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MBUSA-Issue-1-1.Pdf

Spring/ 2019

1 @warnermusic @warnermusicgroup @warnermusic

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Contributors

ALEX ROBBINS GOLNAR KHOSROWSHAHI JUSTIN KALIFOWITZ

Alex Robbins is an illustrator whose work Golnar Khosrowshahi is the founder and Justin Kalifowitz is the founder and has previously appeared in the likes of the CEO of Reservoir, an independent CEO of Downtown Music Holdings, a New Yorker, Out, Wired, TIME company established in 2007. Based in provider of end-to-end services to artists, and -D. He created our cover image, with operations in Angeles, , labels, music publishers and based on a quote from our lead interview Nashville, , and , Reservoir other rights-holders. Established in 2007, with UMPG’s Jody Gerson: “It’s great the owns and administers over 110,000 Downtown’s global offices include those industry is making money – but that’s . Khosrowshahi is also President in New York, Amsterdam, London, Los not the only thing that matters. Human of Silkroad, a non-profit organization Angeles and Nashville. Downtown recently connections matter.” founded by the cellist -Yo Ma. acquired CD Baby’s parent company, AVL.

MARK MULLIGAN RHIAN JONES ZENA WHITE

Mark Mulligan is the founder of UK- Rhian Jones is a respected freelance Zena White is the Managing Director of based MIDiA Research, and of journalist who focuses on the music Partisan Records, the -born indie the most respected, and widely-read, industry. In addition to writing for Music label which is to artists as diverse as analysts working in the global business. Business USA and Hits Daily , Cigarettes After , Fela Kuti, IDLES and A technology and entertainment expert, a Contributing Editor for Music Business Fontaines D.C. Previously, White the Mulligan covering the digital Worldwide and is currently writing a book MD at London-based independent label music business for over a decade. In on mental health in the music space. In services company The Other Hand, where this issue, he focuses on evolving fan this issue, Rhian interviews Colleen Theis, she played a key role in breaking several consumption . the COO of ’s The Orchard. North American artists in Europe.

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In this issue...

12 Jody Gerson UMPG

22 Ryan Press

24 Rebeca Léon Lionfish Entertainment

30 APG

38 Ethiopia Habtemariam

46

55 Mark Gillespie Three Six Zero

62 Michelle Jubelirer

70 Ian Montone Monotone Inc.

78 Willard Ahdritz Kobalt

85 Colleen Theis The Orchard

89 John Josephson SESAC

96 Strauss Zelnick ZMC/ex-BMG

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EDITOR’S LETTER KOBALT

Greetings from overseas. Tim Ingham on, would you expect the For those of you that didn’t know, Music ’ proportion of global industry PAYS Business Worldwide – the ever-reporting revenues to have grown or shrunk? Correct progenitor of Music Business USA – is, to answer: it grew – and significantly so. intents and purposes, London-based. Last year, shows IFPI data, the USA market So when announced that we generated $6.64bn in trade revenues, amid a launching a magazine specifically about the total global market worth $19.1bn. MORE US marketplace earlier this year, it attracted The US’s contribution, then, equated to the same few questions. They included: Why 34.8% of worldwide industry revenues in not launch a magazine about the UK market 2018 – comfortably more than a third. you first? (We did: it’s called Music Business UK, it roll the years back a decade, as far as 2008, comes out quarterly, it’s really rather good, and the USA claimed a far smaller proportion of MONEY, if you subscribe to this publication, you’ll get it worldwide trade sales, at 27.0%. through the post soon enough.) It’s understandably topical to talk about Yet the most frequent query in reaction the surging importance of international to our headfirst dive into the States was territories – and this: Why, when the music business is more ex-US markets do, for sure, offer the brightest FASTER global than ever, when the likes of China and hope of continued recovery for the music India are providing huge conversational and “The USA is business in the decades ahead. But , strategic fodder for the music business, when driven by the proliferation of streaming, the MBW has ‘Worldwide’ proudly planted in its going through United States is going through a new golden WITH own name, would you launch a magazine era as the epicenter of the worldwide record specifically covering the audio entertainment a new golden industry. That ain’t ol’ fashioned industry of the United States? hyperbole; them’s the facts. The answer, crudely enough, is money. If era as the So that, in a nutshell, is one key reason we you took a look back over the global sales epicenter of launched this magazine. The other key reason, AMRA of the record business in the past few years, enough, is the people. The United what would you expect to find? Perhaps the the global States contains the majority of the global music The global collection system escalating importance of territories which once business’s biggest influencers and decision- is broken. That’s why we built AMRA. lagged behind in the worldwide industry due industry.” makers – many of whom have smart opinions, Discover how AMRA collects directly to rampant piracy? Tick. As rightfully noted cracking back-stories and a fair idea what the from streaming platforms to pay by LionFish’s Rebeca Léon in our profile (page of this industry may entail. creators more money, faster. 24), some of the most striking examples of this We’re delighted that we’ve managed to have occurred in Latin – with Brazil, capture a bundle of that wisdom within the 104 for one, increasing its annual revenues paid out pages presented . From UMPG Jody Watch the video at to the record industry by 31% in the five years Gerson discussing the role of songwriters amra.com/kobalt between 2013 ($228m) and 2018 ($299m). in tomorrow’s industry paradigm, through to But check this out: in 2013, according to Kevin Liles on diversity, Mike Caren on A&R, IFPI data, consumers in the United States Ethiopia Habtemariam on hip-hop, Willard contributed $4.47bn to the record business Ahdritz on music’s value and much more besides, – worth 29.8% of the worldwide industry’s we hope you find plenty to educate, to inspire – revenue total at . and to challenge your preconceptions.

© Music Business Worldwide Ltd Advertise: [email protected] 27 Old Gloucester Street, London, WC1N 3AX Subscribe: MusicBizStore.com 1 2 XXXXXXXX

‘I HAVE TO TELL MY STORY AUTHENTICALLY’ Jody Gerson has transformed Universal Music Publishing Group. But who is the behind the billion-dollar publisher?

can’t believe you haven’t heard about celery juice yet...” Jody Gerson is tipping us on the . Bearing “Iin mind she’s been ahead of the curve on everyone from to SZA, and during career, we’re listening. (The radiance of our , we’re promised, will thank us for doing so.) Philadelphia-born Gerson, a mother of two teenagers and one older son, thinks a lot about making the most of every hour. She wakes at 5.30 am each morning “just to have some time to myself” – an indicative trait of someone who says she was never in the top 10 smartest girls at her school, but who keenly studied her way to over-achievement. Whatever Gerson’s secret is (and we’ll wager there’s a lot more to it than celery juice) it’s working. Since she took over as Chairman and CEO of Universal Music Publishing Group in January 2015, the company’s annual revenues have grown by some 40%, surpassing a major milestone last year by topping $1 billion for the first time. Gerson’s professional highlights over the past four years have included signing of some of the biggest new talent such as Eilish, Halsey, Post Malone, SZA, Rosalía and Quavo, plus Tobias Jesso Jr, and – in addition to deals for established acts like , , , , , , and . Despite her history in A&R, Gerson is at pains to note that UMPG shouldn’t only be judged by its active roster: she is particularly proud of the company’s technology advancements, for one thing. “When I first took the job, there was a distrust between songwriters and publishers here, so we made sure our system was completely transparent,” she says. UMPG has also doubled down on film and TV music under Gerson’s leadership, via deals with the likes of Lionsgate, Paramount, Disney Europe (and numerous other territories), Universal Pictures, Warner Bros. Pictures, MGM, HBO, and more – steady income sources which Gerson says provide “cover” for A&R risk-taking at the company. Ultimately, though, Gerson says the biggest strides at UMPG under her leadership have been made by “betting on talent and

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betting on ” and “running this company with integrity – who, for my entire , had this idea that I was something special. people out there believe us.” Now she gets to see me in action. I that so much. Having graduated from Northwestern University, Gerson began her career at Chappell Music in New York in an entry-level Your mom always thought you were something special: was position. After rising to A&R and plugger, she then bagged that an uplifting gift or pressurizing? a job at EMI Music Publishing where she stayed for 17 years, It wasn’t pressurizing in the way my kids are pressured today, that’s serving as head of the company’s east coast publishing division and for sure. I grew with my parents in of Philadelphia. then revitalizing and leading its west coast division. At EMI, she My mother got married when she was 19 and had me when she signed , Jermaine Dupri, Alicia Keys, was 20. My dad was 25. My mom went to one semester at Temple and , among others. Gerson then moved to Sony/ University and worked in a department store for, like, two days, ATV for the next seven years of her career, where she rose to co- but then married my dad and he supported her from there. President and signed Gaga, , and more. Generationally, that’s kind of the way . This all meant that, for close to quarter of a century, Gerson I was precocious in that I was very tuned-in to my surroundings worked under Martin Bandier, before she left in 2015 to join Sir from when I was really young. Lucian Grainge at – where Gerson also We led a funny life, because much of it was very suburban: we sits on the executive board. lived on a cul-de-sac, were close to our neighbors, and yet my dad MBUSA recently sat down in Gerson’s Santa Monica office to and my grandfather owned a nightclub [The Latin Casino] over dig into her life, her motivations, and her determination to make the bridge in Cherry Hill, New . And every Sunday night, a material difference in the lives of songwriters... my brother and I would go to a matinée show, and see everyone from to to The Supremes to The You’re the first female boss of a multinational music company Temptations to every comedian you could ever imagine. in history. What do you about that fact? I always thought that it was my dad that really gave me my I’m proud to be the first, but it’s part confidence – but now I’m realizing of my mission not to be the only more that it was my mother. My one. I vacillate between [liking] “Everything I went dad gave me this sense that life is being thought of as a ‘female held in . He was this Chairman’ and just a ‘Chairman’, through is an larger-than-life, fun character, and but of the day, I’m both. I my mom was fully dependent upon feel a great responsibility to do right experience other women him. From a young age, I felt that by other women. That’s why, last could learn from.” I needed to be in control – that year after the Grammys and with somebody had to be the grownup the Annenberg Inclusion Initiative in the household, and that was me. [which showed how poorly women are represented in music], we created She Is The Music, a nonprofit to increase the number of What were you like when you were younger? women working in [the industry]. I was very ambitious. The idea of having a successful career was I feel like I have to give back to the business, and I feel that I also important to me. That wasn’t a against my mom staying have to tell my story authentically. Everything that I went through at home – it came from this appreciation that someone had to take to get me here is an experience that other women could have, or care of things. My mother saw something in me; she took me out that they could learn from. of public school and put me in an all-girls private school. It was It’s important to me to help push women into senior positions. a great, great education. I was the first person in my family who It’s very natural for women to to themselves, ‘Wait, how am went to college. I was an overachiever but I knew my standing: I I gonna do this? I have three kids at home and I’m divorced. I’m could still name you 10 girls at school who were way smarter than this and that – how am I gonna manage it?’ You kind of have to me. I wasn’t in the 10 that didn’t have to study to succeed. go, ‘Yes, do this.’ After five years in this job, I feel very comfortable and very competent. Did you get in trouble? So as long as I beat my father home at night, I wouldn’t haven’t always felt that level of comfort as a Chairman? trouble. The advice that my father gave me was: ‘I care about When I took this job, I had to step into my power; I had to kind smart or dumb; I don’t care about legal or illegal. If you’re dumb of fake it until I really felt it. Five years later, I am in my power – enough to get caught, shame on you.’ I wasn’t a goody two-shoes; because the proof [of UMPG’s success] is there to see. I just never got caught. I’m very proud of what . I took my mom with me to see Elton John recently. And she said to me, ‘It’s so nice that you’re How much uncertainty was there in your father’s business? Billie Eilish treated kindly – people hug you!’ She was a -at-home mom It was a purely cash business, so there was . I

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With SZA With Signing Post Malone in 2015

remember when his accountant came for my dad to pay taxes; he lurking backstage, something I never really understood as a child. they don’t just settle for the billboard as opposed to the pay. It’s songwriters? Of course. Would that have been the right thing to would literally have to my father down. It’s funny because I was this young girl who had free rein around a nightclub – I dangerous to simply allow certain companies, who are building do? Absolutely. By appealing the ruling, they fail to acknowledge in some ways, maybe that’s why I work for a company and never mean, total free rein. I can still visualize the whole backstage area, their platforms off songs and music, to lessen music’s value. that songwriters need to be paid fairly. I applaud how both my own business. My dad was always juggling. I don’t want running around with my brother, but we always knew that if Another really big challenge today is how to ensure that what you publishers and songwriters are rallying behind such a critical to juggle; I like stability. you knocked on the wrong door, there could be danger waiting might call the ‘middle class’ of songwriters make a good living. cause. This is something that we do every day at UMPG: fight for What I didn’t predict was that it would all go away, which it behind it. It prepared me well, in a way, for being a woman in That’s really important to me. I take on that responsibility daily – songwriters’ rights. It’s one of our central missions and we stand ultimately did. When they legalized gambling in Atlantic City, this business. including not only new music, but also by making sure that legacy with songwriters who are taking action and speaking out. they had to close the nightclub. My dad made it a for a songs and legacy talent keep being couple years, but really, [my parents] lost all their money. Maybe seen motivations in other highly successful people in introduced to new audiences. Once that issue is put to bed, are was always waiting for that other shoe to drop. the music business that concern you? you optimistic the writer rates will That is very creative wording! I will say that ego is a dangerous What are your thoughts on the “It was profound for continue to climb as the decades Going to the nightclub, seeing those artists, geniuses like thing. When someone starts to buy into the idea of ‘power’ it can recent appeal against the new roll on? Richard Pryor, did that have an impact on you? be quite dangerous, and that’s why I think I protected myself early CRB rates from the likes of me seeing what made I am. There’s still so much to do, Mm-hmm. I saw some of the greatest entertainers of the time. on in this job. My definition of power was always the ability to , Amazon and others? but songwriters were galvanized But what was more profound for me was being backstage, empower others and a company where sitting in my It is critical that innovation be artists tick.” into action last year on the [Music observing what makes artists tick, how you [encourage] them to ivory tower. completely interlocked with fair Modernization Act] – that process go on stage when right before the show they’re having a panic compensation for songwriters. really pulled the whole music attack or freaking out. It all acutely aware of anxiety and Let’s talk about the modern industry. What are the biggest It’s a symbiotic relationship; it should work for everyone. We community together. One of the things I saw before here is acutely aware of , and what fame does to a person. I knew challenges currently facing songwriters and publishers? want the streaming platforms to be successful. They should want that airing our dirty laundry out for everybody to see, and very early on I wasn’t going to be a performer, but I was always Fair pay. On digital platforms, songwriters and publishers must songwriters to be successful, too. Together, we all benefit. the tech companies were so well lawyered-up that they saw it and fascinated by talent. find the right balance between wanting to be on the front of The DSPs have gained tremendous value from music. These are took advantage of the little cracks. the platforms’ billboards, on one hand, and making sure that businesses that are built on songs and would not exist without And the unstable of talent... songwriters and publishers are also getting the pay they are due. them. Without question, they owe their success to songwriters. What little cracks? I really understand that well. There was this unspoken darkness A really big challenge today is educating songwriters so that wish these platforms accepted the new, better rates for Across the business, publishing companies need to work together

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with the labels. I’ve been very conscious since becoming Chairman relentless, and I gave him the job. here that we increase the pie for everyone, as opposed to taking I am incredibly proud of his journey. We’re competitors, but I from others’ slices. Good for the labels that they get to negotiate really like him, and I admire him. We both figured this business [their streaming rates] in a free market. We don’t, so I just hope out in different ways. I’m happy for him and I’m especially that the pie just continues to increase. happy that he gets to go back to EMI [via] Sony/ATV and represent that catalog. The oft-spun story by independent publishers is that someone like Sir Lucian Grainge, or his business affairs team, will go You made the decision to Sony/ATV in 2014, after so into negotiating with Spotify as one entity – UMG’s publishing long with the same boss in Martin Bandier. When you look and records together – and that publishing will always come back now, what are your immediate memories of your exit? off worse in that scenario, because there’s less money in it. Just how nervous I was to hurt Marty’s feelings. I had worked for Lucian just wouldn’t do that. He always says to me, ‘I’ve been in him for over 20 years. It was a big breakup; that’s how I remember your shoes’ – he started off as a publisher, remember? He would it. When you work for someone for that long, there’s a relationship never, ever ask me to compromise our value or do there to deal with. that would be detrimental to our songwriters or our catalog. But when I decided that I had to leave, it was empowering. We wouldn’t be in terms of our revenue and our I knew I had to go, and fortunately Lucian had an idea for me profitability if at any time, he had asked me to compromise. which meant there wasn’t a better job for me. It was a tremendous, tremendous opportunity, but making the break was emotionally What’s he like as a boss? difficult. I knew I could do [the UMPG job] and I could do it Lucian has been an incredible boss to me. He believed that I could well. And I knew that I couldn’t stay and then complain about the be Chairman of this company before same things that I would have been I believed I could be Chairman of complaining about. this company. I guess that’s a silly “Lucian believed I thing to say because – and you can What does it tell us about you that quote this – a guy would never say could be Chairman you were nervous to go? it. But it’s true. That I’m a human being; I’m a Lucian took a shot with me and before I believed I human being who cares as much gave me complete autonomy, but about people as I do about he also offered cover. On every deal could be Chairman.” and about the job. that I’ve to make, Lucian I had an exchange with a manager and have supported me. recently of an artist we’ve had tremendous success with. It was an really open to my ideas; I’m on the board of the record email, I guess we were renegotiating something, and company [at Universal Music Group]. I really enjoy him as a boss he said, ‘What I do is keep [this deal] open to find out and I like him as a person. His mind works so , and he doesn’t what the value is on the open market. I’m sure you would do the waste words. same.’ And I thought, ‘Personally, I wouldn’t – because I value relationships and people and good work.’ One of your biggest rivals today is just took over What is the value you’re looking for there? Somebody else is at Sony/ATV, Jon Platt – who you hired in his first job way going to pay you more money than me? That’s not always what back at EMI Music Publishing. Do you ever kick yourself for I call value. I can’t separate the personal from [commercial taking that meeting? relationships]. Yes, it’s a business and it’s great that [the industry No! I’m for Jon. I was Head of West Coast for EMI is] making more money now – but that’s not the only thing that Music Publishing and there was a guy named Steve Prudholme, matters. Human connections matter. who was a creative executive. Steve went to a conference where he met Jon, who was the manager of a production group called Has Marty forgiven you for leaving Sony/ATV? Madukey – and we signed them. Jon used to up from Denver Yes. I’m very close with Marty. As a matter of fact, I don’t think in this maroon car, and park himself in our conference room. Marty’s done in this business and I would love to do something Steve-o got a job at , so there was a job opening, with him again. but good feelings for him. and Jon wanted the job. I’m like, ‘Jon, you have zero experience. So I’m going to interview everyone who’s appropriate for the job Which personal experiences have had the most profound effect and after I’ve interviewed everyone, we can have an interview.’ on your approach to business? He waited it out and then I had a meeting with him, and he said, Growing up around talent taught me a lot. I am very clear that ‘You’ve just got to give me a shot. I don’t care what you pay me the reward [when working in publishing] is your own success; you With Billie Eilish at the 2019 ASCAP Awards because you’re gonna want to pay me more in six months.’ He was can’t expect the reward, necessarily, to involve getting anything

18 19 EST. XXXXXXXX back personally from an artist. 1959 I have a full life. I have a family, I have friends. My role is to support artists – their role isn’t to support me. My role is to take care of them – their role is not to take care of me. I hope that doesn’t read badly, because it’s really not a bitter thing. It’s accepting the fact that everything that I’ve ever done positively for an artist has furthered my own career. It’s furthered their career too, but I get a reward for it, we all do in this business, and it’s to pretend otherwise. It was profound for me to realize that [with each deal, executives] pay to have the of a relationship with talent. They don’t have to pay us. It’s a very different dynamic.

Talking of talent, certain people around the business were starting to write off one of your biggest career signings, , before she shot back with a Star Is Born. Did you always believe in her? When I went to Sony/ATV, I left a tremendous amount of successful artists behind at EMI. They were so successful that when I went to Sony, it was like, ‘Will I ever be able to replicate that?’ She was the first big signing [at Sony/ATV], and I have to say, I for one will never, ever underestimate her. I remember a couple of years ago, she was having a little lull and there was a question as to whether she should do a song at MusiCares for . She was anxious about it, but she fucking killed it. It was an incredible moment and just I knew she could do it. THERE SIMPLY ISN’T A NAME IN MUSIC ? Artists have ups and downs. What I tell artists when I’m meeting with them for the first time is that you have to MORE SYNONYMOUS WITH ERA-DEFINING surround yourself with people who will be there for you on the down times, because it’s so easy to be there during the up times. HITS, STAR-MAKING, AND INNOVATION [Gaga’s] extraordinary and I am so happy because she is THAN MOTOWN. STARTED IN so multifaceted in her talent. I wish I was still representing her. I’m feeling very positive. There’s been major growth, especially Whenever I see her, I . I hope that she remembers that I for the labels, and in order to maintain that growth we have to WITH A AND AN $800 LOAN, feel privileged to have played a small role in her career. focus on getting emerging markets to where they can be – getting the licensing done right and developing them into healthy, robust BERRY GORDY'S HITSVILLE USA BECAME Do the modern industry making any mistakes in the territories for music. development of artists? Music companies like ours have become entertainment and A CULTURAL BEHEMOTH THAT SWIFTLY I think it’s unfortunate that people media companies. There’s so much HOOKED POP CULTURECU WITH A BRAND don’t always have the time to more than just streaming, and that develop into greatness. Everything “There is only so much forces us all to think outside the box, NEW BEAT. THE UNMISTAKABLE, is just that much faster. One big which is exciting. And obviously, as IRREPRESSIBLE SOUND OF YOUNG difference today is that the industry music that can be businesses that utilize music grow, has bought into this idea that we my hope is that songwriters pay AMERICA DIDN’T JUST DOMINATE THE have to feeding and feeding brilliant.” increases alongside that success. distribution and the [streaming] It all still starts with a song but CHARTS - IT CROSSED THE RACIAL platforms. But there is only so look what can you do with much music that can be brilliant. now: you can have a stream, release DIVIDE DURING THE SOCIAL UPHEAVAL OF I’m glad that brilliant stuff does still gleam through, though; a video, create a movie, create a Broadway show, the list goes on. THE 1960’S. look at Billie Eilish. It’s happening fast, but look at that body of Some companies might call it IP, or ‘content’; I call it a song. work – God, it’s brilliant. It restores my hope. Have you got any personal ambitions left? Generally speaking – and everyone will have bugbears – but Yes, a lot. I don’t know what all of them are yet. I just want to stay are you feeling positive about the future? open to the . n

hollywood, ca 20 1 10 PLAYLIST

VARIOUS - one and sums up so much. What We Do produced it with my best friend Chad PUFF DADDY is just a hip-hop classic and captures the Wes. My first on the publishing side My biggest essence of what it’s like growing up in the was Hustlin’ By in 2005. I inspiration came inner city of Philadelphia. It’s a raw, real signed The Runners, the production team from the sound story that you feel in your gut every time that produced it. And I was managing of Puff Daddy it comes on. Wherever I am in the world, Frankie Storm in 2006 when she co-wrote and the Hitmen, that song takes me back to Philly. Don’t Stop The Music for , which worked on from was produced by StarGate. Those are my ‘93 to ‘00. I loved the way the music made first taste of hits. me feel. It was rooted in R&B but had big IF I DIE pop melodies. Puff set the bar and helped YOUNG – THE bring us so many legendary artists like PERRY SUNFLOWER Jodeci, Mary J. Blige, Notorious B.I.G., & – POST , 112, Total, , and Lil Kim. – TRACY MALONE & CHAPMAN SWAE LEE It might surprise The real story JUST MY some people but behind this song is IMAGINATION these are two of my favorite songs of Post Malone – THE time. I’m always listening to them. They was making a TEMPTATIONS show the art of songwriting at its best – bunch of hits, but we didn’t publish him, My father, Ron telling compelling, authentic stories that so I was trying to figure out how I could Tyson, is the pull on your heartstrings. They’re both work with him. He and Swae Lee are two first tenor in The deceptively simple on the surface, but with of the most creative people in the world Temptations. narrative that are deep and poignant. right now, and I thought together they’d His consistent work ethic is extraordinary. Kimberly Perry wrote If I , and make a ton of sense creatively. So I called He’s never been late once, never took a day of course, Tracy wrote Fast Car. Two gifted Austin Rosen, Swae’s manager, and we off, never got addicted to drugs, and set a songwriters who tap into universal truths. set it up. One night, I took Swae to the positive example for me to follow in the studio to work with Post. We sat around business. One big highlight was the time joking for a half hour or so, and then he took me to Monte Carlo. It was my first WHERE I’M they went into the booth and did both KEY SONGS IN THE LIFE OF… time overseas, and to the crowds FROM – JAY-Z Sunflower and Spoil My Night in about that were lined up for was on the 30 minutes. Spoil My Night came out on amazing. Seeing how sharp they ran things first that Post Malone’s album and, a month or so made me want to be in the music business. Jay-Z put out after later, Dre London, Post’s manager, called Ryan Press Experiencing how music could touch Biggie died, and me and said, “We’re about to have the people all over the world changed my life. he used a lot of the biggest record in the world... I just played same producers Sunflower for the Spider-Man team, and The Philadelphia-born publishing supremo picks out the tracks that was using . This they love it!” The rest is history. that have had the most impact on his time so far… BREAK UP song made me feel like I was in Brooklyn’s TO MAKE Marcy Projects, while also getting some of UP – THE the essence of what I loved about Biggie. HAPPIER – yan Press has music in his blood. all activity and genres outside of Nashville. producer management firm, and worked STYLISTICS & Once again, it’s just raw storytelling at its The Warner Chappell Music Press, who joined Warner Chappell as a Creative Consultant at Notting Hill WHAT WE DO best. I don’t think it gets more real in the & BASTILLE R executive’s father, Ron Tyson, has in 2009, has worked with an array of Music Publishing. – FREEWAY hip-hop world than this song. He isn’t signed been a member of The Temptations for the acclaimed writers and producers during He started his industry career serving in I grew up in Philly to us, but Dan past three decades – and was previously the his recent career, including Rihanna, a co-management capacity at the J. Erving and it’s too hard Smith is one of lead singer of local Philadelphia legends, , DJ , , Group, where he assisted in day-to-day to choose one song from there. Break Up the most dynamic The Ethics. , T-Minus, , operations and management, as well as to Make Up is one of the most amazing LOVE – songwriters in the -based Press has some , Mike Elizondo, being a producer at Day One Productions. songs, by one of my favorite songwriters of YOUNG GUNZ world. I feel this song in my . It does impressive credentials and The-Dream. Before all of that, however, Press grew up all time, Linda Creed, who wrote it with No Better Love that amazing thing – to say exactly what all of his own, of course – having been Prior to joining Warner Music in Philly – surrounded, as he explains here, and Kenny Gamble. Linda died was the first hit I I’ve wanted to say at so many important promoted earlier this year to President of Group, Press founded Press Conference by an intoxicating cocktail of forward- at just 37, and was an incredible talent. was involved with, points . It speaks for me, and A&R at Chappell, with responsibility for Management, an artist, , and thinking hip-hop and sweet .... The hook is so simple but complex all in in 2003. I co- that’s the power of songwriting right there.

22 23 INTERVIEW

‘FOR ME, EMPOWERMENT IS NOT ABOUT PROTECTION – IT’S ABOUT RESILIENCE’

Lionfish Entertainment CEO, Rebeca Léon, is fast emerging as one of the world’s smartest artist managers. Now, she’s setting her sights on accelerating Latin culture globally...

s we all know, the blockbuster US and , while racking up to work in music. When I moved back music business isn’t exactly adverse more than 300 million Spotify streams in to Miami after college, all these record Ato hot air. In reality, not every artist her own right. (Juanes introduced León labels had set up which had not can be The Next Big Thing, and not every to J.Balvin and Rosalía – with, says Léon, before. I didn’t really speak Spanish that new song is A Guaranteed Smash – but “emphatic endorsements that they were well; I spoke it like typical Miami girl – my magically your ear to the litany of both going to ”. She adds: parents are Cuban. So, the idea of working meetings taking place in Los “Juanes believed in me as a manager before at a Latin label was a little foreign. But I Angeles as you read , and you else; he asked me to manage him, really wanted to be in music. I was like, might be forgiven for assuming otherwise. and offered to help me build Lionfish.”) ‘Just get me in the door.’ One maxim about the modern industry, León started her career as an assistant at I got my first job at Sony, then however, needs no such false hype: Latin during the first wave of modern called Sony , as an assistant. I music is exploding into the mainstream. Latin pop success in the late ‘90s, before harassed the [Sony] receptionist to give The numbers just don’t lie. Last year, joining EMI at the turn of the Millennium me the name of their temp agency, and according to the RIAA, the US-based – where she fought the headwinds of a got the job through them. I was there for Latin recorded music business grew 18% business being rapidly devoured by piracy. the absolute glory of what we can call the to $413m – a significantly sharper than From there, she ended up at AEG in Los Ricky Martin era – the Grammys and La the wider Stateside industry, which grew Angeles as a , where she spent 11 Copa de la Vida, Livin’ La Vida Loca, all 12%. And here comes the ‘whoa’ stat: these amazing things. Labels were some 93% of US revenues generated making money. And then by Latin records in 2018 came from “Juanes believed in started to happen. streaming platforms – highlighting the music’s deep pertinence amongst me as a manager Oh... a young audience. I remember them us all into Rebeca León operates at the heart before anybody else.” the conference room at Sony in of this booming cultural movement. January 2000. They’re like, ‘So... For one thing, she’s the manager listen. Things are going to change.’ of J Balvin, the Colombian streaming years as part of the company’s subsidiary You just knew this was going to . sensation who shook the Grammys earlier Goldenvoice – building her reputation as And that summer, they started firing this year when he teamed up with Camila an ahead-of-the-curve expert on new and everybody. Cabello for the show’s Technicolor opening established Latin artists. She left her role as I was excelling in my career, but it was a performance, and who boasts more than SVP, Latin Talent at AEG in 2017 to fully very difficult time to be at a label. Every day 48m monthly listeners on Spotify – where commit to Lionfish. you’d get to work, despite working , he became the world’s most popular artist All of which makes León, without it had gotten worse. We couldn’t put the in summer 2018. question, one of the world’s most genie back in . I left and joined León is CEO of Lionfish Entertainment influential artist managers right now. Yet EMI, where I was for three years. And as – which she runs with business partner, ask the Miami-born exec where on the much as I had some success, it was very Latin superstar Juanes. timeline she sees ’s trajectory demotivating to work in a place when you Lionfish also manages Spanish singer/ today, and she’ll answer very clearly: you knew the business was shrinking everyday. songwriter Rosalía, who tore up Coachella ain’t seen nothing yet... 2019, cementing her status as true Latin Did you leave EMI for AEG right away? pop royalty-in-waiting. A priority act When did you first decide that you Not initially. I left to go manage a young for Columbia (and its head honcho Ron wanted to work with artists for a living? artist I had signed; I wanted to take my Perry), Rosalía has already collaborated I don’t know that I ever made a decision chances. I did that for a couple of years and with the likes of James Blake, J Balvin to work with artists; a decision then AEG called me. They were like, ‘Hey,

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entire music culture. What we have to It’s definitely going to grow much What’s the proudest moment of your do now is take advantage of all of this more. Imagine when Latin artists start career so far? attention and follow it up with great music collaborating with Indian artists. We’re It’s the little things that end up being the and other great content, so that it’s not just already starting to get real interest in big things. It’s starting to work with an a ‘moment’. I’m passionate and committed Asia. We haven’t even tipped the scale yet. artist and getting them out of a horrible to making sure that this ‘moment’ turns There’s a lot of world to conquer before we record deal that really changes their future; into a lifetime movement – [that] this can say that we’ve peaked. when they were going to die of hunger in kind of positioning in the world for Latin I feel like this is a : given the that deal, or be lost in irrelevancy. When culture lasts. explosion of Latin music, there now has you can fix that for them and you know The hyper-consumption from Latinos to be an even bigger explosion of Latin that it’s a game-changer in their lives, that is changing the global status of the whole culture. We have to follow this up with makes me so happy. culture. It’s providing so much power. really great movies and really great TV Or when you take an artist from absolute Interscope has just hired the former shows. That’s one of the things we’ve been obscurity to getting on to the main global head of Sony Music Latin [Nir Seroussi] focused on for the last year; [Lionfish] stage, it’s like, wow. None of this comes out because they know there’s a real business has seven film and TV projects that we’re of ego for me. [I’m driven] by how happy it here. Capitol is doing more [with Latin]; working on. Some of them star Juanes Columbia is all in on Rosalía [as a priority]. and Balvin, some of them don’t. I’m super Rosalía That’s different – it wasn’t like that [with focused on moving forward beyond music. frontline US major labels prioritizing Latin Look out for increasing crossover between music] even two years ago. It’s so healthy the movie industry and the [Latin] music and it’s so exciting to see. culture, because it’s coming. Latin music needs more platforms, You co-manage J. Balvin with Universal such as movies and films, to Music Group. How is that dynamic? grow. It can’t only exist on Like I said earlier, this industry is all about radio and music services. J Balvin Juanes partnerships and relationships. Universal has been so good to my artists, a truly great What advice would you partner. The results speak for themselves – give a young manager we’ve got this job for you in L.A, booking during your first stint as an artist they believe in me. It feels . today? a theater. You know everybody and we can manager? that those relationships you foster have I’m a huge believer in building strong Number one, I’d say try teach you the rest.’ And I was like, ‘Okay!’ The most important thing is relationships. come from a genuine place. teams around each artist, and that to spend a week with They were really, really and I wouldn’t have been able to do that job everybody needs to be incentivized. In the a manager before you let me grow; my role turned into a if I didn’t have amazing people supporting Where was the Latin market during its end, if [ partnership] helps us decide you want to be global position because I was involved in me. None of us have a ; we’re all last commercial wave versus today? build [Balvin’s] business, there’s no reason a manager. This job is South America as well as the US at the end, there on a prayer, believing our The numbers don’t lie; it’s a real market why we shouldn’t do it. really, really hard and it [as part of the booking team for] the today, and it’s only getting bigger. requires a lot of personal Stones, the and all The rise of the streaming platforms How close do you work with Universal sacrifice. It can be those big tours. We broke records “If you have the right has changed the dynamic for Latin Music Latin boss Jesús López? What are amazing, but it can also be at Staples Center, Madison Square music. Managing a Latin artist now his best attributes as an executive? very thankless sometimes. Garden – really seeing the rise of the attitude in this business, is not what it was ten years ago; the We talk several times a week. I love him. If something succeeds, it’s Latin business. people don’t fuck with world is listening and receptive. All I need to say is that his commitment never because of you; if We took chances too; we were the There are big TV opportunities left to the artist is real. He picks up the phone. something fails, it’s always first people to really tour reggaeton. you so much.” and right. Before, [Latin] clients He helps resolve things. He’s a true partner. your fault! We took [reggaeton] into arenas would do the Today Show or We’re both constantly dealing with each and really legitimized the genre in the Show and people were other’s opinions but we always do so in a the industry, because before that people artist is really going to connect with people like, ‘Oh my God, this is the biggest deal!’ spirit of what’s the best thing for the artist. assumed reggaeton didn’t sell. the way they connect with us. To achieve Now, it’s normal. There’s no problem that you can’t fix as That’s how I met J Balvin, because I was that, you need allies. Ten years ago piracy made it impossible long as everybody is on the same page in looking for somebody to open for Enrique You have to plant seeds for your future; to quantify consumption in Latin terms of their intention and their agenda. [Iglesias] and Pit[bull] and he was so not everything you do now pays off right territories, but now with the [streaming] obviously the right guy. away, but it does pay off eventually. So platforms, we can see that there is hyper- away are we from the many people have helped me achieve consumption in the region. That has really commercial peak of Latin music? What was the biggest lesson you learned things for the artists I work with because created a paradigm shift in power for the Does it still have space to grow?

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one person. I didn’t have a woman in music that I was like ‘I grew up thinking I wanted With Balvin at to be just like her.’ Coachella 2019 I grew up in the business really admiring people like Jerry Weintraub or or – these guys that pushed and pushed and built something humongous on their ideas and their passion. Just regular guys that came out of regular families; nobody gave them a break, nobody did them a favor. They just had ideas and they hustled. That always inspires me so much. Where is the female who can fit in that group? I’m sure she exists, but I don’t know her – and that’s why more about women who succeed. We need to do that with executives, as well as, especially, female producers, female songwriters and female engineers.

Your professional talent aside, what’s enabled you to succeed as a high profile female artist manager? My dad, when I was a little kid, used to ask Lionfish client Fuego me almost every day: ‘What do when you grow up?’ It was a constant thing I had to know. they can do whatever they want, we would so scared – but, you know, if you act like makes me to think we changed a talented Has the music business made you a You’re a rarity, unfortunately: a female I remember , I said to him, ‘Can all achieve so much more. food, you’re going to be food.’ person’s life. There are so many millions of tougher person? manager of truly blockbuster artists. I be President of the United States?’ And he That’s the point. If you have the right artists that never make it; they just stand I’m really obsessed with sharks, as well Yes, that is unfortunate. First of all, it is was like, ‘Yup, you can. You should know Has that been especially true for you as a attitude in this business, people don’t fuck in front of their mirrors . So when as dolphins and whales. I once saw this changing, and I’m so happy about that. no girl has ever grown up to be President. woman in business? with you so much. you can illuminate someone’s talent and amazing documentary about how the orcas The last year, we’ve seen a big shift in So you’re gonna have to work extra hard, I’ve always just worked really, really hard, the world notices, oh my God, it’s a gift. in New Zealand and Australia have figured awakening consciousness, like, ‘Hey, maybe skip out on having a social life and taken and been really clear If I could give you a magic wand right It’s beautiful. out that if they come up from underneath this needs to change.’ And I feel like the make a lot of sacrifices...’ about what I want. You can’t get to where now to change one thing about the a Great White [shark] – if they bump its industry has been super receptive to that. Then, when I was eight years old, you want to go if you don’t know where modern music industry, what would it What’s been the biggest challenge I’m on the board for She Is The because I had a heart surgery as a baby, you want to go. be and why? of your career so far? Music with Alicia Keys, Sam Kirby I was like, ‘Can I be a pediatric cardiac If we can just teach girls to think like Oh my God: I would stop with the Dealing with so many assholes “None of this comes Yoh, Jody Gerson and everyone, surgeon?’ And he was like, ‘Listen,’ they’re capable and that they can do collaborations. It’s getting ridiculous. [laughs]! It’s true – honest to God! and it’s definitely a huge objective. because my dad is a pediatrician, ‘You anything, we’re going to see the [gender It’s like nobody can put a song out by The music business is a really tough out of ego for me... Girls need to see more examples of have to go to college, then medical school, balance] shift so fast. It needs to start when themselves now! business; not everybody is always women who have done it, so that then [study] your specialties. You’ll have they’re in school, when they’re at home. What happened to artists standing on honest and sincere. You have to I’ve learned to flip they can grow up and go, ‘Oh, I 12 years of school and you won’t start If you teach girls to have the right their own two feet? What happened to listen to your inner voice and trust the shark.” want to be like that.’ I am also part practice until you’re about 32 years old. attitude, so many situations will improve. building a career on your own shit? your instincts – but you also have of the Grammys Task Force, led But if you’re good with all that sacrifice, For me, empowerment is not about It’s just getting so diluted. I feel like we to learn to speak up and deal with by Tina Tchen, in an effort to then yes, you can.’ protection – it’s about resilience and dealing need to go back to artists being themselves, challenging people who are not part of the , then they flip it – it goes into a coma. create a more level playing field for women And then I was like, ‘Okay. Hey dad, can with tough situations. I was watching this rather than this whole marketing machine team around you that support you. Then they can it for lunch. and minorities. I be a singer?’ And he was like, ‘Absolutely documentary recently with this insane, of chasing streams. That’s super unhealthy. That’s why it’s so important to have When I was last honored by Billboard not.’ [Laughs] amazing woman who dives with sharks; Right now, people out there are looking good people in your corner, to have allies, What’s that got to do with the music , one of the things that Seriously, here’s what’s important about as I mentioned, I’m obsessed with them. for real music. Getting masses of streams because you’re going to find people who do business? they asked me was, ‘Who is your female that: if everybody has somebody in their went to the Bahamas to dive cannot be the we measure every not want you or your artist to succeed. I have learned to flip the shark. icon [in the music biz]?’ I couldn’t think of life who just told them now and again that with [her], and in the episode he’s like, ‘I’m artist. There’s much more to it than that. n

28 29 croll through the -ticked accounts of most well. The Beverly Hills-raised exec founded Artist Publishing major-league US music executives, and you’ll tend to find Group back in 2006, followed by the launch of Artist Partner ‘For artists, work ethic Sthe same old schtick: images of their artists playing career- Group in 2013. and , with boosting stages; flattering snaps of their newly decked-out office; whom Caren has worked for more than 20 years, injected a multi- a smattering of vacation/weekend shots accidentally-on-purpose million dollar investment into APG three years ago. Since then, and intelligence are just showcasing that sleek second home in the Hills. APG, which now employs more than 40 staff, has developed and Mike Caren’s Insta feed, however, offers a little something broken stars including Bazzi, , , more – a little something indicative of the inquisitive mind of the and NBA Youngboy, as well as an electric array of songwriters such man himself. A swift perusal of Caren’s page throws up graphs, as , Yung Berg, Allen and Madison Love. as important as talent’ charts and textual provocations covering themes like ‘10 trends Most recently, Los Angeles-based APG unleashed , who that will reshape the music industry’, how fast TV watching is hit No.1 in many territories this year including the UK, Sweden, declining amongst Millennials, the average ages of social media and Germany with international smash “”. use in 2019, and the ‘share of ear’ that radio claims amongst US Caren began his career aged 17 with Atlantic Records, and What does the future of the recorded music business consumers over 13. later served as Co-President – alongside – of the This all fits because Caren, as well as being obsessive about relaunched (, , Cee Lo look like – and what role will labels play in its evolution? the A&R process, is also obsessive about media trends, and how Green) between 2009 and 2012. MBUSA recently sat down with consumption of everything from HBO to Fortnite and Instagram Caren within APG’s Fairfax studio complex to ask him all about Mike Caren, one of the standout A&R minds in the US are munching into the daily music habits of today’s teenagers. his A&R philosophy, and where he sees the future of multimedia industry, gives his view... Such compulsive attention to is serving Caren’s businesses going in the next few years...

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Tell us a truism about the music industry. Give us an example of a tough conversation with an artist. So much of what moves the needle in this business is just about Those conversations revolve around expectations, timeline, listening – really listening. When a label or publishing exec has patience, vision. I love artists that have huge goals and who know a 60 minute meeting with a producer or songwriter, once you’ve several moves they want to make to get there – who aren’t expecting caught up with each other, you’re already 30 minutes into it, and to make it all in one single play. I love songwriters turning into only then do you start listening to music. artists too, because they’ve had this passenger seat in other artists’ That leaves you to listen, and consider eight to 10 careers to which they’ve contributed. The writer-turned-artist has ideas. Then the meeting is over – and you haven’t even cracked seen other artists making tough decisions, and what the results the surface. If you’d allowed for 90 minutes of music, you would were, which helps them avoid their own mistakes and . probably have found something really special. So for that last 20 APG is the best at amplifying, investing in and -charging minutes, I might ask you to [hand over] everything you haven’t artists who have a lot of ideas. And the best ideas always come played me – whether you think I might or like it. Then from artists. It’s always better to let an artist make a mistake, I’m actually going to listen to it all and hear the stuff that other because when a smart artist makes a mistake, they learn from it. people don’t get to. If you just try to protect artists from making those mistakes, it doesn’t help, because when they become very successful, they will You employ more than 40 people at APG, and you’re expanding. ultimately take all the ; your job is to prepare them Can you actively keep the roster here capped at certain size? to make great ones. You can’t shelter talent early on, then expect Yes. We started in the publishing world, where I felt that one people to act like an experienced artists when they’re successful. A&R executive couldn’t really have a high impact on every one of their writers unless they were limited to approximately 10 you feel about the number of songwriters behind the writers. I noticed that at most of the majority of hits today? major publishing companies, when The other day somebody sent me a I talked to executives, their personal “You can’t shelter talent video with Bob , One Love roster would be over 50 writers. I and said, ‘What an incredible song found it hard that they early on, then expect and songwriter.’ I said, ‘Yeah, Curtis would be able to deliver something Mayfield was a fricking genius.’ They significant for every writer with that people to act like said, ‘Are you kidding? That song roster size. Records is about a smaller experienced artists.” was written by !’ It’s a amount of artists, but it’s also about co-write. Curtis Mayfield and Bob building teams. People with different Marley. And if Bob Marley can co- perspectives, different skill sets all working together, learning write, anyone can co-write. from each other and bringing different things to the table. I work with people that have so much passion and intelligence and One defining modern A&R trend is that of collaboration. Two determination. This company is a sum of those parts. There’s 40 people from largely different genres cross-pollinating fan bases. people here that have the impact of 150. What do you make of that trend, and does it ever concern you? I saw an exhibit of Picasso and Matisse years ago. They were friends What would is the defining A&R philosophy of APG? and they did interpretive pieces of each other’s work. Their artistry We believe that work ethic and intelligence are just as important was so clear when they did so. Anything that allows someone to as talent. A smart and hardworking creative will keep improving demonstrate creativity and originality is an amazing vehicle – but whereas someone without that work ethic or vision might the song [has to be] organic and creative. creatively just tread water, or even decline in their quality. The biggest thing is getting to know writers and artists personally. Why did you started APG ? We work with them for days, weeks or even months before we sign First, I had been working as an A&R person at Atlantic for 10 a deal. We will often lose a deal because somebody – after working years. Having been in one company for so long, I wanted a different with APG – is rushed elsewhere in the industry by a bidding war experience and I wanted an entrepreneurial experience. I built a or whatever. And if that happens, it’s okay. It wasn’t meant to be. lot of trust at Atlantic, so they allowed me to create a partnership venture with them. But I operated it independently, and I love to Why is getting to know artists properly so important to you? experiment. Every session is an experiment; every marketing idea Ideally, you want to enter a relationship that’s a decade or decades- is an experiment; every day here is about experimentation. long. You can marry the first person you kiss, but I think it’s better And second, I had this philosophy, this is 15 years ago, that to go on more dates and ask a lot of questions to see if your vision songwriters and producers are artists in their own right – and of the future is aligned. When you have tough conversations that a publisher could publish their songs and get them paid, but upfront, it leads to better conversations for years to come. could also treat them as an artist and A&R them in that way, Ava Max

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include everything from festivals to clothing to charitable people love managing people and administration. Some people Kevin Gates Charlie Puth organizations. If build an artist’s brand, it’s one more love to be creative. Some people can do all of those things together. resource that we’re providing that I don’t think many others offer. And there are some people who are just true artists who want to color outside the lines and break rules. They don’t want any of the What makes a good artist manager? administrative burden. They don’t want to reconcile tours, or deal One, they have to have enough experience to know that everything with Social Security or 401ks, you know? changes every year. Two, they have to listen to their artist but also Some of that’s to do with different points in your life. You speak the truth to them. And, of course, work ethic and intelligence may be young; you may want to have fun and be creative and are so important – especially the work ethic, because managers break the rules and not deal with turnover and all of these things. have to provide an example for their artist. Great managers are also And later in your life, you may want to be more stationary great communicators; people who bring people together. and operate a company and a business. People just need to know It’s a weird time for the music business because there’s so much what things entail. opportunity now. But there’s also this ‘Napster Gap’, as I call it, There are an increasing number of artist managers who now 2002 to 2014, where only a few people invested into the business, say that running an independent operation for an artist isn’t and only a few people got hired – so there was not as much ‘management’ – it’s a business partnership, so it shouldn’t be 15 or opportunity for mentorship for a lot of people versus what had 20% commission, it should be 50% across everything, including come before. There are some incredible managers out there who touring. And that all depends on how much of an artist’s business are just so smart, and had to learn the game on their own. is just music – whether they need a manager who’s just doing music, or managing several businesses. The head of , Reed Staying independent is probably Hastings, said earlier this year that the right thing for a lot of artists Fortnite was a bigger competitor “If you’ve never played and it’s probably the wrong thing to his company than traditional for a lot of artists. It all has to do rivals like HBO. What do you Fortnite, you’re going with individual ambition, and how make of the idea that other media you actually want your 16 to 20 is stealing attention from artists to fall a few steps to be spent. and music? behind.” It’s something I think about a lot. In an age awash with A&R Photo: Jimmy-Fontaine I heard about something recently data, how about the that said that Americans have over 11 hours a day of media reduction in signings based purely on based on gut instinct? providing the introductions, the insights, and the resources that as interns or assistants – and all of whom have signed Gold or consumption because of how much multitasking they do – like I love data... partly because so much of the major label business is labels provide to artists. It was a learning process because I didn’t Platinum artists or writers, or had hits this year. But I’m also how they will play video games while listening to music. Their focused on it, which leaves all this open territory for us. But, also, I know about publishing, and I didn’t have the budget to chase hits, thrilled to see fast career growth and broadening responsibility consumption is literally doubling. will say data can definitely show more than just momentum, it can so we had to be bold. from vets that joined us such as Elyse Rogers, Angie Pagano, Mike I see incredible opportunity there, because if you work in the reveal a pool of artists who didn’t wait for anyone to move their Mathewson, Olly Sheppard, Kelm, and the list can go music business and you’ve never played Fortnite, you’re going to career forward, who got out of bed every day and worked hard Why is so much A&R focused entirely on the new – the thrill on. Fifteen years in, I look around and see our team members fall a few steps behind. to move the needle. Somebody can they’re going to work of ‘breaking’ something? thriving, and people who’ve cut their teeth with us at much How Fortnite makes its money is worth thinking about: hard all day long, but an artist that had no resources that went out Out of anything in this business, I get the most satisfaction from every label, from A&R Executive to Chairman. the short windows of items being for sale; the opening for and built some fans? That’s someone you know wants it. I’ll never seeing other people with their first big successes: their first hit other platforms [as the game can be played across different discount that, as work ethic is so essential. song; their first platinum record; their first sold out tour; their first APG takes a approach with its artists – your brand devices]; the live events; how [Epic Games] updates and changes song on the radio. is kept on the sidelines. Why? the game’s dynamic to keep things so exciting. There are so many Where do you get your work ethic from? Every time a new artist, a new writer has an experience like that, We’re too broad to create a single, forward-facing brand. The amazing things to learn from it. My mom’s creative. My dad’s organized. I love this job – this it’s contagious. To me, that’s more powerful than congratulating great labels that I love had, and continue to have today, sonic As far as competing in media, there’s going to be huge L.A. isn’t work, look how soft are! The worst part of my job someone on their fifth of sixth platinum album. It’s an honor to consistency. They had a cultural voice and a specific niche, with production competition. You have Netflix, Apple, Amazon, Hulu, is sitting waiting for someone to show up who’s late. That’s it! make music – it’s exciting and it’s an adventure. a sound or a through line. I lean in to creative people; we’re not Spotify and a bunch of other companies with endless amounts And , I can always fill those hours by listening to music I’m really proud of the artists and writers that have been going to not sign an artist just because they don’t fit in with other of money going to go into content production. It’s going to anyway. successful, but I’m just as proud of the executives. That goes for artists on our roster, or not work with an executive because they’re mean a whole new competition for creative talent, and it will be the team here, but also people that have previously worked or a certain type. There are no rules and no limitations to who APG interesting. It could be incredible for talent – and it will definitely I’m very sure you could have capably run an established major interned here and moved on. I root for their success. works with. We just want to work with people for whom we can fortify L.A. as the creative capital of the world. label group. Contemporaries like John Janick are doing it... Right now, I’m in awe of A&R moves from Miles Beard, Jeff deliver more than anyone else out there. He’s awesome. Vaughn, Tizita Makuria, Eli Picarretta, Edgar Machuca, Matt Also, I love our entrepreneurial artists and I don’t want to take There’s a strong narrative out there about independent artists. MacFarlane, Lisa Mottahedeh, David Phung, and Dan Snyder, away from their opportunity to build their brand – both their How do you counter that with the value of labels? Why did you choose to build something from scratch, rather all of whom landed their first A&R roles here – several starting artist brand and their company brand. I love it when an artist’s There’s no one-size-fits-all, right? Some people love business. Some than run a big frontline label during this period of your career?

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Kehlani ACCESS WHAT YOU'RE DUE

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170,000 songwriters Photo: Arturo-Torres 20,000 publishers

1.5+ million songs I don’t think anyone ever offered me a job that had the freedom everyone here to think like entrepreneurs, and to make decisions. that I now enjoy as an entrepreneur. As an industry, we need to to run this company differently from, say, the way the empower people and trust them. There’s always a lot of oversight legendary ran Arista. He’s incredible, but I hear he and structure in majors – and it’s probably needed. But now, personally approved every piece of art and every mix. Again, just we’re facing an ever-evolving future, we have to experiment and like the artists here, everyone should be making decisions, seeing to do R&D. the results and learning from them. I want every executive I work Change is inevitable. Change is with to feel that their career grew good. But you have to try things in twice as fast in this organization LEARN MORE ABOUT order to figure out what works with “We’re facing an ever- than it did anywhere else. change. It’s inevitable that artists are going to change the way they make evolving future [so] we What’s going to change at APG music and market music – and over the next five years? anyone who clings on to the past have to experiment We’re trying to reorganize the entire Global Music Publishing Administration will get left behind. I love nostalgia and do R&D. ” approach to being a global company. like anyone else; we can still tell Many major labels don’t seem like great stories of the good , singular global companies; they’re a but we have to be open to try new things all the time. bunch of companies, around the world, that license to each other. Spotify is a global company; they have editors in different offices, Let’s talk about the future, then. What are you excited about? but they are a global company. That’s something we’re a couple of SIGN UP FOR OUR NEWSLETTER We are a very de-centralized company; I’m trying my absolute best steps ahead on and I don’t think it will years. I think it SONGTR.ST/NEWSLETTER to build the most entrepreneurial organization possible. I want will happen way before then. n 7 37 INTERVIEW

‘THIS BUSINESS IS CHANGING – IF YOU’RE NOT With two : Berry Gordy WILLING TO INNOVATE, YOU’RE GONNA BE LEFT and Clarence Avant IN THE DUST…’

Imagine running Motown. Imagine coming in every day, seeing that logo, feeling the eyes of history upon you. Ethiopia Habtemariam does just that – and she’s smashing it....

thiopia Habtemariam remembers But when it came to running a record Now firmly established as a jewel in the well when hip-hop wasn’t hot. In label, she found a very different creative Capitol Music Group setup, Motown is Efact, she doesn’t have to try very ecosystem . a key player in both CMG’s resurgence hard at all. “I’m not going to lie: my first year as and the blockbuster success of modern The night before we sit down with President here was tough,” she says today. US hip-hop. Habtemariam, alongside Habtemariam in her office in the Capitol “Streaming hadn’t kicked in, and we had CMG topper Steve Barnett, led a Tower, Hollywood, we share dinner with a these fantastic artists, but I just couldn’t transformative partnership with - fellow high-flying exec in the US business, get any momentum. who delivers a jaw-dropping stat. “You “Even having a No.1 record at Urban want to know how much this business has Radio didn’t equate into any kind of real changed in the past five years?” he asks. sales. There’d be that quarterly [corporate] “Everyone’s hip-hop, hip-hop, hip-hop check-in, and you were looking at your based Quality Control back in 2015, we’ve been able to do for them and their That getting past those frustrations is now – but check the record: in 2013, there P&L, thinking ‘f*ck’, knowing you’d be which has reaped huge dividends via positioning, working with QC, has been all a matter of communication. Almost wasn’t a single black [lead] artist at No.1 held accountable.” releases from , , City game-changing. Our team here is everyone is working in music because on the all year.” Girls and , to name a few. incredible. We get to strategize and really they love it – at least the people I work We checked the record. Motown’s own roster today also includes figure out how to grow them and take with. If you can acknowledge that when Unbelievably, it’s true. priority acts like BJ The Kid, things . communicating with whomever you’re For Berkeley, CA-born, Atlanta- “The value of a Chaz French and James Davis. A big part of that is global. We’re dealing with, it helps them buy into your raised Habtemariam, this period Habtemariam’s certainly come a long always thinking about streaming, how it [project] and become advocates for it. And is still very much fresh in the record label comes way from the start of her career, interning connects the world; how people in Africa then you can execute a great plan. memory. The exec was promoted down to its ideas.” at Elektra in her teenage hometown of are listening to the same music we are You don’t hear things like ‘this is the to President of Motown Records in Atlanta, having been inspired to enter the the moment it drops here. , precedent for things’ [in major 2014, after three years as its EVP. record business by LaFace Records’ head of worldwide, are on the same wavelength – labels] so much anymore. This business is At the same time, Universal promotion, ... we have to strategize around that. growing and , and if Music Group boss Sir Lucian Grainge You already know you’re not willing to change and innovate announced that Motown would be the rest of the story. You’re fighting a fervent independent Are artists noticing the value that major on the way, you’re gonna be left in the dust. moving back to Los Angeles as part of the Habtemariam wasn’t artist out there. What’s the value of labels bring? The good thing about arriving here rejuvenated Capitol Music Group (CMG). out of step with public a major record company in 2019? There’s power in being signed today. And [Capitol Music Group] of As Motown President, Habtemariam trends – the music Good question: I remember when I was just I’m feeling it more now than ever, because the rebuilding process [in 2014], was that initially continued in a dual role – also business was. working in publishing, before I made the even some of these big artists who had we were all basically starting from scratch. holding the position of Head of Urban As streaming transition into a label, I even questioned the ‘f*ck major labels’ attitude for a Steve, Michelle [Jubelirer], myself; we Music at Universal Music Publishing exploded in the this notion a bit myself. minute are coming back now – because were really given the opportunity to build Group – before leaving that gig behind United States, During my time as a publisher, I also they appreciate the power and expertise something fresh, make new and innovative to focus fully on Motown and a larger so hip-hop did some management for , that is here: the offices in all the markets, kinds of deals with artists, labels and other executive role within CMG. became I signed as a writer, and I had some the intricate planning, the timeline of partners. It’s allowed us to be much more At UMPG, where she’d worked since biggest genre frustrations with the label system not execution, and the artist development – nimble, and do things differently. 2003, Habtemariam signed the likes in the , moving quickly enough. knowing who the right people to connect of , Justin Bieber, J. Cole, claiming, according I’ve since learned that the value of a you with are, creatively and business-wise. That Hot 100 stat from 2013 – with , Ester Dean, Hit Boi and to BuzzAngle, over record label honestly comes down to its zero lead black artists at No.1 in a year Miguel, playing an instrumental role in a quarter of all on- ideas and a team around the world that You say you had frustrations with major – is shocking and fascinating. Was the the increasing influence of hip-hop on demand audio streams can execute your vision. With Migos, labels not moving quickly enough in the industry that much more controlled mainstream US pop hits. in the States last year. for instance; since we stepped in, what past. What did that teach you? even that short time ago?

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With With James Ross at the InStyle Davis and co. Badass Women Dinner at the Billboard in L.A. last year 2018 R&B Hip-Hop Power Players event in New York Photo: Getty Images/Charley Gallay Photo: Getty Images/Theo Wargo

In a word: yes, but, I was having a lot of people, whether it be through the mix never going to change. I’m taking great How do you make the most of this about artistry and talent. We can’t put it no room left for us now.’ And I’m success as a at that time tape circuit, or through platforms like My pride in leading Motown at this particular moment, and prepare for the future? in a box. Musically, you don’t always have saying, ‘No, that’s not it at all.’ But I can’t and was almost shielded from that reality. MixTapez, Audiomack, etc. time, as it of our history; how Every [major label] should be signing to rely on a reference from the past to see deny that it’s satisfying for me to say that I was working with some of music’s Then, when Spotify, and Motown started blazing this trail in the diverse music. It shouldn’t pop, or what’s possible in the future. those guys [who suppressed hip-hop], they most talented and successful writers and the others really kicked in, we started to 1960s and has continued to do so in every , or hip-hop, or R&B, or whatever It’s about having great A&R people that neglected a space in music for a really long producers, black talent who were writing see the data coming in and found that decade since. the dominant genre is at the time. Even understand all kinds of music. That’s the time. And they were wrong. a lot of pop hits. So I never would have black music had not only permeated This year is our 60th Anniversary, now, when people talk about hip-hop’s core of it. I hate that people today sometimes believed that black performers would globally, but that the demand was growing and I’ve directed a re-branding of the dominance, I’m the one saying, ‘Okay look at [genres] like trends, because it ‘Urban music’ is a term in the be marginalized in that way. And then I rapidly. That’s when there was a real shift, label’s image and messaging for the 21st guys. Let’s not act like there won’t modern industry. What’s your view started working on the label side and I got when our industry realized that black century, reminding the world of Motown’s be some incredible alternative pop, of that debate? my first taste of, ‘Oh no. This artist and artists could have massive success around tremendous legacy. I can’t wait for everyone or that the sound might “I’m unshakable when I remember when I first got promoted that R&B or hip-hop record aren’t going the world. Look at what our partnership to see the incredible documentary – not come back.’ At its core, music to Head of Urban Music [at UMPG] to get to No.1 without certain changes,’ with QC has spawned globally: Three Hitsville: The Making of Motown – that’s is about an emotional connection I believe in an artist and a few people called me. One or, in the case of R&B, without a certain young artists from Atlanta – Migos – have coming later this year. It’s not only one of between an artist and the audience. said, ‘Don’t let them put that in your feature. It was almost as if there wasn’t the become worldwide superstars and cultural the greatest stories in music and culture, I rarely hear artists and and their music.” title. Everyone that you’ve signed and confidence that black artists could get to influencers by staying completely true but there are so many parallels with what is label their music within a specific all your rising producers are writing the top. And if you don’t believe it can to themselves. Their success is not only a today. There are a lot of lessons to genre; they all create from a pure the biggest pop hits.’ And I was like, happen, it’s not going to happen. testament to their talent and charisma, but be learned from the past when it comes to place of emotion and feel. means that at some point, someone’s gonna ‘Damn. You’re right!’ But then I spoke to Then, in my first year as President of to our partnership with the QC team and knowing what can be achieved. We have to recognize that genres are say, ‘Oh, [that genre is] falling off.’ That’s other people : ‘, what’s Motown, it was that all of our belief that this would happen. Look at how these young black blending more than ever before; look at not the reality of how humans experience with that title? If you don’t embrace it, I was struggling to justify the investment It might seem obvious now, but we had artists from Detroit created music that Halsey and how broad her palette is, or how music – which is affected by our mood and someone else will.’ in the roster because it wasn’t turning into to push through a lot of obstacles along the transcended so many barriers – racial, a young British artist like creates the reflection of the world around us, a So ‘urban music’ or ‘black music’, anything immediately [lucrative]. But we way, which is okay. I like proving naysayers social, economic – and united people an R&B record like Boo’d Up and has a million different things. it’s really not about the terminology we always felt certain that, culturally, [urban] wrong, and I’m unshakable when I believe around the world while becoming huge pop success. As creative executives we I’ve heard some backlash to the urban / use. What’s important is that there are music was permeating and connecting to in a particular artist and their music. That’s superstars in the process. have to remember that at its core, music is hip-hop ‘resurgence’, like, ‘Oh shit, there’s opportunities for people in this industry

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They are disruptors and innovators, people With Migos, Steve Barnett and QC’s founders – who have really changed the game and Attending the 2016 Kevin ‘Coach K’ Lee and Pierre ‘Pee’ Thomas inspire so many young people. I think BMI R&B/Hip-Hop Awards in Atlanta one of their long-term goals is to be remembered in the same way as a Def , or a Motown, or a Capitol. It has been so rewarding and to work alongside them. Pee and Coach love music, love their artists, have an incredible work ethic and are committed to greatness. They’ve forged their own paths and have created something special out of Atlanta. Their success proves that you can go and build your own thing without limits. We are extremely focused on building out [QC] globally. We recently went on a roadshow around Europe and all see how potent Quality Control has become in these different markets.

Do you have any thoughts on how you break personalities, not just tracks, in this modern era? It’s a challenge, but it comes down to

Photo: Lester Cohen/Getty Images storytelling; how do we take advantage of Photo: Erika Goldring/WireImage all these different platforms to really tell the world who an artist is? who look , and that they aren’t way up. And through my whole career, I’ve line label. It’s made such a difference, not You need to be consistent with that story it’s music.’ It was a quite unique situation worked in my favor, because it allowed me limited or marginalized in any way. always looked up to Jon [Platt] and have only to Motown, but to CMG’s overall and tell it through your music and across that my parents supported me in it. They to keep my head down and focus on the so much respect and reverence for him and commitment to black music that hasn’t all of the platforms and mediums we now saw how passionate I was and created some work. Also, growing up in Atlanta, I was Who are your mentors? what he’s achieved. Not just in his career, existed at this level for decades. have to connect with people. And the story protection around it for me. able to see a lot of successful black people, The first person I have to mention is but the example he sets as a human being. Like , I had my own personal has to be your truth. Now more than ever, My parents are very kind, good human so I never questioned the potential to Clarence Avant, who I’ve been blessed to We’re all blessed in this business to work experience with Motown. My parents we can feel when something’s contrived beings, and I’m an extension of them. It’s achieve my dreams. There were so many know. He’s been like a second father to with really talented people, but it’s all of are Ethiopian, and I’m first generation and not authentic. tough to be that in business at great role models to inspire me, and I feel me. I met him administered his our responsibility to not get too lost or Ethiopian-American. My mom loved the certain times; kindness can be mistaken very fortunate to have grown up there. catalog [at UMPG]. When I transitioned caught up in the power. You can’t allow Jackson Five, , What were you like at school and how for weakness. But again, I think we all I love being a woman. I love being a into the label and I was having that tough your ego to get out of control and forget and and would play that has your personality affected your career? have an opportunity in how we live our black woman. That’s a big part of who I time at first, I remember Clarence took me what the purpose of your being here is. music all the time. As I kid, for me, I was done the exercise of going lives to set a new example, perhaps as a am, and I love that my personal life and to lunch, and said: ‘A legacy like Motown a huge fan of that Boyz II Men, back and looking at photos of yourself positive reaction to things we may have career experiences inform my abilities and will tough. Don’t compare Can you give more detail on why you Bivins era of Motown. And you can’t forget when you were at school? I have, and it’s seen ourselves over the years. success in this business. yourself to the past. They tell you about all found running the label tough in your , Teena Marie and DeBarge. like, ‘Wow. I was fearless as f*ck!’ Like, I had the great shit, but they don’t tell you about early couple of years? Everyone has a certain Motown era no fear – at all. Any idea I had, I followed Have you ever felt that being a woman, If we gave you a magic wand to change the records that weren’t hits.’ There was a lot of instability around that means so much to them. But people through, and that’s a quality I always draw and/or a woman of color, has resulted in one thing about the music business Shanti Das at LaFace Records changed Motown. There were so many different often have this picture of Motown that’s upon in my adult life and career: Pursuing you being treated unfairly? today, what would it be and why? the course of my life. She provided me with structures we had to work within, and, rooted in the past. We certainly honor and dreams and ideas that some people might Yes – I’m sure of it. I’ve learned a lot from Simple: for people to truly honor the the opportunity to intern there and that frankly, it wasn’t getting the focus or treasure Motown’s legacy, but my job is to think are out of the box. those experiences, and I’ve decided . I would immediately get rid of changed everything. Another woman I owe support that it needed to succeed. Things also help the world experience Motown in Growing up as the daughter of African to let them hold me back from what anyone that’s only operating from a place a lot to is LaRonda Sutton, who created really changed for the better when we the present and future. parents, specifically, they [typically] only I’m here to do. But it wasn’t until later of ego or with bad intentions; get out of L.A. Reid’s publishing company, Hitco, relaunched Motown as a flagship label want you to be a doctor or a scientist or in my career that I understood that these the fucking way, you know? Music is the and introduced me to the world of music [at CMG]. I can’t say enough about Steve Let’s talk about Quality Control. Where a lawyer. My father, a scientist, has his barriers even existed. most powerful force we have in this world publishing. She noticed my talent early [Barnett]’s support and commitment to are they going to sit as a brand in the PhD, my mom has her Masters. But I was When I was younger in my career, I to bring us together, and that needs to be on and I learned so much from her on my Motown as a thriving and important front- history of the recording music business? like, ‘I’ve found my passion and my love: was naïve to a lot of things. This probably respected by all of us. n

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We can all agree that shows IF SONGS ARE MORE IMPORTANT globally could use a rethink, and this presents an Downtown client opportunity to increase the visibility of the craft Ryan Tedder is Exec Producer of new US THAN EVER, WHY DON’T MORE MUSIC of songwriting. Here in the US, we fragment music show Songland industry-facing songwriter awards by collection society and genre to our detriment. Producing a PUBLISHERS ACT LIKE IT? single awards program to celebrate songwriters would not only be more comprehensive, but it would allow for more resources to support efforts Songs are getting more valuable across all platforms, says Downtown CEO Justin like the National Music Publishers Association Kalifowitz. He implores the industry to improve how songwriters are recognized... (NMPA) Gold and Platinum Awards and other initiatives that could more actively drive visibility among consumer audiences. In late February 2019, the season finale of At a minimum, music publishers should The Masked Singer – a reality competition TV support existing media that highlight the art of program that features performing songwriting, such as this publication, Rolling popular songs in elaborate costumes concealing Stone and of course, American Songwriter. their identities – scored massive primetime But more broadly, music publishers should ratings in the US for the FOX broadcast develop consumer-facing marketing and network. In fact, the entire first season was so communications departments capable of successful, the network has already committed sharing the stories of their songs and the craft for two additional . Originating in of their songwriters far and wide. Consumer South Korea, the US edition is one of several media outlets are already clued in to the versions from around the world, including growing interest in songs, with established China, Thailand, Vietnam, and Indonesia, with columns and features like ’ forthcoming franchises in France, Germany, ‘Diary of a Song’, the ’ ‘Life of , Spain, The , and Portugal. a Song’, and ’s‘How We Made’, national and global song charts. In an era where This is simply one recent example of the all of which reach far wider audiences. NBC song copyrights are more important than ever, ways in which songs, distinct from any single has perhaps taken the boldest step with the “Publishers companies interested in measuring impact recording, have regained a cultural prominence launch of Songland, a Voice-style competition should consider not only the success of a single on a scale not seen since the early 1960s. show for which Downtown client Ryan Tedder should be recording pushed by one particular label, but Yet despite this ‘song renaissance’, the serves as Executive Producer. rather the extraordinary impact of hundreds indispensable contributions of songwriters they cover recordings, lyric videos, instructional Music publishers should also be pushing pushing for (and sometimes thousands) of professional and continue to be obscured and largely music performance, or personal user-generated for increased visibility as a standard point UGC , foreign language adaptations, undervalued. That’s why music publishers need “Songs have content (UGC). In most cases, the songwriters across contract negotiations. When licensing increased lyric videos and music instructionals that to work together globally to champion the art of whose work served as a foundational element to digital services, publishers should insist on pay homage to our clients’ words and music. songwriting to ensure that creators are properly gained a these businesses didn’t receive the recognition or the development of a ‘search by songwriter’ visibility on This collective global engagement would be recognized, valued, and celebrated. even the income their contributions warranted. feature and facilitate this through better data digital a far more accurate measure of the most For more than a decade, traditional media prominence Historically, songwriters have seen more exchanges across the value chain. impactful song in the world. has built international television franchises than 75% of their income subject to a complex As labels and DSPs look to expand how services.” This is by no means an exhaustive list; I’m sure such as and Idol on the back of song not seen web of government regulation, thanks in large they monetize music videos, publishers should if the broader industry prioritized promoting copyrights. Film directors from Sophia Coppola since the part to antiquated laws. While local negotiate for on-screen songwriter credit as the art of songwriting, we’d unearth many more and Martin Scorsese to Wes Anderson and The and regional advancements, such as the Music an important element of these agreements. opportunities to celebrate the work of our creative Coen Brothers often dedicate their early 1960s.” Modernization Act and the European Copyright For services with artist and label portals, we partners. This recognition would not only bring to reimagining songs from a bygone era. Directive are steps in the right direction, should be working hand-in-hand to develop them much deserved notoriety, but would Countless brands around the world, including addressing systemic challenges on a global integrations that enable the distribution of meaningfully impact our legislative initiatives in car manufacturers, consumer goods, retail scale will require the industry to educate and lyrics, songwriter bios, photos, social media and Washington D.C. and Brussels (and maybe, one outlets, and technology companies, among re-educate lawmakers, regulators, and judges, other information that can be displayed in-app day, Beijing) to ultimately result in fair and just others, have used cover songs in their advertising among others, on the foundational basics of alongside corresponding recordings. compensation for their extraordinary work. campaigns to connect with consumers. Digital how the music business works. But in the near With news that Billboard is planning to After all, if those of us who have been platforms, like YouTube, Facebook, and TikTok, term, music publishers should consider the recognize songwriters who contribute to the entrusted by songwriters to protect their rights have built multi-billion dollar enterprises fueled options we have to elevate the art of songwriting Hot 100, music publishers should take this and develop new creative opportunities don’t by fan engagement with song copyrights – be in the public consciousness. moment to lobby for the creation of both vigilantly advocate alongside creators, who will?

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‘CAN YOU HEAR US NOW?’ 300 Entertainment is making its presence felt in the US record industry – under the direction of its fired-up leader...

evin Liles has got something to say. The -raised exec knows full well that the music Kindustry chatter machine hasn’t stopped since the sudden exit of two of 300 Entertainment’s co-founders towards the end of 2016. , Liles’ long-time Def Jam and Warner Music ally, left to become Global Head of Music at YouTube, while Todd Moscowitz jumped ship to launch his own label, Cold Records (now Alamo Records) with Universal Music Group. Liles stepped up to become CEO of New York-based 300 in the wake of Cohen’s departure, but that didn’t stop pessimistic music biz whisperers from speculating that the company’s slimmed-down management team was a portent for the end of label – which took on a multi-million dollar investment from Ventures in its early stages. Today, Liles wants everyone to know that 300 was “never about one person. It’s always been about our mission statement, the artists we represent, and the people in the building.” Following the diamond-selling success of in 2015, says Liles, 300 has become a Top 3 US indie label in just five years. Its hottest artists today include , , – whose album went Top 10 on the last year – and , who not only featured on the Grammy-winning This Is America by Childish Gambino, but also had a star ’s Havana, officially the biggest- selling digital single of 2018 worldwide. Liles is adamant, however, that, despite its closeness to “the culture”, 300 shouldn’t be pigeon-holed as a hip-hop label – nor, for that matter, a US-centric one. Witness Drax Project, a four-

Photo: Jason Goodrich piece New Zealand indie/pop band who have opened for Ed

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Sheeran, Camila Cabello, and ; Liles calls them “amazing”, So what's happened at 300 after Lyor's departure in 2016? and is tipping them for big things. 300 also boasts signings like Well, I can only tell you we didn't lose one employee. We didn't Platinum-selling electronic trio Cheat Codes, plus LA-based lose one artist. We grew 72% that year. At the time [Lyor left], 300 singer/songwriter Maggie Lindemann and three time Grammy- [employed] 24 people, and now we have 42 people; at that time, it nominated rock outfit, . was 42 artists and now it's 100 artists. We have a responsibility to However, Liles – who spent eight years as President of Def Jam all of . As for Lyor, I’m so happy – man is at and EVP of Island Def Jam – still has a proud affinity with his YouTube and remains a partner in the platform we created. hip-hop roots. He speaks with particular energy about 300’s up- Think about going to your investors and telling them about and-coming rap acts, such as Megan Thee Stallion (signed via Carl growing 72%. Those are happy conversations. We’re having a great Crawford’s 1501 label) and Gunna (signed via Young Thug’s YSL, time here, developing artists, executives, and building culture. and who landed a No. 1 hip-hop album and No.3 US album with Drip Or Drown 2 in February). If you have a roster of 100 artists, you're a significant There are, also, more disquieting topics on Liles’ mind: from independent label. you want to achieve? the lack of racial and gender diversity at the top of entertainment’s We are looking for cultural disruptors. People like Young Thug biggest companies to the criminal justice system of the United who expresses himself in ways that some people agree with, and States – which, he says, continues to systemically punish people some people don't. I'm looking at people like Tee Grizzley who of color to an outrageous degree – and a broken education system comes out and makes a record called First Day Out and sells five that needs a massive overhaul. million single equivalents – and changes his family's life, because So, yes, Kevin Liles has something to say. Listen up... he comes from a broken home, with a father who passed and a mom who is incarcerated. You launched 300 just over five years ago. How should we As you know, our culture is exploding globally. Whether in think about the company today? France, in Germany, in the UK or Japan, it’s hip-hop right now. I We wanted to build a disruptor, want the world to know that we're to say, ‘Let's get rid of all the open for business, but that [to work tape.’ We didn’t even call ourselves “We didn't lose one with 300] you have to speak to the a ‘label’ – we are a platform for culture, and you have to [carry] the entrepreneurs, for entertainers, for employee, or one voice of young people. You can't executives, for creators to partner want to live off of what was done and do great things. artist. We grew 72%. I'm before. You have to make your own As I reflect on it now, [the launch] so happy for Lyor.” way and stand on your own. was like a Bat Signal for freedom; In a nutshell, our company is the freedom to do what we wanted voice of the new independents. when we wanted to do it, with the people we wanted to do it with. We are part of what I call the 'New Independents'; it’s not the Let’s have the independent artist discussion. Independent acts old way of thinking, it means being independent in partnership, have more options for distribution than ever before; how do independent in capitalization, and independent in collaboration. you separate yourselves from the other companies aimed at helping them? There were question marks when Lyor left the company. What First we’ve got to define: what is ‘independent’? I tell people, was the story behind that? ‘Okay. If you're putting up your own money, if you're calling all Lyor is a great friend and someone I speak to every day. There the shots yourself, if you're distributing your own record, if you 're came a point in time when YouTube and Google – one of 300’s shooting your own videos… that’s independent.’ And to be quite biggest investors – had a need. When you work in the business for honest, out of every [artist] selling that dream, nobody’s actually over 30 years [like Lyor], you operate for the greater good. And doing it. Every one of these guys had someone to help. Whether the greater good was to say, ‘Let’s improve the conversation around you had a private funder, your friend shot your video, or your what YouTube Music and Google Play, and streaming generally, friends are posting on socials and doing your PR. mean to our industry.’ To me, independence is a mindset, but in order to build that What better way to do that than to have one of us there? To into something special, it takes collaboration, it takes investment, have somebody that wasn't afraid to have the hard conversations? it takes a value proposition. We're living our legacy now. Everything we do [should] make I always tell artists, ‘Listen, we have to [demonstrate] value for our culture better and provide more opportunities in the media you every day… we have to show that we are doing everything in and entertainment. When you operate for the greater good, some our power, using every relationship, using every piece of capital people might be shocked. But we just played the hand we were that we have, to help you achieve your goal.’ dealt and continue to push our culture forward. It bugs me out when people act like success does not come Megan Thee Stallion

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Tee Grizzley Gunna Maggie Lindemann Young Thug

Drax Project without true partnership. Business is when two people come companies have systems that pre-date the streaming era, catalog together – and then one plus one can equal three, five, or ten. If and business systems that require a different type of infrastructure. you and I walk into a room together, we gonna get more than you We were born in the streaming era. We keep seeing executives walking in the room . Or me by myself. Period. There’s leaving major companies to come here because they wanna be part no question about that, and we are willing to prove it [at 300] of a company that has less red tape and more autonomy to make every single day of . a personal difference. This is not a conversation about whether you own your , Our mindset is that of an independent, but our muscle is that or don’t own your master. If one plus of a major. Are you worried about one can equal five, one plus one can relationships? Who do you wanna equal ten, is that a good partnership? “Executives keep call? Are you talking about capital? The reality is that any small We are financed to do any deal that business which wants to grow takes leaving majors else can do. Listen, we have on additional capital, collaborates enough capital [at 300] to make any more and brings in more partners. come here. They want kind of investment – big or small, This is true of any business, not just less red tape.” but we instead choose to double the music business. down on building and partnering Why 300? Why our team? We what's new; a new voice, a new have 42 people committed to showing their value proposition to sound, a new movement. And in five years, we’ve amassed over 100 you seven days a week, 365 days a year. gold, platinum, multi platinum and diamond-certified singles. And here's the good thing about it: when you’re on the In that case, what differentiates you from the major, global front line, it's okay to take some bullets. It's okay for a company record companies? If you’re fighting to sign the same artist as a to say they have more money than us or they could do this or that major label, you know that the major is saying: ‘300's just an us. independent. We have more global firepower than them.’ As an architect and partner of several successful companies, I’ve I love this conversation, because guess what? Major record heard that for the past three decades. I’ve been told ‘no’ my whole

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life. I’ve been told, ‘Get out of my radio station, rap is a fad.’ So do our own thing, is because there's a problem with the system why sit and compare ourselves to the big organizations of – not just the music system, but the education system, and the the past? Those that can't change directions on a dime? Those that justice reform system. This is life in the eyes of somebody who lives need so many approvals just to get one answer? it every single day. We were born to out-discover, out-sign, out- maneuver, out- I have created a diverse executive team at 300 and challenge build. That is just who we are. other companies to do the same.

One significant artist who has left 300, and signed a big major Are you hopeful that Jon Platt's appointment as a multi- deal with QC/Capitol, is Migos. Their most recent album, national CEO at Sony/ATV might change things in the Culture II, went double-platinum last year. Do you think corporate/c-suite world you reference? things have been done for Migos’ career since they left that Jon's a good friend and I believe in Jon. But I don't believe in 300 couldn't have provided? Jon as just an African-American – I as one of the I’m proud that we had the opportunity to work with QC and greatest executives to ever do publishing. Migos. Together we partnered to deliver the biggest album of their He's been given a great opportunity and I'm sure he'll do career so far, Culture I. I encourage everyone to do what’s best for very well, but one person doesn't change the complexity or them. I want to make this clear. QC, and we love Migos. the sensitivity that I have around the issue of diversity and QC will never tell you that we were not good for them. inclusion. There need to be more Jon Platts, Sylvia Rhones, and As a matter of fact, we partnered [with QC] last year to distribute Julie Greenwalds in c-suite positions. I know they are all are about one of the biggest projects, by Gunna and Lil the greater good. Baby. Gunna is ours through YSL, and Lil Baby is theirs. We’ve What’s so special is that there is so much entrepreneurialism done so much great business that we use the same deal structure in our culture out of necessity, and it has prepared us for that has successfully worked with us in the past. Check out our any opportunity to have any seat at the table. With my success, many collaborations over the past there's a responsibility now for me few years: we work well together to be outspoken, to help create and will continue to do so. “We have the No.1 change that's going to allow people to have even more opportunities What's the most exciting thing music and yet the than I have had. about 300 right now that people might not know about? c-suite in our industry You must remember gatekeepers The week that Gunna came with stopping hip-hop from getting its his No.1 rap album, and No.3 doesn't reflect it.” commercial dues earlier in your [Billboard 200] album, that week career. People in radio, people in Kevin Liles, shot in , May 2019

alone we were 1.5% market share [in the US]. retail, even people within labels. They look a bit silly now. Photo: Jason Goodrich So one of the most exciting things to me is building this label Listen, we got put out of so many radio stations. Literally put out. with Young Thug, YSL, and Carl Crawford’s 1501 and Rich The They wouldn't play our records, so we had to create other means. Double standards. A system that's rigged. Cheating the rising Eloquently answered – without answering! Hip-hop is Kid’s Rich Forever, because it reminds me of when we built Roc-A- We decided to create such a demand and such a groundswell that generation out of opportunity. Setting the music industry's booming, as you note. Not just in the US, but around the Fella, Ruff Ryders, Murder Inc, , and Def Jam radio had to what they wanted. issues aside, a good example in the news is the $25m spent on world in France, Germany, the UK... Can it bigger? South – all under one logo. It reminds me of that entrepreneurial You cannot stop a cultural movement. wire fraud for privileged kids to get a better education [in the You haven't seen anything yet. I love , I love AJ Tracey, I spirit, when everyone worked together to be great. I don't fault anybody, though. It's the same as people who said college admissions scandal]. We are fighting this every single day – love what the Zanybros are doing out of South Korea. From a corporate standpoint, I have a very diverse [world view] to African-Americans, ‘You are not a human being.’ It's the same privilege, entitlement, however you want to put it. We are collaborating with people all over the world because based on my experiences. I can look around my office today as people who say, ‘You shouldn't get a vote.’ That’s why what we need, right now more than ever, is diversity they believe in the cultural movement; not a colored movement, and see real diversity – diversity of people, diversity of thought, Hip-hop and youth culture are constant agents of change. I of leadership in all industries. People don’t understand; when I a cultural movement. This is not just in music. Look at the kids diversity of conversation and diversity of opportunity. went to college for electrical engineering, because I was told that saw Dick Parsons, Bob Johnson, and Cathy Hughes, I thought, at Fieldston that just sat out in New York – they camped out for you go to school, then you get a job, then you get your benefits. ‘I could be that.’ We need those beacons of light and opportunity three days, and got their demands met. [Students at Fieldston, a Speaking of diversity, you are one of a handful of people of I'm glad I didn't end up just listening to that. I wanted more. I so much: 'You can be a female CEO. You can be an entrepreneur. private school, protested against an alleged racist culture in March, color running significant US music companies. Where are we wanted to build something. I wanted to be an entrepreneur. You can be President of the United States.’ following the emergence of a video showing senior pupils using a at on the timeline of progression? Most people are still stuck in the old system. Maybe everybody racial epithet.] Other kids are fighting for justice reform. Racial It’s a big problem that we have the No.1 music [hip-hop] and doesn't want me at the country club. Maybe I don't really give a You said earlier that 300 is not for sale. Do you get phone profiling is at an and the constant divisive rhetoric yet the c-suite in our industry does not reflect where we are. Top fuck if I get invited to the White House right now or not. calls from people who are interested? used by the current administration continues to deteriorate all of Dawg, QC, Cash Money and others, keep putting numbers on I will always be a voice of change; and if change for the greater I've been told not to answer that question [laughs]! Listen, if a the hard work of our former leaders. the board, so that board should be as diverse as the music. We have good offends you, then simply put, fuck it – you're offended. major label can be valued at $44 billion and [300 Entertainment] Young people today are fearless, and they’re pushing for change. a long way to go and I will always openly speak about it. is at 1.5% US market share, you tell me if you think somebody They are saying, ‘We will not allow you to remove our voice One reason why we are independent, the reason we choose to What offends you? would be calling me. But we are not for sale. anymore. Can you hear us now? Can you hear us now?’ n

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‘I THINK THIS IS THE MOST EXCITING TIME THE MUSIC BUSINESS HAS EVER SEEN’ Three Six Zero has made a real mark in the US over the past decade, not least thanks to star client . ’s founder and CEO, Mark Gillespie, looks forward...

ark Gillespie grew up in Redditch, just south of MBirmingham, England – where, as a teenager in the mid-’90s, he developed his passion for as a record collector and amateur DJ. From there, he met local promoter Boulton, who gave him a job handing out flyers for Birmingham’s soon-to-launch legendary superclub Godskitchen. Within a couple of years, Gillespie – deemed something of an internet- age whizkid within Godskitchen – was becoming an increasingly influential figure within the club, helping pick out emerging DJ talent, while also building websites, launching digital marketing campaigns and acting as a talent liaison. This was a heady lifestyle for an 18-year-old dance music fanatic, which, by Gillespie’s own admission, invited “all kinds of crazy shit” into his life. Including the fact that local gangs – particularly the notoriously violent Birmingham Zulus – liked to frequent the club. “For quite a while, I wore a bulletproof vest to work,” says Gillespie, matter-of- factly. “That was just being sensible; there’d always be standoffs between various gangs Mark Gillespie over who was and wasn’t allowed in the club. And then one night, this guy pulled a gun out and waved it right in my face.” Gillespie was, relatively speaking, still self-preservation – not to mention one Funny thing is, Gillespie doesn’t actually living the dream. of the best contacts books in the world count this incident as his worst ever day at By 2003, Gillespie had progressed to of electronic music. The next step was work. That came a couple of years before, booking the DJ’s at Godskitchen and inevitable, wasn’t it? SUBSCRIBE TO OUR when he considered turning his back on the its related festivals, as well as processing Godskitchen began releasing music game for a ‘proper job’, by starting payments for talent and managing compilation through Sony Music, PHYSICAL MAGAZINES: an engineering apprenticeship (similar to project budgets. giving Gillespie a taste of how the wider an internship) at UK car maker Rover. If anyone ever tells you that learning on record business worked. “They were good people, but I hated the job is somehow bested by an academic Inspired by the likes of UK indie labels MUSICBIZSTORE.COM it,” he says. “One day, I just stood up and education, let’s just run through the skills Defected, FFRR, and Toolroom, he walked out; I realized I had to make my that Gillespie acquired within a few years hatched a plan to launch his own part- music stuff work, otherwise I’d be at Rover of joining a nightclub as the flyer kid, aged time record company – while still working for the rest of my days.” 16: promotion, artist liaison, accounting, at Godskitchen – and began scanning Getting a gun thrust in his mush for digital marketing, coding, talent booking, MySpace “for hours and hours most days, 1 55 INTERVIEW

Six Zero ended up going into business with for almost a decade. Today, after a transformational year, Three Six Zero is fully independent, and fully-owned by Gillespie. TSZ recently launched a new office in London, headed up by long-term friend of the company, Phil Sales. Gillespie, a major movie buff, has also quietly made a name for Three Six Zero in the film world, managing the likes of feature-maker Brady Corbet, Shameik Moore – the lead actor in Academy Award- winning animated movie, Spider-Man: Into The Spider-Verse – and bestselling author/ scriptwriter Bret Easton Ellis. Three Six Zero’s ambitions in Hollywood moved up a couple of leagues earlier this year, when Music Business Worldwide broke the news that the firm had acquired Westbrook Entertainment. That firm’s on-screen talent – including Will Smith, Jada Pinkett Smith, , , Kenna and Crespo – are all now integrated into the TSZ family. Calvin Harris What’s more, Three Six Zero launched Tiësto its own first feature film – the acclaimed Vox Lux, starring Natalie Portman and just trying to find new music played by says Gillespie. “Calvin said to me, ‘Are you from Rihanna to , Florence + Jude Law – at the end of last year. The business in the US? that things are done is totally different interesting people”. sure you want to do this?’ Looking back The Machine, , Khalid, Pharrell soundtrack to the movie was released on I love the professionalism; people really to the UK but I love it, and I’m hugely Eventually, Gillespie landed on the now, leaving [Godskitchen] probably was Williams, Ariana Grande and Migos. Three Six Zero’s in-house record label, take pride in what they do and that passionate about it. MySpace page of Scottish producer/DJ, a real leap of faith, but it didn’t feel like it In tandem with Harris’s rise, Gillespie, which Gillespie runs as a JV with Sony resonates with me. The level of execution Calvin Harris. Gillespie hotfooted it up at that moment.” alongside his former business partner Music Entertainment. that you see in the US business is very Can about the transition from to Glasgow to meet him. Leaving the city Before we come on to the status Dean Wilson, has built Three Six Zero MBUSA recently sat down with Gillespie impressive – some of the festivals and the Calvin Harris the frontman to Calvin deeply impressed, Gillespie made a life- of Three Six Zero in 2019, it’s worth into a truly blockbuster player in the global over dinner in Los Angeles to map out live touring setups in particular. Harris the superstar DJ? Some people changing decision. “I pivoted,” he says. “I reiterating the enormity of Calvin Harris’s music industry. Three Six Zero’s recent history, and to learn You regularly come across people that are in the States might not know that he decided I didn’t want to be Calvin’s Based in Los Angeles, TSZ has what the British entrepreneur has up his prepared to push the envelope [in order] started out as a singer, very much in label – I wanted to be his manager.” one of the rosters in dance sleeve for the future… to be able to ensure that really great and front of the decks – before embracing his This was the beginning of what “The potential scale music globally – with Harris, Tiësto interesting things happen. kingmaking role as the architect behind would become globe-straddling and Disciples on its books, amongst You’re now flying solo as the head of an The potential scale in America is the scenes…. artist management powerhouse, in America is others. It also reps leading in independent Three Six Zero – having fascinating – the business here really thinks It’s one of the smartest decisions that he Three Six Zero. other genres like Louis Tomlinson, always had business partners since you about things on a global basis. I love made in his career – and it was all him. Via his role at Godskitchen, fascinating.” and Grammy Award- launched the company in 2007. What’s working in America. I’m really proud of He used the live touring circuit in the Gillespie had become friendly winning producer Noah Goldstein. that like? the fact that we’ve managed to handle our early stages of his career to help establish with influential UK DJ and broadcaster worldwide success. He has sold 12 million Gillespie has an excellent story about The idea of running this company solo business over here, and I’m really grateful his business and hone his identity. At that Pete Tong and, in mid-2006, Gillespie records globally to date, including his first foray into the United States with used to terrify me. But now it’s different: that we’ve been enabled to do that. moment in time [indie/dance crossover passed Tong a CD with a bunch of Harris’s 44 million singles, and has had 14 UK Three Six Zero: A major record label was I like the autonomy, and I like that you We all know that some people [from acts with ‘frontmen’] was what was music on it. Tong played his track, The No.1s. He has also amassed over 16 billion interested in hiring the British exec to can craft decisions that are entirely yours. international territories] come to the US happening in the UK, but he saw what was Girls, on his night show on BBC audio and video streams. run a dance music-focused subsidiary. He There isn’t any interruption in what you’re with an attitude that they’re going to tell coming and very intelligently saw that the Radio 1, and Gillespie’s phone began Originally signed by Mike Pickering at took the meetings, and the paid flights to doing. In some ways, it’s more difficult, but people what to do – to me, that suggests world was turning in a slightly different lighting up. Columbia in the UK, Harris is one of Sony’s New York, gladly – but while in town, he in other ways it’s more enjoyable. those people believe it’s somehow easy to direction. He also happened to write some “I made the decision, right then, to quit bestselling, and perennially prioritized, was also meeting with ’s Jay conduct business over here, and it’s really of the greatest records ever released at the my job and become a manager full time,” global artists. He’s worked with everyone Brown, with whom Gillespie and Three What are the best things about the music not. The flow of business and the way . That always helps.

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How good is Calvin? A lot of people ask me whether I’m involvement in the careers of talent. The His successes broadly speak for themselves. moving more towards film [at the expense most enjoyable part of that is the ability to I may seem biased but I think he’s the best of music] and I’m not. I work pretty much work with other managers, actually. writer/producer of his generation. every moment that my eyes are open, and As for why Sony, part of it is because [via I love him as an artist and a person. the film thing began as a hobby. I decided Calvin] I’ve spent eleven years getting to He’s ridiculously hard working, always has to do a few things that made us a bit more know everyone in that system; if I need to been, and he’s a huge a supporter of mine. of a [Hollywood] entity, and which showed ask a question of somebody in Mexico, I His drive has definitely helped pushed me that we have reasonably good taste. We’ve know who to pick the phone up to. I know along over the years. had a few successes now, and I think that all the label heads in all the major markets, all of the practical lessons that we learn and there’s some really great people there. Other than Jay Brown and Roc Nation, from the [film] business will be hugely Sony’s a really good company at the who else has been mentor figures in the beneficial to the music side of our business. moment with a great perspective. US for you? But, by no means, am I getting out of Rob Stringer. He’s really perceptive, and the music business. If anything, I’m more You’ve had some big characters as clients gave me some of the soundest advice in the focused on music than I ever have been for down the years, including , early stages of my career. He’s also helped my entire career; I think this is the most and Frank Ocean. One of guide me, on more than one occasion, exciting time that the music business has the most notorious moments involved through what can sometimes be quite a ever seen. Frank and the release of Blonde, where complicated and political business. he completed his album deal with Then there’s Michael Rapino – one of the Why? Universal with a video-LP, Endless, then smartest guys in the industry. He has a very There are fewer barriers. There is independently released what appeared to direct, knowledge-based approach, which I opportunity for all different types of music be his ‘real’ album within days. How did respect him for. [That approach] is that situation come about? why, above anything else, I think Frank is a private guy, and that’s he’s so tremendously successful. “The biggest threat to part of what makes him so great. On the subject of mentors, no- So if that story is ever to be told, he one comes close to my mum. She today’s music industry should be the one telling it. was an entrepreneur and raised three kids on her own. We didn’t is decentralized What do you think is going to be have a lot, but she managed to get the next major technological sea Natalie Portman in Vox Lux us into a place where we all had networks.” change in the music industry? enough. Redditch is a very ‘normal’ The business needs to find a new place; part of it’s really nice, part of it’s to be able to break through. Also, streaming format, in order to protect itself. The One other thing is that I think other I love seeing some of the new, young business and we’re building it around him. shitty, and the town center is ‘burger, fries is working, so there’s the revenue there, if biggest threat to the music business right streaming platforms, from outside music, managers from the UK having a go at He’s very direct, he’s honest, he truly loves and two black eyes’. It’s not South Central, distributed correctly, for the industry to now is decentralized networks. Thanks to will want to get into music. That’s going to moving out [to L.A] and getting stuck in. music, and he’s incredibly passionate about but it’s not Kensington either. She’s been develop and build big artists. Daniel [Ek] and Spotify, a new economy make things interesting but it’s potentially And obviously I’m really excited to see what he does. I’m seeing lots of great things an incredibly good example to me that Interesting things are happening in the has been created in the business from a threat as well – making sure that music what we can achieve with Will [Smith], happening in the UK, musically. The if you work really hard, you can achieve music business on a daily basis. Since the streaming, but decentralization is a is valued at the correct amount when that Miguel [Melendez] and the Westbrook British business seemed to get very locked important things. start of my career, I’ve been hugely into potential threat to that. happens. guys. I’ve known them for seven or eight off [outside the US] for about a year and a technology, and hugely into music, and I Decentralization [i.e. blockchain years, we all share a similar philosophy, half, but that seems to be changing now. Why have you got such a hunger to make feel like in time, I get to do technology] is something that was super What’s next for Three Six Zero? and they’re very smart and innovative motion pictures or audio/visual content? a bit of both every single day. buzzy for a year or two, and has gone away We’re in a place where we can largely do people. There is a real opportunity to What size do you want Three Six Zero to Partly because I think that the world that a bit, but I think it will swing back around what we want, which is interesting. Over work with them to grow our intellectual become as an independent company? we live in now requires the ability to work Why did you start a label with Sony? at great pace in the next five years, and the last eighteen months, I’ve spent a lot of property [portfolio] while expanding our I’m definitely not looking for mass across multiple disciplines. And partly Three Six Zero has always run labels could be potentially devastating for the time reconnecting with my British roots, entertainment management business. scale – I’m not trying to be the biggest because I love film, and always have. since the beginning of our business. [The entire entertainment content business. and I’ve come to the conclusion that, if anything . That’s one of the Film, TV, short-form digital content, company previously released albums from What happens after streaming is everything came to an end tomorrow, I’d What’s happening with Three Six Zero most important lessons I’ve learned in music and socials all used to be very the likes of in the US via a something that we need to focus on. The like to be seen as the guy who took some UK? Last we heard it was being closed my career so far; being the biggest is not separate, different disciplines. But over the JV deal with Warner Music Group and good news is that there are people within good British stuff to America and made it but now it’s back. necessarily being the best. past few years, with the massive growth label-managed , Rising and the major record companies and major successful. It would be impossible for us to be Continually re-assessing what success in streaming, they’ve all moved closer Fly Eye Records.] Running a label helps publishers that are a hell of a lot more I hope for us to do more of that, which champions of British talent and not have means to you – especially after you have together – and I think they’ll continue to define your level of taste as a company. It technologically savvy than they were when means spending a bit more time back in an office in London. Phil [Sales] is our prolonged success – is the most difficult bit together. also means you can have different levels of Napster hit. London, re-establishing the business there. head in London; we’re partners in the UK of running a business, but it’s essential. n

58 59 XXXXXXXXANALYSIS

THE MUSIC MARKETING TIPPING POINT Spotify and Apple Music’s biggest song globally last year was by – God’s Plan How are the tastes of the global recorded music audience going to change – and how will American music fare? MIDiA Research MD Mark Mulligan gives his view...

We are approaching a tipping point for streaming curation and music marketing. What was just a few isolated critiques is beginning to acquire momentum, with more and more people beginning to feel that streaming discovery is not delivering on its . There are two inter-related meta themes that are having most impact:

1. Discovery falling short 2. Curation losing touch

Discovery falling short Hearing new music is not shorthand for discovery. There is a big, big difference between hearing new music and actual music discovery. For all its decline, radio is still the No.1 way seven. These are the environments where human degree of ‘repeatability’ to listeners on YouTube, people discover new music. editorial and label influence play a major role. with audiences spending fewer times listening 57% of all US consumers state radio is the On YouTube though, a service where the prime to any single track than for other genres such as main way they discover music, followed by focus is using algorithms to follow human taste “On YouTube, Latin and Pop. YouTube on 37%, with streaming a very distant and behaviour, hip-hop is a much more minor hip-hop is a Even with all the caveats considered, there fourth on 23% – behind hearing music on TV, player, accounting for just 7% of the 139 music is clearly something going on here, with audio movies and games (25%). Even among US videos which boast one billion or more streams. more minor streaming at one end of the and music streamers, streaming is third on 43% Demographics and geography play influential YouTube at the other. Maybe the truth lies behind radio (59%) and YouTube (54%). This roles on YouTube, but not as much as the player than . points to a crucial distinction: hearing new on audio streaming services. The music does not intrinsically mean discovery. revenue) its soft power is far greater. labels have more influence on Spotify’s and on Spotify or A new music marketing rulebook is needed When it is stripped of context and repeated Spotify playlisting is often the central Apple Music’s programming and also focus Apple Music.” With such immense volumes of music being rotations, a new song is just three minutes out of “Having a component of an artist marketing , efforts on influencing their curated released, it is becoming increasingly difficult a cascading flow of background music. Having and success on Spotify playlists opens up avenues playlists, Spotify especially. Because hip-hop is for marketing campaigns to cut through the a playlist hit is often very different from having playlist hit is such as radio support and TV appearances. The the priority genre for the labels, Apple Music clutter. The signal-to-noise ratio has never been an actual hit. With the excessive volume and music industry too often sees the world through and Spotify – both as an indirect and direct so low. The last set of marketing discipline that velocity of new music, tracks struggle to break often very a Spotify lens. Little wonder, then, that A&R consequence – arguably end up with a stronger was created during the rise of social marketing through the clutter. Ironically, radio DJs are strategies pay close attention to what performs hip-hop skew. is not sufficient for this new phase of streaming needed more now than they ever were to help different from well on Spotify. And because Spotify’s curation YouTube, however, is less directly influenced behaviour and consumption. audiences fall in love with songs. Streaming is teams pay close attention to what labels are by labels and relies more heavily on algorithms, The will require sustained putting lots of new music in listeners’ ears, but having an prioritizing, we end up with a self-affirming rather than programming, to surface content experimentation and innovation, but there it is doing far less to drive genuine discovery. actual hit.” chamber. The risk is that the decisions for its users. YouTube’s genre mix thus more should be one overriding imperative: in being made by industry insiders may not always closely follows the tastes of its users, while Apple on-demand environments, audiences expect to Curation losing touch be well aligned with what audiences want. and Spotify’s more closely follow the priorities listen to what they want to listen to, not what Human curation adds fuel to the . Spotify US hip-hop’s meteoric rise hints at the of the labels and pervading taste trends among others decide they should listen to. curation in particular. While Spotify’s hard challenge. In 2018, Spotify’s three most streamed taste makers. In the radio era, audiences accepted that power is still comparatively small (it is still tracks globally were by North American hip-hop One additional factor at play may lack of control was inherent. On streaming only around a quarter of all US recorded music artists. For Apple Music it was the entire top be that hip-hop tracks do not have the same platforms, fandom must be sought, not bought.

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‘WOMEN ARE SOMETIMES EMBARRASSED TO BE AMBITIOUS. I’M CERTAINLY NOT’ When Michelle Jubelirer was growing up in Pennsylvania, she knew she loved music, and she knew she wanted to be somebody. Following a successful career as an artist lawyer, those factors have combined to make her one of Capitol Music Group’s highest-ranking execs...

his business is built on passion. portfolio of US labels, to remind you, I wanted to have an impact on that by I wholeheartedly believe that includes Capitol, , Motown, bringing true artist advocacy to the table. “Tif you’re not truly passionate Capitol Christian Music Group and Blue about music, you shouldn’t be in it.” Note, amongst others, plus services and Do you feel like you’ve achieved that? There’s no doubting Michelle Jubelirer’s distribution powerhouse Caroline.) Yes. We present the label’s view, but if we passion for artists. Probe her about Halsey, Jubelirer began her career as an M&A cannot convince an artist it’s the right way Migos, Fletcher, Paul McCartney, Lil Baby, attorney in New York before joining Sony forward, we will always go with their choice , Maggie Rogers, Vince Staples or a Music in 2003. Today, with an office on – always. I don’t think many companies, if bundle of other Capitol Music Group- the executive floor of the iconic Capitol any, could say the same. affiliated acts, and she’ll speak in remarkably Tower in Hollywood, there’s no doubting animated, passionate tones about each of that she’s made it to the top – literally. Yet, What’s the proudest moment of your them in kind. The same goes for Frank she says, there’s still plenty more she wants career so far? Ocean, Odd Future, Pharrell, Ke$ha, M.I.A to achieve on behalf of talented people... I’ll stick with the Capitol Music Group and others she represented earlier in her portion of my career, and three moments career as a partner at law firm King, Holmes, In 2013 you left a very successful career that particularly stand out to me. Paterno & Berliner, where she spent eight as an artist lawyer to join Capitol Music We were all so proud that in 2015 Capitol years before joining CMG in January 2013 Group. Why? swept the big five awards at the Grammys as Executive Vice President. with two artists, Sam Smith and Pennsylvania-raised Jubelirer Beck. That was incredibly gratifying stepped up to Chief Operating after a two year heavy lift. [Capitol Officer at Capitol in 2015, as a “I wanted to bring was resuscitated as a frontline label clear No.2 to the label group’s by Universal after it acquired EMI in Chairman & CEO, and the true artist advocacy to 2013. As such, Steve Barnett built his individual who hired her, Steve team, and they built CMG’s roster, Barnett. Yet to give the impression the table.” largely from scratch.] of a frictionless journey to the top Another proud moment of sorts is of the music industry would do that we’ve really shown a dedication Jubelirer’s ascent a disservice: as she explains I put a lot of thought into that decision. I to urban music, because Capitol wasn’t in in this interview, her life has thrown up the loved my clients; I was incredibly fortunate the game there [before]. Our incredible kind of obstacles, setbacks and misfortune to have such successful and forward- partnership with Quality Control, the we you wouldn’t wish on your worst enemy – thinking clients who really further solidified took on each other, that’s been very gratifying. and she’s come , flourishing my love for music. But when Steve [Barnett] And then the third moment was in (not least thanks to some very sound advice approached me with the opportunity, I New York City during Grammy week from her mother). realized that I’d love to have a bigger impact this year, watching Halsey host and be Although Jubelirer has concerns about on the industry as a whole, and that I could the musical guest on . the modern industry – and its audiences’ only do that within the belly of the beast, Embarrassingly, I teared up because I was propensity to remember single tracks over so to speak. so incredibly proud of her. She killed it. I the artists who make them – she is generally It was becoming clear that it was getting believe Halsey is poised to be one of the positive about music’s future, especially at harder for artists to break in a day and age very biggest pop stars in the world. She has CMG, which she believes is completely where there’s so much noise out there. I felt the vision, the ambition, and the talent. unique in the modern business for the that, in order to do that, there couldn’t be broadness of its tastes and the vastness the friction that had sometimes historically What’s been the biggest challenge of of its ability to promote artists. (CMG’s existed between labels and artists, and your career to date?

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It’s not unique to me; it’s the same business he was actually excited. He told me I could ‘They don’t pay you enough for how much challenge faced by anyone working in the do this, and that he was thrilled I was you work.’ On top of it all, she would music industry today. In the streaming starting a family and a new career all in one. purposely only work in schools that had world, it’s incredibly tough to break an It would also be remiss of me not to high poverty rates in order to make the artist as opposed to a song – and that’s a mention Lucian [Grainge], who has been biggest impact possible. challenge we live with day-in, day-out. our chief supporter, not only by acquiring My biggest challenge in this job [as EMI, which took real vision and guts, but Have you been able to make her life COO] is that I’m often the one who has to then allowing Steve and I to completely more comfortable? deliver tough news – that’s a tremendous reorganize Capitol Music Group. That My mother lives here [in Los Angeles] responsibility that I take seriously and couldn’t take place in a quick time period, and I see her all the time. She’s my best friend personally. And I always try and deal with and Lucian – with his team of Boyd [Muir], and of course I always offer, but somehow, it directly, honestly and from the heart. Michele [Anthony], Jeff [Harleston] and given what she did for a living, she has Will [Tanous] – have all been such major managed to save money and really take care What are your ambitions for Capitol pillars of support in enabling us to achieve of herself. She’s the most incredible person Music Group now as we stand today? our vision. I know. The lessons my mother taught me Over the last two years, we broke more from a young age have been invaluable. I artists than other label group, and last year What were like in school – what was your continue to learn from my tribe of women, we also grew more market share than any personality type? like Jody Gerson and Michele Anthony, of our competitors. We also believed in I was studious, very social and outspoken. and my contemporaries like Sara Newkirk independent distribution before it was en Those characteristics have not gone away. Simon – we all push each other, offer vogue, so it would be great to be the No.1 I knew from a relatively young age that I advice to one another and are there for each label group in the next few years. other. My sounding boards are not That seemed incredibly far away only women, of course; my partner in the beginning and now it feels Keith is certainly one, and I couldn’t like it’s in striking distance. While “My mother instilled even begin to quantify what I’ve retaining that ambition, we go to in me never to be learned from Steve. great lengths to continue to foster the careers of artists who will stand intimidated by What did your mother teach you? the test of time. She taught me so many lessons that I anybody.” live by every single day of my life. She What’s Steve Barnett like as a boss? taught me to always be authentically I was never a big athlete when I was yourself and to . a kid; I had an obnoxious tennis coach wanted to stand out and be heard. My sole Subtext: don’t be an asshole. once, but that was about it. But I saw other motivation for graduating at the top of my She also taught me, from a young age, people I knew being coached, and school class was so that I could speak to be impeccable with your word. She that helped them to really thrive. at the graduation ceremony; I wanted to taught me to under-promise and over- Steve was coached in his career and is tell everyone that they should not be deliver, which I tell people here on a daily now the coach to me and many others. We constrained by growing up in our small basis – I get upset when the opposite get into tremendous and spirited debates town of Altoona, Pennsylvania. That they happens. Perhaps because I was an only with each other. We agree 95% of the time, should pursue their dreams despite starting child, surrounded by adults, she also really and during the 5% of the time that we out . instilled in me to never be intimidated by disagree, I know that I’m being heard. Steve anybody. And that no matter how vaunted will occasionally change his mind based on What did your parents do? someone is, everyone’s fallible. She told me what I’ve said, and then other times he’ll My dad died when I was three – he was a to never say, no matter what stage I am in end the debate with, ‘I’m the boss!’ lawyer. And my mother was a speech and my career, ‘That’s not my job.’ She taught One story that really shows who Steve hearing therapist, but somewhat stopped me to do my best and to always be willing is happened about a year into my tenure working when she became pregnant with to roll up my sleeves and get the job done. here, when I found out I was pregnant. me. Once my dad died, she had to get My mom was once honored as Woman I was nervous to tell him because I was it together and support our family. She of the Year in Pennsylvania. That definitely dedicating my life to rebuilding Capitol, became the Head of Special Education, instilled in me that ambition isn’t something With Fletcher and Maggie and I knew this would change things in the and went on to become an elementary to be embarrassed about. I think, sadly, a lot Rogers at Billboard’s Women short term. I walked into Steve’s office to school principal. I used to watch my mom of women are sometimes embarrassed to be In Music ‘18 event tell him and his reaction was so gratifying: work crazy hours and always say to her, ambitious – I’m certainly not. Photo: Evan Agostini/Invision/AP

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to all of us for taking steps to ensure that level of diversity. That’s not the reality at most places. I think it’s going to take about ‘ major can navigate 10 more years to have true equality at the upper echelons of the major music business, all of these different genres’ whether that’s labels, publishing companies, agencies, any of those entities. Capitol Music Group is a very sizable entity, with multiple sub-labels. As the head of operations at the company, Michelle Jubelirer lives this What advice would you give your reality daily. Some would find it overwhelming but, she says, thanks to the younger self? company’s crack team, she thrives on it. The same advice my mom gave me when I She comments: “The vision that Lucian, Steve, and I developed for was a kid: to do my best, but to make sure Capitol Music Group was that it would be a multiplicity of labels that would I’m living on a daily basis. I’d also tell myself allow for extreme diversity of music, and for unprecedented flexibility not to be so hard on myself – but, being in signings. And that’s really come to fruition. Ashley Newton [CMG honest, I probably couldn’t live by that; I’m President] has been invaluable in plotting our course, as well.” abysmal at it. She points to a range of CMG artists like Halsey, Paul McCartney, , Migos, Sam Smith, Disclosure, , Illenium, Norah Jones, Are you making room in your life for Beck, Maggie Rogers, and as proof. more fun now? “Then, of course, there’s the resurgence of Motown, where Ethiopia Honestly? Balancing your professional Habtemariam has done such a great job, developing artists like BJ The Chicago Kid, Njomza and James Davis, as well as striking an incredible life and your personal life is a constant partnership with Quality Control. Plus Astralwerks, which has been struggle. I have a four and a half-year-old revitalized as a completely electronic-leaning label under the leadership of son and I constantly beat myself up about Toby Andrews [General Manager] and [EVP] Jeremy Vuernick. They did such whether I spend enough time with him. a great job with the Marshmello/Bastille single [Happier], with more to come You can’t have it all, not at the same time. from the likes of Illenium and Fisher.” With Katy Perry With Troye Sivan It’s a fallacy. You can only . My Jubelirer also points to Blue Note under respected producer-cum-exec partner, the father of my child, who was in Don Was, whose roster includes and Norah Jones, as well a band [Buckcherry] for 25 years, probably as Harvest, the in-house ‘indie’ label run by Jacqueline Saturn, which is What was your driving ambition in your I had the ultimate shield [against gender you think the motive is for that kind of gets the shortest end of the of now prepping new material from Banks, Donna Missal and Animals. early career? Was it money? discrimination]: a law degree. And in the abhorrent behavior? Surely someone’s anybody. We recently took a ski vacation Saturn is also President of CMG’s services and distribution company After my dad died, I watched my mom music industry, once you have that, you’re not getting a physical thrill out of that, together, with my best friend since fourth Caroline, which Jubelirer calls “an obvious standout”, and whose US market scramble to figure out how she was going given a level of automatic respect, deserved so what’s the benefit? grade, her husband and their four kids. share has doubled in the past year to 3.2%, thanks to successful releases to take care of us. So I knew that from an or otherwise. My degree has served as a It’s power, pure and simple. He’s showing That was amazing and freeing and allowed from the likes of XXXTentacion, Trippie Redd and NF. Fresh Caroline releases uncomfortably young age that I couldn’t bit of a protection mechanism to some me that he has . me to check out and relax. have come from the likes of Mac DeMarco, while new partnerships have rely on anyone to take care of me – that I of the mistreatment that other women go Sometimes I still think about it, and I’m been inked with SM Entertainment for K-pop boyband NCT 127. needed to find a job where I was going to through in the music business. in myself for not reporting If you had a magic wand to change Caroline partnered for NF with Capitol’s Nashville-based Capitol be able to take care of myself financially. That wasn’t always the case in my career him. But, although I never revealed what anything about the music business, what Christian Music Group, which has also built “an incredible business that As I got a little older, I also knew that I before I entered music, however. Before had been done to me, I used that incident would it be and why? leads its sector” with Hillsong United and many others, according to wanted to marry that up with something I joined Sony Music I was a mergers and in other ways to ensure I got to work on That the industry, and all of us in it, can Jubelirer, who praises the leadership of Peter York, Brad O’Donnell and Hudson Plachy. I was passionate about. I watched my acquisitions lawyer at a big, storied law the deals that I wanted to work on. It adapt to technological change quickly. Says Jubelirer. “We have the best team in the business, and it’s not just mother going through a lot of personal firm in New York. Early on in my career taught me, very quickly, that in order to Hopefully that’s evolving and we’ll be able the label heads: we have people like our dedicated CFO, Geoff Harris, to pivot as a business, when needed, faster struggle, obviously, but there was always there, I had my first annual review. And succeed as a woman, I was going to have to Mitra Darab and Robbie McIntosh who do a great job running our global music in the background. I saw how music I, someone who only ever wears black, work harder and smarter than anyone else. than we have in the past. marketing department, as well as our phenomenal head of publicity, was something that got you through the oddly had a white shirt on. This rainmaker I had a great experience the rest of my I’d also make sure that all women in this Ambrosia Healy, and Greg Marella, who is killing it at promotion. Brian tough times. , I didn’t partner, who was giving me my review, time at that firm, and only worked with business were helping each other, because Nolan leads our brand and sync team [seventeenfifty] with one innovative think I’d ever , but I knew this was took a bottle of water in his hand and the partners that I wanted to work with. when we don’t, it does us all a disservice. idea after another, and no deal gets done without the tremendous the direction I wanted to take. emptied it all down my shirt. Then he The other thing I’d change goes back to contributions of our head of Business Affairs, Martha Braithwaite. Amber looked at me and said, ‘Now we’re ready Are you optimistic for the progression the struggle of developing career artists today has recently joined our executive team and is already making a Have you faced any undue professional to start your review.’ I crossed my arms of women in senior professional roles in versus just breaking songs. My magic wand difference in our Streaming, Innovation and Content Creation areas.” barriers because you’re a woman? across my chest and I just said, ‘Let’s go.’ the music industry? would somehow convince every person out She adds: “There really is no other major label group today that can Women in this business ask me this Shocking, right? I am. We’re living in a rarefied world at there that they have to start paying attention navigate between all of those different genres so seamlessly and have this question a lot, which brings me a lot of Capitol Music Group where 50% of our to the whole artist. Though that would take a level of success within each of them.” pain because it shows there’s still a problem. Shocking, yes, and not cool. What do senior staff are women. That’s a testament pretty damn impressive magic wand. n

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help design the next wave of valuable tools for WHAT WILL A MUSIC COMPANY the creation process. Reservoir’s writers Whether in production, A&R, marketing, have been behind such as LOOK LIKE IN 2025? financial/reporting systems or data management, Havana by Camila investment in the best technology is vital to any Cabello (pictured) company’s growth and stability. The music industry is buoyant again – but faces tough challenges. Reservoir CEO Technology informs our business, but people still matter above all else. Ours is a relationship- Golnar Khosrowshahi on what music companies must do to thrive in the future... driven business, in which the quality of our network and people is paramount; and people won’t be replaced by AI. Machine learning On January 3, 2008, Forbes ran the headline, will make us more powerful, faster, and more “Music Industry Weathers Tough 2007.” We efficient, but it won’t substitute for our passion, had just launched Reservoir and joined the dedication, intuition, and . Technology is industry in holding a collective breath, while there to be harnessed and elevate our efficiencies. strategizing how to achieve a strong turnaround We have been privileged to assemble a stellar in a field that had witnessed massive upheaval team of individuals who touch on an array of due to technological change. disciplines and build an unparalleled roster and By certain metrics, compelling numbers catalog across genres, territories, eras and rights representative of longer-term, sustainable types. This, plus expanded offerings across growth in the music business have really only management services and master distribution, emerged in the last three years. Of course, most poises us to evolve from defining ourselves as a are bullish now, as streaming consumption music publisher to a music company. continues to grow exponentially. Spotify is Ultimately, it ensures that we are maximizing publicly traded, boasting over 207 million the current growth, and results in a windfall for subscribers globally and just the other month those we represent. In an era where consumption Apple Music reportedly overtook Spotify is at an all-time high, but the market for content in paid U.S. subscribers, with 28 million to is so saturated, we cannot afford to leave any Spotify’s 26 million. The headlines today sing money on the table for our creators. a different tune, as Wall Street analysts believe Moreover, advocacy in our industry has the music industry is on a ‘.’ historically resulted in significant wins for The question now becomes: how do we publishers, labels, and creators alike. harness this growth, make sure it’s sustainable, In January 2018, the Copyright Royalty and reap the rewards? Undeniably, rights- Board announced the biggest rate increase holders today are witnessing year-over-year for songwriters in US history, while earlier increases on revenue. Some predict this growth this year in Europe, Article 13 passed, further will last only a few years, while others forecast protecting against copyright infringement on it will sustain for the long-term due to factors online platforms, thanks to the impassioned including global penetration, accessibility of championing from rights-holders and their streaming platforms, smart speaker adoption, proponents. It is crucial to be on the front lines and wifi-enabled vehicles, for example. While At Reservoir, we’ve expanded our offerings of change and we take our responsibility to the but also sets the stage for a prosperous future, none amongst us are prophets, the certainty for to include artist management services and we industry very seriously through roles on the as more legislative action is passed to protect many publishers is that in order to capitalize “We continue continue to invest resources in building a master boards of trade organizations across the globe. “We’re set to creators and set monetization standards. on this growth, it makes sense to operate as a rights platform. Being a global company with a As there is a great deal of disparity globally Each day the needle is moved further; the bar holistic music company. to invest vested interest in different kinds of music rights about how rights-holders are compensated, evolve from set higher. There is no shortage of opportunities We have seen significant convergence resources in leads to wide-spread revenue capture in this education about the economic implications a music to chase or avenues to explore. throughout our industry in recent years; digital thriving climate and ultimately lets us do more of those rights to the creators and the wider By building robust, innovative, and global consumption has more closely aligned label and building a for our creators. industry is important. publisher to service offerings for our creators, we can help publisher business models, while ancillary rights There are also emerging market opportunities We advocate because we believe in upholding develop their careers and maximize their creative deals, technological advances, and a growing master rights that warrant further exploration, as previously the values of intellectual property and it will a music potential, and thus, our own businesses will willingness to equitably partner with artists and untapped regions are now regulated and always remain a core part of what we do. This undoubtedly continue to grow and thrive. I, writers, have all led to a more progressive and platform.” legitimized through digital adoption. work not only impacts how much of the current company.” for one, am excited to see what the headlines of innovative approach towards business. Developments in artificial intelligence can also growth we are able to capture for creators, tomorrow will read.

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‘OUR ARTISTS GENERALLY HAVE A LOT OF POWER, BECAUSE WE’VE NEVER WANTED TO RELY TOO MUCH ON ANY ONE PARTNER’

His clients includes everyone from to Jack White, the Dixie Chicks and Margo Price. Ian Montone explains how to quietly build a management empire...

an Montone doesn’t court publicity. Try Bearing Montone’s enmity to challenges the traditional paradigm. to research Monotone Inc, his super- the limelight, it’s probably wise we remind Is the current model great for music Isuccessful management company, you of his world-beating roster. in general? Frankly, my opinion changes online for proof: you’ll find barely any Monotone Inc, with two offices in Los weekly. On one hand, of course it’s great, artist information and scant contact Angeles, plus another in New York and as there’s more exposure; anyone with the details. That’s deliberate on his part. It goes a rep in London, looks after the careers right guidance can find anything, and without saying that this interview took of Jack White, Vampire Weekend, The catalogs now live forever. On the other some persuading. Dixie Chicks, LCD Soundsystem, The hand, I feel we – as a business – have It also goes without saying, therefore, that Raconteurs, Margo Price, The Shins, given so much power to a handful of Ian Montone does not have an Instagram , , Broken Bells, companies and their respective algorithms. account. Yet a couple of months ago, we Pete Yorn, Cold War Kids, and Danger Songwriters need to be treated fairly. noticed his face pop up on the social site Mouse, among others. Its emerging artist Streaming is becoming the new and in a chummy embrace with a pair of fellow roster, meanwhile, includes the likes of sole metric of ‘success’ amongst certain power players – Justin/Ariana manager Amber Mark, Love Manseuy, Priests, partners, which with. There’s Scooter Braun and Marshmello maven Wallows, Lillie Mae, Empress Of, and fully more information that everyone is trying Moe Shalizi. What does Montone make independent artist, Still Woozy. to collate, study and understand, almost in of this of managers, real time. What does it all mean? I’m who sometimes count millions of not sure. It may all be noise. I think their own followers online? “The notion of whether the notion of whether something is “Those two are my friends, and great, culturally important, or simply they’re excellent managers and something moves you moves you, is being discounted. entrepreneurs – their success speaks for itself,” he says. “I talk to Scooter is being discounted.” What will the future look like? all the time, trading ideas. In essence, I look at the Netflixes, Amazons and our job is the same – find great artists or MBUSA sits down with Montone – as relates to TV and film, a world ideas, be a bulldozer for them, and build who grew up in Portland, Oregon and I also live in [Montone co-manages Jamie businesses around them. But these days, was a partner at the music law firm Davis, Foxx and – as well as the Dixie everyone is also constantly brand building. Shapiro, Lewit, et al before focusing on Chicks and Pete Yorn – via his partnership It’s kind of amazing and I respect it, but management – over a drink at Soho House with Rick Yorn at LBI Entertainment], that’s . I’m into a totally different Malibu. We ask about his life, his career, and I expect to see the [music] streaming type of brand building, I guess.” and the state of the modern business... services continue to push for their own He’s right. Montone’s music industry original content, supplanting the ‘majors’ ‘brand’ is a little less loud, and a How is streaming treating your roster? and the role they’ve traditionally played. classic: he’s a behind-the-scenes operator, Streaming is great for the music Conversely, I wouldn’t be surprised to and a proud straight shooter, who gets business, there’s about that. see the majors take their music down from results away from the camera’s lens. When The money in streaming is growing by those streaming services at some point, and we ask him what the brightest moment of the week, and the hope is that funnels back create their own services, where they can his career is so far, he replies: “Running an to the artists. Also, the entrance barriers really focus and market their own roster independent company, curating the roster with respect to distribution are so much and catalog, as well as distribute revenues we have, and working with some of the lower now – anyone can release music and differently to their artists. Look at what most creative and visionary artists in the get it to your computer or phone. That’s Disney is about to do with Netflix – it’s music industry.” fantastic as it evens the playing field and a similar approach. I currently subscribe

XX 71 to Netflix, Amazon, HBO, Apple TV, etc. move on.’ I like it when people react to When you have a whole team of I think people would do the same with that situation by rolling up their sleeves up, passionate people – who love music and music. Sure, that will cost the consumer digging in, and remembering why we’re all understand your artist – pointed in one more, but in the long run it will give here in the first place. direction, that critical mass with the the music fan a different and better, less metaphorical ‘boots ’, it’s monoculture experience. You’re talking about people becoming incredibly powerful and you can get a lot Regarding streaming as it stands, I artist advocates, changing opinions. done. Can you do it without that? Sure, question: should all music be available Yes, let’s go make people believe! That’s but it takes work, a structure, financing for $9.99 a month? That’s a great deal. Is exciting to me, and I’ve seen it a hundred and, perhaps , time. it sustainable in the long run? Probably times. I remember with , We’ve deliberately built a company with not. Does it devalue music insofar as with the song , one of that structure, with our own radio and how we educate consumers about our label partners didn’t think that was a DSP teams, touring, licensing, production, streaming – this “one price gets all” buffet single, certainly not the first single. Same etc. – and it’s a lot to take on. But all of that consumption concept? Probably so. held true for MIA’s Paper Planes, when structure doesn’t supplant the importance Have we blindly embraced we looked after her. Now when those of people who are passionate about your that ownership is irrelevant simply artist. And to that extent, labels can out of fear of piracy? Probably yes. be great partners. The most important question: “One of our jobs streaming causing all music There’s a theory that independent consumption to grow exponentially making people believe in labels are getting squeezed in – benefiting everyone in the long this new world: companies like run? Likely yes – I believe so. But our artists, no matter yours can invest in artists – often there are lots of tweaks to be made how long it takes.” working alongside the likes of as these paradigms shift. AWAL or EMPIRE etc. – and then at the other end of the Would you like to see the services more tipping points did happen, our partners market there’s the big global majors. actively support ? were amazing. Those two songs became Certainly, the business is always changing It’s interesting. The answer is obviously yes, worldwide hits, and neither was supported and evolving. But I could make the but to my earlier point, the services will by traditional data. One of our main jobs argument that independent labels are support and promote what streams best, is making others believe in what our artists now more important than ever. The indie and certain genres – at least at this point in believe – no matter how long it may take. labels will always be important when it time – stream more than others. So it’s not That’s the task for us currently with comes to finding great artists and having necessarily a ‘support’ issue. Vampire Weekend. Ezra has an incredible a point of view. Especially in this day and Without getting into existential creative vision and he’s extremely age where everything is accessible and questions regarding genres, a debate I’m intelligent. He’s also very thoughtful with everything is available, we really need the bored with, with certain artists – be it in his music and how he wants it presented. tastemakers, the curators – people who can alternative, hip-hop or elsewhere – you He just delivered a masterpiece with Father make others believe in what you believe in. have to commit to the entire body of Of The Bride. The album is very deep Caius [Pawson] at Young Turks is great at work; song might make you lyrically and musically, it’s eclectic, but at that, Richard Russell obviously, everything understand the third song, which might the same time – to me – very conceptual, stands for, certainly make you understand the fourth song. with an overarching theme and narrative. Top Dawg on a different scale, , One thing I find frustrating is that Point is, it’s not a cookie-cutter body of – I could go on and on. streaming services, as well as much of the work and doesn’t fit into any one space. They are all very artist-centric companies. music business, rely so much on algorithms Our job is to make people understand why I feel the best ‘majors’ have taken a similar to tell us what to consume. The focus this music is important and is something approach, be that Columbia, Interscope or sometimes seems to be finding ‘music for they should pay attention to. elsewhere. Obviously, I feel a real kinship algorithms’ versus great songs and great with independent labels – we all come artists. The reality is, that’s not why I got What’s the value of a record label in from the same place. But the barriers to in this business. I’ve been in label meetings 2019? You’ve got an independent artist entry in the market are so low now that when they’ve literally said, ‘, the song’s in Still Woozy doing very well. management companies with resources not working.’ The song’s been out literally Labels are certainly valuable. I’m all for are releasing records. And you’re seeing a day – what are you talking about? ‘Nope, working with great partners, be that a independent labels managing artists as well. we’ve read the numbers – we’re going to traditional record label or what have you. I think you will see more and more of that. Amber Mark

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Ezra Koenig of Vampire Weekend Margo Price James Murphy Photo: Monika Mogi Photo: Danielle Holbert

The last No.1 single in America that was Vermont Law School and then worked these comments – can you tell me what saw me and said, ‘Don’t you work in the since sadly passed, because [Jack] had been – I think they were playing the Mercury written solely by the artist performing it in Washington DC, at a large consulting cross-collateralization means?’ I had no mail room?’ And I said, ‘I’m actually an signed to a record label and they weren’t Lounge – and I was a bit nervous and said, was Pharrell Williams’ Happy – five years firm company specializing in foreign clue. I’d go to the Georgetown Law Library, attorney.’ He invited me to come sit in his being paid royalties. Craig gave my number ‘So, I want to propose something. I’d like to ago. Do you have a view on co-writing? aid and international development. My dust off whatever music or copyright books office, study the deals they were making, to Jack, I met with him and we had a lot be your manager.’ I was prepared to give a So many of my clients singularly write younger brother Paul worked at a record I could find, look things up and then call and was a great mentor. in : we both grew up in Catholic whole speech, and they simply said, ‘Okay, – often my challenge is the opposite, label called Tim/Kerr Records, in Portland, them back. Long story short, eventually, Thereafter, I met Fred Davis, who was families, we had both been altar , and sounds good.’ And that was it. I think we actually. It’s me saying: ‘Hey, have you Oregon, where I grew up. They had the a light went on in my head, like, ‘Wait – building a law firm. I became a partner [at I became their attorney. Musically they ordered food and talked about something thought about working with this you can be a lawyer in the music what is now Davis, Shapiro, Lewit, et al] were spellbinding; live, they were in a class else. They became my first client. person?’ So I often come from a business?’ At that point in my life, during the mid-’90s, and the firm became of their own. What they were doing was different perspective, where the idea “Relationships last I was completely broke with student one of the largest in the world, focusing so different. Jack has such a strong vision, Why, when you were a successful lawyer, of teaming the right writers feels loans looming . But primarily on music law and entertainment. and although genius is an overused word did you want to become a manager? interesting and creatively exciting. longer than any deal. the notion that I had nothing to lose Fred gave me a lot of guidance as well as these days, in Jack’s case, it’s wholly and I loved my time lawyering and have huge That said, I do find the extremes really was liberating. freedom; he ran a tight business and was a completely accurate. About six months respect for those who do it. It’s great training of this – the pop factories and writer to your word.” It’s very clichéd, but I decided to very good problem solver. into the relationship, I knew I wanted to for the music business, understanding camps – to be a bit boring and simply follow a dream: I moved to Coming up, I was to have do more than just practice law and wanted all the moving parts, because you get to formulaic. However, that process Los Angeles two weeks later, looked good mentors and/or people willing to to switch to management. I decided to ask see everything – when things work and works for some so I can’t be too critical. I Dandy Warhols, Everclear, Poison Idea for any job I could in the music business and be patient with me – too many to name. Jack and Meg if I could be their manager. when things don’t. That said, lawyering is just know what I like musically. Generally and released interesting collaborations started my own music law practice, which Now, to do the same in return. I also about risk aversion, so you’re always speaking, I agree with something Jack with Kurt Cobain, Gus Van Sant and was incredibly unsuccessful. I worked at make it a point to lecture at the same How did that conversation go? searching for that one thing out of a hundred White said early on: Great music usually William Burroughs. It was very indie, very ’s American Recordings as an UCLA class I once took. It’s funny, I was moving house a while ago that could go wrong. I felt that process was isn’t a democracy. cool and very genuine. Because I was a assistant to Marc Geiger’s [now head of and I found this notebook in which I had starting to dull my entrepreneurial brain. lawyer, my brother or his colleagues would music at WME] assistant, as well as in their From there, how did you end up as the written out all of the reasons it made sense Artist management, to me, is about finding How did you get your start in music? occasionally send me contracts marked up mail room. One day, I was auditing a class White Stripes manager? for me to manage Jack and Meg – it had that one thing out of a hundred that could I studied philosophy at Occidental by opposing lawyers, asking questions: ‘We at UCLA about music business contracts I met Jack and Meg in 2001. I had gotten a diagrams, arrows, numbers and everything work, and figuring out how you’re going to College and environmental law at want to sign this band, their lawyer made and Marc Geiger was the guest lecturer. He phone call from Craig Aaronson, who has explained. So I sat with them in New York give it the best possible chance.

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Still Woozy Photo: Shawheen Kayani

Where did your personal passion for done but, by the same token, it gives you I’m concerned many tech companies simply music come from? valuable and important perspective. I was see music as adjacent ‘content’, a thing that My mom knew a guy named Frank looking back at an old photo the other helps sell something else – be it advertising, Zappa growing up in Chicago. This wasn’t day: I’m with the White Stripes in Brazil, or what have you. Music is fundamentally the , but because of that in a canoe in the middle of the Amazon – important to culture, to people, how we coincidence, her sister was at a record and I’m sat with my head down, looking communicate and understand each other. shop in the ‘70s and saw the Mothers of at my old school Blackberry. It’s frankly It’s not disposable – nor are the artists who Invention album, We’re Only In It For The a depressing image. Also, don’t be afraid create it. Money. She sent it to my mom. So we had to delegate; I have a great team of people this album in the house that had a really around me. Other things I’ve learned: Why are you so averse to self-publicity interesting , experimental relationships last longer than any deal, be and social media? compositions about politics and satire true to your word, protect your reputation. I’m not totally adverse or we wouldn’t be that I couldn’t really grasp as a nine-year- sitting here! I appreciate social media’s old. We’d listen to it over and over, along Have you ever felt professionally value – I have teams of staff focused on with , and various albums. betrayed by the music business? it. It’s flattened publicity, advertising and From then on, I always liked imaginative Betrayal is strong word. This is a funny promotion in this business, without a ‘outsider’ music that was different to the business and full of characters. What’s doubt. But as it relates to me personally, no music listened to by my classmates. My that alleged Hunter S. Thompson quote? – it’s not my thing. With the immediacy brothers and and breathed music. “The music business is a cruel and shallow and accessibility of all information these I remember bringing a and money trench...” If you do this for any days, mystique is becoming a bit of a live album to Show and Tell spell, you run into your opportunists and precious commodity. I push that concept Xxx when I was in fifth grade. It really confused those challenged by the truth, but you on my clients so – at least as far as it relates the nuns at St. Pius X grade school. keep a mental record of those people and to me being in the public eye – I attempt to work around them. I certainly do. live it as well. Plus you have to keep feeding What advice would you give your that [social media] beast; it’s insatiable. younger self? If you could change anything about the I’d rather spend time with my family, Jack White Make time to not work. Be in the present. music business, what would it be? friends, and dog. Every one of them is way Photo: David James Swanson Unplug when you can. All easier said than That music has value and intrinsic worth. more interesting than me anyway. n

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THE REVOLUTION IS NOW Kobalt is challenging the traditional industry on multiple fronts – including records, publishing and worldwide royalty collection. And its CEO, Willard Ahdritz, believes music is worth much more than some people suggest...

illard Ahdritz is repeating himself. Not, we’re thankful to report, within the confines of this W interview – as you’ll read, the Kobalt founder has plenty of interesting/controversial things to say without ever resorting to reiteration. But for two decades now, Swedish-born, New York-based Ahdritz has been banging the table for the same vision – and the same values – of a tech-embracing music business that is happy to share the majority of its wealth with artists and songwriters. So when Ahdritz starts telling MBUSA about the industry’s deep need for a “centralized global technology platform across multiple rights”, we have to stop and ask him: Willard, haven’t we heard you use that exact phrase before? His answer is, proudly, affirmative: in fact, these words echo the pitch he presented to Kobalt’s initial investor, SPARK, 19 years ago. , as he does today, Ahdritz passionately believed that, in order for the music industry to reach its global potential, it needed to jettison the endemic monetary wastage in its worldwide setup – something, he hypothesized, which could be delivered by a tech-based service company that also enabled creators to retain their copyrights. And Ahdritz has long argued that such a company, (i.e. Kobalt), could be successfully built on far thinner margins that the music biz’s long-established “fat cats” (i.e. the major music rightsholders). Ahdritz’s unwavering confidence in Kobalt’s model has been largely driven by two factors, for which he has remained a vocal evangelist: (i) the explosion in access to smartphone ownership

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and telco coverage worldwide; (ii) the ‘switching on’ of billions Omar Apollo, AWAL offers label-esque distribution, marketing of music consumers thanks to ad-supported streaming ‘funnels’. and promotional services, but demands no ownership of an At the close of last year, Ahdritz tells us with a grin, there were an act’s copyrights in return. This year saw a major milestone reached estimated 1.5 billion users of ad-supported music services globally, at AWAL, when singer/songwriter/producer Lauv saw his AWAL- alongside 250m users of paid streaming accounts – out of around managed catalog top 2 billion streams across just Apple and 4 billion global smartphone users in total. By 2025, says Ahdritz, Spotify in Q1 – the kind of eye-popping number which usually Kobalt expects there will be over 3 billion monetized digital music gets major label bosses salivating. consumers, with over 750m paying subscription customers and For Ahdritz, this achievement offers simple proof that, when 2.5bn users of ad-supported tiers. needed, AWAL can fight toe-to-toe with the US market’s biggest “When we started, there were a few people in the business labels, and even challenge the dominance of major record who told me I was an idiot, or that we were going to destroy companies at radio. (AWAL acquired respected NYC-based the publishing industry,” says Ahdritz, in a nod towards Kobalt’s promo company In2une last year, which has worked with the smaller-margins-in-a-larger-market game plan. “Some of those likes of and Lindsey Stirling, among others.) AWAL’s same people now tell me they see what we saw: billions of monetized certainly impressed , which signed a global fans, consuming music digitally, completely transforming what services deal with Kobalt earlier this year, leaving behind its prior the music industry is, and what artists need from it.” agreement with Universal Music Group. Back before Ahdritz pitched to SPARK, Kobalt wasn’t even The biggest growth area for AWAL in the years ahead involves a Kobalt; it had a prototype name of NCM – Net Copyright community whom Ahdritz says have been sorely under-served by Management. From there, it acquired a publishing catalog from the major labels: the ‘middle tier’ of artists looking to earn a decent Diesel Music, home of Eagle Eye Cherry, in order to prove its revenue stream from their music recordings. According to Kobalt’s concept, in summer 2000. The estimates, there were over 20,000 company then publicly launched Anglo/American artists worldwide under that now-famous red ‘K’ “People in the in 2018 who generated tens to logo, in January 2001. hundreds of thousands of Kobalt, the “centralized global music industry told me in label value from their recorded technology platform” Ahdritz music catalogs. Kobalt projects envisioned nearly 20 years ago, I was an idiot... Now this number will more than treble in continues to become an increasingly they see what I saw.” five to 10 years. powerful player in the music This ‘middle tier’, says Ahdritz, industry. That’s not just in the world will become AWAL’s key “sweet of publishing – where its disruptive, tech-driven presence was first spot”, as the company “drives an economic revolution” for these felt – but also in recorded music (via AWAL), plus neighboring artists, via a service-driven business model that lets acts keep their rights (via KNR) and royalty collection (via AMRA). recording rights and more of their royalties. Kobalt’s success in publishing needs little explanation: for the Here, Ahdritz explains more – while mapping out the recent past four quarters, the firm was either the second or third biggest history, and future potential, of Kobalt’s business... hit publisher in the US, claiming an average 17.6% share of top 100 radio tracks over the past year, according to Billboard. Kobalt You’ve often said in the past that streaming would eventually Music Publishing manages over 700,000 songs for clients like bring digital music to billions of people worldwide, on Sir Paul McCartney, and Childish Gambino, with monetized platforms. It we’re there now. revenues on course for around $400m in its current financial year, For years, many people told me I was here to kill the publishing which ends at the close of June. industry. I hear that less and less today. All of the things I believed Also notable is the fact that Kobalt’s publishing admin service and said when we started Kobalt are now happening. has become the partner of choice for the music industry’s ‘new Kobalt is an enabler for both creators and the DSPs. We are money’: the likes of Round Hill Music, Spirit Music Group and creating a win-win-win for everybody. The music industry is ’s have each raised hundreds of growing, and Kobalt is outperforming the music business. millions of dollars of third-party capital, and have been responsible for some huge acquisitions in recent years. All of them now trust Your overall revenues were up 25.3% in your last financial their catalogs to Kobalt. year, to end of June 2018, reaching $402m. Gross collections Perhaps the most-talked about element of Kobalt right now, reached $494m. Yet people still like to point at your losses; you however, is AWAL – its recorded music operation, which is had an EBITDA loss of $15m last FY. expected to turn over close to $100m in the firm’s current FY. You have to understand that Kobalt is many businesses. Our Kobalt Music Publishing Working with acts including Rex Orange County, Little Simz, publishing business, which is our largest and the one we have client Sir Paul McCartney R3hab, , Nick Cave & The Bad Seeds, and been involved the longest, is profitable today, and it will get

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Taylor Swift at Universal, which ultimately gives her long-term control of her own copyrights? Xxxxxx It is absolutely clear that we have become an influence in those stories: ‘Is [that superstar] going to sign with [Kobalt] or not?’ But the biggest win, I think, is this whole new generation, who will never get stuck in that major label system to begin with. It’s already happened in publishing, and now it’s happening in records. We’ve cracked radio with our In2une acquisition, and we have multiple Top 40 radio songs [in the US], so the economics for artists with AWAL are amazing. that within three years there will be a full restructuring of [the major music companies]. It will be very difficult for anyone in this market to justify a $2bn to $5bn annual cost structure.

Tell us more about the so-called ‘middle tier’ of artists, and the ‘bigger artist ecosystem’ which AWAL wants to build? A whole segment of artists are struggling to live with the ‘Hunger Games’ model; there is no money coming out of that system for them. We’re going to create a situation where 100,000 artists exist in the future and earn significant money from their recorded music each year. We were designed for this. We don’t have the heavy, legacy cost structure of the [major] companies. We are here to drive an economic revolution for artists. This is a very exciting opportunity. Still now, some major labels drop you from US radio after [promoting for] eight weeks, maybe Little Simz nine if you’re lucky. Then no-one around the world [in the same Tom Misch major company] will want to touch you if you have ‘flopped’ in a proven territory – you are damaged goods. That’s a highly more profitable as it continues to grow and scale. We are also the Our [competitors] used to say Kobalt’s business didn’t make dangerous position to put yourself in. estimate [YouTube] as a $150bn business. is a $500bn world’s largest neighboring rights agent following our acquisition sense. Then that didn’t work, so they started saying we weren’t It took 12 weeks at US radio before Lauv was biting and we company, and we know that music is very important in driving its of Fintage House, and that business also generates positive creative. Then that didn’t work, so they said we’d be bankrupt one were able to accelerate [that popularity]. We ended up working social media activity. Amazon is $900bn company and they also contribution. All of our businesses have attractive economics and day. And now they see us sailing away! this for 50+ weeks on US radio. And we understand that it’s a very have a commitment to music. will be profitable once they reach scale. All of those comments are driven by fear; fear of the new way global world: we recently processed data from China for the first If you start thinking about the value which music drives for these To do that, requires major investment in building the leading forward. I just care about the facts, and the facts are: we are time, a unique global event. We could do that because NetEase types of companies, it’s huge. So my belief is music is undervalued. centralized global technology platform to best service a fast- building the new music business, and we are going to deliver a [Kobalt’s partner in China] gives us data where other major players growing digital music industry. That’s what I think most outsiders bigger artist ecosystem for everyone. out there do not. We demand more than just a check from China; You’re talking about what happens when you remove the music: miss when they just look at the numbers. we need data, so we know who to pay. what are these big properties worth when you take it away? We’re focused on innovating and building for the future. For Why are you so confident that AWAL deserves the investment? NetEase has more than 450 million users, and 30% of what they 85% of all people in the world consider music as essential or very example, in our tech and product development, we’re building What is marking that company out in the marketplace? play is international music. That’s an interesting sign of what will important. And 70% of internet users around the world access out our infrastructure to support the growth of AWAL. This The major labels are still run on the system of the ‘Hunger Games’: happen in China; driven by the younger generation, international licensed music, according to the IFPI. investment costs money, and that is what is reflected in those 19 in every 20 artists that signs does not succeed in their system. music will become bigger than it is today. Amazon Music and Echo speakers are great examples of how financial results. And those [FY 2018] numbers are almost a More and more, artists are saying no to big advance checks from important music is to a major tech company. They help drive a year old. We are forecasting over $600m [in annual revenues] in the majors and seeing real success – that’s a shift. Look at the Lauv We’re hearing a lot of huge numbers attached to Universal new product category and/or enrich their customer’s experience. our end of June ‘19 FY. We are already a much bigger company story. AWAL is also proving that releasing music globally from day Music Group right now, which is potentially up for sale – or, at Music is such an important driver at these major technology today, and continuing to grow at multiples of the industry. You one is much better than a territory-by-territory approach. least, half of it is. What’s your reaction to that? companies – and all of them understand its importance. can’t drive looking in the rear view mirror! Maybe the worst thing about the ‘Hunger Games’ is that artists Since day one of Kobalt I’ve said that music is significantly under- , streaming is [fuelling] an amazing shift in revenue lose control of their career. We are here to maximise our [clients’] valued. I still believe that we are thinking of it in the wrong way. Would you have cause to worry if a giant corporation like some distribution, creating a large new market segment of artists not cashflow, not to take all of their rights and most of their money. In You can buy the music [rights] industry today for around of those you mention bought Universal? being served by the major labels. With the platform and services my opinion, it is more likely than not that a major label deal will $100bn, maybe a bit higher with Universal’s recent valuations. Yes, I think so. It sets off potentially a chain reaction – if one buys, we’ve built out already, we are set up beautifully to help them. And be the kiss of death for most artists. But let’s think about the amount of value music drives elsewhere. what do the rest do? It’s like ! we’re eager to support more artists. That’s why we are now raising People say up to that 20% of Apple’s market cap is driven by But even if that battlefield happens, I know that Kobalt will another investment round and that money will help us in growing Not every major label deal is the same, though. Do you take music. And that is an $850bn company, judging by its market cap. taking care of the new music industry – and that’s a very AWAL and our other businesses. any pride or pleasure in deals like that recently signed by Over 35% of YouTube streams are driven by music, and some different ball game. n

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‘THE ORCHARD IS A TOTALLY UNIQUE PROPOSITION IN THE BUSINESS NOW’

New York-based Colleen Theis is a key management figure at The Orchard – the Sony- owned distribution and services company working with BTS, and more...

ver the last decade, The Orchard reported of $200m for the final Orchard include Ozuna, Ballerini, has evolved from a left-field 50% – the distribution/services company’s Jorja Smith, T-Pain, BTS, and Oproposition for artists who often EBITDA has nearly doubled, as revealed Flipp Dinero. didn’t get much further than the bedroom, last year by Sony Music boss Rob Stringer. Theis started her career in New York, into a key player in a growing independent That’s partly thanks to rapid international where a job programming events for the market now moving from the fringes into growth, accelerated by a run of recent New York Public Library System led to the mainstream. deals that have included the buyout an introduction to someone at Elektra, Chief Operating Officer Colleen Theis of Germany’s finetunes and Norway’s who was looking for a Spanish-speaking joined The Orchard back in 2011, and has Phonofile in 2017, and a merger with Red assistant. Thanks to a year studying abroad overseen its growth from 25 to 43 offices Essential (incorporating Essential Music & in Madrid, Theis fitted the bill. She took a worldwide over the last five years, as well Marketing) in the same year. pay cut to start at the bottom of the music as its transformation into a fully owned Thanks to a myriad of deals business – an industry she’d long been subsidiary of Sony. with independent labels and artists trying to get into – aged 28. In the three years following Sony’s worldwide, mainstream success stories The role gave her an education on how acquisition in 2015 – which came with a to have released music through The the industry worked, and she joined at an

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exciting time: Elektra’s then-CEO, Sylvia like, ‘How is this possible?’ The business artist who hasn’t signed a major deal but Epic, or whatever label it might be. It’s Rhone, was taking the label from being a was thriving. I was like okay, I came to the is still building a great profile. works really great here and, honestly, what rock-centric institution to having success right place, and every year has been like There is still very much a place for the [Sony] has is totally unique. with urban and hip-hop acts like Missy that. The industry is evolving so fast and major machine and the labels, particularly Elliott and . The Orchard has been right at the front of with the A&R and the creative focus, Thanks to a few high profile success After two years at Elektra, Theis left it – and now we are in the .” which is a part that most label/artist stories, there appears to be a rise in to join independent label Here, we chat to New York-based Theis services companies don’t offer. artists having success independently, in Philadelphia where she had more about the growing closeness of the DIY In 99% of cases, an artist chooses this and signing deals with distributors over freedom to get involved in every stage of and major music business, her ambitions route because they want to control their major labels. Is that what you see from an artist project. for The Orchard and what’s most exciting own product. Jorja is a good example: she where you’re sitting? Shortly after she relocated, Rykodisc was about the evolution of the industry... came to us with a finished record and she [That’s] happening with different levels acquired by founder Chris wanted to put that record out and have the of success, and in certain genres it’s more Blackwell to provide music marketing How has Sony’s involvement and time and space for it to develop at the pace prevalent than others. For example, Latin and distribution expertise for his new subsequent acquisition had an impact she was happy with. and hip-hop artists have really figured out venture, media company . on what you do at The Orchard? It was a very sustained, grassroots and how to engage in an authentic way with Consequently, Theis was on We always had resources because we were direct-to-fan approach that she wanted their audience and drive that audience in again, this time heading to London where doing good before, but now we’ve got the to take. If she’d come out in the previous a manner that maybe some of the other she was tasked with working on physical support of one of the largest entertainment decade, yes, her only option would have genres haven’t navigated as well. distribution deals across Europe. However, companies in the world, so we are able to been to go to a major label. And then But for every Chance there the new partnership was short-lived, and scale at the rate that we need to, in order to maybe they would have put out a single, are hundreds of other artists that would mere months after moving to London, be able to fulfil the vision that we have to it wouldn’t have [hit their short-term be better served having a [more traditional Rykodisc and Palm parted ways. best serve our labels and artists. commercial targets], and she’d have had label] deal. Because [staying independent] Theis decided to stay with to figure that situation out. So she’s is not easy; the thing about distribution Rykodisc where she ultimately “From where The come into the industry at a super and label services is that it’s a partnership, remained for 11 years, overseeing exciting time because she can control so the artist and that team they bring are international marketing from the Orchard is sitting, we her own pace. Sony have collaborated responsible for their piece of the puzzle. If UK, and working with releases from with us in various markets to do they don’t deliver, or if they get bored with Josh Rouse, Morphine, Steve Earle, see a lot more growth radio promo or marketing for her, the mundane part of [a campaign], then it Spanish Harlem Orchestra and the and Jorja is a great example of a case doesn’t happen. Frank Zappa catalogue. in the industry.” where ultimately, at some point, she We are pretty choosy here about the When Rykodisc was acquired by could grow into an artist that would artists we take on for that reason – you Warner in 2006, Theis spent four years The Orchard is a totally unique be a [fully-fledged] Sony artist. The unique need to have a professional team that Jorja Smith launching ADA’s international arm as SVP proposition in the business now. There is thing about Sony and The Orchard is we understands the process. of ADA Global. That was a challenge – the that can offer our end-to-end are all part of SME, so what’s working for music business was contracting and the solution; whether the ‘end’ is you just want us works for them too. How do you see the wider ‘traditional’ delivering files and retrieving analytical Alexa or any other voice-enabled service needs of independent labels were changing. to deliver some tracks out to the world and music industry evolving in future? data on an hourly basis. That’s never going to play something for you. You want to So, after a while, Theis shifted, and joined see if anyone bites, or if it’s at the top end, So the setup is an example of how major What’s ‘traditional’ anymore? I think The to change, but people are doing different be discovered and it’s very difficult at the The Orchard. having the global support of a company labels are adapting to artists wanting Orchard is a traditional music company types of regarding how they moment to find what you’re looking for. “At that time, The Orchard was pretty like Sony to come in and move the levers more control… now, although of course a lot of people get their music out, so it’s about being able In the next couple of years, voice is going far outside of the standard industry so I that take an artist to the next level – and Yes. You could also take the opposite view would still tell us no, we’re not. to work side-by-side with the labels, artists, to be everywhere so the repertoire owners definitely took a leap of faith,” she says. “I everything in-between. Without having to and look at 21 Savage, who was distributed I think you are going to see a lot of clients, a range of producers and what need to be organized and really methodical had people asking me why, or saying, ‘Oh, say, ‘Okay, you have to stop talking to this by us and is now signed to Epic and is one evolution in 2019 and beyond and it’s have you, and guiding them on the best about how they are preparing, delivering are you going to be okay? Can I take you to group of people, now go down the road of the biggest artists in the US. Same thing about being a ‘services’ organization – strategies towards really making sure than and updating all of their information to all lunch? I’ll pay, don’t worry!’” and with [a new label], which, with Flipp Dinero. whether or not you are the owner of the you are capturing every penny. these services, so that they are at the top of She adds: “I remember asking our CEO as we know, is not a seamless process. There are artists that at some point are copyrights. The relationship [with artists] Whether that’s how you manage your the heap. That is the boring underbelly of a Brad Navin, ‘So, who are [The Orchard’s] like, ‘Okay, now we need the big guns to is more symbiotic than it was before, with YouTube presence, doing performance very exciting industry. top 10 artists?’ He just laughed, and was That variety of offering is perhaps a come in.’ That’s fine with us, because we more give and take. collections or on-sale, on-air. It’s being a like, you are not going to know any of prime example of what a major label don’t have a radio staff in however many strategic advisor and also making sure than The Orchard has made a few acquisitions these labels… it was all digital, they had looks like in 2019. But does that markets across America [like a frontline What’s on the horizon for the people are prepared for what we haven’t – do you have any more on the cards? next to no physical revenue whatsoever, flexibility bring a question mark over Sony label]. Also artists might need distribution space? even thought about next. Not right now, I need to breathe for a and nothing that was high profile. whether there’s any incentive for artists more cash flow, a deal that’s structured For us it’s about services and less about Voice, for example, and the metadata minute. I’ve clocked up a lot of frequent “But when I got my P&L [profit and to sign away their master rights? Jorja differently, or more creative collaboration A to B, although that’s the backbone and that goes along with that, to make sure you flyer miles! That said, we are always open to loss statement] for a new territory, it was Smith is an interesting example of an with other artists under the umbrella of core of what we do — encoding, storing, have an accurate experience when you ask strategic acquisitions that make sense.

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Spotify is a tech company that the majors now own very little stake in — do you have any concerns about its power? Nope, I don’t because in different parts of the world different [streaming] services are working so our playing field is really level. I think it’s more level than it’s ever been — when The Orchard started, all of our sales were on iTunes. Now there are all kinds of services that are important regionally, and then there is a handful that are important globally.

The industry is banking on there being a lot more growth in streaming. How much more potential is there? From where The Orchard is sitting, I think there is a lot of growth. We put a lot of analysis and math into our projections and we have facts to back it up from the past. We know what markets we are looking to develop in and are really confident and positive about where the streaming ecosystem is going. I like we’ve only scratched the surface.

Which markets are you particularly earmarking for growth? The ones with the biggest populations and least penetration, so Asia, China, Africa – ‘US REGULATION FOR SONGWRITERS IS ARCHAIC – and we are still growing like crazy in South America as well. Business is great, globally. AND IT RESULTS IN LESS FAIR OUTCOMES’ Just because some markets may be richer Some of The Orchard’s key players: [L-R] Jaclyn Bertsch - SVP, Global Label than others, doesn’t mean that we won’t Management & Integrations; Samantha Moore - Director, Analytics; Colleen; Tricia SESAC continues to disrupt the long-standing domination of US perfoming rights by continue to see growth because it’s an issue Arnold - VP, Global Sales & Marketing Joanna Noyes - Senior Director, Marketing of share, too. ASCAP and BMI – while escalating its presence around the world... [In those developing markets] you’ve sprinkled throughout the business. You’ve risen to the top of your profession got infinitely more people, so it’s a volume In our company we’ve got women that with a ‘c-suite’ role at a large music ESAC has a long history of advocating Carey, , Rosanne Cash, Kings the company has successfully expanded game, and you have also got the advertising lead our companies in Italy, Spain, Mexico, company. What’s the key to a successful for songwriters and music publishers: Of Leon, and very successful film and into Europe via its JV, MINT, with Swiss and branding piece that comes into it. south east Asia, Sweden, Denmark, the career in the music business? Sit is, after all, the second oldest PRO television such as Christophe collection society, SUISA. It’s also making The numbers you see now on some pan-LATAM team out of Argentina and Being passionate and happy about what in the United States. Beck, Gabriel Mann and Randy Newman. waves in India, having recently inked a [tracks]… we work with artists who are in Miami, so the female approach is really you are doing. You’ll start to feel the creep These days, there are some major Furthermore, SESAC doesn’t let just digital licensing and administration deal able to get to 10 million streams in a couple ingrained in our culture and has made The if you’re not and then you know it’s time to differences between SESAC and its anybody through the door: the firm for BMG’s repertoire in the territory. of days, it’s crazy. If you have that global Orchard a really wonderful place to work. do a lift-and-shift because life is too short. Stateside competition – not least the fact is focused on only working with truly And then there are its acquisitions, which groundswell it lifts the boat for everybody. In America right now, Amy Dietz is Success is defined in a lot of different that it operates on a for-profit basis, while premium, established and up-and-coming in the past five years have included US running INgrooves [with Bob Roback] ways; it’s not always about having the its two largest competitors, ASCAP and songwriters – which explains why its mechanical rights processing hub The What would you change about the music and Jacqueline Saturn is running Caroline, top job somewhere or making money, BMI, are not-for-profit entities. roster of ‘affiliates’ stands at circa 35,000. Harry Fox Agency (HFA) and micro- industry and why? which is really cool to see and is something it’s about a mix of feeling proud of what SESAC CEO & Chairman John (ASCAP, as an example of the contrast licensing firm Rumblefish. I think the music industry is changing that is very new. I’m all about that change you are doing and who you are doing it Josephson argues that his company’s here, added 40,000 new members to its As for what’s next? SESAC is looking to fast enough on its own – I don’t need to and to seeing what with, and having a work/life balance that commercial imperative makes it more books in 2018 alone.) become an alternative to larger competitors contribute any more! The best thing about happens over the next few years because is manageable, where you’re not only dynamic and hungry to strike the best SESAC is an organization with genuinely around the world and provide songwriters that change for me is the influx of really women are becoming empowered like they [working] 24/7 – you’re able to keep a roof possible deals for its ‘affiliates’, who include global ambitions: backed by multi-billion and publishers a choice. SESAC also hopes strong and amazing women that are now never were before. over your head while having some fun. n huge names like , , Mariah dollar private equity group Blackstone, that HFA will be in contention to become

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How much progress is SESAC making in terms of allowing you to compete freely with incumbent collection and licensing societies in territories like the UK, Germany and beyond? I take it you’re not getting a friendly reception in certain markets? I always say that if you want a friend, get a dog; we did so in my family recently, and I’m already feeling the love! Look, we always expected that the incumbent societies would use every tool available to them to make life difficult for us as a competitor, and that’s proven to be the case. That’s their right and we have no issue with it. We only have an issue when a competitor acts in a manner that’s not consistent with their obligations under the law. I don’t begrudge anybody’s right to fight back against us – in fact, I welcome it – as long as they’re fighting in a manner that’s legal.

The US consent decrees, which govern both ASCAP and BMI, may soon be under review in the US, according to Bob Dylan reports. What’s your view on them as things stand? an administration partner of the new continuing to execute on, in partnership to do anything else that would dilute our In the US, we have consent decrees – what happens to the consent decrees. including seeking public comment before Mechanical Licensing Collective (MLC) with SUISA, and it’s scaling very quickly focus on our existing affiliates. not just in the music industry – that are Now, those consent decrees obviously making any decision about how to proceed – the body widely backed by the industry right now. I suspect the geographic basically settlement agreements between impose a bunch of restrictions on ASCAP and submitting its views to Congress, as to the mandate of the Music footprint of that business is ultimately What excites you the most about SESAC’s parties and the Justice Department, that and BMI that govern their behavior, required by the MMA. Modernization Act (MMA), which passed going to be much broader than just ex-US business going forward? basically say, ‘For the next X years, you can and [those PROs] are seeking to change There is a very high degree of alignment in the US last year. pan-European. We’re now representing We’ve really demonstrated over the and cannot engage in these activities.’ them in a way that will allow them to within the music industry across those The MLC’s operation will be funded by /BMG rights in past, say, 25 years, that we can drive That leaves the Justice Department in deliver better value or greater efficiency participants who create, own or administer admin fees paid by digital services, who India, for example, and there are other value for rights-holders and enhance the the position, nominally, if not explicitly, of to their members. We support pro- musical works: in the event that the will be able to obtain a blanket streaming discussions we’re in the midst of right now, competitive dynamic in the US market. So being responsible for monitoring whether competitive changes or modifications to Justice Department eliminates the consent mechanical license from the body – frankly, across the world. we’re excited by the opportunities we see the parties are behaving in accordance with the consent decrees. decrees, governmental price control covering all music used in the US. This At the core of our business is our bespoke outside the US to drive better outcomes for the terms of the consent decree. People are now waiting to see what legislation is not the solution. means that the likes of Spotify can avoid US performing rights organization. Over rights-holders – providing freedom of In some cases, there are consent decrees the Justice Department will do. Do they Yet we have a group of large and powerful the legal headache of lacking mechanical the course of the past two or three years choice to songwriters and publishers that govern industries that don’t exist want to talk about abrogating the consent lobbying organizations on the other side licenses for individual songs amongst the we’ve really fine-tuned that business, both by competing with incumbent rights anymore, or that are 100 years old and decrees entirely? Do they want to talk that are seeking to exploit this process, tens of millions of tracks on its platform. in terms of the quality and capabilities organizations. Our hope is that we can aren’t very meaningful to anybody. And about modifying them? Or are they going to try and gin up support in Congress Here, MBUSA catches up with John of our technical infrastructure, as well as bring the formula that we’ve perfected in there is a legitimate reason to clean to do nothing? for more regulation of music rights. God Josephson to ask all about SESAC’s recent enhancing our focus on delivering the the US to other markets in the world. those up, and get rid of them. This is the The last time the Justice Department forbid if that happens, because, ultimately, growth, and its ambitious plans for the highest possible level of customer service. I think our participation with MINT stated objective of the process the Justice did this under the Obama Administration, songwriters are the most over-regulated years ahead… We maintain a laser-like focus on driving across multiple territories in Europe has Department has undertaken. they spent two years on it, and ended small business people in the United States, continuous, incremental value for the already created value, not just for SESAC’s Music is a little different because up deciding to do nothing. It could be if not the world. What have been some of the biggest performing rights of our affiliates. We want affiliates, but also for clients of the other the consent decrees we have today are the same outcome here, and either way, progressions at SESAC in the past year? to maintain our strategy of being a home participants in the market, because those still relevant to the way the US market anything that may or may not happen is Be honest: do you see a day where We’re executing on the strategic objectives for high value creators and compositions, entities have had to up their game from a functions and specifically, how performance still a long way off. songwriters’ rights and the rights of that were put in place between 2014 and so we don’t plan to dramatically increase service, price and technology standpoint in rights are licensed. What that means is that We expect the Justice Department to music publishers can be negotiated in a 2017. MINT is something that we’re the number of affiliates that we serve, or response to our entry in the market. there are lots of licensees that care about follow its normal deliberative process, true free market in the United States in

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the same way that recorded masters are to injury, the other side is appealing that at all. Their concern was that the changes currently negotiated? decision, resulting in additional delay and we were seeking would imperil passage of Well, hope springs eternal. There’s no costs to rights-holders. the Act as a whole. That concern morphed reason why it shouldn’t be that way, and it’s SESAC is a free market player, so the into a perception that we were seeking to terribly inequitable that it’s not. very fact that there’s a statutory right that prevent its passage, which we were not. The regulatory construct that governs the needs to be adjudicated before a tribunal, , senators and all stakeholders licensing of musical works evolved out of from our perspective, already ultimately were able to reach a compromise, and once the modes of distribution and consumption inures more to the benefit of the person that was reached, SESAC was actively that existed in the late nineteenth and who’s trying to license the works than the engaged in lobbying for the passage of the mid-twentieth century. They’re archaic and person who created those works. Act. It’s always been our position that free restrictive, and demonstrably result in less When we see certain industry groups market solutions drive the best outcomes fair outcomes for rights-holders. that represent licensees arguing for for rights-holders across all categories, statutory licensing, this serves as a good whether they be writers or publishers. We There have been a lot of broader example of why it just doesn’t work. Those just wanted to be sure that as much of the conversations about the streaming for statutory licensing argue that it is more digital administration market as possible revenue ‘pie’ of late, and especially the efficient and fairer, but what you’re seeing remained unregulated. Copyright Royalty Board-approved rate in this situation is anything but efficiency rise in the US. Spotify and Amazon, and fairness. What else has been happening at the amongst others, are objecting to Harry Fox Agency since you acquired that ‘pay rise’ for songwriters. that org from the NMPA? What’s your view? “Those involved in We’re about 75% of the way through My view won’t come as a shock: what has been a fairly significant those that are involved in that appeal the CRB appeal will undertaking at HFA: to expand process, and in particular those that the size of its database of musical are leading it, will ultimately look look back at their works and to integrate that database back at their actions as a tactical and with SESAC’s so that we can look strategic mistake. actions as a mistake.” across a broader range of rights I would question what the categories, in the first instance upside is for them, as opposed to the At the 11th hour of the MMA process mechanical as well as performance, for benefits they would reap from striving there was some controversy, later each work we represent. for closer alignment with the rightsholder resolved, involving SESAC and your At the same time that we’ve been growing community. The appeal process is going to owner Blackstone. What happened and the size of our data asset, we’ve also involve substantial legal and other costs for where are you at now? been cleaning the data, really scrubbing , although I think the impact of We acquired HFA from the National it to make sure that it performs from these costs will be more sorely felt on the Music Publishers Association in 2015. a commercial perspective at the highest rights-holder side. And, ultimately, I don’t The HFA business has a significant digital level possible. believe that it’s going to achieve a material administration component to it, providing Since the Music Modernization Act was change in the original CRB outcome. services for payments on streaming for passed last year, we’ve also had to invest a If you’re a player that really positions some of the largest platforms in the US substantial amount of time and resources itself as wanting to get ever closer to market. The initial wording of the MMA to make sure that HFA’s administration the artist and the creator, it sends a raised some concerns for us regarding the activities are in compliance with the Act. terrible message. inclusion of performance rights under the The other thing I would say is that this MLC’s administrative mandate and the HFA is participating in the vendor whole process is a good illustration of why related elimination of competition in the selection process for the MLC. How is regulated pricing for music doesn’t create broader digital admin services market. It that going? the efficiencies and balanced outcomes was never our intention to blow the Act up The MLC database is going to be very that licensees often claim. Here you have a or to prevent it from passing – we were just consequential for the music rights years-long process that for the first time in seeking some minor changes. industry, not just in the US but around the decades awarded a meaningful increase in However, there was a very strongly held world. It will be a trusted, public reference the value of mechanical rights based on the view amongst many of the groups that had database for the largest music market in reasoned decision of an independent panel. to try and move the MMA the world, and should therefore be a very That process cost enormous amounts of forward that its successful passage was commercially significant undertaking for Adele money to complete and now, to add insult dependent upon making no changes to it the whole industry. n

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WHY AMERICAN INDIE LABELS Fontaines D.C MUST THINK GLOBALLY

Partisan Records’ British-born Managing Director, Zena White, explains why the New York-based label is investing in promoting its artist roster outside the US...

When people ask me what I miss the most at No.9 with . It wasn’t Lammo alone, about the UK I have three answers: in summer but him planting a flag in something counter to it’s drinking on the street; it’s a good what was trending brought other opportunities Sunday roast; all year round it’s the BBC. for these artists at the BBC and beyond. It’s only since leaving the UK that I For a country five times the size of the UK, have understood the impact of the BBC’s there is a frustrating lack of any leverage-able contribution to the development of culture and media networks in the USA, making it harder the arts. Before taking the job as MD of Partisan and harder to break artists who would have Records, I was in the business of breaking US traditionally been categorized as ‘alternative’. independent artists in Europe. Since moving But it doesn’t actually matter, because press to New York and wrapping my head around seemingly stopped selling records some time ago the US market, I have been surprised to find and the internet gives us access to a far bigger that the US media landscape isn’t favorable for audience than the USA: the world. developing anything new. The USA is home to the HQs of the three Outlets which cover music are either going biggest streaming platforms, each of which away completely or moving behind paywalls, so operate a global strategy. Seemingly, in an it’s a risk to use valuable space to cover something industry that cares so much about numbers, no playlists in higher-paying markets, literally vocal and engaged crowds they’ve experienced. uncertain of ‘clicks’. NPR is the closest we have “The US one cares where they come from – as long as driving revenue at home. Investing their time and art in the people of to the BBC – similar in their public service they’ve been generated by real fans. When looking at the global picture, Cigarettes “If you rack the region early is expected to go a long way status and funding model – however, culture media When we started working with Cigarettes After Sex have sold over half-a-million albums to building a fanbase in Mexico City. As the (and specifically music) is a much smaller slice After Sex in 2016, they were little-known by the (streaming equivalent) and counting – yet only up millions of gateway to Latin America, establishing an of the programming. landscape industry and based in NYC. However, they had a third of these sales are from their top three audience there creates an entry point to pockets Don’t get me wrong, the BBC is not ; already sold out two European tours after their markets: US, France and UK. streams of audience through Bogota, Santiago, Sao it’s worrying that the UK is losing entry-level isn’t music connected with fans in Eastern Europe They’ve sold a surprising amount of physical Paulo, Buenos Aires and beyond. support programs like Radio 1’s ‘In New Music favorable for and was boosted by the YouTube algorithm. copies in tertiary markets such as Poland abroad, it We are using fan engagement through a We Trust’ playlist, whilst on BBC TV ‘Later… After we put out the first single on Partisan and Thailand and since they have a really combination of social media and touring to with Jools Holland’ has been cut in half to one developing they sold 1,200 tickets in Taiwan in just four healthy global touring business, they could be gives you build a global audience before taking these artists season per year. You only need to watch the hours, before their debut album was even permanently on the road if they wanted to be. ammunition back into the ‘traditional’ markets – where they performances of 2019’s to see that new artists.” released. Mexico is one of their biggest markets So what about music which is a more ‘active’ can make the most amounts of money in the the mainstream does not reflect the diversity of and when Spotify launched in India, they were listen and doesn’t find itself so readily on playlists at home.” short term – such as the US, the UK and France. music being consumed in the UK today. one of the most played artists on the platform and in auto-play algorithms? We are tour- So the strategy is simple: build fans – and However, across its channels, the BBC has a in the first few weeks. China too is raising its supporting our more developing artists’ promo thus metrics – where there is a reduced barrier fantastic network of DJs who genuinely support hand and sold out their recent show in visits to Mexico City – just as has traditionally to entry, in turn impacting the primary markets new music, allowing fanbases to be built and Shanghai weeks in advance. been the norm with Paris or Berlin – because where the barrier is increasingly getting higher. artists to thrive. If it were not for Steve Lamacq OK, so this is a business and the payment rates culturally this region loves alternative music and The key to execution is communication; championing visceral, aurally-challenging are low in these markets. However, if you start loyally sticks with an artist they connect with it does not take an expensive amount of IDLES, the independent sector would not to rack up several millions of streams abroad as throughout their career. This is a long term resources to think globally. It takes time, both be seeing such a healthy rise of support for a US artist and are touring the States too, you investment: with low streaming pay-out rates to build a reliable network and to communicate alternative again. In the past seven have ammunition to convince media outlets and the difficulty of physical distribution, we release plans effectively. But whilst payments months IDLES finished at No.5 in the UK and other champions get behind you enough to don’t anticipate this to be a quick . in emerging markets are currently small, the album chart with their sophomore Joy As An propel your home audience. Building metrics However, Tender and Fontaines D.C. both investments made overseas are the future of Act of Resistance and Fontaines D.C. finished abroad also helps to prime the algorithms and just played sold-out shows to some of the most growth potential for alternative artists.

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BEEN THERE, DONE THAT When Strauss Zelnick ran BMG’s global record company in the late nineties, the industry was riding high on the CD boom. The media magnate looks back at his time in music...

trauss Zelnick is a true power player Games, BMG Interactive, during his Who were the biggest artists at the time? in the global media landscape. time in the music business. His superiors The biggest artists when I joined included S The New York-based businessman canned it, and sold it for a reported $9m.) and many country is the founder of Zelnick Media Capital Prior to joining BMG, Zelnick was artists. They also had Notorious B.I.G. (ZMC), which has nearly $20bn in assets President & CEO of video games company in hip-hop. The Arista label, which Clive under its control. Crystal Dynamics from 1993-1995, and Davis was running very successfully, was ZMC is perhaps best known as the firm, President and COO of 20th Century Fox the crown jewel of BMG. that, since 2007, has maintained a highly from 1989-1993 – a powerful hot seat in successful management agreement with Hollywood which he claimed aged just 32. What’s of your first year, Take-Two Interactive, the global interactive Here, Zelnick discusses his path in and how you ingratiated yourself with entertainment company whose IP includes media, his experiences and memories of the A&R ‘lifers’ like Clive? BioShock, Civilization, Mafia and NBA the music business – and his view on the Obviously, I’m biased because I’m seeing – and at which Zelnick is CEO and record industry now that streaming has it through my eyes. But I showed up, Chairman. Via its wholly- boosted its commercial credentials… owned label, Take-Two also owns and publishes the and Red How did you end up in the music Dead Redemption series of games which, business in 1995? according to estimates, have turned over I was recruited by Michael Dornemann more than $5bn between them. (Last year’s to run BMG North America. I had been Notorious B.I.G Redemption II broke records for president of 20th Century Fox, and Collection / Alamy Photo: Everett the biggest opening weekend in the history I persuaded Silicon Valley to [fund] of entertainment, with over $725 million my first video game start-up, Crystal and I didn’t pretend to have any more very quickly, all the while not disturbing the of that hand-to-hand competition. Doug in worldwide retail sell-through during its Dynamics, which is still a successful knowledge than I had. It was obvious not great success that Clive had built at Arista. was always a gentleman, and I was always first three days.) company today. BMG hired me, just to everyone else, but to me, that I had [With that] I basically just stayed out of the a fan. I see the same thing in the media As if all that wasn’t enough to keep essentially, to do a turnaround, with no experience in the music business, so I way, something I’m good at. businesses that I run today, where while we Zelnick busy, in October last year he was a focus on RCA: BMG was second certainly didn’t present myself as someone We were able, in relatively short order, compete with others, we’re friendly. I am named interim Chairman of the board to last in terms of its market share, who did. Initially, I spent my time listening. to bring the company from No.5 out of not a subscriber to the Hollywood adage, at US media and news giant CBS Corp, and the North American division was The first action I took was to preserve what six [in US market share] to No.2 out of ‘It is not enough that I should succeed; my which generated over $14.5bn in FY2018 losing a lot of money. It had no presence was good – which was largely Arista and five. During the time I was there, I think, friends must fail.’ alone. And, to cap it off, Zelnick, a fitness in rock, with some hip-hop presence BMG Direct – and then to restructure the five out of six years, we had record profits, enthusiast, is also a published author of the and a good Nashville presence, but divisions that were not doing as well. market share and . During that period, 1995 to 1999, what acclaimed self-help book Becoming Ageless: that was about it. So we shut down or sold off a bunch was the health of the industry like? Secrets to Looking and Feeling of non-core divisions, reduced the fixed When you got the global BMG job in We were still benefiting from the CD Younger Than Ever. overhead, and then focused on rebuilding 1998, – then a rival – was boom, although there were storm Those of you with longer memories, RCA by bringing in Bob Jamieson and quoted as praising the “terrific job” you’d on the horizon. At BMG, we very publicly though, may remember Strauss Zelnick Jack Rovner to turn it around. done up to that point. That’s a surprising embraced, specifically, . in a different capacity. Zelnick was RCA’s primary focus became an level of gentlemanly conduct when we When I arrived, in late ‘94, [it was clear] hired as President and CEO of BMG unknown artist who hadn’t released his first look around at the fiercely competitive we had real problems with conditional Entertainment’s North American single for the label yet, which was Dave modern music business! access software [i.e. DRM]. Because of our operations in 1995, and became its global Matthews. That turned into a huge hit and I pride myself on being a friend to all – failure as an industry to launch legitimate head in 1998. attracted a bunch of other rock artists like I’ve never intentionally burned a bridge in alternatives to digital distribution, a whole Zelnick left BMG in the year 2000, The Verve Pipe and others. my career. It irritates greatly, but piracy industry sprung up, with Napster shortly before founding ZMC. (Sidenote: Then I turned my attention to building I pretty much like everyone. We all served and others. We as an industry lost sight of as covered on Music Business Worldwide up [D2C brand] BMG Direct, by bringing on the RIAA board, we knew one another; the fact that we were leaving the consumer late last year, Zelnick actually helped start in Warner and Sony products, and that took at CEO level, it’s ’re competing behind. That, however, didn’t bite into the company that would become Rockstar us from No.2 in direct marketing to No.1 for artists [against each other], there’s none BMG’s revenues and profits during my

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I really enjoyed the time I had with Joe. To ask a blunt question, did BMG and and achieved, I think, the highest return These are all A-plus people. the music business make a mistake on a recorded music deal in that decade, selling off BMG Interactive, which between 2000 and 2010. We exited in was your biggest became Rockstar Games, so cheaply? 2009, and by the time I was done, trust

Photo: Bei/Shutterstock professional lesson of your tenure in the I’d say it much more strenuously. When me, I’d had enough. music industry? I joined BMG, we all were aware that We don’t have any exposure of recorded I was charged with the responsibility recorded music was a mature business, and music to this day – although I’m not saying of executing Bertelsmann’s approach management said, ‘What do you think of we definitely wouldn’t in the future. to retirement with regard to Clive, and [expanding into] the movie business?’ I it played out very poorly in the press. said, ‘Look, I really enjoyed my seven years There’s been a lot of M&A activity in [Bertelsmann had a mandatory retirement in the movie business, and I’m proud of music in recent years. With your ZMC age which Davis hit, and Zelnick was asked my track record, but it’s a very challenged hat on, what’s your general perception of to manage the situation.] That’s probably asset class. Let’s look at the next big growth the opportunity there? something I regret handling the way I did. business in entertainment – let’s get into I think the business has gone through its If I could do one thing differently it video games.’ So we did. consolidation; it’s taken the pain and come would be to leave things as they were at We hired a team, and we started out the other side. It will be interesting to Arista. Clive did great. But I had been acquiring properties for distribution, and see what happens with Spotify becoming charged with creating a succession plan and just on the of watching our first release an exceedingly powerful entity. executing it, so I did, and I tried to do it as [hit the market], Thomas Middelhoff, Music publishing is still a good, solid sensitively as I could. I did it in a way where who was then [head] of Bertelsmann, business, but it’s changing, and it will Clive stayed with BMG, which change more as subscription services he did, for a long time, through J continue to dominate the industry. Records and otherwise, even after “You have a global We’re seeing that it’s much, much I was long gone. But it created a harder to break new artists. Music’s lot of unnecessary controversy, record business today a growth business again now, but it and it created some pain for other is burdened by the fact that people people in the mix. The better part probably worth $100bn, still pirate the vast majority of of valor would’ve been to say to my modified to $18bn.” material that they listen to. That BMG’s Strauss Zelnick, Bob Jamieson and Michael Dornemann at the 42nd Grammys in February 2000 leadership, ‘Look, I understand your will change over time, but it’s a points of view about succession, but burden that no other entertainment this is an unusual and outlying case with forced us to divest BMG Interactive – over industry faces. tenure – it really only hit hard after I left. ZMC into the company that it is today, reflected in what became an extraordinary a remarkably talented, creative executive, my noisy objections. with nearly $20bn in assets, we have culture. The wind in our sails was created by and we need to just stay out of the way.’ I didn’t carry the day and we sold BMG What do you see as the music industry’s When you look back now, why couldn’t succeeded by staying in front of the digital people like Jack Rovner and Bob Jamieson Interactive for a penny, essentially, to biggest vulnerability? the music industry get it together? curve, rather than trying to catch up with it. at RCA, Clive Davis at Arista, L.A Reid What did from that experience? what was then a fledgling entertainment The days of selling lots of albums are Because we weren’t software experts, and and at LaFace, at I’ve learned that when you’re fortunate company called Take-Two Interactive. over, largely – we’re not seeing the end we probably made bad choices with people What, when you look back at your Jive, Joe Galante and Tim DuBois at our enough to have talented, creative I couldn’t have protested more but, at of it, we’ve seen the end of it. So I think we worked with. Also, BMG’s market period at BMG, would you count as your Nashville labels, and many others. individuals in your environment, then the end of the day, I had a boss. [Reports the business has to find new [routes] to share, even at its peak, was not enough to personal highlight? you move heaven and earth to keep them following Zelnick’s resignation from BMG nurture and invest in new talent, and break change the industry overall. My instinct is more to count my personal What are your memories of some of happy, focused and motivated. And I’ve in 2000 suggested he had developed a artists in . The vulnerability We were pounding the table at the failings. But you know, those individuals? learned, maybe because I’ve gotten older, difficult professional relationship with is, if a business can’t afford to invest in new RIAA, about [the importance of] digital were that I was able to attract, and retain, I could go on endlessly! Clive Calder was that age has no place in the discussion, Thomas Middelhoff – a crucial factor in talent, it’s burning the furniture. That’s a distribution and piracy, but I think many and motivate fantastic talent who did brilliant from both a business point of whatsoever. People can be super-talented his decision to leave.] fear. As an industry, the minute you start of our competitors felt like, ‘Hey this gravy great work, which was reflected in the view and a creative point of view, as well at any age if they remain excited and focusing only on past, not on the future, train will never come into the station.’ company’s success. You know, there’s that as being exceedingly tough. I had a great motivated, and Clive Davis, I think, is the Do you ever miss working in music? you’ve written your own obituary. Clearly, we as an industry, and I term, a ‘music man’; I don’t think anyone relationship with Clive Davis – press poster child for that. When we started ZMC, the first company personally, did not handle the shift to called me that, although I do love music. I reports to the contrary notwithstanding So that was sort of an obvious mistake. that we bought was, believe it or not, a Is there any particular message that you digital effectively, and the result is that didn’t sign artists, I didn’t produce records, – and I have enormous regard for him, There were a few non-obvious mistakes, record company – Columbia Music of would like to get across to the music today you have a [global recorded music] I didn’t market records – but I did have as does everyone else in the industry. too – we all make mistakes every day, so Japan. It was hard, because it had a tiny business, particularly those you knew market that’s probably [worth] $100bn, an enormous appreciation for the talented Bob and Jack did a terrific job turning there are a few things I wish I’d handled market share when we took it over, had and once worked with? but it’s modified to the tune of $18bn people who did those things. I’m proud around RCA. Tim DuBois is an immensely better than I did. But I’m balanced; BMG been losing money for 20 years, and was I’ve had a great experience and miss many [annually] – down from a peak of about that we were able to retain those who were creative guy, super straightforward, honest, was a great experience for me overall, and thousands of miles away. We were able of my friends in the space. I still see many $35bn. Certainly, as I’ve gone on to build there, and bring in others, and that was and honorable. it served me well. to [execute] that turnaround successfully of them, and I wish them all well. n

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Lucas Keller, manager to some THE of the US pop industry’s biggest songwriters and producers, Last word sounds off on label A&R...

THE MOST EFFECTIVE MUSIC INDUSTRY JOBS BOARD IN THE WORLD

hit record is. Yes, I said it. After having quite a few No.1 and Top ‘THINK BILLIE EILISH 10 records with my clients, all I can offer is my well-informed, but still very subjective opinion. After all, this is 2019: when the MEETS LIL X…’ audience tells you what the hits are, not the other way around. Yet some major label A&Rs know exactly what a hit sounds like – or at least, that’s what they claim. hroughout my 16 years in the music business, just about And then there’s the back-and-forth. Very few people in A&R nothing has been more confusing to me than major record follow through (and I’ve come to appreciate the ones that do). Tlabel culture. It’s parallel to the macho Wall Street-guy “That record’s a smash, email it to me,” – from a label executive character, with all of the same eccentricity. There’s a certain mix never to be heard from again; this happens daily. of arrogance and ignorance that seems to somehow work inside There are a lot of good people in the label system that aren’t the system. This all comes from the ; people mimic their like this – but that list sometimes it’s getting shorter by WWW.MUSICBUSINESSJOBS.COM bosses and the cycle continues. the day. The contradictory behavior and dialogue is complete Talent managers like me are trained to work very hard, while comedy: “We’d like it to sound like the last hit, but different.” always putting the artist, writer, or producer first. Some days we Even more perplexing is the amount of “failing upward” that are the CEOs – some days we are the janitors. We do 300 tangible I’ve seen. Simply stated, people that get promoted because they things in a day, building real value, and we don’t always get a lot were in the room, or were are able to take credit for the hit some of credit. So forgive me if I become confused when record label other way. We all love those press releases: “Jane Doe has been A&Rs do get the credit, despite (some of them) doing very little. promoted from Senior Director of A&R to Senior VP Director of I also have the humility to admit I’m not entirely sure what a A&R West Coast...” What do these job titles really mean?!

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The role of A&R remains very nebulous and requires a lot of about “shopping my project” or “let’s do label meetings in NY and luck... as well as being at the right place at the right time. My play people my music” I’m going to get sick; that’s just not how it favorite A&R people know and acknowledge this. works anymore. It’s a numbers game now. Don’t even get me started Yet I still spend many days as the beneficiary of emails like these on the amount of ‘influencers’ – clearly not real artists – who major ones (all anonymized, but genuine, examples): labels are signing simply because of their social media audience. (i) “I’ve been listening to a lot of Post Malone drums, do that. Sometimes it feels like gone are the days where you’re going Also looking for this record to sound more Spotify than the to find your young David Geffen-type, with tenacity and last single.” great taste, and the willpower to break an act they believe (ii) “I like this song, but it doesn’t sound like a 300 million in. The messaging is simply a bit off inside some record labels stream record.” today: in the room, folks say “we’re looking for real artists”, (iii) “ sounds like a SMASH! Huge record! But not but the majority of the company budget is then spent on signing right for us at this time. Thanks for sending.” quick hits and ‘research artists’. Puzzling. Rest assured, we can all brace ourselves for the rest of 2019 I’ve always had respect for the relationship between creators and hearing: “We just signed her, she’s our Billie Eilish.” Or, and this facilitators, so I’ll tell you this : most people I represent don’t one is already creeping into reality: “Think Billie Eilish meets Lil enjoy those facilitators sitting in the back of the studio making Nax X, but more organic.” comments. In the major label A&R world, this is incredibly For years, I’ve enjoyed replacing all metadata on my pitch common. Stop it! We need to keep studios sacred. with the words “From Keller”. That way, the record is judged on I recall one day sitting with the President of a major label in the merits of the actual song, not New York, and when I asked about who produced or wrote it. a specific artist, he said: “Yeah, we I always get the classic “who wrote “There are, of course, were letting him go, but then he got this?” query before I receive any this huge synch, and now we’re very, feedback on the record. I reply: still A&R mavericks in very excited about him – he is a top “I’m not telling you until you tell me labels who bring real priority for us right now.” what you actually think.” After I’d myself with more Now-a-days, I love to tell A&R value – the honest Tylenol, this reminded me of one guys, “Your artist is going to kill you of -time favorite concepts for when they hear this record, and you ones, with great taste. labels and management: “It’s not didn’t send it to them.” Sometimes who you represent; it’s the years you it works, and they send it on for But I can count them represent them.” insurance purposes. After a major label success, you can This, I admit, is me shamelessly on two hands...” count on pretty much every A&R taking advantage of ‘fear culture’ – person at every record company where everyone is afraid to sign something that doesn’t work, but reminding you they “heard the artist first” or “took a meeting and also terrified of missing out on those songs that do become hits. always believed” as if that’s any type of relevant currency. As a result, many A&R execs today sit in a perpetual state of All that being said... as a manager of nearly 40 clients in the ‘analysis paralysis’, where they need to see a certain metric before writer/producer space, I’m open to admitting I wouldn’t have a they sign a deal. When I witness this, when it’s about the numbers business without our ‘friends’ in A&R. and not the art, I think: Here Lies Artist Development. RIP. There are, of course, still A&R mavericks in labels out there I’ll never really understand that inability to just make a decision who bring real value. I really cherish my relationships with those – whether you want something or not. Sometimes, the best way A&Rs – the honest ones, the ones with great taste, the do-ers, and to get a label A&R to care about a new potential signing is to tell the people who really roll their sleeves up and break artists. But, to them that two other people – specified by name – in competitive be honest, I can count them on two hands. positions are trying to sign it. On a closing note, in the spirit of helping our friends in A&R Now, there are a few people out there in record label A&R that do some work and to the office, I’d like to call upon Soho do still sign things based on their gut and instinct – my favorites. House to finally ban laptops. We truly need to keep that culture alive. More typically, though, But really, I love you all, as shameless as some of you I’ve found the signing process to be binary at this point; it’s either are. I’ve had big hits with many of you, and I can’t deny, I someone taking a meeting with me for our relationship’s sake, very much enjoy the characters. Thanks for the memories. who’s never going to sign the act, or someone who’s all over me, asking what number it will take to get the deal done. n Lucas Keller is founder of Los Angeles-based Milk + , Label culture has largely shifted to data-driven A&R whose clients have written mega-hits for the likes of , (if you follow baseball). If I hear another client talking hopefully , Justin Bieber, and Dua Lipa.

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