Plus: Lib Dems demand “Fair Deal For Musicians”, and latest in majors v Cox dispute

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each day since 21 Jun 2002

Today's email is edition #5305

Fri 20 Sep 2024

In today's CMU Daily: Elliot Grainge will announce Atlantic’s new leadership team next week as WMG boss Robert Kyncl sweeps the floor and shows the old guard the door. As papa Grainge heralds the “Streaming 2.0” era, all eyes will be on Atlantic’s new boss as he lays out his vision for the future


One Liners: Candy Crush Saga, In Place of War, Downtown Music, Empire, Believe, EU Copyright Directive, Music Tectonics, Black Founders Programme, SNEP, Music For Dementia, Hopeless Records, Rocket Science Music, Nelly, Queen Latifah + more


Also today: The UK’s Liberal Democrats have passed a motion at their annual conference calling for greater support for the music sector and stating that the government must introduce a ticket levy to support the grassroots live sector; six organisations representing copyright owners have made a submission to the US Supreme Court in support of the majors in their legal battle with Cox Communications


Plus: Horizon Future Leaders Sofia Jönsson Q&A


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After executive cull, Elliot Grainge will reveal new Atlantic leadership team next week

As Elliot Grainge prepares to take his throne as the head of Warner Music’s Atlantic Music Group, WMG boss Robert Kyncl has swung the axe, clearing the path for Grainge to stamp his own mark on the division. Part of a process of “thoughtfully working on how to evolve Atlantic Music Group for the future”, Grainge will be unveiling his new top dogs next week. In a memo sent to staff yesterday, Kyncl says that this will represent “a new dynamic structure for the label group”.


The latest round of layoffs at the major is believed to include somewhere between 150 to 175 people, bringing the total number of people let go since 2023 to more than 1000. “WMG is transforming swiftly this year, in a fast-paced, fiercely competitive industry”, continued Kyncl in his memo. 


What’s notable about yesterday’s cuts - apart from the scale - is the breadth and depth of senior executive talent that will be departing the Warner division, which encompasses Atlantic Records and 300 Elektra Entertainment, as well as labels like Roadrunner Records.


As Warner tries to reinvent itself for the coming decades, it’s hardly surprising that Grainge and Kyncl want a clear slate. If Grainge plans to be at Atlantic for as long as some of the outgoing execs - which would seem likely, given how comprehensively he has thrown his lot in with the label - he is almost certainly looking at a horizon far beyond the short term, with a strategy that will propel the label through the coming “Streaming 2.0” era, which was comprehensively outlined by papa Grainge earlier this week.


While the company itself hasn’t confirmed the names of executives who will be exiting, various sources have said that those leaving include...

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Horizon is CMU's weekly newsletter 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.


👉 Click through to see the current selection.

ONE LINERS

Deals

  • Hopeless Records has partnered with payments platform Trolley to streamline its accounts payable and royalty payout processes as the independent record label marks its 30th anniversary.
  • CTS Eventim has announced the merger of its German subsidiaries Peter Rieger Konzertagentur and DreamHaus to form PRK DreamHaus.
  • Candy Crush Saga has collaborated with musicians Kimbra, TOKiMONSTA and Laszewo to create new tracks incorporating in-game audio.
  • In Place of War, an international charity, has launched EarthSonic, a new record label, sound archive and event series aimed at addressing climate change through music collaborations.
  • Rimas Publishing and Arturia have announced a collaboration which the companies say marks Arturia's first direct involvement with the Latin music industry.
  • Top Dawg Entertainment and Warner Records have signed alt-pop singer Alemeda.
  • Rocket Science Music has become the official music partner of Grand Central, a sound design and audio post-production facility in London.
  • Flavor Unit Entertainment, Westbrook Studios and Jesse Collins Entertainment have announced a partnership to produce hip hop biopics, independently financed by HarbourView Equity Partners.
  • Mixcloud has acquired Encore, a leading European online music marketplace for live performances.

Appointments

  • Downtown Music has promoted Gareth Mellor to SVP, Global Marketing & Communications.
  • Empire has established a presence in Australia, with Ghazi Shami, founder and CEO of Empire, announcing at the All That Matters conference in Singapore earlier this week that the company has hired Cameron Walsh as territory management for Australia.
  • All Things Live Sweden has appointed Magnus Widell as CEO, effective 1 Oct.
  • Believe has appointed Henri Jamet as Managing Director of Believe France.

Legal

  • Live Nation has asked a federal judge to dismiss claims from several US states that it harmed concertgoers by stifling competition through its ticket-selling arm, Ticketmaster.
  • Nelly has been sued for at least $50 million by his former bandmates, the St Lunatics, over a copyright dispute regarding several tracks from his 2000 album 'Country Grammar'.
  • The European Union Copyright Directive has been fully implemented across all 27 EU member states, with Poland becoming the last country to transpose the law.
  • Apple has been targeted by two new "specification proceedings" under the European Union's Digital Markets Act. The European Commission will instruct Apple on how to comply with interoperability provisions for iOS connectivity features and app developer requests.
  • IFPI has announced that 'Operation 404', an ongoing anti-piracy campaign, has completed its seventh round of actions targeting infringing music services in Paraguay and Brazil.

Streaming, Digital, Broadcast & Retail

  • Music Tectonics has announced four finalists for its ‘Swimming With Narwhals’ start-up competition, set to pitch at the Music Tectonics Conference in Santa Monica, CA, from 22-24 Oct. The selected startups are DAWn Audio, Soloist, Soundspace and un:hurd music.
  • SoundExchange has announced plans to develop a global artificial intelligence registry for sound recording creators and rights owners, set to launch in the first quarter of 2025.
  • Mellomanic says that it has secured an additional $6 million in funding, bringing its total capital raised to $13.8 million. The music community platform - formerly known as We Are Giant, and which has partnerships with major labels including Atlantic Records, Def Jam, Sony Music Nashville and Virgin Music Group - will use the funds to scale up operations and enhance its centralised music experience for artists and consumers. 
  • Fal.ai, adev-focused platform for AI-generated audio, video and images, has raised $23 million in funding from investors including Andreessen Horowitz, Black Forest Labs co-founder Robin Rombach, and Perplexity CEO Aravind Srinivas.
  • Digital Catapult has selected ten start-ups for its Black Founders Programme, in partnership with Sony Music UK and Sony Music Publishing UK.
  • Ram Gopal Varma has announced he will exclusively use AI-generated music in his future film projects. The Indian filmmaker has launched RGV Den Music, a venture that will feature music created by AI apps such as Suno and Udio.

Live

  • San Francisco Symphony chorus members have gone on strike, leading to the cancellation of upcoming performances of Verdi's Requiem.
  • Doune The Rabbit Hole, a Scottish festival that ceased operations in 2022, has been announced to return in 2025 under new management.
  • Eventix data analysis has revealed a significant age shift in festival attendees in the Netherlands and Belgium between 2020 and 2024.
  • Bresh, the company behind Fiesta Bresh parties, has partnered with New York-based investment firm Carroll Street Capital to launch Bresh Global, an international media and live events platform.
  • Kevin Lyman has confirmed that "something is cooking" for Warped Tour in 2025, addressing rumours of the festival's potential return.

Other Industry News & Events

  • Spanish performer collecting society AIE has signed a collaboration agreement with The Latin Recording Academy to become an official sponsor of the 25th Annual Latin Grammy Awards.
  • The French recorded music market has grown by 5.9% in the first half of 2024 compared to the same period last year, generating revenue of €415 million. Trade group SNEP reports contrasting trends, with physical sales declining by 6.8% after a temporary upturn in the first half of 2023, while digital revenues increased by 9.6%.
  • Music For Dementia has released a new report highlighting the potential role of younger generations in improving dementia care through music and technology.
  • Production Futures has announced a collaboration with the Institute Of Sound, Communications And Visual Engineers to strengthen industry links and provide pathways for newcomers in the sound, communication and visual engineering sectors.
  • Mark Beaven, co-founder and co-CEO of Advanced Alternative Media, has been announced as the recipient of a Lifetime Achievement Award at the 25th global edition of MUSEXPO.

Artist News

  • A$AP Rocky has withdrawn from the 2024 iHeartRadio Music Festival in Las Vegas due to illness.
  • Jessi has launched her own independent label called UNNI and signed a management contract with DOD Entertainment.
  • Future has released 'Mixtape Pluto', his first solo mixtape in eight years.
👉 Read today's One Liners in full

Liberal Democrats pass “Fair Deal For Musicians” conference motion

It’s political party conference season in the UK, which means MPs and the wider political establishment have all left London to head to Brighton, Liverpool, Birmingham and Manchester for the annual round of political cut and thrust and associated hijinx. Fresh from their nice long summer holiday. It’s a wonder any work gets done at all.


This week the Lib Dems all decamped to the seaside, landing in Brighton where part-time musician, activist and parliamentary hopeful Charlie Clinton - who ran against new Labour Prime Minister Keir Starmer in the central London Holborn And St Pancras constituency - called for the party to introduce “national policy calling for a Fair Deal For Musicians”. 


This was passed by party members at the conference, with the party “calling on all politicians to work together with the music industry to save the future of music in the UK”. 


Specific things that the Lib Dems want politicians to pull together on include Music Venue Trust’s proposal - supported by many though not all in the live music industry - to impose a levy on ticket sales for shows at large venues including stadiums and arenas, with the proceeds going to help support the grassroots live sector and venues.



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Music groups ask US Supreme Court to stop “race to the bottom” by ISPs in anti-piracy work

An American appeals court ruling that saw Cox Communications let off the hook for ‘vicarious copyright infringement’ in a major music piracy case was “a stark break from a century of precedent” that will “prompt a race to the bottom to see how little can be done to deter online piracy”. 


An amicus brief submitted to the US Supreme Court by a group of music industry organisations goes on to say that creators “need the full quiver of common law arrows” to battle online piracy, and that the appeals court ruling in the Cox case takes one of those arrows away. 


Cox was found liable for both contributory and vicarious copyright infringement, and was told to pay $1 billion to the major record companies, who had sued for damages. 


A company is liable for vicarious infringement if it profits from the direct infringement of other people. A lower court said that Cox did just that by selling internet access to users it knew had been accused of direct copyright infringement by illegally accessing and sharing music.



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🌅 Horizon Future Leaders series - Sofia Jönsson Q&A

As part of our new Horizon Future Leaders series of interviews, we are connecting with the music industry’s next generation of leaders to gather candid advice and insights into their career journeys. 


Horizon is CMU's weekly newsletter that brings you a hand-picked selection of early to mid stage career opportunities from across the music industry, paired with insights and advice. 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. Horizon is focused on highlighting the best and most exciting roles we've seen and is made for people who are building their careers with ambition.


Getting started and progressing your career in the music industry can often feel overwhelming. Despite the wide range of positions and opportunities available, early-career professionals often face a daunting array of challenges. From the frustrating cycle of needing experience to be able to get the roles that help you build experience, to often intense competition from like-minded peers, the barriers in music can sometimes seem higher than in many other fields.


At CMU we spend a lot of time trying to explain and demystify the music business, and our Horizon newsletter is dedicated to helping the next generation of music leaders build and progress their careers. Our new series of Q&A interviews, Horizon Future Leaders, talks to rising professionals from across the industry: to hear firsthand how they started out and what they have learnt along the way, sharing practical tips and advice for anyone looking to build and own their future in the music business.


This week, we caught up with Sofia, Label Manager at !K7 Music.



👉 Read Sofia's Horizon Future Leaders series Q&A

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