., announced Silvercrest as the official sponsor of its exclusive outdoor VIP space, the Silvercrest Compound. The space includes a nine-hole mini golf course along with bocce ball, pickleball, half-court basketball, fire pits, and food and beverage offerings just steps away from the stage.
As the Warner Music Group continues to reshuffle its executive ranks, the company has made two new announcements today (Oct. 7).
First, Eric Wong, who has been chief marketing officer at the major label since 2020, will shift into the newly-created role of global head of A&R, recorded music, and assume the presidency of East West Records, which was originally launched in 1955 as part of Atlantic Records.
As part of that transition, WMG’s executive vp of global marketing Jessica Keeley-Carter has been promoted to step into the role of chief marketing officer, recorded music. Keeley-Carter has been at WMG since 2019, when she joined as senior vp of global marketing, before being promoted to executive vp in 2022. Both Wong and Keeley-Carter will report to WMG CEO Robert Kyncl.
“Eric’s newly-created role leans into his long-standing relationships within the artistic community and his deep understanding of how music travels around the world,” Kyncl said in a statement announcing the news. “Jess is an expert marketer and an inventive leader, who will help us orchestrate best-in-class ways of cutting through the noise in an increasingly complex and cluttered world.”
These moves are part of the broader restructuring of WMG that Kyncl announced in August, which was in pursuit of what Kyncl said at the time was a “flatter structure” for the company. As part of those moves, WMG CEO of recorded music Max Lousada exited the company, and Elliot Grainge was named as the new CEO of Atlantic Music Group, while Kyncl himself took on direct oversight of the heads of global catalog, marketing, distribution company ADA and fan and merch division WMX. As part of the fallout of the moves, longtime Atlantic leader Julie Greenwald, 300 Elektra Entertainment chairman/CEO Kevin Liles and a host of senior Atlantic and Elektra executives also departed the company, among other moves.
Trending on Billboard
“I’m excited to build even closer relationships with our artists and put greater firepower behind our worldwide network to connect the dots, unlock new value and magnify opportunities for emerging talent,” Wong said in a statement. “I’d like to congratulate Jess on her promotion, and thank Robert for his trust in me to take on this new position.”
Wong, who years ago had served as a senior vp of marketing at Atlantic, returned to Warner in the global CMO role in 2020, after a decade at Universal Music Group that saw him rise to the role of COO of Island Records. With East West as well as his global A&R role, Wong will be tasked with “identifying local talents with global potential and accelerating their pathway to global success,” according to a press release. Keeley-Carter, prior to joining Warner, had worked at Meta overseeing commercial labor partnerships for Europe, the Middle East and Africa, and prior to that had also worked at UMG, where she spent eight years.
“With the collective WMG team collaborating even more closely in our new structure, we’ll be set up to take our artists and labels to new heights,” Keeley-Carter said in a statement. “I’m grateful to Robert for this opportunity, I’d like to thank Eric for his guidance and partnership over the years, and I’m looking forward to continuing our work together.”
The Warner Music Group (WMG) has struck a new multiyear licensing deal with Meta, Billboard has learned. The partnership, which covers both Warner’s recorded music and Warner Chappell publishing operations, will be across all of Meta’s platforms — Facebook, Instagram, Messenger, Horizon and Threads — and will also include WhatsApp for the first time, Billboard […]
Max Lousada, who has served as CEO of recorded music for the Warner Music Group since 2017 and who will soon be exiting the company, has penned a farewell note to staff, which was obtained by Billboard.
“My entire career, from my indie roots through my 21 years here at Warner, has been guided by one simple truth: People who can make music that moves people are special,” Lousada wrote. “The world needs them. It’s a privilege to help those artists be seen, heard, appreciated and, ultimately, to succeed.”
Lousada has spent two decades at the Warner Music Group, starting in the mid-2000s, when he joined Atlantic U.K. and ran that company for nine years. He took over Warner Music’s whole U.K. operation in 2013, before shifting to take on the top music role at WMG under then-CEO Stephen Cooper in 2017. A longtime artist advocate within the building, Lousada is credited with playing a major role in the careers of Dua Lipa, Ed Sheeran, Bruno Mars, Coldplay, David Guetta and more.
Trending on Billboard
During his tenure, he was part of the leadership team that helped WMG become a public company once again in 2020, while also helping facilitate and integrate the acquisitions of 300 Entertainment, 10K Projects and Spinnin Records.
Prior to his time at Warner, Lousada ran his own distribution company in the late 1990s before joining indie labels Rawkus Records in 2000 as European managing director, and Mushroom Records in 2002 as head of A&R.
On Aug. 1, current WMG CEO Robert Kyncl announced a major restructuring of the label group, which included news of Lousada’s exit; his last day in his post will be Sept. 30, though he will remain in an advisory capacity through January. His position within the company will not be replaced. As part of the transition, a number of high-profile leaders at Warner are also leaving the company, including Atlantic Music Group CEO Julie Greenwald, who herself penned a farewell letter to staff yesterday (Sept. 26). Elliot Grainge will take over as CEO of Atlantic Music Group beginning Oct. 1.
Read Lousada’s full note to staff below.
Hi everyone,
Monday will be my last day as CEO, Warner Recorded Music.
Although I’ll be working in an advisory capacity till the end of January, it feels like this is the moment to thank you all for what has been the most extraordinary experience and the most incredible honour.
My entire career, from my indie roots through my 21 years here at Warner, has been guided by one simple truth: People who can make music that moves people are special. The world needs them. It’s a privilege to help those artists be seen, heard, appreciated and, ultimately, to succeed.
So I want to express my gratitude to all the artists and managers who put their faith in me and in Warner to support them. Being there from the beginning with superstars like Ed Sheeran, Bruno Mars, Dua Lipa, and David Guetta; our partnerships with legends like Coldplay and Linkin Park; being entrusted with the catalogs of icons like David Bowie, Fleetwood Mac, Madonna, and Led Zeppelin; seeing artists like Megan Thee Stallion, Lil Uzi Vert, CKay, Zach Bryan, Myke Towers, Gunna, Lizzo, Jack Harlow, Benson Boone, and Charli xcx make their mark on culture…these and so many others are memories and relationships I will treasure.
I want to give huge respect to everyone who champions artists every day by supporting their creativity, telling their stories, fuelling their fandom, and taking them global, as well as the unsung heroes protecting artists’ rights, getting them paid, and making sure all of us are equipped to do our best work. Everyone here plays their part and, whatever your role, know that I see you and I appreciate you. It has been my privilege to work with you and to lead you.
I would like to thank Len for backing Warner, and to wish him, Robert, and the WMG leadership team every success in steering this unique and historic company forward.
For all of you taking Warner into its next era, remember that, at its very best, music is the sound of change. What the most iconic artists and the most enduring businesses have in common is evolution. Sometimes that’s exhilarating, sometimes it’s messy and difficult. I encourage you to embrace ALL of it because it’s when we challenge ourselves to move forward that artists win, fans win, and we win. Ultimately, music has to win. It’s just too important not to.
Whatever my next era looks like, I’ll always be rooting for you and I hope many of our paths will cross again.
For now, I’m going to go and put a record on…
Thank you, all of you, for everything.
Max
Warner Music Group is going through a transformational year by cutting costs, reducing its headcount and restructuring some label groups to save an estimated $260 million on an annualized basis, the company disclosed Thursday (Sept. 19).
According to a Warner Music Group SEC filing that details the reduction in headcount and financial impact of the company’s ongoing restructuring plan, the total head count reduction increased from 600 after February’s announcement to 750 people with Thursday’s update. The filing did not specify that all 150 additional job losses could be attributed to the Atlantic Music Group layoffs announced Thursday. Billboard’sinitial report on the layoffs stated that between 150 and 175 people would be affected.
WMG also updated the pre-tax cost savings, on an annualized basis, from “about $200 million” to “about $260 million,” meaning the company expects to save an additional $60 million annually. The restructuring plan’s severance costs increased $70 million to $210 million. The “significant majority” of severance payments and other termination costs from this year’s restructuring are expected to be paid by the end of fiscal 2026, according to the filing. WMG will pay approximately $30 million in the current fiscal year (ending Sept. 30) and about $85 million in fiscal 2025.
Trending on Billboard
“WMG is transforming swiftly this year, in a fast-paced, fiercely competitive industry,” CEO Robert Kyncl wrote Thursday in an internal memo to staff. “As always, delivering outstanding results for artists and songwriters is our highest priority in all our choices.”
WMG began its restructuring plan in February by announcing it would sell its owned and operated media properties and eliminate some corporate and support roles. As Billboard reported at the time, WMG reduced its headcount by 10% of the company’s workforce, or 600 people. Not all of that reduction in staff was the result of layoffs, however. Uproxx, HipHopDX and Dime Magazine were sold to a duo of media veterans: Uproxx founder and CEO Jarret Myer and Complex founder and CEO Rich Antoniello, in consortium with musician will.i.am.
This latest round of layoffs came two weeks before 10K Projects founder and CEO Elliot Grainge assumes the position of Atlantic Music Group CEO on Oct. 1 (the first day of WMG’s new fiscal year). Atlantic chairman/CEO Julie Greenwald announced her departure just five days after WMG announced Grainge would take the helm. Separately, Max Lousada, the London-based CEO of recorded music for WMG, stepped down and his role was eliminated. Kevin Liles, current chairman and CEO of 300 Elektra Entertainment, is also exiting the company without replacement.
Atlantic’s ranks were further thinned on Thursday with the departures of high-level executives at both Atlantic Records and Elektra Records, including Atlantic executive vp/GM Paul Sinclair and co-president of Black music Michael Kyser, as well as head of marketing Grace James, head of press and media Sheila Richman and head of touring Harlan Frey. At Elektra, head of business and legal affairs Margo Scott, head of marketing Katie Robinson, head of sales and streaming Adam Abramson, head of promotion and streaming Aimee Vaughan-Fruehe and co-head of Roadrunner Records Chris Brown were all also let go.
Atlantic Records announced more staff layoffs on Thursday (Sept. 19) as the process of remaking the company continues.
“I want to acknowledge the hard work, passion, and creativity of everyone across Atlantic, 300, and Elektra,” CEO Robert Kyncl said in a staff memo obtained by Billboard. “In particular, I want to thank the people who will be leaving us. You’ve made an indelible mark on this company and the careers of the extraordinary artists you’ve championed. Words never cut it in these situations but we’re forever grateful for all your contributions and achievements over the years.”
These cuts follow the announcement in August of a significant executive restructuring: 10K Projects founder Elliot Grainge will take over as CEO of Atlantic Music Group, starting October 1. As part of his promotion, 10K will move under the Atlantic Music Group umbrella — joining Atlantic Records, Elektra and 300 — while veteran executive and longtime Atlantic leader Julie Greenwald will be heading for the exit. Kyncl’s memo promised that the company will “be unveiling a new dynamic structure for the label group” next week.
The memo did not say how many Atlantic employees were being let go. Sources expect the layoffs to be significant and to affect multiple departments.
Trending on Billboard
Kyncl has been busy retooling WMG since he took over at the start of 2023. That metamorphosis has come hand in hand with layoffs; Atlantic’s latest cuts are the fourth round in the extended Warner Music Group family in roughly 18 months.
The company laid off 4% of staff, or about 270 people, including several at Atlantic, in March 2023. “To take advantage of the opportunities ahead of us, we need to make some hard choices in order to evolve,” Kyncl wrote in a memo to staff at the time. In February of this year, WMG laid out plans to cut another 10% of staff, primarily from the company’s media properties — like Uproxx and HipHopDX, which it acquired in August 2018 — as well some in corporate and support roles.
The same month, Atlantic initiated an additional round of layoffs, albeit much smaller in scope, cutting roughly two dozen employees in the radio and video departments. “As hard as it is to say goodbye to our friends and valued colleagues, it is critical that we keep retooling the company and add new resources and skill sets to our business units,” Greenwald wrote in an email at the time.
Greenwald is now on her way out. So is WMG CEO of Recorded Music Max Lousada; his role is not being replaced. Similarly, 300 Entertainment co-founder and current chairman/CEO of 300 Elektra Entertainment Kevin Liles is also exiting the company without replacement. Other executives are also expected to depart as part of this restructuring, sources say.
This is just part of the change sweeping the company as Kyncl seeks a “flatter structure.” Warner Records will now also oversee Warner Music Nashville moving forward, and the heads of global catalog, marketing, ADA (distribution) and WMX (the fan and merch division) will all report directly to Kyncl.
All three major label groups have gone through changes this year. In February, the Universal Music Group reorganized its label divisions into a loose East Coast-West Coast structure, aligning Republic, Island, Def Jam and Mercury under Republic Recording Company chairman/CEO Monte Lipman and Interscope, Geffen and Capitol under Interscope Capitol Labels Group chairman/CEO John Janick, moves that came with some significant layoffs. Sony Music also underwent layoffs this year, though not to the same extent as the other two companies, sources have said.
Read Kyncl’s full memo below:
Hi everyone,
Since we announced Julie would be stepping down, we’ve been thoughtfully working on how to evolve Atlantic Music Group for the future. Next week, we will be unveiling a new dynamic structure for the label group. Elliot begins as CEO of AMG on October 1.
As part of this reorganization, we will unfortunately be saying goodbye to talented people. I know you have been waiting to hear the plan, and rather than carry out changes piecemeal, we decided to make these difficult choices in one go.
Today will be a tough day, and by 9pm ET you will have heard if your job is affected. Your leaders and the People team will provide you with all the important details. We are committed to helping those impacted through this with the utmost respect, and supporting them with a runway during the transition.
I want to acknowledge the hard work, passion, and creativity of everyone across Atlantic, 300, and Elektra. In particular, I want to thank the people who will be leaving us. You’ve made an indelible mark on this company and the careers of the extraordinary artists you’ve championed. Words never cut it in these situations but we’re forever grateful for all your contributions and achievements over the years. We wish you the very best and know that you will continue to do great things in your next chapters.
WMG is transforming swiftly this year, in a fast-paced, fiercely competitive industry. As always, delivering outstanding results for artists and songwriters is our highest priority in all our choices.
As I mentioned, you will hear more about our plan for AMG next week, with Elliot making an announcement about the leadership team. In the meantime, we have so much incredible music in the market, and some outstanding projects on the way. Your continued support of teammates is amazing, and your run-through-walls focus on the music is extraordinary.
Thank you and take care,
Robert
Warner Music Brazil has introduced a series of measures aimed at boosting its impact across a range of local music genres, the company announced today (Aug. 29). These initiatives demonstrate a strong commitment to widening the company’s presence in the competitive music market.
“As we elevate our regional approach to be closer to our global leadership, expanding our presence in Brazil, the world’s ninth largest music market, is crucial to the company’s growth,” Alejandro Duque, president of Warner Music Latin America, said in a press release. “We’ve always had a strong presence in the country, but we know we need to do more to support its diverse musical genres.”
In an effort to support that vision, Leila Oliveira, president of Warner Music Brazil, has strengthened her leadership team by appointing Tatiana Cantinho as general manager and Mariana Frensel as director of marketing. Both appointees have commenced their roles and will be based at the company’s headquarters in Rio de Janeiro.
“Warner Music Brazil is reinventing the role of the record company in our rapidly changing industry. We need to be more nimble than ever when it comes to connecting artists with fans and building a wave of support for our talent that can be turned into a sustainable career,” Cantinho said. “Music can travel further and faster than ever before and we want to help artists from different backgrounds take their place centre stage.”
Cantinho brings over two decades of industry experience to her role. Her career includes regional positions at Sony Music and leadership at the independent label Som Livre (since purchased by Sony), before she founded her own music company, Stamina Musical, in 2022.
Meanwhile, Frensel returns to Warner Music Brazil, where she previously served as international label manager from 2011 to 2015. Her latest role comes after an eight-year tenure at Match Group, where she most recently held the position of director of revenue and growth for new verticals.
“I’m super pleased to be returning to Warner Music at this key moment in its development,” Frensel said. “Leila has a vision for how a modern music company should evolve and the importance of artist narratives is at the heart of it. I want to bring my experience to bear as our new genre-focused teams get to work supporting Brazil’s most vibrant talent.”
“This is a key moment for Warner Music Brazil,” Oliveira said. “The arrival of Tatiana and Mariana strengthens my leadership team and together we’ll rewrite the rules about how the industry operates here. Our new genre-specific teams mean that we’ll be able to superserve artists better than ever and help all types of Brazilian talent connect with fans here and around the world.”
At the same time, Warner Music Brazil is restructuring its A&R and marketing departments to better focus on key Brazilian genres such as sertanejo, forró, samba, funk and urbano music. Marcos Kilzer will continue to lead the A&R team as its director, collaborating closely with Cantinho.
Additionally, the newly-formed Creative Services team, led by Thiago Abreu who reports directly to Oliveira, will support both marketing and A&R departments while being heavily involved with brand partnerships and live music projects.
These adjustments are among several significant initiatives undertaken by Oliveira since she became the first female label head in Brazil in 2022. Just last month, following the establishment of the new Warner Music Space headquarters in Rio’s Barra da Tijuca, Oliveira facilitated an investment with ADA Brazil in Sua Música group, blending efforts to nurture regional talent.
According to the latest IFPI figures, Brazil ranks as the ninth-largest recorded music market globally, valued at $573.6 million and growing at 13.39% last year, with “87.1% of industry revenues coming from streaming channels,” according to a press release.
Warner Music Brazil is home to artists like IZA, Pedro Sampaio, Ferrugem, MC Hariel, MC Ryan SP, Kayblack, MC IG, MC Don Juan, Azzy, Marvvila, Thiago Freitas, US Agroboy, João Bosco & Vinícius and Clayton & Romario.
UPDATE (Aug. 26): Shaboozey’s ex-record label sued him back after the singer filed his own lawsuit against the company, accusing him of “fraud” to avoid fulfilling his contractual obligations. You can read more here.
PREVIOUSLY (Aug. 23): Amid the chart-topping success of “A Bar Song (Tipsy),” Shaboozey is now suing music publisher Warner Chappell — claiming the company is stonewalling his efforts to exercise a contractual provision that would give him an early exit from his deal.
In a case filed Wednesday (Aug. 21) in Los Angeles, the country star (born Collins Obinna Chibueze) claims his publishing administration deal with Warner-Tamerlane (a unit of Warner Chappell) contained an acceleration clause — meaning he could repay 110% of advances to speed up the expiration of the deal.
Trending on Billboard
Shaboozey’s lawyers say he invoked that clause last month — perhaps unsurprisingly, given the massive success of “Bar Song.” But they claim Warner has, thus far, declined to even tell him how much is owed.
“To date, Warner has refused to disclose to plaintiff the total amount of the unrecouped balance of prior advances it made,” writes Todd Bonder, the star’s attorney. “Warner’s conduct violates the administration agreement signed between the parties.”
The lawsuit comes amid a breakout year for Shaboozey. “A Bar Song,” a genre-blending hit that interpolates J-KWON‘s 2004 rap hit “Tipsy” into a bouncy pop country track, has spent six weeks at No. 1 on the Billboard Hot 100, tying the longest chart-topping stint for a song in 2024.
In his complaint, Shaboozey also names his former record label, Kreshendo Entertainment, as a defendant. He claims the company — which he left in 2019 before signing a new record deal with Empire — is the reason Warner is refusing to turn over the crucial information.
“Kreshendo and [others] have instructed Warner not to provide plaintiff the total unrecouped balance related to advances made with respect to the compositions or has refused to authorize Warner to provide such information,” his lawyers write.
The dispute appears to turn on Shaboozey’s argument that he personally took over Kreshendo’s role in the contract with Warner after he terminated his label. In his legal filings, he says that Warner “has not agreed” with such an interpretation.
The lawsuit also claims that Kreshendo released three separate Shaboozey songs in 2019 after he had already terminated the deal — “More,” “Joan Jett” and “Prosperity” — without his permission.
A spokesman for Warner Music Group did not immediately return a request for comment. A spokesperson for Kreshendo could not immediately be located for comment. A publicist for Shaboozey did not return a request for comment.
For most of the last decade, three labels have dominated the U.S. recorded music business: Universal Music Group’s Republic and Interscope, and Warner Music Group’s Atlantic. So on Aug. 1, when Warner announced that as part of a management shakeup it had appointed Elliot Grainge as CEO of Atlantic Music Group, the move came as a surprise. Co-chairmen Julie Greenwald and Craig Kallman had led Atlantic for two decades, through the hardest years of the music business, to become two of the most respected executives in the industry. Now, after two years of declining market share, leadership will pass to a 30-year-old executive who comes from outside the major label system.
Within a week, Greenwald, who had been elevated to chairman of Atlantic Music Group, announced that she plans to leave at the end of January. (Kallman, one of the all-time A&R greats, will stay on as CEO of Atlantic Records, under Grainge.) And the entire business seems to be wondering, What does this mean? It’s a big gamble for WMG CEO Robert Kyncl. Grainge, the son of UMG chairman/CEO Lucian Grainge, has an impressive track record of success on a smaller scale, but not much on the kind of scale major labels usually operate. What’s going on?
Trending on Billboard
The obvious answer is that this is the acceleration of a youthquake in the music business. Streaming payouts are determined disproportionately by younger listeners who spend more time online. The industry’s top executives aren’t getting any younger, and the music business has never been much for succession planning.
One industry executive I spoke with asked sarcastically if I thought Grainge was familiar with Ruth Brown, the R&B icon who had so many hits in the 1950s that Atlantic was nicknamed “the house that Ruth built,” in a nod to Yankee Stadium. I have no idea, but I also know that most young listeners don’t, so, as much as it pains me to say this, maybe that doesn’t matter so much. Greenwald is now regarded as an industry leader, but she wasn’t so much older than Grainge is now when she became president of Island Records in 2002.
Grainge does seem to have a skill for identifying artists who are building an audience online and putting resources behind them in a smart way. Is his 10K Projects, which became part of WMG last year, a model for the label of the future? He hasn’t built the careers of any household-name superstars, which has been the traditional strength of the majors, though some of the acts he signed, like Ice Spice, are still on the rise.
As recently as two years ago, the trend lines seemed clear: Hip-hop was conquering the world, not only growing but also shaping emergent genres from Latin urbano to Afrobeats. Now it’s a bit harder to make sense of what’s working. Pop is getting bigger, but so is country. Latin is growing faster than ever, but tastes are changing there, too. And fans are more fickle than ever. Katy Perry’s comeback is faltering. The new album from Dua Lipa, which seemed like a sure thing, has had a slow start. Are listeners just hungry for new artists? Maybe. But Sabrina Carpenter released her first album before Dua did. Only Taylor Swift endures. As for everyone else, all we are is dust in the wind.
Amid this uncertainty, it’s tempting to think that someone must have the answers — especially if that person is young. Sure, the feeling goes, I don’t understand what’s happening, but I bet that guy does. And maybe he does! Grainge built a successful company by focusing on finding, developing and marketing talent in the digital world. The major labels have generally made bigger bets that paid off, or didn’t, in a bigger way. That’s harder to do now — there are fewer real superstars partly because there are fewer real paths to superstardom.
It may be more important than ever, though. Hit albums remain popular longer than ever, boosting the success of previous music by the same artist. Of the top 10 albums of the first half of 2024, Morgan Wallen had two of them, one each from 2021 and 2023; Zach Bryan’s 2023 album was the 8th biggest of the first half of 2024, so he could well have two of the biggest releases this year. (That top 10 list for the first half of 2024 has only seven artists.)
That’s the kind of success Grainge needs to bring to Atlantic, whether it comes from new acts or old ones, big bets or small ones the label doubles down on, or some combination of the two. All of the questions this raises about the future of the music business — What does this mean? What’s going on? — will be answered, at least to some extent, by how he does at that.