In today's CMU Daily: Believe's private equity deal has been approved by its board - but in a surprise twist and contrary to expectations, it will remain listed on the Paris stock exchange

One Liners: Merlin, DNR deals; WMG launches Balkan Electro; Radio City Tower to rebrand; Emily Lazar award; Gary Barlow soundtrack; Fontaines DC, Faithless, Dana Gavanski, Three Trapped Tigers gigs; new music from Sia x Paris Hilton, Headie One x Stormzy, Kings Of Leon, AJ Tracey, Naughty Boy, K-Trap and more

Also today: Spotify accused of trying to “radically reduce” payments to songwriters; new creator remuneration working group meets for first time

Plus: Lemmy lives on in James Hetfield’s new middle finger tattoo

With the latest Economics Of Streaming working group convening this week to discuss next steps in the evolution of the streaming business model, it's more important than ever that you have a clear understanding and grasp of the key issues in the Economics Of Streaming debate.

Get access to our four-part CMU Masterclass series on the Economics Of Streaming that gives you the knowledge you need to be able to understand this complex topic.

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Believe board backs buyout bid - but company will remain listed on Paris exchange

As expected, Believe’s independent board of directors has approved the offer made by the consortium headed by Denis Ladegaillerie, the company’s founder and CEO, to acquire a majority of the company’s share capital at €15 a share - but there’s an unexpected twist.

Originally, Ladegaillerie and his backers had planned to acquire 100% of the company’s shares using their significant stake to institute a “squeeze-out” of minority shareholders, a tactic often employed in takeover bids. Under a squeeze-out, existing shareholders are compelled to give up their equity at the offer price, giving a company’s new owners absolute control, reducing the amount of external oversight and accountability required vs a public company, and reducing costs, by eliminating the administrative and regulatory overheads of a public company. 

The consortium quietly announced a week ago that it would no longer be instituting its squeeze-out provision, meaning existing shareholders can opt either to cash in their shares at €15 per share, or to ignore that offer and remain investors in the company. 

The decision by Believe’s now-de facto future owners not to compel existing shareholders to give up their stake in the company is interesting. On one analysis this could be an indication that the new owners are not only open to maintaining a diversity of shareholders - and the increased oversight and regulatory burdens that go with that - but potentially see an advantage in keeping a publicly listed element to Believe as it enters its next phase.

On the other hand, it could be an indication that the consortium is keen to get the deal done, and saw a potential threat for further regulatory involvement if they forced minority shareholders to liquidate in their favour. That spectre of regulatory involvement may have been triggered by Warner Music Group’s “phantom bid” for Believe - seen by some to be a curious move at a price that Warner may not have been able to afford without taking on more debt, and which may not have passed regulatory muster even if it could afford it.

However, a source close to the consortium today confirmed to CMU that the primary objective for the transaction was to give the company a new “reference shareholder with significant financing capacity” - in the form of EQT - to enable Believe to take full advantage of “the upcoming consolidation phase in the music industry”.

Kilimanjaro Live // Promoter Assistant (London)

FKP Scorpio Entertainment // Head of Marketing (London)

FKP Scorpio Entertainment // Ticketing Manager (London)

FKP Scorpio Entertainment // Social Media Manager (London)

foundation.fm // Account Manager (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.

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ONE LINERS

Sia x Paris Hilton, Gary Barlow, Fontaines DC + more

DEALS

Merlin has announced a new partnership with Audiomack, with a licensing deal covering the main streaming service and its in-built remixing tools. “Through Audiomack’s partnership with Merlin, we're not just amplifying independent music - we're revolutionising how artists connect with their fans and how fans listen to their music”, says Audiomack CEO Dave Macli. “Merlin members can now claim their artists' Audiomack accounts to send messages to their fans, and, using Audiomod, those fans can listen to their favourite artist’s music in a brand new way”.

Downtown Neighbouring Rights has announced a number of new partnerships, including deals with ANOHNI, Position Music and Th3rd Brain Records. “Downtown Neighbouring Rights has had a great start to 2024 and continues to sign exceptional global talent that serve as a testament to our expertise and offering”, says General Manager Dean Francis. “We’re proud to represent acclaimed artists such as ANOHNI and collect on behalf of forward-thinking labels like Position Music and Th3rd Brain. This all forms part of the global ecosystem at Downtown which ensures artists and creators at all levels are supported and empowered through its multitude of services”.

LABELS 

Warner Music South East Europe has launched new dance music label Balkan Electro covering the Balkans and Ukraine. It has been founded in partnership with Ensis Records and its owner Alex Cristian. “It’s a proud moment for me launching Balkan Electro alongside Alex”, says WM SEE General Manager Izabela Ciszek-Podziemska. “EDM music has no geographical boundaries, so we’ll strive to find the next local superstar and take them to the world stage with the help of Warner Music’s global network”.

MEDIA 

Bauer Media has applied to Liverpool City Council to change the branding on the city’s Radio City Tower. Officially known as St Johns Beacon, the tower has displayed Radio City 96.7 for the last 23 years. However, the company now plans to change this to Hits Radio. 

AWARDS

Mastering engineer Emily Lazar is set to receive the Inspiration Award at this year’s MPG Awards. “There is nothing more gratifying than being recognised by one’s peers”, she says. “I owe my deep gratitude to the remarkable artists I've collaborated with, whose talent and trust have propelled me forward, and to the friends and colleagues whose guidance has been invaluable in navigating this industry. I am truly grateful to everyone at the MPG for this acknowledgment. Receiving this award is a profound honour for me”. The ceremony takes place at London’ Troxy on 25 Apr. 

ARTIST NEWS

Gary Barlow, Shaznay Lewis and Nitin Sawhney have written music for Gurinder Chadha-directed movie ‘Christmas Karma’ - an adaptation of ‘A Christmas Carol’, set for release in the run up to the 2025 festive season. "It was an absolute honour to be asked to write music for ‘Christmas Karma’”, says Barlow. “I love Gurinder personally and professionally, and to collaborate with such a diverse and eclectic cast on the soundtrack has been really great fun”.

GIGS & FESTIVALS

Fontaines DC have announced UK and Ireland tour dates in November and December. The run includes a performance at Alexandra Palace in London on 22 Nov. 

Faithless have announced their first live shows in eight years, including a performance at Londo’s Roundhouse on 14 Jun. Tickets go on general sale on 26 Apr.

Dana Gavanski is set to tour the UK in support of her excellent third album ‘Late Slap’ in May and June. She will finish the run with a performance at The Lower Third in London. Tickets available now.  

Eight years on from the release of their second album ‘Silent Earthling’, Three Trapped Tigers have announced that they are reuniting in order to split up. The band will head out on a farewell tour in November. Their final show will take place at London’s Electric Ballroom on 22 Nov. 

RELEASES

Sia and Paris Hilton have teamed up for new single ‘Fame Won’t Love You’. 

Headie One has released new single ‘Cry No More’ featuring Stormzy. His new album ‘The Last One’ is set for release in June. 

Kings Of Leon have released new single ‘Nothing To Do’. Their new album ‘Can We Please Have Fun’ is out on 10 May. 

AJ Tracey has released new single ‘Joga Bonito’. 

Naughty Boy has returned with new single ‘Blow Trees’, featuring Mist, Abra Cadabra, Tunde and Wardz. 

K-Trap has announced that he will release his debut album ‘Smile?’ on 31 May. Out now is new single ‘Old School Era’. 

Alfie Templeman has released new single ‘Hello Lonely’. His second album ‘Radiosoul’ is out on 7 Jun. 

Rachel Chinouriri has released new single ‘It Is What It Is’. Her debut album ‘What A Devastating Turn Of Events’ is out on 3 May. 

Debby Friday is back with new single ‘To The Dancefloor’. 

Florrie has released new single ’Kissing In The Cold’.

Publishers hit out at Spotify’s bundling trick to reduce royalty payments

The music publishers in the US have hit out at Spotify for sneakily reclassifying its subscription packages in a way that decreases the royalties it has to pay songwriters and publishers. By employing some audiobook shenanigans, a standard Spotify premium subscription is now a bundle, which has an impact on the royalties due under the compulsory licence that applies in the US on the songs side.

“It appears Spotify has returned to attacking the very songwriters who make its business possible”, says David Israelite, boss of the US National Music Publishers Association. “Spotify’s attempt to radically reduce songwriter payments by reclassifying their music service as an audiobook bundle is a cynical, and potentially unlawful, move that ends our period of relative peace”. 

When Spotify first added audiobooks to its platform they were available on a pay-per-access basis. Then, in some countries, all premium users started getting access to up to fifteen hours of audiobook content each month as part of their existing subscription. Then in March, Spotify launched an audiobook-only subscription in the US which also provides fifteen hours of content a month, though at $9.99 that didn’t seem like particularly good value.

Ever since Spotify has pushed into podcasts and audiobooks, the music industry has worked hard to ensure that that doesn’t impact the royalty pool in which it shares, meaning Spotify has to find other ways of making money from those other content types. However, on the songs side in the US, Spotify relies in part on the compulsory licence covering mechanical rights, the terms of which are ultimately set by the Copyright Royalty Board. 

That licence has different terms for bundles, where a platform bundles music with other content, like Amazon Prime or the Apple packages that also include Apple TV. The music publishers and songwriters earn less on those bundles. Because Spotify now has a standalone audiobooks service, as well as offering audiobooks within its main premium package, it can now classify the latter as a bundle and pay the bundle rates. 

Says Spotify, “As our industry partners are aware, changes in our product portfolio mean that we are paying out in different ways based on terms agreed to by both streaming services and publishers. Multiple digital service providers have long paid a lower rate for bundles versus a stand-alone music subscription, and our approach is consistent”. 

The streaming services, and especially Spotify, have had a fiery relationship with the publishers and songwriters over the years as the terms of the compulsory licence have been negotiated in front of the Copyright Royalty Board. 

Though, as Israelite notes, more recently relations have been better after the NMPA and the services agreed a deal on the current terms of the compulsory licence. But Spotify’s bundling tricks mean a new war is now seemingly upon us. “We will not stand for their perversion of the settlement we agreed upon in 2022 and are looking at all options”, Israelite adds.

Patience is wearing thin among music creators says CMM at first government working group on creator remuneration

The Council Of Music Makers has published the statement it made at the first meeting of the UK government convened Music Creator Remuneration Working Group. It sets out three key objectives for changing the way artists and songwriters are paid when their music is streamed: a minimum royalty rate for all artists, a remuneration system for session musicians, and a right for artists and writers to terminate or renegotiate old record and publishing contracts. 

“The success of music streaming has delivered massive financial gains for the recorded music sector and wider music rights business”, the statement begins. However, it adds, “many music-makers are simply not seeing the benefit of all this growth”. 

The new working group is the latest phase of work led by the government in response to the 2021 inquiry into the economics of music streaming by Parliament’s culture select committee. The report that followed that inquiry summarised various issues with the way the streaming business works and proposed a number of solutions, including copyright law reform. 

Saying that it would prefer industry-led voluntary solutions, the government brought together stakeholders from across the sector to discuss what they might be. Previous working groups focused on data issues and transparency issues, while the new one is dealing with the most contentious topic of them all: how streaming money is shared out between artists, songwriters, record labels, music publishers and the streaming services themselves. 

Labels would generally argue that artists signing new deals today get better royalty rates than in the past, plus an artist can opt to release music through their own label with a distributor in order to keep an even bigger share of the money. Meanwhile, a key problem for artists is that because the streaming market is so competitive, partly because there is so much music available on streaming services, it is hard to stand out and drive revenue from streams. 

CMM acknowledged those points in its statement yesterday, before adding that, "there is a large group of music-makers whose music is heavily streamed, and who are delivering significant value for streaming services and corporate rightsholders, but who are not sharing in that value in an equitable way".

This, the CMM added, is ”because they are locked into long-term – often life of copyright - deals with business partners which have chosen to apply contract terms and industry conventions of the old world to the new world”. This all took place, they then said, with “zero consultation” and “zero communication” with music creators.

Labels also argue that if they make adjustments to historic contracts to pay more money through to artists stuck in those older deals, it would result in less money to invest in new talent.

The need to ensure that any possible changes to music-maker remuneration do not negatively impact on the ability of labels to invest will be a key argument put forward by record label trade group BPI as part of the working group process. Commenting on yesterday's meeting it said, “this first session in the working group was a constructive one and we look forward to an ongoing discussion that is informed by the evidence and enables UK record labels to continue their essential investment in new music and support for established and future talent”.

Neither major labels nor indie labels support the copyright reforms proposed by MPs in their report, although many indies are closer to the music-makers on at least some points, especially applying modern minimum royalty rates across the board. 

Commenting on the first meeting of the group, Chief Policy Officer and interim CEO of the Association Of Independent Music, Gee Davy said “the independent music community has fairness at its heart. Independent music businesses respect the issues raised by creators and share in frustrations around market disparities and revenue squeeze, such as the concerns we have raised about unintended negative consequences of recent streaming changes on independently released and emerging artists and those from diverse communities”. 

"AIM is proud to participate in the working group and the opportunity to hear further from creator groups", she added. “We look forward to working collaboratively to achieve growth, assess the data behind the issues, and ensure widespread best practice and fair returns from streaming for all participants - musicians, creative workers and music businesses alike”. 

It's not entirely clear what process the working group will now go through, nor to what extent any upcoming General Election might interfere with the proceedings. 

The CMM's statement noted that it's now nearly three years since the select committee's music streaming report was published. Meanwhile, in a new report on creator remuneration published just last week, MPs said they expected to see “tangible steps to improve musicians’ remuneration and performer rights in the next twelve months”.

The CMM statement went on, “Patience is wearing thin. The select committee last week set a twelve month deadline to address these issues and put in place solutions, so we really need to get down to business”.

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

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

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

And Finally! Lemmy continues busy post-death schedule, as Metallica’s James Hetfield embeds ashes in new tattoo

Since his death in 2015, Motorhead frontman Lemmy has still managed to remain alarmingly active in the music scene. Active is perhaps not the word, but he does get about, thanks to the wide distribution of small amounts of his ashes.

This week, Metallica frontman James Hetfield revealed that a portion of the legendary bassist will continue to tour the world, embedded in a tattoo on Hetfield’s middle finger. 

In a post on Instagram showing off the new ink/ash combo - appropriately an ace of spades -  Hetfield said that the tattoo was “a salute to my friend and inspiration Mr Lemmy Kilmister. Without him, there would be NO Metallica”.

The tattoo, he said, would mean that Lemmy “is still able to fly the bird at the world”.

Can there be a greater tribute? Well, in the case of Lemmy, there is actually room for comparison, because numerous people are (or have been) in possession of Lemmy’s remains.