Radio stocks struggled this week as companies’ second-quarter earnings revealed additional revenue losses. 

SiriusXM shares fell 15.6% after the company’s second-quarter earnings on Thursday (Aug. 1) showed a loss of 173,000 satellite radio subscribers and 41,000 Pandora subscribers. Revenue fell 3% to $2.18 billion, although net profit improved 2% to $316 million. In the first quarter, SiriusXM lost 594,000 subscribers, although revenue improved 0.8% to $2.16 billion.

SiriusXM is trying to thread the needle as it expands its product line and gives consumers more options. The new $9.99-per-month streaming service is intended to appeal to a broader audience than potential satellite radio subscribers. At the same time, the company is introducing new pricing tiers for satellite radio, including a $9.99 music-only subscription that can expand to news, talk and sports for additional fees. The trick is not cannibalizing its core, higher-priced satellite offering. “The early results in our testing have been encouraging,” CEO Jennifer Witz said during Thursday’s earnings call. “It shows that we’re getting consumers into the right packages for them.”

Shares of radio broadcaster Cumulus Media fell 21% to $1.62 and dropped as far as $1.29 on Friday (Aug. 2) — a 52-week low — after the company’s second-quarter earnings showed that revenue fell 2.5% and net loss increased to $27.7 million from $1.1 million a year earlier. iHeartMedia, which doesn’t report earnings until Thursday (Aug. 8), appeared to be a casualty of Cumulus Media’s results as its shares fell 12.9% to $1.49. 

Collectively, radio companies have had the worst stock performance of all music companies this year. Year to date, Cumulus Media is down 69.5%, iHeartMedia has fallen 44.2% and SiriusXM is off 42.6%. Only JYP Entertainment, which has fallen 44.3% year to date, has suffered a similar drop.  

The Billboard Global Music Index (BGMI), a measure of the market capitalizations of 20 publicly traded music companies, fell 1.1% to 1,739.18. Even though 13 of the 20 stocks lost ground — five of them suffering double-digit declines — gains by some of the index’s most valuable companies nearly offset the losses. HYBE improved 5.3% to 180,800 won ($139.01). Spotify gained 2.8% to $331.02. And Universal Music Group (UMG) rose 0.5% to 21.44 euros ($23.41). 

Music stocks have had a case of the summer doldrums after soaring in the winter and spring. The BGMI has fallen for four consecutive weeks and stands 5.9% below its all-time high of 1,847.64 set on May 17. On Friday, the index reached its lowest point since April 19. 

Music companies’ losses were compounded by sharp declines in U.S. stock markets on Friday after news that the unemployment rate rose in July stoked fears the economy could enter a recession. The tech-heavy Nasdaq fell 3.4% this week and stood in “correction” territory, at 10.1% below its all-time high set on July 11. Amazon fell 8.0% after missing revenue expectations and providing investors with a disappointing forecast. Intel fell 31.5% after announcing broad layoffs, reporting a decline in quarterly revenue and issuing weak guidance. 

The S&P 500 dropped 2.1% to 5,346.56. In the United Kingdom, the FTSE 100 gained 2.3% to 8,474.71. South Korea’s KOSPI composite index dropped 2.0% to 2,676.19. China’s Shanghai Composite Index improved 0.5% to 2,905.34. 

The week’s greatest gainer was K-pop company JYP Entertainment, which rose 6% to 56,400 won ($41.53). JYP was added to the BGMI this week after Hipgnosis Songs Fund was removed from the London Stock Exchange once its acquisition by Blackstone was completed. Three other K-pop companies were among the week’s few gainers: HYBE improved 5.3%, YG Entertainment rose 2.1% and and SM Entertainment increased 1.0%. 

Reservoir Media dropped 14.4% to $7.37 after releasing its quarterly earnings on Wednesday (July 31). Tencent Music Entertainment, which will report earnings on Aug. 13, fell 10.5% to $12.62. Warner Music Group (WMG) fell 5.3% to $28.26. In the wake of UMG’s latest earnings results, which showed a slowdown in subscription revenue, J.P. Morgan dropped its price target on shares of WMG — which will report earnings on Aug. 7 — to $41.00 from $42.00.

The Justice Department sued TikTok on Friday, accusing the company of violating children’s online privacy law and running afoul of a settlement it had reached with another federal agency.

The complaint, filed together with the Federal Trade Commission in a California federal court, comes as the U.S. and the prominent social media company are embroiled in yet another legal battle that will determine if – or how – TikTok will continue to operate in the country.

The latest lawsuit focuses on allegations that TikTok, a trend-setting platform popular among young users, and its China-based parent company ByteDance violated a federal law that requires kid-oriented apps and websites to get parental consent before collecting personal information of children under 13. It also says the companies failed to honor requests from parents who wanted their children’s accounts deleted, and chose not to delete accounts even when the firms knew they belonged to kids under 13.

“This action is necessary to prevent the defendants, who are repeat offenders and operate on a massive scale, from collecting and using young children’s private information without any parental consent or control,” Brian M. Boynton, head of the Justice Department’s Civil Division, said in a statement.

TikTok said it disagreed with the allegations, “many of which relate to past events and practices that are factually inaccurate or have been addressed.”

“We offer age-appropriate experiences with stringent safeguards, proactively remove suspected underage users and have voluntarily launched features such as default screentime limits, Family Pairing, and additional privacy protections for minors,” the company said in a statement.

The U.S. decided to file the lawsuit following an investigation by the FTC that looked into whether the companies were complying with a previous settlement involving TikTok’s predecessor, Musical.ly.

In 2019, the federal government sued Musical.ly, alleging it violated the Children’s Online Privacy Protection Act, or COPPA, by failing to notify parents about its collection and use of personal information for kids under 13.

That same year, Musical.ly — acquired by ByteDance in 2017 and merged with TikTok — agreed to pay $5.7 million to resolve those allegations. The two companies were also subject to a court order requiring them to comply with COPPA, which the government says hasn’t happened.

In the complaint, the Justice Department and the FTC allege TikTok has knowingly allowed children to create accounts and retained their personal information without notifying their parents. This practice extends to accounts created in “Kids Mode,” a version of TikTok for children under 13. The feature allows users to view videos but bars them from uploading content.

The two agencies allege the information collected included activities on the app and other identifiers used to build user profiles. They also accuse TikTok of sharing the data with other companies – such as Meta’s Facebook and an analytics company called AppsFlyer – to persuade “Kids Mode” users to be on the platform more, a practice TikTok called “re-targeting less active users.”

The complaint says TikTok also allowed children to create accounts without having to provide their age, or obtain parental approval, by using credentials from third-party services. It classified these as “age unknown” accounts, which the agencies say have grown into millions.

After parents discovered some of their children’s accounts and asked for them to be deleted, federal officials said TikTok asked them to go through a convoluted process to deactivate them and frequently did not honor their requests.

Overall, the government said TikTok employed deficient policies that were unable to prevent children’s accounts from proliferating on its app and suggested the company was not taking the issue seriously. In at least some periods since 2019, the complaint said TikTok’s human moderators spent an average of five to seven seconds reviewing accounts flagged as potentially belonging to a child. It also said TikTok and ByteDance have technology they can use to identify and remove children’s accounts, but do not use them for that reason.

The alleged violations have resulted in millions of children under 13 using the regular TikTok app, allowing them to interact with adults and access adult content, the complaint said.

In March, a person with the matter had told the AP the FTC’s investigation was also looking into whether TikTok violated a portion of federal law that prohibits “unfair and deceptive” business practices by denying that individuals in China had access to U.S. user data.

Those allegations were not included in the complaint, which is asking the court to fine the companies and enter a preliminary injunction to prevent future violations.

Other social media companies have also come under fire for how they’ve handled children’s data.

In 2019, Google and YouTube agreed to pay a $170 million fine to settle allegations that the popular video site had illegally collected personal information on children without their parents’ consent.

And last fall, dozens of U.S. states sued Meta Platforms Inc., which owns Facebook and Instagram, for harming young people and contributing to the youth mental health crisis by knowingly and deliberately designing features on Instagram and Facebook that addict children to its platforms. A lawsuit filed by 33 states claims that Meta routinely collects data on children under 13 without their parents’ consent, in violation of COPPA. Nine attorneys general are also filing lawsuits in their respective states, bringing the total number of states taking action to 41 plus Washington, D.C.

This story was originally published by the Associated Press.

The Echeverri-Reglero family is officially a family of four. Camilo and Evaluna announced on social media on Thursday (Aug. 1) the arrival of their second daughter, Amaranto, who joins her 2-year-old sister Índigo.

“Amaranto. All the frogs came out to sing your welcome. Girl of golden velvet. Dad caught you and you painted his hands forever. Sovereign of midnight. Welcome,” reads a shared post on the couple’s Instagram accounts, along with a carousel of photos that starts with a tender image of the four resting on a bed, Amaranto on Evaluna, Índigo on Camilo.

There’s also a photo of a white sheet with a pair of hands imprinted on it in red, something that the poem in the caption refers to.

It is not specified where and when Amaranto was born. Camilo’s publicist told Billboard Español that no further information will be provided at this time.

Camilo and Evaluna married in February 2020 after five years together, and became parents in April 2022. Índigo was born months after they announced the pregnancy in the music video of a song named after their daughter.

Earlier this year, in February, they announced that they were expecting baby No. 2 with a beautiful poem by Camilo dedicated to his wife, who wrote in the description: “Officially the Echeverri-Reglero are FOUR.”

“Evaluna, fertile, a mother never ready, a walker discovered in the journey, a new daughter of calmness and killer of haste,” narrated the Colombian singer-songwriter in a video. “Owner of all Sundays, a caller of downpours and heavy rains, a tester of bathtubs and a volcanic diver. A baker by accident, excellent for intentional lack of trade. A springtime crossed. Violator of calendars, anticipator of Christmases, and mother of Amaranto and Indigo.”

Check out Camilo and Evaluna’s new baby announcement below: