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Try using some of your favorite songs on the short-form video app Triller, and you’ll be hard pressed to find what you’re looking for.
On Thursday, the music catalogs for Universal Music Group, Warner Music Group, Sony Music and Merlin — which provides digital licensing to many top independent labels and distributors — were removed from the platform.
A Triller spokesperson says the platform is “reassessing each of our label deals as they come due as our catalogue music usage is a small fraction of our overall business with creators.
“Some labels are more used than others and if we can make financial arrangements which make sense for the platform, on a label by label basis, we will. In other cases the usage does not justify the cost.”
The news follows a lawsuit filed by Sony Music Entertainment in August, claiming Triller had “historically failed to make payments in a timely manner” but that this issue got even worse in March 2022 when Triller “failed to make any monthly payments required under the Agreement, totaling millions of dollars.”
A source at one of the other major music companies says similar breach of contract and failure to make payments, including “millions and millions in past due royalties,” was behind Triller’s decision to pull these catalogs. The Triller spokesperson, however, called that claim “false and grossly inaccurate.”
Representatives for Universal, Warner, Sony and Merlin declined to comment.
In a Thursday morning email, Merlin’s senior director of business and legal affairs alerted members that Triller had “commenced the takedown of Merlin content.” He continued, writing “at this stage we do not believe that Merlin is the only licensor/content provider to have had content taken down. The term of our current agreement with Triller has now expired. We will update members as soon as we can regarding renewal discussions.”
Merlin members include Secretly Group, Mom + Pop, Monstercat, Symphonic, Ninja Tune, Beggars Group, FUGA, ONErpm, Domino, SubPop, Vydia and more. The Triller spokesperson told Billboard when asked about the Merlin email, “We are in active conversations with Merlin and expect to renew our relationship and continue our friendly and successful partnership.”
“As Triller has grown and expanded its portfolio of services for creators as an open-garden platform, we are recalibrating some of our partnerships with a focus towards showcasing talent and maximizing their monetization,” that statement continued.
A glance at Triller’s Discover Music page shows that there are now few official music options available after the takedowns, and the promoted new releases and top picks are largely artists with no label affiliation. The only traces left of some label-signed artists are available through searching “OG Sounds,” which are typically user-created soundtracks like remixes that sometimes contain copyrighted material, or if a signed artist collaborated as a feature on a song released independently.
The public rift between Triller and the music business dates back to about 2020, when chairman and CEO of the National Music Publishers’ Association (NMPA) David Israelite criticized the app in an Instagram post, saying Triller needed to fully license its members works. “It’s a simple proposition – license songs before you use them,” he wrote.
In November of that year, Wixen Music Publishing filed a 15-page lawsuit against Triller, suing the company for $50 million dollars, stating in the complaint that Wixen felt encouraged when Triller’s CEO appeared to agree with the NMPA’s criticism that summer, but then, after months with no agreement reached, Wixen opted to file the lawsuit.
In the indictment, Wixen alleged Triller had “brazenly disregarded copyright law and committed willful and ongoing copyright infringement,” of its more than 1,000 song catalog. The lawsuit was dismissed in February 2021.
Eventually, in March 2021, Triller came to an agreement with the NMPA on behalf of its members.
Also in early 2021, Universal Music abruptly pulled its catalog from Triller, saying the app “shamefully withheld” artist payments. A source familiar with the matter told Billboard at the time that the payments UMG claims Triller is withholding went back several months. Three months later, the two companies announced a new, worldwide licensing agreement, spanning recorded music and publishing and restoring the UMG catalog to the app.
This August, Timbaland and Swizz Beatz also sued Triller for failing to make payments due on the sale of their popular Verzuz livestream series the year prior. They claimed the platform still owed them $28 million from the deal 18 months later. That lawsuit was settled in September.
Outside of music, there have been other claims against Triller for allegedly failing to make owed payments. Boxing journalist Dan Rafael reported that Triller had not fully paid several fighters and crew members from a May 2022 fight. In August, the Washington Post reported that Triller “promised millions to Black creators” to use the app as part of a paid influencer program, but “nearly a year after…its payments to many creators have been erratic — and in some cases, nonexistent.” In September, it was also sued by a smartphone app consulting firm that said it was owed more than $132,000 in unpaid fees.
Over the past two years, Triller has repeatedly announced plans to go public but has so far failed to do so — initially through the formerly-popular ‘SPAC’ merger process, and then in June this year filed paperwork with the U.S. Securities and Exchange Commission indicating that it plans to take a more traditional IPO route. In late September, the company announced it had secured $310 million from Luxembourg-based private alternative investment group for a 36-month term following a public listing of Triller’s common stock and would aim for a public listing by early in the fourth fiscal quarter (October-December).
MILAN — Warner Music Group has hired Pico Cibelli, a Sony Music Italy executive involved in the global breakthrough of rock band Måneskin, to helm its Italian label.
Cibelli, who will be based in Milan, will take over as president of Warner Music Italy, which Marco Alboni led for nine years. Cibelli will start in the role “in the near future” and report to Simon Robson, president of international, recorded music for Warner Music Group, the label said in a press release.
Cibelli spent more than a decade at Sony Music Italy, where he worked in A&R and helped develop the company’s frontline domestic artists. According to Italian media reports, Cibelli’s early involvement with breaking Måneskin could have played a major role in Warner’s decision. While at Sony, he was instrumental in hiring A&R Fabrizio Ferraguzzo, who has acted as Måneskin’s manager since June 2021.
Before joining Sony in 2011, Cibelli spent 10 years at Universal Music Group, first as television marketing manager and dance music A&R, then as A&R manager. Cibelli previously worked in an independent, family-run record store; as a DJ/producer; and later as an executive at local independent distributors Dig It International and Self Distribuzione.
The announcement of Cibelli’s appointment comes in a week when Warner artists hold two spots on Italy’s Top 10 album charts: Trenches Baby by Milan-based trapper Rondodasosa, whom Alboni signed, and The Beatles Songbook from veteran singer Mina.
“The success of artists such as Måneskin,” Cibelli said in a Warner Music press release, “has shown that Italian artists can take the world by storm, something we’ll see more of in the years ahead.”
Robson, in a statement, said that Cibelli “has a proven track record of developing artists and maximizing their potential.”
As a source of domestic talent, Italy is one of the strongest markets in the world. In 2021, Italian acts accounted for 76 % of the annual Album Top 100 compiled by FIMI, the local federation for the recorded music industry with which major companies and some local independent labels are affiliated. The Italian music market regained the No. 10 spot in the world in 2021, according to FIMI, showing an 18.33% increase from 2020 and a turnover of 153 million euros ($170.8 million) in the first half of 2022, with digital sales accounting for 83% (revenues from subscription streaming rose by 13.7%).
Alboni has not indicated where he is heading next, saying only on his LinkedIn page that he will soon start a new job as a music industry executive. He has worked as an artist manager and had prior stints with EMI Music Italy, PolyGram and Virgin Music Italy before being appointed Warner Italy’s chairman and CEO in 2013 when WMG acquired EMI Music Italy.
Warner Music Group’s double-digit fourth quarter revenue growth served as the capstone in chief executive Stephen Cooper‘s long-term growth strategy, and is a signal more growth to come, Cooper said on Tuesday.
YouTube’s former chief business officer, Robert Kyncl, will replace Cooper as WMG’s new CEO on Jan. 1, though Kyncl will share the top duties with Cooper for his first month.
Cooper’s 12-year-tenure at WMG has been marked by an early embrace of digital streaming, major expansion into markets in Asia, the Middle East and Africa, and taking the company public roughly two-and-a-half years ago, among other things.
“I’m very proud of the progress we’ve made over the past 10 years,” Cooper said on a call with analysts Tuesday. “As I look out on the next 10 years, I believe we’re at the doorstep of a new golden age of music. As the ecosystem becomes more complex and exciting new business models emerge, our role as the connective tissue between artists and fans will only become more prominent and important.”
WMG reported quarterly revenues rose 16% at constant currency to $1.5 billion in the fiscal fourth quarter ended Sept. 30, with solid growth across all business lines, including a 39% and a 48% jump in digital and performance revenues respectively. Investors welcomed the news, pushing Warner’s stock up 15.2% to $31.08 as of 10:30 a.m. in New York.
Cooper said he sees the company’s future momentum coming from continued growth in the number and price of streaming subscriptions, penetrating deeper into new emerging markets and investing more in new digital technologies.
WMG now has partnerships with more than 200 streaming services and operates in 70 countries around the world. While executives decline to put a number on how much WMG may make from recent subscription price hikes by Apple Music and Deezer, they said they expect it to result in other streaming companies raising prices.
“I’ve consistently told you that streaming revenue would continue to have significant runway, that we would have price increases and ongoing subscriber growth, and that emerging platforms would continue to expand,” Cooper said. “We’re now seeing all these come to fruition.”
WMG’s annualized revenue from emerging streaming platforms, include deals like the recent one reached with Meta, topped $370 million this quarter, Cooper said.
The fourth quarter saw big releases Lizzo, whose album Special was her first to hit No. 1 on Billboard’s Top Album Sales chart, as well strong carry-over sucess from some of WMG’s superstars like Ed Sheeran, Dua Lipa and Silk Sonic.
The company’s pipeline remains strong, Cooper said, with first quarter releases expected from Paramore, Aya Nakamura, Cardi B, Roddy Ricch and others.
However, Cooper said he expects the outsized monetary impact of hit singles and albums to continue to decrease in the coming years as the company works with talent in more geographic markets and diversifies its revenue streams.
“As we’ve broadened and deepened our artist roster and prioritized a global approach to domestic music, our revenue composition has evolved,” Cooper said. “A decade ago, our top 5 artists generated over 15% of our recorded music physical and digital revenue. In 2022, they generated just over 5%.”
One new geographic market where Cooper said WMG plans to expand is in Eastern Europe. In recent months, WMG invested in the Polish concert and festival promoter BIG Idea, the Serbian record company Mascom Records, and participated in launching OUT OF ORDER, a new label for Eastern European artists.
Warner Music Group, helped by digital revenue growth across recorded music and publishing, reported quarterly revenues rose 16% at constant currency (9% as reported) to $1.5 billion in the fiscal fourth quarter ended Sept. 30, the company announced Tuesday (Nov. 22). Adjusted earnings before interest, taxes, amortization and depreciation (EBITDA) grew by 16% to $276 million.
In his final quarterly earnings after 12 years as Warner Music’s chief executive, Steve Cooper said, “Against the backdrop of a challenging macro environment, we once again proved music’s resilience, with new commercial opportunities emerging all the time. We’re very well positioned for long-term creative success, and continued top and bottom line growth. We’re excited to have Robert Kyncl joining next year as WMG’s new CEO, as we enter the next dynamic phase of our evolution.”
WMG’s share price edged slightly lower in pre-market trading, down 0.88% to $26.98 on Tuesday at 8:19 a.m. New York time. Warner Music executives will discuss the company’s quarterly and full year results on a call with analysts at 8:30 a.m. ET.
Digital revenue grew 12.3% at constant currency or 6.8% as reported to $989 million, including a $38 million settlement related to certain copyright infringement cases. Total streaming revenue increased by 8.9% at constant currency (3.5% as reported) due primarily to driven by music publishing streaming revenue, which rose by 37.0% at constant currency (or 29.8% as reported).
Recorded music streaming revenue increased by 4.7% at constant currency, but decreased by 0.4% as reported. Digital’s share of total revenue comprised 66.1%, compared to 67.3% in the prior-year quarter, due to the double-digit growth of recorded music artist services and expanded-rights and licensing revenue.
Music publishing revenue improved 32.3% at a constant currency (23.9% as reported) to $254 million on the strength of digital and performance revenue. Digital revenues jumped 39.5% at constant currency (32.5% as reported) to $159 million. Streaming revenue increased 37.0% in constant currency (29.8% as reported) helped by streaming services and new digital deals.
In WMG’s recorded music segment, revenues rose 13.1% at constant currency (6.1% as reported) to $1.25 billion. Expanded rights revenue improved 33% to $204 million at constant currency (21.4% as reported) due to an increase in concert promotion revenue following the disruption of the touring business in 2021.
Physical revenue of $123 million was up 6% at constant currency but down 3.1% as reported, primarily due to volatility in exchange rates that offset higher vinyl sales and strong sales in Japan. Digital revenues of $830 million rose 8.1% in constant currency (up 2.9% as reported), and now represents 66.7% of total recorded music revenue compared to 68.9% in the prior-year quarter.
Music publishing contributed nearly 17% of overall company revenues in the quarter, up slightly from the year-ago quarter when music publishing made up 15% of overall revenues. Recorded music revenue contributed 83% of overall revenues in the quarter, down slightly from the year-ago quarter when recorded music revenues comprised 85% of overall company revenues.
The Warner Music Group has launched a new label, called OUT OF ORDER, that will highlight artists from emerging markets including Africa, India, the Middle East, Southeastern Europe and the Eastern Mediterranean, the company announced Thursday (Nov. 10). The new label will partner with Parlophone in the U.K. and Atlantic in the U.S., as well as the local WMG affiliates in respective markets, according to a press release; its tagline is “a diverse collection of sounds in no particular order.”
OUT OF ORDER plans to put a spotlight on several different types of creators in each region with a focus on “dance-leaning records,” with artwork created by local designers and a weekly radio show with hour-long DJ sets inspired by tracks from each of the albums, with the mixes hosted on Audiomack, SoundCloud and YouTube.
“I’m incredibly passionate about this initiative,” said Selina Chowdhury, Warner Music’s head of emerging markets, who will run OUT OF ORDER, in a statement. “There’s so much unique and inspired international music that often doesn’t have a global platform. We hope that OUT OF ORDER will take music fans on an adventure and introduce them to sounds and artists they might not otherwise have had the chance to hear.”
Selina Chowdhury
Courtesy Photo
The label’s first release, out Thursday, is called OOO: AFRO, which Warner says “features a mix of Afrobeats, Amapiano and House tracks from the likes of Da Capo, Makhadzi, Moelogo, Oscar Mbo, P-Priime and Rouge,” with artwork by Ghanaian designer Nyahan Tachie-Menson, who said in a statement, “There’s so much going on with the music emerging from individuals on the continent; something we can all relate to is the vibrancy of the music, and that’s what I captured here.”
“Africa is a continent rich with various sounds, which have for the longest time influenced popular culture, but is only now really being spotlighted for its contributions,” Warner Music Africa’s creative lead Garth Brown said in a statement about the release. “This album showcases some of the music from across the continent. It’s an opportunity to give the world a peek of what Africa sounds like.”
OUT OF ORDER’s next release, set for early next year, will be in partnership with Warner Music India.
Moon Projects, a new label and creative agency, has expanded into the songwriter side of the business by launching a co-publishing partnership with Warner Chappell Music. Called Moon Projects Publishing, it is the second joint venture started with a major music corporation for the Mary Rahmani-founded start-up, founded in 2021. Earlier this year, their Republic Records-partnered label operation saw major success with signee Em Beihold, the then-unknown pop act whose song “Numb Little Bug” hit No. 1 on both Billboard’s Adult Pop Airplay and Emerging Artist charts.
Rahmani, who is known as TikTok’s first-ever music hire, hopes to build out her newly founded Moon Projects as an artist services company adept at meeting the challenges of the modern day music industry. This includes offering label or publishing services through their jvs as well as creative agency assistance, providing curation, strategy and digital consulting for short-form video content to artists hoping to tap into the creator economy.
To date, Moon Projects Publishing has not signed any songwriters, and artists who signed to the Moon Projects label will not necessarily sign for publishing as well. Em Beihold, for example, recently announced her signing to Sony Music Publishing, but for the eventual members of its roster, the new publishing arm will combine “white-glove service and personal attention” common with boutique publishers with the “resources of one of the biggest music publishers in the world,” says the company in a statement.
“Mary and Moon Projects have a unique and innovative approach in this space. We’re excited to partner with them as they move into the music publishing side of the business. We look forward to seeing what we can accomplish together for songwriters and artists at all stages of their careers.” – Warner Chappell Music SVP of A&R and Venture Partners Rich Christina
“Warner Chappell Music is a true industry leader in music publishing and rights management. I am honored to be working with them in this joint venture,” added Rahmani. “Publishing was built to serve artists at every stage of their career by providing innovative and equitable catalog management strategies. I’m so excited to usher in this new era of Moon Projects, and to open up even more opportunities to work with the artists we care about and believe in. With the support of Warner Chappell Music, Moon Projects will continue to establish itself as a place where artists can grow and thrive.”
A new New York City law requiring employers to disclose salary ranges in job postings has officially gone into effect this week, with music companies hiring in the city mandated to comply. On the first day of the law, a picture of at least one of the major music companies’ salary ranges has come into focus.
The day the law went into effect, several companies were criticized for overly-broad salary ranges that effectively subverted the point of the regulation, which was designed to give prospective employees insight into what they could be expected to earn at different companies in the city and address salary discrepancies between men and women and for people of color. The Wall Street Journal, for instance, posted reporting and producing jobs with ranges between $40,000 to $160,000; tech jobs at Amazon were anywhere from $88,400 to $185,000; while Citigroup initially posted some job openings as between $0 and $2 million, before revising them to a range of $59,340 to $149,320.
Among the three major labels, only Warner Music Group (WMG) seems to have complied with the law as of yet. The company has 11 listed job openings on its website across its three locations in New York City, though 10 of them relate to its Spring 2023 WMG Emerging Talent Associate Program, a part-time paid internship program that lists a range from $15 to $30 an hour for between 20 and 25 hours per week. Its final opening, for a digital marketing and content creation manager, is listed at between $58,500 and $70,000 annually.
Sony, meanwhile, has more than 40 openings in its New York locations across all its operations, though not all positions appear to have salary ranges listed; most appear to ask the applicants for a desired salary target, as part of a standard-issue form through LinkedIn. (The law allows companies 30 days to comply after a complaint is registered before facing penalties. A rep for Sony tells Billboard the company will be complying.) It does list starting salaries for its fellowship program, a 24-month position with a starting salary of $70,000 per year.
Universal Music Group has some 16 openings across various divisions in New York, many at its merchandising division Bravado. Though each posting promises a “competitive compensation package including salary, benefits and generous 401k savings plan with company matching,” none lists a salary range. (A rep for UMG did not respond to a request for comment.)
In the independent sector, several New York-based companies have also listed ranges. Concord, for example, has three non-internship positions available in New York: a publishing paralegal ($70K-$80K); a publishing sync manager ($55K-$65K); and a director of business and legal affairs for publishing ($100K-$125K). BMG has two open New York-based positions: an investments/M&A manager ($80K-$90K) and a senior marketing manager ($70K-$80K). Roc Nation has two music-related New York-based openings: one for a senior director of event sponsorships ($135K-$180K) and one for a senior director of music partnerships ($135K-$170K). A senior coordinator position overseeing royalties and income tracking at Kobalt pays between $45,600 and $57,000 in New York City.
Businesses with three or fewer employees and temp agencies are not subject to the new requirement.
Former Warner Music Group executive and the Orchard co-founder Scott Cohen said on Tuesday (Nov. 1) he is taking a new job as chief executive officer of a fintech platform aimed at selling fractional shares in song catalogs.
Cohen, who stepped down from his role as chief innovation officer at WMG in September, said the aim of the new venture is to “fractionalize ownership of music royalties.”
Fractional shares are a familiar concept in finance, and brokerages like Robinhood and Fidelity Investments sell them as a way to buy a slice of a share for less than the price of the whole stock. The market for buying and investing in music publishing rights has traditionally been open to only the world’s largest music companies and, more recently, money managers.
Introducing fractional shares could change that by making it possible for more smaller investors to participate alongside the deep-pocketed private equity funds and major labels.
In an email to Billboard, Cohen said has already secured rights from major artists and catalogs, and his team is now working to build the platform’s technology.
“We have a very aggressive timeline,” said Cohen, declining to provide a specific date when the venture would launch to outside investors.
Prior to joining WMG in 2019, Cohen founded the Orchard with Richard Gottehrer in 1997 and built it into the largest independent distributor on iTunes when the download platform launched in 2003. Cohen and Gottehrer sold the Orchard to Dimensional Associates, the private equity arm of JDS Capital Management, the same year, and subsequently expanded into video, music licensing, marketing & analytics, royalty collections, sports media, neighboring rights and more.
In 2015, Sony Music Entertainment bought out Dimensional Associates for $200 million, and in 2017 merged it with RED into a single global distribution entity operating under the Orchard brand.
While Cohen’s new venture has not yet settled on a name, he described its aspirations and potential as “transformational” for the music industry.
“I am only interested in doing things at scale,” Cohen wrote.
Universal Music Group, Hipgnosis Songs Fund and other music stocks got a much-needed boost on Tuesday (Oct. 25) following news of Apple Music’s price hike, as investors bet it would trigger a wave of streaming subscription cost increases.
Universal Music Group’s stock closed 11.6% higher, Hipgnosis Songs Fund Ltd ended up 7.8% and Korean music companies SM Entertainment and HYBE finished the trading day 4.8% and 4.4% higher, respectfully, on Tuesday. On Monday, Apple announced that it was raising the standard U.S. and U.K. individual plan price to $10.99 from $9.99.
This 10% price hike — Apple’s first — comes amid high inflation and a darkening economic environment in many global markets. If Apple can raise prices at a time like this, that is a sign the music industry can charge more without turning off consumers, Wall Street analysts said.
“We see this as a further signal of the stickiness of music streaming subscriptions even in a weaker macro environment and believe the major markets will be able to absorb higher prices without leading to meaningfully higher churn,” Lisa Yang, Goldman Sachs’s head of European media & internet technology equity research, wrote in a note to investors on Tuesday.
“We believe that other major DSPs will likely follow suit with similar price increases in the near future, implying further potential upside to our music industry forecasts.”
Competitors Spotify and Amazon Music have already raised prices in some markets. Amazon Music raised the price of its unlimited individual plan for Prime members to $8.99 from $7.99 earlier this year.
Spotify, which will report earnings later Tuesday, raised the cost of its individual plans in the Nordics in 2021, although its standard plan for U.S. subscribers remains at $9.99.
“Despite positive management commentary around churn (with regards to recent price increases on certain plans/regions) as well as management’s views on pricing power over the long term, Spotify has highlighted the broader macro environment as a key consideration in terms of implementing price increases in the near term,” Yang wrote.
Apple’s price increase could also have positive impacts on the majors because companies like UMG and Warner Music Group typically get 65% of music-related revenues from streaming companies with a “high incremental margin,” Goldman estimates.
Music stocks have suffered in 2022 as the major U.S. market indices have fallen around 20% so far this year.
UMG’s share price of 21.10 EUR ($21.01 US) is down nearly 14% year to date, Hipngosis Songs Fund Ltd traded at 91.06 penny sterling ($1.03 US) and is down 28% so far this year. Meanwhile, Warner Music Group’s stock traded at $27.16 US, off almost 37% year to date.