Record Labels
Streaming Prices, New Revenue & More: 5 Highlights From WMG’s Earnings Call
The May 4 earnings call was filled with notable insights ranging from Spotify’s price increases in select markets to the importance of Warner’s data analysis. Here are the call’s highlights. Streaming Subscription Rate Increases: Cooper spoke about Spotify’s price increases in a small number of markets. He said he expects other streaming services will follow Spotify’s lead and rase their prices as well, provided Spotify does not see the higher prices increase its churn rate — which Spotify has said has not happened. “What people have a tendency to do on these services is build their library, build their playlists, and so there is a stickiness,” he said. “And I think that as Spotify and/or others experiment with these price increases, if they don’t see any meaningful churn event...
Warner Music Group Marketing Veteran Beth Appleton to Depart
Appleton has worked in the music industry for 25 years, starting with EMI in London and transferring to Australia for the first time in 2000. She returned to the U.K. to work for Richard Branson’s V2 label and Universal Music before joining Warner Music Australia in 2011, in the role as director of marketing. An honoree in Billboard’s Women In Music feature, Appleton returned to the U.K. in January 2014 to spearhead global marketing for WMG, based in London, and returned to Australia in January 2018 to assume her current role. In a separate message to staff, Appleton admits she’s ready to “pursue my next adventure.” At present, those plans have not yet been revealed. “As many of you know, I often ask the question ‘What is the right thing to do?,’” she continues. “Me moving on now is the ri...
BTS Label HYBE Turns a Modest First-Quarter Profit
These positive first-quarter results don’t, however, come close to the company’s impressive previous quarter, Q4 2020. Then, still without touring income, HYBE produced livestreamed concerts and had strong music sales — 159% greater than 2021’s first quarter — and closed 2020 with quarterly revenue of $278 million and a $23.7 million profit. HYBE didn’t provide guidance on concert revenue in 2021, saying “with pandemic conditions still in place, forecasts are still unclear on the possibility of in-person concerts in the second half of this year.” In the meantime, HYBE said it will offer more livestream concerts and “other diverse content.” Much of the earnings release focused on HYBE’s acquisition of Scooter Braun’s Ithaca Holdings, which was announced April 2, noting it was th...
Spotify & Fellow Streamers Soared in 2020, But Expect Growth to Slow
Don’t put too much stock in how companies’ quarterly earnings compare year-over-year to 2020. The pandemic caused some services’ subscriptions to spike early in the year (Netflix) or build throughout the year (Spotify). Long-term trends have not changed. On-demand streaming will continue to erode linear programming like cable television and broadcast radio. An odd quarter here or there won’t change the course of technology in entertainment. Streaming video on demand (SVOD) is a battle of titans — AT&T, Comcast, Disney, Apple, Amazon, ViacomCBS — that requires big pockets to survive the war of attrition. Music streaming companies get to focus less on original content and more on technologies to create better user experiences. Un...
Warner Music Invests in Wave to Create Virtual Music Experiences
Founded in Los Angeles in 2016, Wave originally set its sights on virtual reality (VR) concerts, but announced plans to shutter its VR app in January to focus on wider distribution of its shows on platforms like TikTok, Roblox and Twitch. Wave specializes in interactive experiences for viewers, including the abilities to engage in live chat, vote on set lists and pay to “gift” new items and effects to the virtual show. The company has hosted more than 50 Wave events for artists like John Legend, Dillon Francis, Alison Wonderland and Tinashe, including The Weeknd‘s TikTok LIVE concert in August that reached over 2 million live viewers and raised $350,000 for the Equal Justice Initiative. WMG joins a list of Wave investors that includes Justin Bieber, The Weeknd, ...
WMG Partners With Genies to Turn Artists Into Avatars & Sell NFT Gear
“We think about engagement as being live, synchronous, video-based and moving away from [social media] handles into avatar creation, where people can reimagine themselves and engage in more personalized ways,” WMG chief digital officer & executive vp of business development Oana Ruxandra tells Billboard. “Avatars are a key part of that interaction, so we’re really excited about the Genies opportunity.” Ruxandra adds that as with many emerging technologies — from livestreaming to NFTs — the pandemic has accelerated both fans’ and artists’ interest in the avatar market, transforming what was once a futuristic niche into a viable and exciting offering for the masses. “It’s really gratifying to see fans digging in, artists digging in, a...
Paul McCartney, Chris Martin Join Pleas for Streaming Royalty Reform
The letter, backed by the Musicians’ Union and U.K. songwriters and composers body The Ivors Academy, is also signed by Bob Geldof, Boy George, Noel Gallagher, Damon Albarn, Jimmy Page and Kate Bush. It comes amid a U.K. Parliamentary probe into the streaming business that has seen major labels’ dominance of the market emerge as a central issue. The inquiry, which is being led by the Digital, Culture, Media, and Sport (DCMS) Committee, is looking into the economic impact music streaming is having on artists, record labels and the wider music industry. The first stage of the inquiry concluded March 22 with government minister Caroline Dinenage saying she would support a referral of the three biggest music companies — Universal Music, Sony Music and Warner Music — to the CMA. Rou...
The Deals: Def Jam Strikes JV With Poo Bear; Deadmau5 Cosigns New Gaming Startup
“I’m extremely grateful for Bearthday Music to have partnered with Def Jam and Universal,” added Poo Bear. “This is truly a dream manifesting to have the support of Def Jam, and their belief not only in me but in the artists I believe in. I’m looking forward to what’s to come from this new promising venture. Thank you to Lucian Grange, Jeff Harleston and Naim McNair for this opportunity. HBD!!!!” In addition to the aforementioned artists, Poo Bear has worked with J Balvin, DJ Khaled, Jennifer Lopez, Mariah Carey, Billie Eilish and Ed Sheeran, among many others. He boasts nearly 300 songwriting and production credits with sales of over 350 million records worldwide. Joel Zimmerman (deadmau5) and Richie Hawtin (Plastikman) along with music industry visionaries Ben Turner, Dean Wilson and Ind...
Executive Turntable: Kardinal Offishall to Helm A&R at Universal Music Canada
In his new role, Kardinal will continue to discover, sign and develop artists, forge new creative partnerships and provide strategic direction to drive the international success and cultural prominence of UMC’s artist roster. He will work closely with UMC’s urban marketing team while continuing his roles as chair of UMC’s B.L.A.C.K. Coalition (BLC) and Canada’s representative on UMG’s Task Force for Meaningful Change. Republic Records promoted Xiarra-Diamond Nimrod to vp of marketing strategy. In her new role, she will continue to oversee marketing, rollout and release strategy for multiplatinum chart-topping rap artists such as Pop Smoke, Metro Boomin and Jacquees. “We’ve been lucky to have a front row seat to Xiarra’s evolution into a world-class marketing executive,” said Republic’...
IMPALA Unveils Sustainability Program for Europe’s Independent Music Sector
One specific initiative under the program will be the development of the first carbon-accounting tool specific to recorded music, covering both the supply chain and label activities. Collective offset investment options for IMPALA members will also be considered. Last month, IMPALA made one of its first strides in meeting the climate charter’s targets by asking streaming services to help assess and reduce the carbon footprint of digital music, which was unveiled as part of a comprehensive ten-step streaming plan. Among other things, the plan asks DSPs to help reduce artists’ reliance on touring by creating “new initiatives and products” to increase their earnings in the streaming space. In addition to Weidenmüller, the task force which developed the sustainability package includes Ali...
Republic Records Forms New Arab Music-Focused Label With The Weeknd Manager Sal Slaiby
Slaiby, who has been pushing on other fronts to boost the profile of Middle Eastern music, founded the new label and will serve as CEO. “It’s been my dream to highlight the talent and culture of Arabic music on a global level with partners that I trust and admire,” he said in a press release. The label, unveiled on Tuesday by Slaiby, UMG Chairman and CEO Lucian Grainge and Republic Records founder and CEO Monte Lipman, will seek to give Middle Eastern music — both from the region and from the diaspora around the world — a more global platform to reach the widest possible audience. Slaiby, a refugee or the Lebanese Civil War who immigrated to Canada at 15, has dramatically raised his profile in the music industry in the past few years. In addition to managing The Weeknd, who had the top son...
Motown’s Black Forum Label Revisits the Past Through Hip-Hop’s Future on ‘Fire in Little Africa’ Album
In announcing the album, Motown Records chairman/CEO Ethiopia Habtemariam said, “Fire in Little Africa is a powerful and timely project that provides a platform and outlet for the incredibly talented and thriving music community of Tulsa. Carrying the legacy of the Black Wall Street community, Fire in Little Africa is a body of work filled with purpose and prolific storytelling. I am honored and privileged to have Motown/Black Forum partner with Stevie ‘Dr. View’ Johnson, the Bob Dylan Center and Woody Guthrie Center to release this impactful hip-hop album.” Johnson, PhD and manager, Education & Diversity Outreach at the Woody Guthrie Center/Bob Dylan Center and the album’s executive producer, commented, “Fire in Little Africa has evolved into a communal hip-hop movement. W...
