business
The Ledger: Should Music Streamers Follow Netflix’s Lead on Account Sharing?
The Ledger is a weekly newsletter about the economics of the music business sent to Billboard Pro subscribers. An abbreviated version of the newsletter is published online. The music business should watch what Netflix is doing in select Latin American countries to bring in more revenue as painlessly as possible. In the next few weeks, Netflix will begin testing new two features in Chile, Costa Rica and Peru: “Add an extra member,” which allows subscribers to standard and premium plans to add up to two people they don’t live with for a few dollars a month; And “transfer profile to a new account” for people to take their profile information — namely their viewing history and recommendations — to a new account rather than create a new account from scratch. “We recognize that people have many ...
Inside Track: Labels’ Back-to-Office Plans Include Massages, Mediation, Free Lunch & Concerts
As COVID-19 restrictions ease, music companies are welcoming back employees with a wide range of healthy perks to lessen the stress of returning to the office after two years of working from home. Warner Music Group and publishing arm Warner Chappell offer staffers massages, reiki sessions and even sound baths in their Los Angeles, New York and Nashville offices, as well as complimentary lunches and smoothies. Baristas also man coffee stations to encourage face-to-face conversation and collaboration among returning workers who may have only seen each other over Zoom for months. There is also a full slate of virtual programs ranging from yoga, wellness classes and meditation. WMG’s recorded music division began welcoming staffers back in late February, while the publishing company and corpo...
Weekly Report: Russia’s largest bank can now issue digital assets, Optimism raises $150 million
Optimism aims to invest in hiring following the conclusion of a Series B funding round A FinCEN rep has said it is impossible to move large scale amounts of funds via crypto to avoid sanctions Meta could be legally charged for allowing misleading crypto ads on Facebook that falsely portrayed support by celebrity figures in Australia Sberbank has been licensed to issue and exchange virtual assets in Russia GameStop fans will by the end of July exchange NFTs for free on the retailer’s marketplace Ethereum L2 scaling solution Optimism raises $150M in a Series B funding round Optimism, an Ethereum layer two scaling solution, has completed a $150 million Series B funding round co-led by giant venture capital firms Paradigm Capital and Andreessen Horowitz (a16z) at a $1.65 billion valuatio...
Amazon Officially Closes MGM Acquisition Deal at $8.5 Billion USD
Nearly one year later, Amazon has officially closed its acquisition of MGM at $8.5 billion USD. Variety has reported that the deal was first announced last May as per Amazon, “The storied, nearly century-old studio — with more than 4,000 film titles, 17,000 TV episodes, 180 Academy Awards, and 100 Emmy Awards — will complement Prime Video and Amazon Studios’ work in delivering a diverse offering of entertainment choices to customers.” The transaction was complete after the deal received clearance from the EU’s antitrust regulator. At the same time, the deal was also pending review from the U.S. Federal Trade Commission which gave Amazon a mid-March deadline. However, by early this week, the FTC has neither publically challenged or approved the deal. But insiders confirmed that the FTC does...
Nat King Cole Recordings Sold to Universal Music Group
Universal Music Group quietly acquired about 200 recordings by Nat King Cole from the iconic singer’s estate in January 2021, the company revealed Thursday (March 17), bringing all of his recordings under UMG ownership. The songs, recorded between 1961 and 1964, were previously licensed to Capitol Records — now owned by UMG — under a deal Cole negotiated following his rise to fame. His earlier recordings, also of about 200 songs, were all originally released on Capitol Records as well. The agreement was first reported by Forbes to be in the range of $10 to $20 million – a price range Billboard confirmed with a source familiar with the deal. Recordings included in the acquisition include such iconic songs as “Nature Boy,” “Mona Lisa,” “Unforgettable,” “The Christmas Song (Merry Christm...
MSG Names Lucas Watson President of Sphere Venues
Business brand veteran Lucas Watson has been tapped to lead Madison Square Garden Entertainment Sphere venues. Watson will officially join the company on March 28 as president, MSG Sphere. The first MSG Sphere venue – MSG Sphere at The Venetian in Las Vegas – is currently under construction and is scheduled to open in the second half of 2023. The final cost for the venue is expected to come in at $1.66 billion. With over 25 years of global experience accelerating growth and building brands, Watson is set to drive various aspects of MSG Sphere’s commercial strategy including go-to-market planning and bookings, which will feature a wide range of bespoke “only in Sphere” attractions, residencies, conventions and product launches. He will work closely with his colleagues across MSG Entertainme...
OVG360 Names Gregory A. O’Dell President, Venue Management
Venue management and hospitality company OVG360 named Gregory A. O’Dell president, venue management. OVG360 – a division of global sports and entertainment company Oak View Group – will welcome O’Dell to his new role in April after he departs his position at the helm of Events DC, the official convention and sports authority for the District of Columbia. He’ll report directly to OVG360 CEO Chris Granger. O’Dell, who brings over 25 years of experience to the role, will lead the venue management line of business within OVG360, overseeing venue operations for more than 230 properties across the globe, including stadiums, arenas, convention centers, performing arts centers, cultural institutions and state fairgrounds. “Greg is truly a unicorn in the live events industry in that his immense lea...
Rap Lyrics Are Still Cited in Court, But That Might Be About to Change
When Vonte Skinner stood trial in New Jersey in 2008 for a drug-related shooting that he claimed he did not commit, a detective read to jurors at length from a book of amateur rap lyrics discovered in Skinner’s car the night of the crime. They referenced bloodshed and violence and death – but they weren’t connected to the actual facts of the case. Skinner was later found guilty and sentenced to 30 years in prison. “It made absolutely no sense,” says Ezra Rosenberg, an attorney who worked with the American Civil Liberties Union on Skinner’s appeal. “This was a guy who was convicted of an extraordinarily serious crime based on evidence that included his rap lyrics, when there was nothing in them that was connected in any way to the crime he was convicted of.” Years later, prosecutors are sti...
Mushroom Group Aims for ‘New Heights’ Through Partnership With UMG’s Virgin Music
Mushroom Group, the independent music juggernaut, partners up with Universal Music Group’s indie label and artist services division on a multi-tiered arrangement that promises to lift the Australia company to “new heights” and secure global opportunities for its artists. The alliance, announced Thursday (March 17), is a two-way street, pumping fresh content into the Virgin Music Label & Artist Services (VLMAS) pipeline, and providing support and distribution services for Mushroom artists’ releases, for the world outside of Australia and New Zealand. Under the terms of the new deal, VLMAS will activate its global promotion, marketing and audience label services for Mushroom’s existing U.S. and U.K. activities, and, in situations where both parties agree on a project, certain Mushroom ar...
After Months Declining, Music Stocks Tick Up as Fed Raises Interest Rate
Music stocks that had been pummeled in recent months received a respite on Wednesday (March 16) after the Federal Reserve moved to combat inflation and soaring economy by raising the federal funds rate from 0.25% to 0.50%. The federal fund rate is the benchmark rate for inter-bank loans and borrowing costs for credit cards, mortgages and auto loans. Shares of Universal Music Group rose 5.0% on the day to 21.96 euros while Spotify improved 7.9% to $133.58 and Warner Music Group climbed 1.4% to $35.47. The Fed’s move had been expected since its first announced its intention to do so on Dec. 15, 2021. By raising the federal funds rate, the Fed will make borrowing money more costly, reducing businesses and consumer spending to rein in inflation. The Fed stated on Wednesday it “anticipates that...
Hong Kong-based Hex Trust concludes an $88M Series B funding round
Hex Trust intends to expand into Europe and the Middle East It will also invest in its proprietary crypto platform Hex SafeTM Asia-based institutional crypto custodian Hex Trust has completed an $88 million Series B funding round led by Animoca Brands and Liberty City Ventures at a $300 million valuation. Of the raised capital, $61 million constituted primary capital, while $27 million was from secondary investors. Several other investments firms, including Sino Global Capital, Terra, CoinList, Protocol Labs, Morgan Creek, Primavera Venture Partners, Ripple, BlockFi, LeadBlock Partners, and Eterna Capital also participated in this round. According to CEO and co-founder of Hex Trust, Alessio Quaglini, investors’ interest in this raise surpassed the initially anticipated numbers. The C...
Multinational investment bank HSBC acquires LAND on The Sandbox
The bank sees great potential in creating new experiences through immersive tech such as virtual reality HSBC will use its metaverse initiative to interact with sports, e-sports, and gaming communities Multinational banking and asset management firm HSBC has officially joined the metaverse, according to a blog post published by The Sandbox today. Following the partnership, the British financial services company has purchased a plot on The Sandbox metaverse, on which it intends to establish its virtual world. It hopes to use the ecosystem to provide an engagement platform for finance professionals, gaming communities, sports, and e-sports enthusiasts. “The ground-breaking partnership between The Sandbox and HSBC will see the global financial services provider acquire a plot of LAND, v...
