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Steps Down, Layoffs, Lawsuit – News July 31

Executive Changes and Corporate Moves

Warner Records Realigns Leadership, Names Erik Pettie as Head of Marketing

Warner Records has restructured its executive team, appointing Erik Pettie to oversee all marketing operations, with an emphasis on digital integration and more agile artist promotion. Co-chairman and COO Tom Corson directed this shift, which includes the departure of three senior marketing leaders (names not confirmed in the wire summary), pursued as part of a broader move to increase operational efficiency and respond to shifting music industry consumption patterns. The new marketing structure is designed to unify label messaging across streaming, social, and retail channels.

Scott (“Scooter”) Braun Steps Down as CEO of Hybe America

Scott (“Scooter”) Braun has relinquished his title as Chief Executive Officer at Hybe America, now serving in a board advisory capacity. This transition follows widespread speculation and public scrutiny, allowing Hybe to refresh its U.S. executive approach. No public changes have been reported to roles held by colleagues such as Lenzo Yoon in this cycle.

Erik Pettie and Tom Corson Oversee Executive Departures at Warner Records

As part of the same restructuring, Erik Pettie and Tom Corson confirmed the exit of three as-yet-unnamed marketing executives, referenced as a streamlining measure to focus label priorities on digital and global growth.

Legal and Rights Claims

Estate of Dr. Khalid Muhammad Alleges Unauthorized Sampling by Major Hip-Hop Artists

The estate of Dr. Khalid Muhammad has allegedly filed lawsuits claiming vocal samples were used without consent in tracks by 2Pac (the late Tupac Shakur), Public Enemy (Chuck D and group), and D’Angelo. The litigation names both artists and their music publishers and label partners as defendants. The estate’s lawyers argue that samples appeared in commercially successful tracks without the required permission, potentially affecting catalog values and industry-wide sampling practices. Labels and publishers from the 1990s and 2000s are accused but unnamed in the summary.

Funding, Industry Initiatives, and Growth

Music Australia Partners With Indie Labels for Artist Development

Music Australia announced two new co-investment programs with independent labels, as unveiled during the annual Indie-Con event hosted by the Australian Independent Record Labels Association (AIR). The funding streams target local artist support, international marketing, and increased independent sector resilience during a period of global streaming uncertainty. Participating labels, while not all named publicly, are being integrated into a unified strategy to enhance exports and competitive edge for Australian music creators.

Major Awards and Industry Bodies

All Africa Music Awards (AFRIMA) Expands Jury Representation

AFRIMA has broadened its adjudication panel, enlisting new jury members from Morocco, Kenya, and Congo. The move bolsters regional fairness and diversity for AFRIMA’s next award cycle, furthering its status as Africa’s premier platform for industry recognition. Mike Dada, President and Executive Producer, is leading strategic direction for this process.

Business, Licensing, and Platform Moves

Meta, Microsoft, Amazon, and Google Dramatically Increase AI and Cloud Investment

Meta Achieves Record Revenue, Bets Big on AI Development

Meta Platforms has reported record-breaking revenue and profits for the most recent quarter, a surge fueled by its aggressive investments in artificial intelligence–powered advertising. The company’s revenue jumped 22% year-over-year, reaching $47.5 billion, with a corresponding leap in net income to $18.3 billion. This financial performance is attributed to an 11% increase in ad impressions and a 9% rise in average ad prices, as billions more users engage across Meta’s family of apps. CEO Mark Zuckerberg used the occasion to articulate his vision for “personal superintelligence”—a next-generation AI that, in his words, could “shape all of our systems sooner rather than later.” Meta is planning up to $72 billion in infrastructure and compute investments in the next fiscal period to support its AI expansion, and has outlined selective open-sourcing for new large language models.

Microsoft Reports Strong Growth as AI Boosts Azure Cloud Revenues

Microsoft also reported a milestone: annual revenue for its Azure cloud computing platform surpassed $75 billion, up 34% from a year earlier. In the most recent quarter, company-wide profit jumped 24% to $27.2 billion, outpacing analyst expectations. CEO Satya Nadella credited the company’s focus on scaling its network of more than 400 data centers worldwide, driven by rising demand for AI-powered cloud applications and the global adoption of Microsoft’s AI offerings. Recent quarterly capital expenditures rose to $24.2 billion. Analysts say Microsoft’s AI partnership strategies and in-house model development are attracting enterprise clients and fueling Azure’s rapid growth.

Amazon Enters AI Licensing Deal with The New York Times

Amazon is making inroads into AI-powered video streaming and content training, launching new platforms and entering a multi-year licensing agreement with The New York Times. Under the deal, Amazon will pay the Times up to $25 million annually in exchange for rights to utilize news, cooking, and sports content for developing AI models—the Times’ first such arrangement focused solely on generative AI. The agreement reflects the growing practice among tech giants to license high-quality journalism for AI training and product expansion.

Google to Sign EU’s AI Code of Practice Amid Industry Debate

Meanwhile, Google has announced its intent to sign the European Union’s General-Purpose AI Code of Practice, a voluntary but widely watched compliance tool meant to align businesses with the EU’s new AI Act. The Code provides guidance on transparency, safety, and copyright for general-purpose AI models. Google said that while it supports the spirit of Europe’s innovation goals, it remains concerned that certain regulatory measures could slow the region’s competitiveness in AI development and deployment. The move marks a split among major tech players, as some competitors remain hesitant about the code’s enforceability and impact on trade secrets and model approvals.


YouTube Implements AI Age Verification; Meta Faces Competition Scrutiny

  • YouTube began U.S. deployment of an AI-powered age-gating system to meet global standards for youth protection, extending earlier launches in UK and Australia.
  • Meta is allegedly under investigation by Italian regulatory authorities regarding potential antitrust violations linked to the integration of AI-powered WhatsApp chatbots.

Music Industry Rights, Labor, and Litigation

Voice Actor Advocacy as Generative AI Allegedly Threatens Dubbing Sector

Voice actors across Europe are allegedly pushing back against the proliferation of AI in dubbing, claiming loss of jobs, lack of consent, and insufficient legal safeguards as AI companies and content producers automate translated vocal tracks. Ongoing lawsuits and legislative lobbying highlight a new phase in the debate over digital rights and real human contributions to media.

Film Industry News

Georgia’s Ongoing Rise as a Hub for Episodic Productions

The state of Georgia continues to demonstrate strong momentum for film and television production. Recent updates from the Georgia Department of Economic Development highlight that an influx of episodic, serialized productions have kept studio facilities and crews highly active across the state. Georgia’s established tax credit structure and deepening local infrastructure have attracted series from major streamers and networks, ensuring sustained demand for local labor, location services, and related support businesses. The outlook indicates Georgia is solidifying its reputation as a leading U.S. destination for large-scale episodic production.

San Antonio’s Push for a Larger Share of the Film Business

San Antonio is actively seeking to grow its footprint in film and television production. City leaders, local studios, and economic officials are campaigning for a more significant role in the industry, noting that most large-scale productions historically bypass the region in favor of Austin or out-of-state sites. Local incentives, infrastructure upgrades, and new partnerships are part of a strategic plan aimed at drawing higher-value productions to the area, with an emphasis on workforce development and the broader economic benefits of attracting the film business.

Warner Bros. Discovery to Lay Off 10% of Film Group

Warner Bros. Discovery is preparing to reduce its film group workforce by approximately 10%, according to sources close to the company. The layoffs will affect employees across departments including marketing, distribution, and production. The company is implementing these cuts as part of broader cost control measures and ongoing industry realignment in response to the shifting global entertainment economy. This reorganization aligns with recent similar actions by other major studios, reflecting continued restructuring pressures throughout the sector.

Widespread Hollywood and Media Layoffs Continue

A new wave of layoffs is impacting the U.S. film and media landscape, with notable reductions reported at Paramount, Warner Bros. Discovery, CNN, and others. Major studios and networks are undertaking broad workforce reductions prompted by a combination of declining linear TV revenues, streaming restructuring, and an emphasis on leaner operating models. The result is significant job loss among marketing, production, and back-office personnel, highlighting the volatility and consolidation motions affecting the industry at large.

International Film Industry Developments

Germany Increases Film Production Funding to Attract Global Partnerships

Germany’s coalition government has announced a significant increase in financial support for domestic film production, an initiative aimed at reinvigorating the local industry and attracting more international co-productions. Legislators say the expanded funding will provide new resources for German filmmakers and encourage collaborations with foreign studios, enhancing the country’s profile as a filmmaking hub. The move comes in response to growing competition from other European markets and the global demand for locally rooted but internationally appealing content. Industry organizations have welcomed the news, noting that increased investment could strengthen the national film sector and improve Germany’s representation at major festivals and in international distribution.

South Korean Film Studios Shift Strategies After ‘Parasite’ Breakthrough

The tremendous global success of Bong Joon-ho’s Academy Award–winning film “Parasite” continues to reshape South Korea’s film business. Domestic movie studios are reevaluating their production strategies in the wake of “Parasite,” which demonstrated international demand for original, artistically ambitious work. As a result, more Korean studios are seeking a balanced portfolio of commercial blockbusters and prestige titles aimed at both local audiences and the global festival circuit. Industry sources report that producers are increasingly willing to invest in unique storytelling and director-driven projects, reflecting aspirations to emulate the international acclaim of “Parasite” while maintaining the strong box office performance of genre films at home.

Imax Sees Robust Global Box Office as Premium Cinema Stays Resilient

Imax Corporation is reporting robust global box office returns, signaling ongoing consumer appeal of premium cinema experiences even as much of the broader theater exhibition sector faces continued headwinds. The company attributes its success to exclusive releases and large-format presentations that offer moviegoers something unavailable at home. Despite uncertainties in international markets and a slow rebound in some regions, Imax’s premium format continues to draw audiences and outperform standard screens. Industry analysts suggest Imax’s strong performance highlights a persistent demand for high-quality, immersive theatrical experiences, even when much of the sector is adapting to shifting consumer habits and streaming competition.

India Weighs Direct Digital Film Releases Versus Pay-Per-View Models

India’s movie sector is immersed in a fresh debate over how best to release new films in the streaming era. With several anticipated feature films opting for direct-to-digital launches rather than traditional theatrical premieres, industry insiders are weighing the merits of pay-per-view models versus subscription-based streaming. Supporters of digital exclusives argue these releases expand audience reach and generate revenue quickly, especially for mid-budget or niche titles. Meanwhile, proponents of traditional distribution warn that bypassing cinemas could hurt box office revenues and the communal aspect of movie-going. As more producers announce straight-to-streaming deals, the industry is closely watching audience response and financial outcomes to determine the best path forward.

Albuquerque’s Tech Edge: 3D Printing Bolsters New Mexico’s Hollywood Pipeline

In New Mexico, Albuquerque-based companies are playing an increasingly prominent role in the film industry by employing advanced technologies such as 3D printing. These firms are designing and fabricating custom props, set pieces, and even architectural elements on-demand for major Hollywood productions. The adoption of rapid prototyping and other digital manufacturing tools is enabling local businesses to respond quickly to creative briefs while also reducing the need for costly shipping from out-of-state suppliers. This trend is helping to position Albuquerque as a key technical resource and flexible “backlot” partner, enhancing its appeal to film productions seeking innovative solutions and logistical support.

North Carolina Seeks Revival in Film Production with New Incentives and Community Partnerships

North Carolina, after ceding a substantial share of the film and television business to states like Georgia, is moving to reclaim its position in the industry. Policy makers and industry advocates are considering the introduction of fresh financial incentives, including updated tax credits and streamlined permitting processes, targeted to attract larger projects and bolster employment. Additionally, new partnerships are being proposed between local governments, educational institutions, and private studios to upgrade production infrastructure and provide training. The coordinated effort aims to modernize North Carolina’s film ecosystem and reestablish its competitive edge in attracting both domestic and international shoots.

Rise of Local Film Challenges and Entrepreneurial Competitions

There is a growing movement toward local film challenges and entrepreneurial competitions across regions. Smaller production companies and creative entrepreneurs are leveraging these events to showcase original work, experiment with unconventional storytelling, and network with industry mentors. These contests often feature deadlines as short as 48 or 72 hours for teams to write, shoot, and edit a film based on surprise prompts or themes. The initiatives are stimulating the discovery of new voices, accelerating community engagement, and providing a low-barrier entry point into the film and media landscape for aspiring talent. The uptick reflects a broader push toward grassroots innovation and diversity in media content creation.

Radio

Public Radio Stations and Listeners Mobilize in Response to Funding Losses

Across the country, public radio outlets—including those in Atlanta, Jacksonville, Philadelphia, Florida, North Carolina, and California—are enlisting their audiences in urgent fundraising campaigns and advocacy efforts. Some are holding town halls, launching special membership drives, or lobbying lawmakers to secure alternative support. Community radio, such as KWMR in California and KRSM in Minnesota, are using these changes as an opportunity to refocus on local storytelling and deepen citizenship initiatives, even as they navigate operational uncertainty and possible reductions in coverage or staff.

Rural and Tribal Radio Faces Unique Crisis

For tribal and remote Alaskan radio stations, the coming financial cliff highlights a wider crisis in rural media. These outlets are often the sole providers of language preservation, cultural programming, and critical safety communications for geographically isolated populations. While certain lawmakers have proposed side deals or stopgap measures to protect Native and tribal stations, station managers warn that unless full funding is restored, essential public services—including weather alerts and emergency broadcasting—are threatened in dozens of communities.

Market Restructuring: Radio Station Sales and Ownership Shifts

Despite funding and audience challenges, the radio industry continues to see significant market activity. Data from the first half of the year reveals about $206 million in radio station sales, with deals involving both small local outlets and consolidating media groups. This reflects a mix of strategic realignment and investment in new clusters, signaling that investors and operators still see value in broadcast holdings—particularly where FM frequencies and local presence are strong.

Innovation, Recognition, and New Voices on Air

Amid challenges, several positive developments stand out. The FCC is highlighting upcoming grassroots conferences to discuss new solutions, while community stations like KBUT in Colorado and Cabin Radio in Canada are investing in more original content and local engagement. Meanwhile, new program hosts (such as Joey Sweeney at WXPN) and new college and Indigenous radio entrants are infusing the airwaves with diverse perspectives. The sector is also recognizing contributions of industry pioneers and embracing new ideas—like expanded sports coverage, the growth of cloud-based broadcasting, and creativity in station naming and programming.

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