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Ivors Academy calls for regulation of major music firms and new data standards as Parliament again considers the economics of streaming
Songwriter group the Ivors Academy yesterday called for the major music companies to be regulated and a new minimum viable data standard to be introduced for recordings as Parliament's Digital, Culture, Media & Sport Select Committee held another hearing considering the economics of music streaming.

Whereas the first oral hearing of the DCMS committee's streaming inquiry focused on the argument that artists are not getting a fair share of digital income - and the proposal that applying performer equitable remuneration to streams might be a solution in that domain - the second hearing put the spotlight more on songwriters, and their share of the digital pie.

One of the three artists who took part in the proceedings, singer-songwriter Fiona Bevan, stated that "the reality of being a songwriter at the moment is extremely stark because we're not being paid fairly for our work". She added: "I recently had a song on a UK number one album, the fastest-selling solo artist album of 2020 [Kylie Minogue's 'Disco'], and it will surprise many people that, from what seems like an incredible success, I have only earned £100".

At the first hearing, MPs were told that part of the problem for artists is the intermediary, ie the record label, who sits between the streaming platform and the recording artist. Although around 55% of streaming income is paid over to the record industry, artists on traditional record contracts will get a minority share of that money.

For songwriters, whose publishing contracts will already pay them a majority of any monies the publisher generates from their songs, the issues are different. First, there is the fact that only 10%-15% of streaming income is allocated to the song rights. And second, the processing of song royalties is super complicated, and money is often lost to the system as it flows from streaming platform to songwriter.

With songwriter payments in the spotlight, the Ivors Academy published more details about its written submission to the DCMS inquiry, and the proposals and demands it has made in that document.

That includes the proposal that major music companies that are in control of large catalogues of songs and recordings be regulated, in a similar way to the music industry's collecting societies. The Academy stated: "Regulation should ensure adherence to minimum standards of disclosure on interests, policies, payments, and in-kind benefits, including auditing rights for groups of creators. A code of conduct is required to set out minimum standards".

The Academy's submission also noted the complexities around the way song royalties are paid - and in particular, the issue that streaming platforms do not actually know what songs are contained in the recordings they stream because the labels and distributors who provide the recordings don't tell them. The platforms obviously know the song's title, but some songs have the same title, so what the platform needs is the song's unique identifier, ie the ISWC.

Because the platforms don't have this information, publishers and collecting societies have to claim royalties for songs they control based on reports they receive listing every track streamed. Sometimes that results in publishers and societies collectively claiming to control more than 100% of a song, which often results in payments being put on hold. Other times nobody claims a song, and money linked to it ends in the dreaded "black box".

But what if labels and distributors were forced to provide an ISWC and songwriter information with every track they upload? This could be achieved, the Academy argues, via a new "minimum viable data standard for music recordings". Such a standard, it adds, "must require basic metadata relating to the underlying composition [be provided] to ensure that fewer streams fall into the unallocable 'black box'".

Although songwriters and song royalties were a much bigger part of the debate this time, artist royalties on recordings were also discussed again. As with the first hearing, industry reps said the problem for artists is that contracts and systems designed for the physical era have been applied to streaming. And they have been applied in a way that favours labels over artists, mainly because of the way labels have defined "streaming".

Music rights expert Maria Forte noted how many traditional record contracts made a distinction between sales income and licensing income, with a much higher royalty being paid to the artist on the latter compared to the former, often 50%. The record industry's deals with the streaming platforms are clearly licensing deals, yet most labels apply a sales royalty to streaming income. "Why would a stream be a [sale]?", Forte asked, "I don't understand that - it's a licence".

Talking of defining streaming, José Luis Sevillano of Spanish performer collecting society AIE also argued that the record industry was wrong to define streams as sales. "Streaming is not replacing sales", he told MPs. "It is replacing broadcasting - and possibly the rental of music".

Defining streams as a broadcast or even a rental is important in copyright terms, because in both those scenarios so called performer equitable remuneration is paid. That means artists - including session musicians - get a cut of the money at industry-standard rates directly from their collecting societies, oblivious of whatever any record contracts say.

At the first hearing it was proposed ER should be applied to streams, thus ensuring artists automatic payments. That already happens in Spain - albeit in a different way to how ER works with radio in the UK - and Sevillano's organisation administers the payment of that streaming money to performers.

Elsewhere at yesterday's hearing there was talk about the need for more transparency, efficiency and accuracy in the way revenues are carved up, and artist and writer royalties calculated and paid.

Nile Rodgers, another of the artists taking part, noted that - while he considers the record labels he works with as partners - "the interesting thing is that, every single time I've audited my partners, I find money [I am owed]. Every single time. And sometimes, it's staggering, the amount of money".

Artist manager and MMF Vice Chair Kwame Kwaten also focused on inefficiencies and the lack of transparency, stressing the importance of addressing the industry's "leaky pipes" that result in money getting lost to the system, especially on the songwriter side, and the need for ongoing transparent conversations about how monies should be shared out as the digital market evolves.

That should include a regular roundtable discussion involving all the key industry stakeholders, he argued. Because, while much of the DCMS inquiry has so far focused on Spotify-style streaming, the market continues to diversify, and increasingly important platforms like Triller, TikTok and Instagram operate different models, throwing up a whole load of new questions about how the digital pie should be sliced up.

You can watch yesterday's session on the Parliament website here. Meanwhile, you can download resources related to the inquiry and follow CMU's coverage of it via this timeline in the CMU Library.

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US court expands injunction against Donald Trump's TikTok ban
A US judge has expanded a preliminary injunction in favour of TikTok owner Bytedance which is seeking to overturn executive orders issued by President Donald Trump against the video-sharing app.

Trump issued two executive orders against China-based Bytedance back in August. The first banned US citizens and businesses from transacting with the company, the second ordered the TikTok owner to divest its American assets. Both orders were based on concerns that, because Bytedance is a Chinese company, the Chinese government has access to TikTok's global audience and user-data.

Bytedance has been trying to placate its critics in Washington by cutting American companies Oracle and Walmart into the global TikTok business. But concurrent to that it has also been fighting the executive orders in court.

The key legal argument is that Trump's orders use powers granted to the President by America's International Emergency Economic Powers Act, but that that act has limitations when it comes to "personal communications" or the sharing of "informational materials".

A court in Washington DC issued a preliminary injunction in TikTok's favour back in September halting Trump's TikTok ban, mainly on the basis that Bytedance's arguments regarding the limitations of the IEEPA were compelling.

However, prior to that injunction being issued, the office of the US Secretary Of Commerce had provided more detail about the TikTok ban, breaking it down into five specific prohibitions, the first focused on app stores, the others on other internet service providers. Only the first prohibition was due to come into effect at the end of September, with the others applying from mid-November. Therefore the September injunction only dealt with the first prohibition.

Though, before the other prohibitions could come into force, a separate injunction was issued by a court in Pennsylvania following legal action by three TikTok creators. That injunction applied to all five prohibitions. Having heard further evidence from both Bytedance and the US government, the DC court has now also extended its injunction to pause all elements of Trump's TikTok ban.

With Trump currently unable to talk about anything without quickly lapsing into meaningless waffle about fictional election fraud, it's not entirely clear where his government is at regarding the terror of TikTok. The extended deadline for getting government approval of the Oracle/Walmart deal - in a bid to satisfy the asset sale order - technically passed last week.

Though political concerns about TikTok and its Chinese owners are not limited to the Trump faction, so simply procrastinating until the Joe Biden government takes over next month isn't necessarily a solution. That said, dealing with the new executive might be less confusing for TikTok's lobbyists and lawyers.

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Night time businesses face eviction in the new year without further government action, says NTIA
The Night Time Industries Association has called on the UK government to extend temporary COVID-19 restrictions on landlords evicting businesses from commercial property, adding that a more long term solution is also required.

As part of the Coronavirus Act 2020 in March, landlords in England, Wales and Northern Ireland were temporarily prevented from forfeiting commercial leases where the leaseholders were in rents arrears. Initially, this measure was put in place until 30 Jun, but as it became apparent that the pandemic would be affecting businesses for longer than initially feared, it was extended to the end of this year.

Now, of course, the end of the year is fast approaching, and, says the NTIA, nearly 80% of night-time businesses are more than six months in arrears on their rent, with no hope of making up that shortfall in the next three weeks. This puts those bars, clubs, music venues and other companies at risk of being evicted from their premises in January.

"Given the time constraints, and the lack of a robust solution to the rising commercial rent issue, the extension of the 'forfeiture moratorium' is now critical to the survival of many businesses", says NTIA CEO Michael Kill.

"Owners are losing their business properties through no fault of their own, exposing themselves to personal guarantees, walking away with debts that they are unable to pay back", he adds. "Thousands of viable businesses are being pushed over the edge, and with that their workforce. The government must also consider that these important cultural and social hubs of communities will be lost forever".

"Each stakeholder needs to share some of the financial burden, and with this recognise a code of conduct which is part voluntary, part mandatory to ensure that businesses, landlords and financial services act appropriately within the ongoing negotiations on rent and mortgages during this very difficult period", he goes on. "The industry is crying out for a clear roadmap and exit strategy, allowing them to plan financially, and with this the ability to pay rent once the doors are back open".

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Warner launches ADA France
Warner Music's label services business ADA continues its global expansion, this time launching a new division in France. The new division will be headed up by Alassane Konaté, founder of French indie label Din Records.

"France's music scene is thriving at the moment and the independent scene has never been stronger, so I'm delighted to be able to take on this new role to help it develop even further", says Konaté. "I'm looking forward to partnering with labels and being able to tap into the global Warner Music network to give them the worldwide exposure".

Konaté will report into the incoming President of Warner Music France Alain Veille, who adds: "Our independent partners make up such an important part of France's rich and diverse music scene. I'm delighted that Warner Music France now has a designated division to help super-serve them and propel them even further. Alassane's entrepreneurial way of thinking and his great reputation within the independent scene make him the perfect person to lead ADA France".

Meanwhile, Eliah Seton, who oversees ADA globally as Warner's President Of Independent Music & Creator Services, chips in: "The global independent scene is rapidly growing and producing world-class music. At ADA we've been building a global strategy to help support the vast array of talent around the world and I'm excited to extend our operation into France. I'm looking forward to partnering with Alassane and Alain to find new opportunities for France's independent labels and artists".

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Sony Music's merch business buys Probity
Sony Music's merch business The Thread Shop has expanded again through another acquisition. This time it has bought UK-based Probity, which will become, and I quote, an "entrepreneurial division of The Thread Shop" led by its founder Mark Stredwick.

Confirming the deal, the head of The Thread Shop, Howard Lau, says: "We are very pleased to be further enhancing the reach and competitive capabilities of The Thread Shop around the world with the welcome additions of Mark Stredwick and the Probity team".

"Probity is an established independent leader in the European merch market representing some of the world's most iconic music artists", he goes on. "Together we can offer our artist clients and the music community an even more robust set of merchandising opportunities to complement their music revenues, branding, and marketing".

Meanwhile, Stredwick himself adds: "We are delighted to fully cement the organic relationship we had already developed with Howard and Sony Thread Shop. The deal with Sony allows our growing roster to tap into more opportunities globally and benefit from innovative and creatively driven merchandising programmes that Thread Shop deliver with such passion".

Artists that Probity work with - and therefore bring to Sony's expanding merch business - include Metallica, Noel Gallagher, Oasis, Paloma Faith, Rage Against The Machine, Robert Plant and Van Morrison.

The expansion of The Thread Shop in recent years has involved some other acquisitions, including another UK-based outfit Kontraband and the music merchandise division of US theatre firm The Araca Group.

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Futureheads' Barry Hyde launches new music degree course out of his Sunderland venue and studio
Barry Hyde of The Futureheads has teamed up with fellow musician Dan Donnelly to launch the Northern Academy Of Music Education, which will provide degree level music courses in partnership with the University Of Sunderland. Producer Paul Epworth has also been announced as a patron of the new music education initiative.

Formally launching his new degree programme, Hyde said: "This is a programme designed for the 21st century music business. It's no longer enough to be just a musician; you have to be a business-person, an entrepreneur, an A&R specialist, a social media expert. And although you will learn all of these things, we haven't forgotten the most important factor of all – making great music".

Part of the degree course will be run out of The Peacock, the Sunderland venue Hyde and Donnelly took over last year. As well as a bar, restaurant and 220 capacity venue, that complex includes a rehearsal and recording space called Birdland Studios. That's where some of the degree course - and other music workshops for the local community - will be run.

Confirming his support for the scheme, Epworth added: "I'm flattered and honoured to be involved in such an important project to provide educational access to students from a broad range of backgrounds and abilities. With the experience that Barry and Dan have gained over their years in the music industry, there can be no better set up to offer educational opportunities to the community".

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DEALS

Wise Music Group has acquired the publishing catalogue of legendary Italian film composer Riz Ortolani, who died in 2014. "The rich legacy of his work in the world of Italian film music and beyond into Hollywood is something that we feel honoured to protect and build on through our global network", says Wise Music CEO David Holley. "We look forward to creating fruitful opportunities for this stellar collection of rights".

Sony/ATV has extended its deal with songwriter and producer Mark Ralph. "The six years I've spent with Sony/ATV thus far has been fruitful and exciting, in equal measure", says Ralph. "I'm excited to be extending our relationship and look forward to building upon everything we've achieved so far".

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APPOINTMENTS

Sony Music has appointed Jean-Sebastien Permal to the role of Director Of A&R, Continental Europe And Africa. "With his deep roots in African and European music, Seb is well-positioned to connect the dots among our A&Rs across the world to help artists succeed on a global scale", says Daniel Lieberberg, Sony's President Of Continental Europe And Africa. "He is one of the most creative and well-connected executives in both regions and a most valuable source of expertise for our artists and creatives".

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RELEASES

Sinead O'Connor is set to publish her autobiography, 'Rememberings', on 1 Jun next year. "This is my story, as I remember it. I had great fun writing it over the past few years", she says in a statement.

Foxes has released new single 'Hollywood'. "Anyone who has spent some time in Los Angeles will understand the long shadow that amazing city can cast", she says. "When you step away from the glimmering lights and the star-studded parties it can be a hard place, echoing with feelings of loneliness, isolation and rejection. I wrote this song after an extended stay in West Hollywood when I was feeling completely overwhelmed and really struggling as a young artist trying to make sense of it all".

Kathryn Williams and Carol Ann Duffy have released festive single 'Snow Angel'. "This project with Carol Ann Duffy is a dream come true", says Williams. "I am an absolute fan of her poetry and have been for a long time, and to work with her words has been a joy. The collaboration was much more blurred with Carol Ann, she helped with the melody and I had lyric ideas too".

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GIGS & TOURS

Nadine Shah has announced that she will perform her latest album, 'Kitchen Sink', in full at the Barbican in London on 30 Mar. "My fourth album 'Kitchen Sink' is my proudest work to date", she says. "It's only right that her first live outing not be in any old shit hole!" Tickets are available both to watch in person and online.

Check out our weekly Spotify playlist of new music featured in the CMU Daily - updated every Friday.

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Dave Lee Roth really hates beach balls
Van Halen vocalist Dave Lee Roth really hates beach balls. Like, really hates them. Just hates them so much. Or so says his bandmate in the final incarnation of the band, Wolf Van Halen.

That little bit of trivia helps explain the grand finale of what turned out to be the band's last show, back in October 2015 - before guitarist (and Wolf's father) Eddie Van Halen's death this year - which it turns out was actually a practical joke at Roth's expense.

"Throughout the whole tour, Dave had an issue whenever someone in the audience had a beach ball", Wolf Van Halen tells Spin. "Outdoor theatre, summer concert, Southern California party rock, Van Halen - it's not out of the ordinary. But every time he saw them, it would really upset him for some reason".

"He would stop singing and then stand at the front of the stage and say, 'throw the beach ball up here, throw the beach ball up here, throw the beach ball up here' eight times until it eventually got up, and he would stamp it out", Van Halen adds. "Then he'd throw it off the stage. I guess he just really didn't want that out there".

What could have happened in DLR's past to make him hate beach balls so very much? No one bothered to find out. Instead, the band and their crew just thought up a way to wind Roth up further.

"Before the very last show, the tour manager came up to my dad and me and whispered, 'Hey, we've got a funny little surprise for all of you guys at the end of the show'. We're like, 'What?' And he goes, 'At the very end of 'Jump' when you're doing the ride out, we're going to release 50 beach balls from the top of the audience. And we'll just see what happens'".

The plan sounded risky, but, as Van Halen points out: "Even if he gets pissed off, what was he gonna do? It's the last fucking show. And sure enough, we get to 'Jump', and there was just a cavalcade, an avalanche of beach balls, and Dave was just, like, short-circuiting".

"He didn't understand how to handle it", he goes on. "But we all laughed it off. And it was just really fun, almost like a fun practical joke. And yeah, that was a really fun memory of that show. As time went further and further by, the more I thought about it like, 'wow, if that is the last show, what an amazing way to cap it off'".

He adds that ending it all on a joke would be "exactly how dad would have wanted it".

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