On the last night of the Music Biz conference in Atlanta on Thursday (May 15), the Music Business Association held its annual Bizzy Awards dinner honoring industry executives, including the late Cindy Charles, who was posthumously bestowed with the organization’s Presidential Award. Charles tragically died in a traffic accident in the Netherlands in October.
In announcing the award — presented to individuals or organizations that have contributed greatly to the overall success of the music industry — Music Biz president Portia Sabin called Charles, who headed the Twitch music team, “a no-nonsense, get-it-done person who loved the music industry…She inspired people to tackle important issues head-on and solve problems the right way. We wanted to give her the Presidential Award posthumously to celebrate all she did for our industry, for women in music, and to create a space for the many people she touched to remember her life and be a part of her legacy.” Charles’ husband and family accepted the award in her honor.
The event was hosted by Lecrae, an artist with nearly 4 million album consumption units accumulated in the U.S., as well as a business executive who founded and runs Reach Records, an Atlanta-based label with a roster that includes himself, Andy Mineo, Trip Lee, Tedashii and Hulvey. In serving as the moderator, Lecrae kept things moving along. Early in the evening, he joked about his dual role as an artist and executive, saying he had to negotiate with himself in signing with his label: “I asked myself for an advance I couldn’t afford,” he quipped.
At the end of the dinner, Lecrae reminded music executives of their responsibilities to the music fans. “I want to share something with you,” he said. “Before I was an artist and an executive, I was a kid on the block hanging with my teenage uncle, who was senselessly gunned down. But music back then spoke to me, and music became my lifeline. As an artist, I get first-hand feedback, so I know every song you fight for in marketing is building a bridge to a kid like I was. So, whatever you do in the music business, whether it is working in metadata, being a lawyer, or at a label, it matters. Remember, you are not just in the music business, you are in the people business.”
Moving back to the awards, most of the categories are contests — each with 3 nominees, with the awards handed out to the winners on Wednesday night (May 14). First up, Colleen Theis won the Leading Light Award, which is presented to a company or executive that has supported their staff via internal initiatives aimed at improving mental health, wellbeing and work/life balance. Meanwhile, the Frontline Innovator award went to Grimey’s Music, an independent record store in Nashville that was cited for showing exceptional inventiveness and ingenuity in store practices during the past year in its interactions with consumers. Meanwhile, the Marketing Superstar Award went to Rhymesayers Entertainment for its campaign around the late MF Doom‘s Mm..Food album.
Prior to the convention, the organization announced that it would present DDEX (Digital Data Exchange) with its Impact Award, with Sabin noting that the organization “has been at the forefront of tackling issues around education, effectiveness & use of music metadata since the early days of music downloads & streaming.” Also at the conference, Elysha Miracle, Concord’s senior vp of rights data management, scooped up the Maestro of MetaData Award.
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In other awards, Downtown Music Publishing president Emily Stephenson received the #Next Gen — NOW One To Watch Award, an honor that goes to an executive under 40 whose work has been exceptional, innovative and stands out in its contribution to the industry. Elsewhere, Jerry Brindisi of Columbia College Chicago picked up the award for Music Business Educator of the Year, which celebrates an educator who inspires students to enter the music business.
Finally, Equal Access was presented with the Agent of Change Award for the organization’s efforts “to empower artists and managers from underrepresented demographics in country music by providing financial resources, training and networking opportunities,” according to its website.
Conference capsules:
Record Store Day Town Hall: During this event, indie store owners and label executives wrestled with the right amount of releases for Record Store Day (RSD), with Carrie Colliton of the Dept. of Record Stores, who co-manages the event for the U.S. music industry, noting, “We get a lot more than 500 submissions” for the RSD list. But after surveying U.S. stores participating in the event, “We think 350 titles is the sweet spot,” she added. That amount can provide a good representation, covering different genres and generations. On the latter topic, Colliton noted that “This year, there were a lot of younger customers, but that is the result of a five year campaign” to get labels to release RSD titles that appeal to the younger generation — because the older male music fans who used to dominate the RSD customer base might not want to leave the house for the event as they get older.
This year, a lot of young females came out for RSD, thanks to releases from the likes of Gracie Abrams, Taylor Swift and Charlie xcx. In fact, Doyle Davis from Grimey’s New and Pre-Loved Music in Nashville noted that one of his older customers, who was always first in line every year, was about 20th in line this year even though he showed up at least a day early — supplanted at the front of the line by the younger consumers who are now embracing RSD. Davis reported that the older customer, upon seeing those who had beaten him in line, said, “I am going to have to up my game next year.”
Beyond the younger generation, labels have also been cooperative in releasing titles in genres beyond rock. Even with that, said Tobago Benito of DBS Sounds in Riverdale, Ga., “We need more R&B for RSD.” When pushed to be specific, he asked for the re-release of more 1990s R&B titles, especially given, as someone else pointed out, that those titles likely never had a vinyl release in the first place.
Looking ahead, Colliton noted that the keynote for the RSD coalitions’ annual “Summer Camp” will be given by legendary artist/producer Todd Rundgren, so “expect to see badges that say, ‘Hello It’s Me,’” the title of one of Rundgren’s famous tunes. Further ahead, 2027 marks the 20th anniversary of RSD, and Colliton invited all in attendance to start brainstorming for that event to make it even more special.
Getting Played, Need To Get Paid: During a panel on streamlining song registrations, Dae Bogan, head of third-party partnerships at the Mechanical Licensing Collective (MLC) — who was the founder of the company TuneRegistry earlier in his career — noted that at one point, besides the Harry Fox Agency and whatever performance rights organization a music creator was affiliated with, a simple 14-track album would have to make about 140 registrations when you considered such services as Gracenote, Luminate, and international collection management organizations. “That means that if you had 10 albums, it would require 1,400 registrations,” Bogan said. It was noted during the panel and other seminars that nowadays, there are a lot of companies and services that help make song registration easier, though it still takes a lot of work.
What’s The Payoff? A panel for music industry startups pointed out that unless your company is going to provide at least a 10-times return on investment, venture capitalists are not interested, and you might be better off having a corporate partner or “an angel investor who are into what you are doing,” said Sound Media Ventures founder/CEO Shachar Oren. But, added Influence Partners’ Sun Jen Yung, angel partners and family offices also want big returns. On the other hand, she continued, private equity will take a chance and make an investment in a startup with a payoff that is less than a 10-times return on investment, if the startup is producing cash flow already.
Here’s What Investors Look For in Music Startups: For one, investors like startups that are less risky, so “if you have validated your model and have started generating revenue, that is more attractive to us,” said Oren. That was echoed by Yung, who said, “It is really hard to have a company without a revenue model.” Artes Management principal Tracy Maddox backed up those observations by adding, “Pre-revenue, there are only two names that will invest in your start-up — and their names are Mom and Dad.” Moreover, Yung added, investors also find that startups that offer a renewable payout, not just a one-time payment, as an attractive investment. Secondly, investors look for technology that will not only solve an industry problem but have scalability, meaning it can solve problems for multiple industries, according to Maddox. During another seminar, Bogan reminded technology companies that “interoperability” is a desirable feature.
Here’s What Investors Avoid: “We are staying away from investing in something that [merely] enhances what has been done before,” said Oren, while Rock Paper Scissors CEO Dmitri Vietze joked that investors stay away from any companies spelled with the letters “N,” “F” or “T.”
Other Ways to Corral Piracy: During a panel on what adult entertainment’s dealings with piracy can teach the music industry, Digital Rebelle’s Magali Rheault noted that the adult film genre was “the most pirated…at the beginning” of the digital revolution. While some in the industry tried to fight piracy through lawsuits, it soon became clear that it had to work its way around it, and so most companies hit upon the strategy of using piracy “as a funnel” to ad-supported monetization, she said.
What’s Happening In Catalog Acquisition? In a panel titled “Major Money Moves,” City National Bank’s Denise Colletta noted that the trend of asset-backed securitizations (ABS) is picking up steam. “We are finding a lot of our clients are looking at [ABS deals] for a number of reasons, including the higher advance rate” they provide, she said. (Financial executives have noted to Billboard that when traditional loans are provided to close a deal, the maximum amount of leverage involved is about 45%, while a deal financed with an ABS component may allow for up to 65% leverage. “We have led 3 asset-backed securitizations in the past 12 months,” Colletta said, adding, “We may see seven to ten [ABS deals] this year.”