Business news
The Ledger: Hits Are Great, But Labels & Publishers Seek Higher Margins Too
There’s little doubt record labels and publishers will continue to improve revenues in the coming years on the backs of streaming subscriptions, stronger internet advertising and burgeoning sectors like social media and connected fitness. But there’s less certainty about how their margins will grow as industry revenues surge. Investors and analysts are making their best guesses. During Warner Music Group’s earnings call on Tuesday (Feb 8), RBC Capital Markets analyst Kutgun Maral asked management asked if recent deals “are indicative of a greater focus on M&A” and if they “are accretive or dilutive to margins.” CEO Stephen Cooper said WMG will “be quite assertive” in seeking deals it believes can be “immediately accretive [to margins].” Lou Dickler, senior vp, controller, added that th...
Spotify Closing In on Sponsorship Deal With Barcelona Soccer Club
MADRID — Spotify is close to reaching a sponsorship deal with F.C. Barcelona, one of Europe’s leading soccer clubs, less than a year after Spotify’s founder, Daniel Ek, made an unsuccessful takeover bid for U.K. club Arsenal. According to Spanish media, a sponsorship deal could be announced as early as next week. The club says it would not comment on ongoing negotiations, which have been prompted by the fact that Barcelona’s current jersey sponsor, Rakuten, decided not to renew its agreement with Barcelona, which ends in June. Last year, Ek sought to buy Arsenal, saying that it would fulfill a childhood dream. “I’ve cheered for Arsenal as long as I can remember,” he said. But the family of Stan Kroenke, which currently owns Arsenal, rejected the Swedish billionaire’s offer, saying they wer...
EBIDTA, AOI, OIBDA, WTF? Why Companies Report Different Financial Metrics
With music companies’ fourth quarter earnings starting to roll out this week, news reports have been filled with the usual alphabet soup of accounting jargon, abbreviations and acronyms. It can get confusing, especially since some of the most visible financial metrics don’t have strict definitions. Spotify, Warner Music Group, Live Nation, SiriusXM and other companies publicly traded in the U.S. adhere to what are called Generally Accepted Accounting Principles set by the Financial Accounting Standards Board. GAAP standards allow investors to reasonably trust companies will fairly represent their business results using the same rules and language. Left to creatively interpret their own finances, companies would have different approaches to measuring their revenue, expenses and liabilities....
Executive Turntable: Warner Records Taps Commercial SVP, Stem Strengthens Artist & Label Team
Josh Remsberg was named senior vp, commercial revenue at Warner Records. The Los Angeles-based Remsberg joins Warner from Universal Music Group’s Capitol Records, where he’s served as senior vp, commerce & business development since 2020. In his new role, he’ll report to and work closely with Warner Records executive vp, promotion & commerce Mike Chester to develop and implement the label’s new release and long-term sales strategy and artists campaigns across streaming, digital and commercial platforms and accounts. Remsberg joined UMG in 2001 as an 18-year-old college representative at the University of Michigan. After graduating, he was hired as a field rep for Geffen Records in Detroit. He later worked for UMG’s distribution arm with a focus on the Republic and Motown labels. He...
Gomez Founder Tom Gray Appointed Chair of Ivors Academy
LONDON – Tom Gray, a prominent artist rights advocate and founding member of British rock band Gomez, has been elected chair of The Ivors Academy, the U.K. association for songwriters and composers. Gray has been a key figure in the global push for creators to receive a greater share of streaming royalties. In April 2020, he founded the #BrokenRecord campaign, calling for reform of the music industry and a rebalance of power away from record labels and streaming platforms and towards artists. Gray’s #BrokenRecord campaign ran alongside The Ivors Academy’s #FixStreaming drive, attracting support from stars like Paul McCartney, The Rolling Stones and Coldplay frontman Chris Martin, and compelling U.K. regulators to take a closer look at how the record business operates. That led to a nine-mo...
Folgers, Trombone Shorty Launch New Ad Campaign Featuring a Joan Jett Classic
Best known for its popular early ‘80s tagline “The Best Part of Wakin’ Up”, Folgers coffee is unveiling a new campaign today (Jan. 31) with a lot of fanfare — literally. To reinforce its reputation as a brand leader and simultaneously bolster its connection with next-generation coffee drinkers, Folgers commissioned the Joan Jett & the Blackhearts classic “Bad Reputation” as the theme song for its perception-shattering campaign. Headquartered in New Orleans, the 170-year-old firm — part of The J.M. Smucker Co. — also reached out to local favorite and Blue Note Records artist Trombone Shorty. In addition to imbuing the track with some energetic NOLA flavor, the Grammy-nominated musician, his brass bandmates and local Folgers employees also appear in the commercial. Being deployed across ...
Record Store Day’s ‘Improbable’ Success Recounted in New Book for 15th Anniversary
Record Store Day is getting a book-length origin story. On April 12, ahead of the annual celebration’s 15th anniversary, Rare Bird will publish author Larry Jaffee’s Record Store Day: The Most Improbable Comeback of the 21st Century, a book recounting how the long-running event helped save independent record stores across the world and played a major role in relaunching the now-booming vinyl format. The tale is told in the voices of those who were pivotal to the movement, including RSD’s founders, artists who were supportive of the event and independent record store owners, among others. Jaffee is a New York-based journalist who teaches writing at the New York Institute of Technology and Mercy College and serves as co-founder/conference director of the Making Vinyl series of conferences th...
Universal Music Group’s Sir Lucian Grainge Tops Billboard’s 2022 Power List
Sir Lucian Grainge is at the top of 2022 Billboard Power List, two years after he was named Billboard’s executive of the last decade. But this year, there’s a very different reason for his No. 1 ranking: his leadership of Universal Music Group’s historic debut as a public company. It wasn’t just the largest direct listing in the history of the music industry, but one that has helped lift the boats of many music companies — including those of Grainge’s fiercest rivals. The UMG chairman/CEO is one of nine honorees from the company this year, with the other eight also listed below. Sir Lucian GraingeChairman/CEO, Universal Music GroupBoyd MuirExecutive vp/CFO/president of operations, Universal Music GroupMichele AnthonyExecutive vp, Universal Music GroupJeff HarlestonGeneral counsel/executive...
The 2022 Billboard Power List Revealed
Money changes everything. Over the past year new types of investors poured record sums into music, reshaping the power dynamics of the business. So Billboard decided to take a closer look at how the industry’s most powerful executives stack up now. On the list that follows, we rank the top 25 and present the rest in alphabetical order by sector. The sands have certainly shifted since we made our last power list. Sure, Sir Lucian Grainge is still at the top of the heap, two years after we named him our executive of the last decade. But this year, there’s a very different reason for his No. 1 ranking: his leadership of Universal Music Group’s historic debut as a public company. It wasn’t just the largest direct listing in the history of the music industry, but one that has helped l...
Sidney Miller, Pioneering ‘Black Radio Exclusive’ Publisher, Dies at 89
Sidney Miller, founder and publisher of Black Radio Exclusive (BRE) — one of the industry’s first Black music trade magazines — died Thursday in Arlington, Virginia, following a long illness. He was 89. Miller invested his savings and sold his house and car to pursue his dream of establishing a publication specifically targeting the Black music market. Launched in 1976, BRE became a pivotal force in underscoring the importance of Black radio and promoting the cultural and commercial impact of Black artists and Black music in the contemporary music arena. Explore See latest videos, charts and news See latest videos, charts and news BRE’s success also spawned what became a popular industry staple, the BRE Convention. The annual event attracted key national and international music executives ...
The Deals: Round Hill Acquires Nancy Wilson Royalty Stake, Murda Beatz Signs With ADA
Round Hill Music acquired a significant share of Nancy Wilson‘s master royalties and has entered a long-term deal to administer her neighboring rights income. Though the exact share of the Heart singer, songwriter and guitarist’s master royalties remains undisclosed, Round Hill will own portions of classic Heart songs like “Barracuda,” “Magic Man,” “Alone,” “Crazy on You” and “These Dreams” — all of which were co-penned by Wilson. Trevor Bowen, chair of Round Hill Music, said of the deal, “We are very pleased to announce the acquisition of Nancy Wilson’s fantastic catalogue of classic Heart tracks from across her career including songs from her double and triple platinum selling albums. This important acquisition provides the Company with direct exposure to a timeless American rock band.” ...
Hipgnosis Buys Stake in Kenny Chesney Recording Royalties
Hipgnosis Song Management has acquired 80% of country superstar Kenny Chesney’s recorded music royalties. The deal is the first acquisition made by Hipgnosis since its new $1 billion partnership with Blackstone, announced in October, to acquire music rights and manage catalogs and is also Hipgnosis’s first deal with a country superstar. The pact covers Chesney’s recorded music royalties over a 23-year period, from 1994’s In My Wildest Dreams, his debut on Capricorn Records, through 2017’s Live in No Shoes Nation. Chesney recorded for Sony Music Nashville imprints from 1995 to 2017. The deal also includes future greatest hits, live and acoustic albums. Chesney switched to Warner Music Nashville in 2018 and the deal does not include any of his recorded music royalties for 2018’s Songs for th...
