Tencent Music Reports Flat Growth in Mobile Users, $859 Million Total Revenue for Q2 - Billboard
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August 13, 2019 Page 1 of 22
INSIDE Tencent Music Reports Flat Growth
in Mobile Users, $859 Million Total
CBS & Viacom
Announce Long-
Anticipated
Reunion
Music User
Revenue for Q2
Groups Warn
DOJ Abandoning BY MARC SCHNEIDER increase of 7% year-over-year but down from Q1’s
Consent Decrees $171 million. Increases in content expenses and
‘Would Be a Public Tencent Music announced second-quarter results revenue sharing fees drove the cost of revenues for
Policy Error of the late Monday showing flat mobile user growth and a Q1 by 46.1% to ¥3.96 billion ($576 million). Gross
Highest Order’ slight dip in how much revenue the firm is squeezing profit or the quarter increased by 8.1% to ¥1.94
out of each user. billion ($283 million). Total operating expenses
Placido Domingo The company reported total revenue of ¥5.90 reached ¥1.05 billion ($153 million), down $2 million
Accused of Sexual billion Chinese yuan ($859 million) during the from last quarter.
Harassment
quarter ended June 30, a 33% year-over-year TME only managed a 1.2% increase in mobile
increase, but only a small bump from Q1 when that monthly active users (MAUs) for its online music
Judge Rules
Grammy Awards number was ¥5.74 billion ($855 million). services year-over-year, from 644 million to 652
Outfit Made Of the total revenue, ¥1.56 billion ($228 million) million. Last quarter, that total was actually higher
Ex-Employee Sign came courtesy of Tencent’s music services (QQ — 654 million MAUs. Paid users of TMEs music apps
Unconscionable Music, Kugou Music, and Kuwo Music), driven increased 33% to 31 million compared to the same
Deal by music subscriptions and sales of digital music period last year. That’s up from 28.4 million in Q1.
albums. Compared to a year ago, the tally is a Likely a major concern for investors is the monthly
Michael Bunnell, 20.2% improvement but is actually down from Q1 average ad revenue per user (AARPU) for those
Coalition of when music services revenue was $239 million. MAUs, ¥8.6 ($1.22), down 1.1% year-over-year but a
Independent When isolated, music subscriptions accounted for cent from Q1 when it amounted to $1.21.
Music Stores ¥798 million ($116 million) of Q2 revenue, a 31.9% ARPPU for Tencent’s social apps, such as WeSing,
Founder, increase year-over-year. enjoyed a 16.5 percent increase over last year to
Announces The company recorded a net operating profit of roughly $18.39 per user.
Retirement ¥1.09 billion ($158 million) during the quarter, an (continued)
C O N G R A T U L A T I O N S T O
S H A N E M c A N A L L Y
& P R I D E S U M M I T
HONOREE
Page 3 of 22
[In Brief]
CBS & Viacom
As of June 30, the company had such as audio books and podcasts. We
combined cash and cash equivalents of strengthened our alliances to produce
Announce Long-
¥19.90 billion ($2.90 billion). and distribute more high-quality original
Since the quarter in question wrapped up, soundtracks, including our partnerships
Anticipated
TME’s parent company, Tencent Holdings within the Tencent ecosystem to develop
announced plans to purchase a 10% stake original music content for games, films and
Reunion
in Vivendi’s Universal Music Group, one TV shows. In social entertainment, we not
of its main sources of licensed music. TME only effectively broadened our user base
doesn’t mention the UMG deal in its Q2 through mini-program and a lite version
financial disclosure, but does reveal plans to app, but also improved user engagement BY ASSOCIATED PRESS
partner with manufacturers of cars, smart by adding new product features, especially
speakers and watches in the near term. social features with high user participation. CBS and Viacom announced a long-antici-
“In order to provide users a consistent We are pleased with our progress and pated reunion Tuesday (Aug. 13), bringing
and cohesive listening experience, we confident that these initiatives will lead together their television networks and the
are forging Internet of Things (IoT) to further growth in the second half of the Paramount movie studio as traditional me-
partnerships with leading manufacturers year.” dia giants bulk up to challenge streaming
of cars, smart speakers and smart watches, On Wall Street, shares of Tencent Music companies like Netflix.
which will provide further channels for (TME) were down 2 percent in morning Viacom CEO Bob Bakish, who will
user acquisition,” said Tony Yip, chief trading, with the price hovering around become CEO of the combined company,
strategy officer of TME. “As part of our $14. That’s down from roughly $16 per said the new ViacomCBS will be “one of
internationalization strategy, we are also share a month ago. only a few companies with the breadth and
looking to expand our social entertainment depth of content and reach to shape the
services outside of China, as we take initial future of our industry.”
steps to explore overseas opportunities for Analysts say the reunion will help both
WeSing in South East Asia. These small companies navigate an ever-competitive
steps we are pursuing will enable us to streaming landscape.
better serve users and expand our reach at Viacom owns Paramount Pictures and
both home and abroad.” pay TV channels such as Comedy Central,
Added Cussion Pang, CEO: “We MTV and BET, while CBS has a broadcast
continued to expand our music content network, television stations, Showtime and
leadership by partnering with more music a stake in The CW over-the-air network.
labels, as well as adding more content MoffettNathanson analyst Michael
including music-centric variety shows, Nathanson said Paramount’s movie
short-form videos and long-form audio library could be added to Showtime’s
DECISIVE INTELLIGENCE.
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producers and other creative professionals
whose work is in contention this year, including
CONTACT:
for Record Of The Year, Album Of The Year,
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Song Of The Year, and Best New Artist.
Lee Ann Photoglo | 615.376.7931 | laphotoglo@gmail.com
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Take this opportunity to remind the industry Lori Copeland | 323.525.2020 | lori.copeland@thr.com
of the accomplished work that was released
*Special rates available for independent artists and companies.
between October 1, 2018, and August 31,
2019, as the members of the Recording
Academy™ prepare to cast their ballots for
Music’s Biggest Night®.
SUNDAY, JANUARY 26, 2020Page 5 of 22
[In Brief]
premium networks and streaming service, “If you’re going in both directions, you’re Moonves’ ouster last year in the face of
for instance, while CBS’ streaming hedging your bets, but are you pulling your multiple sexual misconduct allegations
service could get a boost from Viacom’s punches on whatever the best strategy changed the dynamic. Under an
Nickelodeon video. might have been?” Begley said. agreement, Shari Redstone agreed not to
Once the all-stock deal is completed, CBS says All Access and its Showtime push for a reunion for at least two years,
expected by the end of the year, CBS streaming services have 8 million but that left open the possibility of CBS
shareholders will own about 61 percent subscribers combined. That’s far less than itself pushing for it.
of the combined company and Viacom the 60 million U.S. subscribers that Netflix Redstone will be chairwoman of the
shareholders will own the rest. The has, though it’s comparable with the combined company’s board.
companies say the combined company will estimated number of subscribers to HBO “We will establish a world-class,
have $28 billion in revenue. By combining, Now, that network’s stand-alone streaming multiplatform media organization that
the companies say they will save $500 service. is well-positioned for growth in a rapidly
million a year. The combined company would still transforming industry,” she said.
Acting CBS CEO Joe Ianniello will be small compared with behemoths like The stocks of CBS and Viacom both
become chairman and CEO of the CBS Disney, with a vast library of movies rose less than 2% in afternoon trading
division in the combined company. and shows, and Netflix, the pioneer in Tuesday, a reflection of Wall Street having
CBS, which separated from Viacom in streaming technology. CBS has a market anticipated this deal, especially in recent
2006, was one of the first media companies value of $18 billion and Viacom has days. Disney’s stock was up 1%, while
to launch its own streaming service, CBS a market value of about $11.7 billion. Netflix was unchanged.
All Access. The $6-a-month service now Disney’s is nearly $245 billion and Netflix is
has a new Star Trek series, a revival of at $136 billion.
Music User
The Twilight Zone and archives of old and Begley said the combined entity might
current broadcast shows. have to consider other acquisitions to
Groups Warn
Now, Disney, Comcast’s NBCUniversal keep up with competitors. However, the
and AT&T’s WarnerMedia are jumping number of possible targets is dwindling,
DOJ Abandoning
in with their own services as well to he said, with what’s left mostly smaller
challenge Netflix, Amazon, Google and companies such as the Discovery and the
Consent Decrees
other tech companies encroaching into AMC television networks and the MGM
entertainment. To expand its library, and Lionsgate movie studios.
‘Would Be a Public
Disney bought Fox’s entertainment CBS and Viacom have had an on-again,
businesses for $71 billion in March, while off-again relationship.
Policy Error of the
DirecTV owner AT&T bought Time After splitting in 2006, CBS and Viacom
Warner last year for $81 billion. both remained controlled by National
Highest Order’
The companies say the combined Amusements. Shari Redstone, daughter of
company will create content not just for its media mogul Sumner Redstone, runs the
own services, but for third-parties as well. holding company.
The new company wants to speed up the The split was a way to separate Viacom’s BY ED CHRISTMAN
growth of its streaming services, including networks like MTV, Nickelodeon and
CBS All Access, Showtime, and Pluto TV, BET, which were very successful at the The Radio Music Licensing Committee,
the free ad-supported service that Viacom time, from the slower growth of the CBS the Digital Media Association and the MIC
owns, and drive more advertising to its network. Coalition responded efforts to reform the
services. But over time, the two companies’ fates decades-old system determining ASCAP
Moody’s media analyst Neil Begley said were reversed. CBS under longtime chief and BMI’s rates.
the biggest question will be whether the Les Moonves became more profitable and While music publishers, songwriters
new company will focus on its subscription- Viacom struggled, hurt by weakness in its and both ASCAP and BMI are urging the
based streaming services such as CBS All Paramount studio and people dropping U.S. Department of Justice to reform the
Access and Showtime or ad-supported ones cable in favor of streaming. consent decrees under which the two
like Pluto TV, or keep doing both. A recombination makes sense now performance rights organizations operate,
Companies might not make enough because media companies are bulking up and eventually allow them to expire, music
on subscription fees to break even, but it their content offerings to better compete users insist that the consent decrees are
might not be able to get enough viewers for ad dollars. But Moonves was against vital to the music licensing landscape and
with free services to attract enough the idea, as CBS was stronger and more without them chaos would reign.
advertising either, he said. profitable than Viacom. In comments filed with the DOJ byPage 6 of 22 [In Brief] the Radio Music Licensing Committee was able to get in 1935. In order to align the essential part of the legal and commercial (RMLC), the Digital Media Association two PROs, the DOJ also came up with a framework that supports the sound (DiMA) and the MIC Coalition — whose similar consent decree for BMI in 1941. functioning of the U.S. licensing market.” members includes the former two groups Consequently, “It would be a public The Music Modernization Act requires as well as 12 other trade groups — before policy error of the highest order for the DOJ to report to Congress if it makes an Aug. 9 deadline, the organizations all the Department to seek to eliminate any changes and to justify those changes. wonder what has changed since the DOJ or materially alter those essential, pro- This ingredient was included, music users concluded its last two-year long review in consumer ‘rules of the road’ — at least argue, so Congress could react by creating 2016, when it decided to keep the decrees without a replacement legal regime at the new laws for licensing, if Congressional in place. ready to substitute in and perform a similar leaders disagree with the DOJ’s actions. The joint statement from the two music function,” according to the joint comments The music users also complain that the user groups, RMLC and DiMA, argue the from the RMLC and DiMA. “These are not BMI rate court created a more onerous 65-day comment period for this review, some archaic, outdated settlements of legal environment for music licensees with its which has the potential to terminate disputes whose relevance has long-since September 2016 ruling for the first time or sunset the decrees, is a woefully dissipated. They are the cornerstones of on the long-disputed notion of fractional “insufficient amount of time to analyze contemporary music licensing practices licensing rather than whole-works the effects of such a seismic change in the in industries from over-the-air radio, to licensing in publishers’ favor — and that industry — much less to complete that digital streaming platforms, and beyond.... ruling was upheld on appeal in December analysis and incorporate it into public The public interest would be severely 2017. Fractional licensing “simply allows comments.” harmed if they were diluted, significantly publishers to impose an added tax on the The consent decrees, while different for limited, or — worse yet — put on a path to digital economy,” they claim, since music ASCAP and BMI, have many of the same outright elimination by the Department.” users have to buy a license from each ingredients. They require ASCAP and In recent years, court rulings solidified publisher to play a song, which would BMI to grant a license to any music user what ingredients are entrenched in the make the PRO efforts complementary to that applies for one, even if the two parties decrees so that publishers either have to each other instead of competitive with can’t agree on a rate; provide a forum — be all-in or all-out on the blanket licenses. one another. “After all, nothing any of the Southern District of New York Federal That means they can’t use the blanket [the PROs] could license, on their own, Court — for the rates to be determined, if license mechanisms to provide music to would actually yield legal permission to negotiations fail; require the two PROs to radio, while withdrawing digital rights play anything; a license from each of them provide alternatives to the blanket license; from blanket licensing deals with music would be required in order for any of the prohibit them from setting up exclusive on-demand services in order to cut direct licenses to be at all useful,” the two users licensing agreements on behalf of licenses with better rates. Or as the MIC group complain in their joint comments. songwriters so that music users and rights Coalition states in its DOJ comments, “This is the ‘free market’ which the music holders can engage in direct licensing; “Rights holders should be free to leave publishers seem most focused on attaining and require the two PROs to offer similar the collective licensing system entirely, — and it is easy to see why. It is one in licenses similarly situation licensees. but they should not be able to ‘game the which they are shielded from the pressures The consent decrees came about system’ by having one foot in and one foot of competition.” because in 1940 ASCAP enjoyed the out.” The problem of fractional licensing “already extortionate rate of 5% of a The DOJ says it is reviewing legacy would be alleviated if a promised joint station’s advertising revenue; and tried agreements with the goal of terminating repertory database from ASCAP and BMI to double that rate for 1941,” the jointly those that cover industries in which finally happens. For their part, the two authored comments from RMLC and relevant circumstance have changed. PROs say the joint database project is due DiMA explain, providing background. While the PROs argue the music industry to be completed in another six months This caused “many broadcasters” to stop has changed dramatically since the consent or so. In the meantime, the two PROs playing ASCAP music and instead rely decrees were established in 1941, music “fail to provide licensees with complete, on public domain music and BMI, which users say nothing has changed in the authoritative information about the songs had started in 1939 and at the time had a last three years except for the creation they license,” RMLC and DiMA complain. limited catalog. of the Music Modernization Act. And “This serves only to increase ASCAP and With that rate increase, the DOJ even that was enacted by Congress last BMI’s leverage in negotiations.” conducted an antitrust investigation and by year containing sections that “assume The music users further decry the March 1941 the consent decree had been the continued existence of the consent PROs and music publishers for speaking signed with ASCAP rate at 2.25% of a radio decrees,” according to the RMLC and publicly about aims to increase licensing station’s rate, or less than half of what it DiMA comments. “They are, in short, an royalty rates to music users, which the joint
Page 7 of 22
[In Brief]
statement condemns, saying, “It is textbook by attaching a self – destruct timer to lationships by dangling jobs and then some-
economics that unchecked price increases the decrees, that is a serious error,” the times punishing the women professionally
attributable to market power will ultimately comments state. “Doing that will only when they refused his advances, numerous
harm consumers by reducing output below make a legislative solution less likely, not accusers told The Associated Press.
the competitive level.” While that may be more. The PROs and music publishers will Regarded as one of the greatest opera
true for some DiMA members — including have no incentive to come to the table to singers of all time, Domingo also is a
digital radio services, on-demand digital craft such a solution if they know that they prolific conductor and the director of the
services and cable television — it ignores will be able to fully leverage their market Los Angeles Opera. The multiple Grammy
that terrestrial radio and network television power by holding out for a few years.” winner is an immensely respected figure in
are free to consumers. Given that ASCAP and BMI routinely his rarefied world, described by colleagues
RMLC and DiMA argue that even with seek to extract supracompetitive prices, as a man of prodigious charm and energy
the consent decrees, the PROs continue to even at the rate courts, “terminating the who works tirelessly to promote his art
engage in monopolistic practices, noting consent decrees would thus have the effect form.
ASCAP’s collusion with songwriters to give of freeing ASCAP and BMI to commit But his accusers and others in the industry
the PRO exclusive rights that resulted in a antitrust violations on a massive scale,” say there is a troubling side to the 78-year-
$1.75 million fine from the DOJ in 2016. As charge the two users groups. The MIC old Domingo — one they say has long been
well, the ASCAP rate court found evidence coalition adds that the consent decrees’ an open secret in the opera world.
of coordination between two of the majors elimination “would be bad for music Eight singers and a dancer have told the
and ASCAP in 2014. In light of that kind licensees everywhere. It would force many AP that they were sexually harassed by
of behavior from the PROs and major of the small businesses we represent to the long-married, Spanish-born superstar
music publishers, the two music users either stop playing music altogether or to in encounters that took place over three
organizations say it shows the consent acquiesce to substantially higher prices decades beginning in the late 1980s, at
decrees are still needed. that would threaten the financial solvency venues that included opera companies
Furthermore, the music users comments of such businesses.” where he held top managerial positions.
suggest that they would also like to see the RMLC and DiMA note the DOJ that just One accuser said Domingo stuck his
two unregulated U.S. PROs, SESAC and two years ago, following an exhaustive hand down her skirt and three others said
Global Music Rights, also placed under investigation, it had concluded “the he forced wet kisses on their lips — in a
consent decrees. current system has well served music dressing room, a hotel room and at a lunch
“The upshot of all this is that without creators and music users for decades and meeting.
the consent decrees, businesses will see should remain intact. Doing away with “A business lunch is not strange,” said
their PRO bills go through the roof, as these essential guardrails for protecting one of the singers. “Somebody trying to
they will have little ability to push back competition would directly harm hold your hand during a business lunch
on whatever price the PROs and larger consumers, and create chaos in markets is strange — or putting their hand on your
publishers demand,” read the comments and the courts alike.” So, again, they pose knee is a little strange. He was always
to the DOJ. “In economic terms, ASCAP the question: What’s changed? touching you in some way, and always
and BMI would extract monopoly rents, Ed. Note: This story has been updated kissing you.”
depressing ... the quality and variety of to reflect that comments were made by the In addition to the nine accusers, a
producers offered to consumers,” leading Radio Music Licensing Committee and not half-dozen other women told the AP that
to a narrow selection of product and less the National Association of Broadcasters. suggestive overtures by Domingo made
music consumed overall. them uncomfortable, including one singer
Finally, the music users wonder whether who said he repeatedly asked her out on
Placido Domingo
the DOJ is simply trying to free itself dates after hiring her to sing a series of
from regulating the industry in hopes that concerts with him in the 1990s.
Accused of Sexual
Congress will enact laws, which would The AP also spoke to almost three
in turn move the rate determinations dozen other singers, dancers, orchestra
Harassment
process away from the Federal courts to musicians, backstage staff, voice teachers
the Copyright Royalty Board. If that’s the and administrators who said they
goal, terminating the ASCAP and BMI witnessed inappropriate sexually tinged
rate decrees would be ineffective and BY ASSOCIATED PRESS behavior by Domingo and that he pursued
counterproductive, the two music users younger women with impunity.
comments state. For decades, Placido Domingo, one of the Domingo did not respond to detailed
“To the extent the Department most celebrated and powerful men in opera, questions from the AP about specific
believes that it can force Congress to act has tried to pressure women into sexual re- incidents, but issued a statement saying:Page 8 of 22 [In Brief] “The allegations from these unnamed Two of the women said they briefly gave full-blown panic attack. I freaked out, and I individuals dating back as many as in to Domingo’s advances, feeling they just kept not answering the phone. He just thirty years are deeply troubling, and as couldn’t risk jeopardizing their careers by filled up the machine, calling me until 3:30 presented, inaccurate. saying no to the most powerful man in their in the morning.” “Still, it is painful to hear that I may profession. In 1991, she said, “I finally gave in and have upset anyone or made them feel One of them said she had sex with him slept with him. I ran out of excuses. It was uncomfortable — no matter how long ago twice, including at the Biltmore hotel in like, ‘OK, I guess this is what I have to do.’” and despite my best intentions. I believed Los Angeles. When Domingo left for a She said she had sex with Domingo that all of my interactions and relationships performance, the woman said, he put $10 on two occasions, at his Los Angeles were always welcomed and consensual. on the dresser, saying, “I don’t want you to apartment and at the Biltmore hotel, where People who know me or who have worked feel like a prostitute, but I also don’t want he left the money on the dresser. with me know that I am not someone you to have to pay to park.” Another young singer at the LA Opera, who would intentionally harm, offend, or The women making the accusations — where Domingo was the incoming artistic embarrass anyone. who said they were emboldened to speak director, said he immediately started “However, I recognize that the rules and out by the #MeToo movement — were calling her at home after she met him at a standards by which we are — and should mostly young and starting their careers at rehearsal in 1988. be — measured against today are very the time. “He would say, ‘I’m going to talk to different than they were in the past. I am Several said they took extreme measures you as the future artistic director of the blessed and privileged to have had a more to avoid Domingo, including asking company’” and discuss possible roles, than 50-year career in opera and will hold colleagues to stick with them while at work she said. “Then he would lower his voice myself to the highest standards.” and not answering their home phones. The and say, ‘Now I’m going to talk to you as Seven of the nine accusers told the AP dancer called her avoidance technique “the Placido,’” she said, and ask her to meet him they feel their careers were adversely bob and weave, the giggle and get out,” — for a drink, to see a movie, to come to his impacted after they rejected Domingo’s and one soprano labeled it “walking the apartment so he could cook her breakfast. advances, with some saying that roles he tightrope.” During one of his frequent visits to her promised never materialized and several One singer who is among Domingo’s dressing room, he admired her costume, noting that while they went on to work with accusers was 23 and performing in the leaning forward to kiss her cheeks and other companies, they were never hired to LA Opera chorus when she first met the placing one hand on the side of her breast, work with him again. superstar in 1988. She said she remembers she said. Only one of the nine women would wiping his saliva off her face from a sloppy, The singer — who was 27 and just allow her name to be used — Patricia wet stage kiss after which he whispered in starting her career — said she felt trapped. Wulf, a mezzo-soprano who sang with her ear, “I wish we weren’t on stage.” “I was totally intimidated and felt like Domingo at the Washington Opera. The Domingo started calling her at home saying no to him would be saying no to others requested anonymity, saying they frequently, she said, although she had God. How do you say no to God?” she said. either still work in the business and feared not given him her number. “He would As the calls wore on, she stopped picking reprisals or worried they might be publicly say things like, ‘Come to my apartment. up the phone. In person, she gave excuses, humiliated and even harassed. Let’s sing through some arias. I’ll give you she said: She was busy, she was tired, The accusers’ stories lay out strikingly coaching. I’d like to hear what you can do she was married. Finally, she said, she similar patterns of behavior that included for casting,’” she said. surrendered to “a feeling of impending Domingo persistently contacting them Whenever he returned to Los Angeles doom” that “I wasn’t going to have an — often calling them repeatedly at home over the course of the next three years, she opera career if I didn’t give in.” late at night — expressing interest in said he was uncomfortably affectionate, She said she went to his apartment, their careers and urging them to meet slipping a hand around her waist or kissing where they engaged in “heavy petting” and him privately under the guise of offering her on the cheek too close to her mouth. He “groping.” professional advice. would enter her dressing room uninvited, In the days and weeks after, she said None of the women could offer she said, which she said she assumed was Domingo repeatedly called her. “I felt like documentation, such as phone messages, to catch her undressed. prey. I felt like I was being hunted by him,” but the AP spoke to many colleagues and The mezzo-soprano said she strenuously she said. friends that they confided in. In addition, tried to avoid being alone with him, while The singer said that once Domingo took the AP independently verified that the also striving not to insult him. But he did over control of casting decisions at the LA women worked where they said they did not take the hint, she said. Opera in 2000, he never hired her again. and that Domingo overlapped with them at She said she agreed to meet Domingo Another singer who worked in Los those locations. about 11 p.m. one night “and then I had a Angeles in the mid-2000s told the AP that
Page 9 of 22
[In Brief]
she already knew of Domingo’s reputation She said she regularly would rebuff him, said he recalled after she “said no to
when he took an extreme interest in her but that his pursuit remained relentless. Domingo, she had the rug pulled out for
career and made sure she always had an It got to a point, Wulf said, that she several years.”
excuse for leaving right after work. would try to hide from Domingo behind a After the hotel incident, the dancer
One night after rehearsal, however, pillar. She also would hide in her dressing said she didn’t work with the superstar for
he caught her off-guard by asking her for room and peek to make sure he was not in several years.
a ride home, she said, which she found the hallway before she left, she said. “There were years when I was a wreck
“ridiculous. Why would Placido Domingo “As soon as you walk away and get away, about it and scared that I’d never be
not have a ride home? But what was I going you think, ‘Did I just ruin my career?’ hired again,” the dancer said. Eventually,
to do?” And that went on through that entire she said, she was “let back into his good
In the car, she said, he put his hand on her production.” graces.”
leg, told her to pull over near his building A dancer who worked with the superstar “What he did is wrong,” she said. “He
and then “leaned in and tried to kiss me.” in several cities said a flirtatious Domingo used his power, he stalked women, he put
She said he asked her upstairs, which she called her late at night on-and-off for about women in positions of vulnerability. People
avoided by saying she had other plans. a decade in the 1990s, leaving brazen have dropped out of the business and been
Several weeks later, she said, Domingo messages that she would listen to in shock just erased because of submitting or not
approached her on a night he knew she was with her husband. submitting to him.”
scheduled to stay late and invited her to his Domingo would ask her to meet him,
apartment to run through an aria. including in his hotel room, but she said
Judge Rules
She went, she said, because “I felt like I she would only go to lunch with him,
have dragged this out and avoided him for always framed as a business meal. Still, she
Grammy Awards
six weeks and he is Placido and he is my said, his hands would wander to her knee
boss and he is offering to work with me on or he would hold her hand or kiss her cheek
Outfit Made Ex-
this role.” in ways that made her uncomfortable.
After he poured two glasses of wine, she She said she would wonder to her
Employee Sign
said, “He sat down at the grand piano and husband: ”’Does he understand the risk
we really did sing this aria, and we worked he’s putting me in, that he could wreck my
Unconscionable
on it. And he gave me coaching and was marriage, wreck my career? ”
very complimentary.” “When you’re working for the most
Deal
But then, she said, “When it was over, powerful man in the opera, you try to play
he stood up and slid his hand down my ball,” she said.
skirt, and that was when I had to get out of One afternoon when they were working
there.” together at the Washington Opera, she said BY ERIQ GARDNER
“I went home and was terrified to go Domingo asked her to meet for lunch at his
back to work,” she said. “I was frozen in hotel restaurant to discuss work. After the The National Academy of Recording Arts
terror for that whole contract.” meal, he said he needed to stop at his room & Sciences, the organization behind the
Since then, she has sung at New York’s before they walked to a rehearsal. Grammy Awards, won’t be able to force
Metropolitan Opera, the San Francisco “He took me up to his room, ostensibly arbitration upon Dana Tomarken after a
Opera and elsewhere, but said she has to pick up his stuff, and he invites me in,” Los Angeles Superior Court judge Mon-
never again been hired to sing at the Los she said. “And he starts hugging me and day came to the rare conclusion that the
Angeles house or with Domingo. kissing me.” employment agreement she signed was
At the Washington Opera, where She pushed him away, she said, and unconscionable.
Domingo served as artistic and then insisted she had to get to rehearsal. Tomarken, 75, was a vp at MusiCares
general director for 15 years, mezzo- “When I clearly was not going to have and the Grammy Foundation, nonprofits
soprano Patricia Wulf said the star would sex with him, he just walked me to the affiliated with the Recording Academy that
confront her night after night with the elevator and went back to his room,” she are charged with providing emergency
same whispered question. said. “The elevator doors opened, and financial assistance to musicians
“Every time I would walk off stage, he I dropped. I just fell to the floor in the experiencing hardship. She spent 25 years
would be in the wings waiting for me,” she elevator and was sweating profusely.” at the outfit and oversaw MusiCares’
said. “He would come right up to me, as A former opera administrator said he signature fundraising event, Person
close as could be, put his face right in my was aware for years that Domingo was of the Year, a tribute that has gone to
face, lower his voice and say, ‘Patricia, do “constantly chasing” the dancer. And a artists including Aretha Franklin, Bruce
you have to go home tonight?’” conductor who is friends with the dancer Springsteen and Bob Dylan.Page 10 of 22
[In Brief]
In February, Tomarken filed a lawsuit that the Recording Academy had become the mediation requirement provisions
against the Recording Academy alleging a “boys club,” with women being denied would not change the court’s conclusion
wrongful termination, sex and age promotions and Portnow leading a “sexist regarding the unenforceability of the
discrimination, and retaliation after she culture” with open hostility toward arbitration agreement.”
voiced concerns about the organization’s the females who worked within the This article was originally published by The
direction. organization. Hollywood Reporter.
Specifically, Tomarken accused Neil Tomarken’s lengthy complaint alleges
Portnow, the chief executive of both the further problems before eventually
Michael Bunnell,
Recording Academy and MusiCares, getting to how she was terminated for late
of abusing his trust and violating payment of a $2,500 pledge. She appears to
Coalition of
fiduciary duties by “using MusiCares as believe the firing was pretextual.
a bargaining chip in Grammy Awards Upon the filing of her complaint, the
Independent
telecast negotiations to promote the Recording Academy commented, “The
Recording Academy’s interests over those accusations have no merit and we will
Music Stores
of MusiCares.” vigorously defend ourselves.”
According to the complaint, the Person That task just became a lot tougher and
Founder,
of the Year tribute was in distress. From much more serious thanks to a decision
2017 to 2018, MusiCares revenue had yesterday by L.A. Superior Court Judge
Announces
declined from over $5 million to barely Christopher Lui.
$1 million as Portnow came under fire for In defense, the Recording Academy
Retirement
comments suggesting that women in the pointed to the employment agreement
music industry needed to “step up” if they that Tomarken signed. The deal had an
wanted more recognition. arbitration provision, which the judge finds
Tomarken, who in the suit claims to be procedurally unconscionable because BY TATIANA CIRISANO
credit for distributing over $60 million it was presented to her on a take-it-or-leave
to more than 125,000 musicians in need it basis after she had worked there for more Coalition’s general manager, Andrea Pas-
over MusiCares’ nearly 30-year history, than a decade. The judge accepts her word chal, will succeed Bunnell in 2020.
was prepared to make a report to board that when she signed the deal, she had Michael Bunnell, who served as the
members on how business decisions that no idea she could opt out. The Recording executive director of the Coalition of
Portnow allegedly made had benefited Academy is also faulted for not explaining Independent Music Stores (CIMS) since
the Academy’s telecast to the detriment to her that JAMS is an alternative dispute 2009, said he will retire at the end of 2019.
of the charitable foundation. In particular, resolution forum and providing her with a Andrea Paschal, CIMS’ longtime general
she was upset that after it was decided the copy of JAMS rules. manager, will succeed Bunnell in January
2018 Grammy Awards would be held in Equally availing Tomarken were her 2020.
New York instead of Los Angeles, alleged arguments directed at the agreement’s “I’m very proud of the work I have
interference had come nixing Brooklyn’s substantive unconscionability. done over the last 11 years at CIMS, and I
Barclays Center as a venue for Person of Tomarken couldn’t demand arbitration hope that I have represented my group of
the Year. Tomarken says that in the midst under her employment deal unless she stores and the independent physical retail
of negotiations, she received a call from mediated her claims first, and to do so, sector in a favorable light,” Bunnell said.
Irving Azoff informing her of an agreement she’d have to request mediation within a “Managing the organization during the
with Portnow — one that resulted in year of learning a potential claim. That recession and all the dramatic changes in
holding the ceremony at Radio City Music altered the statute of limitations, but the the music industry presented many difficult
Hall, an MSG venue. The deal terms for same mediation obligation wasn’t imposed challenges which myself and the CIMS
Radio City were “costly and unacceptable,” on the Recording Academy. In effect, Board worked vigorously to overcome.”
says Tomarken, but allegedly MSG Tomarken said she was required to give Bunnell was a founding member of
wouldn’t sign the Grammys telecast deal a “sneak peek” of her evidence through CIMS, which he established in 1995, to
unless she signed the deal with Radio City. required mediation plus be forced to waive liaise between independent record stores
She felt her hands were tied, and her suit many of her discrimination claims. and record labels. He also ran CIMS-
describes how the Grammy Awards and The judge finds this all unacceptable. owned independent distribution company
Person of the Year both suffered serious Here’s the full ruling, which states, “In ThinkIndie Distribution and served on the
revenue shortfalls in the aftermath. sum, [] there is evidence of procedural board for Record Store Day, which CIMS
And her lawsuit goes beyond financial unconscionability and a larger degree of co-founded.
dealings to also detail Tomarken’s opinion substantive unconscionability. Severing Bunnell said he plans to devote morePage 11 of 22
[In Brief]
time to The Record Exchange, the family- Ramírez, who has worked 25 years in the naming a company that he envisioned
run store he opened with his wife Jil Sevy in music industry, started her career in Sony could be “the next Sony or the next
Boise, Idaho in 1977. as Director of international product in Pepsi” 15 years ago, the ambitious and
“The independent stores remain the 2004. tenacious Orange County, California,
heart and soul of this industry, and it’s In 2007, she headed Day One, Sony’s native has grown SKAM’s roster to over
where the true believers still reside,” booking and management division at the 80 artists, including Taryn Manning,
Bunnell continued. “In an age of instant time, and in 2010 she went on to head Mustard, B.o.B, Swizz Beatz and Cassie.
gratification and digital domination, our regional marketing for the Andean region With his company, Kundu also pioneered a
stores still fight the good fight and bring (Colombia, Peru, Ecuador and Venezuela). successful model for what has become one
art and excitement to communities around In 2018, she launched Sony Colombia’s of the most lucrative and rapidly growing
the world. They all deserve respect from an Artist Export division, coordinating the subdivisions of the music industry: Las
industry that hasn’t made it easy for them overseas releases of artsits like Cepeda, Vegas residencies for open format and hip-
to survive. I hope that by providing them Monsieur Periné and Vicente García. hop DJs. This year, Kundu is expanding
all a platform to share ideas and marketing With Queen Street, Ramírez has come beyond Sin City (where he does much
muscle, the CIMS stores are stronger full circle. The company is named after of his business) with brand-new offices
and more resilient than they were when I “my favorite street in the world, Queen in Miami and Atlanta, Billboard can
arrived. Street in Toronto, where I first started exclusively reveal. In addition to SKAM,
“Stepping into the role as the future working in the music business,” she said. Kundu has worked with artists including
Executive Director of the company feels Meghan Trainor, Fifth Harmony, Future
like a natural transition,” Paschal said. and Khalid at Epic, where he was senior
Spotlight: SKAM
“I am beyond honored to have some of vp promotion under L.A. Reid. Currently,
the best independent record stores in he’s a consultant for Reid’s new venture,
Artists’ Sujit Kundu
the country place their trust in me to be HitCo, and handles radio promotion
a voice for this valuable organization as independently for artists including Tyga
Is Hustling for Lil
well as independent retail as a whole, and and Ciara.
I look forward to all the challenges and Despite coming from practical stock
Jon, Pete Wentz,
opportunities ahead of us.” — his mother is a loan officer, his father
a retired engineer and his older sister
Amber Rose & the
a doctor — Kundu was born a hustler.
Former Sony
“When I was younger, I used to sell
‘Blue-Collar’ DJs
baseball cards or Garbage Pail Kids, or
Music Colombia
do a lemonade stand,” he says. “Music
is just where I ended up, but I could do
BY HARLEY BROWN
Exec María
real estate or sell cars.” The son of Indian
immigrants, Kundu grew up as an outsider
Ramírez Launches
“A lot of people want the end result but in a predominantly Mexican-American
they’re not willing to put in the work to get community at the height of L.A.’s party
Marketing &
there.” crew erain the late ’80s and early ’90s.
At first, Sujit Kundu was skeptical Watching and learning what his neighbors
Consulting Firm
of naming his Los Angeles-based DJ/ were doing, he began putting on raves
talent booking agency SKAM Artists himself. “They kept throwing parties and
— an acronym for Sujit Kundu Artist they kept failing,” he says. “A lot of people
BY LEILA COBO Management that also happened to “sound want the end result but they’re not willing
so shady,” he recalls telling the friend to put in the work to get there.”
Maria Ramirez, who for years headed who suggested it. “Do you think Coke is Because ‘all good Indian kids must be
marketing efforts at Sony Music Colombia going to write a check to scam artists?” But a doctor or a lawyer,’ Kundu started out
in multiple positions, has launched her when this friend added that he could make attending the University of California
own marketing and artist service company. T-shirts with Lil Jon — an actual client, Santa Barbara’s pre-med program. After a
Queen Street Talent is based in Bogota and then and now — on one side, and “I’m a year, he switched majors to business and
has Colombian star and Sony artist Andrés SKAM Artist” on the other, Kundu said, economics, and began booking shows
Cepeda as one of its first clients. “I’m in.” Not only did he print T-shirts, he and handling street promotion for labels.
Ramírez will also continue working with bought advertising on billboards. “There was a quick opportunity to make
Sony Music Colombia as a consultant. Since Kundu tasked his friend with money again and I went right back to it,” hePage 12 of 22
[In Brief]
says. “The first year I didn’t book anything, need somebody on the ground to manage shortsighted because when you need the
then slowly I started to book acts. The first those relationships,” he says. “I’m not benefit of the doubt they might not be
couple were electronic artists that had going in and out of those clubs every there for you.
one or two songs on the radio. Then as Dr. day. Sometimes just by being there, the When you’re tired, go to bed. Because
Dre and Snoop Dogg started to come up, opportunity arises.” Kundu — who still staying up and drinking coffee and doing
I booked hip-hop.” There he met Damion uses a Blackberry and maintains an “inbox all that, you’re just not productive.
Young, aka Damizza, who would go on zero” policy — speaks to many of his clients I believe in the McDonald’s business
to become a legendary record producer on a daily basis on the phone and through model. My office, I own the real estate with
and the director of programming at L.A.’s email, but turns his phone off at night. “If the bank. My studio, I own the real estate
Power 106 and New York’s Hot 97. The two something happens in the middle of the with the bank. In Miami, we’re just going to
of them teamed up to launch Baby Ree, a night, if I don’t answer, they’ll figure it out be an extension of DJ Irie’s office so I didn’t
record label, booking and management and I can deal with it the next morning,” need to do a real estate play there yet. I was
agency, and publishing company with he says. looking at buying an office condo in New
early clients DJ E-Man, Richard “Humpty” This sort of tough-love philosophy York, but when I’m looking at the place
Vission and Bad Boy Bill. extends to new clients Kundu is looking I’m just thinking to myself that I would
Kundu and Young eventually parted to sign as well, which often come to him never be able to sell it because anybody
ways, with the former taking the through word of mouth or are referred to who needs four or five offices would just
management and booking side with him him directly. One recent example is Fall do a WeWork. I’m just having a hard time
in 2004. He began booking DJ Vice and Out Boy’s Pete Wentz, who was looking wrapping my head around New York and
DJ E-Man on weekends at the Hard Rock to get back into DJing and found Kundu the cost.
Hotel’s foundational nightclub Baby’s. By through Steve Aoki’s manager, Matt Colon. As a collective, we’re much stronger
the time TAO Las Vegas came to Kundu to Nick Cannon also recommended Amber than as an individual. I built seven studios
book some SKAM artists for residencies Rose, who was making $7,500 for one-hour and I don’t think anybody would’ve spent
before its official launch, DJ Vice was appearances and needed an agent. “Just the money to build one, but when you put
charging $4,000 a night to play exclusively by cleaning up her business back-end side seven of them together, it makes sense.
at one venue, four times the going rate of it, I got her to 30 [thousand],” he says. As an agency, I’ve kind of realized that
for TAO New York. (It would only be a Rose, in turn, recommended Blac Chyna in order to be successful we need people
few years before another nightclub, Pure, for appearances at strip clubs. “Whereas on the ground, which is why I’m trying to
poached DJ AM for $20,000 a night.) Amber had a plan, Chyna had nothing,” he continue my forward-thinking in opening
Around the same time, Lil Jon, recently says. “I hung up with her and Amber was this Miami office.
of Usher’s “Yeah!” fame, reached out to like, ‘Chyna says you don’t like her.’ I was
Kundu on MySpace. “At the time, there like, ‘I don’t not like her, I just didn’t see a
Verizon Sells Off
weren’t 50 DJ agencies,” Kundu says. business plan.’” (After meeting in-person,
“The CAAs or the William Morrises of the he signed her.)
Early Social-Media
world weren’t in the business. I was kind “We’re the blue-collar workers,” Kundu
of the only game in town for not-electronic says. “We don’t have the big $500,000 a
Darling Tumblr
music. There were maybe one or two night DJs. We’re the ones that are doing the
other guys in town at the time [doing open day-to-day stuff.”
format] and at the time I was probably the SPOTLIGHT
biggest one, and [Lil Jon] decided that he A lot of people want the end result, but BY ASSOCIATED PRESS
wanted to DJ in that world. In my mind that they don’t want to put in the work to get
was like, ‘Oh shit, this is the real deal.’” there. It’s a lot to put together an event. Verizon is selling Tumblr, a darling of early
Now, Kundu maintains a SKAM staff You’ve got to find money to do the party, social media, to the owner of blogging
of eight to 15 in his office in Los Angeles, so you’ve borrowing money, or you get an platform WordPress.
where he’s also built a handful of recording investor, or someone has money. Then you Tumblr is known for its devoted fan base
studios. Two years ago, he launched a have to figure out where to do it and what and has been home to angry posts from
record label, which has since released to do. celebrities like Taylor Swift . It angered
tracks by SKAM artists LA Leakers, Talent is going to come and go, but those many users last year when it banned porn
among others. He’s branching out to agents and promoters and venue owners and “adult content,” which made up a big
Miami primarily to better-serve his clients are going to remain consistent probably part of its highly visual and meme-friendly
in that city, including DJ Irie, and get a longer, so you’ve got to be really upfront online presence.
foot in the door of its lucrative nightlife about everything. A lot of agents now, they But well before that, the site has already
scene. “It’s so competitive now that you just go for the money and that’s somewhat been drifting in the face of competitionPage 13 of 22
[In Brief]
Warner Records
from Facebook and its Instagram service Here’s an updated look at the longest, as
and from Google’s YouTube. Tumblr has well as shortest, Hot 100 hits all-time (as
Names Jason
also been overshadowed by Twitter. researched by the invaluable Paul Haney of
Verizon got Tumblr through its 2017 Joel Whitburn’s Record Research):
Heller Senior VP
purchase of Yahoo . Yahoo had bought The Longest Hot 100 Hits
Tumblr for $1.1 billion in 2013, but ended (10:21) “Fear Inoculum,” Tool, No. 93 peak (to
Business & Legal
up writing off much of its value. Terms date), 2019
of Verizon’s sale to WordPress owner (9:57) “Blackstar,” David Bowie, No. 78
Affairs
Automattic weren’t disclosed, though peak, 2016
reports indicate it is a fraction of what (9:30) “Better Place to Be (Parts 1 & 2),”
Yahoo paid. Harry Chapin, No. 86, 1976
Verizon had hoped to create an ad (8:55) “November Rain,” Guns N’ Roses, BY TATIANA CIRISANO
business to compete with Google and No. 3, 1992
Facebook but its media business ran into (8:37) “American Pie (Parts I & II),” Don Warner Records has appointed Jason Hel-
trouble. It has cut jobs and sold some Yahoo McLean, No. 1 (four weeks), 1972 ler senior vp of business & legal affairs, the
properties, including the photo-sharing site The Shortest Hot 100 Hits label announced today (Aug. 13).
Flickr and Polyvore, a fashion and collaging (0:45) “PPAP (Pen-Pineapple-Apple-Pen),” Heller joins Warner from RCA Records,
site that was then shut down. Piko-Taro, No. 77, 2016 where he worked with the likes of Childish
(1:02) “Little Boxes,” The Womenfolk, No. Gambino, Khalid and Miley Cyrus as vp,
83, 1964 business & legal affairs. In his new New
Tool’s ‘Fear
(1:17) “Some Kind-A Earthquake,” Duane York-based role, he’ll report to Warner
Eddy His Twangy Guitar and the Rebels, Records executive vp and head of business
Inoculum’ Breaks
No. 37, 1959 & legal affairs Julian Petty.
(1:19) “Forward,” Beyonce feat. James “Jason is a tremendous addition to
Record as Longest
Blake, No. 63, 2016 our new team at Warner Records,” Petty
(1:20) “What I’ve Been Looking For shared. “Over the past 17 years, both in
Billboard Hot
(Reprise),” Andrew Seeley & Vanessa Anne the label world and in private practice, he’s
Hudgens, No. 67, 2006 helped forge agreements with artists at
100 Hit & First to
“Fear” additionally debuts at No. 20 every level of development, from up-and-
on the Mainstream Rock Songs airplay coming talent to superstars. I’ve negotiated
Run More Than 10
chart, with rock radio historically known against him on several deals throughout
for playing long songs (such as “November the years and witnessed his legal prowess
Minutes
Rain” and “American Pie,” as noted firsthand. Jason has a fantastic reputation
above). On the all-rock-format Rock across the music and legal communities,
Airplay chart, the track starts at No. 28 and I’m very happy that he’s come on
BY GARY TRUST with 2.6 million in first-week audience, board to help us make Warner the place
according to Nielsen Music. It opens at where artists’ rights are fiercely protected
The song passes David Bowie’s 9-minute, No. 2 on Rock Digital Song Sales and No. and their dreams are realized.”
57-second-long ‘Blackstar.’ 8 on the all-genre Digital Song Sales chart Before joining RCA in 2007, Heller also
Songs are noticeably succinct in 2019, with 17,000 downloads sold and drew 3.5 served as an associate at Cahill Gordon
with, for instance, 19-week Billboard Hot million first-week U.S. streams. & Reindel LLP, where he specialized in
100 leader “Old Town Road” by Lil Nas X The song is Tool’s first new track in 13 intellectual property law and represented
the shortest No. 1 hit by song length since years, as the band has made all its previous major record companies and publishers.
1965. albums available on streaming and digital A graduate of Yale University and
Still, the record for the lengthiest Hot services for the first time. Columbia Law School, Heller is the latest
100 hit by run time is rewritten this week, addition to the rebranded Warner Records,
as Tool’s “Fear Inoculum” debuts at No. 93 with its evolution led by co-chairmen
on the Aug. 17-dated tally, becoming the Aaron Bay-Schuck and Tom Corson.
first song in the chart’s history to make the “I’m thrilled to be joining Warner
list with a time exceeding 10 minutes. At Records at this transformational moment
10 minutes and 21 seconds, it bests David in the company’s history,” Heller adds.
Bowie’s “Blackstar,” which, running 9:57- “Tom and Aaron are developing an
long, reached No. 78 in 2016. incredible roster and building on the label’sYou can also read
