As Glastonbury announces its headliners, UK festival cancellations and closures reach 21; Epic accuses Apple of “blatant violation” of App Store injunction

We've covered the music business

each day since 21 Jun 2002

Today's email is edition #5175

Thu 14 Mar 2024

In today's CMU Daily: The UK Labour Party has said that it will introduce a price cap and other restrictions on secondary ticket sales if it wins the General Election later this year (which it probably will)


One Liners: HarbourView, Hyperdub, ShowPlanr, The Halls deals; Deezer interim CEO; US NFT IP report; BPI stats; Spotify adds videos; Restore The Music; Polar Music Prize; Ivors fellowship; Neneh Cherry memoir; Glastonbury line-up; Lee Gamble show; Dua Lipa LP; new music from Poppy Ajuda, Lemon Twigs + more


Also today: Glastonbury’s headliners announced as the number of UK festivals cancelling or closing in 2024 tops 20; Epic has gone to court accusing Apple of a "blatant violation" of an earlier App Store injunction 


Plus: Earth Ball are CMU Approved

Labour commits to UK ticket touting price cap, as Ed Sheeran's team welcomes guilty verdict in ticket tout court case

The UK Labour Party has pledged to introduce a price cap on touted tickets if it wins the next General Election. The announcement comes as two people connected to a former ticket touting operation were found guilty of fraudulent trading in Leeds Crown Court, a ruling dubbed by the promoter and manager of Ed Sheeran - a vocal critic of for-profit touting - as "good news for live music fans" and "an important precedent in the live entertainment industry". 


Labour leader Keir Starmer says his party would pass new laws that would mean touts could only sell tickets for 10% above the face value. He's quoted in The Sun as saying, "Access to music, art and theatre for hard working Brits can’t be at the mercy of ruthless ticket touts driving up prices. Hours spent refreshing ticket resale websites, only to pay through the nose to see an artist you love, is frustrating and unfair". 


The commitment from Labour to new ticket touting laws follows the relaunch of the anti-touting FanFair Campaign last year which, for the first time, called for an outright ban on for-profit ticket resale in the UK, similar to the law already in place in Ireland. Labour's plan - which is similar to laws in place in the Australian state of New South Wales - doesn't quite go that far, although it would still greatly restrict the touting marketplace. 


The secondary ticketing market is already regulated to an extent in the UK, in no small part thanks to the past campaigning of FanFair and Labour MP Sharon Hodgson. However, last year, the UK government declined to proceed with further regulations that had been proposed by the Competition & Markets Authority


Labour's proposals would provide that extra regulation. As well as the price cap, there would be a new rule that restricts how many tickets any one tout can sell for any one show. That would be linked to the maximum number of tickets any one person can buy from the primary ticket seller. Ticket resale platforms would also be accountable for the accuracy of information about tickets they list for sale.


The restriction on how many tickets a tout can sell for each show might actually become law sooner. The House Of Lords yesterday approved a proposed amendment to the Digital Markets, Competition & Consumers Bill which would introduce some extra ticket touting rules, though not a price cap. Although passed in the Lords, that amendment also needs approval from the House Of Commons, where it could be scuppered given the government's current position. 


The commitment from the Labour Party on new touting rules has been widely welcomed by the music industry. However, secondary ticketing platform Viagogo has already indicated it would lobby against any new laws, if and when a Labour government formally proposes them. In a statement, it employs the customary argument that restricting bespoke ticket resale sites would send buyers to other forums where there are less protections against fraud, while also alluding to issues in the primary ticketing market. 


A spokesperson says, “Significant evidence demonstrates that imposing resale restrictions and removing safeguards forces fans to unverified sites and social media, exposing them to a high risk of fraud without any protection. We believe that a comprehensive conversation, focused on practical and effective regulation across the entire ticketing industry, is in the best interest of consumers”. 


Meanwhile, back in the music industry, FanFair Campaign Manager Adam Webb says, “The so-called secondary ticketing market is a completely artificial construct and reliant upon a relatively small number of touts, many of whom are based outside the UK, who hoover up tickets before reselling them at profit on websites such as Viagogo, StubHub and Gigsberg. New legislation has the potential to break that cycle, to put fans first, and to make the UK’s live events sector the envy of the world". 


Sheeran's manager Stuart Camp has also welcomed Labour's commitment. “This is fantastic news. We have spent years fighting the scourge of online ticket touting. The impact of these policies should be monumentally positive and help to reset the UK’s live music market for the benefit of artists and their audiences".


Camp also welcomed the ruling in Leeds Crown Court where two people connected to former ticket touting operation TQ Tickets were found guilty of fraudulent trading. Prosecutors said that the company ran a scheme to circumvent restrictions put in place by official ticket sellers, using "corrupted" students and fictional identities to buy tickets from primary sites. 


The main two people involved in TQ Tickets, Maria Chenery-Woods and Paul Douglas, pleaded guilty before the trial began. However, their respective spouses, Mark Woods and Lynda Chenery, were also accused of involvement in the fraudulent business and the case against them proceeded to court. Where they were found guilty of fraudulent trading offences yesterday. 


The case against TQ Tickets stemmed from an investigation by National Trading Standards, which also resulted in people connected to another touting business, known as Ticket Wiz and BZZ, being found guilty of fraud back in 2020


Welcoming yesterday's ruling, Michael Bichard, Chair of National Trading Standards, says, “This is a landmark case for National Trading Standards and I hope this prosecution supports progress towards a step-change in the secondary ticketing market, making it easier and safer for consumers buying tickets in the future".


Meanwhile, Camp adds, “We want to keep ticket prices accessible for as many people as possible and hope to get everyone a good seat at a fair price. Today’s prosecution will help protect music fans and sets an important precedent in the live entertainment industry that I hope will be celebrated by live music fans". 


Sheeran's promoter, Stuart Galbraith from Kilimanjaro Live, was a witness involved in the case against TQ Tickets. He adds, “Today’s verdict is good news for live music fans, who are too often ripped off and exploited by greedy ticket touts”. 


“For Ed Sheeran’s 2018 UK tour we helped thousands of fans at our ‘Victims Of Viagogo’ kiosks at the box office, where we reissued 6300 tickets and helped people get over £600,000 in combined refunds from Viagogo”, he continues. “But this only helps victims after the crime, which is why we welcome today’s prosecution and the strong message it sends to greedy ticket touts looking to exploit genuine live music fans”.

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ONE LINERS

Hyperdub, Deezer, Dua Lipa + more

DEALS


HarbourView Equity Partners has secured $500 million in debt financing, led by KKR and secured in part on its music rights catalogue. KKR recently had a music-related pay day when Universal Music paid $240 million for its 25.8% stake in another music rights acquiring investment entity, Chord Music Partners. Says HarbourView CEO Sherrese Clarke Soares, “We are grateful to KKR for working with us to deliver a flexible and innovative financing structure that will support HarbourView in expanding its reach. This capital will allow us to further our mission of investing in assets and companies driven by premier intellectual property while striving to ensure that creators are appropriately valued for their contributions to the world”.


Beggars Music is to take over the administration of Hyperdub’s publishing catalogue, reports Music Week. The deal also includes the acquisition of Burial’s full songs catalogue. “We are THRILLED to be in business with Hyperdub, one of the most iconic and influential electronic music labels of our time”, says Beggars Music’s Head Of Creative Molly O’Brien. “We feel a kinship in their approach to nurturing truly unique and groundbreaking talent and feel that the Hyperdub writers will complement the Beggars Music roster perfectly, while occupying a distinct space”.


KMJ Entertainment owner DEAG has taken a majority stake in UK promoter ShowPlanr. “ShowPlanr has firmly established itself in the UK entertainment market in recent years”, says KMJ CEO Stuart Galbraith. “We have worked closely and trustfully with ShowPlanr on a number of occasions through our UK sister companies in the DEAG family. We look forward to developing new formats and opening up new locations together in the future, as well as continuing to offer visitors first-class entertainment”.


The University Of Wolverhampton has acquired the naming rights for The Halls venue complex in the city. It will now be called University Of Wolverhampton At The Halls, which is confusing and stupid. Well done, everyone. "We’re delighted to bring together two stalwarts of the local community through this partnership”, says Will Dowdy of venue operator AEG Europe. "We’re excited to see how the partnership will develop over the years”.


APPOINTMENTS


Deezer has named Stu Bergen as its interim CEO, taking over from the departing Jeronimo Folgueira while a permanent replacement is sought. The former Warner exec has been on the Deezer board since February last year. ”I am honoured to accept the interim CEO role at Deezer at this pivotal time”, he says. “I am committed to strengthening the company's values and driving its growth trajectory forward. With the dedicated team and clear objectives already in place, I am eager to lead us through this period of transition, ensuring the company is prepared for its ambitious future”.


LEGAL


The US Copyright Office and US Patent And Trademark Office have together published a report on the intellectual property questions posed by NFTs. It was commissioned back in 2022 when people still cared about these things. Their conclusion? "The offices concluded that current applications of NFT technology do not require changes to intellectual property laws". So that's all right then. You can read the report here if you like


LABELS


UK recorded music revenues increased 8.1% to £1.43 billion last year. Streaming was up 8.4% to £962 million and accounted for 67.4% of total income. Revenues from vinyl sales were up by 18.6% to £141.6 million, while CD sales also saw an increase, by 5.4%, to £97.2 million. These are the top line stats from a new report published by record industry trade group BPI. A number of record industry organisations around Europe have published their 2023 figures in the last week, ahead of the publication of the IFPI's 'Global Music Report' next week. We will review the stats from those key markets in tomorrow's CMU Daily. 


DIGITAL


Spotify is testing providing music videos within its app. Users in eleven territories have access to the beta test. “So many times in my own experience and for countless others, music videos play a key role in hooking you: taking you from being a listener to leaning in and becoming a fan”, says Charlie Hellman, Head Of Music Product. “They’re an important part of so many artists’ toolkits, and it’s a natural fit for them to live in the same place that more than half a billion people choose to listen to music”.


EDUCATION


Music charity Restore The Music has announced that its latest funding round has awarded £180,000 in grants to the music departments of eleven state schools in London, Newcastle, Manchester and Birmingham. “Music has the power to transform children’s futures and we are determined to continue to assist in safeguarding those futures and this country’s creative economy, by investing at the very grassroots of the talent pipeline”, says CEO Polly Moore. “External investment in school-centred music provision is sorely needed and this movement is a perfect collaboration of music partners such as Sony Music UK, aligning to deliver a singular vision: access to more music for more kids”.


AWARDS


Nile Rodgers and Esa-Pekka Salonen have been announced as the recipients of this year’s Polar Music Prize. “Nile’s impact in pop culture is incomparable and his timeless songs will continue to delight, uplift and inspire for many years to come”, says the award’s Marie Ledin. “Esa-Pekka Salonen is an innovator. His artistic curiosity, creativity and forward-thinking approach to composing and conducting paves the way in classical music”. They will formally be handed their trophies (and £75,000 prize money) at a ceremony in Stockholm on 21 May.


The Ivors Academy has announced that James MacMillan is to become the latest recipient of its Academy Fellowship. “It is a great delight and honour to be welcomed as a new Fellow of the Ivors Academy”, he says. “It is humbling to read the list of Fellows and I will take this opportunity to rededicate my energies to the power of music and its mysterious ability to transform lives”. He will be given the prize tomorrow night at the Barbican, where he will be conducting the UK premiere of his latest work ‘Fiat Lux’.


ARTIST NEWS


Neneh Cherry will publish her memoir ‘A Thousand Threads’ on 3 Oct. 


GIGS & FESTIVALS


Coldplay, Dua Lipa and SZA will be headlining this year’s Glastonbury Festival. It will be Coldplay’s 7008th time topping the bill. Other performers set to play include Shania Twain, LCD Soundsystem, Lil Simz, Burna Boy, PJ Harvey, Idles, Disclosure and The National.


Lee Gamble and Marina Herlop will play at London’s Barbican on 31 May. Gamble will perform his latest album ‘Models’ in collaboration with choreographer Candela Capitán. Tickets go on general sale tomorrow. 


RELEASES


Dua Lipa has announced that she will release her new album ‘Radical Optimism’ on 3 May. “A couple years ago, a friend introduced me to the term ‘radical optimism’”, she says. “It’s a concept that resonated with me, and I became more curious as I started to play with it and weave it into my life. It struck me – the idea of going through chaos gracefully and feeling like you can weather any storm. At the same time, I found myself looking through the music history of psychedelia, trip hop and Britpop. It has always felt so confidently optimistic to me, and that honesty and attitude is a feeling I took into my recording sessions”.


Poppy Ajudha has released new single ‘My Future’


The Lemon Twigs have released new single ‘A Dream Is All I Know’. Their new album ‘A Dream Is All We Know’ is out on 3 May.


The KVB have released new single ‘Overload’. Their latest album ‘Tremors’ is out on 5 Apr. 


Drahla have released new single ‘Grief In Phantasia’. Their second album ‘Angeltape’ is out on 5 Apr.

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Approved: Earth Ball

Earth Ball’s energetic, improvised live shows have been “known to make headliners nervous”, according to fellow Canadian experimental musician Alex Moskos. Now the band, who formed in 2020, are readying themselves to release their debut album ‘It’s Yours’ on UK label Upset The Rhythm


Out now is new single ‘A Need To Cool Down’, which captures the explosive energy of their performances, rocketing forwards with no wave riffs until its eventual collapse about six minutes in.


Vocalist Isabel Ford says the track represents "the moment in the cycle of release and repression where you get explosively birthed out of a canal only to be hit by a truck seconds later. Cool it, it's temporary”.


As well as putting out the album on 17 May, the band will be in the UK for tour dates the same month, kicking off with two nights at Cafe OTO in London on 20-21 May.


🎧 Listen to ‘A Need To Cool Down’ here.

Glastonbury announces headliners, as UK festival cancellations pass 20

This year’s Glastonbury headliners have been announced, with Coldplay, Dua Lipa and SZA set to take to the Pyramid Stage in June. But at the same time, smaller festivals are struggling. The Association Of Independent Festivals announced today that more than 20 have now been postponed, cancelled or shut down entirely in 2024. 


In the last few days, the Nibley Festival has announced that its 2024 edition will be its last, and the Bingley Festival has cancelled its 2024 edition. That brings the total number of UK festivals not going ahead or coming to an end in 2024 to 21. And AIF says that without government intervention, that number could rise to more than 100.


“It’s with grave concern that we again sound the alarm to government upon passing this critical milestone”, says AIF CEO John Rostron. “UK festivals are disappearing at a worrying rate, and we as a nation are witnessing the erosion of one of our most successful and unique cultural industry sectors”.


Festival overheads have increased dramatically in the last year. Glastonbury counteracted this with a big ticket price hike - but was able to do so in the knowledge that hundreds of thousands of people will try to buy those tickets the moment they go on sale, even with the increase in price and without any artists having been announced. 


Other festivals are more nervous about instigating dramatic price increases. And while some independent festivals do enjoy a loyal audience who will also buy tickets as soon as they go on sale, there is another problem when it comes to setting the price. 


Those festivals often put tickets on sale for the next year as soon as any one edition has occurred, but in the current market it can be hard to anticipate just how much production costs will increase in the year ahead. Generally initial ticket prices are in the ballpark of the just staged edition, but from there costs have a long time in which to go up. And gone up they have.


Many of the issues stem from the COVID-19 pandemic, and the costs of running a festival have continued to rise since the lifting of the last lockdown. Key parts of the supply chain have been constricted, with many suppliers no longer in business. The raw materials for building festivals have gone up in price dramatically. And the pool of people available to work on festival builds has also shrunk.


It is not impossible to save the sector from further dramatic losses though. Many industry bodies have been calling for a reduction in VAT on ticket sales from the current 20%, and last month AIF launched its '5% For Festivals' campaign.


“We have done the research”, says Rostron. “A reduction of VAT to 5% on festival tickets over the next three years is a conservative, targeted and temporary measure that would save almost all of the festival businesses that are likely to fall by the wayside this year and many more over the years to come. We need this intervention now”.


The government did reduce VAT on ticket sales during the pandemic to 12.5%, but this came to an end in 2022. Since then, there have been repeated calls from the industry to instigate a new reduction in order to aid the festival and wider live sector’s recovery. To date, there has been no indication that the ruling Conservative Party has any desire to do so - it was again missing from the latest budget when announced by Chancellor Of The Exchequer Jeremy Hunt last week


As well as lobbying the Tories, industry reps are also turning their attention to the other political parties for support now that a General Election is looming. It’s expected that the Labour Party will be in power after that vote and that the Kier Starmer led party may be more inclined to throw festivals a lifeline. However, if the election does not happen until the autumn, as is currently expected, it may be too late for many events.

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Setlist Podcast: Apple blames Spotify for €1.8 billion fine

On this week's show we discuss the €1.8 billion fine Apple has been ordered to pay by the EU following an investigation into claims of anti-competitive behaviour made by Spotify, and Live Nation's explanation of why everyone else in the music industry is to blame for rising ticket prices.


🎧 Click here to listen - or search for 'Setlist' wherever you normally listen

Epic returns to court in California over Apple's "blatant violation" of App Store injunction

Fortnite owner Epic Games has filed new legal papers with the courts in California over Apple's plans to comply with an earlier ruling that forced a change to its App Store rule regarding the sign-posting of alternative payment options, aka the anti-steering provision. The gaming company argues that Apple's plan is a "blatant violation" of the court's order and will "nullify" what the court sought to achieve. 


"Compliance with the injunction should have been simple", Epic's filing states. "All Apple needed to do was to remove the illegal anti-steering language from its App Store Review Guidelines so that developers could provide truthful information to users and enable them to act on it. But Apple chose a markedly different path". 


The latest bust-up between Epic and Apple in the Californian courts comes as the now-in-force Digital Market Acts in the European Union starts to have an impact on Apple's rules within the EU, an impact that has already benefited Epic. The gaming firm will be following developments in Europe closely, as the changes Apple makes in the EU to comply with the new regulations may demonstrate that what the tech giant has previously said is not possible is, in fact, possible. 


Epic accused Apple of violating US competition law with its App Store rules around in-app payments. In the main, those arguments failed in court. 


However, the judge did conclude that the anti-steering provision - which stops app developers from sign-posting payment options outside their iOS apps where they don't have to pay Apple a commission - was in breach of Californian law. That decision was upheld on appeal and the US Supreme Court declined to hear the case. 


Apple subsequently announced it was amending its rules in the US to comply with the judgement. However, while app developers will be able to sign-post alternative payment options under the revised rules, Apple will still charge a commission on any payments that result from users linking through from an iOS app. So much so, app developers argue that they will be no better off under the new rules. 


Noting that Apple filed a 'notice of compliance' with the courts in January after announcing the change to its App Store rules, Epic's legal filing muses that "Apple’s notice is one of non-compliance". It goes on, "Apple replaced its blanket prohibition on steering with an elaborate new scheme that is guaranteed to continue extracting excessive commissions from developers and prevent developers from communicating lower prices on other platforms". 


"Apple is in blatant violation of this court’s injunction", Epic adds. "Its new App Store policies continue to impose prohibitions on developers that this court found unlawful and enjoined. Moreover, Apple’s new policies introduce new restrictions and burdens that frustrate and effectively nullify the relief the court ordered".


Concluding, the legal filing says, "Epic requests the court enter an order holding Apple in contempt for violating the court’s injunction; requiring Apple to promptly bring its policies into compliance with the injunction; and requiring Apple to remove all anti-steering provisions". 


In Europe earlier this week Apple back-tracked on a decision to terminate Epic's developer account after the intervention of EU regulators. As a result, Epic will now be able to restore the Fortnite app and launch an Epic Games Store on iOS devices in Europe. Meanwhile, in order to comply with the DMA, Apple also announced revised App Store rules within the EU which will allow the distribution of apps directly from a developer’s website. 


These changes impact a wide range of app developers, including Spotify, the other high profile critic of Apple's rules. Epic, Spotify and other app developers will continue to put pressure on EU regulators to enforce the DMA in a way that is most beneficial to them. And where Apple makes decent concessions, the app developers will be looking for ways to force those changes into other jurisdictions, whether via litigation or by lobbying regulators.

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