| We've covered the music business each day since 21 Jun 2002 Today's email is edition #5230 |
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| | In today's CMU Daily: Streaming services in Canada will have to start paying 5% of their revenues over to organisations that support Canadian music and radio stations. Which is âgood news for the Canadian music sectorâ, according to the music industry. Or a concerning âprotectionist subsidy for radioâ, if you ask the digital platforms
One Liners: Jessica Vaughn, Maddie Kerr deals; PRS additional royalties; Volvic emerging artists competition; Diddy exits Revolt; SM Entertainment denies NCT rumours; Nia Archives tour dates; new releases from Halsey, Blur, Kaytranada; Jamie xx, To Love x SG Lewis, Confidence Man, Ela Minus, Deadletter, EivĂžr Also today: French collecting society SACEM reports record collections in 2023; Songwriters question The MLCâs success at matching works, reducing the black box and being transparent
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| Canada's new streaming levy is a âprotectionist subsidy for radioâ | The Canadian music industry has welcomed the announcement that streaming services - both audio and video platforms - will be mandated to allocate 5% of their revenues in the country to organisations that support the creation of Canadian music and other content.
However, the streaming services have dubbed the move a âprotectionist subsidy for radioâ that will likely result in subscription price increases adding to the âaffordability crisisâ already hitting Canadian consumers.
So far that criticism has come from the trade body for music streaming services in North America, the Digital Media Association. Though previously Spotify in particular has been highly disparaging of any moves by governments around the world to introduce new costs for streaming platforms. That includes the introduction of direct remuneration rights for performers or, as in Canada, levies to benefit organisations that support music development.
When Uruguay introduced a new performer remuneration right, Spotify announced it was pulling out of the country until it was confirmed that it would be the responsibility of record labels to make the payments. It then threatened to âdisinvestâ from France when a new 1.2% streaming levy was introduced there to provide new funds for the Centre National De La Musique.
The argument put forward by Spotify is that streaming services already pay the lionâs share - 65-70% - of their revenues to the music industry and therefore can't accommodate any other costs. Ultimately in France - after its tantrum - Spotify passed the 1.2% onto its customers, announcing last week that subscriptions will increase by thirteen cents a month. A similar move in Canada would be more significant given the levy there is 5%.
The legal framework for the Canadian levy comes from the countryâs Online Streaming Act, which left it to the Canadian Radio-Television And Telecommunications Commission to sort out the specifics of how the levy would actually be implemented.
According to the CRTC, the 5% paid over by music streaming services breaks down as follows: 2.5% will go to the music industry supporting FACTOR, Musicaction, Starmaker Fund and Fonds RadioStar; 1.5% will go to a new fund supporting local news production by commercial radio stations; 0.5% to the Community Radio Fund Of Canada; and 5% to funds supporting Indigenous music and audio content.
FACTOR, which runs various schemes to support the Canadian music industry, is currently funded partly by government and partly by levies paid by commercial broadcasters. With streaming services arguably competing with radio, especially among younger consumers, some in the music community have been calling for the digital platforms to provide funding for FACTOR moving forward.
Andrew Cash, CEO of the Canadian Independent Music Association, said that the CRTCâs decision regarding the levy was âgood news for the Canadian music sector. As we look towards the future of music in Canada, this decision lays the groundwork for a dynamic partnership with digital platforms where Canadian talent can thrive both domestically and internationallyâ.
But Graham Davies, CEO of the Digital Media Association, said his members were âdeeply concerned with todayâs decision to impose a discriminatory tax on music streaming services that are already making significant contributions to Canadian artists and cultureâ.
Noting that a chunk of the levy will go into the radio sector, he continued, âStreaming is the main source of revenue and engine of growth for music in Canada, benefiting the industry, creators, fans and consumers. And this is effectively a protectionist subsidy for radioâ.
Hinting that the move will likely result in higher subscription fees for users in the country, he added, âAs Canadaâs affordability crisis remains a significant challenge, the government needs to avoid adding to this burden. This is especially true for younger Canadians who are the predominant users of audio streaming servicesâ.
He then concluded, âWe will be carefully reviewing todayâs decision with our members in order to plan next steps accordinglyâ. | Read online | |
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| | | | | | | | | | | | | | Horizon is CMU's new weekly newsletter - published each Friday - that brings you a hand-picked selection of early-stage career opportunities from across the music industry.
Whether you're looking for your first job in music or you're ready to take a step up, Horizon is here to help you find your dream job faster.
đ Click through to see the current selection. | |
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| Halsey, Diddy, PRS For Music + more | DEALS
Peermusic has signed Jessica Vaughn to a worldwide publishing deal. âI have been in the music industry for over twenty years now, and Iâve never been more excited and confident that I have picked the right teamâ, she says. âWhile Peermusic is the largest global independent publisher in the world, their ability to be present with their creatives is their super powerâ.
Concord Music Publishing has signed Mercury vocalist Maddie Kerr to a worldwide publishing deal, covering her full catalogue and future works. âWorking with the Concord team has been an incredible honour and one of my most treasured experiencesâ, she says. âThey are all so excited about music and passionate about their people. I feel so seen and accounted for and am so excited to continue my work with themâ.
PRS For Music has announced that its members will receive an extra ÂŁ6 million in royalties after the UK song rights collecting society managed to reduce its administration rate on multi-territory online royalty collections from 10% to 8%. âI am delighted to announce that the reduction in multi-territory online licensing admin fees is a real tangible example of how we are constantly working on behalf of members to be competitive, and to get more money to them, more quicklyâ, says CEO Andrea Czapary Martin.
Anne-Marie is fronting a Volvic campaign to find emerging artists to play The Birdcage Stage at this yearâs BST Hyde Park festival in London. You have until 14 Jun to submit entries, with nine winners to be announced on 24 Jun. âMaking it as an artist is hard, so I understand the impact this support can have on you when youâre starting outâ, says Anne-Marie. âI love hearing new voices and talent so I couldnât be more excited to begin the search with Volvic supporting the next generation of a music community that has made me so happy and given me so muchâ.
ARTIST NEWS
Diddy is now âcompletely separated and dissociated fromâ from the Revolt media company he founded, CEO Detavio Samuels has told The New York Times. The rapper stepped down as Chair last November after a number of sexual assault lawsuits were filed against him. He has now sold his entire stake in the business, with the company announcing that its employees are to become its largest shareholder group.
K-pop company SM Entertainment has denied claims that two members of one of its groups, NCT, used drugs and paid for sex while in Japan. The rumours, having originated in Japan, emerged on South Korean message boards yesterday and caused the companyâs share price to fall by more than 8%. The agency said that the âsensational rumoursâ are âentirely false and constitute criminal acts that severely damage the artists' reputationsâ. It added that it plans to take legal action against the people who posted the claims.
LIVE
Nia Archives has announced UK and Ireland tour dates in October and November, including two nights at Brixton Academy in London on 6 and 8 Nov.
RELEASES
Halsey has released new single âThe Endâ. The track is taken from a new album inspired by their private battle with lupus.
Blur will release live album âLive At Wembley Stadiumâ on 26 Jul. It features songs from the bandâs two shows at the venue last summer. A concert film will follow on 6 Sep. You can watch a teaser trailer here if you really want.
Kaytranada has released new single âDrip Sweatâ featuring Channel Tres. His new album âTimelessâ is out on Friday.
Jamie xx has announced that he will release his second solo album âIn Wavesâ on 20 Sep. Out now is new single âTreat Each Other Rightâ.
Tove Lo and SG Lewis have announced that they will release a collaborative EP called âHeatâ on 14 Jun. The pair also appear on Nelly Furtadoâs new single âLove Bitesâ.
Confidence Man will release their third studio album â3AM (La La La)â on 18 Oct. Out now is new single âI Canât Lose Youâ.
Ela Minus is back with new track âCombatâ, her first solo release since her brilliant debut album âActs Of Rebellionâ in 2020.
Deadletter have shared new single âMotherâ. Their debut album âHysterical Strengthâ is set for release on 13 Sep. Theyâve also announced UK tour dates in November. EivĂžr has released new single âUpp Ăr Ăskuniâ. Her new album âEnnâ is out on 14 Jun.
| Read online | | SACEM reports total collections of âŹ1.48 billion for 2023 | French collecting society SACEM is the latest rights organisation to publish its figures for 2023, bragging total collections of âŹ1.48 billion, up 5% on 2022. It distributed âŹ1.23 billion to its songwriter and publisher members.
Like PRS in the UK, SACEM now talks up the lowering of its admin costs as much as its record breaking collections, which seems like something collecting societies should be focused on. âSACEM has made controlling its costs a priority, managing to reduce its net operating costs-to-collections ratio for the second year runningâ, its statement earlier today declares.
Thatâs the percentage of collections spent on running the society, which was 10.76% in 2023 compared with 11.65% in 2022. Of course, with certain economies of scale, as total collections go up you would naturally expect running costs, as a percentage of collections, to go down. But well done everybody for trying to get as much cash as possible to songwriters and publishers.
As with PRS, which published its 2023 figures last week, broadcast royalties were down at SACEM last year, by 4% compared to 2022. However, digital income was up by 13%, while a category with the super useful label of âgeneral royaltiesâ - which includes the live and public performance of music - was up 18.5%.
SACEMâs total collections are somewhat higher than PRS. Converted into pounds, SACEM collections come in at ÂŁ1.26 billion, compared to total PRS collections of ÂŁ1.08 billion. Although more revenue streams pass through SACEM than PRS.
In the UK, there is a separate collecting society for mechanical royalties, MCPS, and a decent portion of digital income flows directly to the music publishers rather than going via the collective licensing system. With French repertoire, SACEM handles all the digital licensing.
As well as keeping its costs down, SACEM says it is also working to make payments to its members faster. Indeed, it says, it âaccelerated collection and distribution activitiesâ in 2023.
For those general royalties, and income from streams on Spotify and Apple Music, payments are now distributed âthree months after the quarter of exploitationâ. YouTube music royalties will also be paid on that timeline from next month. Which, SACEM reckons, makes it âthe most diligent society in Europe in terms of paying out main online royaltiesâ.
Commenting on the figures, CEO CĂ©cile Rap-Veber hails the organisationâs work to âimprove efficiencyâ which has âoptimised both our collections and the amount distributed to our membersâ. She then adds, âLooking beyond the figures, we have worked to provide social and professional support for our members and have continued to defend our collective management model in the face of competition and technological upheavalâ.
âSACEM certainly wants to be efficient for its members", she continues, âbut it also wants to be useful for everyone, for its customers, its partners, for all those who make music or who simply love itâ.
Seemingly happy with all that, the SACEM board has also announced that its members recently voted unanimously to extend Rap-Veberâs term as CEO. | Read online | | Setlist Podcast: Itâs been a bad week to be Live Nation | In this week's Setlist Podcast: Chris Cooke and Andy Malt discuss the US governmentâs legal action against Live Nation that seeks to force it to sell off Ticketmaster, ticket toutsâ plans to fight the Labour Partyâs proposed 10% price cap on the resale of tickets, and more.
đ§ Click here to listen - or search for 'Setlist Podcast' | | The MLCâs billion dollar black box in the spotlight in US Copyright Office review | The US Copyright Office is currently reviewing whether or not The MLC should continue to administer the compulsory licence used by digital music services in the US, which sets how songwriters and music publishers get paid when their music is streamed.
However, should there even be a compulsory licence to administer? Has The MLC really helped address the music industryâs black box problem, given it will soon be sitting on a billion dollars of black box money? And, assuming the Copyright Office concludes that The MLC should still administer the licence, should that be subject to it achieving certain performance goals?
These are among the questions raised by songwriters and their representatives in submissions made to the review.
Should there even be a compulsory licence?
Activist songwriter George Johnson asked the Copyright Office to review the American compulsory licence that covers the mechanical copying of songs last year. In a letter last June he referenced the history of the compulsory licence, all the way back to 1909, noting that the licence was âdesigned for a different time, for the local sale of piano rollsâ.
No one in the early Twentieth Century could have anticipated how the licence would be subsequently employed, he added, first by record companies and then digital platforms. No one could have anticipated that the licence would ultimately be âused billions of times, by the largest trillion-dollar corporations in the history of the world, with teams of attorneysâ.
In a new submission to the MLC review, Johnson boldly declares that the collecting society - set up by the 2018 Music Modernization Act - is âa failureâ because âthe 1909 compulsory licence is a failure and a really bad idea that has finally run its courseâ.
Johnsonâs basic argument is that the rates paid to songwriters when their songs are copied shouldnât be set by US Congress and a panel of judges - and is the case under the compulsory licence - but should be negotiated on the open market. âWhy is Congress in the songwriter royalty rate business in the first place?â he asks in his submission.
Both songwriters and music publishers have been critical of the compulsory licence of late. The US National Music Publishers Association recently asked Congress to change copyright law so that its members can choose to opt out of the compulsory licence and force digital services to the negotiating table in relation to their specific catalogues.
However, under that proposal, digital services would still be able to rely on the compulsory licence - and The MLC - for all and any songs not subject to an opt-out. That includes songs that are streaming where copyright owners havenât even been identified yet. Which brings us to an issue where there is often tension between writers and publishers: the good old black box. | đ Read the full story online | |
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