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.20
With the exception of one-time punk band bassist and Fugazi
fan Beto O’Rourke, Bernie Sanders is the only top Democratic
presidential candidate to have released an album (We Shall
Overcome, a mix of spoken-word tracks and folk songs that he sold in Vermont
for $10 a copy in 1987). But does that mean he supports the kind of legislation
that benefits music creators and the industry? As fall’s four debates loom, here’s
where some of the contenders most likely to stay in the race stand on the issues
that the music industry is most concerned about.
26
On tap for Netflix binging this fall:
Rhythm + Flow, a rap competition judged
by Cardi B, Chance the Rapper and T.I., and Dolly
Parton’s Heartstrings anthology series.
INDUSTRY-FRIENDLY
CANDIDATES TAKE
THE DEBATE STAGE
This fall, outspoken Chicago
MC (and Bernie Sanders
supporter) Vic Mensa will
release his debut album
with political-punk group
93PUNX. He’ll also keenly
watch the candidates at
the upcoming Democratic
debates, which he says aren’t
so different from rap battles:
“Just because somebody
loses, that doesn’t make their
opponent better.” An electric
performer himself, Mensa
has some advice for the
presidential hopefuls.
Come Stage-Ready
“Confidence and platform
[matter], but also delivery. It’s
a difficult arena; every time
you speak, somebody’s trying
to pull you down and cut you
off. I’m looking for people
who can be poised in those
situations and stand firm
and strong without being
disrespectful.”
Stay Accountable
“It’s easy to say the right
things. Regardless of what
people think of me, they
know that when I support
something I’m willing to put
myself on the line for it. So
I’m going to be impressed by
someone actually willing to
sacrifice.”
Bring The Noise
“Be more clever than Trump,
and don’t succumb to the
nastiness. Laugh it off. But
also expose him, embarrass
him. Go hard! I mean,
Trump’s so sensitive that you
really just have to hit those
soft spots.” —MAX CEA
- WHO WILL BREAK OUT?
“Lil Tecca has his very young finger on the zeitgeist pulse of what
crossover urban music looks and sounds like now — beats, hooks and
melodies all hitting hard at once. And Pop Smoke embodies everything
that can be interesting in hip-hop right now. His ‘Welcome to the Party’
is just about the coolest song I’ve heard all year.”
—DAVID JACOBS, ATTORNEY, GRUBMAN SHIRE MEISELAS & SACKS
Lil Tecca
(left) and
Pop Smoke
Mensa
Vic Mensa Goes Punk — And Even More Political
JOE BIDEN
The former vice president has been backing copyright laws since 1976, when he voted to significantly extend
the duration of protection. In 2002, as record labels were suing file-sharing services, Biden added his name to
a letter suggesting that the Department of Justice should “prosecute individuals who intentionally allow mass
copying from their computer over peer-to-peer networks.” That’s no longer so relevant, but the music industry
considers him an important ally.
BERNIE SANDERS
Rebellious rappers and rockers from Killer Mike to Neil Young supported Sanders’ 2016 campaign, and his
positions on raising the minimum wage, health care and college for all, and equal pay for women still resonate
with populist artists. (“Vote for Daddy Bernie, bitch!” Cardi B declared recently.) But it is unclear whether
Sanders would look out for musicians’ interests more directly.
—STEVE KNOPPER
ELIZABETH WARREN
Like every U.S. senator, Warren didn’t oppose the Music Modernization Act, but she has been largely silent
on exactly how she would support artists and rights holders. She does want to split up Big Tech, particularly
Amazon, Google and Facebook — as well as Apple. “You’ve got to break it apart from their App Store. It’s got
to be one or the other,” she said earlier this year. Labels have feuded with Google-owned YouTube and Apple
through the years, so this could win Warren some industry support.
KAMALA HARRIS
During her term as California’s attorney general, her office sentenced two men to 300 days in jail for selling 800
bootleg CDs to undercover agents. Later, Harris pursued criminal charges against three Bay Area brothers who
ran a website from which users could stream pirated material. “It is a serious crime that harms one of California’s
most important economic engines: our entertainment industry,” she said at the time. Still, she also supports
Silicon Valley. (As president, she might hesitate to break up tech giants, which are among her donors, too.)
S
T
R
O
N
G
B
I
Z
B
E
T
W
A
I
T
A
N
D
S
E
E
27
David Byrne retools
his theatrical American
Utopia concert tour for a 15-week
Broadway run starting Oct. 20.
28
From the sound of first single “Dear
Diary,” Republic signee and Hamilton
breakout Anthony Ramos’ The Good and the
Bad, out Oct. 25, will be a bluesy treat.
29
Folk-rock singer Michael Kiwanuka
— known for the Big Little Lies theme
song, “Cold Little Heart” — gets deep on his
third album, Kiwanuka, due Oct. 25.
VIVENDI SELLS
SOME OF UMG
21
French conglomerate
Vivendi announced
on Aug. 6 that it
is in “preliminary
negotiations” with
Chinese technology giant Tencent to sell 10%
of Universal Music Group. The deal would
value UMG at 30 billion
euros ($33 billion),
a confirmation that
industry growth, driven
by Spotify, Apple Music
and other subscription
services, has boosted the
value of music after years
of decline.
Judging from an all-staff memo by UMG
CEO Lucian Grainge, the company is already
looking ahead. “The possibilities to accelerate
and broaden our strategy are exciting,”
Grainge wrote. A deal could be a win-win:
UMG would get a partner in China, while
Tencent’s products, from streaming music
to video games, could more effectively use
UMG’s music.
If the sale goes through, another 30%-40%
of UMG could still be available. (Tencent has
an option to buy another 10%.) On the day of
the announcement, David Marcus of Evermore
Global Advisors, a Vivendi shareholder,
tweeted that Tencent is “a great partner”
to reach Asia, “although we would not be
surprised to see others come into the bidding.”
Vivendi could also find a private equity bidder
to wait for a UMG spinoff and subsequent
public stock offering. Or it could seek another
strategic investor.
The price of Tencent’s investment surprised
some, however. A $33 billion valuation is a
lofty 32 times earnings before interest, taxes,
depreciation and amortization. The multiple
is not outlandish for a high-growth company
in an exciting market, and stocks are currently
expensive by historical measures. But share
prices are starting to take into account future
risks for the economy, including the U.S.-China
trade conflict, China’s 27-year-low quarterly
growth rate and slowing growth elsewhere.
Investors may also believe $33 billion is too
high. In the past nine months, UMG has been
valued at $40 billion by Vivendi CEO Arnaud
de Puyfontaine and $42 billion and $50 billion
by analysts at Morgan Stanley and JPMorgan,
respectively. But since Aug. 6, Vivendi’s peak
share price has given the whole company a
market value of about $37 billion, which doesn’t
jibe with the valuation the Tencent transaction
gives UMG. The remainder of Vivendi would
have to be worth just $4 billion, even though
it generates one-third of Vivendi’s earnings.
Current investors could think Tencent is
getting a good deal and are underestimating
Vivendi. Or they accurately value Vivendi, which
puts UMG’s standalone value at well under
$33 billion. Either way, a Tencent deal would
give the market a reference point for the future.
—GLENN PEOPLES
Grainge