Also today: Government has “decided that women’s safety is not a priority” - plus: BBC should not move to ad-funded model for the sake of commercial radio

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each day since 21 Jun 2002

Today's email is edition #5200

Mon 22 Apr 2024

In today's CMU Daily: Manchester’s new Co-op Live arena has cancelled its opening shows, the first of which was due to take place tomorrow, due to technical problems that were shown up by a test event at the weekend. The two performances by comedian Peter Kay will now take place next week


One Liners: Davido x UnitedMasters; Music Climate Pact appointment; TikTok ban bill passed; Ed Sheeran and Madonna lawsuits; Lucian Grainge wages; DawBell co-founds PR:E; new music from Sega Bodega, Laura J Martin


Also today: MU critical of government’s response to Misogyny In Music report; switching to ad-funded would be disastrous for BBC, says commercial radio trade body; Pink moves to block Pharrell Williams trademark application

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Manchester’s new Co-op Live arena cancels launch shows as power issues delay opening

Manchester's new £325 million arena venue Co-op Live has been forced to cancel its first two shows, headlined by Peter Kay, because it needs more time to “satisfy the rigorous set of guidelines and protocols that are necessary for a venue of this size”. Basically, it ain't ready to open its doors. 


Earlier today, CMU reported on how a test event this weekend headlined by Rick Astley had to be cut back at the last minute due to technical problems, resulting in thousands of tickets being cancelled. Power issues meant the venue could only accommodate about 4000 people. 


With reports that staff were still busy finishing work on the corridors and cabling, meaning Manchester City Council had yet to sign off on the venue, we noted that audience members for Kay's shows would be very pissed off if this weekend's problems affected his performances. 


Shortly after publishing that report, an announcement came in that Kay's shows have been cancelled. “Following our first test event on Saturday”, a statement read, “regretfully we have made the difficult decision to reschedule our two opening performances by Peter Kay. These dates will move from 23 Apr and 24 Wed to Monday 29 and Tuesday 30 Apr”.


Venue management explained, “It is critical to ensure we have a consistent total power supply to our fully electric sustainable venue, the completion of which is a few days behind. Rescheduling gives us the extra time we need to continue testing thoroughly. This is vital to satisfy the rigorous set of guidelines and protocols that are necessary for a venue of this size”. 


The venue’s statement was accompanied by a message from Kay, which read, “I’m truly gutted as I know how disappointing this will be for everyone with tickets, but obviously it’s a brand new venue and it’s important that everything is finished and safe for full capacity audiences. Fortunately, we’ve been able to reschedule the shows to next week - I’ll have to miss my Bums & Tums class, but hopefully I’ll see you then”. 


A show by The Black Keys due to take place this weekend will go ahead as planned, though that only has a capacity of about 10,000, whereas the full venue - once operational - will fit in 23,500. 


Saturday's difficulties, and the cancellation of Kay’s shows, somewhat embarrassingly followed comments made by the new arena's GM Gary Roden to the effect that some grassroots venues are struggling because they are “poorly run”. 


He made that comment in an interview with the BBC when asked why Co-op Live isn’t supporting the proposal that arena venues should add a £1 levy on tickets to support grassroots venues which, unlike the arenas, are currently in crisis amid surging production costs and the cost of living crisis.

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ONE LINERS

TikTok, Ed Sheeran, Lucian Grainge + more

DEALS 


Nigerian artist Davido has partnered with distributor and label services company UnitedMasters to launch new record label Nine+ Records. “I couldn’t be more proud to partner with the team at United Masters”, he says. “This announcement represents an exciting new chapter for developing and established artists around the world”.


APPOINTMENTS


UK record industry trade bodies AIM and BPI have appointed Creative Zero’s Roxy Erickson to lead the next phase of the Music Climate Pact, an initiative to reduce the carbon emissions of the music industry. “The music industry is such an important player in the fight for climate action”, she says. “Where scientists can give us the data, music can speak truth to the hearts of so many. I am honoured and excited to take up this role and plan to take a pragmatic approach to helping lay the foundations for a music industry hub for environmental impact. I look forward to speaking with the signatories and supporters about the work that has begun over the past two years and priorities moving forward. There is much collective work to be done, but every meeting gives me faith that the people who work in this industry are up for the challenge”.


LEGAL


The US House Of Representatives this weekend again voted through proposals to force Chinese TikTok owner ByteDance to sell the video-sharing platform or face it being banned in the US. Having already passed the proposals in a standalone bill, the sell-or-be-banned law was then also added to a bill that included various measures, including aid packages for Israel and Ukraine. It’s seen as a move to make the US Senate consider the proposals more quickly, as the aid packages need to be passed more urgently. 


A court hearing last week put the spotlight back on the allegation that Ed Sheeran ripped off Marvin Gaye’s ‘Let’s Get It On’ on his song ‘Thinking Out Loud’. Sheeran previously won a legal battle with the estate of ‘Let’s Get It On’ co-writer Ed Townsend. However, he was separately sued by a company called Structured Asset Sales, which has a stake in the ‘Let’s Get It On’ copyright. The judge overseeing that case dismissed the action in May last year, but SAS appealed. Judges in the Second Circuit Appeals Court heard arguments from both sides at last week’s session. 


Madonna is facing another lawsuit over her slack time-keeping. Already fighting legal action over the late start of one of her shows in New York last year, now Madonna is being sued in relation to shows that took place in Washington DC. A new lawsuit claims that Madonna and her promoter Live Nation breached their contract with ticket-buyers when they advertised an 8.30pm start time but Madonna didn't take to the stage until 10.30pm. “Forcing consumers to wait hours for her performance in a hot, uncomfortable arena is demonstrative of Madonna's arrogant and total disrespect for her fans”, says the new litigation. When responding to the lawsuit over the New York shows earlier this month, Madonna and Live Nation said the legal claims relating to her late start were simply not credible. 


LABELS 


Universal Music boss Lucian Grainge was paid around £120 million last year, according to The Times. Less than the £150 million he took home back in 2021, but still probably enough to afford a nice holiday and some shoes, or something. His actual salary was halved to around £6.5 million, in line with the company’s performance, but he also received around £80 million in shares, as well as other cash payments. 


MARKETING & PR 


A group of seven entertainment PR companies from around Europe - including DawBell in the UK - have launched a new network called PR:E to combine their expertise. “At DawBell, we have always been committed to pushing the boundaries of public relations and delivering exceptional results for our clients”, says DawBell GM Kate Etteridge. “We are THRILLED to have founded the PR:E network set up to be more agile and adaptable to local needs and differences, in the time of an evolving traditional PR landscape”.


RELEASES


Sega Bodega has released new single ‘True’. His new album ‘Dennis’ is out on Friday. 


Laura J Martin has released new single ‘Living On The Wall’ featuring Iwan Morgan. Her new album ‘Prepared’ is out on 17 May.

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UK government has “ignored the voices of women” in response to Misogyny In Music report, says MU

The Musicians’ Union has criticised the UK government’s response to the inquiry into misogyny in music that was undertaken by Parliament’s Women And Equalities Select Committee. The ruling Conservative Party has agreed that something should definitely be done to tackle the issue, says the trade body, but has refused to enact any of the legislative recommendations made at the inquiry’s conclusion.


In its response last week, the government went through each recommendation made by the select committee in turn. While it agreed that the music industry should act to tackle misogyny, it rejected any suggestion that it should amend or improve existing legislation. 


The MU notes that the government agrees “that everyone should be able to work in the music industry without being subject to misogyny and discrimination”, but nonetheless “has offered nothing that would help to keep women working in the industry safe”.


Published in January, the Misogyny In Music report was damning of the music industry, calling it a “boys club” where discrimination against women is “endemic” but hidden due to a “culture of silence”. 


It made numerous recommendations, which included urging the music industry itself to act. However, many of its suggestions focussed on changing the law, largely to provide greater protections to freelance workers. 


It also suggested introducing a licensing process for recording studios that would include a sexual harassment risk assessment, and argued that the use of non-disclosure agreements in cases of sexual misconduct, bullying, harassment and discrimination should be prohibited.


In a statement, MU General Secretary Naomi Pohl says, “The MU are deeply disappointed in the government’s response to the Misogyny In Music report and shocked that the select committee’s recommendations have been rejected in this way”.


“Women from across the music industry have bravely shared their experiences of misogyny, sexual harassment and abuse as well as other very real barriers they face whilst working in the industry”, she goes on. “The government had an opportunity to listen and learn from those lived experiences and implement the changes that the select committee’s report recommended. Instead, the government decided that women’s safety is not a priority. Again, survivors are not being listened to”.


“The Equality Act is out of date and does not reflect how people see themselves or how they work, it needs updating as a matter of urgency”, she goes on. “The industry needs increased funding to support targeted action to improve diversity and an improved legislative framework that reflects the way musicians work. The government has committed to neither”.


“We urge the government to rethink its position and implement the recommendations from the report”, she concludes.

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SONG’s done deal with Concord might not be such a done deal - and its irrevocable commitments from shareholders might not be so irrevocable after all. But, honestly, who can say?

SONG - aka Hipgnosis Songs Fund - the beleaguered London Stock Exchange-listed song rights investment fund which has seen its share price plunge since listing, advised shareholders on Thursday that it was recommending an acquisition offer of $1.16 per share from Concord. Concord previously bought the catalogues controlled by Round Hill Music Fund - which was then headed up by Rob Naylor who is now top banana at SONG. So far, so good. 


This all looked like a done deal, not least because Concord had “irrevocable” commitments from a substantial - if minority group - of SONG shareholders. Until - as predicted by CMU - Blackstone popped up with a last-minute bid… Only that bid isn’t really a bid yet, it’s just Blackstone still musing publicly about whether it might want to make a bid, with a little bit of legal strong-arm thrown in for good measure.


As things stand, Concord has offered $1.16 a share for SONG, with another $25 million for shareholders thrown in as part of the so-called “FO clause”. Shareholders only get that $25 million if Hipgnosis Song Management - the Blackstone-owned, Merck Mercuriadis-led ‘investment adviser’ to SONG - agrees to fu… make an elegant exit.


SONG has now responded to Blackstone’s bid pointing out that it isn’t really a bid, just an idea, but that if Blackstone wants to turn that idea into a firm offer then it - SONG - would probably need to recommend that one to shareholders instead of Concord’s. Now we just need Universal Music - via Chord - to get involved, or maybe BMG, and that will be the sort of high-drama full-on takeover battle of the type that hasn’t been seen in a good while.


This story first appeared in the CMU Digest that went out early this morning. With yet more back and forth from the various players in the Hipgnosis drama over the course of today things are moving fast... Look out for a full update tomorrow.

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Moving BBC radio to an ad-funded model would be a disaster, says Radiocentre

UK commercial radio trade group Radiocentre has published a study which, it says, demonstrates that if the BBC was to try to fund its radio stations through advertising, it would end up being disastrous for both the BBC and commercial broadcasters. 


Indeed, only Radio 2 and 6 Music would break even under an advertising model, meaning other national stations would have to slash their budgets while local stations would have to close. Meanwhile, commercial radio broadcasters would lose a third of their revenues. 


“This study demonstrates that introducing advertising on BBC radio and audio services is a dangerous road to go down and will ultimately be bad for everyone”, says Radiocentre CEO Matt Payton. “It would have a devastating effect on the BBC and commercial radio, as well as a huge impact for audiences, with the disappearance of public service radio as we know it and less choice available in future”. 


Radiocentre commissioned consultancy firm Compass Lexecon to investigate what an ad-funded BBC radio operation might look like as the government begins a review of how the BBC should be funded in the future. The study's publication also follows the recent news that the BBC - via its commercial division BBC Studios - plans to start selling ads to go alongside some of its podcasts when they are accessed via third party platforms like Apple and Spotify. 


Commercial media companies are often jealous of the significant and relatively steady funding that the BBC receives via the licence fee. Lobbying from some of those companies has added to the political pressure put onto BBC bosses to become less reliant on the licence fee, by both cutting costs and finding other revenue streams. 


With Conservative governments generally more critical of the BBC, in recent years the licence fee was frozen, meaning the broadcaster got less money each year in real terms, once inflation is taken into account. Some Conservative politicians want the licence fee to be phased out entirely - and even BBC supporters acknowledge that the licence fee funding model probably needs to change as the way consumers engage with broadcast media evolves. 


All that said, while often critical of the BBC and its funding, at the same time commercial media companies don't actually want the BBC to start generating income by selling advertising and sponsorship. Because that would result in a big new competitor entering the advertising marketplace with some big brands and a massive archive of content.


Or at least it would in the short-term. The point of the Radiocentre study is that, given the costs of running the BBC's radio stations and the likely advertising income they could generate, many of those services would quickly become unviable.  


According to the number crunching done by Compass Lexecon, only Radio 2 and 6 Music could expect to break even if entirely funded by ads. Radio 1 would have to cut its overheads by 25%, Radio 4 would have to cut its costs in half, and the BBC's local radio stations would almost certainly have to close down entirely. 


Meanwhile, says the study, the financial impact for UK commercial radio would be “devastating” as advertisers diverted budgets to BBC stations. 


The sector's revenues would fall by 36%, which would “force many stations to close, while specialist and niche services would find it even harder to survive, therefore narrowing choice for audiences, with an inevitable knock-on effect on employment”. 


It seems very unlikely that a future BBC would ever be entirely ad-funded. However, with fears that the announcement around podcast ads could result in the BBC looking for other ways to expand its ad sales business, Radiocentre insists “even partial advertising would have a significant negative impact. These findings are stark, and we hope that both the government and the BBC will take them into account”. 


As well as the big review into BBC funding, the podcast ads plan is also subject to regulatory assessment. Many commercial podcast producers will be hoping the plan is blocked, although BBC bosses will presumably ask how they are meant to become less reliant on the licence fee if other revenue options are closed off. 

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Setlist Podcast: MPs want to see action on musicians’ income

Chris Cooke and Andy Malt discuss the warning from UK politicians that there need to be “tangible steps to improve musicians’ remuneration and performer rights” by this time next year, and Blur drummer Dave Rowntree’s class action lawsuit against PRS For Music over songwriter royalties, and more.


🎧 Click here to listen - or search for 'Setlist Podcast'

Pink seeks to stop Pharrell from trademarking the brand P.INC

Pharrell Williams is facing another legal battle over a trademark he has tried to register in the US. This time it's Pink who is objecting to Williams’ attempt to secure exclusive use of the brand P.INC within music and various merchandise categories. It follows a recent legal filing made by Chad Hugo who hit out at Williams’ bid to trademark the name of their collaborative production outfit The Neptunes. 


All these trademark registrations have been made by a company called PW IP Holdings, which is owned by Williams. It began the process of registering P.INC and P.INC Records in May last year. With the P.INC brand, Williams is seeking to register trademarks relating to clothing, cosmetics, retail, posters and even backpacks, in addition to sound recordings. 


Presumably Pink - real name Alecia Moore - reckons that people will be prone to say ‘pink’ instead of ‘peee-inc’ when they see P.INC written down, and that will confuse people when used in the context of pop music. According to Billboard, the musician's own company, Lefty Paw Print, said in a legal filing last week that the trademarks Williams is trying to register will be “likely to cause confusion, mistake and/or deception” among consumers. 


It's not just Pink objecting to the P.INC trademarks. Retailer Victoria’s Secret has also formally objected because it has a line of lingerie and apparel that uses the brand PINK. 


Hugo recently accused his long-time collaborator of “fraud” after Williams’ company started registering The Neptunes trademark without his involvement. 


In a legal filing, Hugo explained that he and Williams have always split everything to do with their production partnership 50/50, which means he owns 50% of The Neptunes brand. He also claimed that legal reps for Williams had admitted as much and offered to add Hugo as co-owner in the trademark registrations, but only if he agreed to “onerous business terms”.


Neither Pink nor Williams have as yet commented on this latest trademark dispute.

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