Ariana Grande is twirling atop a marble column in the clouds, in a dress made of shards of mirrored glass, wielding an enormous silver mallet with a diamond as its hammer.

It’s not the real-life Grande, or some bizarre dream, but her avatar performing virtually in Fortnite, the free-to-play online video game with 350 million registered global users that has become known for its in-game music experiences with artists like Marshmello, Travis Scott and J Balvin. Billed as the next iteration of Scott’s “Astronomical” in-game event in April 2020 — which drew 27 million global unique players across five airings — Grande’s appearance kicks off the game’s so-called Rift Tour series, hosting an in-game virtual concert that will air five times over the course of this weekend.

Over the past several years, the music industry has opened its eyes to gaming as a new way to connect with fans and drive revenue. In-game performances offer multiple revenue streams to artists, from up-front payments to virtual goods and a streaming spike for the artist’s music that tends to follow an in-game show.

Compared to “Astronomical,” Grande’s performance is less visually chaotic, with fewer scene changes, and has an expanded focus on the player experience. In Grande’s world — which looks like if the Lisa Frank brand were an entire planet — players aren’t just watching the show, but actively participating in it, a key element that will be part of future experiences, according to Phil Rampulla, head of brand at Epic Games, Fortnite’s parent company.

“You’ll see on this one that there’s a little bit more control if you want it,” Rampulla tells Billboard. “You can go on autopilot and chill out and just take it all in and enjoy the ride. Or you can squad up with friends and really try to unlock things and compete.”

Artist performances within Fortnite have only gotten bigger and better since the game’s first-ever concert with Marshmello in February 2019, which attracted 10.7 million concurrent players. And with a Lady Gaga performance rumored to be coming soon, Epic Games is getting faster at putting together these shows. While Scott’s took over a year to come together, a representative for Epic said that Grande’s took six to nine months, with Rampulla describing it as a “very collaborative and iterative process.”

During the roughly 10-minute experience, players bounce atop hot pink beds of plants as if they were trampolines, fly inside glistening bubbles in the sky as Grande sways in a swing held up by clouds and follow Grande up marble staircases that turn upside-down the higher you go. The flipped view references Grande’s upside-down album covers for Thank U, Next and Sweetener, which the pop star has said symbolized her emotional state at the time, and it’s just one of several Easter eggs The Rift Tour leaves for super-fans — including a virtual version of Grande’s real-life pet pig, Piggy Smallz. Players will experience different effects during the show depending on their choice of avatar outfit or wrap (which changes the appearance of weapons and vehicles), encouraging them to go back for multiple showings.

“It’s hard to really think of anybody better at the moment,” Rampulla says of Grande. Unlike Travis Scott, Grande isn’t publicly involved in the video game community, making her an unorthodox choice for one of the world’s most popular games. “What we always look for in a partner is someone who’s willing to take some risks, someone who’s willing to try something new,” Rampulla says. “We reached out with some of the broad strokes of the ideas and she immediately jumped in and we just took off and the rest is history.” It likely doesn’t hurt that Ariana and Fortnite may benefit from introducing their fanbases to one another either.

At the time of “Astronomical,” an industry source told Billboard that Scott received a multimillion-dollar fee upfront, and that artist deals can also include a back-end bonus once the event reaches certain viewership metrics. That doesn’t include revenue from virtual goods that artists can sell Fortnite players in the form of skins (avatar outfits), gear (for fighting) and emotes (which lend the ability to act out expressions). Sold in Fortnite’s virtual currency, “V-bucks,” Grande’s cosmetics set includes a skin for the equivalent of about $20; a diamond gavel for about $8; a glider for about $12; and a ride-able unicorn for about $5. Players can also purchase a bundle of all these items for about $28. Those purchases add up, but Epic Games declined to reveal how compensation has been handled for Grande.

In the final few minutes of the show, Grande sings “Positions” while floating above ice before smashing it with her giant gavel, sending the artist and the audience back up into the clouds. In the aftermath of the explosion, players hover in the air among rainbows, watching fireworks explode in the surrounding air. Musically, the experience plays like a greatest hits collection, featuring tracks like “Positions,” “REM” and 2013 Mac Miller collaboration “The Way.”

Fortnite was quick to release viewership numbers after the Travis Scott show, but Rampulla wouldn’t commit to releasing numbers around Grande’s weekend in Fortnite. With massive superstars jumping at the opportunity to work with Epic Games, and potentially expand their user base, it doesn’t seem like Fortnite will move away from working with artists anytime soon.

Additional reporting by Micah Singleton

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Illinois dispensaries sold a record $127.8 million in recreational marijuana in July, with a big boost coming from out-of-state fans who converged on Chicago for the Lollapalooza music festival.

The month’s sales were 10% higher than May’s record of $116.4 million, which were slightly higher than June’s $115.6 million, according to a monthly report by the Illinois Department of Financial and Professional Regulation.

Business boomed at Chicago-area cannabis dispensaries during the four-day Lollapalooza festival, which ended Sunday and which returned after last year’s event was canceled due to the coronavirus pandemic.

Because recreational marijuana was legalized in Illinois in January 2020, pot was legal in the state during Lollapalooza for the first time in the festival’s 30-year history. Although it’s illegal to smoke or otherwise consume the drug in public or around anyone younger than 21 years old, the large crowds at Grant Park boosted sales by as much as 50% at nearby dispensaries in River North and the West Loop, operators told the Chicago Tribune.

“We saw thousands of festivalgoers over the weekend at our River North store, making it our biggest weekend to date,” said Jason Erkes, spokesman for Chicago-based Cresco Labs, whose Sunnyside Dispensary in River North was the closest to the festivities.

In July, Illinois’ 110 dispensaries sold a record 2.8 million recreational weed products. State residents spent about $85 million, while sales to out-of-state customers topped $42 million, up 16% from June, according to the state.

“Summer tourism and the Lollapalooza attendees were strong contributors to July’s out-of-state sales,” Erkes said.

Illinois is one of 18 states that have legalized recreational marijuana use, which is still illegal under federal law. Through July, the state has generated $753 million in recreational cannabis sales, which is more than all of last year.

Total sales reached $1.03 billion last year, including $669 million in recreational weed and more than $366 million in medical marijuana sales.

Illinois has not yet released its medical marijuana sales figures for July.

HYBE, home to K-pop stars BTS, overcame a continued touring stoppage and improved its revenue by 79.3% to 278.6 billion KRW ($244.1 million) in the period spanning April 1 to July 1, according to the company’s second quarter earnings report released Thursday (Aug, 5). Operating profit did, however, slip 6.2% to 28.1 billion KRW ($24.5 million).

Sales of the BTS, The Best compilation released June 16 as well as Seventeen’s Your Choice and Tomorrow x Together’s The Chaos Chapter: FREEZE pushed album revenue up 105.4% from the prior-year quarter and 96.2% from the previous quarter.

With touring at a standstill, album sales accounted for 38.4% of HYBE’s total revenue in the quarter — a far higher proportion of revenue than a normal year. (In 2019, concerts accounted for 32.5% of total revenue to albums’ 18.4%.) Now, with live music’s immediate future still uncertain, HYBE is considering holding “hybrid” concerts that would mix in-person and live-streaming experiences, although company executives did not elaborate on their exact substance or timing.

But HYBE — which changed its name from Big Hit Entertainment in March — depends less on BTS’ touring business after it purchased Ithaca Holdings, the Scooter Braun-led conglomerate, in April. Ithaca Holdings contains SB Projects, the artist management home of Justin Bieber and Ariana Grande, and Big Machine Label Group. Ithaca’s results after May 6 helped drive a 76.9% increase — 9.4 billion KRW, or $8.2 million — from the previous quarter in HYBE’s “ads, performances and management” category.

HYBE diversifies its business with its online social platform, WeVerse, which attracted 5.3 monthly average users, up 9% from 4.9 million MAUs in the previous quarter and 3.5 million from Q2 2020. The group BlackPink was responsible for 1 million new MAUs in Q2 2021. The company expects WeVerse MAUs “to increase considerably” after integrating with V Live, a streaming platform HYBE will acquire following the approval of Korea’s Fair Trade Commission in May.

Album sales increased 105.4% year over year to 107 billion KRW ($93.7 million) and 96.2% from the previous quarter. Tomorrow x Together’s album The Chaos Chapter: FREEZE sold 780,000 copies, a 55% increase from its previous album, and the highest ever sales total for a third-year K-pop group, according to HYBE. A repackaged version of The Chaos Chapter: FREEZE also sold 390,000 pre-orders that will count toward Q3 sales when they ship.

HYBE’s slate of upcoming titles includes the debut of a multinational boy band in late 2021 or early 2022 that will be released through HYBE Japan. In the second half of 2022, HYBE’s Source Music Group will debut a new girl group and its joint venture with Universal Music Group will produce a new boy band that will showcase “K-pop’s full production system encompassing not just music but performance, fashion, video and fan communication,” CEO Park Ji-won said during the earnings call.

HYBE has transformed itself since its IPO on the Korean Exchange in October 2020. In July, HYBE named Park Ji-won its CEO, replacing founder Bang Si-Hyuk, who remains as chairman of the board. Yoon Seok-jun and Braun lead HYBE America, for which Jaesang Lee moved to the U.S. to be the chief operations officer. Braun continues to lead Ithaca Holdings.

On Tuesday, news broke that HYBE has bid against Kakao Entertainment and CJ ENM for a nearly 20% share of Korean entertainment company SM Entertainment, a hybrid business that combines record label, talent agency, concert production and music production businesses. SM Entertainment’s largest shareholder, founder Lee Soo-man, is selling his stake at a $2.2 billion valuation.

In March, HYBE changed its name from Big Hit Entertainment and restructured itself into three segments: Big Hit Music houses the labels BELIFT Lab, Source Music, PLEDIS Entertainment and KOZ Entertainment; HYBE IP and HYBE 360 encompass HYBE Edu and Superb; and WeVerse is HYBE’s social media platform

The below metrics are provided in Korean won (KRW) and converted at 1,141.61 won to $1.

Financial metrics:

  • Revenue: 278.6 billion KRW ($244.1 million) in Q2 2021 — up 79.3% from 155.4 billion KRW ($136.1 million) in Q2 2020; up 56.2% from 178.3 billion KRW ($156.2 million) in Q1 2021.
  • Operating profit: 28 billion KRW ($24.5 million) in Q2 2021 — down 6.2% from 29.9 billion KRW ($26.2 million) in Q2 2020; up 23% from 22.8 billion KRW ($19.9 million) in Q1 2021.
  • Net profit: 20.8 billion KRW ($18.3 million) in Q2 2021, up 9.9% from 19 billion KRW ($16.6 million) in Q2 2020; down 8.5% from 22.8 billion ($19.9 million) in Q1 2021.

Revenue streams metrics:

  • Albums: 107 billion KRW ($93.7 million) in Q2 2021 — up 105.4% from 52.1 billion KRW ($45.6 million) in Q2 2020; up 96.2% from 54.5 billion KRW ($47.7 million) in Q1 2021.
  • Concerts: 0 KRW in Q2 2021 — down 100% from 1.4 billion ($1.2 million) KRW in Q2 2020; even with Q1 2021.
  • Ads, performances and management: 21.6 billion KRW ($18.9 million) in Q2 2021 — up 96.5% from 11 billion KRW ($9.6 million) in Q2 2020; up 76.9% from 12.2 billion KRW ($10.7 million) in Q1 2021.
  • Merchandise and licensing: 50.1 billion KRW ($43.9 million) in Q2 2021 — down 12.5% from 57.2 billion KRW ($50.1 million) in Q2 2020; down 22.7% from 64.8 billion KRW ($56.7 million) in Q1 2021.
  • Content: 91.3 billion KRW ($80 million) in Q2 2021 — up 236.9% from 27.1 million KRW ($23.7 million) in Q2 2020; up 145.6% from 37.2 billion KRW ($32.6 million) in Q1 2021.
  • Fan clubs and other: 8.6 billion KRW ($7.5 million) in Q2 2021 — up 29.8% from 6.6 billion KRW ($5.8 million) in Q2 2020, down 10.8% from 9.6 billion KRW ($8.4 million) in Q1 2021.

Additional information from the earnings call:

  • BTS 2021 Muster Sowoozoo, an online fan meeting to celebrate the 8th anniversary of the first BTS album, attracted 1.33 million viewers from 195 countries over two days.
  • Nine artists joined the WeVerse platform in Q2. In Q1 WeVerse had 18 artists.
  • HYBE expects to release a new game in early- or mid-2022 that was developed by an in-house team.

Stock market:

  • Market capitalization on August 5, 2021: $11.66 trillion KRW ($10.2 billion).
  • Year-to-date change in HYBE’s share price: 88.8%

LONDON – For more than a year, the U.K. live music industry has been campaigning for a government-backed insurance scheme to help festival and concert promoters get back on their feet. On Thursday (Aug. 5), those calls were finally answered when Chancellor of the Exchequer Rishi Sunak unveiled a 750 million pounds ($1 billion) insurance scheme covering the cost of festival and concert cancellations resulting from COVID-19.

The “Live Events Reinsurance Scheme” enables event organizers in the United Kingdom to purchase cover for government-enforced cancellations, alongside standard commercial events insurance.

Backed by Lloyd’s market insurers Arch, Beazley, Dale, Hiscox and Munich Re, the insurance be available for a 12-month term beginning sometime in September. (The Exchequer, when contacted by Billboard, was unable to say exactly when the scheme will begin.)

The government says it is one of the only insurance schemes in the world to cover such a wide array of live events and not put a cap on costs claimed per event.

Denis Desmond, chairman of Live Nation U.K. and Ireland, says the government-backed protection is a vital intervention that “offers certainty to artists, concert and festival promoters in the live entertainment market.”

“While the new scheme won’t cover all our risk, this intervention will help protect the industry that we all know and love,” says Phil Bowdery, chairman of the Concert Promoters Association.

The program follows the establishment of similar government-backed insurance schemes in a number of other European markets, including Germany, the Netherlands, Belgium, Austria, and Denmark. They provide a much-needed safety net for promoters committing non-recoupable upfront costs for future events amid the uncertainty of a pandemic.

“As the economy reopens, I want to do everything I can to help events providers and small businesses plan with confidence right through to next year,” Sunak says in a statement.

In the event of cancellations resulting from coronavirus restrictions, the government will pay between 95% and 100% of costs accrued with insurers paying the remainder. (Promoters and event organizers will need to pay an agreed excess fee, as per standard insurance deals).

While live execs unanimously welcomed the news, some expressed anger that the government didn’t step in sooner to support the country’s struggling live sector in the way it did for the film and TV industries. A 500 million pounds “Film and TV Production Restart Scheme” has been in place since July 2020 and has provided insurance cover to more than 600 independent film and TV productions to date, says the HM Treasury.

“It is devastating that the timings of this scheme could not have been earlier,” says Michael Kill, CEO of the Night Time Industries Association. He points to the large number of U.K. festivals that have been forced to cancel over the past year — many citing the lack of insurance as a determining factor.

According to the Association of Independent Festivals, more than half of all U.K. festivals scheduled to take place in 2021 have been cancelled this year because of the pandemic. Big-name casualties include Glastonbury, BST Hyde Park, Download and Kendal Calling.

Paul Reed, CEO of the Association of Independent Festivals, says the introduction of COVID-19 cancellation insurance was a positive development for the industry. But he cautioned that it doesn’t cover events needing to reduce capacity or cancel due to social distancing restrictions being reintroduced.

Nevertheless, British execs are cautiously optimistic that the tide is now turning for the beleaguered live industry and that better times are ahead.

The U.K. lifted its last remaining COVID-19 restrictions on July 19, opening the door for full-capacity shows, nightclubs, and festivals to return. Latitude Festival, held in Suffolk July 22-25 and headlined by Bastille, Bombay Bicycle Club, Wolf Alice, and The Chemical Brothers, was the first major music event to take place since the end of lockdown. It was attended by around 40,000 people as part of the COVID-19 Events Research Program.

Tentpole events scheduled to take place later this summer include the 185,000-capacity dual-site Reading and Leeds festivals headlined by Liam Gallagher, Stormzy and Post Malone, and the 70,000-capacity Creamfields, which features David Guetta, deadmau5, Alesso and Martin Garrix.

After D.O. released his first-ever solo album Empathy to wide critical acclaim last month, the EXO member is proving that he is in a class all by himself.

Throughout his prolific nine-year career, D.O. (birth name: Do Kyung Soo) has been a lead vocalist of one of K-pop’s most decorated groups and has also proven adept in television, film and theater. D.O.’s breakout role in 2014’s Korean drama series That’s Okay, It’s Love led to him scoring award-winning performances in the blockbuster My Annoying Brother as well as 2018’s top-rated TV series 100 Days My Prince. His first solo single, “That’s Okay,” released in 2019, was solid proof of his potential as an all-around performer.

Over his beautifully arranged, eight-track album, D.O. flaunts his affinity for storytelling over a melodic mix of acoustic R&B and pop productions and lets the power of his delicate-yet-full-bodied vocals and emotive lyrics shine over stripped-back ballads like “My Love,” the confessional serenade “I’m Gonna Love You,” and the breezy folk-pop single “The Rose.”

D.O.’s vocals handle a range of tasks on Empathy, coming in as profoundly relaxing as they interweave with gentle guitar strums on the hypnotic “It’s Love,” while “I’m Fine” lets him effortlessly soar between his gorgeous falsetto and soulful low notes.

Bolstered by the success of EXO’s latest album, Don’t Fight the Feeling, which has become one of 2021’s biggest K-pop releases with more than 1.2 million copies sold and a music video earning 80 million views on YouTube since its release in early June, D.O. finally released his solo album, which lets him flourish as a star vocalist but also showcases his songwriting and language skills.

Notably, D.O. is credited with writing “Rose” and “I’m Fine” on the album while also offering a Spanish-language version of “It’s Love” as well as an English version of “Rose.”

To date, Empathy has sold more than 300,000 copies worldwide and topped the iTunes Top Albums chart in nearly 60 countries, while the music video for “Rose” has amassed more than 9 million views since its premiere. “I’m Gonna Love You” debuted at No. 90 on the K-Pop Hot 100, while “Rose” came in at No. 91. “Rose” also entered the World Digital Song Sales chart at No. 16, while the album peaked at No.14 on the World Albums chart. In addition to all the impressive numbers, D.O. seems to have found his musical identity as a solo musician, and Empathy is only the beginning of what is sure to be a fulfilling solo career.

–By Jessica Oak