PPL's collections down 17% to £225.7 million in 2020 but distributions up 15.2%

 

By Emmanuel Legrand

British music neighbouring rights licensing company PPL saw collections sliding down 17% in 2020 to £225.7 million, a decrease of £46.1m compared to 2019.

  PPL, which collects performance rights for the use of sound recording son behalf of performers and recording rights holders, said that despite the drop in collections, due to lockdown restrictions affecting revenue, it was PPL’s third highest annual collections.

  In 2020, PPL distributed a record £260.2m, up by 15.2% from 2019's £225.8m with more than 135,000 performers and recording rights holders receiving at least one payment, up 13% on 2019’s figure of 119,000.

The underlying strength of PPL

  Commented PPL CEO Peter Leathem: “The past year was one of the most challenging in PPL’s history with Covid-19 having a significant impact on our income. Despite these difficulties, I am proud of how the company rallied to support performers and recording rights holders, as well as the wider music industry. It is a sign of the underlying strength of PPL and its staff that our business operated as near to normal during this time, paying out over £260 million to over 135,000 performers and recording rights holders, collecting the third highest annual total ever, and contributing £1.4 million to industry hardship funds."

  Leathem added that he expected domestic revenues will begin to recover in 2021, "although we are not yet expecting a return to pre-Covid levels." He also warned that international revenues "may be impacted over a longer period of time because of the pandemic, although to what extent will vary from territory to territory."

Positive growth prospects

  "Over the longer term," he concluded, "we remain very positive about this sector’s growth prospects and the income it will create for our members."

  
  Other key figures include:

  >International collections"remained strong" at £85.9m, down 0.9% from 2019.
  PPL said in a statement that the "robustness" of its international revenue stream reflects "the important technological and operational investments made by PPL and the neighbouring rights industry over the last decade." PPL now counts 105 licensing agreements with international music licensing companies around the world.  

  > Broadcast and online income"held up well," declining by only 3.8% to £82.3m.
  PPL said that despite the challenges arising from the impact of Covid-19 , television broadcast revenue grew during the year "as a result of existing multi-year deals with broadcasters such as the BBC, Sky, and ITV." However, PPL’s commercial radio income fell across 2020 as radio station’s advertising revenues were impacted by Covid-19.

  >Income from public performance and dubbing was "the most impacted" by the pandemic, down 42.2% to £57.5m in 2020 from £99.6m  in 2019. 
  PPL said the decline was "a direct result of the pandemic" with licensees facing financial difficulties linked to the several lockdowns. PPL directly and through the PPL PRS Ltd joint venture, provided support to licensees in in the form of freezing fees for periods when premises were closed, temporarily changing payment policies to allow for deferred payments, and suspending late payment charges.

SoundExchange's Michael Huppe: 'All players in the industry, creators or platforms, have to rethink how they work together'

 

By Emmanuel Legrand

Michael Huppe, CEO of US neighbouring rights society SoundExchange, has warned the music industry to prepare for a world that "will not be the same after the pandemic."

  In his keynote address at the virtual Canadian Music Week conference, Huppe said that in the past 15 months, the industry has been "navigating the crisis that is the pandemic," but there are now "glimpses of what life will look like past the pandemic."

  "New artists, new business models, new styles are already emerging," he explained. "The transformation to a fully digital music ecosystem, already underway in recent years, has accelerated over the past 15 months. That will continue and by 2025, the US music industry is projected to reach and exceed the historic height of the CD era."

An industry reinventing itself

  For Huppe, the growth will come from "an industry that is constantly reinventing itself, seemingly week to week, from live streaming on Twitch to virtual concerts in the Metaverse on Fortnite to real-time, multi-continent collaboration over Splice, or even watching fitness instructors become the newest music influencers, the way we discover and experience music is transforming before our eyes."

  He also believes that as new technologies "are shattering barriers to entry" for creators to record, produce, and play their music, this will be driving "a surge in the growth of independent creators in all aspects of the business."

  He added: "These innovations and growth are exciting, but they also add to the complexity of an industry that can be difficult for creators to navigate."

Make order out of chaos

  He also noted that change has to happen, not least in the way the industry operates. "To make order out of chaos, we have to confront the reality that the industry is plagued by fractured and outdated systems and incomplete information, all of which hinders the accurate and efficient payment to creators," said Huppe. "Think about it. In what other industry would it be acceptable that hundreds of millions of dollars is lost or squandered because the money doesn't make it to the rightful recipient? That has to change."

  Huppe offered a few suggestions that would improve the functioning of the industry: 

  1: Making the business of music "easier and more simple to navigate" by ensuring that there are systems in place that "remove friction," by making it easy to identify those who are due royalties, directing payments in an accurate and efficient manner, and making transparency a core principle so that everyone can trust the process. "As the industry grows, both in the number of players, volume of recordings, and scope of revenues, the need to simplify the business will be even more critical," said Huppe. 

  2: Tackling fairness, equity and social justice. The industry must also be about "fundamental fairness and respect for the hundreds of thousands of people who create the music that we listen to and love." This is the case when it comes to achieving social justice by taking "a hard look at the music industry and ensure that we are part of the solution." For Huppe, it is also about ensuring that "creators are respected and paid, fully and fairly, for their work, which contributes so much to our culture."

  3: Developing data and tools to empower the music community. This will allow to "more effectively manage and monetise their space in the value chain." He added: "We also have to anticipate an explosion of new creators, artists and songwriters, studio producers, labels and publishers, who, due to tech innovations, can easily produce and distribute their work."

  4: Resolving long-standing inequities over remuneration for creators. For Huppe, this includes making sure that in the United States AM/FM radio stations start paying for the use of sound recordings.

Stuck in a stalemate

  "For decades, the broadcast radio industry has raked in hundreds of billions of dollars in advertising by playing music it doesn't pay for," said Huppe. "It's not fair." He added: "As an industry, we cannot remain stuck in a stalemate over fair pay for artists because the long-term health of music is at stake. We need to find a way to break through this log jam."

  He recognises that increasingly broadcasters are "shying away" from the label radio as they face their own digital transition, which is leading them to new forms of content and new distribution platforms for listeners like streaming apps, podcasts, and other on- demand and live digital audio and more. 

  "The broadcast industry, just as much as the creative community, must adapt to the new social experience of music," analysed Huppe. "Notwithstanding our differences, we should not shy away from opportunities where we can achieve a win-win outcome that ensures a bright future for both creators and broadcasters. We are, after all, all in this together."

Recognising national treatment

  Huppe also addressed the issue of "fairness and respect" for US artists outside of the US. He noted that many countries, like the UK, "deny creators royalties solely based on where they born." The answer, according to Huppe, is to end this "outrageously unfair" by recognising what is called national treatment for US artists, so that they can be paid when their recordings are played.

  In recent months, SoundExchange has taken the lead in a campaign to obtain national treatment for US artists. Countries, mostly in the European Union, do not recognise neighbouring rights for American artists because the US has not ratified the Convention of Rome and does not have performance royalties for sound recordings for FM and AM radio. 

  "All countries should provide national treatment, which means paying all creators fairly for their work and not favoring one group over another," said Huppe.

Doubling the size of SoundExchange's community

  Within that framework, SoundExchange, which collected over $1 billion in 2020, has the ambition to be a key player in the renewed industry, said Huppe, who pledge to "build the systems and services to scale that growth." 

   Looking at what the future looks like for SoundExchange, Huppe said he is expecting the non-profit society to service nearly double the size of its current community, from nearly 250,000 creators today to approximately 400,000 by 2025. 

  "That will have a huge impact on SoundExchange and our tech assets," said Huppe.

Strategic efforts

  He added that SoundExchange will embark on four strategic efforts:

  > Streamlining the identification of royalty payments to ensure that all participants in music are paid, which includes upgrading music data exchange application, which facilitates the exchange of sound recording and publishing ownership data.

  > Expanding the use of music identifiers to ensure all creators are paid accurately and efficiently. "We are one of the world leaders in ISRCs, which confirms specific recordings, the critical first step, in almost all usage reporting," said Huppe. "They are an important tool to help lessen some of the chaos".

  > Developing data analytics tools so all music industry players can better understand their work's usage, all with "an eye towards more effectiveness and transparency."

  > Enhancing systems to make it easier for all of those who play music to report and pay digital royalties to creators. For Huppe, that includes "building out new services for publishers and DSPs to simplify data collection and payments."

Leveraging data to build a better industry

  "As an industry, we are far from fully leveraging the data to build a better music industry that is more simple, efficient, and fair," said Huppe. He invited the industry to confront these challenges of complexity and scale, and "bring some order to what we all know can be a chaotic business."

  He concluded: "We are in a pivotal time. These next five years will offer equal doses of opportunity and challenge and those opportunities and challenges, demand that all the players in the industry, whether creators or platforms, rethink how they work together. In the next five years, the music industry will be bigger than ever, both in participants and financial scope."

  He continued: "If there is a lesson to be learned from the pandemic, it is that our world can shift incredibly quickly. We know the challenges we collectively face as an industry. The only thing that can stop us from overcoming them is outdated thinking. In order to succeed, we, those who are the stewards of the business side of music, have to be just as creative in finding solutions as the remarkable artists who create the music we all love."

PRS for Music prepares for 'the road to recovery' with a bold vision of the future

 

PRS for Music Chair of the board Nigel Elderton and CEO Andrea C Martin both reflected on the "unprecedented" year that the British right society and its members went through last year and the challenges ahead during the organisation's virtual AGM.  

  
  Elderton (pictured, below) noted that the pandemic resulted in the "decimation of live sector" and with an 80% decline of live royalties collected. But, overall, PRS responded to the challenges of the time by delivering "delivering efficiencies and cost saving" measures, while preparing for "the road to recovery out of the pandemic." 

  "PRS is build on a strong foundation and we have the ability to adapt quickly," said Elderton, who said 2020 was a year during which PRS made significant changes in its governance, in particular in establishing its Members' Council, and a reduction of members on the Council, to create a "more nimble structure."

Be more than simply a collecting society

  A few weeks ago, in an interview with Creative Industries Newsletter, Martin (pictured, below) said she was expecting the society to become a billion pounds business within the next five years. Speaking at PRS' virtual AGM, Martin elaborated on her five-year plan to reach that target.  



  "To secure our renewed purpose we need a new vision," she said. "A vision to be more than simply, a collecting society. We will cement PRS For Music’s place as a world-leading rights management organisation. This requires ambition. Which is why we have set ourselves the target of becoming a billion-pound organisation by 2026. Not in revenues, but in royalties paid. That is an over 40% increase compared to 2020."

  She elaborated: "This requires tackling head on the challenges of the digital and tech market. To oppose those who seek to weaken your rights, to challenge services which build their businesses on giving your works away for free. And to secure a market where the full value of the song and composition is properly respected and paid. To demand the highest standards of reporting from users. No longer can poor data be an excuse for poor royalties. Where users will not willingly play their part, then governments can and must act." 

Transparency and efficiency

  The achieve her goal, Martin invited staff and members to embrace an ambitious vision. "Just because we have existed for over a hundred years doesn’t mean we have some divine right to go on doing so," she warned. "Everyday we must consistently earn the right and privilege to represent your works, by negotiating the best commercial terms, diligently protecting your rights, paying royalties with transparency and efficiency and ensuring more money is returned to you through our rigorous financial discipline."

  For Martin, who has been at PRS for the past two years, PRS must tackle "head on the challenges of the digital and tech market: to oppose those who seek to weaken your rights, to challenge services which build their businesses on giving your works away for free. And to secure a market where the full value of the song and composition is properly respected and paid."

  She also noted that "more diverse companies are more successful companies." She added: "New people bring with them new ideas and experiences. They challenge old established assumptions and bring new perspectives and skills. This is our shared future."

Collective diligence of the team

  Martin congratulated her team for delivering a record year, despite the pandemic. "That we were able to announce record royalty payments for 2020, the most difficult of years, is due to the team’s collective diligence, efficiency and flexibility," she said in her speech.

  Martin also revealed that PRS was in the final stages of an agreement with mechanical rights society MCPS. "We will very shortly conclude the renewal of the service agreement with MCPS," she said. "Therefore, PRS For Music will continue to support MCPS in the management of its members’ mechanical rights. My thanks to everyone at MCPS for their continued commitment to our shared vision."

  The rights society represents 155,000 songwriters, composers and music publishers. It distributed a record £699.4m to its members in 2020, up 2% y-o-y, but collections were affected by the pandemic and declined by 19.7% to £650.5m. 

Sony Music signs separate licensing deals with Tencent and NetEase for China

 

By Emmanuel Legrand

Sony Music Entertainment (SME) has signed two distinct licensing agreement with China's two main music streaming company, Tencent Music Entertainment Group (TME) and NetEase Cloud Music, marking a change in its licensing policy as until now Sony Music had an exclusive deal with Tencent for the whole of China.

  The multi-year extension of the digital distribution agreement between SME and TME becomes non-exclusive and allows TME to continue to have access to Sony Music's repertoire on its platforms in mainland China, including QQ Music, Kugou Music and Kuwo Music, as well as its live streaming platforms and online karaoke platform WeSing.

  In addition, the agreement will let TME's online music platforms make music content from SME available on certain designated connected devices, such as smart speakers, television, and in-car audio systems, in mainland China. However, Tencent will no longer have the ability to sub-license SME's repertoire to other platforms in China, as it was the case before.

A natural set-up

  "Extending our cooperation with SME was a natural next-step for us," said TME Executive Chairman Cussion Pang. "We look forward to leveraging our strong distribution channels to explore new ways of music marketing and the promotion of new artists, as well as deepening our reach to Japanese pop culture fans in China."

  Dennis Kooker, SME's President, Global Digital Business and US Sales, said the agreement will allow to "maximise the reach of our artists in the vitally important market of China. We look forward to working with TME to develop further growth in the Chinese music marketplace and drive greater levels of local investment in our global roster of amazing talent, which includes many of the world's biggest superstars."

  TME's Group Vice President of Content Cooperation TC Pan said one of Tencent's growth strategy was "to boost the digital consumption of music in China through the connected IoT device market while exploring more possibilities for music marketing, to further enhance our self-reinforcing ecosystem." 

Explore innovative collaborations

  The deal with NetEase will give China's second largest streaming platform after TME direct access to SME's repertoire. The companies said they would "work together to explore innovative collaboration opportunities across the music value chain to bring elevated music experiences to NetEase Cloud Music's large, unique community of young music lovers in China," including in-depth cooperation in areas such as music distribution, music streaming services, online karaoke, and music vlogs (Mlogs), among others. 

 SME's Kooker said the partnership with NetEase Cloud Music will "further grow the availability of our music in China and increase the level of global investment in our roster of world class artists."

Enrich NetEase's library of music

   DingBo, Vice President of NetEase Cloud Music, said the partnership will "enrich and enliven our already vast and expanding library of quality music and propel China's online music ecosystem forward."

  AndrewChan, Managing Director of SME Greater China, added, "NetEase Cloud Music provides SME with a powerful platform through which to continue to provide the highest quality content to Chinese music lovers and we look forward to continued collaboration with them."

European Parliament adopts €2.5 billion Creative Europe programme for 2021-2027

By Emmanuel Legrand

The European Parliament has approved in plenary session the EU’s new culture programme, Creative Europe, which will inject €2.5 billion in Europe's cultural and creative sectors between 2021-2027.

  This is EU’s biggest ever financial commitment to the cultural sector, with a budget almost doubled compared to 2014-2020 (€1.4bn). Parliament and the Council of Europe had agreed on a €2.5 billion budget for 2021-2027 in December 2020.

  The new Creative Europe funds will initially be invested to help art and culture recover from the effects of Covid-19, according to Members of the European Parliament. The programme, which includes the MEDIA programme for Europe's AV sector, will have a greater focus on music, inclusivity and promotion of female talent than the previous programme.

Support for the live music sector

  "Alongside the significant increase in funding, MEPs secured greater focus on inclusion, on support for contemporary and live music sectors that are among those hit hardest by the pandemic, and higher co-financing rates for small-scale projects," said the Parliament in a statement.

  Many MEPS insisted that culture and art deserved even more of the EU financial support in the future. “The new generation of the programme has been developed with two important objectives in mind: firstly, the safeguarding, development and promotion of European cooperation on cultural diversity and heritage. Secondly, to increase the competitiveness and economic potential of the cultural and creative sectors, in particular the audio-visual sector," said the rapporteur Massimiliano Smeriglio (S&D, IT).

A better-funded programme

  Chair of the Culture and Education Committee Sabine Verheyen (EPP, DE) (pictured, below) said the "significantly better-funded programme recognises the added value of culture to our European way of life and is a first step towards helping it stand up to the challenges of globalisation and digitalisation.”



  The programme has been already approved by the Council and will enter into force immediately after being published in the official journal of the EU. The new Creative Europe enters into effect from 1 January 2021.

MEDIA gets the largest share

  Creative Europe is divided into three different strands:

  > The largest share of Creative Europe (€1.4bn or 58%) will go to the MEDIA programme to support the development, promotion and distribution of European films and audiovisual works within Europe and beyond.

  > The CULTURE strand (33%) will support cross-border cultural and creative projects in the form of cooperation (networks, platforms, innovation projects) between organisations and professionals in areas such as music, books and promotion of European literature, architecture, as well as the EU Cultural prizes and initiatives.

  > A third, cross-sectoral strand (9%), will support for the first time the news media sector, promoting media literacy, pluralism, press freedom and quality journalism, and helping the media to better address the challenges of digitalisation.

  Creative Europe also supports: European Heritage Label, European Heritage Days, European prizes for music, literature, heritage and architecture, European Capitals of Culture. 

Sony Music's acquisition of Kobalt's AWAL under investigation from the UK's competition watchdog

 

By Emmanuel Legrand

The UK's Competition & Markets Authority (CMA) has disclosed that it was investigating the recent sale to Sony Music Entertainment by Kobalt of its independent distribution service AWAL, alongside its neighbouring rights collections arm Kobalt Neighbouring Rights.

  The news came as SME announced that it had completed the $430 million acquisition of AWAL/KNR. The CMA indicated in a statement that it is "investigating the completed acquisition by Sony Music Entertainment of the AWAL and Kobalt Neighbouring Rights businesses from Kobalt Music Group Limited. On 17 May 2021, the CMA has served an initial enforcement order under section 72(2) of the Enterprise Act 2002 in relation to the completed acquisition." 

  No additional details were given by the competition regulator.  

Secure a positive outcome

  SME acknowledged the investigation, stating: “Prior to the closing of the acquisition, the UK Competition And Markets Authority initiated a review of the transaction. SME continues to work closely with the CMA to secure a positive outcome later this year.”

  The strengthening of SME in the area of independent music distribution, a sector where it already operates The Orchard, under which AWAL will be integrated, has raised concern from the indie sector.  

  Paul Pacifico, CEO of the UK’s Association Of Independent Music, said the investigation will be a way to assert the real power of major companies in the field of indie distribution. “Over the last several years we have seen an incremental shift towards a music market in which a few dominant players have disproportionate influence," he said. "Each increment counts, and it is crucial to the future health of the market to ensure that all players can take part on a meritocratic basis."

Assess the impact on competitors

  IMPALA, the European body for the indie sector, has also reacted positively to the investigation. “We welcome the investigation into this acquisition as it leads to further concentration in the music market and is part of an ongoing wider move by Sony to acquire significant independent players in key markets," said Brussels-based IMPALA Executive Chair Helen Smith. "We expect the investigation to cover both the physical and also digital markets, and the impact on competitors, digital services, artists and fans, who will all lose out."

  > SME said that AWAL and Neighbouring Rights will become "a new division within SME’s suite of independent artist and label services offerings and will be enhanced by the technology and network of SME’s independent music distribution company, The Orchard." SME also confirmed that Lonny Olinick would remain CEO of AWAL. 

Tower of Power's Lenny Williams denied class action lawsuit on streaming royalties against WMG

By Emmanuel Legrand

US artist Lenny Williams was denied by an appeals court the right for a class action suit he was pursuing against Warner Music Group for underpaying his streaming royalties.

  The Ninth Circuit appeals court in California affirmed a previous lower court ruling which did cast doubt as to whether Williams, from R&B band Tower of Power, was entitled to streaming royalties as per his original contract with Warner Bros. Records. 

  Williams and his company The Lenny Williams Production Company initially sued WMG in 2018, claiming that Warner "underpaid the putative class of recording artists by calculating their digital streaming royalty payments using only a portion of the company’s foreign streaming revenue."

Not eligible to receive royalties

  Williams asked the district court to certify one broad class with three subclasses: (1) artists whose contracts provide for streaming royalties at a 50% royalty rate of Warner Bros.’ net receipts; (2) artists whose contracts do not expressly provide for streaming royalties and contain a general licensing provision at a royalty rate of 50% of Warner Bros.’ net receipts; and (3) artists whose contracts do not provide for streaming royalties or contain a general licensing provision.

  However, the district court initially ruled that Williams, as well as an indeterminate number of other artists, fell only into Subclass 3. "In order to determine whether the artists in that subclass were entitled to streaming royalties, the district court would have needed to determine whether an implied contract to pay such royalties existed between all the members of that subclass and Warner Bros," reads the ruling. 

  It continues: The district court reasonably concluded that the more challenging question of implied contract, applicable only to contracts for Subclass 3, would overwhelm the straightforward interpretive questions applicable to the contracts for Subclasses 1 and 2.

  The appeals court found that even if the district court found that an implied contract to pay streaming royalties between Williams and Warner Bros. existed, Williams "would not have been eligible to receive any royalty payments of any kind because of the considerable unrecouped balance on their Warner Bros. account. Furthermore, it was very unlikely that Plaintiffs would recoup that outstanding balance and become eligible to receive royalties before the copyright protection for their musical compositions expired."

Triller and Universal Music Group agree to a worldwide licensing agreement

 

By Emmanuel Legrand

Short video platform Triller and Universal Music Group (UMG) have buried the hatchet and signed what they described as an "expanded worldwide licensing agreements that span recorded music and publishing."

  With the new agreements, Triller will be able to offer to its users access to UMG’s catalogues of recordings and compositions from Universal Music Publishing Group (UMPG).

  “We are pleased to announce our renewed agreement with UMG and our new pact with UMPG," said Bobby Sarnevesht, Chairman of Triller, who added that the agreements "ensure that artists and songwriters across Universal Music Group have full access to the global Triller ecosystem.”  

A growing source of revenue for artists

  The agreement closes a sequence that saw UMG pull out its catalogues from the platform, reflecting what was believed to be the lack of interest from Triller's management to secure licensing deals. 

  Jonathan Dworkin, UMG’s Executive Vice President, Digital Business Development & Strategy, said the deal with Triller "embraces the importance of compensating our artists, especially given the tremendous value music generates across their platform."

  He added: "With this agreement, UMG continues to expand the universe of licensed social media platforms that allow fans to legitimately create and share content, while also growing an important new source of revenue for our artists.”

Ensuring songwriters are compensated

  UMPG Chief Counsel David Kokakis said: “UMPG’s mission is to support songwriters. By licensing new platforms like Triller, we ensure writers are fairly compensated and we are strategically delivering growth to the overall publishing business.”

  AI-powered social media and music discovery platform, Triller allows users to create professional-looking videos within seconds and match them with audio. Triller's app has been downloaded over 300 million times. Triller is owned by TrillerNet.

Spotify re-ups its licensing agreement with France's SACEM in a deal covering the EU and over 80 countries

By Emmanuel Legrand

French rights society SACEM has renewed its agreement with music streaming service Spotify.

  The new multi-territorial agreement covers the rights of mechanical reproduction and public performance on all the plans offered by Spotify: duo, student, family offer. It covers the countries of the European Union, Switzerland, Israel, South Africa, the Middle East, India, Russia and 80 other territories in the world.

  SACEM's first agreement with Spotify dates back to 2008, and has been regularly renegotiating over the years in order to ensure an appropriate remuneration for SACEM members for the use of their works on the platform. SACEM said that for more than 10 years, It has been a partner of Spotify, providing a repertoire of some 150 million musical works.

Defending artistic creation

  "Thanks to its own repertoire and its agreements with leading international publishers such as Universal Music Publishing, Warner/Chappell, IMPEL, or its mandates with foreign copyright management companies (Canada's SOCAN, and South Korea's KOMCA), SACEM contributes to the defense of artistic creation in the world," said the society in a statement.

  It added: "Together, SACEM and Spotify will continue to explore this constantly evolving and strategic market for the entire music ecosystem." 

UMPG's Jackie Alway replaces Chris Butler as Chair of the Board of ICMP

By Emmanuel Legrand

The board of ICMP, the International Confederation of Music Publishers, has elected London-based Jackie Alway, Executive VP of International Legal & Industry Affairs at Universal Music Publishing Group (UMPG), as the first woman to hold the role of Chair of the global organisation representing the international interests of the music publishing community. 

  “I am truly honoured to have been elected as the first woman Chair in ICMP’s history and thank my fellow Board members for this privilege," said Alway, who is also Chair of mechanical rights organisation MCPS, and serves on the boards of PMLL, PRS for Music, MPA Ireland and MCPS Ireland. 

  The appointment will be effective June 3, 2021, following ICMP’s 2021 General Assembly the previous day. Alway replaces Wise Music's Group Director Global Rights Development Chris Butler, who was first elected in 2017 as Chair. Butler will continue as an elected ICMP Board Director. 

Defending the rights of music publishers

  Other members of the board include: 

  Vice Chairs: Jo Smith (International Director, Warner Chappell Music) and Niclass Bjӧrlund (Director of ICMP’s Swedish national trade association Musikförläggarna); 

  Secretary: Ralph Peer II (Executive Chair, peermusic); 

  Treasurer: Kathleen Marsh (CEO, Music Notes and Director of The Music Publishers Association of the USA). 

  The ICMP Board maintains its 50/50 composition of Major and Independent music company Execs and includes Directors from 12 national trade associations across 4 continents. 

  ICMP Director General John Phelan said: “As future Chair, Jackie will bring the characteristic superb energy and expertise we see day in, day out. We’re excited about working together in this new role to deliver ICMP’s daily mission – growing the value of music and defending the rights of music publishers and creator partners worldwide.”

Jeronimo Folgueira replaces Hans-Holger Albrecht as CEO of Deezer

By Emmanuel Legrand

A change of leadership took place at the fourth largest music streaming service with Hans-Holger Albrecht replaced as CEO of Deezer by Jeronimo Folgueira (pictured, below). The transition will take place at the end of June 2021.

  Folgueira was previously Chief Executive Officer and Director of the Board of Spark Networks in Berlin, overseeing the company’s listing on the New York Stock Exchange in November 2017.

  Based at Deezer's headquarters in Paris, Folgueira reports to the company's Board of Directors. Folgueira will from now on work with Deezer’s Board of Directors, executive management and team to "ensure a smooth transition in June."

Accelerate growth

  Guillaume d'Hauteville, Chairman of the Board of Deezer, said Folgueira's "experience, vision and passion make him the perfect leader to build on the success we've had so far and grow Deezer going forward."

  Folgueira said Deezer’s team has "built a service that is the perfect companion to people’s daily lives. Deezer is a key player and contributor to the fast growth of music streaming around the world. We have a highly competitive platform with unique features that listeners love. That means we’re in a great place to accelerate our growth and capture many new opportunities, which will benefit both artists and music fans.”

  Albrecht, who had been in the job since 2015, will continue to be involved with the company as a  Member of the Board of Directors. In a statement, Albrecht praised his team for building a strong streaming business.

A clear strategy

  He said: "With the support of all shareholders and partners, a passionate team of 600 people have built the 4th largest global audio streaming service in the world. Our revenues have grown over 300% in the last five years and our platform averages more than 600 monthly streams per active user. We have a clear strategy in place to deliver long term, sustainable growth and value for shareholders, artists and users.”

  Albrecht also thanked Access Industries CEO Len Blavatnik, the main shareholder of Deezer, whom he described as "an amazing supporter and shareholder during these years," and d’Hauteville, calling him "a perfect wingman and creative partner."

  Available in over 180 countries worldwide, Deezer counts 16 million monthly active users around the world, although the service does not disclose its total number of subscribers. It claims to offer the "most diverse global music streaming catalogue on any device" with 73 million tracks, 70 million of which are in high fidelity sound.

Germany's Bundestag passes the law transposing the Copyright Directive

By Emmanuel Legrand

Germany's Bunsdestag has voted the proposed law transposing the Copyright Directive into German legislation. 

  The May 20 vote followed last minutes attempts by the creative sector to get a text closer to the original Directive, as the draft proposed by the government introduced additional exemptions. 

  The draft strengthens moral rights in Germany, provides mechanisms to justify immediate blocking, explicitly recognises the protection of melodies and platforms have more stringent reporting obligations. The concept of direct remuneration is limited to music authors and performing artists, while labels and self-released or distributed artists are exempted.

An anti-artist legislation

  However, the creative sector considers that that less positive is the fact that remuneration for exceptions is limited to caricature, parody and pastiche (not quotation) and also remains limited to usages on upload platforms, and the text also limits platform liability even after legal proceedings. 

  The law is expected to be adopted by the high chamber Bundesrat the week starting May 24. 

  Mark Chung, Chair of indie labels' organisation and VUT, said the law remained "anti-artist, anti-European and shockingly remote from practice. A missed opportunity."

ICANN grants DotMusic the right to assign the .MUSIC domain name

By Emmanuel Legrand

ICANN, the Internet Corporation for Assigned Names and Numbers, the international organisation in charge of managing and coordinating the Domain Name System (DNS), has signed a Registry Agreement with DotMusic Limited, allowing it to start allocating the domain name .MUSIC. 

  "This has been a long, challenging and unpredictable process for the entire .MUSIC team and the global music community, which has supported the .MUSIC initiative to launch a safe, trusted and secure .MUSIC domain extension and identity," said Constantine Roussos, founder and CEO of the Cyprus-based company.

A trusted and secure domain

  The .MUSIC domain name extension is exclusive for the global music community and industry. Roussos said it incorporates music-tailored policies that ensure that music artists, industry professionals and organisations register a trusted, secure and verified .MUSIC domain.

  "Finally, after nearly a decade-long effort since applying for .MUSIC, we are excited to have signed the registry agreement with ICANN," added Roussos. "We are now one step closer in providing the international music community with a verified music web address and identity that signals trust, authenticity and a safe haven for music consumption on a global level. This is a great moment in music and internet history."

  The .MUSIC initiative has been supported over the years by a wide range of music organisations and associations. Eventually, the .MUSIC Registry prevailed over other applicants for the domain name, including Amazon, Google, Donuts, Radix, MMX, GRS and Far Further.

Tencent reports a 42% increase in paid subscriber in Q1 2021

By Emmanuel Legrand

China's leading music streaming platform Tencent Music Entertainment Group (TME) has reported an impressive year-over-year 42.6% growth in online music paying users to 60.9 million for the first quarter of 2021, out of a total of 615 million monthly active users (MAUs). 

  The company's paying to free ratio was 9.9%, up from 8.0% and 9.0% in the third and fourth quarters of 2020, respectively. 

  Total revenues reached RMB7.82 billion ($1.19bn) for the quarter, up 24.0% y-o-y. Online music services revenues grew by 34.5% y-o-y. Revenues from music subscriptions were RMB1.69bn ($258m), representing 40.2% year-over-year growth.

Starting the year on a solid note

  Revenues from advertising services recorded over 100% year-over-year growth. Net profit of the Company was RMB979m ($149m). 

  "2021 began on a solid note as we hit multiple milestones across the spectrum of our business, while investing in future initiatives aimed at improving our long-term positioning," said Cussion Pang, Executive Chairman of Tencent Music.

  TME operates QQ Music, Kugou Music and Kuwo Music, as well as karaoke platform WeSing. 

Music royalties marketplace ANote sets foot in Japan with Royalty Bank

By Emmanuel Legrand

ANote Music, the Luxembourg-based music royalties marketplace, is expanding into Japan and Asia through its inaugural joint venture with Royalty Bank, Japan’s first royalties transaction brokerage. 

  The new partnership sees ANote "expand its global presence, bringing its already proven track record and expertise to the Japanese market while bringing ANote’s industry leading technology to Royalty Bank’s rapidly expanding network of investors and rights owners." 

  Royalty Bank’s new website will offer Japanese investors access to ANote’s catalogues of European music royalties. Later this year, the partners will launch a dedicated Royalty Bank Trading Platform, powered by ANote Music, for the Japanese market. 

A huge milestone

  ANote’s platform provides a blockchain-powered secure and transparent platform for artists, record labels and publishers. The platform provides them immediate access to funding through an auction of music rights, while keeping 100% of their artistic control. 

  Marzio F. Schena, CEO and Co-Founder of ANote Music, commented: “This is a huge milestone for ANote Music as we take the next step in our continued global expansion. Royalty Bank is looking to make waves in the Japanese rights ownership and investment.” 

Vivendi plans to sell another 10% of Universal Music Group

By Emmanuel Legrand

French media and entertainment group Vivendi said it is preparing to sell an additional 10% of the 80% shares in Universal Music Group before floating 60% of UMG's shares on Amsterdam's Euronext by September 27. 

  Considering that it sold 20% of UMG's business to a consortium led by China's Tencent for €6 billion, the transaction could net Vivendi another €3bn.

  “The group is analysing the opportunity of selling 10% of UMG shares to an American investor or initiating a public offering (IPO) of at least 5% and up to 10% of UMG shares,” Vivendi said in a statement. If the 10% transaction goes through, Vivendi will be left with 10% of UMG shares, with Tencent owning 20% and the Group Bolloré, which controls Vivendi, with 16%.

No poison pill mechanism 

  “Vivendi will retain 10% of the UMG share capital for a minimum period of two years in order to remain associated with the development of its subsidiary while benefiting from the protection of EU legislation applicable to parent companies and subsidiaries from different Member States," said the company. 

  Vivendi will also propose the setting up of a governance structure for UMG with a Board of Directors comprised primarily of non-executive members, a majority of whom will be independent. Neither Vivendi nor Group Bolloré "intend to be represented on the Board at this stage." 

  It added: "The principle of 'one share, one vote' will be fully observed as no preferred shares nor any other multiple voting rights will be exercised; No poison pill mechanism will be put in place; Board members’ term of office will be limited to two business years."

Music Deals -- Week 20 2021

US telecom operator Verizon and Universal Music Group's units Capitol Music Group (CMG) and Motown Records have partnered to explore how 5G and multi-access edge computing (MEC) can help artists reach fans in new and engaging ways. The companies will launch a new Emerging Tech and Emerging Artist programme that will pair three rapidly rising CMG and Motown recording artists with advanced content production technologies. The projects will "bring the artists’ creative visions to life in unique and enhanced ways." Verizon’s 5G Lab in Los Angeles will serve as the production facility for the series, giving artists access to a 5G-powered virtual production stage, a volumetric capture studio, game engine technology, and a suite of Extended Reality (XR) production tools. “By giving artists access to next-generation Verizon tools to bring to life their creativity and vision, we can push the envelope at the intersection of culture and technology,” said Verizon’s 5G Labs Director Christian Guirnalda. 

Music finance firm Sound Royalties and content protection platform Cosynd have joined forces in an agreement that will enable Cosynd users to have direct access to Sound Royalties’ funding services. Alex Heiche, CEO of Sound Royalties, said that Cosynd and Sound Royalties share the same mission: "Helping musicians keep their copyrights." Cosynd users earning more than $5,000 in annual royalties will have the opportunity to work with a dedicated Royalty Specialist, receive a complimentary consultation and free income analysis. In return, Sound Royalties customers will have discounted rates to access Cosynd’s suite of services to help register their copyrights, establish ownership, and create agreements to help protect their work. “We are delighted to provide an affordable, easy copyright protection service to the Sound Royalties community and look forward to working together to help Cosynd users thrive in their careers financially,” said Jessica Sobhraj, co-founder and CEO of Cosynd.

IMPEL, the collective licensing agency for independent music publishers, has signed an agreement with Israel's audiovisual content provider Artlist to represent the digital rights for music catalogue of Artlist Originals. “Joining the IMPEL collective, which leads the new age of publishing and rights management, is a significant strategic step for us at Artlist," said Artlist head of music Ori Winokur. Artlist Original is both a record label and publisher that serves as the in-house music production team at Artlist.io. It produces over 1,000 songs a year exclusively for the Artlist music catalogue. 

British band Duran Duran have signed to BMG in a deal that includes the marketing and distribution of their new album 'Future Past', due out on October 22 via Tape Modern/BMG, as well as their post-1997 back catalogue. 

Warner Music Group has made a 360 partnership deal with East Africa’s artist Diamond Platnumz and his independent record label WCB-Wasafi. The new deal will see WCB-Wasafi incorporated into Warner Music South Africa and entertainment provider Ziiki Media. Warner Music’s global network will market globally Diamond Platnumz's music and his label’s artists. WMG, Diamond Platnumz, Ziiki Media and WCB-Wasafi artists will collaborate on new releases, catalogue, brand partnerships, live and sync deals.  

Norwegian electronic music production duo Seeb (Simen Eriksrud and Espen Berg) have signed a worldwide publishing deal with Kobalt Music, covering a full range of creative, sync and administration services for their catalogue and future works. “The main reasons behind our decision to team-up is the great people in the Kobalt system, the flat structure, total transparency in data and the great online system for statements and reporting," said Seeb.

Australian producers Twice As Nice (Nick Audino and Lewis Hughes) have signed a global publishing deal with Mushroom Music Publishing through its partnership with Young & Vicious. They have worked with such acts as Nelly, Bebe Rexha, Robin Thicke and Pete Wentz.

Music Chairs -- Week 20 2021

 USA

Independent digital music distributor for independent artists TuneCore has appointed Becky Sebber as Chief Financial Officer. Based in New York, Sebber reports to Chief Operating Officer and Co-Head of TuneCore Matt Barrington. She joins from Conde Nast Entertainment where she was VP of Operations and Strategic Planning. At TuneCore, Sebber will oversee all Financial Operations across the company's central business units as well as its operations in 14 countries across 4 continents. She will work closely with TuneCore and parent company Believe finance teams. 

Former TikTok executive Mary Rahmani (pictured, below) has launched of Moon Projects, a new agency specialising in creator curation, content strategy for short-form, vertical platforms. It also operates a record imprint in partnership with Republic Records. The company also offers consulting services to help build brand and artist presence across all platforms. “From my early days of putting up posters in record shops to discovering Grammy Award-winning artists, my passion and purpose has always been to recognize talent, elevate their work, and help them navigate the complex world of the entertainment industry, music, and tech,” said Rahmani. “I’m thrilled to launch Moon Projects, which will continue to discover and develop artists, build partnerships, and launch creative and innovative campaigns.”  


Edgar “Edd Grand” Machuca has been named to a newly created position of Senior Vice President of A&R for both Capitol Records and Virgin Music Label & Artist Services. Based in Hollywood, he jointly reports to Capitol Music Group (CMG) Chairman & CEO Jeff Vaughn and Virgin President Jacqueline Saturn. In his new position, Machuca will "draw upon his broad experience as an A&R and creative executive to sign and develop artists for both Capitol and Virgin, as well as oversee recording projects for their new, established and partnered artists."

J Scavo has joined Position Music as GM, Recorded Music & VP of Marketing, in charge of the marketing strategy of Position's Recorded Music division as well as serving as overall Head of Marketing for the company. Scavo’s appointment coincides with the evolution of Position Music from a music publishing company to a full-service music company. Scavo was the founder of artist services, marketing and social media agency Daemon.

Reservations technology platform Lyte has appointed Donovan Bass as VP of Product Marketing. His brief includes building Lyte’s market growth and strong market presence. Bass was in charge of Product Marketing at VSCO.

EUROPE

Vancouver-based Reliant Music has opened an office in Amsterdam to coordinate the company's activities in Europe. Reliant Music Europe will be led by Vice President of A&R Angelique Pattikawa-Thenu. She joined from Spinnin’ Records, where she spend the last 13 years.

UNITED KINGDOM

During the May 19 AGM of British rights society PRS for Music, songwriters and composers Fiona Bevan, Julian Nott, and Pete Woodroffe, were elected as Writer Council Members of the PRS Members’ Council, alongside Simon Platz. who has been re-appointed as a Publisher Council Member. They replace former Council Members Simon Darlow, Jim Duguid, Eddie Gregson, John Minch and Mark Poole. Janet Andersen, SVP of Global Publishing Services at BMG, has been newly appointed as Designated Publisher Council Member, while Erica Ingham also joins the Members’ Council as an Independent Non-Executive Council Member, alongside Stephen Davidson who was re-confirmed in post. "Congratulations to our newly appointed and reappointed Council Members who’s combined experience and expertise will help to steer us in this next chapter," commented PRS for Music Chairman Nigel Elderton.

CHINA

Bytedance co-founder and CEO Zhang Yiming will step down from his role as chief executive of the parent company of short video app TikTok. He will be replaced by co-founder Liang Rubo, currently ByteDance’s head of human resources. Zhang, 38, said he will work alongside Liang over the next six months to ensure a smooth transition. He will will remain on the board of ByteDance. “The truth is, I lack some of the skills that make an ideal manager," said Zhang in an interview with Reuters. "I’m more interested in analyzing organisational and market principles, and leveraging these theories to further reduce management work, rather than actually managing people." The news follows the disclosure of the appointment of ByteDance’s Singapore-based CFO Shouzi Chew as CEO of TikTok.

France adopts Art. 17 of the EU's Directive on Copyright and Related Rights in the Digital Single Market

By Emmanuel Legrand

The French government's Council of Ministers has adopted the ordinance transposing Article 2/6 and Articles 17 to 23 of the Directive on Copyright and Related Rights in the Digital Single Market. The text adopted is very close to the original text of the Directive and "marks a major step forward in favour of the protection of creators and cultural industries in the digital age," according to a statement from the government. 

  The French government made the choice to implement the Directive by ordinances, rather than through a vote in Parliament, to speed up the process. The transposition by ordinance of the Directives was authorised by the National Assembly and the Senate in October 2020.

  The ordinance was presented by Minister of Culture Roselyne Bachelot (pictured, above) on May 12, 2021. The government said that the ordinance will "allow creators, either to be remunerated by the sharing platforms which massively distribute their works, or to obtain the application of effective preventive measures guaranteeing the unavailability of unauthorised content, while providing greater legal certainty and new rights for users."

A major step forward

  Bruno Lion, Chairman of the Board of Directors of French music rights society SACEM, said the transposition of the Copyright Directive was "a major step forward" in providing a legal framework "to protect the rights of creators and to hold digital platforms accountable."

  SACEM said the transposition of the Directive in France "will now make it possible to empower online platforms offering cultural goods for commercial purposes and thus rebalance the sharing of value to the benefit of the creators of these works."

  The government added that the adoption of the Directive will "strengthen the capacity of rights holders to be remunerated by online content sharing platforms" and "improves the protection of the rights of authors and performers in their work."

Reinforcing the right to remuneration

  The government also added that the Directive "enshrines the principle of appropriate and proportional remuneration, reinforces transparency obligations for the benefit of authors and artists and opens up new rights for them in relations with users of content."

  In particular, the ordinance "reinforces the implementation of the right to proportional remuneration in the audiovisual sector and the guarantee of minimum remuneration for performers for the streaming of their performances."

  French rights society Adami, which collects neighbouring rights on behalf of performers, welcome the final version of the text, which includes the principle of proportional remuneration for the use of performer's works. "The basis for adapting [performers] remuneration to the digital world has finally been laid," said Adami in a statement.

Participating in negotiations

  It added: "For the music sector, the government provides for proportional remuneration to be negotiated within the framework of 'the guarantee of minimum remuneration' established by the 'Freedom of Creation' law of 2016. By modifying this provision, the ordinance allows collective management organisations to take part in the negotiations."

  Adami said it has already agreed to participate, alongside performers' unions, to the negotiations on remuneration.

  The ordinance will be supplemented by the adoption of two other ordinances transposing the last provisions of the Directive, as well as those of Directive 2019/789 known as the Cab-Sat Directive, establishing rules on copyright and related rights applicable to certain online transmissions of broadcasting organisations and retransmissions of television and radio programmes.

Obligation of transparency

  Article 2/6 updates the definition of what is a "provider of online content sharing services," in that these services' main objective or primary purposes "is to store and give the public access to a significant amount of copyrighted works or other copyrighted material that has been uploaded by its users, which it organises and promotes for lucrative purposes."

  The definition excludes non-profit online encyclopedias, non-profit educational and scientific directories, free software development and sharing platforms, providers of electronic communications services, online marketplaces, business-to-business cloud services and cloud services which allow users to upload content for their own use.

  Articles 17 to 23 relate to the use of protected content by providers of online content sharing services; the principle of appropriate and proportional remuneration; the obligation of transparency on the exploitation of works; mechanism of adaptation of contracts; and extra-judicial procedure for settling disputes.

Delays in Germany

  Meanwhile, in Germany, the final draft transposing the Directive was expected to be presented before the Bundestag (Parliament) this coming week, but the law has not been added to the agenda of the Parliament.

  Sources in Berlin suggest that the recent letter sent to policy-makers at the Bundestag and to the government by some 1,500 artists has triggered reactions to a point that ruling party SPD is planning to address some of the issues raised in the letter. However, the new draft from the Ministry of Justice has not been circulated among rights holders.

  "We are not quite sure yet which changes are actually being discussed, we only know that the draft is not finalised yet. So there is still hope that there will be movement into our direction," said a representative from rights holders.

Assessing the changes

  Industry sources suggested that the bill could be introduced in the week starting June 7. "The law was already presented in the Bundestag and also heard in the legal committee so actually the governing parties have to assess if and what they would change with regards to the existing concerns. And then they vote it through. It seems highly unlikely that they will stop the whole project," explained another executive.

  "We do not expect significant changes beyond minor concessions that will be made, but it is impossible to say which," said a creative industry source.

Facebook and YouTube agree to a set of voluntary anti-piracy measures with British creative industries

 

By Emmanuel Legrand

British creative Industries and some social media services have voluntarily agreed to a series of new anti-piracy measures, under the aegis of the UK government.

  The process, which was started in 2018 with a roundtable regrouping stakeholders has led to in-depth discussions, facilitated by the UK's IP Office, about the ways to tackle copyright infringement.

  In a statement, the organisations that took part in the discussions said they "have achieved progress in a number of areas, building on enforcement measures already in place."

Safeguarding British content

  “Piracy is a global problem and can only be addressed when multinational corporations are willing to put their weight behind efforts to combat it," said Amanda Solloway, Minister for Intellectual Property. “I’m pleased that Facebook and YouTube, with the support of the IPO, have been able to agree new voluntary measures that will see more of our great British content safeguarded."

  Measures agreed by stakeholders include: 

  > Facebook and YouTube have introduced "new policies designed to help prevent users from abusing their platforms by instructing others how to commit IP infringements" (‘Piracy Tutorial videos’).

  > Facebook has introduced "proactive new policies and procedures to prevent links to 'rogue piracy sites' appearing on the platform." 

  > YouTube has agreed to "a significant increase in API allowances" to enable rights holders to scale their IP enforcement activities and "more quickly remove infringing links at scale, based on proof of need." Facebook is in the process of beta-testing a similar API. 

Limit the distribution of infringing works

  > Creative rights owners have "shared with Facebook and YouTube areas where their content recognition systems (respectively, ‘Rights Manager’ and ‘Content ID’), could be further improved" so as to prevent circumventions. The platforms have also committed to an ongoing process to "maximise" the effectiveness of these tools. 

  > The platforms shared information about their policies to identify and combat Repeat Infringement, and to help to prevent repeat infringers continuing to abuse their services. Facebook also implemented additional improvements to these processes requested by creative rights owners. 

  > To limit the distribution of infringing content, Facebook "prevented additional auto-completed searches that include key terms often associated with piracy," based on input from creative rights holders.

Developing new policies

  The stakeholders acknowledged that these improvements "are part of a voluntary process, founded on cooperation and a shared purpose of reducing IP infringement online." They have also agreed that these roundtables and bilateral meetings should continue on a regular, bi-lateral basis, and they are also considering broadening the roundtables to include other social media networks. 

  The stakeholders participating in this roundtable included the Publishers Association, English Premier League, UK record labels association the BPI and its international counterpart IFPI, the Motion Picture Association (MPA), Sky, Professional Publishers Association (PPA), interactive entertainment trade body trade UKIE, ACID representing lone and SME designers (collectively, “creative rights owners”), and social media platforms Facebook, Twitter and YouTube. 

  Nicola Mendelsohn, VP EMEA at Facebook praised "the earnest and solution-oriented manner in which the creative rights holders approached the roundtable discussions" and said the process helped "educating stakeholders on Facebook’s systems to address piracy and for developing new policies that meet all stakeholders’ needs."

A staging post

 Dan Chalmers, Director of YouTube Music for EMEA, said the discussions were aligned with YouTube's strategy to develop programmes, policies and technology to fight online piracy. He added, "It is important that we collaborate closely with rights holders and experts like the IPO to ensure that our approach and investment are as effective as possible."

  For Geoff Taylor, Chief Executive of record labels' trade body the BPI & BRIT Awards, who leads the IP group of the Creative Industries Council and chaired the roundtable discussions, there remains "much work to do to reduce online infringement, which continues to hinder the growth of the UK’s world-beating creative industries."

  He thanked Facebook and YouTube "for their positive engagement and their efforts" to address many of the issues brought forward in the Roundtable. "Today’s announcement represents a staging post, rather than the conclusion of that process," he said.

  Taylor however lamented that "no significant progress has been made with Twitter," which according to him "underlines the urgent need for the Government to ensure that all online platforms take a responsible approach to dealing with content.”