Trapital Recap 2019

A recap on the year that was for the business of hip-hop at Trapital.

How is it December already?! What a year. Hip-hop continued to dominate both on and off the mic, and Trapital was here for all of it. This year I published 48 articles, 77 member updates, 17 podcast episodes, 4 in-person meetups for members.

Last year, I did a Top Five Articles compilation. It was a fun project, but there was more to dive into.

This year’s Trapital recap is broken down in a few categories: most-viewed articles, best charts, best member updates, most-downloaded podcasts, most-popular themes, and takes that aged the best and worst. Some things I wrote made me wanna yell “I called game!” like Paul Pierce. Other things made me say “Wow. Did I really write that?!” Ha! It’s all part of the process.

Let’s get to it.

Most-viewed articles

1. Why Death Row Records Was Bound to Self-Destruct – Hip-hop often blames Death Row’s demise on the crime-ridden life it portrayed, but Suge Knight’s management theory was doomed from the start.
2. How Jay Z and Damon Dash’s Split Still Impacts Hip-Hop – Hip-hop’s misguided perception of Jay Z’s success and Damon Dash’s struggles has influenced how the next generation of artists approach business.
3. How Megan Thee Stallion Grew Her Fanbase – The 24-year-old rapper grew by doing things that don’t scale, but her business partners need to find the right balance to get Megan to the next level.
4. Why Rihanna Partnered With Amazon – The Fenty founder teamed up with Amazon to distribute her products and video content, but she could have earned more elsewhere.
5. How Tyler Perry Built a Customer-Centric Empire – The Atlanta mogul is rightfully praised for his high volume, low-cost model, but his focus on customer experience made the difference.

Anyone who reads enough Trapital knows that virality is more random than most think. The same is true here. These aren’t necessarily the five BEST articles of the year, but I understand why each gained traction.

For instance, Death Row Records former CEO Suge Knight has become a borderline mythical figure at this point. He has more in common with New Jack City’s Nino Brown than Roc Nation’s Jay Brown. When the content on him is done well, it draws attention. It also helped that DaBaby’s “Suge” was one of the biggest songs this summer.

Best visuals

This year I made more charts. You asked, and you got more! The visuals force me to synthesize takeaways, which strengthens the content. These are the ones that resonated the most:

Beyonce Sales FunnelThree levels of Beyhive fandom and the content consumed at each stage:

I actually drew one out with a straight edge and everything. This was before I used the iPad. (As someone who attended On the Run Tour in 2014, I’m technically in the Casual Beyhive)

How Rappers Started Getting More Mileage Out of the MusicThe “new” model reminded me of the well-known 1957 Disney synergy map, which reinforces itself with each theme park, film, merchandise licensing, music, and TV deal.

The “Old Town Road” playbookThe song’s success was dependent on a mix of factors both in and out of the 20-year-old rapper’s control. A lot of artists have now flooded to TikTok to copy Lil’ Nas X, but it’s not that easy. I broke down what he did in this framework:

Roc Nation RestructureWith three record labels/distributors under its umbrella, it makes sense for Roc Nation to segment its labels and take advantage of the long tail opportunity:

The Tyler Perry Studios Customer-Centric Model‍

Three phases to building the Madea fanbase. Perry didn’t just transition from phase to phase. He still focused on the core as he stretched to new opportunities.

Top Member Updates

The Trapital membership launched in May and has kept up with the essential news that impacts hip-hop and the businesses that partner with it. Here are some of the popular ones that were exclusive to Trapitalists:

• Did Roc Nation make the right move with new CEO Desiree Perez?
  • Takeaways from Diddy and Ray Dalio’s mentee-mentor session
  • Rihanna’s $25M Amazon documentary deal
• Byron Allen v. Comcast, Diddy’s Statement on REVOLT, and Future Implications
  • The Allen v. Comcast class-action lawsuit
  • Diddy’s related challenges with both Comcast and REVOLT
  • Supreme Court’s expected ruling and future implications
• Hip-Hop’s Rise in India
  • Hip-hop’s growing influence in India
  • The wave of lawsuits in the streaming era
  • Audiomack’s partnership with Warner Music Group
• Tencent is a Playing a Different Game
  • A breakdown of Tencent’s music strategy
  • Russ’ new book “It’s All In Your Head”
• Master P’s Rap Snacks Ups its Distribution
  • Rap Snacks Distribution Strategy
  • Complex Media’s revenue mix, and why content is a loss leader
• Jennifer Lopez’ 2019 run
  • Hustlers, the Versace dress comeback, and the Super Bowl Halftime Show
  • “God’s Plan” goes Diamond
  • Kanye West’s album delays
• Why Jay Z Partnered with the NFL (and Why it Won’t Work)
  • Jay Z and NFL Commissioner Roger Goodell’s goals
  • How it relates to Colin Kaepernick
  • Super Bowl Halftime Show expectations
• Why the BET+ Streaming Service May Face Challenges
  • Its niche audience is a strength relative to all the other networks
  • Tyler Perry’s content serves a different segment of the audience
• Hot 97 Summer Jam is a Cash Cow
  • The annual New York concert was once a rite of passage for hip-hop greats
  • The lineup can’t live up to what it was, but it still makes bank for the radio station
• The Astroworld Economy
  • The economic impact of “Sicko Mode” on Travis Scott’s career
  • Kanye West’s partnership goals for Jesus is King
  • NFL and Roc Nation launch ‘Inspire Change’

Most Popular Trapital Podcasts

The Trapital Podcast launched in July. There’s been some great episodes and conversations. Here are the most downloaded ones:

1. Mathew Knowles on Beyonce’s Streaming Strategy, Solange’s Marketing, and Dinner with Jay Z or $50,000?
2. Mike Weissman (President of SoundCloud) on the company’s Creator Strategy, How it Compares to a Startup Accelerator, and What it Means to be a SoundCloud Rapper
3. Shea Serrano on the Economics of Book Publishing, Movies (and Other Things), and How DJ Screw Inspired His Promotional Tactics

Popular themes

Building a Customer Base:
“The Pump Plan” and other clout-chasing tactics haven’t taken over hip-hop the way that some feared. Many artists still start with organic growth and logically expand from there.

• Direct to Consumer Hip-Hop is Not a Game – Nipsey Hussle and other rappers have established strong brands to serve fans directly, but it takes focus and commitment to replicate their model.
• How Nipsey Hussle’s Marathon Can Continue– Nipsey Hussle’s mission was still in progress, but luckily he left his playbook behind.
• The Bankability of Tyler the Creator’s Movement (member update)
• How Megan Thee Stallion Grew Her Fanbase – The 24-year-old rapper grew by doing things that don’t scale, but her business partners need to find the right balance to get Megan to the next level.
• How Tyler Perry Built a Customer-Centric Empire – The Atlanta mogul is rightfully praised for his high volume, low-cost model, but his focus on customer experience made the difference.

Distribution Tradeoffs:
“Own your master, own your publishing, say no to the majors,” became a stronger beat in 2019. The notion has understandable roots, but the decision comes with tradeoffs that every artist needs to account for.

• Why Kanye West is Bound to Keep Fighting for Ownership – Kanye’s lawsuit against EMI Music Publishing is understandable, but his pattern of business decisions may lead to similar challenges down the road.
• What Chance the Rapper Gets Wrong About Ownership – The Chicago rapper advises indie artists to avoid record labels, distribution deals, and management deals, but that blanket advice may shield artists from sound opportunities.
• How Distribution Changed Hip-Hop for Better and Worse – Today’s stars partner with global companies to maximize distribution, but it places hip-hop’s entrepreneurial efforts in a dependent cycle.
• Why Roc Nation Needed to Restructure – Jay Z, Jay Brown, and Desiree Perez have made sweeping changes at Roc Nation, but those changes were critical for the company’s future.

Strategic Partnerships:
Hip-hop’s biggest artists don’t get on top alone. They partner with the biggest brands and companies in the world to maximize reach. The companies enjoy these partnerships because it boosts relevancy with the artist’s audience too.

• Beyonce’s Streaming Strategy, Explained – Netflix, Tidal, and Spotify all serve different roles in Queen Bey’s strategic plan.
• Why Rihanna Partnered with Amazon – The Fenty founder teamed up with Amazon to distribute her products and video content, but she could have earned more elsewhere.
• Roc Nation and NFL – Why Jay Z partnered with the NFL and why it won’t work (member update).
• Why Rihanna Broke Barriers That Others Couldn’t – LVMH’s continued partnership with Fenty is a cultural moment, but it also acknowledges the fashion world’s fear of missing out on Rihanna’s rise.
• Jay Z’s Cell Phone Partnership Strategy, Explained – The 4:44 rapper has been on a career-long quest to turn his albums into B2B products that maximize mobile technology.

Best prediction

There’s a few low-hanging-fruit takes that I called early, like Reasonable Doubt’s return to Spotify, J. Lo performing at the Halftime Show, Jay Z becoming a billionaire, but this article takes the crown:

• Why Roc Nation May Move on From its Record Label (Trapital | December 7, 2018) – The entertainment company has hedged its bets for the disruption in the music industry.

Five months later:

• Roc Nation Records Fires Executive Staff Members (Billboard | May 22, 2019)

Change was inevitable for Roc Nation Records. While the company hasn’t technically moved on from the label, it did a hard reset and announced new leadership this summer.

I spent a lot of time assessing Roc Nation this year. It’s the most written about company of the year for Trapital (and in turn, Jay Z was the most written about artist). It wasn’t intentional, but if a prominent hip-hop company fires its executive staff, promotes internally to replace, launches a new JV, makes a questionable partnership with the NFL, and gets a new CEO, it’s probably gonna get covered in Trapital!

Worst prediction

Beyonce’s Streaming Strategy, Explained: (Trapital | April 18, 2019)

"I predict that the next Beyoncé album will be a Tidal exclusive... The decision to release on Tidal will also reinforce Beyoncé’s ownership stake. A large portion of subscribers are there for Bey and are holding out for this next album... But if Beyoncé was truly done with Tidal, she would have sold her stake and made Lemonade available on all platforms...At the moment, current subscribers might be annoyed that Homecoming and its live album weren’t exclusive theirs. But they shouldn’t worry. The album they really want should be on its way."

Lemonade was put on Spotify FIVE DAYS LATER on April 25! Hey, you can’t get them all right. I highly doubt that this has led to as much Tidal churn as people think, but the promotional offers are pretty steep. Time will tell.

Thanks to all the readers and listeners. Special thanks to the paid Trapital members who make this possible. If you’re not a member yet, what are you waiting for?! Join us here. If you need a holiday gift for someone who would benefit from these insights, gift a membership.

I’ll be back in 2020. Enjoy the holiday season!