Social Media Influencers’ $100 Million SEC Charge Hints at Tighter Enforcement Going Forward
A number of social media influencers were charged on December 14 with fraud related to a “pump-and-dump” scheme which unfolded across multiple social media platforms. But securities attorneys think the case’s use of additional resources and more technical agencies suggest a new level of collaboration in the social media enforcement space on behalf of the U.S. Securities and Exchange Commission. According to the criminal complaint filed in the Southern District of Texas District Court, defendants Perry Matlock, Edward Constantin, Thomas Cooperman, Gary Deel, Mitchell Hennessey, Stefan Hrvatin, and John Rybarcyzk used their massive social media following to coordinate the acquisition of shares, promote the shares to their followers, and then dump those shares for “substantial profits.” 

(Source: LAW.COM, December 14, 2022) 

 

2022 Year-End Biz Analysis: Record-Setting Year Marked by Bad Bunny, Ed Sheeran & Stadiums
“Drinking from a fire hydrant,” the live industry’s mantra in 2022, was heard often and invoked constantly for good reason: The tsunami of shows, festivals and live events flooding the market were mostly — but not always — met with voracious demand amidst myriad impediments. The year, we now know, was not a “return to normalcy,” far from it; rather, it was a historic, record-setting high-bar of a year returning with astronomical grosses, ticket sales and average prices. Far more was accomplished with far less, which made the year’s successes even more profound. 

(Source: Pollstar, December 12, 2022) 

 

Bored Ape NFT Class-Action Lawsuit: Jimmy Fallon, Paris Hilton, Justin Bieber Also Face Charges
Bored Ape Yacht Club NFT is now facing a significant class action lawsuit against its name, alongside its parent company, Yuga Labs. The plaintiffs see a charge for allegedly pumping its prices through the use of public promotion from known names. Its case also involved famous Hollywood personalities and celebrities who were allegedly part of this "scam" against investors. Celebrities including Jimmy Fallon, Paris Hilton, Kevin Hart, Justin Bieber, Snoop Dogg, Madonna, and other names also see the charge from affected individuals.

(Source: Tech Times, December 11, 2022)

 

The Ledger: Five Ways 2022 Pushed Music Royalties Forward
If the 2010s were the decade that established streaming as the de facto way that most people enjoy music, the 2020s will be the decade the platforms’ royalty rates took a leap forward. 

(Source: Billboard, December 9, 2022) [Subscription may be required]

 

Microsoft Gaming Ambitions Hobbled as U.S. Seeks to Block Activision Deal
The Biden administration moved to block Microsoft's (MSFT.O) $69 billion bid to buy "Call of Duty" maker Activision Blizzard, throwing a stumbling block in front of the tech giant's plans to rapidly expand its portfolio of popular games and catch up to bigger rivals. Microsoft, which owns the Xbox console and game network platform, said in January 2022 that it would buy Activision for $68.7 billion in the biggest gaming industry deal in history.

(Source: Reuters, December 8, 2022)

 

‘Goo Goo’ Bucks: What a ‘Wednesday’ Synch Is Worth for the Cramps
In the latest example of a stellar synch bringing in a surprise windfall, The Cramps‘ 1981 psychobilly classic “Goo Goo Muck” has become a breakout hit over the past couple of weeks Since Netflix’s new Addams Family spinoff debuted on Nov. 23, including the series’ titular heroine performing dance sequence set to “Goo Goo Muck,” the track has taken off on streaming services. In the week following the show’s release, from Nov. 25 to Dec. 1, The Cramps’ “Goo Goo Muck” was streamed on-demand over 2 million times in the U.S. — a more than 8,650% increase from the average 47 weeks before this year. That adds up to $11,089.85 in a single week for the Capitol Records master recording and $2,492.33 in publishing, according to Billboard estimates.

(Source: Billboard, December 6, 2022) [Subscription may be required]

 

Hulu’s Likely Outcome Is Disney Writing Comcast a “Big Check,” NBCUniversal CEO Says
Despite earlier comments that Comcast may be interested in retaining full control of Hulu, NBCUniversal CEO Jeff Shell said he believes the company will sell its stake to Disney. Comcast has a 33 percent stake in the streaming service, while Disney owns the rest and has the option to buy out Comcast starting in January 2024. Speaking at UBS’s Global TMT Conference in New York, Shell said he believes that’s likely the timeline and course of action, while also talking up the price of the stake. 

(Source: The Hollywood Reporter, December 5, 2022)

 

'A Dud': European Union’s $500,000 Metaverse Party Attracts Six Guests
A European Union plan to throw a virtual party in the “metaverse” to engage young people in its policies flopped spectacularly after only six people turned up. The EU Commission’s foreign aid department splashed out £332,000 ($500,000) to create the metaverse — an online square where people could log in to a virtual concert to meet others and learn about the bloc.

(Source: The Sydney Morning Herald, December 2, 2022) 

 

Google Strikes $9.4 Million Settlement With FTC for Paying Djs and Influencers to Praise Phones They Never Touched
The FTC and four state attorneys general struck a $9.4 million settlement with Google over allegations that Google covertly paid celebrities money to promote a phone none of them had ever used. The FTC’s announcement states that the agency had previously filed suit against Google and iHeartMedia for airing nearly 29,000 deceptive endorsements by radio personalities and influencers, promoting their use of and experience with Google’s Pixel 4 phone in 2019 and 2020. The FTC and state AGs said the DJs and influencers had never actually so much as touched the phones, violating truth in advertising rules.

(Source: Techdirt, December 2, 2022)

 

A Music Agent Figured Out How To Get COVID Funds for Artists. Now He Says a Rival Stole His Idea
A talent manager who allegedly helped artists like Vampire Weekend and Marshmello gain access to $200 million in COVID-19 relief funds is the target of a new lawsuit that claims he stole the idea to tap those government funds — aimed primarily at helping venues, not artists — from somebody else. In a complaint filed on Nov. 30 in Los Angeles court, longtime music agent Laurence Leader says he was the first to realize that artists might also be able to access Shuttered Venue Operators Grants, a COVID-era federal program that gave out more than $14 billion to help live venues shuttered by the pandemic. But Leader claims his “novel idea” was quickly stolen by talent manager Michael Oppenheim, who then allegedly used the same scheme to secure more than $200 million in SVOG funds for his own clients at the talent firm NKSFB, including Vampire Weekend, Marshmello, Common, Lil Wayne and many others.

(Source: Billboard, December 2, 2022) [Subscription may be required]

 

Fake Streams Aren’t Slowing Down
Under the terms of the deal, Legendary’s movies will be distributed and marketed globally by Sony, excluding China, where Legendary East will handle those duties. Sony will also handle home entertainment and TV distribution for those films. Sony does not have a streaming service, and Legendary will continue to partner with other companies for streaming, as it has with Netflix on the Enola Holmes films.

(Source: Billboard, December 1, 2022) [Subscription may be required]

 

Legendary Pictures Finds New Home at Sony
This winter, HBO and Warner Bros. Discovery will fire up a new way to engage “Game of Thrones” fans — and generate incremental revenue — with the launch of digital-collectible NFTs based on the epic fantasy franchise. Warner Bros. Discovery’s consumer products group announced plans for “Game of Thrones: Build Your Realm,” which will let users purchase unique NFTs, as well as trade and sell them.

(Source: The Hollywood Reporter, November 28, 2022)

 

Can Indie Musicians Afford To Keep Their Shows on the Road?
The managers, agents, and bus rental companies behind the scenes dish on why so many concert tours—especially ones by smaller indie artists—are getting canceled.

(Source: The Daily Beast, November 27, 2022)

 

Ban on Beer Is Latest Flash Point in World Cup Culture Clash
Ever since Qatar was surprisingly awarded the hosting rights to the World Cup more than a decade ago, local organizers and global soccer leaders had insisted that beer — a fixture at sporting events around the world, but one that is tightly controlled in Qatar — would be available for fans. Two days before the event’s first game, though, that message changed.

(Source: The New York Times, November 18, 2022)

 

Mariah Carey Is Not the Sole "Queen of Christmas," Trademark Board Says
Her music may be the unofficial anthem of the holiday season, but officially, Mariah Carey is not the "Queen of Christmas" — or even the holiday's "princess" — the U.S. Trademark Trial and Appeal Board ruled. Carey filed a petition last year to trademark the name "Queen of Christmas." But that petition failed, according to a press release by Christmas music artist Elizabeth Chan, who has been vocal about her opposition to Carey's request. Chan is "the world's only full-time Christmas music recording artist," according to the press release, and has held the nickname "Queen of Christmas for years," as have other artists. According to the release, the trademark board not only rejected Carey's request to exclusively use the title, but also "rejected and denied" her requested trademarks of "Princess Christmas" and "QOC." 

(Source: CBS News, November 16, 2022)

 

Megan Thee Stallion Secures Restraining Order Against Her Label Ahead of This Weekend’s AMAs
The legal back and forth between Megan Thee Stallion and her label 1501 Certified Entertainment continues, with the rapper — real name Megan Pete — securing a restraining order to stop the label from interfering in her efforts to capitalize on this weekend’s American Music Awards. There has been plenty of legal wrangling between Pete and 1501 in recent years. She originally claimed that her deal with the label did not follow music industry conventions and was unfairly skewed in 1501’s favor. After she went legal on the matter, 1501 agreed to amend elements of that deal, resulting in Pete’s lawsuit being dismissed.

(Source: Complete Music Update, November 15, 2022)

 

Broncos' Aaron Patrick Seeks Unspecified Damages Over Sideline Injury
Denver Broncos outside linebacker Aaron Patrick has filed a lawsuit in the Superior Court of California that alleges negligence when he tore his left ACL in the team's Oct. 17 game against the Los Angeles Chargers in SoFi Stadium. The lawsuit, a copy of which was obtained by KTLA TV in Los Angeles, names the NFL, the Rams, the Chargers, SoFi Stadium, ESPN and several others, including Kroenke Sports & Entertainment, which owns the Rams and the stadium.

(Source: ESPN, November 15, 2022) 

 

How Gaming Could Reshape Music Distribution 
While we are only at the very start of this new era, MUTEK’s recent Immersive Collection is a forward-thinking step that could very well be the first rumblings of a point in music history that would be so huge it’s almost impossible to comprehend. It’s the moment where the music industry stops being the gaming industry’s less wealthy, less healthy little brother; when we can finally stop thinking of music fans and gamers as two separate demographics; and when we can reward artists and music industry professionals fairly.

(Source: Music Ally, November 15, 2022) 

 

Madison Square Garden Doubles Down on Plaintiffs Lawyer Ban, Even After It Backfires
After trial judges in both New York State Supreme Court and Delaware Chancery Court criticized a months-old MSG policy to ban plaintiffs lawyers who have sued the company for any reason from attending events at any of their venues, MSG sent out a new letter reinforcing the ban. Plaintiffs lawyers are not allowed into MSG, Radio City Music Hall, the Beacon Theater or the Chicago Theater, no matter how they obtained tickets, the new letter said. And if they try to defy the ban and enter one of those venues, MSG advised, they will not be allowed in.

(Source: Reuters, November 15, 2022)

 

Odell Beckham Jr. Files Lawsuit Against Nike, Says Company Owes Him $20 Million
Free agent wide receiver Odell Beckham Jr. has filed a lawsuit against Nike stemming from his final endorsement contract that he had signed with the apparel company. Beckham is alleging that the company owes him more than $20 million related to the endorsement deal.

(Source: CBS, November 15, 2022)

 

Pink Floyd Wanted $500 Million For Its Music. What Went Wrong?
When members of the band Pink Floyd decided to sell their catalog, they had every reason to believe they’d score a payday that would take care of their great grandchildren. Legendary acts have been closing deals for record sums and few of them had a roster of albums as popular as Dark Side of the Moon and The Wall. Initial bids topped $ 500 million. But months into the process, the band hasn’t reached a deal. The list of potential bidders has shrunk, and the estimated value has along with it. 

(Source: Bloomberg, November 13, 2022)

 

3LAU Made Millions Off His Music NFTs. Now a Collaborator Claims She’s Owed a Cut
Justin Blau, the DJ/producer and NFT hotshot better known as 3LAU, has been accused of not adequately compensating one of his collaborators with the proceeds he made from a blockbuster NFT sale in early 2021. The artist Luna Aura (real name Angela Anne Flores) has filed a new lawsuit against Blau, claiming he only offered her a one-time payment of $25,000 after he raked in over $11 million from NFT sales that partly involved their song 2017, “Walk Away.” Flores is accusing Blau of unjust enrichment and breach of contract, saying Blau and his company 3LAU Entertainment “did not seek Luna Aura’s permission or a license… to include her work in the auction, nor was Luna Aura adequately compensated for her work.”

(Source: Yahoo.com, November 10, 2022)