Lessons From The Drake/UMG Lawsuit
The post Lessons From The Drake/UMG Lawsuit appeared on BitcoinEthereumNews.com. UMG’s acquisition of multiple labels creates competition for internal resources, potentially making artists like Drake collateral damage. getty The hip-hop rivalry between Kendrick Lamar and Drake may be initially surprising to some, considering the two rappers are represented by the same label: Universal Music Group (“UMG”). Even more surprising may be Drake suing his label while still under contract. However, viewed against the backdrop of significant shifts in the music industry, from streaming revenue gaps to evolving representation deals, this feud feels less like an outlier and more like the result of longstanding tensions. The friction reflects deeper, systemic challenges that have strained artist-label relationships across the board. Label Consolidation and Artist Representation Label combinations like these are becoming increasingly common, as major players seek to consolidate market share. UMG acquired Kendrick Lamar’s label Interscope in 1999, and subsequently Aftermath, distributed via Interscope. In 2000, UMG acquired Republic Records, which Drake has been signed to via Young Money and Cash Money. Through these endeavors, UMG has claimed a dominant in the market, with an ownership interest in over half of the Billboard Hot 100 tracks for 2023. In his legal filing, Drake draws parallels between the nearing expiration of his UMG contract and their alleged support of the defamatory tracks against him, stating: “… UMG anticipated that extending Drake’s contract would be costly. By devaluing Drake’s music and brand, UMG would gain leverage to force Drake to sign a new deal on terms more favorable to UMG.” His legal team further speculated that UMG’s alleged practices were prompted by pressure to fulfill their short-term deal with Lamar. The filing asserts: “On information and belief, Lamar signed a short-term deal with UMG to see if UMG could prove its value to him – to promote him more effectively than any other…
The post Lessons From The Drake/UMG Lawsuit appeared on BitcoinEthereumNews.com.
UMG’s acquisition of multiple labels creates competition for internal resources, potentially making artists like Drake collateral damage. getty The hip-hop rivalry between Kendrick Lamar and Drake may be initially surprising to some, considering the two rappers are represented by the same label: Universal Music Group (“UMG”). Even more surprising may be Drake suing his label while still under contract. However, viewed against the backdrop of significant shifts in the music industry, from streaming revenue gaps to evolving representation deals, this feud feels less like an outlier and more like the result of longstanding tensions. The friction reflects deeper, systemic challenges that have strained artist-label relationships across the board. Label Consolidation and Artist Representation Label combinations like these are becoming increasingly common, as major players seek to consolidate market share. UMG acquired Kendrick Lamar’s label Interscope in 1999, and subsequently Aftermath, distributed via Interscope. In 2000, UMG acquired Republic Records, which Drake has been signed to via Young Money and Cash Money. Through these endeavors, UMG has claimed a dominant in the market, with an ownership interest in over half of the Billboard Hot 100 tracks for 2023. In his legal filing, Drake draws parallels between the nearing expiration of his UMG contract and their alleged support of the defamatory tracks against him, stating: “… UMG anticipated that extending Drake’s contract would be costly. By devaluing Drake’s music and brand, UMG would gain leverage to force Drake to sign a new deal on terms more favorable to UMG.” His legal team further speculated that UMG’s alleged practices were prompted by pressure to fulfill their short-term deal with Lamar. The filing asserts: “On information and belief, Lamar signed a short-term deal with UMG to see if UMG could prove its value to him – to promote him more effectively than any other…
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