Billboard - USA (2021-02-20)

(Antfer) #1
Wallen’s recording contract “in-
definitely,” though it wouldn’t explain
what that meant in practical terms;
the label continues to rake in over
$1.5 million a week from Wallen’s sales
and streaming, Billboard estimates.
A source tells Billboard the label has
halted all activity around Wallen, in-
cluding promotion and planning what
was expected to be a 2021-22 arena
tour. But a prominent entertainment
lawyer who requested anonymity says
a “suspension” is a way to “kick the
can down the road” without a clear
legal meaning. “It would seem to mean
that they’re waiting to see whether the
public is satisfied with the steps that
have been taken to rectify the situa-
tion,” says the lawyer.
Big Loud is in the unusual position
of also acting as Wallen’s manage-
ment and publishing companies, and
the status of those deals is unclear.
Republic Records has not yet taken
action publicly beyond posting on so-
cial media that it “fully supports Big
Loud’s decision.” Both labels declined
to comment for this story.
Labels in such situations have
several options: They could stop

promoting an artist’s work, or even
drop the artist instead of picking up
another option on his or her contract.
(Labels typically have six months to
a year after an album is released to
make this determination.) The most
severe step would be to entirely pull
an artist’s recordings from stores and
streaming services.
“In the end, labels must make a
business decision,” says Janet Come-
nos, CEO of entertainment insurance
provider SpottedRisk, which offers
“disgrace insurance” that reimburses
companies and brands when celebri-
ties they partner with are involved in
scandals. “Is Wallen profitable enough
to outweigh the legal fees, PR costs
and incalculable reputational damage
of keeping him on their roster?”
More labels could also add safe-
guards to recording contracts known
as morality clauses, which are com-
mon in brand endorsement deals.
Most stipulate an agreement can be
terminated if an artist commits an act
of “moral turpitude,” which can be
anything that violates “community
moral standards” and brings “public
disrepute” to the company.

KANE BROWN LAUNCHED SONY MUSIC NASHVILLE JOINT VENTURE 1021 ENTERTAINMENT. FORMER UNIVERSAL MUSIC PUBLISHING GROUP CHIEF ZACH HOROWITZ PARTNERED IN LATIN PODCAST FIRM PITAYA.


“These clauses are getting broader
and broader, especially since the
#MeToo movement,” says Fox Roth-
schild partner Heidy Vaquerano, in
response to changing circumstances.
“The fans will not only attack the
artists but also the company and push
them” to sever ties with the talent.
The Black Music Action Coali-
tion, in a Feb. 5 letter, applauded the
country music industry’s “swift and
sweeping” efforts to condemn Wallen’s
actions, and Fram hopes the artist will
“continue to help that same group of
fans understand the reason behind the
industry’s swift action against him.”
That decisive condemnation has also
set a new precedent for how quickly
labels and other music companies are
expected to react to such situations in
the future, says Smith.
“Every time a company acts to
respond to that public pressure, the
bar is now raised,” he says. “The next
time that an artist finds themselves
in a situation, the label will be judged
against the new timeline.”

Additional reporting by Ed Christman,
Melinda Newman and Claudia Rosenbaum.

Marc Anthony remembers the
legendary bandleader, pro-
ducer and multi-instrumen-
talist who in 1964 co-founded
Fania Records, which became
so influential that a Fania All-
Stars concert sold out Yankee
Stadium in 1973. He was one
of the leading architects
of salsa music and helped
launch the careers of Willie
Colón, Héctor Lavoe and
Ruben Blades. Pacheco died
Feb. 15, at the age of 85.

JOHNNY’S MUSIC WAS
the soundtrack of my life
growing up in New York, and I
had the opportunity to get to
know him well. He welcomed
me, my music and what I had
to offer with arms wide open.
His willingness to fuse many
musical languages created this
beautiful music the world now
knows as salsa. It definitely set
the groundwork for the music
that I — and countless others
— do today. Johnny Pacheco
created a movement.
One of the many things I
cherish of our times together
was his humor, his ability to
make you laugh. He was a
storyteller on- and offstage,
and one of my heroes: a
musical genius and maestro
de maestros.
—AS TOLD TO LEILA COBO

JOHNNY


PACHECO


1935-2021


Morgan Wallen was pulled from radio and official streaming
playlists when a video was leaked showing him using a racial
slur — but his on-demand plays grew, and his sales soared

P

ER

C

E

N

TA

G

E

AIRPLAY Daily plays on Billboard Country Airplay chart reporters
STREAMS U.S. daily on-demand song streams

SALES U.S. daily combined album and single sales

600

500

400

300

200

100

0

-100
2/1 2/2 2/3 2/4 2/5 2/6 2/7 2/8 2/9 2/10 2/11 2/12 2/13 2/14

Video
Leaks

AIRPLAY
STREAMS
SALES

FRA

NS^ S

CHE

LLE

KEN

S/RE

DFE

RNS

/GET

TY^ I

MAG

ES

20.73B


0.2%

TOTAL ON-DEMAND STREAMS
WEEK OVER WEEK
Number of audio and video on-demand
streams for the week ending Feb. 11.

121.3B


2.7%

TOTAL ON-DEMAND STREAMS
YEAR OVER YEAR TO DATE
Number of audio and video
streams for 2021 so far over the
same period in 2020.

15.29M


0.3%

ALBUM CONSUMPTION UNITS
WEEK OVER WEEK
Album sales plus track-equivalent
albums plus streaming-equivalent
albums for the week ending Feb. 11.

Dropped But Still On Top


MARKET WATCH

Source MRC Data (Feb. 12-14 sales according to initial reports to MRC Data)

24 BILLBOARD • FEBRUARY 20, 2021
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