CMU Daily 04.07.16: Apple and Spotify ramp up war of words, Guvera hits back, Crowdmix staff salaries reportedly late again

Apple and Spotify entertain the masses with some public beefing
So this is fun. While the music industry conducts its war of words with YouTube, elsewhere in the world of streaming a pretty decent public beef is heating up between Spotify and Apple. Do beefs heat up? Depends how you like your meat, I guess.

Anyway, after US senator Elizabeth Warren last week criticised Apple for placing "conditions on its rivals that make it difficult for them to offer competitive streaming services", Spotify spokesman Jonathan Prince quickly chipped in: "Apple has long used its control of iOS to squash competition in music, driving up the prices of its competitors, inappropriately forbidding us from telling our customers about lower prices, and giving itself unfair advantages across its platform".

Spotify then seemingly hit out at Apple once again for rejecting a recent update to the streaming service's iOS app, adding that the tech giant's decision was "causing grave harm to Spotify and its customers". But not so, says Apple legal beagle Bruce Sewell, whose response to Spotify lawyer Horacio Gutierrez has been published by BuzzFeed News.

"We find it troubling that you are asking for exemptions to the rules we apply to all developers and are publicly resorting to rumours and half-truths about our service", writes Sewell in his letter. "Our guidelines apply equally to all app developers, whether they are game developers, e-book sellers, video-streaming services or digital music distributors; and regardless of whether or not they compete against Apple".

Spotify does now, of course, compete head on with Apple, since the latter entered the streaming music game last year. The other streaming services have never liked the fact that Apple charges a 30% commission on any subscription fees charged from within an iOS app, and more so the fact that the tech giant forbids app operators from directing users to their own websites, where they can collect subs without paying Apple its cut.

Because the streaming services' own profit margin is (at best) 30%, the platforms have to pass the Apple charge onto the customer if and when they choose to subscribe via the iOS app. Which is all the more annoying since the IT firm moved into streaming itself, because it means - from an iOS perspective - Apple Music looks like it's £3 a month cheaper than its rivals in the streaming music space.

However, adds Sewell: "We did not alter our behaviour or our rules when we introduced our own music streaming service or when Spotify became a competitor. Ironically, it is now Spotify that wants things to be different by asking for preferential treatment from Apple. I would be happy to facilitate an expeditious review and approval of your app as soon as you provide us with something that is compliant with the App Store's rules".

But don't worry, Prince was on hand with a quick response to this too. Tweeting a screen grab of the updated Spotify app, he stated: "This is what Apple wants you to believe violates their rules. No offer, no purchase, no link to anywhere at all".

Next move Apple.

Police officers accused of misconduct in investigation of child abuse accusations against Lostprophets' Ian Watkins
The Independent Police Complaints Commission has reported the findings of two investigations into how South Wales Police investigated allegations of child abuse made against former Lostprophets frontman Ian Watkins. Its findings recommend that action be taken against three officers for misconduct.

As previously reported, Watkins was arrested in December 2012, accused of serious sexual offences against children. He was later found guilty and sentenced to 29 years in prison. Shortly after his arrest, the IPCC announced that it would investigate allegations that South Wales Police had failed to act quickly enough to arrest Watkins, based on a referral from the force itself.

Two investigations were launched, involving reports and intelligence relating to Watkins dating back as far as 2008. On Friday the IPCC announced that it was recommending that action be taken against one detective sergeant for gross misconduct and misconduct in each investigation respectively. Two detective constables are also accused of misconduct, for failing to follow all "reasonable and practicable" lines of enquiry. South Wales Police has agreed to instigate disciplinary proceedings.

IPCC Commissioner for Wales, Jan Williams, told reporters: "Having completed detailed investigations, over recent months we have liaised with South Wales Police over our misconduct recommendations. We probed a substantial number of reports and allegations relating to Ian Watkins made over a four year period to establish exactly who knew what and when, and how police officers responded. This has been a complex process".

"We aim to issue our fuller findings, including our examination of the wider organisational response of South Wales Police, following the conclusion of the misconduct proceedings currently being arranged by the force", she added.

As previously reported, last year the IPCC found that Bedfordshire Police Force had acted properly in relation to accusations made against Watkins.

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East London's George Tavern wins appeal to block planning application
The Court Of Appeal has overturned a planning decision to allow new flats to be built close to East London music venue The George Tavern.

As inner city regeneration and gentrification increases, a number of longstanding music venues have run into licensing troubles in recent years as a result of new residents moving in near by. These venues are often a major part of what makes an area of a city attractive again, bringing in property developers and then new residents, some of whom don't like the noise that comes from the nearby venue.

However, on this occasion it was not worries about future licensing woes that enabled The George to stop the building of new residential properties near by, but the venue's photography business. The court ruled that the new flats would have blocked out the only source of natural light onto the first and second storey landings of the pub, which are used for photography. The income from this business pays the venue's mortgage, subsidises live music nights, and funds the restoration of the 600 year old Grade II listed building.

Landlady Pauline Forster said in a statement: "I am relieved and happy that the judges have recognised the importance of the historic George Tavern, a local pub, live music venue, film, fashion and art shoot location, and my home. I have battled tirelessly over nine years for something I truly love and believe in. And I will continue to do so. May the light shine through and live music live on!"

"This judgment shows the courts really are prepared to protect grassroots music venues in London and warns planners not to take a one size fits all approach", added barrister Annabel Graham Paul. "Pauline Forster has battled tirelessly to save The George Tavern and this is fantastic result for her and for grassroots music venues further afield too".

Why not celebrate this news by heading down to the George this coming Sunday to see Japanese 'math-folk' musician Echoscape.

Guvera is the hotdog seller of streaming music, says CEO
Guvera began a PR offensive against the "traditional newspapers" last week, accusing the media of inaccurate reporting about the streaming company. Though, just for the record, the flagging digital firm definitely was blocked from floating on the Australian stock exchange, after which it did put two of its companies into administration.

According to the Sydney Morning Herald, an internal email was circulated last week assuring staff (those who hadn't already been sacked by the administrators) that the company would "hit back at the recent misreporting of the company in the traditional newspapers". This PR offensive seems to mainly consist of posting two videos online featuring execs saying that Guvera is great and everything is fine.

"It's really wild that I'm sitting here making this video", says founder Claes Loberg in his video. "Over eight years of developing a business with a brand new idea, everybody just focuses on one little thing, trying to draw comparisons that we are like Spotify, we're like Apple Music, we're a music subscription service, and does the model stack up or doesn't the model stack up?"

That doesn't sound much like just "one little thing", but let's hear him out. "We're such a completely unique beast in what we are. We're a model targeting the advertising industry. We're a model that actually allows advertisers to exist in a world where people just click past everything, and we're a model trying to monetise the 95% of people in the world that get free content".

"They want free content, they don't want to pay for a subscription service", he goes on. "It's the same people who have been receiving free-to-air television, free-to-air music since the 60s. This isn't a new model, we've just reversed the concept, and what we are is so different to the other players that exist".

Different, people, so very very different. Then he says that Guvera's aim is to be "a platform for brands to be useful", providing "branded entertainment" where the brand is "the curator of content, rather than the disruptor of content". Which doesn't sound so different from all the other free-to-access streaming services, though he then clarifies: "I mean, we do stream music, sure. But just the way that Ikea sells hotdogs. They're not a hotdog company, and we're not just a streaming company".

That's clear then. And now I want a hotdog. Loberg concludes: "In summary, Guvera is a music streaming business". Wait, what? "But it's not in subscriptions. It's in a far bigger market of 'brand funded'. Music is just the start of what we've done. We're about to introduce more content, more features around social and film and television. We've got a long journey ahead, and we're still as committed on that path today as we were one week ago and eight years ago".

For anyone still not convinced, Chairman Phil Quartararo then explains why he thinks Guvera is so exciting in one of the most boring two minutes of video I have ever watched. "I left EMI for a reason", he reveals. "I felt like the record companies were not listening to the consumers. In the retail business, the number one rule is, you listen to your customer, and I felt like the record industry had stopped listening to their customer, so I knew it was time for me to leave running the big companies".

If he was running those companies, couldn't he have made them listen to the customer? Oh well, he continues: "The reason Guvera was appealing to me and ultimately where I ended up was that the first order of business was to properly compensate artists for their art, composers for their compositions. And that was attractive to me, and I knew that Claes had a different, better idea of how we could do that and how we should do that and what kind of company could get that done".

Yeah, the hotdog thing. "Music fans are fans. They're not consumers only", he adds. "They're fans. Which means they're fanatics. They're fanatical. They're driven by passion. We're not selling widgets. We're not selling diapers. We're not on a shelf somewhere at Wal-mart. We are selling something that people care about".

I thought this was designed for the "95% of people in the world that get free content" though? Does that mean 95% of people are fanatical about music? Oh well. I wouldn't spend too much time pondering about how the two Guvera men sort of contradict each other. Instead let's just leave it to Quartararo to contradict himself.

"The number one stakeholder are our shareholders, and they've given us a giant vote of confidence by investing with us. It's our obligation to deliver them a good result. A great result. And the fans expect more, and it's our job to deliver it. To deliver a different and better product. To deliver something that we're proud of sending and they're proud of receiving".

So, shareholders are number one. Fans number two. Though I'm sure artists and composers were supposed to be in there somewhere.

Despite all this, it does still remain a fact that two of Guvera's companies were put into administration last month, with 60 people either losing their jobs or being moved to other parts of the group. And a creditors meeting to discuss the AUS$15 million owed by those two companies is now scheduled for 7 Jul.

Administrator Neil Cussen of Deloitte Australia told the Sydney Morning Herald: "Over the course of the next week we will be working with management to see if we can get a proposal that we can talk to the creditor group about in relation to a deed of company arrangement. I don't have any direct concerns today, but we have been spending [our time] in the subsidiary companies [so] we haven't had time to turn our thoughts to Guvera Limited at this stage".

You can see why no one asked Neil to make a video. Meanwhile, the Australian Financial Review reported last week that all was very quiet at Guvera's Sydney HQ, with apparently no staff in the building. Maybe they were all out getting hotdogs.

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Crowdmix staff say they haven't receive wages again
Reports of Crowdmix's financial troubles arose again last week, with staff saying that they had not been paid their salaries on time for a second month.

As previously reported, as the digital start-up's CEO Ian Roberts departed last month, staff claimed that they had not been paid their May salaries until the middle of June. Now they're telling Business Insider that their June wages are yet to arrive in their bank accounts. Staff have also reportedly been told not to bother coming into work until the company's funding issues have been resolved.

The business said early last month that it was in the process of raising more money. Records also show that it was recently loaned £6.5 million by one of its existing investors, property tycoon Nick Candy.

In development for three years, Crowdmix finally beta launched its app in May, with invitees able to test out the super duper social network for music.

Squarepusher announces "internationalist collaboration with sound makers" in response to EU Referendum
Squarepusher has launched a new remix project to create music in response to the recent referendum result in favour of the UK leaving the European Union. He has asked producers and musicians to rework a new piece of music - titled 'MIDI Sans Frontières' - which he has made available via his website.

"The referendum on the UK's membership of the EU has had appalling consequences", says Squarepusher, aka Tom Jenkinson, on announcing the project. "It has amplified many divisions in society and in particular has helped to re-establish xenophobia as legitimate and acceptable. Witnessing this against the global backdrop of a resurgence of the far right, it's essential that those who find these developments unacceptable make their thoughts known and take action".

He continues: "This piece of music was written in the aftermath of the referendum and I present it as the basis of an internationalist collaboration with sound makers irrespective of what kind of music they make, where they live, their background, their age - all are invited to participate. It is not offered as a substitute for progressive political action but as a complement to it. I put it forward in defiance of the bigotry threatening the fragile connections that exist between us all. I hope it will be an opportunity to reaffirm some of those connections amidst a very disturbing situation".

Find out more about the project and how you can get involved here.

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Gilles Peterson on the search for new Future Bubblers
Gilles Peterson's Brownswood Records has this morning opened up applications for the second year of its Future Bubblers talent discovery scheme.

Launched last year, Future Bubblers concentrates on finding and mentoring upcoming artists from two cities at a time, though applications are still welcome from across the UK. Last year Nottingham and Salford drew focus, this year Sheffield and Hull will benefit.

"The Year One Bubblers have already been making really exciting moves and massive progress", says Peterson. "I'm sure Year Two is going to bring in a new group of Bubblers just as full of music magic and potential".

One of the first year discoveries, Revenu, adds: "Becoming a part of Future Bubblers has helped me build confidence in my work, which can be difficult when you don't have much to show for it in the early days of 'being an artist'".

He goes on: "The experience so far has been tailored to my own creative vision; there's no pressure to make something that will 'fit', as whatever I create Future Bubblers find fellow artists/labels that it would sit with. A bunch of music I wasn't sure what to do with now feels like a more focused path, and it's such a great feeling when you find out artists that inspire you approve".

For further details head on over to www.futurebubblers.com

Bastille announce new album, arena tour
Bastille have announced that they will release their new album, 'Wild World', on 9 Sep, ahead of an arena tour in October and November.

"If our first album was about growing up and the anxieties surrounding it, our second is about trying to make sense of the world around you, both as you see it and as it's presented to you through the media", says frontman Dan Smith. "It's also about asking questions of the world and of the people in it. We wanted the album to be a bit disorientating - at times extroverted and introverted, light and dark".

The album's first single, 'Good Greif', was released last month.

Tour dates:

29 Oct: Bournemouth, BIC
29 Oct: Plymouth Pavilions
31 Oct: Cardiff, Motorpoint Arena
1 Nov: London, The O2
4 Nov: Leeds, First Direct Arena
5 Nov: Nottingham, Motorpoint Arena
6 Nov: Manchester Arena
8 Nov: Birmingham, Barclaycard Arena
12 Nov: Glasgow, The SSE Hydro
13 Nov: Newcastle, Metro Radio Arena

BMG, Mobile Roadie, Frank Ocean, more

Other notable announcements and developments today...

• BMG has acquired New York rock label The End Records. "I have been very impressed with BMG and its amazing team", says founder Andreas Katsambas. "It is clear we share the same vision for artists and label partners. This is the start of a great relationship".

• Remember music app maker Mobile Roadie? Go on, you do. Well, it was bought by a company called Intellectsoft last year and now has a new CEO and CTO: Gino Padua and Vova Soroka respectively.

• Ah, government. Do you remember when we used to have government? I actually prefer the soap opera that we brought in to replace government here in the UK - even if it's not particularly realistic - but London, it seems, still has some government. Mayor Sadiq Khan has appointed Justine Simmons to be his Deputy Mayor For Culture & Creative Industries. London has a great creative industry, of course, including the comedy writers behind the aforementioned new sitcom 'Westminster', which has already picked up a global following.

• Frank Ocean has published an image on his website that may be an indication that his new album, 'Boys Don't Cry', is coming out this month. Though it does also serve as a reminder that he previously implied that it would come out last July, so who knows?

• Scott Walker is releasing a new album, his soundtrack to new Robert Pattinson-starring film 'The Childhood Of A Leader', on 19 Aug. Here's 46 seconds of it.

• Jamie XX has made a video for 'Gosh', taken from his 'In Colour' album.

• Whoa, check out this new track The Bug's done with D Double E. It's out on 5 Aug, backed with a collaboration with Riko Dan.

• Clams Casino is finally releasing his debut album, '32 Levels', on 15 Jul. So that's exciting. Here's Kelela collaboration 'A Breath Away'. He'll be playing Village Underground in London on 11 Aug.

• The comeback of the year continues, here's new Stooshe.

• 'New Friends' by RABBII has a video now.

• Sofi Tukker have made a video for 'Drinkee'. Their debut EP, 'Soft Animals', is out this Friday.

• Frances has released a new single, 'Say It Again'. Frances has released a new single, 'Say It Again'.

• Shura will be playing her biggest headline show ever at The Forum in London on 7 Dec.

Seal books busker as last minute support
Having gatecrashed busker Poppy Waterman-Smith's own set in Manchester's Piccadilly Gardens, Seal then insisted that the very same busker do his job entertaining 2000 people at the city's Bridgewater Hall that evening. What a bastard.

"I still feel a bit numb really like it hasn't sunk in because it all happened so quickly", Waterman-Smith told the Manchester Evening News of Seal's imposition. "But obviously it was an absolute dream come true. He is one of my parent's favourite artists so for me to be able to play with him and then support him, with my mum watching, was absolutely incredible. He was just such a lovely person".

Lovely person? Bastard more like. So yes, Seal saw Poppy busking in Manchester, joined in, and then invited her to open for his show at the Bridgewater Hall later that day. OK, aright then, lovely person it is.

"I was on a walkabout today and heard the dulcet tones of this beautiful lady", said the man himself while introducing his last minute guest support. "She was busking down town so I'm bringing her to you from the streets of your very own Manchester".