The music industry landscape is shifting once again with the departure of Scott Borchetta from HYBE America. Borchetta, the founder of Big Machine Records, announced on Thursday, , that he is leaving the company and reclaiming the Big Machine Records brand for his future endeavors.
Borchetta initially launched Big Machine Records in , famously signing Taylor Swift as its first artist. The label quickly rose to prominence, becoming a powerhouse in the country music scene and beyond. He later sold Big Machine Label Group to Ithaca Holdings in for an estimated $300 million. When HYBE acquired Ithaca Holdings in for $1.05 billion, Borchetta continued as CEO of Big Machine Label Group.
While Borchetta is taking the Big Machine Records name with him, HYBE America will retain significant assets, including the distribution deal, the publishing company Big Machine Music, and a roster of artists that includes Thomas Rhett, Brett Young, Midland, Justin Moore, Carly Pearce, Preston Cooper, Jackson Dean, and Mae Estes. The company plans to rebrand the former Big Machine Label Group under a new name, with leadership announcements expected in the coming days.
Isaac Lee, Chairman and CEO of HYBE America, acknowledged Borchetta’s contributions in a statement. “Scott has made a lasting mark on the music industry with his sharp eye for talent and his unique vision,” Lee said. “He recently approached us to ask for our support as he works to pursue a new, independent and entrepreneurial stage of his career, working to advance the Big Machine brand separately from HYBE. While we are sad to see Scott go, we understand – and want him to pursue his passions, and are grateful for all he did for the company.”
HYBE America intends to continue supporting its artists across various platforms, including music, film, television, and brand partnerships. “HYBE AMERICA will continue to support our artists’ interests across music, film, television, brands and culture in the U.S. Market and beyond,” Lee added. “We are beyond excited for our future in Nashville and will make further announcements in due course.”
Borchetta himself expressed gratitude for his time with HYBE. “I am incredibly appreciative of my partnership with HYBE over these last five years,” he stated. “Chairman Bang often talks of his fondness for entrepreneurs and he, Isaac, and the HYBE leadership team have extended that belief with this incredible showing of support by allowing me to continue to build upon my vision of the Big Machine Records brand. For that, I am forever grateful and wish them nothing but continued and incredible global success.”
The move comes amidst a broader conversation about artist rights and ownership in the music industry. Borchetta’s Big Machine Records was at the center of a highly publicized dispute with Taylor Swift in regarding the ownership of her master recordings. Swift ultimately regained ownership of those recordings in after acquiring them from Shamrock Capital, which had purchased them from Scooter Braun’s Ithaca Holdings.
Borchetta originally founded Big Machine Label Group as a joint venture with Toby Keith’s Show Dog Nashville in . The label’s success was built on identifying and nurturing talent, and its impact on the country music landscape is undeniable. The details of Borchetta’s future plans with the Big Machine Records brand remain to be seen, but his departure marks a significant moment for both HYBE America and the broader music industry. The industry will be watching closely to see what new ventures Borchetta undertakes and how HYBE America adapts its strategy in Nashville following his exit.
The timing of this announcement, coupled with the recent federal appeals court ruling granting musicians greater control over their copyright termination rights globally, suggests a potential shift in power dynamics within the music industry. The court’s decision, issued on , allows artists to enforce U.S. Copyright termination rules worldwide, potentially disrupting established industry norms and empowering artists to reclaim ownership of their work. While the direct connection between the court ruling and Borchetta’s departure isn’t explicitly stated, the concurrent events highlight a growing trend of artists seeking greater control over their creative and financial futures.
