Also today: Scooter Braun retires; NTIA says politicians have no plan for the night-time economy

We've covered the music business

each day since 21 Jun 2002

Today's email is edition #5239

Tue 18 Jun 2024

In today's CMU Daily: Apple may be about to receive the dubious honour of being the first tech giant to be fined under the EU’s Digital Markets Act. Despite changes to its App Store rules around in-app payments in a bid to comply with the new DMA, the EU reportedly still feels that Apple’s policies are anticompetitive 


One Liners: Symphonic Distribution hire; Warner Music x STYNGER; Dirty Hit dance label; Wireless livestream; TikTok x Adobe; WMG and Gaydio Pride float; Beyond The Music returns; Stefflon Don album launch; new releases from Katy Perry, Coldplay, Jamie XX, JPEGMAFIA, Joe Goddard, TSHA, Bad With Phones, 7ebra


Also today: Scooter Braun officially retires from artist management; NTIA criticises British political parties; Everyone (except young people) loves radio


Plus: Manners Manners are CMU Approved

Apple could be fined under EU Digital Markets Act over app rules

The European Commission has reportedly decided that Apple is not compliant with the Digital Markets Act when it comes to allowing app developers to sign-post alternative payment options. This means that Apple will now need to offer more concessions to app developers in order to avoid being charged mega-fines - news that will be very much welcomed by Spotify. 


We already knew that the Commission was investigating whether Apple, Alphabet and Meta are compliant with the new rules that were introduced by the European Union’s Digital Markets Act. The DMA rule that says Apple and Alphabet must allow app developers to make users aware of payment options outside their apps has been very much in the spotlight. Not least because of campaigning by Spotify and other digital music services. 


According to sources who have spoken to the Financial Times, the Commission’s preliminary findings say that Apple is not yet compliant with that rule. Apple is expected to respond to the preliminary findings with proposals for additional changes to its policies that might placate the regulator. 


If it fails, the Commission could instigate significant fines against Apple. As the FT notes, “if found to be breaking the DMA, Apple faces daily penalties for non-compliance of up to 5% of its average daily worldwide turnover, which is currently just over $1 billion”. 


Spotify has long objected to the Apple rules which say that in-app purchases on iOS devices must be taken via the tech giant’s commission charging transactions system, and that alternative payment options outside the app cannot be sign-posted. That second rule, called the anti-steering provision, means an app developer can’t direct users to a page on its own website where it can take a payment directly without paying any commission to Apple. 


The EU’s competition regulators investigated those Apple rules following a complaint by Spotify. The investigation ultimately focussed on the anti-steering provision, which it concluded was anticompetitive. At the end of that investigation Apple was ordered to change its rules. By that point, the DMA had also started to go into effect, basically making the same demand. 


Apple argues that it has complied with both the ruling and its new obligations under the DMA with a new system that allows the sign-posting of alternative payment options within iOS apps. 


However, there is a catch: An app developer must agree to still pay a commission on any transactions that begin in an iOS app and that commission is just 3% less than the cut Apple takes from in-app purchases. 


Spotify argues that, because of the new commission, that new system does not comply with the demands made by the EU’s competition regulator or with the DMA. 


In April, the streaming service’s Chief Public Affairs Officer, Dustee Jenkins, said in a statement, “By charging developers to communicate with consumers through in-app links, Apple continues to break European law”. The European Commission, he added, should fully enforce the law “so that consumers can see real, positive benefits”. 


If the FT’s sources are right, that law is now set to be enforced. Though it remains to be seen if Apple can find a way to convince EU regulators that it is compliant with the law while still getting to charge at least some fees to app developers. 


An announcement from the Commission regarding all this is expected in the next few weeks, although that could be delayed depending on Apple’s response.

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LATEST JOBS

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ICA // Music Event Manager (London)

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Solar // Finance Manager (London/Hybrid)

terrible* // Finance Assistant/Bookkeeper (London)

Horizon is CMU's new weekly newsletter - published each Friday - that brings you a hand-picked selection of early-stage career opportunities from across the music industry.


Whether you're looking for your first job in music or you're ready to take a step up, Horizon is here to help you find your dream job faster.


👉 Click through to see the current selection.

ONE LINERS

Katy Perry, Coldplay, Dirty Hit + more

APPOINTMENTS


Symphonic Distribution has hired Guji Lorenzana as its first Territory Manager for Asia. “Supporting the independent music scene has always been my passion and I am excited to continue this mission”, he says. “Joining the Symphonic team allows me to pursue my dedication to cultivating the best new talent across Asia. With Symphonic’s impressive global roster, I am eager to bring in fresh voices and expand their footprint in Asia”.


DEALS 


Warner Music has partnered with STYNGR - a platform for integrating music and games - to create a new music product purchasable within Roblox. Called ‘Batteries’, you buy them to power a ‘Boombox’ on which you can then listen to ad-free radio stations featuring music from the record label. Yeah, I had to wade through a lot of confusing language about innovation to work out they’d invented the virtual portable radio. “We’re always looking for ways to expand the reach of music and unlock new opportunities for artists and songwriters”, says Allan Coye, EVP, Global Head Of Recorded Music Business Development at WMG. “Music and gaming make for a natural partnership, and we’re excited to work with STYNGR to introduce new music products to fans inside of Roblox”.


LABELS 


The 1975’s George Daniel is to head up a new electronic music label as a division of Dirty Hit. Called DH2, it will officially launch with a party at Phonox in London on 11 Jul, with performances from Kelly Lee Owens, Oscar Farrell, TimFromTheHouse and Daniel himself. Tickets go on sale on Thursday.


DIGITAL


Amazon Music will livestream this year’s Wireless Festival for the second year running. You’ll be able to watch it on Amazon Prime and the Amazon Music channel on Twitch. The event takes place in London’s Finsbury Park on 12-14 Jul. 


Adobe and TikTok have partnered to make TikTok’s pre-cleared Commercial Music Library available in AI content creation app Adobe Express. “For organisations that want to stay competitive, producing and publishing engaging social content quickly is critical and on TikTok, music is a must”, says Govind Balakrishnan, SVP Adobe Express. “By making TikTok’s Commercial Music Library easily accessible within Adobe Express, we can now offer our customers an even easier and faster way of producing more effective TikTok content that works for their business”.


MEDIA 


Warner Music and Gaydio have teamed up for a float at London’s Pride parade on 29 Jun. Appearing on that float will be new pop group Say Now, plus Blythe and Lozeak. “Gaydio and Warner Music Group both bring the sound of Pride to people’s lives so it’s only right that we team up to do the same for the streets of London during the iconic Pride In London Parade”, says Kriss Herbert, Network Content Director at Gaydio. “We can’t wait to march with Pride through the city, celebrating love and inclusivity at one of the biggest events in the queer calendar”.


INDUSTRY EVENTS


Manchester-based showcase festival and conference Beyond The Music will return on 9-12 Oct. This year’s theme is whether the music industry needs a reset. If you want to find out, there’s more information here. 


GIGS AND FESTIVALS


Stefflon Don will officially launch her debut album with a performance at ‘Island 54’ at Lío London on 28 Jun. Tickets on sale here. The album itself is out on 14 Jun. 


RELEASES


Katy Perry will release new single ‘Woman’s World’ on 11 Jul. You can hear fifteen seconds of it here. Her new album will be out later this year. 


Coldplay have announced that they will release their tenth album ‘Moon Music’ on 11 Oct. Chris Martin said back in 2021 that the band would release twelve albums and then stop recording in 2025. So either that’s not happening or there’s a lot of Coldplay music coming our way in the next year and a half. Anyway, the first song from this album - called ‘feelslikeimfallinginlove’ - is out on Friday. 


Jamie XX has released new single ‘Life’ featuring Robyn. His second solo album ‘In Waves’ is out on 20 Sep.


JPEGMAFIA has released new single ‘Don’t Rely On Other Men’. His first solo material for four years, a new album is also set to follow later this year. 


Joe Goddard has released new single ‘Follow You’. His third solo album ‘Harmonics’ is out on 12 Jul. 


TSHA has released new single ‘Girls’ featuring Rose Gray. Her new album ‘Sad Girl’ is out on 27 Sep. 


Bad With Phones has released new single ‘Ticket’. His second album ‘Crash’ is out on 12 Jul. 


7ebra have released new single ‘Daybreak’. This and previous single ‘Normal Song’ will be released on seven-inch on 5 Jul.

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Scooter Braun officially retires as an artist manager

Scooter Braun has officially ended his career as an artist manager, saying that God told him he should spend more time with his kids. Something like that, anyway. Braun - who became CEO of HYBE America in 2021 - was understood to have already taken a backseat in the day-to-day management of his clients. 


“After 23 years this chapter as a music manager has come to an end”, he writes in a lengthy statement. “It’s a strange feeling because I think I have wanted this for a while, but I was truly afraid to answer the question ‘who would I be without them?’”


He goes on to say that he loved being on call at any time of the day or night for 20 years, but then “as my children got older, and my personal Iife took some hits” he realised that “the sacrifices I was once willing to make I could no longer justify”. 


Braun will remain CEO of HYBE America and a board member of parent company HYBE in South Korea. 


Making his name as the manager of then teenager Justin Bieber in the late 2000s, through his management company SB Projects Braun went on to work with artists including Ariana Grande, Carly Ray Jepsen, Kanye West, Psy, Demi Lovato, David Guetta and more. Never one to remain in the background, he achieved celebrity status himself.


However, his reputation took a knock in 2018 when his Ithaca Holdings company acquired Taylor Swift’s original label Big Machine, which still owned her first six albums. 


Swift took the deal as a move specifically designed to upset her, orchestrated by label founder Scott Borchetta, with whom she had fallen out. Braun, she claimed, had bullied her and encouraged some of his artists, including Bieber and West, to join in. 


It was this that led her to re-record her entire catalogue in an effort to stop Braun from being able to make money from her original masters. 


In 2020, Ithaca sold the rights in Swift’s Big Machine albums to Shamrock Holdings for $300 million. If that was an attempt to calm the controversy around the original Big Machine deal, it did not. Swift hit out again, saying that she had not been consulted about the deal, despite previous attempts to buy the masters herself. 


The following year, Ithaca Holdings - which included SB Projects - was sold to HYBE for over $1 billion, with Braun becoming CEO of the newly formed HYBE America. Soon after that deal was done, rumours began to circulate that some of Braun’s management clients, including Bieber and Grande, were seeking new representation.


While not naming anyone, Braun alludes parting with one of his key clients as catalyst for stepping back from management , saying, “One of my biggest clients and friends told me that they wanted to spread their wings and go in a new direction. We had been through so much together over the last decade, but instead of being hurt I saw it as a sign. You see, life doesn’t hand you YOUR plan, it hands you GOD’s plan. And God has been pushing me in this direction for some time”.


“I have nothing but love for those I have worked with over the years, and as we develop a different working relationship, I will always be in their corner to consult and support them whether it be directly or from afar”, he goes on. “Every client I have had the privilege of working with has changed my life, and I know many of them are just beginning to see the success they deserve. I will cheer for every single one of them”.


In the absence of Braun, SB Projects will now be run by Alison Kaye and Jen McDaniels. “These two incredibly powerful women will now step into a role that I know will grow into the most impressive women-led management business our industry has even seen”.


“I made my plan… but it turns out I like God’s plan better”, he concludes.

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Approved: Manners Manners

Stalwarts of the Baltimore indie scene for almost a decade, Manners Manners will finally release their debut album ‘I Held Their Eyes, I Kissed Them All’ next month.


Out now is new single ‘Yr Well’, a jangly, rough-edged song about feeling unseen in the media as a queer person. Reminiscent of 90s slacker rock, it has a catchy as hell chorus that will drill directly to the centre of your brain. The track is a collaboration with $100 Girlfriend, who include Bodega guitarist Dan Ryan among their line-up. 


‘I Held Their Eyes, I Kissed Them All’ is out on 26 Jul.


🎧 Listen to ‘Yr Well’ here


NTIA says election manifestos offer only “vague promises” as 32 night-time businesses close every week 

The UK’s Night Time Industries Association has criticised all of the country’s major political parties for failing to offer “a forward-thinking vision that engages and inspires youth” in their respective election manifestos, including in the context of the night-time economy. It comes as the trade body’s latest number crunching reveals that an average of 32 independent night-time economy businesses have closed down each week over the last year. 


“Young voters and cultural advocates deserve more than empty promises”, says NTIA CEO Michael Kill. “They deserve inclusion, recognition and a vision that ensures our nightlife can thrive once again. Immediate action is essential to prevent further devastation and preserve our nightlife as a beacon of creativity and innovation”.


Most of the political parties insist that they will support the UK’s cultural industries in the manifestos they have published ahead of next month’s general election, with some making specific commitments around live music. The Conservative Party has also pledged to instigate a review of the wider night-time economy, including pubs, clubs and venues. 


However, says the NTIA, the manifestos “are disappointingly superficial, filled with vague promises and hollow assurances”. While there is talk about “promoting cultural activities” and an acknowledgment of the challenges faced by the night-time sector, the NTIA continues, there are no “concrete plans or steps for action” to address the key issues. 


Obviously it’s not only younger voters who are concerned about the night-time economy. However, the NTIA stresses, there is a particularly strong connection between the sector and younger people, not only as consumers but also employees. The night-time economy is one of the largest employers of under 30s, the trade group points out, with two million people in that age group working for night-time businesses. 


“Over the past year, an average of 32 independent night-time economy venues have closed weekly”, the NTIA's statement continues. “This wave of closures is tearing out the beating heart of our vibrant nightlife, leaving a void that may never be filled”. And this trend disproportionately impacts on younger voters. 


“The parties’ reliance on the ageing electorate reflects a myopic strategy focused on short-term gains at the expense of long-term societal sustainability”, the trade group continues. “This approach alienates young voters and jeopardises our future”.


Concluding, Kill says, “As the election approaches, it is crucial for political parties to engage meaningfully with the younger generation. Our nation's future hinges on their participation and empowerment. We urge parties to move beyond rhetoric and offer substantive policies that address real concerns and support our cultural sector”.

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Setlist Podcast: Spotify referred to FTC over “unlawful conduct”

In this week's Setlist Podcast: Chris Cooke and Andy Malt discuss the latest escalation in the fight over Spotify’s reclassification of its premium subscription as an audiobook and music bundle in the US, the lawsuit against Drake for putting one of his own song titles on a t-shirt, and the return of the band formerly known as Easy Life, who have nothing to do with easyJet.

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

Radio still dominant in UK audio consumption, except for the under 25s

RAJAR - the organisation that publishes official listening figures for the UK radio industry - has released the results of its latest MIDAS study, which looks at wider audio consumption trends, comparing things like music streaming and podcasts to more traditional radio. 


According to the survey, live radio still dominates in terms of audio consumption for the wider UK population, but there are significant differences by age group. 


For the over 25s, on average radio accounts for the majority of audio consumption each week, as high as 83% for the over 55s. However, for the under 25s, on-demand music services like Spotify are more dominant, accounting for 46% of listening. Live radio comes in at 36%, with podcasts accounting for 13% of consumption. 


Across the wider population, RAJAR reckons that 36% of consumers “tune into on-demand music services each week, listening for an average of eleven hours per listener”. 


Of those, 60% have a premium subscription with their service of choice. On average, 55% of listening happens on a smartphone and 25% on smart speakers, with laptops, tablets and TVs making up the remaining 20%. 


When it comes to podcasts, 21% of the population are consuming the medium, listening for an average of seven hours per week per listener. 


In terms of the kinds of podcasts being consumed, comedy is the most popular, with 31% of the podcast listeners surveyed stating that comedy programmes were their most listened to genre. News and politics came in second at 20.8% and sport at 18%.


Only 10.1% said music podcasts were their most listened to genre, which is possibly unsurprising. Spoken word podcasts are generally much more dominant, which is partly because consumers are more likely to choose live radio or a streaming service for music, although licensing issues have also made it tricky for the bigger podcast producers to make music-based programming. 


The survey also looked into what time of day people consume audio. Live radio still has its massive peak during the morning commute and then a second less significant surge during the afternoon commute. 


Other kinds of audio are listened to more consistently throughout the day. Podcasts have a slight peak during the morning commute too, although a little later than with radio for some reason, while on-demand streaming is most consumed late afternoon. 


The full RAJAR MIDAS study consulted 2143 consumers over the age of fifteen in April this year. It is a relatively small sample and the survey is only focused on standalone audio consumption, ignoring any audio consumed as part of video. Nevertheless, it still provides some interesting top level trends to consider.

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