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- 123.7 MILLION reasons Usher DID NOT get paid - Edition 010
123.7 MILLION reasons Usher DID NOT get paid - Edition 010
Mauricio Ruiz
February 15, 2024
Welcome to The Manager’s Playbook, my personal newsletter where I share insights, tips, and strategies for artist managers on how to navigate through the music business.
Ruiz’s Letter:
“Repetition is The Mother of All Learning”
Welcome to our milestone 10th edition.
As we approach 1000 subscribers (a major milestone) with a crazy 75% open rate (I’m told that’s impressive), I just want to say I’m incredibly grateful. Your continued support in sharing our newsletter filled with music industry insights is appreciated. I hope you continue to gain value from this weekly newsletter.
Please help us reach even more aspiring artist, managers and execs by clicking the share button below and circulating with your network.
Thank you.
STRATEGY
How Usher Made the Super Bowl’s Best Play
This past Sunday many of us watched the 49ers and the Chiefs go at it for the Lombardi trophy on one of the biggest nights in sports: The Super Bowl.
It’s a night that demands the best from everyone involved — the players, the coaches, and even the fans.
And of course, who can forget the halftime show, one of the biggest entertainment performances of the year. In fact, the biggest. A record setting 123.7 million people tuned in for it. Another element of the night that calls for excellence.
Not just excellence.
Perfection.
On Sunday night we witnessed Usher, one of the greatest RnB acts in history take the stage and deliver an all-star performance. As incredible as it was, it’s the business play behind it that is truly worth discussing.
Let’s take a closer look..
Here’s the timeline of the last few days
Tuesday, Feb. 6th - Usher announces his Past Present Future tour
Friday, Feb. 9th - Usher releases his album “Coming Home”
Sunday, Feb. 11th - Usher delivers a standout performance at Super Bowl 58
Monday, Feb 12th - Usher announces that he’s added new dates to his upcoming tour.
Notice anything in particular here? It’s actually quite strategic.
If you can recall, Usher was announced as the Super Bowl halftime show act back in September 2023. Meaning that he and his team had ample time to formulate a rollout strategy for the music and route a headline tour.
Usher wasn’t going to let the momentum go to waste, though. Days after his Super Bowl Halftime performance was locked in, Marx {Usher’s WME partner} began plotting out an arena tour.
Knowing that he would have the entire world’s attention on him come the Super Bowl, the smart play, as they’ve now demonstrated, would be to release the album around that time. So they waited patiently, planning and strategizing.
Now remember, it’s Usher we’re talking about.
Where newer acts may not have been able to get away with this because of a need to release more frequently, Usher, in contrast, can operate on his own timing.
However, when the music does release, his team understands that the work has just begun. They were not going to let the Super Bowl exposure go to waste.
Despite the huge viewership, the last five artists to play the Super Bowl halftime show have not announced headlining tours after their performance. And those who did, like Justin Timberlake in 2018 and Beyonce in 2017, didn’t have any tickets on sale so quickly after the event.
We all know there’s going to be a lot of exposure for the halftime act. The question is, how do you monetize it as much as possible? We know that the streams and album sales will go up, but what’s the bigger play here?
As a professional everything must be approached with strategy and structure. Luck can happen, but anyone who has ever seen repeated success does not wait or blindly hope for opportunities, they create them.
In an attention driven economy, there are three skills that will completely change the trajectory of your career regardless of profession or how far you are into it:
Garnering attention
Monetizing it
Leveraging it into more attention
In Usher’s case, he’s cemented himself as (arguably) the greatest RnB act of all time. There aren’t many opportunities for exposure that are worth chasing.
When they do arise, it’s important to be strategic and be aware that exposure simply offers us a higher vantage point to connect with our audience and deliver our offerings.
Knowing that on this night, the entire world would be watching him, in what would be his single biggest performance of all-time, what did Usher and his team opt to do?
Parlay it into his biggest tour of all-time.
PAY ATTENTION
How will Kanye West Handle the Lack of DSP support?
Fairly well it seems. Vultures expected to debut #1 with 140,000 album equivalent units sold.
Beyoncé Teases Texas-Themed “Act ii” With Two New Tracks
Beyoncé surprised us with a teaser video and two new tracks, "Texas Hold 'Em" and "16 Carriages," following the debut of her Verizon commercial during Super Bowl LVIII. Great timing and execution on her part.
Based on the teaser it looks like we may be in for a Country album — an "act ii" project set for release on March 29. In the last few editions we’ve covered the recent, rapid rise of Country music. It’s likely that many other artists will follow suit in making their own Country songs as well.
The songs quickly climbed the charts, with "16 Carriages" reaching #1 on iTunes and #13 on Apple Music, and "Texas Hold 'Em" ranking #2 on iTunes and #10 on Apple Music.
Happy to mention the Canadian talent that contributed to these records: Lowell, Bülow, and Nathan Ferraro, a Toronto hometown Songwriter who just landed a massive credit to his name.
INDUSTRY NEWS
The Economics of Music Streaming, From Spotify
This feature article from Spotify is worth checking out. It delves into the dynamics of the streaming economy, particularly focusing on Spotify's role and revenue generation within the music industry. Some key points:
Revenue Generation: Spotify has paid out nearly $40 billion to the music industry as of 2022. It accounts for over 20% of global recorded music revenue.
Publishing Industry: Spotify paid out over three billion dollars to publishing rights holders in the past two years, surpassing revenue from CDs and downloads.
Sony Music Acquires Major Stake in Michael Jackson Catalog, Valued at $1.2 Billion-Plus
Sony Music acquired a 50% stake of MJ’s publishing and masters. With his entire catalogue valued at over $1.2B, this means Sony Music paid roughly $600M to his estate. Beyond the controversy, this deal marks one of the largest acquisitions for a single artist's assets to date.
Queen Is Finally Close to Selling Its Catalog
Queen is in advanced talks to sell its music catalog, valued at $1.2 billion, including recorded music, publishing, and ancillary revenue from sources like the film "Bohemian Rhapsody" and merchandise.
If that doesn’t tell you how big they are, Queen's estimated annual revenue from publishing and masters amounts to about $45 million, with royalties totaling around $50 million annually.
Spotify Saw a Decline in the Joint Market Share of Major Record Companies
In 2023, Spotify saw a decline in the joint market share of major record companies (Universal, Sony, Warner) and Merlin, dropping below three-quarters for the first time. Conversely, the market share of recordings from DIY aggregators and indie labels increased to an all-time high. The major labels aren’t going anywhere, but this is a clear sign of the times. Indie artists and labels are taking the game into their hands.
WHAT WE’RE WATCHING
Another Reminder to Bet on Yourself..
If you needed another reason to go all-in and bet on yourself, check out this great take from Russ:
Russ appearance on the Flagrant podcast is filled with gems. Some controversial parts, but he speaks very candidly about the entire music business and his personal journey. It’s worth the watch. Host, Andrew Schulz, as an outsider to the music business, also asks a lot of great questions that help break down some music industry myths as well.
It’s a 4 hour long pod so find some down time to take it all in.
CHECK THIS OUT..
In Theme With the Super Bowl Recap..
Contrary to popular belief, the halftime show acts do not get paid by the NFL to perform. In fact, the acts often put up their own money to take their performance to the next level. Check out the clip below for more details.
WRAPPING UP..
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Bio
I’m Mauricio Ruiz, the Founder/CEO of 8 Til Faint, a talent management agency with over 5 billion audio streams worldwide. Our past and current clients include Grammy nominated, Juno Award winning multi-instrumentalist and singer/songwriter Jessie Reyez, Marley Bleu, and more. I am also the Co-Founder of Mad Ruk Entertainment, a content agency with over 3 billion long form video streams worldwide. Our client list includes The Weeknd, Eminem, and Celine Dion, along with renowned brands like Nike, Pernod Ricard, Canon, and the NBA.
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