WEDNESDAY 26 APRIL 2017 | COMPLETEMUSICUPDATE.COM | ||||||||||||||||||||||||||||||||||||||||||
TODAY'S TOP STORY: The global recorded music market grew by 5.9% in 2016 according to new figures published by the International Federation Of The Phonographic Industry yesterday. In line with statements issued by record industry trade bodies at a national level, the IFPI cautiously welcomed the sector's solid growth as it launched its stats pack in London, but quickly yelped "value gap" and "safe harbour"... [READ MORE] | |||||||||||||||||||||||||||||||||||||||||||
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Global record industry revenues up 5.9% in 2016, but - you know - 'value gap' In line with statements issued by record industry trade bodies at a national level, the IFPI cautiously welcomed the sector's solid growth as it launched its stats pack in London, but quickly yelped "value gap" and "safe harbour", which everyone in the room immediately translated as "fucking fucking YouTube". We already knew the record industry saw decent growth last year, with 2016 figures for most markets around the world following a similar trend: subscription streaming boomed compensating for tanking download sales and slowly declining CD revenues, resulting in an overall uplift. Although the trends are the same globally, the shift from CD to downloads to streams has occurred at different speeds in different markets. The performance of different revenue streams in the UK, however, is pretty close to the global averages, the British market shifting over to digital slower than the biggest recorded music market in the world, ie the USA, but much faster than the second biggest market, that being the still CD-dominated Japan. Overall, globally, digital combined now accounts for half of recorded music revenues, with physical sales, broadcast and public performance revenue and sync accounting for the other half. It goes digital (50%), physical (34%), public performance (14%) and sync (2%). In the digital domain, it is all about streaming, and by that we meaning paid-for subscription streaming, with the likes of Spotify and Apple Music really behind the record industry's return to growth after fifteen years of decline. Streaming revenues were up 60.4% worldwide, while physical went down 7.6% and downloads fell 20.5%. The overall rise of 5.9% means that in 2016 the record industry generated $15.7 billion. So, overall, good news. Though all the major label execs speaking at yesterday's stats launch were keen to stress that they weren't going to get all complacent about the return to growth, noting that there was still a long way to go before the record industry returns to revenue levels achieved at the peak of the CD era. In the words of Universal Music's Michael Nash, the takeaway from the 2016 figures for him was that when it came to putting the record industry back on solid ground, it was by no means "mission accomplished", but we now know that it's "not mission impossible". Of course, one of the reasons for the subdued response to the 5.9% growth scored in 2016 - which, somewhat ironically, has been less ecstatically received than the 0.2% growth recorded in 2012 - is that record company bosses reckon that the boom in the streaming market isn't quite as boomful as it could be. That's because of the existence of opt-out streaming services like YouTube, which secure much better rates from music rights owners because of the copyright safe harbour and what the IFPI likes to call the 'value gap'. We recap the safe harbour debate in this CMU Insights blog post here. Yesterday the IFPI was keen to stress that this remained a key issue that meant its sector's return to growth, while welcome, wasn't as significant as it could or should be. That legislative fix is most likely to come first in the European Union, where a limitation on the safe harbour is included in the draft new Copyright Directive. Moore said yesterday that, if passed in its current form (it could as yet be revised), she felt the record industry could work with that legislative fix to address the value gap in Europe. Lobbying efforts would then be required to secure similar limitations elsewhere, and especially the US. But hey, enough of that, 5.9% growth! Woo! Let's have a party! Let's eat some cake! Let's dance a little jig! Let's give Spotify - a key player in enabling that growth - a moment on the bragging step. You know, before the streaming firm's IPO puts increased scrutiny on its business model and everyone starts slagging off the market-leading streamer again. Says Will Page, Spotify's Director Of Economics: "What Spotify set out to make happen ten years ago is finally happening. The music industry is growing, thanks to the growth in streaming, and Spotify - as the biggest player in the music subscription space - is driving that growth. Spotify's success story has expanded beyond established markets, with Brazil and Mexico now making up two of our top four countries worldwide by reach. A combination of increasing smartphone adoption and Spotify's success makes the potential for these emerging markets to 're-emerge' and to exceed previous peaks". We'll analyse the IFPI's figures in more detail and provide three reasons to be optimistic, and three reasons for pessimism, in CMU Trends next week. CMU Trends is accessible to premium subscribers - to go premium for £5 a month click here. |
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Sony Music maybe negotiating an end to its business partnership with Dr Luke Sony and Dr Luke, real name Lukasz Gottwald, have a joint venture together around the label Kemosabe Records, though for the major it's the producer's work on tracks for artists signed to its other labels that have really delivered the goods. Happy with the performance of those recordings, Sony generally gave Gottwald a free reign over his own imprint, which sat alongside the producer's other companies. However, the major's alliance with Gottwald created PR challenges aplenty after he was accused by one of his artists - Kesha Sebert - of sexual assault. The producer has always denied those allegations, accusing Sebert of lying in a bid to get herself out of contractual commitments to his various companies, including Kemosabe Records, and he has sued for defamation. The legal dispute between Sebert and Gottwald has been long-running and multi-layered, and at one point involved separate litigation in three American states. In the main, Gottwald has enjoyed a lot more success in court, though outside the courtroom there has been a lot of sympathy for Sebert. Sony got caught up in the story when Sebert attempted, unsuccessfully, to get out of her record deal with Kemosabe on the basis that she was being forced to work with - or at least for the benefit of - her alleged abuser. Sony sought a compromise - that Sebert could work with another label and producer within its empire - though the singer continues to try to get out of her record deal, most recently by citing California's seven year rule. That line of argument didn't work in court, but is now subject to appeal. Meanwhile, Gottwald's current deal with Sony is soon to expire, and one source has told The Hollywood Reporter that the major hopes to part company with the producer once the current arrangement is complete. To that end, said source says, current negotiations are focused on ending the Sony/Gottwald partnership. Though, the Reporter concedes, another source has played down talk of a divorce, but it still notes that Gottwald was no longer listed as CEO of Kemosabe Records in a recent court filing and that the Dr Luke page on Sony's website has been taken down. Needless to say, neither Sony nor Gottwald have commented on speculation about their future working relationship. Either way, the two parting company wouldn't necessarily help Sebert, who has deals with the producer's companies other than Kemosabe Records. And, in a recent court submission from her reps, Sebert expressed concerns that if Sony ends its alliance with Gottwald, the major will no longer be available to her as a go-between with her former collaborator. -------------------------------------------------- Merlin reduces admin fees, hires new Finance Director Merlin, of course, represents thousands of indie labels and distributors in the digital domain, negotiating template deals with streaming services on behalf of affiliated companies. Announcing that its admin fee would drop again, by a quarter, to 1.5% of revenues, Merlin said that this move reiterates its "continued commitment to deliver ever greater efficiencies for its label and distributor members". Helen Alexander, most recently Director Of Operations And Business Development at the Warner Bros film firm, is Merlin's new Finance Director. She will report into Merlin chief Charles Caldas and will oversee the agency's finance, royalty and operations functions, and lead on further development work to increase the efficiencies of the organisation. Says Caldas about today's announcements: "On the back of our new agreement with Spotify, I am proud to announce yet another reduction in our administration fee. Together it means Merlin continues to deliver maximum value to our members' digital business, and highlights our ongoing commitment to provide ever greater efficiencies". He goes on: "This service level will be further enhanced by the appointment of Helen Alexander as Finance Director. Helen is a key addition to our team. She brings with her a wealth of experience and, at a time of explosive global growth in our market, will ensure that all internal finance, reporting and operations processes continue to run smoothly". |
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Competition regulator to investigate Live Nation's IOW Festival purchase The live music major has expanded its UK festivals portfolio considerably in recent years, mainly via LN-Gaiety, its joint venture with Irish music industry veteran Denis Desmond, who now heads up Live Nation's UK operation. It's not clear why the CMA has decided to investigate this particular acquisition. It's been a while since Live Nation has been the subject of a competition regulator review in the UK - past such reviews having focused on the firm's venue network and its 2010 merger with Ticketmaster. The CMA is yet to set a timetable for its review of the IOW Festival purchase, though it says it has asked Live Nation to ensure the festival continues to operate as a separate entity until its investigation is complete. It remains to be seen if other players in the UK live sector - maybe AEG Presents or another company that has been buying up festivals of late, Global - will formally object to Live Nation's IOW Festival deal during the CMA review. |
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Streaming generates vast amounts of royalty data, and not all collecting societies are coping As part of this year's Global Creators Summit at Canadian Music Week in Toronto, CMU Insights presented a series of sessions on the streaming market. Based on the 'Dissecting The Digital Dollar' reports CMU Insights produced for the UK Music Managers Forum, representatives from the digital market, collecting societies, artist management and entertainment law spoke. The audience heard a detailed breakdown of how streaming services are licensed, conversations about ensuring that the streaming business works for all parties, and a discussion about ongoing transparency issues. In an interview with CMU Business Editor Chris Cooke, Ericsson discussed the mammoth task of processing the data fed to collecting societies by the streaming services each month, and the issues that can arise when some societies are unable to do so efficiently. "In terms of the size and complexity of the market, you can't blame societies for not investing in high technology solutions in every territory around the world", said Ericsson. "It would be impossible not only from a financial perspective but also from a competency perspective. Therefore, what has evolved over the years are smaller licensing and administration hubs that have the capability to license and process enormous amounts of data. Whether they do it correctly or not hinges partly on the technology, but also partly on the data". There are various bodies of data at play here. The usage data the streaming services supply, the music rights ownership data that the societies control, and then the royalty payment data that is generated by comparing the first two. Whereas the streaming service knows who to pay when a track is streamed on the recordings side - ie the label or distributor who provided the content - on the publishing side the digital platform doesn't know who controls the rights. So that task falls to the societies. To do that the society must first identify what song is contained within what recording. Track titles alone are insufficient here because, for example, there are at least two very famous songs called 'Hello'. Once the song has been identified, a society must work out if it controls that work. Because of co-writes, it may only control a portion of the song. It must then claim royalties for that portion. But, with multiple people claiming royalties for the same work, it's important all parties have the same information regarding how ownership of the song was split between each writer. For the societies, it's important to complete this data processing task accurately and quickly, and cost-efficiently, because of the vast quantity of usage data coming in from the services. "It's trillions of transactions that are constantly being processed", explained Ericsson. "It never really stops. We're getting fed data from many of these platforms on a daily or weekly basis and we don't stop processing, we just make cut offs in between to make payments". Bad music rights data, and inefficient processing of usage data, can stop songwriters from being paid royalties. "I think the reason why money's not flowing in some parts of the world is due to societies not having the right systems", Ericcson went on. "It's due to high deductions and commissions that are taken in these territories, and it's due to a lot of conflicts. Conflicts in the sense that there's one party, maybe AMRA, claiming a specific song from Spotify. The same share of the same song is being claimed by a local society in Taiwan. Spotify's view is, 'that's not our problem, you guys have to sort that out'. And there's a lot of that going on around the world". With the streaming services generally passing these problems back to the music industry, how these conflicts over song ownership are then resolved varies from society to society. "In the case of PRS, I think we would have that resolved within a week", said Ericsson. "Both of our systems are very accurate, and if there is a flaw then the dispute is probably because one of us didn't update in time". The fact that song ownership information can also change adds to the complexity. Further issues arise, Ericsson said, "when societies don't update their systems with new songs, or their relative IPI [Interested Parties Information] for that song or songwriter may have shifted from one period to another between societies". Where the actions of other societies are impacting on payment, entities like AMRA need to try to educate their counterparts around the world. "It takes a little longer" to solve problems this way, he says, adding "we have to put some effort into it". The obvious solution to all this is a single global database containing all of the information for all registered songs in one place, which societies and the streaming services themselves can use to calculate who is owed what. But we know that this is not as easy as it sounds. "There have been attempts", Ericsson recalls. "I was on the board of the GRD [Global Repertoire Database] for four years - it didn't work, it fell apart, but all due to political reasons in my opinion, and some funding reasons". All of this could leave songwriters feeling somewhat helpless, but there are things they can do to try to ensure that their royalties flow back to them as smoothly as possible. "If you're not published, you're likely to be a member of the collecting society in the territory where you operate", said Ericsson. "If you're published, you have two ways of getting in there. You have the society plus the publisher registering your works throughout the world. So when you register works with your publisher or your society, make sure you have as much information as is possible about co-writers, about shares, about the song, if there are ultimately different titles, translated titles, whatever it may be. As much information as possible helps". The need for songwriters to clearly agree ownership splits with their new works, and for that information to be quickly logged with relevant societies, is something we went into in detail at last year's CMU Insights @ The Great Escape. Read more about that here. |
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Mixmag publisher acquires Kerrang! Originally conceived as a supplement to another music publication, Sounds, metal mag Kerrang! went from monthly to fortnightly to weekly during its first decade. It was then acquired by EMAP's consumer magazines business in 1991, which was then itself acquired by Bauer Media in 2008. Like most print music magazines, Kerrang! has seen its print circulation tumble in recent years. And while it continues to reach a bigger audience online, all magazine publishers have struggled to generate decent revenues around their online readerships. This is because online consumers expect content to be free, and media owners face fierce competition from social and search for ad spend. Jerry Perkins, who runs Mixmag Media, reckons that he can do a better job of capitalising on the Kerrang! brand online utilising the same model that his company has employed with its clubbing magazine, which was also once owned by EMAP. While Mixmag and Kerrang! are polar opposites in terms of the genres they champion, the publisher reckons there are parallels between the titles. Speaking to ad industry trade mag Campaign, he said: "Mixmag and Kerrang! are quite similar - they're 'fuck it' audiences. They like what they like and don't care about what anyone else thinks". He goes on: "Kerrang! is a trusted brand because of the years of passion, knowledge and profound enthusiasm that have gone into producing it, week in, week out. Under our ownership Kerrang! will take its rightful place at the heart of a global digital community of like-minded spirits. The platforms are there and, thanks to our recent experience with Mixmag, we know how to use them". Perkins says it's important to keep Kerrang! in print, but that monthly rather than weekly works better, because timely news content belongs online these days, and reducing the frequency of the print edition will allow more time to be put into online channels. Though the cut back on print might ultimately result in some job losses, he admitted. Mixmag Media's deal with Bauer also includes the rights to The Face, the style magazine that was also acquired by EMAP but then shut down in 2004. Although the revamp of Kerrang! will come first, Perkins plans to relaunch The Face as an online media, possibly with some print output too. According to Campaign, Mixmag Media - which will now be rebranded Wasted Talent - financed the acquisition of the Kerrang! brand via its own funds and from existing shareholders. Terms of the deal are not known, though Bauer will retain the rights to operate the Kerrang! radio and TV stations, the latter of which is run by Bauer's joint venture with Channel 4, the Box Plus Network. |
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Girls I Rate announces A&R event for female songwriters Founded last year, Girls I Rate aims to improve opportunities for women within the creative industries. This event will be held at the London headquarters of PRS For Music, an organisation whose female membership still only accounts for 16% of the total number of songwriters for whom it collects royalties. Taking place at on 6 May, it will be hosted by Girls I Rate founder and Beyonce songwriter Carla Marie Williams, Capital Xtra DJ Manny Norte and Lily Allen. Two panels will listen to the music on offer and provide feedback, while the day will end with a networking session hosted by BBC Radio 1Xtra's Sian Anderson. Says Williams: "My mission is to engage with as many young females as possible, to break down stereotypes and assumptions in the creative industry and help give young women opportunities by pushing for more equality and diversity within the creative industry! I also want to empower young females to believe anything is possible. This is why events such as #GetHeard are so imperative". PRS Executive Director Of Membership And International, Karen Buse adds: "Girls I Rate is an exciting and much-needed initiative, and I am proud that PRS For Music will be hosting the #GetHeard Weekender. So many young women can be put off entering what often feels like a male-dominated industry, so it's invaluable to have organisations such as Girls I Rate to break down stereotypes and really support and champion new talent". Meanwhile, discussing his company's involvement in the event, Island Records President Darcus Beeses says: "It has always been important for us at Island to champion women in all areas of the industry; from the incredible artists we have worked with over the years, including Amy Winehouse and PJ Harvey, to the powerful women in key positions at the label. Girls I Rate is a fantastic initiative that we need to be a part of. At a time where the music industry is experiencing growth again, we need more open discussions like #GetHeard to continue striving for equality and diversity every day. We still have a lot of work to do". To apply to attend, submit SoundCloud links of your music to [email protected] by end of today. |
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Tori Amos announces new album, tour dates "The songs on 'Native Invader' are being pushed by the muses to find different ways of facing unforeseen challenges and in some cases dangerous conflicts", says Amos. "The record looks to nature and how, through resilience, she heals herself. The songs also wrestle with the question: what is our part in the destruction of our land, as well as ourselves, and in our relationships with each other?" The dates will be exactly these: 6 Sep: Cork, Opera House |
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Stefan Dabruck, Iggy Pop, Mura Masa, more Other notable announcements and developments today... • BMG has hired EDM producer and manager Stefan Dabruck as an A&R consultant. "Stefan is not just a German hitmaker", says BMG's Dominique Kulling. "I am very impressed", adds Dabruck. • Iggy Pop has signed a new deal with Sony's Artist Legacy Group to represent his name and likeness. "Iggy Pop is punk rock personified and a perfect fit for brands looking to add authentic edge to their product lines and advertising campaigns", says ALG CEO Ashley Austin, which sounds quite depressing, even when you remember those insurance ads. • Mura Masa has announced that he'll release his debut album on 14 Jul. It features Damon Albarn, Christine & The Queens, Charli XCX, A$AP Rocky, Desiigner, Jamie Lidell and AK Paul. Fancy. Here's '1 Night', featuring Charli XCX. • Shabazz Palaces will release a new album, 'Quazarz: Born On A Gangster Star', on 15 Jul. From it, this is 'Shine A Light', featuring Thaddillac. • Grandaddy have released a 360° VR video for new single 'That's What You Get For Getting Outta Bed'. • DNCE have put out the lyric video for their new single, 'Kissing Strangers', what features Nicki Minaj. • Perera Elsewhere is back with a new single, 'Happened'. • Rick Ross has announced one lonely UK tour date on his 'Rather You Than Me' tour. Get yourself to IndigO2 under the O2 Dome on 13 Jun to witness it. • Sohn has announced that he'll kick off a European tour with a London show at the Roundhouse on 25 Oct. • Prizes were handed out to various people at last night's Jazz FM Awards, including the Rolling Stones, who won Blues Artist Of The Year and Album Of The Year, while drummer Charlie Watts received the Gold Award for his contribution to jazz. |
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Steps number one may prompt nudity Asked by Metro what the group would be doing if they manage to knock Ed Sheeran off the top spot, H screeched: "Lee is going to be stripping, live. Streaming it! Lee will get butt naked if we get to number one. He'll do it. Have you seen his body? If I had a body like that I'd be doing it". "Let's not put it on the internet", said Latchford-Evans, not entirely refusing. "Let's get the number one first". On whether or not they think the record will actually end up on top, H added: "We don't know where it's going to end up but if you put it into context, Ed has been a massive artist for a long time now, he's been in the charts, he's supported by a massive record label, this is our own record label. This is our baby. We've done everything ourselves. To even challenge Ed's crown is just amazing". |
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