ICE Licensing // Senior DSP Audit & Assurance Manager (London)

ICE Licensing // DSP Audit and Assurance Manager (London)

IDOL // UK Label Manager (London/Hybrid)

Nonclassical // Executive Director (London)

Free Trade Agency // Office Co-Ordinator (London)

Today's music business news

TOP STORY

Universal Music criticised over unannounced change to Pandora payments

CMU can exclusively reveal that Universal Music last year changed the way it pays Pandora royalties to artists, and an increasing number of managers are expressing concern about the change. The lack of communications around the new policy has also garnered criticism, with some Universal-signed artists possibly still unaware that their share of Pandora income is now calculated and paid in a different way than before.

Previously Universal - like other record labels that have a direct licensing arrangement with the US-based personalised radio service - allowed the performer's share of Pandora income to flow through collecting society SoundExchange, with everyone being paid at industry-standard rates.

However, Universal now treats Pandora income like any other streaming income, which can significantly cut the share of the money the artist receives.

Legally speaking, Universal Music is entitled to treat Pandora income in that way. However, Pandora orignally relied entirely on a compulsory licence managed by SoundExchange. And when many labels started doing direct deals with the digital service they agreed to allow the same SoundExchange-managed system to stay in place when it came to paying performers their share of the money.

Under that system, 45% of revenue flows through to the artists, with 5% going to session musicians. However, if Pandora income is paid directly via the label at a contractual royalty rate, what each artist earns depends on their specific record contract. Heritage artists on a 15% royalty will be getting significantly less than before. Meanwhile, session musicians now see nothing at all.

Royalties paid directly by the label are also subject to recoupment, in that the label can use them to pay off unrecouped advances and costs. Whereas money that flows through SoundExchange is not subject to recoupment terms. Sources have told CMU that Universal has committed to pay through Pandora royalties to unrecouped artists for two years, but after that this income stream will be set off against unrecouped balances.

One prominent artist manager told CMU: “This unannounced change by Universal is really difficult for artists, especially older artists who can’t tour. They rely on their SoundExchange money to survive. It’s like waking up one day and seeing your pension or pay-cheque disappear without warning or explanation. And if they can’t tour, they have no way to make up this lost money that will ultimately be applied to some old unrecouped balance".

"The major labels make the majority of the money from record sales", they added. "It’s just the way it is. But does a huge public company like Universal really need to take these pennies away from the artists?”

The change in policy around Pandora payments was also made without consultation or communication, meaning it was left to the business managers and royalty specialists employed by artists to figure out that a change had occurred.

In the UK, London-based Y Royalties spotted the change. The company's Head Of Data James Miles says that they are constantly analysing royalty statements looking for discrepancies. "In this instance, we automatically detected a significant drop in Pandora income in our royalty data”, he explains. “We then connected this to the fact that the performer's share of income from Universal's deal with Pandora was no longer flowing through SoundExchange".

The lack of transparency around streaming deals and digital income has been a big part of the economics of music streaming debate. Universal making a significant change to what is, for some artists, a key digital revenue stream, without consultation or communication, is a good demonstration of that transparency problem.

>> There's more to this story... Click through below to read the full version online.

ONE LINERS

Sam Smith x Charli XCX, 2 Chainz x Lil Wayne + more

DEALS

BMG has acquired the recordings catalogue of producer Martin Solveig. “In the process of selecting a partner to host and preserve my recordings, it was imperative for me to associate myself with a company that understands the intrinsic value of this music and is just as passionate about its future potential as I was in creating it”, he says. “BMG has demonstrated exceptional motivation and a genuine desire to perpetuate the exploitation of the tracks that are dear to me”. Solveig’s first album in over a decade ‘Back To Life’ is out today.

APPOINTMENTS

Digital marketing agency Creed Media has appointed Christian Birch-Jensen as Chief Strategy Officer. “Creed consists of an amazing team that grew up with the formats and the audience that have, and will continue to, disrupt media globally”, he says. “Over the years, Creed has led the market in helping clients reach their goals in an ever evolving media environment and I am THRILLED to be joining them in this next part of the journey”.

LABELS & PUBLISHERS

Universal’s Virgin Music Group is integrating the operations of its two distribution and label services companies, Virgin Music and Ingrooves. VMG co-CEO JT Myers says the restructure is part of efforts to build “a company that combines the industry's leading technology, brand identity and executive expertise with unparalleled global scale in order to help our partners in the independent community to achieve their goals”. A number of new appointments have been made as part of the rejig, including bosses for five regional divisions, and some new globally focused roles, including Jay Blomquist as CTO, Joy Larocca as CFO and Jeremy Kramer as EVP Of Global Marketing. In the UK, Vanessa Bosåen will continue to lead as President while Jim Chancellor will run Fiction Records as a distributed label of Virgin Music Group. Thomas Lorain and Nick Roden, meanwhile, have been named co-Presidents of Virgin Music Group Europe. Phew.

EDUCATION & EVENTS

The UK’s Music Managers Forum has announced that it will hold an Agents & Managers conference on 8 Nov at Rich Mix in London. “Every day, managers and agents operate in close collaboration, working hand in glove to build the live career of their clients”, says CEO Annabella Coldrick. “In such a fast-paced sector, it’s still a rarity that we get to sit down as a group and communicate. I hope this event becomes the first of many and look forward to a productive day of discussions”. View the full programme and book tickets here.

RELEASES

What would happen if Sam Smith and Charli XCX got together and recorded a track? Until now, it’s been impossible to say. But as of today, ‘In The City’ is out in the world, so the question is finally answered. “Charli is a force and getting creative with her is so much fun”, says Smith. “This track is about freedom and those unforgettable nights of abandon. I loved every minute we spent together making it”. Yeah, but did she say she’s throwing toilet water in the opening line?

Paris Hilton’s music career is back on. She’s teamed up with Steve Aoki for new track ‘Lighter’. “My debut collaboration with friend and legendary DJ Steve Aoki reflects years of supporting one another, and this song is the perfect representation of all the epic times we’ve had”, she says. The track will appear on Aoki’s new album ‘Hiroquest: Double Helix’, which is out on 17 Nov, but Hilton has also said that she will release a new album next year.

2 Chainz and Lil Wayne have announced that they will release collaborative album ‘Welcome To GolleGrove’ on 17 Nov. From it, this is ‘Presha’.

Wale has released new single ‘Max Julien’, his first track put out under a new deal with Def Jam.

Beabadoobee and Laufey have teamed up for new single ‘A Night To Remember’. “We wrote ‘A Night To Remember’ and decided we wanted to write something that sounds grand but a bit more sexy lyrically and have fun with that theme”, says Beabadoobee.

Ghetts has released new single ‘Laps’, featuring Moonchild Sanelly. His new album ‘On Purpose, With Purpose’ is out on 5 Jan.

Nadine Shah has announced that she will release her fifth album ‘Filthy Underneath’ on 23 Feb. Out now is new single 'Topless Mother’. "It’s a song about a counsellor I worked with that I couldn’t get along with”, she says. “I’m pretty certain the feeling was mutual. And I’m also pretty certain she’d find this funny. Some people just don’t click and some arseholes like me write songs about it”.

Scaler (formerly Scalping) have released new Daniel Avery produced single ‘New Symbols’. "With ‘New Symbols’ we wanted to act quickly on our instincts and create something a bit more rough and ready”, say the band. “We started with a sturdy, winding groove before adding the blasts of alien vocals and industrial noise”.

Jim Perkins has released two tracks from upcoming new album ‘Imprints’. They are ‘Whispers (Imprint)’ and ‘Whispers (Hybrid)’. The album features four instrumental piano pieces and reworks of each, presenting a solo piano version, a version performed on strings, and then a hybrid of the two. ‘Imprints’ is out on 1 Dec.

GIGS & TOURS

Becky Hill has announced a UK arena tour in October 2024, which will wind up at Wembley Arena in London on 24 Oct. Tickets go on general sale on next Friday.

DIGITAL

Utopia Music appoints new CEO Alain Couttolenc

Utopia Music, the Swiss-based music technology company, has announced the appointment of Alain Couttolenc as CEO.

Couttolenc is an experienced C-level executive with “a track record of maximising growth across international media and data companies”, says Utopia in a press release announcing the appointment.

Most recently Couttolenc served as Chief Development Officer at IPSOS, one of the world’s largest data companies, and before that he was CEO Europe for Nielsen Media.

Utopia has faced a string of controversies over recent months, including the sudden liquidation of a number of subsidiaries and questions about the future of the business. Recently, CMU confirmed that the company was reliant on funds being released from escrow in order to settle various liabilities.

Mattias Hjelmstedt, a co-founder of Utopia, had stepped into the role of CEO on an interim basis in February 2023. He will now resume his former role as Chairman of the Board.

Couttolenc says: “I’m honoured to join such a dynamic company that is supporting the growth of my greatest passion – music. My main focus will be to contribute with what I know best: creating outstanding services by leveraging data and driving growth”.

In a possible nod to the company’s recent troubles he goes on to say: “An important task will be to develop and build teams where people can deliver value and thrive in their roles – clarity, agility, and an open and honest culture will be extremely important for success”.

Commenting on the new appointment, Hjelmstedt says that Couttolenc has “a long and successful track record as a global business leader and has a deep understanding of data and its implementation. Very importantly, he also has a background in media and music, and a wide international network”.

“The board and I are confident that Alain is the right person to succeed in realising our mission to grow the music industry through innovative data solutions and unmatched distribution capabilities – that’s how we’ll reach profitability and achieve long-term sustainable growth”.

Earlier this month CMU was able to confirm that the company - which employs 181 people - needs more than €3 million a month to operate at its current level and is in the midst of a funding round.

On that basis the new CEO has significant challenges ahead of him, not least re-establishing the confidence of stakeholders across the music industry, and bringing the company to profitability and growth.

LABELS & PUBLISHERS

Hipgnosis Songs Fund announces strategic review to allay investor concerns

The board of the Hipgnosis Songs Fund have announced a strategic review of its operations in another bid to allay the concerns of investors.

There are various entities within the Hipgnosis empire that was set up by Merck Mercuriadis. The publicly listed Hipgnosis Songs Fund and Blackstone-backed Hipgnosis Songs Capital have both bought up lots of catalogues. Both are then advised by Hipgnosis Song Management, working alongside Hipgnosis Songs Group, which provides creative and administrative services.

Recent dramas have centred on the Fund, where many investors are unhappy with the current share price and some have become critical of Hipgnosis Song Management. A planned dividend was also cancelled because of a miscalculation over the windfall due from recent Copyright Royalty Board developments in the US. All of this is occurring as a continuation vote looms, that being a routine vote by investors on whether the Fund should continue to operate.

The board are pushing for a vote in favour of continuation and therefore need to reassure investors that the concerns they have raised are being dealt with.

Announcing the strategic review yesterday, the board said that they had undertaken "extensive engagement over recent weeks with shareholders", and that "those meetings highlighted a continued belief in the company’s portfolio and growth prospects of the asset class as well as the need for changes by the company in order to deliver value for shareholders".

Responding to the strategic review, a spokesperson for Hipgnosis Song Management told reporters: “We continue to believe that [we are] uniquely positioned to deliver value to [the Fund's] shareholders as a result of our deep relationship with the songwriters that make up the catalogue and our song management expertise".

>> There's more to this story... Click through below to read the full version online.

LEGAL

Megan Thee Stallion settles dispute with label, allowing them to “amicably part ways"

Megan Thee Stallion's label 1501 Certified Entertainment has confirmed that it has settled its long running legal battle with the rapper and, as a result, they will now “amicably part ways".

The label said in a statement, according to Billboard: “Both Megan and 1501 are pleased to put this matter behind them and move forward with the next chapter of their respective businesses”. Label boss Carl Crawford added that he wished “Megan the very best in her life and career".

Megan Thee Stallion - real name Megan Pete - had various run ins with 1501. She claimed her contract with the label did not follow industry norms and was heavily skewed in 1501's favour. She also accused the label of stopping her from releasing new music. And there was a dispute over whether or not she had delivered the three albums that the label was due under its deal.

The latter dispute was the subject of the most recent litigation. Pete argued that she had delivered three albums and had therefore fulfilled her obligations to the label. 1501 countered that 2021's 'Something For Thee Hotties' was mainly a compilation of previously released freestyles and did not qualify as a proper album. Both sides also reckoned that the other side owed them money.

Pete last week indicated that maybe the ongoing legal battle with 1501 was at an end when she told fans on an Instagram Live stream that she would self-release her next record. She declared that: "I have no label right now and we’re doing everything funded straight out of Megan Thee Stallion’s pocket".

She added that she was excited about being an independent artist once again, musing that "it’s literally just me this go round, until we sign to a new label, but I don’t want to sign to a new label right now because I just want to do it myself".

It wasn't clear whether those comments were confirmation that Pete's legal battle with 1501 was at an end or whether it was just wishful thinking on the rapper's part. But yesterday's statement confirms that 1501 also agrees that Pete is now a free agent label wise.

Terms of the settlement deal between Pete and 1501 were not revealed.

DIGITAL

TikTok Music goes properly live in Australia, Singapore and Mexico

TikTok has put its standalone music service live in Australia, Singapore and Mexico.

It began piloting in those markets back in July, shortly after the full launch of TikTok Music in Brazil and Indonesia, countries where TikTok owner Bytedance was already operating the music streaming service Resso. TikTok Music has now replaced Resso in those places.

Confirming the full launch in Australia, Singapore and Mexico, Bytedance's Global Head Of Music Business Development, Ole Obermann, says: “We are pleased to publicly launch TikTok Music, a new kind of service that combines the power of music discovery on TikTok with a best-in-class streaming service”.

“TikTok Music will make it easy for people to save, download and share their favourite viral tracks from TikTok", he adds. "We are excited about the opportunities TikTok Music presents for both music fans and artists, and the great potential it has for driving significant value to the music industry".

A bunch of new features have been added alongside the launch, including a music discovery personal assistant powered by ChatGPT called Tonik. Because who'd want a music streaming app that didn't have some in built AI?

Do you know what else most people would want built into their music streaming app of choice? The Universal Music catalogue. That’s what.

But, according to MBW, while the major's catalogue is available on TikTok Music in Indonesia and Brazil, it is not currently included in the new markets. Possibly because TikTok at large is still busy negotiating a new licensing deal with Universal that, among other things, covers its music service in markets beyond where Resso use to operate.

TikTok told MBW: “Our goal is to offer our users a full catalogue of music. We are in active discussions with Universal".

DEALS

BMG to work with Universal Music on physical distribution

BMG has announced an alliance with Universal Music that will see the latter handle the physical distribution of the former's releases from next year. Though the alliance could go further than that, with "further collaborations" already under discussion.

The alliance with Universal follows BMG's recent decision to end its long-running partnership with Warner Music's services division ADA.

It handled both digital and physical distribution for the BMG recordings division. However, BMG is now in the process of bringing digital distribution in-house. When that was announced last month it was confirmed physical distribution would still be outsourced, but to a new partner.

That new partner is Universal's Commercial Services division. BMG said yesterday that "the transition of physical products to UMG is expected to commence the second quarter 2024 and will be fully transitioned by the end of 2024".

As for other ways the two music companies may work together, BMG's statement added: "Further collaborations between BMG and UMG are already under discussion from exploring shared positions on industry matters to joining forces in adjacent business lines".

Confirming the new deal, BMG CEO Thomas Coesfeld says: “Our alliance with UMG is a significant step to further enhance our service to BMG-signed artists. We are delighted to partner with UMG, the world leader in music-based entertainment on our thriving physical recorded music business. Their scale, technology and commitment promises to further expand opportunities for BMG-signed artists around the world".

Universal Music boss Lucian Grainge adds: “BMG has brought a fresh vision to the music business, and we look forward to partnering with BMG on a variety of initiatives to provide greater opportunities to artists and our respective companies".

AND FINALLY

Korn announce official Adidas collection, just 27 years late

Adidas and Korn have announced a new collection of products designed by the band, perfectly timed to coincide with the release of their second album ‘Life Is Peachy’ - featuring a song called ‘ADIDAS’ - which came out on 15 Oct… 1996. It’s always a big moment when you hit that 27th anniversary, isn’t it?

Korn have long had an unofficial association with the sportswear brand. Frontman Jonathan Davies made Adidas tracksuits part of his image from early in the band’s career, as something of a rejection of the uniform of the prevailing alternative culture at the time. Then the song ‘ADIDAS’ appeared on ‘Life Is Peachy’ and became one of their biggest hits when released a a single the following year.

Why it’s taken so long for the band and brand to capitalise on all of this is a valid question. Although it’s quite possible it took a while for Adidas to get over the lyrics of the song, which take the schoolyard rumour that its name stands for ‘All Day I Dream About Sex’ and runs with it. Still, they’re making up for lost time now with a whole range of ‘Life Is Peachy’ themed goods.

“The inaugural Adidas Originals and Korn collaborative collection features a selection of bold styles inspired by their 1996 album, ‘Life Is Peachy’”, says the company in a statement.

“The collection comprises two graphic t-shirts, a Three Stripes hoodie with the band’s logo on the front, and two signature takes on the quintessential Adidas Originals tracksuit - one in black with white accents and one with purple sequins”.

That’s not all though. “The footwear collection features a custom take on the chunky Campus 00s silhouette and a daring update to the Supermodified sneaker. Both looks boast a suite of unique details including graphic insoles, spare laces, Korn logos, a guitar pick keychain, and a co-branded box”.

As a teenage Korn fan, I’m sure you would have put all of this stuff on your Christmas list. Let’s see how it goes now you’re in your 40s. The collection will be available from 27 Oct.