Singer-songwriter Lauren Daigle returns to No. 1 on Billboard’s Top Christian Albums chart (dated Sept. 16) with her self-titled set, now available as a deluxe version that adds 13 tracks to the original 10-song album.

Lauren Daigle arrived atop the survey on the list dated May 27 with 25,000 equivalent album units, becoming her fourth leader. After the deluxe edition was released Sept. 8, the set (with both versions combined into one chart listing) rebounds 5-1 for its second week on top. It earned 13,000 equivalent album units (up 388%), with 8,000 in album sales, Sept. 8-14, according to Luminate. On the all-genre Billboard 200, it re-enters at No. 79, after it opened at its No. 21 high in May.

The full LP, which pairs Daigle with producer Mike Elizondo for the first time, is her first through Atlantic Records, with which her longtime label, Centricity, formed a partnership in January 2022.

“It took every ounce of me not to explode the secret of a second half,” Daigle tells Billboard.  “I’ve treasured and stored up this record in my heart for quite some time. I had the privilege of creating with Mike Elizondo and a host of incredibly talented writers who made these songs come to life. Since May, the team has helped pave a way for this music to be heard and I am deeply grateful that people listened. I always say that moments like this take a village. Hats off to all.  Keep sharing the love and the music … it’s what makes this music world go around!”

Daigle had last released new music with Look Up Child, which opened at the Top Christian Albums apex in September 2018 and proceeded to ring up a record 102 frames at No. 1. It was bolstered by the crossover smash “You Say,” which dominated the streaming-, airplay- and sales-based Hot Christian Songs chart for an also unprecedented 132 weeks starting in July 2018.

The first single from Daigle’s eponymous LP, “Thank God I Do,” rules Hot Christian Songs survey for a 19th week, having become her sixth leader in May. It tallied 6.1 million in all-format airplay, 2.2 million streams and 1,000 downloads sold during the tracking week. It also leads Christian Digital Song Sales for a 23rd week. It topped Christian Airplay for a week in July, giving the Lafayette, La., native her fifth chart-topper (and reached the top 15 on both Adult Contemporary and Adult Pop Airplay).

The LP’s sophomore single, “These Are the Days,” pushes 24-23 for a new high on Christian Airplay (987,000, up 38%). On Hot Christian Songs, it hops 43-29, after hitting No. 21 in May.

TikTok announced new tools to help creators label content that was generated by artificial intelligence. In addition, the company said on Tuesday (Sept. 19) that it plans to “start testing ways to label AI-generated content automatically.”

“AI enables incredible creative opportunities, but can potentially confuse or mislead viewers if they’re not aware content was generated or edited with AI,” the company wrote. “Labeling content helps address this, by making clear to viewers when content is significantly altered or modified by AI technology.”

As AI technology has become better — at generating credible-looking images or mimicking pop stars’ voices, for example — and more popular, regulators have expressed increasing concern about the technology’s potential for mis-use. 

In July, President Biden’s administration announced that seven leading AI companies made voluntary commitments “to help move toward safe, secure, and transparent development of AI technology.” One key point: “The companies commit to developing robust technical mechanisms to ensure that users know when content is AI generated, such as a watermarking system. This action enables creativity with AI to flourish but reduces the dangers of fraud and deception.”

Voluntary commitments are, of course, voluntary, which is likely why TikTok also announced that it will “begin testing an ‘AI-generated’ label that we eventually plan to apply automatically to content that we detect was edited or created with AI.” Tools to determine whether an image has been crafted by AI already exist, and some are better than others. In June, The New York Times tested five programs, finding that the “services are advancing rapidly, but at times fall short.”

The challenge is that as detection technology improves, so does the tech for evading detection. Cynthia Rudin, a computer science and engineering professor at Duke University, told the paper that “every time somebody builds a better generator, people build better discriminators, and then people use the better discriminator to build a better generator. The generators are designed to be able to fool a detector.”

Similar detection efforts are being discussed in the music industry as it debates how to weigh AI-generated songs relative to tracks that incorporate human input.

“You have technologies out there in the market today that can detect an AI-generated track with 99.9% accuracy, versus a human-created track,” Believe co-founder and CEO Denis Ladegaillerie said in April. “We need to finalize the testing, we need to deploy,” he added, “but these technologies exist.” 

The streaming service Deezer laid out its own plan to “develop tools to detect AI-generated content” in June. “From an economic point of view, what matters most is [regulating] the things that really go viral, and usually those are the AI-generated songs that use fake voices or copied voices without approval,” Deezer CEO Jeronimo Folgueira told Billboard this summer.

Moises, another AI-technology company, dove into the fray as well, announcing its own set of new tools on Aug. 1. “There’s definitely a lot of chatter” about this, Matt Henninger, Moises’ vp of sales and business development told Billboard. “There’s a lot of testing of different products.”

Concord has acquired the publishing catalog of Mojo Music & Media, a catalog that includes over 30,000 works. Founded in 2018 by Mark Fried, Peter Shane and Alan Wallis, Mojo Music & Media’s holdings include portions of songs recorded by REO Speedwagon, KISS, Cheap Trick, Duran Duran, Earth Wind & Fire and more.

The acquisition comes just after Concord announced that it made a recommended bid to buy Round Hill Music Royalty Fund Limited.

Since its founding, Mojo Music & Media has grown quickly, competing with more established competitors for evergreen catalogs. In 2019, the company partnered with Crestline Investors, Inc. to fund further acquisitions. Soon, it had bought more than 40 catalogs.

Catalogs in the Mojo Music & Media portfolio include: HoriPro Entertainment (REO Speedwagon, Kiss, Jerry Reed), Emerald Forest (Sophie B. Hawkins, Brownstone, Lita Ford), Rick Nielson (Cheap Trick), Warren Cuccurullo (Missing Persons, Duran Duran), Bob Morrison (“Lookin’ For Love”), Sharon Vaughn (“My Heroes Have Always Been Cowboys”), Larry Gatlin (“All The Gold In California”), D.L. Byron (“Shadows Of The Night”), Jeffrey Cohen (“Freeway Of Love”), Earth Wind & Fire’s Al McKay (“September,” “Best Of My Love”), English Beat and General Public’s Dave Wakeling (“Save It For Later,” “Tenderness”), Jordan Reynolds (writer of Dan + Shay hits “Tequila,” “Speechless,” and “10,000 Hours”), Jacknife Lee (Taylor Swift, Snow Patrol, and Kodaline) and the estates of Johnny Burke (“Misty”), Bernie Wayne (“Blue Velvet”) and Johnny Russell (“Act Naturally”).

My nearly 30-year adventure in music publishing has always been about surrounding myself with the greatest songwriters, getting them paid, keeping them inspired, and elevating the power of their songs in pop culture so they vibrate forever,” says Mark Fried, Mojo’s Co-Founder and CEO. “Concord has been on the same mission since its founding, and my partners and I feel like we’ve come full circle working with [Concord’s Chief Business Development Officer] Steve Salm, whom I’ve known and respected since his first days in the business, and other old friends at Concord to bring our catalogs together. I feel a deep responsibility to the artists, songs, and legacies we represent and I’m excited to see them continue to prosper in the hands of such capable and passionate caretakers.”

“We are delighted to have supported Mojo through their successful ramp up and aggregation of their catalogue. All aspects of our involvement with Mark and team have been outstanding. It is a great example of our desire to use our capital to build valuable asset platforms,” said Michael Guy, chief investment iofficer of Crestline Europe.

Steve Salm, Concord’s chief business development officer, remarked, “Mark Fried is a true original who’s repeatedly seen the value in songs and catalogs well before market trends, always putting songwriters first. Over the last several decades, he’s built two premier independent catalogs with Mojo here and Spirit Music prior, winning the trust of some of the most legendary songwriters and artists. With Mojo, Mark, Pete, and Alan have assembled a stellar collection of incredible hits spanning genres, eras, and territories. The Mojo catalog is a perfect fit with Concord’s catalogs, and we’re honored by the trust they’ve now put in us.” 

Concord was represented by Ritholz Levy Fields LLP (Adam Ritholz, Cody Brown, John Brill, Gillian Sloane, Amanda Inglesh, and Jason Barth), and by DLA Piper, Rob Sherman. Shot Tower Capital acted as exclusive financial advisor to Mojo. Mojo was represented by Reed Smith LLP as legal counsel.

Warner Music has hired Disney veteran Bryan Castellani as the label group’s next executive vice president and chief financial officer, effective Oct. 16. Based in New York, Castellani will report to WMG’s CEO, Robert Kyncl.

Castellani has nearly 30 years at The Walt Disney Company under his belt, most recently serving as CFO for Disney Entertainment & ESPN. Prior to that, he held such roles as evp of finance for Disney Media, where he oversaw its distribution, ad sales and networks businesses, and previously he was evp and CFO of ESPN proper and he also spent time in the C-suite at Disney Japan. He started at the company in 1995 as a financial analyst, following a stint at the Federal Reserve Board in Washington, D.C.

“Bryan has wide-ranging experience helping one of the world’s most impactful creative enterprises build long-term value and unlock new global possibilities,” said Kyncl. “A dynamic, operational CFO, he’ll be an excellent addition to our executive leadership team, as we grow the WMG of the future for the benefit of our artists, songwriters, investors, employees, and partners.”

Castellani will succeed longtime CFO Eric Levin, who announced his retirement in mid-March after nearly a decade at the company. He’ll officially retire in January. Levin joined WMG in 2014, overseeing the company’s global financial operations at a time when piracy and streaming were overhauling the fortunes of companies across the music industry. Notably, he saw WMG through its 2020 initial public offering and managed through the leadership transition from Stephen Cooper to Kyncl.

Kyncl noted that Levin departs “with our deepest respect for his many contributions during an extraordinary period of growth that included WMG’s global expansion, numerous major acquisitions, and a successful IPO.”

Castellani said: “I’m delighted to be joining WMG at such an exciting and pivotal time for the company and the music industry. Music is a powerful global force, unconstrained by any specific model or format, and has significant business upside. Robert’s vision for differentiating WMG is inspiring, and I’m looking forward to working with the leadership and finance teams to take the company to the next level in a rapidly evolving landscape.”

Independent musicians will have more power to negotiate with artificial intelligence developers over “fairer rates and terms for the use of their music” if a newly introduced version of the Protect Working Musicians Act passes the U.S. House, according to Rep. Deborah Ross (D-N.C.). 

“AI threatens the creator — finding the person or entity that has co-opted your work and turned it into something else and then going after them is so onerous,” Ross, who sponsored the revised act and sits on the House Judiciary Committee, says in a phone interview from Washington, D.C. “That’s one of the reasons for this bill — to allow people to do this collaboratively. We need to do this sooner than later. We’re seeing this threat every single day.”

The Protect Working Musicians Act, which Rep. Ted Deutch (D-Fla.) introduced in October 2021 a few months before he left Congress, would allow indie artists to collectively bargain for royalty rates with streaming giants such as Spotify and Apple Music. As it stands, the major labels that own most worldwide master recordings have enormous negotiating power to set rates; the act would “give the smaller independent more of a voice,” says Jen Jacobsen, executive director of the Artist Rights Alliance, which worked with Ross on revising the bill.

Ross picked up the bill when Deutch announced he would not return to the House, then held hearings with indie artists in her district, which includes Raleigh. Since then, Ross says, “The AI issue has become even more important.” The revised act would allow artists to behave like plaintiffs in a class-action suit, she adds, “fighting for their rights” with a central attorney.

“Our work is being scraped and ingested and exploited without us even knowing,” Jacobsen says. “Adding the AI platforms seemed like a relevant and important thing to do.”

Writers and artists have warned for months that AI could transform their ideas into new works with no way to get paid for the usage. In April, “Heart On My Sleeve,” an AI-created song that mimics the voices of Drake and The Weeknd, landed millions of TikTok, Spotify and YouTube plays. At the time, Sting told the BBC: “The building blocks of music belong to us, to human beings. That’s going to be a battle we all have to fight in a couple of years: defending our human capital against AI.”

“Musicians are really worried about this — not just the big-name ones, but small artists, too. Small ones, especially,” Jacobsen says. “The most important thing for this bill is that small, independent artists and record labels need to be recognized and have each others’ backs.”

In a statement, Richard James Burgess, president/CEO of the American Association of Independent Music (A2IM), said the bill “would help level the playing field for indie artists who struggle to make a living from the mega corporations that control the streaming marketplace.”

It’s unclear when the House might vote on the revised bill — or if it would pass. “As you can see in Congress, lots of bills aren’t passing — like the budget!” Ross says. “But this has been a very bipartisan issue in the judiciary committee. It’s the perfect time to bring these issues up.” 

Halfway through 2023, the U.S. recorded music industry has set a record for first-half retail revenue, generating $8.4 billion, according to the new RIAA mid-year 2023 report released Monday (Sept. 18). But within that headline number, there are several trends and statistics that are worthy of their own exploration, from increasing revenue to slowing growth figures and the factors behind them. Digging deeper into the numbers, here are four takeaways (and a bonus fifth) from the mid-year report.

Ad-Supported Revenue Flatlines

The RIAA reported that ad-supported on-demand streaming revenue came in at $870.1 million — just a 0.6% bump over the $865 million it generated in the first half of 2022. Looking at the 2022 mid-year report, the ad-supported revenue figure was $871.5 million, up 16.4% from $748.5 million midway through 2021. (The RIAA regularly adjusts and updates figures each year as more data becomes available, hence the discrepancies.) What it points to, at best, is a stagnant advertising market; and at worst, one that risks going backwards.

On one hand, it’s not surprising, given the adverse advertising market across the board in 2023 so far. On the other hand, it’s yet another blow to a part of the model for services like Spotify and YouTube that has been maligned for years and considerably detracts from the value of music. Still, revenue from the “other ad-supported streaming” category grew 56.8% year over year for an increase of $58 million after a few years of negligible growth at best.

The Big Pricing Shift

In the past two weeks, a lot of conversation in the industry has revolved around how royalties from streaming services should be divided moving forward. But the broader issue that many executives are, and have been, pointing to has been about pricing. Music streaming services have fallen behind the times in keeping the price of a monthly subscription largely static over the past decade-plus, while video streamers (with fractionalized offerings) have raised prices regularly.

That’s now starting to change — and it’s being reflected in the numbers. Apple Music and Amazon Music both raised prices for their streaming services at the turn of the year, and that has translated into paid subscription streaming revenue growing 12.4% in the first half of 2023 — even as the average number of subscriptions grew at a much slower rate, increasing just 6.4% from 90 million to 95.8 million. With YouTube Music and, most critically, Spotify increasing prices over the summer — numbers that were not reflected in the first half of this year — the additional value realized will be something to keep an eye on moving forward.

But It’s Not Just Streaming

Those streaming service price hikes get a lot of attention — and rightly so. But the industry is seeing increased revenue from consumers in more than just streaming. The physical product market has continued to grow in revenue, up 5% overall, with vinyl revenue rising 1.3% year over year (up $8.2 million) and CD revenue growing 14.3% (up $29.6 million). What’s more interesting — apart from, perhaps, the winding down of the “vinyl explosion” double-digit increase narrative of the past several years — is that both formats grew in revenue while being down in unit counts.

Vinyl, overall, seemed to be a little static year over year. The number of records sold dropped by about 400,000 or so, even as revenue ticked up. But the discrepancy in CDs was stark: despite the type of double-digit revenue growth that’s been associated with vinyl in years past, there were actually 3.2 million fewer CDs sold in the United States in the first half of 2023 compared to 2022. Whether that’s a reaction to the hyper-fandom of artists who tend to do well in the physical market raising prices significantly or a marker of an industry-wide price hike there, it’s another example of how pricing is shifting across the industry and changing the revenue picture as a result.

Subscriptions Slowing Down?

As noted above, the average number of paid music streaming subscriptions grew by 5.8 million in the first half of the year to 95.8 million. That represents the slowest level of growth — both in raw numbers and in percentage — since at least 2015, when the U.S. streaming industry was still in its nascent phases. The growth in the number of subscribers has been slowing down now for about five years straight, as those who haven’t already gotten on board with paid music streaming slowly sign on. But it’s unclear how much room for growth remains — and, either way, the focus will continue to shift from acquisition and retention to growing value.

As subscriptions continue to near critical mass in the United States, the industry will need to continue its growth rate by convincing digital service providers to get more from the subscribers they already have. Whether that comes from price hikes or finding new ways to monetize fans on platforms — or, more likely, some combination of both — is an area to watch.

And, Finally…

A last word for our favorite sector of the RIAA report each year: ringtones and ringbacks. U.S. consumers spent $6.0 million on them in the first half of 2023 — down slightly from $6.2 million halfway through last year — while the unit count also slightly declined. We are a long way away from the Billboard Ringtones Chart of 2004, yet they continue to hang on as a line item year after half year. What a blessing.

BMG is exiting its current distribution agreement with Warner Music Group’s ADA and taking direct control of its 80 billion-stream digital business in a move the company called “the biggest change to its recorded music strategy” yet, according to a statement released Monday.

The fourth largest global music company will begin phasing in the new strategy later this year, starting with its relationships with Spotify and Apple Music, according to BMG. BMG’s recorded music catalog, which includes works from Jason Aldean, Jelly Roll, Mötley Crüe and Kylie Minogue, among others, will continue to outsource physical distribution and is expected to announce a new distribution partner soon.

It’s the first major strategic initiative to come from BMG’s new chief executive Thomas Coesfeld, and it signals that its roughly 15-year-old recorded music business is reaching a new evolutionary stage, he said.

“This is a new chapter for BMG and marks a significant milestone for the music industry more generally as BMG becomes the first new global… music company to emerge in the past two decades which controls its key routes to market,” Coesfeld said on Monday.

“Taking direct control of our relationships with streaming services is a major leap forward in our mission … (and) will enable us to better market, service and advise our great artists and will further improve BMG’s relationship with key digital and physical partners.”

Third-party distribution held its advantages early on for BMG, chief operating officer Sebastian Hentzschel said, but going direct now will give the German-owned music company greater insight into its streaming data.

BMG and Warner described the winding down of their agreement as amicable.

“We’ve always known that going direct on streaming was BMG’s ultimate objective and we’re proud to have helped them grow to the scale where they could achieve it,” Robert Kyncl, CEO of Warner Music Group, said in a statement. “Taking this step will mean we create more space for ADA to focus on developing new partnerships, and for WMG to continue to grow our investment behind artists, songwriters and labels.”

In late August, Billboard reported that BMI is in serious discussions to sell itself to New Mountain Capital for $1.7 billion, less than a year after the organization announced it was switching for a for-profit model. No deal has been signed, but talks are serious enough that the two sides have entered into exclusive negotiations, and the change in the way BMI operates — especially after the industry became aware of how much profit it has generated in its most recent fiscal year — has triggered an avalanche of questions from songwriters and music publishers. The most important: Will BMI’s future profits come at the expense of  royalty payouts to its more than a million affiliated songwriters and publishers. 

BMI had $147 million in earnings before interest, taxes, depreciation and amortization in its most recent — but as yet unannounced — fiscal results, according to Reuters. The question is where this money came from. 

“Where does profit come from for a performance rights organization?” asks one veteran music publishing executive. “It can come from only two buckets — the cost bucket or the royalty distribution bucket.” And that executive, like several others, believes that BMI “definitely didn’t cut $147 million in expenses.”

Although BMI made news in October 2022 when it announced it would begin to operate on a for-profit basis, three of the four U.S. performance rights organizations are actually set up as for-profit corporations; ASCAP is an unincorporated membership association under New York state law that operates on a not-for-profit basis. Both ASCAP and BMI file form 1120 with the I.R.S., as SESAC and GMR likely do as well. For decades, though, the first two operated on a not-for-profit basis, which likely means that since they pay out all the royalties they collect, minus expenses, they have no profit on which to pay tax. ASCAP’s Articles of Association states that “all royalties and license fees collected by the society shall be…distributed among its members,” except for expenses and contributions to a reserve fund.

BMI has always operated the same way, even though it has always been a private company owned by radio and television companies. In July 2022, though, rumors started spreading about BMI’s plans to change its operations, and the company hired Goldman Sachs to shop the company, preferably to a company which can fill the role of a strategic, but non-industry, partner. That effort didn’t result in a sale, either because the not-for-profit model BMI operated under at the time left it without any profit to show potential buyers, according to some sources; or, as other sources say, because BMI didn’t find a partner at that time that shared its vision of prioritizing the interests of songwriters.

Last October, when BMI announced it would switch to operating on a for-profit basis, the initial reaction in the industry was muted. This summer, however, when Reuters reported that BMI was once again up for sale — and that it had generated $147 million in earnings before interest, taxes, depreciation and amortization — creators expressed alarm, especially at the idea that those earnings might have been taken out of their royalties.

On Aug. 17, five creators groups sent an open letter to BMI CEO Mike O’Neill that asked 17 questions about BMI’s new business model, including whether songwriters and publishers would receive any of the proceeds from a potential sale, how the organization generated so much profit, and how it could continue to do so without reducing payouts to songwriters and publishers, the last of which is an especially significant worry, according to sources. The letter came from the Black Music Action Coalition, the Music Artists Coalition, the Songwriters of North America, SAG-AFTRA, and the Artists Rights Alliance.

So far, the only music publisher to comment on the changes at BMI is Universal Music Publishing Group chairman and CEO Jody Gerson, who said in a statement that, “We will only support changes that increase value for songwriters and will not stand for any that result in our songwriters being paid less than what they deserve.” Other publishers would not comment on the record but expressed concerns. 

On Aug. 18, O’Neill responded in a letter to the creators groups and acknowledged that they raised “some important questions” about BMI’s evolution. (His letter was shared with Billboard, and published in full along with a story on it.) He said that the change would allow BMI to invest in its business in order to grow, plus increase payouts. Most important, O’Neill wrote, in the event of a sale, BMI “would ensure that any partner embraces our mission of prioritizing the interests of songwriters, including their financial success. This is especially important as we navigate this rapidly changing industry together.” 

(BMI executives declined to be interviewed for this article but they responded to questions with emailed statements, issues other statements for two other stories on the issue, and provided Billboard with the letters O’Neill wrote in response to the creators groups.)

“Relying on the past never sustained a business for the future,” BMI said in an Aug. 29 statement to Billboard. “Our goal is to stay ahead of the changing industry and invest in our business to grow the value of our affiliates’ music.”

O’Neill’s initial letter didn’t satisfy the groups behind the letter, which followed up with another letter to BMI on Aug. 25, which was also obtained by Billboard. “While we appreciated you responding to our letter,” it read, “all of our questions went unanswered.” So far, sources involved with the music creators groups argue. BMI has still not responded to most of the questions in the original letter. 

SLICING A FOR-PROFIT PIE

The other big question hanging over a potential sale of BMI is what it would mean for its competition against and its relationships with the other collective management organizations that it competes with but also collects money for and in turn receives royalties from under reciprocal agreements. Because of BMI’s change in governance, it has gone from being a member of CISAC, the international organization of CMOs, to a client, so it is no longer bound by the organization’s transparency rules but will still have access to its data systems.

ASCAP, BMI’s main competitor in the U.S. for more than eight decades, had a pointed take, which it shared in a social media campaign clearly aimed at BMI, though it did not mention the company by name. Its tweets included “We pay songwriters, not shareholders;” “growth without greed;” “Not for profit since 1914 and still growing;” and “There is no I in ASCAP.” Asked to respond, BMI issued a statement: “Our focus is not on how our competitors position themselves, our focus is on delivering for our affiliates.”

So far, BMI has made record payments to affiliates under its for-profit model, the company claims. In a Sept. 5 letter, posted on BMI’s website, O’Neill points out that the company has made three distributions under the new model, each higher than the corresponding one from the previous year. BMI said in an emailed statement that the three combined payments are 9% higher than they were in the previous year. Two of those payouts, according to O’Neill’s Sept. 5 letter, “are the “largest in [the] company’s history.” BMI also set a record in 2022, when it collected $1.573 billion, a 15.58% increase over the previous year, and distributed what it called an “unprecedented” $1.471 billion, a 10.2% increase.  

If BMI’s core business keeps growing, it would be relatively easy for the company to continue to increase annual payouts, while keeping healthy profits for itself, industry financial executives point out. From now on, though, songwriters and publishers will have to take BMI’s word for its financial success because, according to sources, its 2022 results are the last ones it will make public. The kind of financial information BMI has traditionally shared would allow publishing executives to see where BMI’s EBITDA is coming from – which could potentially fuel further debate about how much of that money ought to have gone to rightsholders, but didn’t. 

Going forward, BMI will instead emphasize and expand the financial information it provides to individual songwriters and their publishers to allow them to compare its payouts with previous years – and potentially, if BMH songwriters so choose, with those going to their co-songwriters who are affiliated with other PROs. That information would show affiliates that it takes its obligations to pay creators competitively, say sources familiar with BMI’s thinking. 

BMI’s reluctance to share information is not unique. Both SESAC and Global Music Rights (GMR) operate under a for-profit model, and neither shares information about its overall financial results. Sources speculate that GMR, a boutique U.S. performance rights organization that represents top-tier writers for performance rights licensing, collects more than $150 million. Less is known about SESAC’s financials, which it guards closely, but in 2013 when investment firm Rizvi Traverse acquired a 75% interest in the company, Billboard obtained the financial information used to shop the company which showed that in 2011 SESAC took in $128 million in collections, and paid out $60 million in distributions, leaving itself with $68 million in net publisher’s share. After $27 million in expenses, the company realized $41 million in EBITDA, an EBITDA margin of 32%, according to Billboard calculations. (Rizvi Traverse subsequently sold SESAC to Blackstone for about $1 billion in 2017.) For the year ended June 30, 2023, Billboard estimates that BMI has an EBITDA margin of 8.1%, although BMI is unlikely to make public these financial results. In other words, SESAC’s 2011 EBIDTA margin was four times larger than BMI’s, Billboard estimates.

SESAC and GMR declined to comment or could not be reached to comment on their profitability. But an executive familiar with SESAC’s strategy noted, “everyone who’s affiliated with SESAC has known SESAC is a for-profit” company. The implication is that it didn’t switch models, as BMI did.

The same goes for GMR, and some industry sources find it ironic that Irving Azoff, who founded the for-profit GMR, is on the board of two of the creators groups leading the charge in criticizing BMI. Like SESAC, GMR has always made clear to songwriters that it operates as a for-profit business, and it shows its affiliates a rate card with the amounts of money it collects from different licensees, sources say, so they can compare that to other PROs. It sticks to those rates, unlike BMI and ASCAP, which have bonus plans, explained on their respective web sites, which pay out more money per play to songwriters who accumulate a certain number of plays.

At BMI and ASCAP, for example, a pop song might generate a payout of about a dollar a play on a popular big-city radio station, but a composition that qualifies for a bonus could generate three times that much, to use a simplified example. These bifurcated rate structures apply to most big genres, and to subscription streaming and satellite radio play, as well as terrestrial radio. While some songwriters and executives argue that it’s not fair to pay top songwriters and their publishers at a higher rate, since their songs accumulate more plays anyway, these plans allow BMI and ASCAP to compete for top writers with SESAC and GMR, which are not bound by antitrust consent decrees the way BMI and ASCAP are. For BMI and ASCAP, having those top writers helps them get better rates from licensees. “A rising tide lifts all boats,” as one PRO executive says.

Even so, these plans show how the two big PROs structure their businesses in order to pay different rates to songwriters, which sources suggest BMI had to do even more in order to generate a profit.

Sources familiar with BMI’s thinking dismiss as inaccurate the idea that it will change the way it pays songwriters and publishers and BMI in an email to Billboard called this unfounded speculation. But other industry sources suggest that BMI’s switch to a for-profit model gives it an incentive to grow that would make such a switch worth considering. And there are plenty of ways it could do so. “There are a lot of rule changes they can make there and in other places to get dribs and drabs that would impact people equally but not so noticeably,” says an executive at a competing PRO. As another executive notes, paraphrasing a music publishing saying, “If you get a crumb here and a crumb there, eventually you have a loaf of bread.”

If BMI does decide to alter its payout structure, changes are likely to come at the expense of less popular songwriters on the so-called long tail, argue other sources, or smaller publishers who are less likely to push back. “The people with no representation are at the biggest risk in the for-profit model,” the music publishing executive says. “For sure, [BMI’s profit] will come out of the pocket of many, many people who are currently paid little amounts of dollars.”

Another executive familiar with BMI’s plans says that this kind of speculation is nonsense, and O’Neill said in the Sept. 5 letter that there is no truth to these rumors. “The industry’s most successful music creators didn’t start out that way,” he said in the Sept. 5 letter, “and we pride ourselves on our work helping to guide, develop, and support your talent to ensure your passion can also be a profession.”

Not everyone is convinced, though. “In the music industry,” says another veteran executive, “we usually oil the squeaky wheels with money.”

OTHER QUESTIONS

Even after these two big questions are addressed, others remain. One: Will BMI loosen its rules on songwriter departures, since its switch to a for-profit model represents such a dramatic change in how it operates?

More immediately, will BMI’s balancing act – operating for-profit while continuing to make sure its affiliates are paid fairly – appeal to a private equity player? The company already operates under a consent decree, and its first attempt at a sale, in the summer of 2022, didn’t succeed.

It’s also hard to predict what effects a potential BMI sale to a private equity fund would have on its regulatory environment, from the possibility of more antitrust scrutiny from the U.S. Dept. of Justice to the chance of a renewed look at a compulsory license for public performances.

And the big question driving all of the arguments still remain unanswered. If BMI does make a deal to sell itself, will songwriters and publishers share in what sources suggest is a $1.7 billion valuation price? Will some of that money be earmarked for infrastructure improvements? Or will all of it go to the radio and TV stations that own BMI? Since BMI has taken in an average of about $238 million a year in annual licensing fees from terrestrial radio and broadcast television over the last half-decade, that means that a price of about $1.7 billion would fund about a seven-year licensing rebate for BMI’s owners.

UPDATE: A previous version of this story incorrectly stated that all four U.S. performance rights organizations are set up as for-profit corporations. It was updated on Monday (Sept. 18) at 4:10 p.m. ET to reflect that ASCAP is actually an unincorporated membership association under New York state law that operates on a not-for-profit basis.

Magnus Talent Agency, the agency division of Marc Anthony and Michel Vega’s company Magnus, has acquired the booking and management division of Tomas Cookman’s Industria Works.

Moving forward, Spain-based Industria Works’ staff and global roster will join MTA’s Miami-based team at Magnus, with five new staff members joining MTA, and for a total of 25 artists on its roster.

MTA’s original roster includes Marc Anthony, Fonseca, Gente de Zona, Il Volo, Micro TDH, Mau y Ricky and Bacilos, among others. Now, it will incorporate artists such as Trueno, Love of Lesbian, Paula Cendejas, Villano Antillano, YSY A, Maikel Delacalle, Nicola Cruz and YADAM, which Industria Works currently books for shows and tours in Europe and Latin America.

Industria Works founder Tomas Cookman, who also owns Nacional Records and founded the Latin Alternative Music Conference, will continue to play a leadership role within the new partnership.

“I’ve known and admired Tomas for over twenty years and we share the same passion for excellence in talent representation,” said Michel Vega, CEO of Magnus, and who originally founded the company with Marc Anthony. “This new partnership is an important step in our international expansion and will provide a crucial local presence and expertise in the European market and beyond, all in the name of continuing to provide top of class service to the careers of iconic and soon-to-be iconic artists.”

Cookman says he opted not to have a title in the new venture, “but I am involved in building this with Michel on a day-to-day basis (along with my other ventures) as always. I have always considered Michel Vega a friend – and am now proud to call him a partner. We are excited for the opportunity to join forces with a solid team to maximize opportunities and bring a truly global booking and management experience to our combined artist roster. I am a believer in the power of teamwork and Michel and Marc have created a solid foundation to continue building upon.”

Industria Works’ current head of Spain, Agustin Lopez, will lead the Madrid-based office and overall Spain team. Other Spain-based team members, Ulia Moreno, Patricia Zavala and Alicia Toboso, have also joined MTA and will continue to work out of Madrid and Barcelona.

The acquisition will give MTA added presence in Europe and it will also diversify its roster. At the same time, Industria Works will benefit from MTA’s infrastructure and its presence in Miami, the epicenter of Latin music.

“Tomas is coming on board to help us grow the agency in the future by leveraging his extensive network of contacts, vast experience in artist representation, independent thinking and entrepreneurial spirit,” added Vega.

Cookman will continue to oversee both Nacional Records and the LAMC, which are not part of the deal.

Today we are releasing U.S. recorded music revenue data for the first half of 2023, reflecting 9.3% growth over the first half of 2022 — the ninth straight year of positive growth.

With overall first-half revenues hitting an all-time high of $8.4 billion at retail value and paid streaming subscriptions nearing 96 million, this report makes clear the strength of American recorded music’s fundamentals.

For example, this new data shows broad strength across formats — especially digital streaming, which now comprises some 84% of recorded music revenues and grew at a robust 10.3% rate this period. Looking solely at paid streaming subscriptions, that figure climbs to 11%.

In fact, paid subscription services were responsible for nearly two-thirds of total revenues and more than three-quarters of streaming revenues. And they continued to grow at an even faster rate than ad-supported revenues.

But it’s not only streaming; the new data also show the lasting power of physical formats — which grew by 5% — including growth in the value of sales of CDs and vinyl. Overall, physical revenues reached their highest level since a full decade ago, topping $880 million so far this year.

And digital and customized radio music revenues, which include SoundExchange distributions for revenues from services like SiriusXM and internet radio stations, grew 16% to $657 million for the period.

As we’re fond of saying, “Music doesn’t just happen.” This success reflects the hard work, innovation, and creative genius of the artists, songwriters, labels, publishers, and services that make up the U.S. music community. 

Finally, with annual Latin music revenues in the U.S. exceeding $1 billion for the first time in 2022 and the first half of 2023 showing continued growth faster than overall revenues, Latin music continues to shine — both economically and creatively. We look forward to releasing a full report on the Latin segment during Hispanic Heritage Month and as a capstone to our upcoming RIAA Honors Celebration of Latin music where we will recognize legends Gloria and Emilio Estefan, superstar Sebastián Yatra and other Latin music trailblazers as well as the policymakers who protect it all.

RIAA is proud to develop and release this transparent data which shows the continued power and vitality of U.S. recorded music.

Mitch Glazier is chairman/CEO of the Recording Industry Association of America.