Corporate restructures, the come-back of historic labels, and fraudulency have been hot-topics within the industry in 2024
For the world’s major and independent record labels, 2024 has been a massive year. Some of the biggest labels have gone through major executive restructures, tapped into new genre markets, fought with TikTok and have been accused of fraud.
Most notably Universal Music Group has had a huge year, and Warner Music Group has followed a similar path. Read on to hear some of this year’s biggest news stories within the music industry.
UMG Restructured
Starting in February the week of the 2024 Grammy Awards, Universal Music Group dropped some huge news. They were undertaking a total reorganisation of the company. UMG announced they’d be splitting their labels in distinct West Coast and East Coast divisions.
With John Janick assuming the role as Head of Interscope Capitol Label Group, overseeing Interscope, Geffen, Capitol, Verve, Priority and Motown. Monte Lipman increased his purview to encompass Republic, Defjan, Island, Mercury and Centralized Publishing Corp. This change was the biggest for the company in close to a Decade.
Amidst the rearrangement, Capitol Music Group Chair/CEO Michelle Jubelirer and President Arjun Pulijal left the label and were replaced by Tom March & Lillia Parse. Numerous high profile executives were laid-off, yet it left the group with two divisions that each held market shares above 10% at mid-year.
“Led by the industry’s best creative visionaries — we will cultivate more repertoire sources, we will invest more in new artists and emerging genres, and UMG will become an even more attractive destination for the world’s most gifted artists,“ UMG chairman/CEO Lucian Grainge said in a memo at the time.
TikTok Feud
During the same month, UMG ceased negotiations with TikTok, and accused the social media giant of “trying to build a music-based business, without paying fair value for the music” and of being a “bully.” TikTok retaliated by naming the accusation a “false narrative.” They claimed that the label group had “put their own greed above the interests of their artists and songwriters.”
As a result UMG pulled their artists music from the platform, leading to 60% of the most popular songs in the US at the time being removed. The decision had little effect on the company as a whole. Although, individual artists within the label were directly affected and there were internal attempts to find ways around the ban.
Taylor Swift was the first UMG artist to return her music back to the app, ahead of the release of her album, ‘The Tortured Poets Department.”
The conflict between UMG and TikTok founds its end in May. When the two parties developed a new licensing agreement. That same month TikTok walked away from negotiations with indie digital rights society Merlin. They chose to negotiate directly with independent member directly rather and determine a new licensing agreement.
Island Records Finds the Spotlight
Historically Island Records has been home to some of the world’s biggest artists. Their catalogue includes Bob Marley, U2, Grace Jones, The Killers, and more recently Shawn Mendes. Although for the past decade the labels market share as been on a steady decline.
2024 presented the label with a life raft in the form of two of this year’s best performing pop acts, Sabrina Carpenter and Chappell Roan. Sabrina Carpenter rose to stardom this year with three top 10 hit singles, one number one album, and a sold out arena tour. Chappell Roan’s “Good Luck, Babe!” reached number four in the Hot 100, and their festival performances were so popular, she broke an attendance record at Lollapalooza.
The two labelmates became the first pop stars from the same label in history to be nominated for all big four Grammy categories simultaneously. By the end of the third quarter, Island Records, market share had increased 3.5 times from where it was the same time in 2023.
Warner’s Hot
In 2024 Warner Music proved their intentional approach to artist development was indeed no accident. Both Benson Boone with his song “Beautiful Things” and Teddy Swims with “Lose Control”, shared a combined 75 weeks in the top 10 of Hot 100 at Billboard. The two artists received Grammy nominations for best new artist.
2024 also saw Warner Music’s Zach Bryan fall further into stardom with his hit album The Great American Bar Scene. By mid year, Warner held all three of the top-streamed songs of the year, the first time a label had achieved such in the past decade.
The label also saw huge increase in their market share rising from 4.84% at the end of November 2022, to 6.58% so far this year.
Mid Year – Republic gave WMG a run for their money
In recent years Republic have posted regular market shares higher than 10%. Although by mid 2024 Republic was dominating the market. This was due to the label encompassing other labels including, Island, Mercury, Big Loud and Cash Money. As well as the huge albums and singles released by Taylor Swift, Morgan Wallen, Ariana Grande, Post Malone and Sabrina Carpenter.
Their market share rose to 15.72% ahead of WMG who posted 15.68%. Although WMG is set to beat the Republic share by the end of the year. This was a massive win for the smaller label.
WMG Restructure – New Atlantic Leadership
UMG wasn’t the only label to restructure this year. After Warner Music Group appointed the new CEO Rober Kyncle in Jan 2023, 2024 saw the real impact of Kyncle’s objective. The new CEO set out to position the label group to take advantage of growth opportunities and changes in the industry that will arrive over the next decade.
In February, WMG releasedtheir financial results which included their most profitable quarter ever. The group also announced plans to reduce the company’s headcount by 10% or some 600 employees. They also set out to sell some of their owned media assets.
In August 2024, Rober Kyncle announced their official corporate restructure. Which included the departure of the Head of Recorded Music, Max Lousada and the appointment of Julie Greenwalk as Chairman of Atlantic. Elliot Grainge was appointed CEO of Atlantic records, and days later, Greenwalk left the company. Leaving Grainge in charge of Atlantic with a new leadership for the first time in 20 years.
Indie Label Empire Dominated the Hot 100
2024 saw independent label Empire dominate Billboards, Hot 100. The label saw Shaboozey’s ‘A Bar Song (Tipsy)” chart at number 1 for 19 weeks, which is the current record held by Lil Nas X’s ‘Old Town Road’.
Shaboozey has received five Grammy nominations including, Best New Artist, and Song of the Year.
Country Road Meets the Coast
2024 was the year of the country album. Everyone was releasing them from country artists like Morgan Wallen and Zach Bryan, to Post Malone and even Beyonce. This is due to Coastal labels looking towards Nashville for inspiration.
Contemporary country has moved beyond the genres traditional boarders, and country artists are now receiving more opportunity than ever. For example, Zach Bryan signed to Warner Records this year, instead of Warner Nashville.
The change has lead to a challenge for Nashville labels, as deals are now a much bigger price, and interest is on the increase.
Distro not Distribution
This year saw the art of distribution finally lose its meaning of getting product on shelves or even streaming services. It’s become about supporting flexibility, ownership, and holding Market Share.
Through distribution, artists are getting better deals, and more options. Due to increasing presence of Major Labels, with Sony’s The Orchard leading the pack. Indie labels now have their own distribution wings, and volume has become the aim of the game.
Although with this open market distribution system, there has been heightened concern in fraudulence, AI content and who’s responsible.
Sony sent warning letters to more than 700 artificial intelligence developers and music streaming services prohibiting AI developers from using its music https://t.co/XycxsQ1xVo pic.twitter.com/HcHhenuqdY
— Financial Times (@FT) May 16, 2024
Fraud!
2024 saw the music industry raise a public alarm to fake streams, illegal claims, and AI-content. 2024 has seen some of the most high-profile fraud cases in history.
Starting in September the Federal Government caught a North Carolina musician in US$10 Million streaming fraud scam. That found “Hundred of thousand” of AI-generated songs. This was the first case of its kind.
Onto October, when TikTok claimed that it’s decision to walk away from negotiations with Merlin was due to fraudulent behaviour perpetuated by a number of Merlin’s members.
Then in November UMG sued TuneCore and their parent company Believe for US$500 Million. They alleged that TuneCore engaged in “Massive” copyright infringement by facilitating the upload of songs that credited artists like Kendrik Laamar, Arriana Gramde and Jutin Biber.
The same month saw Drake take legal action against UMG stating that label had used bots and third parties to help artificially promote Kendrick Lamar’s dis-track “Not Like Us” during their high profile beef.
Drake used my video in his (pre action) lawsuit against UMG 😂
I made a video showing that Siri was taking you to “Not Like Us” when you asked to play “certified lover boy” on Spotify. I later showed this was because of lyric recognition. But they didn’t include that part lol pic.twitter.com/tEZQCrVM0s
— Jeremy Hecht (@Jeremy_Hecht) November 26, 2024
