In today's CMU Daily: IPO looks into international reciprocals; Tramlines agrees deal for Sheffield park; Nightclub operator Rekom - formerly Deltic - heads into administration; victims of Japan talent manager Johnny Kitagawa criticise compensation handling.

Also today: Micheal Kill, CEO of Night Time Industries Association talks lobbying, Listen For Life Campaign + upcoming NTIA summit

CMU's virtual masterclass Music + AI In 2024 takes place on Tuesday 20 Feb. Attendees can access the session live on Zoom and then on-demand via the CMU learning platform. Click here for information on all of the upcoming CMU online masterclasses and to book your place. 

UK’s IPO to look at neighbouring rights and reciprocal payments to foreign performers

The UK's Intellectual Property Office has opened a consultation on which foreign performers should qualify for remuneration when their recordings are broadcast or played in public. It puts the spotlight on an issue that continues to cause controversy within the European Union. 

“This consultation is focused on an important and complex issue, and it’s crucial that we gather a range of evidence and views”, says IPO boss Adam Williams. “We strongly urge anyone with an interest in this topic to have their say and respond to the consultation". 

This all relates to money generated by the broadcast and public performance of recorded music, what are often called neighbouring rights revenues, and which in the UK are managed by collecting society PPL. That revenue is shared between whoever owns the copyright in a recording - often a label and referred to as the 'producer' in law - and the performers who appear on it. 

When users of music in the UK which rely on PPL licences broadcast or play tracks that were recorded and released in other countries, it's the rights of foreign labels and performers that are being exploited. However, it is still PPL that collects the money, passing it on to its counterpart societies in other countries, which then pay the relevant labels and performers. As a result, rights and royalties move around a global networking of collecting societies. 

However, in some countries, restrictions in copyright law mean that money isn't generated when recorded music is broadcast or performed. That includes the biggest music market of them all, the USA, where only online and satellite broadcasters have to pay any royalties. 

This poses the question: if country X has broadcast royalties and country Y does not, should country X still pass money over when music from country Y is broadcast or performed, even though there are no equivalent royalties to flow in the other direction?

Some copyright systems answer that question "no", applying what is called the ‘reciprocity’ approach. So no royalties would flow to labels and performers in the US, because no royalties are flowing back from that market. In the European Union, different countries used to apply different approaches in this domain, but the EU courts ruled that under European law the ‘reciprocity’ approach is not allowed. Which has created something of a controversy. 

In the UK, the rules that define whether or not foreigners qualify for broadcast and performance royalties differ for copyright owners and performers. The outcome of which is that labels generally do qualify and performers do not. 

Outlining the new consultation, the IPO states: "At present, UK law restricts foreign performers’ eligibility for [performance royalties] on material reciprocity terms but provides [performance royalties] to foreign producers on a broad basis”. 

“While the international treaties on copyright allow parties to apply material reciprocity in respect of [performance royalties]”, it adds, “they require greater consistency between the treatment of performers and producers than UK law currently provides".

It is likely that any change to the rules wouldn't impact on the customers of music, but would change the way revenues coming into the industry are distributed. As this consultation progresses, it will be interesting to see whether there is a disagreement between different stakeholder groups within the industry on what is the best approach. 

There is more information about the consultation here.

APPROVED

Approved: The Narcotix

Following on from their 2021 EP ‘Mommy Issues’, The Narcotix are set to release their debut album ‘Dying’ later this year. Out today is its first single ‘The Lamb’, a beguiling concoction of layered harmonies and intricate guitar parts that draw on math rock and African genres such as soukous and highlife. 

Formed by Esther Quansah and Becky Foinchas in 2017 - and now working with guitarist Adam Turay, bassist Jesse Heasly and drummer Matt Bent - the duo’s new song shows off an absolute confidence in their vision.

Discussing the single, they say: "’The Lamb’ invites listeners, and all beings, to be fearlessly and relentlessly exposed. Through this whimsical waltz, we reimagine the ritual of communion through a dreamy, light-hearted gaze”. 

“The ‘garden’ represents the deepest parts of the innermost, where the roots of our fears, traumas and subconscious desires reside”, they go on. “Though often portrayed as a frightening place worth avoiding, we highlight the glory that comes with exploring the unknown”.

"‘The Lamb’ is a sonic abduction to a mystical land inside oneself at the hands of perspicacious garden gnomes", they conclude.

Listen to ‘The Lamb’ here. 

Full Time Hobby Music // D2C Marketing Assistant (London)

terrible* // D2C Customer Service Representative (London)

terrible* // Logistics & Production Assistant (London)

Snapper Music // Press & Promo Coordinator (London)

Como No & La Linea // Director (London/Hybrid)

UK Music // Chief Executive (London/Hybrid)

Deviate Digital // Digital Marketing Assistant (London)

ONE LINERS

BRITs Week, 6 Music Festival, Idles + more

DEALS

Smartlink platform Linkfire has renewed its deal to provide its Saas Marketing Platform to Universal Music. The agreement runs to the end of the year, at which point the partnership will have been in place for a decade. 

APPOINTMENTS

Kartel Agency has promoted Tom Poole to Director Of Promotions. “I’m honoured to continue my journey with Kartel and become a director at the company”, he says. “We have an unbelievably talented team at Kartel Agency, with the tools and ability to tackle almost any project and our diverse roster really showcases that”.

White label music distribution platform DistroDirect has confirmed four new appointments around the world. Ritnika Nayan joins in India, Ben Frigeri in the US, Henriette Heimdal in the UK and EU, and Samuel Fernandes in Brazil. They are tasked with expanding the platform, which was launched in 2021 by Australian distributor GYROstream.

STATS

Despite the continued rise in vinyl sales, only 12.8% of independent artists have ever released something on the format, according to a survey of 1000 self-releasing musicians conducted by distribution company Ditto Music. Those who do release on vinyl are also more likely to be older and play guitars - the most vinyl-happy demographics being artists over 55 and rock acts. Read more on this here. 

AWARDS

Elton John has won the Outstanding Variety Special (Live) award at this year’s Emmy Awards. This also makes him the nineteenth person in the history of the universe to have won an Emmy, Oscar, Golden Globe and a Tony. An Egot, as they’re known. Other musical Egots include Andrew Lloyd Webber, Tim Rice and John Legend. 

GIGS & TOURS

Aitch, Ash, Baby Queen, Cian Ducrot, CMAT, Keane, The Last Dinner Party, Pendulum, Sleaford Mods, Venbee and You Me At Six have all been announced as the acts playing this year’s BRITs Week in aid of War Child. The shows will take place from 19 Feb to 4 Mar. Enter the prize draw to win tickets here. 

The line-up for this year’s BBC Radio 6 Music Festival in Manchester has been announced. The festival runs from 7-9 Mar and will include performances from The Smile, Gossip, Young Fathers and more. Full details here. 

Eivør has announced UK tour dates later this year, starting with a show at London’s Electric Ballroom on 7 Oct. Tickets go on general sale on Friday. 

RELEASES

Idles have released new single ‘Gift Horse’, the latest from new album ‘Tangk’, which is out on 16 Feb. 

James will release new album ‘Yummy’ on 12 Apr. Out now is new single ‘Is This Love’. 

Yard Act have released new single ‘We Make Hits’. The band’s new album ‘Where’s My Utopia?’ is out on 1 Mar.

Enter Shikari have released new single 'Losing My Grip' featuring Fever 333’s Jason Butler. Both bands will be heading out on tour together next month. 

My Life Story have released new single ‘Running Out Of Heartbeats’. New album ‘Loving You Is Killing Me’ is out on 9 Feb. 

Hafdís Huld has released two new tracks, ‘Hindsight’ and ‘Softer Shade Of Blue’. Both are taken from her new album ‘Darkest Night’, which is out on 2 Feb. 

The year ahead: Night Time Industries Association

As we head into 2024, CMU has been sitting down with the bosses of many of the music industry’s trade organisations to talk about their work, the key challenges faced by their members, and what to expect in the year ahead. 

NTIA CEO Michael Kill discusses the organisation’s wide-ranging lobbying work, plus projects like the Listen For Life Campaign and the upcoming Night Time Economy Summit

Tramlines agrees new deal to use Sheffield park after washout 2023 edition

The Tramlines festival in Sheffield has agreed a deal with the city's council that will allow it to continue using Hillsborough Park as its venue. The new deal will increase what the festival pays to use the park. 

Having originally been staged in venues around Sheffield city centre, Tramlines moved to the council-owned Hillsborough Park in 2018. A review of the festival's licence to use the park began in 2022, although after last year's edition there were additional issues to consider. 

Torrential rainfall during the 2023 festival resulted in damage to the park that required months of repairs. According to the BBC, "grassed areas of the park had to be fenced off as experts in sports pitch renovation worked on the repairs and the council had warned the situation could not 'be repeated in future years'". 

To that end, consideration has been given to how the park can be protected should any future editions of the festival experience extreme weather conditions. 

A report prepared for a committee of the council states: "The current licence agreement has been in place since 2018 and following a review that started in 2022, coupled with the issues experienced following adverse weather in 2023, a comprehensive review of this licence agreement has taken place". 

The new licence, the report adds, ensures "there is clear agreement on how the park will be protected".

Although we know that Tramlines Events Limited - which is owned by festivals company Superstruct - will pay a higher fee under its new deal, specifics of the arrangement are not known. 

According to the Sheffield Star, the council report explains that the new fee to be paid by the festival cannot be made public because it is "deemed commercially sensitive information". It adds: “Tramlines regard their fee as commercially sensitive because the summer festival market is very competitive and the pricing of their tickets incorporates their costs and expertise".

CMU GUIDE: AI + MUSIC

Artificial intelligence + the music business: CMU's guide to (nearly) everything that mattered in 2023

There was a lot of discussion in 2023 within the music community about how AI will impact on music creation, music marketing, and the music business more generally.

There are clearly opportunities created by AI, and many ways that AI technologies will enhance the business.

An increasing number of music creators and music companies are exploring and identifying way to capitalise on those opportunities, and figuring out which AI products and services may offer ways to enhance their work.

Read CMU's (very) deep dive guide to the deals, disputes and debates, lawsuits and lobbying, and innovation and exploration that informed the conversation.

UK's largest nightclub operator heading into administration

The largest operator of nightclubs in the UK is heading into administration in a bid to restructure the business and deal with various financial challenges. The move at Rekom UK may result in some of its venues closing. 

Chair of the company Peter Marks said that administrators are being appointed in order to provide “breathing space and protection” while it negotiates with moneylenders, landlords and other stakeholders. He added: "We must go through this restructure to be able to come out stronger for the future. For any venues that may not continue as part of Rekom UK, we will do our best to find new owners and save jobs". 

Rekom UK used to operate as the Deltic Group and before that the Luminar Group. It last fell into administration in 2020 amid the COVID shutdown of the clubbing sector, which is when it was acquired by Nordic nightlife company Rekom. It currently runs more than 45 clubs and late night bars across the UK, including the club brands Atik and Pryzm. 

It is no secret that clubs and venues have faced many challenges since the COVID shutdown. Last year Rekom UK cited higher energy bills and poor midweek trading - in no small part because of the cost of living crisis impacting on students - as particular challenges. It will also be affected by the increase in the UK minimum wage in April.  

Marks added that “we still have a core of successful club and bar businesses and our Nordic brands, Heidi’s Bier Bar in Birmingham and Cardiff and Proud Mary in Cardiff and Swansea, have outperformed all expectations". However, the various ongoing challenges mean the firm's management have had to accept "that the group cannot continue in its current structure”.

Commenting on these developments, Michael Kill, CEO of the UK’s Night Time Industries Association, told CMU: "The NTIA is deeply concerned about the potential placement of some businesses within the Rekom Group into administration, adding to the constant stream of closures our industry faces on a daily basis. The nightlife sector is in crisis, and we implore the Chancellor and Prime Minister to recognise the urgent need for support before it's too late". 

"The continued lack of acknowledgement from the government regarding the severity of the crisis at hand is disheartening", he goes on. "Nightlife businesses, which contribute significantly to the cultural and economic fabric of our communities, are struggling to survive. The time for action is now".

"We call upon the Chancellor to provide targeted support to our industry, acknowledging its unique challenges and the devastating impact of ongoing closures. One crucial avenue for immediate relief is the reduction of VAT. Lowering VAT is a pragmatic and effective measure that can provide much-needed financial respite to struggling businesses, allowing them to weather the storm and continue contributing to our vibrant cultural landscape".

"The nightlife sector is not only a source of entertainment but also a vital economic driver, supporting countless jobs and businesses", he concludes. "As the industry teeters on the brink, we call on the government to acknowledge the gravity of the situation and implement measures that will ensure its survival". 

The developments at Rekom's UK business do not affect the company's operations in Denmark, Norway and Finland.

Victims of Japanese talent agency Johnny & Associates criticise handling of compensation claims

A number of the victims of late Japanese talent manager Johnny Kitagawa have criticised his company for its handling of compensation claims. The criticism came as the talent agency formerly known as Johnny & Associates said that 939 people have now submitted compensation requests. 

After decades of denial, Johnny & Associates finally admitted last year that Kitagawa - who died in 2019 - had a long history of sexually abusing boys who worked with his entertainment company. It then announced it had appointed three former judges to oversee a scheme that would provide financial compensation to Kitagawa's victims. 

In a statement at the time, the talent agency, now called Smile-Up, said: “We recognise that the late Johnny Kitagawa carried out sexual assaults over a long period and we apologise to the victims from the bottom of our hearts. We vow to carry out compensation and prevent a recurrence".

However, according to the Associated Press, a group representing a number of the victims yesterday held a press conference claiming that many of those who have made allegations against Kitagawa are yet to receive compensation. 

And, they added, they are aware of dozens of victims who have been told by Smile-Up that there is not enough evidence to honour their claims. Speaking for the group, Shimon Ishimaru, himself a victim of Kitagawa, said he had asked to meet with company officials to discuss their concerns but so far no meeting has taken place. 

A spokesperson for Smile-Up told the AP that of the 939 people who have made claims, 125 have now received compensation. The company hasn't yet responded to Ishimaru's criticism, but said it would continue in its efforts to compensate the victims of its late founder.