In today's CMU Daily: US Copyright Office will look at how AI can be licensed to generate revenue for music creators - but is a compulsory licence actually what the music industry needs or wants? BMG's Coesfeld continues radical restructure, with revamp of US top team.

Also today: Manchester music venue Night & Day will return to court to fight noise abatement order next week - but what does it mean for mayor Andy Burnham's 'music city' ambitions?

Plus: Music Producers Guild's Matt Taylor looks ahead at 2024; Barn On The Farm hiatus shows continuing crisis for indie festivals; and why Lucian Grainge would be proud of the lengths Swedish black metal band Ghost are prepared to go to in order to super serve the needs of their of their superfans.

CMU Masterclass: The Music Business In 2024

Upcoming CMU Masterclass The Music Business In 2024 provides an overview of key trends and developments in the music business over the last year, and will bring you fully up to speed on the current challenges and opportunities in the recording, publishing and live sectors.

Whatever role you have in the music industry, this masterclass will ensure that you have a full understanding of the wider business in 2024.

Most people working in the music industry specialise in one revenue stream, which means artists have multiple business partners, working with different companies in each strand of the business, so in the record industry, music publishing, merch, live and direct-to-fan.

In The Music Business In 2024 masterclass we’ll outline current trends for each revenue stream and how those trends are having an impact on people and companies that work in that part of the business.

Book your place on this masterclass for our early bird rate of just £59 inc VAT - or book the series of eight masterclasses for £299 inc VAT. Early bird pricing ends this week.

US Copyright Office to investigate how to license AI companies to generate revenue for music creators

The General Counsel of the US Copyright Office, Suzy Wilson, has said that the government body is considering possible licensing models that would allow copyright owners and creators to be compensated if their work is used to train a generative AI model. That suggests compulsory licensing is one option being considered, though Wilson admitted that the music industry in particular has raised concerns about that approach.

The Copyright Office's top lawyer was speaking at an intellectual property conference staged by the New York City Bar. "When we talk about compulsory licensing", she said, according to Law360, "we have already heard from the musicians and songwriters who have experience with the licensing model in other contexts, and they raise a number of questions about whether or not that would be appropriate".

Recordings and songs are already subject to some compulsory licences in the US, meaning that - in some circumstances - copyright owners and creators are obliged to allow their music to be used, with the payments they receive set by the Copyright Royalty Board. That includes the use of recordings by online and satellite radio services and the mechanical copying of songs. Songwriters in particular argue that the existence of a compulsory licence has resulted in their rights being consistently undervalued.

When it comes to the training of generative AI models, there is still a debate over whether or not AI companies even need to secure a licence from, or pay any money to, rights owners and creators. Many tech companies argue that AI training constitutes fair use under American copyright law, meaning they do not need to get permission when using existing content for training purposes.

One of the questions posed by the Copyright Office, when it launched its consultation on AI last year, was whether or not permission was required. But it also invited respondents to share their views on "what kind of remuneration system(s) might be feasible and effective", should it turn out AI training does indeed need to be licensed.

With the copyright obligations of the AI companies being tested in court, where a number of lawsuits have been filed by copyright owners, Wilson said that identifying workable and fair licensing models was one of the major issues that the Copyright Office is looking to address via its AI consultation. She added: "We are aware there is some licensing going on in the [AI] space and we've asked people to inform us about that".

It is true that some AI companies are using licensed content to train their models, and therefore the licensing arrangements they have negotiated with rights owners could create some sort of template for future deals.

However, some of those AI companies, while negotiating licensing deals, nevertheless maintain that AI training is still fair use, so may not be too keen to get involved in a process that sets some industry expectation that licences are required.

Although, if the outcome was a compulsory licence, then maybe they could live with that. Especially if the music community is right in saying that that approach usually results in licensees getting access to copyright works on the cheap.

Ninja Tune // Product Manager (London/Hybrid)

UK Music // Chief Executive (London/Hybrid)

ONE LINERS

Justin Timberlake, Lil Nas X, live industry freelancers survey + more

LIVE BUSINESS

LIVE has launched a survey titled ‘The Hidden Side of Freelancing 2024’ in order to better understand the experience of freelancers within the live industry. “Freelancers are crucial to the success of the live music ecosystem and our industry relies on them to deliver unforgettable experiences for fans”, says CEO of the trade body Jon Collins. “This survey will give freelancers in our industry the information needed to get the most out of the work they do and help to deliver impact change for every freelancer and the organisations that rely on freelance talent”. Fill in the survey here.

LABELS

Warner Music in Brazil has opened a new HQ in Rio de Janeiro, bringing Warner Music Brazil, Warner Chappell Music Brazil, and ADA Brazil under one roof. "We are THRILLED about the unveiling of our new home”, says Warner Music Brazil President Leila Oliveira. “Our aim is to provide partners and collaborators with an inviting and liberating space for creation. Featuring a spectrum of resources, from recording studios to collaborative lounges, we envision our new office as a vital hub for artists across Brazil - a space where novel ideas and expressions come to life”.

DIGITAL

SoundCloud has partnered with Fadr, Soundful and Voice-Swap to offer AI tools to its users. “At SoundCloud, we take pride in being ground zero for musical experimentation”, says CEO Eliah Seton. “That’s why we’re home to what’s next in music. AI is top of mind for us in this context, and we’re excited about how this technology can be applied to serve and empower artists. These partners, which we’ve selected intentionally, reflect the very best of what the industry has to offer in this arena: tools that open up new creative avenues and make artists’ lives a little bit easier”.

FUNDING

The latest round of artists to receive support from the PPL Momentum Music Fund have been announced. They are: Alex Virgo, Cardinal Black, Cloth, CVC, Dani Larkin, Facesoul, Ishmael Ensemble, Lambrini Girls, Melin Melyn, Speakers Corner Quartet and Walt Disco.

GIGS & FESTIVALS

Morrissey has cancelled two shows in California marking the 20th anniversary of his ‘You Are The Quarry’ album tonight and tomorrow “due to unforeseen circumstances”. I’m not sure Morrissey cancelling a show can ever be deemed entirely unforeseen, but that’s all we know right now.

RELEASES

Justin Timberlake has released new single ‘Selfish’. His new album ‘Everything I Thought It Was’ is out on 15 Mar.

Lil Nas X is back with another new song, ‘Where Do We Go Now’. It’s taken from the documentary ‘Lil Nas X: Long Live Montero’, which will arrive on HBO in the US tomorrow.

Yungblud and Lil Yachty have partnered on new single ‘When We Die (Can We Still Get High?’

Ice Spice has released new single ‘Think U The Shit (Fart)’.

Liam Gallagher and John Squire have announced that they will release their joint album ‘Liam Gallagher John Squire’ on 1 Mar. Gallagher reckons “people that are into the Stone Roses and Oasis and that kinda thing” will “fucking love it”. Get a taste of how they’ve incorporated those two influences into their sound on new single ‘Mars To Liverpool’.

Justice have announced they will release new album ‘Hyperdrama’ on 26 Apr. Out now are two new singles, ‘One Night/All Night’ featuring Tame Impala and ‘Generator’.

Poppy and Bad Omens have teamed up for new track ‘VAN’.

Elbow will release new album ‘Audio Vertigo’ on 22 Mar. Out now is new single ‘Lover’s Leap’.

Frank Turner will release new album ‘Undefeated’ on 3 May. Newly available is the single ‘Do One’.

Sunny Day Real Estate have released ‘Novum Vetus’, their first new song in a decade (although it was actually written in 1998). The track will appear on the 30th anniversary re-record of their ‘Diary’ album - ‘ Diary (Live At London Bridge Studio)’ - which is set for release on 5 Mar.

Squid have released new single ‘Fugue (Bin Song)’.

The Year Ahead: MPG's Matt Taylor

As we head into 2024, CMU recently sat down with the bosses of many of the music industry’s trade organisations to talk about their work, the key challenges faced by their members, and what to expect in the year ahead.

Today, MPG Executive Director Matt Taylor discusses the organisation's work around AI and credits, as well as its advocacy for recording studios, which resulted in new support from Arts Council England

Precedent-setting Night & Day dispute back in court next week, with Manchester's music city credentials on the line

Manchester music venue Night & Day will return to court yet again next week in its long running legal battle with Manchester City Council over a noise abatement order. The venue and its supporters in the music industry hope that, this time, the dispute will be resolved in its favour. It's a precedent-setting case that also jeopardises attempts by mayor Andy Burnham to position Greater Manchester as a 'music city'.

Urging Manchester City Council to finally put this matter to rest, Night Time Industries Association CEO Michael Kill tells CMU, "it is deeply frustrating that the Night & Day case has reached this point". Music Venue Trust CEO Mark Davyd adds, “the Night & Day case has dragged on for years, costing thousands of pounds and putting the N&D operators and team through extraordinary, and entirely unnecessary, levels of stress and anxiety".

The noise abatement order was issued in November 2021. Night & Day argues that complying with the order would force it to cut back its late night operations, making its wider business unviable. It had been hoped that a court hearing last July would have resulted in the noise abatement order being dropped. However, more acoustic testing at the venue was ordered instead.

Summarising the dispute ahead of next week's court hearing, management at Night & Day said in an update on social media yesterday, "we head back to Manchester Magistrates Court on Monday for our final three-day hearing. We’re hoping to remove the noise abatement notice Manchester City Council environmental health officers served on us over two years ago. The [notice] relates to a single noise complaint from a resident who purchased an adjoining flat during lockdown".

"We maintain the source of the problem is that when the adjoining building was converted from warehouse to flats, no consideration was given to the pre-existing live music venue", they go on. Potential noise issues were raised during the planning process for that building development and, "the council approved the development in full knowledge there would be noise ingress from the venue into certain flats before anyone moved in".

This is why, in Davyd's words, this dispute is "a precedent-setting case". Because the outcome of it will establish "who is responsible, and has a duty of care, to administer and manage the planning process adequately such that threats such as this do not close down vital cultural infrastructure. There was a clear failure in that responsibility and duty that permitted this residence to come into existence without basic protection for the venue".

"A lot of legal time and words have been spent on this case", he goes on, "but in the end it comes down to a straightforward question: If you build a residential space next to a long established grassroots music venue without adequate acoustic protection, whose fault is that? And the answer to that question might have many people that could be implicated or involved, might include failings or unintended errors. But the one party that definitely is not, and cannot ever be, at fault is the Night & Day".

Everyone agrees that Night & Day is a crucial part of Manchester's nighttime economy, having played a key role in transforming the previously run down Northern Quarter of the city into a cultural hub. Burnham, as mayor of Greater Manchester, has put a lot of effort in recent years into championing the city's music credentials and night time economy. However, the actions of Manchester City Council, which Burnham does not control, could scupper a lot of that work depending on the outcome of the Night & Day dispute.

"This matter should never have escalated to such an extent", says NTIA chief Kill. "It should have been dealt with much earlier, rather than subjecting the operator to exorbitant costs and undue stress concerning the future of this cherished live space".

"We urge the authorities to consider the current situation and the process that has led us to this point and the significance of Night & Day and the tremendous value it brings to the community", he adds. "We hope they will address this matter fairly and swiftly, recognising the cultural and economic importance of preserving such venues. Let us support and celebrate our cherished live spaces rather than subjecting them to undue hardship".

BMG's radical restructure continues with revamp of top team in North America

The radical restructure of BMG under new CEO Thomas Coesfeld continues, with a revamp of the company's senior leadership team in the US. This includes new and expanded roles for Jon Loba, currently BMG Nashville President, and Thomas Scherer, currently President Repertoire & Marketing for New York and Los Angeles.

“We are making good on our promise to double down on our US operation with a distinctive new approach", says Coesfeld. That new approach involves "an integrated frontline operation spanning the whole of North America plus a global catalogue business steered from Los Angeles". This, he adds, is "an integral part of our new strategy to deliver for artists and songwriters and go for growth”.

BMG notes that North America, the biggest music rights market in the world, already accounts for more than 50% of its revenues. The changes being made, and increased investment in its US record labels, will, it says, help it further grow its business there.

In terms of the top team, Loba will become President of frontline recordings for the whole of North America, "taking charge of BMG’s entire North American frontline records business across Nashville, Los Angeles, New York and Canada". Meanwhile, Scherer's new role sees him coordinate catalogue recordings on a global basis, while also being President Of Music Publishing for North America. They - along with CFO North America Joe Gillen - will comprise BMG's US-based leadership team.

There has been a series of changes at BMG since Coesfeld took over as CEO last July. He ended the music firm's long-standing partnership with Warner Music's ADA label services division, bringing digital distribution in house and agreeing a new deal with Universal Music around physical distribution.

Next there was some downsizing in October, with redundancies impacting on the firm's international marketing department, those involved in theatre and film projects, and its Modern Recordings label. A complete revamp of the recordings side of the business followed in December, with the aim of applying the firm's approach to publishing to recordings, resulting in "a clear distinction between local expertise in artist relationships and global functions which serve them".

CMU's virtual masterclass Music + AI In 2024 takes place on Tuesday 20 Feb. Attendees can access the session live on Zoom and then on-demand via the CMU learning platform. Click here for information on all of the upcoming CMU online masterclasses and to book your place.

Latest plea for government support as another festival cancels in 2024

The Association Of Independent Festivals has made yet another plea for the UK government to support the independent festival sector. This follows the cancellation of the 2024 edition of Barn On The Farm, the latest event to take a year out due to rising costs and the ongoing effects of COVID losses.

“Barn On The Farm's recent announcement is a further warning sign of the difficult conditions facing independent festivals at the moment”, says AIF CEO John Rostron. “Festivals are being squeezed by the rise in supply chain costs, and the effects of closures and debt incurred during COVID, meaning they are in a unique, perilous position that threatens the future of almost all but the very biggest operators in the UK”.

He then made his now depressingly regular call for the government to drop the VAT rate on ticket sales to 5% for three years “to create the space for festivals to make it through this severe situation and back to the growth we all enjoyed in outdoor events prior to the pandemic”.

Barn On The Farm was set to take place on the first weekend of July, but in a statement yesterday organisers said that “after lots of lengthy discussions we have made the difficult decision to postpone Barn 24, and instead focus our attention on Barn 25”.

Last year’s Barn On The Farm was headlined by Gang Of Youths, Bleachers and Holly Humberstone, and in December was named Best Small Festival at the UK Festival Awards. However, organisers were candid in the months after the 2023 event about the financial losses they had incurred, indicating that it may not be possible to stage their thirteenth festival in 2024.

“As you know the future of independent festivals are uncertain but my god do we need them for new music to survive”, the festival’s statement concluded. “We hugely appreciate every single one of you who supports us moving forward”.

In November last year, NASS Festival announced that it was cancelling its 2024 edition, saying that it was “economically infeasible”. Then too, AIF called for a reduction on VAT for ticket sales, as it - along with numerous other music industry organisations - has done repeatedly since the previous reduction to 12.5%, instigated during the pandemic, ended in 2022.

Critics of the government’s decision to allow VAT rates to return to 20% argue that, by March 2022, the festival sector had not had time to recover from the cancellations that occurred as a result of COVID - not least because we then went straight into the cost of living crisis. Therefore, the industry insists, events still need that support in order to return to financial health.

The government cannot be unaware of this argument, so either does not agree or simply doesn’t care. With a general election looming in the next twelve months, the industry will also be looking to other political parties to pledge support.

AND FINALLY...

How Swedish black metal band Ghost are following Lucian Grainge's advice to focus on the needs of superfans...

CMU's Andy Malt takes a look at this week’s funniest, weirdest or just plain ridiculous music news stories.

This week: Swedish black metal band Ghost have reissued a very special sort of box set...

Superfans of musicians are always looking for ways to get closer to the artists they love. That might involve learning everything about their lives, getting front row tickets, or begging for autographs.

For the most committed of superfans of Swedish metal band Ghost the band has - apparently due to extreme demand - announced a reissue of merch that offers the ultimate way to feel the very closest of connections with frontman Papa Emeritus. Not ones to shy away from the unusual, they have gone to extra lengths to ensure that they can please their fans - in more ways than one, it seems. Lucian Grainge would, I’m sure, approve.

Already doing well at super serving their superfans, the band offer merch on their official website including a comprehensive and diverse - if somewhat confusing - selection of fancy dress, soft toys, tapestries and… other items.