ICE Licensing // Senior DSP Audit & Assurance Manager (London)

ICE Licensing // DSP Audit and Assurance Manager (London)

IDOL // UK Label Manager (London/Hybrid)

Nonclassical // Executive Director (London)

Free Trade Agency // Office Co-Ordinator (London)

Today's music business news

TOP STORY

Bristol-based music distributor 3tone on a knife edge as employment tribunal judgements stack up and artists demand unpaid royalties

Bristol-based digital music distributor 3tone owes numerous artists and managers tens of thousands of pounds in unpaid royalties and has racked up a string of unsettled employment tribunal judgements for unlawful deduction of wages from employees.

It's also facing legal action from suppliers, is accused of running fake competitions and repeatedly breaking promises to artists, suppliers and staff.

Current staff have not been paid for months and former staff have been threatened with legal action by the company. Those threats have been made, we believe, as a direct result of us informing 3tone that we were going to publish this article.

CMU has also been provided with information indicating that the company has - on at least one occasion - sent faked remittance advice indicating that a payment had been made when in fact funds were never sent. This was seemingly an attempt to stop action that would have had significant implications for the company's ability to operate. Multiple sources have told us that they company policy was "don't pay anyone unless they make a fuss".

We have also been shown documents that appear to show revenue figures being altered. This could of course be simply someone correcting incorrect figures - but multiple sources say that the company often made these “corrections” to documents in this way.

On top of this, we have uncovered a company culture of intimidation, fear and bullying that has left some employees scared to speak for fear of what the company’s co-founder Dean Roberts might do.

CMU has approached numerous people in a wide ranging investigation into 3tone that has lasted six weeks and includes more than 50 hours of on and off the record interviews with more than 30 people who have been involved with 3tone as customers, suppliers, contractors, or staff.

Read our full report on this story here

ONE LINERS

Peermusic, Yunè Pinku, Yard Act + more

DEALS

Peermusic has acquired Norwegian publisher Arctic Rights Management. “The acquisition of Arctic Rights Management is a unique opportunity to grow our market presence in Norway”, says Mary Megan Peer, “adding the 32nd operating country to our global footprint, and to enhance the value at a time when the music market in Norway is booming, supported by digital sales, early adoption of paid music streaming services, and live music festivals”.

RELEASES

Kaiser Chiefs are back with new single ‘Feeling Alright’, co-written with Nile Rogers. “On the first day with Nile Rogers, he said ‘what have you got?’” says frontman Ricky Wilson. “We searched through some jams we had and this was a song that stood out to him. The band loved playing it round and round, and it must be fun to play but we never really knew where it would find a home”. Their new album ‘Eighth Easy Album’ is set for release on 1 Mar 2024.

Yunè Pinku has released new single ‘Killing Bee’. She says of the song: “’Killing Bee’ was born out of experimenting and playing around in the studio. It’s a bit different from what I’ve previously done and the other music I’m currently working on, but I thought it would be cool to drop it as more of a party track”.

Yard Act have announced that they will release their second album ‘Where’s My Utopia?’ on 1 Mar 2024. Out now is new single ‘Dream Job’. “In part I was scrutinising and mocking myself for being a moaning ungrateful little brat, whilst also trying to address how the music industry is this rather uncontrollable beast that hurtles forward unthinkingly and every single person involved in it plays their part”, says frontman James Smith of the new song. “Myself included, obviously”.

Cast have released new single ‘Love Is The Call’, taken from a new album of the same name, which will arrive early next year. "It’s a psychedelic pop song, full of bouncing rhythms with soaring melodies and harmonies”, says frontman John Power. “It’s a cosmic call to arms”.

Piri & Tommy have shared new single ‘Bluetooth’. They say: “”Bluetooth’ really feels like a new and improved iteration of the original Piri & Tommy vibe. It’s dreamy laid back love song over sunny drum and bass with Brazilian guitars backed by a huge atmosphere built by layers of synths and vocals”.

Grandaddy will release new album ‘Blu Wav’ on 16 Feb 2024. Out now is new single ‘Watercooler’.

Madge has released new Portugal. The Man collaboration ‘Tall Grass’. "I met Portugal. The Man via friends and immediately began to bug them about a collab”, says Madge. “We bounced ideas back and forth for months and collaged together the final product as a Frankenstein of all our virtual exchanges. We have the most insane text trail of messages, lyrics, voice notes, and pics. I feel proud that we made it happen”.

GIGS & TOURS

Cancer Bats will be touring the UK as Black Sabbath covers band Bat Sabbath early next year, including a show at the Underworld in London on 2 Feb. Tickets go on sale on Friday.

LABELS & PUBLISHERS

Hipgnosis Songs Fund shareholders vote against continuation forcing a "reset"

The result of today's Hipgnosis Songs Fund continuation vote has been announced - with a significant majority of shareholders voting against continuation and also voting to eject the company's chair Andrew Sutch.

The publicly listed Songs Fund has been under increased investor scrutiny in recent months as today's routine vote on whether to continue operating approached. Some shareholders have been very critical of the Fund's board and others have criticised Hipgnosis Song Management, the separate entity that advises the Fund and manages its catalogues.

A key concern has been the flagging share price. The board proposed addressing that by selling a stack of rights to the separate Blackstone-backed Hipgnosis Songs Capital and then using the profits of that sale to buy back shares and service the Fund's credit facility, in order to boost its share price. But then some investors weren't happy with the proposed Hipgnosis-to-Hipgnosis deal either.

Some other measures were then instigated to allay investor concerns. Two directors on the board announced that they would stand down, including Chair Andrew Sutch, who said he would leave the role as soon as a replacement was found and definitely before next year's Annual General Meeting.

Then last week a strategic review was announced. Though some more vocal shareholders continued to criticise the board and their advisors. And then yesterday it was announced two directors would actually stand down alongside Sutch, Andrew Wilkinson and Paul Burger.

83.2% of shareholders voted against the continuation of the Fund this morning and 71.5% voted against Sutch's reappointment, despite his commitment to ultimately stand down. As a result the planned vote on whether to approve the Hipgnosis-to-Hipgonsis deal did not happen.

The vote against continuation doesn't necessarily mean the Fund will be wound up, but it does force a "reset", with a new Chair to be appointed who will lead the already announced strategic review.

Commenting on all the latest developments, Merck Mercuriadis - founder of the Hipgnosis empire - said: "Today’s Hipgnosis Songs Fund AGM marks an opportunity to reset and focus on the future".

“Our conversations with shareholders have revealed a consensus that they are enthusiastic about the quality of the company’s iconic portfolio of songs", he goes on. "However, it is also clear that they are asking for change and we respect that feedback. Hipgnosis Song Management’s new management team and I have already started taking the relevant necessary action to meet the expectations of shareholders".

“Our commitment to the company’s shareholders remains absolute and we look forward to working with a new Chair and reconstituted board during this period to ensure that the Hipgnosis Songs Fund delivers for its shareholders. During this process, shareholders can be certain that Hipgnosis Song Management will continue to manage the songs with the greatest duty of care as always".

“Finally", he concluded, "I would like to thank Andrew Sutch, Andrew Wilkinson and Paul Burger for their important contributions to the company over the last almost six years".

LABELS & PUBLISHERS

Digital now biggest revenue generator for song right collection societies, CISAC confirms

Digital was the biggest revenue stream for the world's song right collecting societies for the first time last year, accounting for 37.7% of total collections. Royalties paid by broadcasters - previously the biggest revenue stream - accounted for 32.8% of collections in 2022.

This is according to the latest 'Global Collections Report' from CISAC, the global grouping for song right collecting societies. It aggregates revenue data from the collecting societies that represent songwriters and music publishers, so the likes of PRS in the UK, Sacem in France, BMI and ASCAP in the US, and so on.

Total collections across all the societies last year were up 28% to €10.8 billion. The live and public performance of music was the third biggest revenue stream, accounting for 23.2% of collections, with publishing royalties from physical products and the good old private copy levy generating much of the rest of the money.

The songs side of the music rights business was impacted more by the COVID-19 pandemic than the record industry because the live and public performance of music is a key revenue stream, and it obviously collapsed as the lockdowns went into effect. Broadcast revenues were also hit as the advertising sector wobbled, although - in the end - not as badly as expected.

All of which made digital a bigger deal during that period, with subscription streaming the one music revenue stream not really impacted by COVID at all, as subscriptions and revenues continued the grow throughout the pandemic.

That growth continues. Total digital revenues recorded by CISAC were up 33.5% to €4.1 billion last year as the streaming services continued to add more subscribers, plus some new and better licensing deals were secured by some societies.

It's also important to remember that not all digital income on the songs side flows through the collective licensing system. Many publishers license some catalogue - especially Anglo-American repertoire - through direct deals.

For technical reasons, some of that revenue is captured in the CISAC figures, but not all of it. And in the US, the mechanical royalties paid by streaming services via the MLC are not included either. So total digital income for songwriters and publishers is higher than what is reported in the 'Global Collections Report'.

Nevertheless, despite the growth, songwriters and publishers still generally feel they are not seeing enough value from the ongoing streaming boom. CISAC notes: "Digital music royalties to creators continue to substantially underperform in the wider context. Even at a record 37.7%, digital’s share of the total market is well below the corresponding share - 71% - for the recording industry".

In terms of live and public performance - the revenue stream most hit by COVID - income surged again in 2022 as the live sector resumed business, with a 68.2% increase in collections to €2.5 billion.

Though that is still 7.7% below pre-pandemic levels. CISAC reported that the speed with which live music returned differed greatly around the world, with bigger markets that have sizeable festival sectors seeing the highest growth rates.

DEALS

Warner Chappell and Transgressive extend their publishing partnership

Warner Chappell UK and Transgressive Publishing have renewed their partnership. The deal comes as Foals sign a new agreement with the Transgressive music publishing company.

Transgressive founder Toby L says: “It’s been over seventeen years since we first started collaborating with Warner Chappell and we couldn’t be more delighted to extend the partnership".

"It can often prove rare to find creative and cultural alignment in the music industry", he goes on, "but for almost two decades we’ve found not just common ground but excellent results alongside the worldwide team of Warner Chappell since the formation of Transgressive Publishing".

Transgressive was co-founded by Tim Dellow, with a third partner, Lilas Bourboulon, joining shortly after launch.

Referencing all three of them, Warner Chappell UK MD Shani Gonzales adds: “I’m so pleased that Tim, Toby and Lilas want to continue our partnership. They’ve got great music instincts and are always huge fun to work with. I look forward to celebrating many more successes with them!”

MEDIA

Mixmag 40th anniversary exhibition to raise funds for CALM

Mixmag will celebrate its 40th anniversary next month with an exhibition of its past covers in the Outernet complex in central London, in support of the suicide prevention charity CALM.

The magazine's MD Nick Stevenson says: "As the world's biggest, longest-running and most respected dance music media brand, our 40 years of covers tell the history of nightlife, from the birth of acid house to the rise of the superstar DJs, from the early discos and warehouses to the global festivals and arenas".

"It's our honour to open our archives and showcase the most iconic collection of covers and streams", he goes on, "and while doing so raising money for CALM, a charity that does incredible work for suicide prevention, bringing people together to show life is worth living".

CALM CEO Simon Gunning adds: “CALM operates at the heart of UK culture and there's no more iconic and influential name out there than Mixmag. Dance music and live events have brought joy to countless millions over the last 40 years, with Mixmag playing a major role in the continued development and success of the genre, so we're honoured to be a part of this monumental event".

Artists and DJs who appear on the covers set to be on display include Fatboy Slim, Madonna, Bjork, Calvin Harris, Daft Punk, Aaliyah, James Blake, Gorillaz, Carl Cox and Annie Mac.

LEGAL

Brazilian industry welcomes shutdown of piracy site FileWarez

The Brazilian record industry has welcomed the shutdown of a file-sharing service called FileWarez, which has been taken offline following action by the cybercrime unit at the São Paulo prosecutor’s office, which is known as Cyber Gaeco.

Global record industry trade organisation IFPI worked with the prosecutor’s office and Brazilian anti-piracy body APDIF in targeting FileWarez.

It said yesterday that the piracy outfit was “the most established illegal file-sharing forum in Brazil, dedicated to sharing illegal music content. While active, the site had more than 118,000 registered users with at least 24,000 monthly active users”.

Welcoming the shutdown, the President of the Brazilian record industry trade group Pro-Música, Paulo Rosa, says: “We are very grateful to the Cyber Gaeco unit of the prosecutor’s office of São Paulo for its continuous and successful work against music piracy".

IFPI’s Director Of Global Content Protection And Enforcement, Melissa Morgia, adds: “We congratulate Cyber Gaeco on their action. The site operated with no regard for the rights of music creators and has undermined the legal marketplace in Brazil. This is an important action in the continuing fight against piracy in the country”.

AND FINALLY

Emily Eavis says organising things a bit later might have got Glastonbury a stand-out headliner

Glastonbury Festival's Emily Eavis has told BBC podcast Sidetracked With Annie & Nick that she and her team are not as advanced as normal with their bookings for next year's edition, but that that might have helped them to get a big American artist on the line-up.

Confirming that the festival's 2024 line-up is "still a little up in the air" at the moment, she added: "I thought it was kind of taking shape and then last week I just got a call and... This is what happens if you wait a little longer, because quite often we’ll be booked up from July".

"This year we’re holding out for a little bit longer", she went on, "and last week I got a call from a really big American artist saying this person’s around next year and I was like 'oh my God, this is incredible, thank God we held the slot'".

While Eavis doesn't offer the podcast any real indications on who is likely to headline in 2024, she does discuss the other aspect of the Glastonbury line-up that gets lots of attention, that being gender diversity. She and the festival got lots of criticism for the fact that all of the headliners this year, and the high profile 'legends slot' booking, were all men.

She acknowledged that issue, noting that they did provisionally book a female headliner for 2023, but that they had to pull out and were then replaced by Guns N Roses. "I’m always trying to make it the most balanced, diverse bill", she then insisted.

"It is difficult with female artists because there aren’t enough headliners", she went on. “But we’re also creating them. We’re putting the bands and female artists on smaller stages and bringing them through all the time, so I feel like the pool is going to be bigger soon".

It is true that the pool of headliner level artists available in any one year is often less diverse, though those campaigning for more gender diversity across all festival line-ups argue that that doesn't mean there are no options.

Which means Eavis's remarks in that domain are unlikely to satisfy her critics. Though, looking ahead, she mused that 2024's festival might have two female headliners and "certainly I can say that the legend is female".