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Music’s Top Money Makers: The Highest-Paid Executives and Stockholders at Publicly Traded Companies
Kang Hyo-won is not a marquee name in the music industry. The South Korean producer is better known as Pdogg, the studio wizard behind hits by K-pop supergroup BTS and other acts on the roster of Korean entertainment company HYBE. Because Kang played a key role in HYBE’s global success, his employer gave him 128,000 stock options in 2016 that turned into about $35 million when Kang exercised them. (All currency conversions to U.S. dollars in this story are based on the average 2021 exchange rate.) That made Kang the second-highest-paid music industry executive last year among those whose earnings are publicly disclosed. Yoon Seok-jun (aka Lenzo Yoon) and Kim Shin-gyu, co-CEO of HYBE America and chief artist management officer, respectively, also benefited from HYBE going public. Yoon nette...
Warner Music Sells $540M of Notes to Help Fund Three Acquisitions Worth $710M
Warner Music Group raised $540 million through a sale of 3.75% senior secured notes offering to help fund three acquisitions worth $710 million, the company announced Wednesday (Nov. 17). WMG will use the net proceeds and cash on hand for these acquisitions of “certain music and music-related assets,” or for “general corporate purposes” if it does not close on any of the deals, according to one of its SEC filings. The company has signed non-binding letters of intent for the three deals. WMG has signed non-binding letters of intent for the three acquisitions, which would have added additional revenue and adjusted EBITDA of $42.8 million and $34.4 million, respectively, to the company’s fiscal year ending Sept. 30, 2021. Those gains would represent a 0.8% increase to WMG’s $5.3 billion of re...
Matt Young Named President of UMG’s Bravado Merch Company
In his work at WMG, Young was a leading force in developing consumer engagement, marketing execution and revenue generation for the company’s artists. He brings over 20 years of industry experience in brand-building and artist services to UMG, with a focus on merchandising, e-commerce, retail, consumer product licensing, ticketing and customer relationship management. Prior to WMG Young worked at Bandmerch, where he served as GM of the New York office and as head of retail and A&R. Before that, he served in roles at Blue Grape Merchandising and indie labels Bush League Records and Earache Records. “I’m stoked to lead Bravado at this pivotal time and to build on the company’s reputation as the leader in our industry,” said Young in a statement. “Bravado is known for creating innovative ...
Streaming Is Reliable Revenue, So What’s Next for Warner Music and Other Labels?
In WMG’s earnings call on Monday, a word repeatedly came up when analysts probed for insights about the opportunities that await: metaverse. Thank Mark Zuckerberg for that. The term gained widespread attention since Facebook announced its name change its to Meta on Oct. 28 and detailed its plan to create a metaverse, a combination of augmented and virtual reality, where people interact with other users’ avatars in simulated worlds. Other tech titans share Facebook’s vision. Microsoft is also working on a metaverse for its Office products and Xbox gaming platform. Apple is reportedly working on a augmented reality glasses and “mixed reality,” a combination of AR and VR. WMG already has a metaverse play through a January investment in Roblox, a platform that hosts user-generated games. WMG a...
Scott Clayton Joins UTA as Co-Head of Global Music Division
Throughout his career, Clayton has worked with John Mayer, Zac Brown Band, Kings of Leon, Dead & Company, Train, My Morning Jacket, Michael Franti, Rodrigo y Gabriela and many others. He worked at CAA for 17 years as a co-head of their Nashville office, served as the co-chair with the Mayor of Nashville of the city’s Music City Music Council, and is a member of the Nashville Public Radio Board of Directors. “Scott is the epitome of what we look for in a leader at UTA: he is a strong advocate for artists and has a long history of supporting and mentoring colleagues,” said UTA CEO Jeremy Zimmer in a release. “Sam and David have done a great job building a world-class team and we are very excited for Scott to join us as we continu...
Timbaland Creates Bored Ape Yacht Club Metaverse Entertainment Brand
AIP’s Bored Apes will function similar to digital idols like Miquela, who acts as a front-facing digital performer for songs. Those who opt to purchase these AIP NFTs will gain access to exclusive perks, including merchandise, events, studio sessions, custom art and concerts, all contained within the metaverse. To bring these static NFT characters to life, AIP has enlisted the help of BRON Digital, which uses Epic Games’ Unreal Engine technology. This is actually the second bit of Bored Ape Yacht Club-related music news to arrive in just the past two days. On Thursday, UMG’s 10:22PM label announced it had formed the NFT “supergroup” KINGSHIP, which is also comprised of Bored Ape Yacht Club characters. Both projects arrive as interest in Web3 and...
It’s Time for the Country Music Association to Show Not Tell (Guest Column)
Like most things in American culture, country music actually has strong Black American influences. Instruments such as fiddles and harmonicas can be traced back to Black communities in the antebellum South. Additionally, the banjo, a staple in country music, originated in West Africa. The history of the Black cowboy has effectively served as a staple symbol of the country music industry and culture. However, the genre has been whitewashed and appropriated thanks to gatekeepers like the Country Music Association. Black people have been systematically excluded from country music to the point where they are often berated and persecuted for even participating in the industry. From experiences with fans to the music labels, Black country artists recount being called rac...
Music’s Latest Supergroup Is an NFT Project With Cartoon Apes
In a press release, the KINGSHIP project is billed as a “landmark, first-ever exclusive agreement to create a metaverse group.” Under the initiative, the team behind 10:22PM — a Web3, creator-focused record label founded by Celine Joshua — will develop and release new KINGSHIP music and products. Akin to pre-existing virtual idols like Miquela (or perhaps even a band like Gorillaz, who hid their human identities behind animated characters), KINGSHIP will be the front-facing digital performer used to cultivate a community and fanbase around the music. Jimmy McNeils, an avid NFT collector who goes by the username j1mmy.eth, is supplying the Apes for KINGSHIP from his personal collection, including the rare Golden Fur and Bluebeam characters. The initiative t...
Session Musicians Win Greenlight for $8M Royalty Fee Settlement With AFM, SAG-AFTRA
The lawsuit, filed by musician Kevin Risto in June 2018, accused AFM and SAG-AFTRA of essentially taking an illegal cut from the recording royalties that are paid to so-called non-featured artists — better known as session musicians. The two unions administer the Intellectual Property Rights Distribution Fund, which holds performance royalties from non-interactive digital streaming services like Pandora for the use of copyrighted sound recordings. The fund then distributes that money to session musicians, both union and non-union alike. Risto, a non-union musician, accused AFM and SAG-AFTRA of exploiting their control over the fund to improperly tack on a new 3% service fee, paid directly to the unions, before distributing that money. The lawsuit said the new fee was not in the best ...
Tencent Music Ekes Out 3% Revenue Gain After Tough Quarter
At the end of the quarter, QQ Music’s daily video views and viewers reached 100mm and 18mm respectively, representing triple-digit annual growth. Music streaming services may bear the name “music” but are increasingly “pan-entertainment,” a term TME used to describe competitors that lured away its “casual users” and caused monthly average users to drop from the second quarter. (Music users’ average revenue per user slid to 8.9 RMB ($1.39) from 9.4 RMB ($1.47) in the prior-year period.) In addition to focusing on videos, TME is building its live-streaming business, used by 10,000 musicians by the end of the third quarter, and long-form audio — audiobooks, podcasts — that reach 140 million users monthly, up 89% increase year over year...
Maxwell and His Musze Enter New Label Partnership With BMG
Added BMG president, repertoire & marketing, New York and Los Angeles Thomas Scherer, “Throughout his career, Maxwell has continually and thoughtfully raised the bar in his craft. He is central to what the team is building and accomplishing in BMG’s R&B and hip-hop repertoire. Welcome Maxwell … you’re very much a part of our family now, and we’re excited to help write the future chapters of your success.” Maxwell, who will be presented with the Legend Award at the Soul Train Awards later this month, launched his professional recording career in 1996 with debut album Maxwell’s Urban Hang Suite. The critically acclaimed, Grammy-nominated album, which is certified two-times platinum, spun off the hits “Ascension” and “Sumthin’ Sumthin’,” certi...
Live Nation Stock Hits New Highs After Encouraging Earnings
Business has grown from a virtual standstill in early 2020, to revenue of $2.7 billion in the third quarter of 2021. (That’s compared to $575.9 million in the year’s second quarter and just $184 million in the third quarter of 2020.) Investors with enough foresight and fortitude to buy stock at the pandemic low and hold their shares could have earned a six-times gain on their investment — and could make more as pandemic fears fade and fans show up for a full slate of tours over the next three years. Former Grateful Dead members touring as Dead & Company, were one of Live Nation’s high points in 2020 after selling over 184,000 tickets to eight shows from June to August, according to Billboard Boxscore. “This isn’t just young kids going to shows because they’re not scared,” said CE...
