Music in 2024 is bringing in more cash than music in 2001 (just don’t mention inflation); Ja Rule says he worried that cancelled tour would be cancelled

We've covered the music business

each day since 21 Jun 2002

Today's email is edition #5165

Thu 29 Feb 2024

In today's CMU Daily: Universal Music boss Lucian Grainge’s “phone is always open” if TikTok CEO Shou Zi Chew wants to get in touch to sort out this whole licensing thing. Not that Lucian cares, mind. He’s happy with all the friends he’s already got


One Liners: Cyndi Lauper, SM, Bella Union, Alternative Songs deals; Steve retires from AFO; Sony and BMG promotions; UK Women In Music; Apple EU fine; Bauer local rebrands; John and Taupin for Gershwin Prize; MTV EMAs; Ezra Furman, Shygirl, Onyx gigs; new music from Charli XCX, St Vincent + more


Also today: UK music retail revenues are now higher than at the peak of the CD era in 2001 (so long as you don’t adjust for inflation), the company that owns the Earth, Wind & Fire trademark says a show put together by former members of the group was “tremendously” confusing, and Ja Rule says he was told his criminal record wouldn’t affect his now cancelled UK tour

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€111 million in TikTok revenue is nothing when you’re Lucian Grainge - but, he says, “my phone is always open” if Shou Zi Chew wants to be friends again

With Universal Music’s earnings call to review its full year 2023 financials coming right at the crunch point for the mega-major’s spat with TikTok, it was inevitable that questions about that dispute would dominate yesterday’s proceedings. A key nugget: TikTok brought UMG €111 million in revenue in 2023 - which is a mere €200 every minute of every hour of every day. But when you’re Universal Music that’s such a tiny amount of money that no one will even notice. €200? That’s less than a glass of Cristal.


After an ebullient start to the earnings call, replete with the usual hooting and trumpeting of Universal’s absolute dominance of the music business on earth and across the known galaxy, Grainge honed in on the driver of UMG’s success in 2023 - the artists and songwriters signed to the company - and rattled off an exhaustingly triumphant list of those achievements.


That included: nine out of the top ten most commercially successful recording artists (including all of the top eight) were UMG; six of Spotify’s global top ten artists were UMG; thirteen of the top 20 global songs on Apple Music were UMG; three of the top five songs on YouTube were UMG; four of the most streamed artists were UMG; six of the top ten albums on Billboard 200 were UMG, three of the top five Billboard Hot 100 songwriters were UMG. Are you impressed yet? No? There’s more. 


Around the world it was similarly SPECK. TACK. ULAR! Universal artists dominated Japan, Germany, Atlantis, Valhalla, Zerzura and Proxima Centauri B. Even Uranus reports positively on Lucian’s triumphs in 2023.


A big part of Universal’s success was - said Grainge - “cleaning up all the noise fraud and algorithmic gaming that was contaminating fans' experience in seeking out real music”. But just be sure that any of that ‘real music’ is from UMG artists, and not one of the hundreds of thousands of independent artists demonetised by Spotify at Universal’s behest.


Universal had banked on this “cleaning up” taking “many years” but, within a blink of an eye - mere months! - “several platforms, including Deezer and Spotify announced their plans to profoundly advance” their collusion with Universal to demonetise huge swathes of the music industry.


Holding back a single tear, Grainge struggled to “adequately express how gratifying the show of leadership from many of our platform partners has been”. That leadership, he continued, provides “an environment that revives the fundamentals of artist discovery”.


What’s more, that gratifying leadership is thrown into particularly stark relief by some ungrateful wretches who don’t sing the Universal song. “We’re committed to supporting a healthier, sustainable, existing and more competitive music ecosystem”, he went on. 


That ecosystem is “an environment in which great music is not drowned out by a sea of noise, where music is easily and clearly accessible for fans to discover and enjoy”. Great if you like Universal-signed artists, because they are very easy to discover given their domination of all charts, playlists and top whatever rankings on every platform ever.


A momentary pause. This ecosystem includes “most importantly, an environment in which the creators of all music - ALL music content - whether in the form of audio or short form video are fairly compensated and will therefore be able to thrive as artists and creators for decades to come”.


Uh oh. What’s that, Lucian? Short form video? Out came the knife, and only seven minutes in. This is what we had been waiting for. 

👉 Click through to see what Grainge said about TikTok

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ONE LINERS

Charli XCX, St Vincent, Cyndi Lauper + more

DEALS


Swedish entertainment company Pophouse has acquired a majority stake in the recording and publishing catalogues of Cyndi Lauper. “Since we first met, Pophouse has impressed me with their commitment to maintaining and developing my professional life’s work and ensuring its legacy”, she says. 


HYBE is set to acquire the remaining stake in K-pop company SM Entertainment held by its founder Lee Soo-man. The deal will give it an additional 3.64% interest in the firm at a cost of 104.3 billion won (around £61.7 million). HYBE initially purchased a portion of Lee’s shares last year, in a battle to take control of the company that it ultimately lost to Kakao.


Bella Union has signed a global label solutions deal with Believe. "We are all THRILLED to begin an exciting new chapter in the Bella Union story, working with the fantastic team at Believe”, says label founder Simon Raymonde. “I am an instinctive person who always follows my gut. My team at Bella Union have all been with the company long term and we need to feel the love from the people we work with and for. Meeting Ben [Rimmer, Regional Director, Believe UK & Northern Europe] and his team that love was supremely evident”.


Alternative Songs - the joint venture between artist management firm Various Artists and publishing company Stellar Songs - has announced four new signings, Glen Roberts, RNDM BEATS, DeijuVHS and Ed Cosens. “We’re off to a great start with these four signings, we’re here to stay and we’re looking to add to our growing pool of talent”, says company head Joe Etchells. “Alternative Songs exists to offer the chance for songwriters and producers to come in from leftfield and deliver mainstream success”.


APPOINTMENTS


Steve Heap has announced that he will retire as General Secretary of the Association Of Festival Organisers on 2 Apr. At that point, control of the organisation will be handed over to the Association Of Independent Festivals and its CEO John Rostron. “Since founding AFO in 1987, I have devoted a considerable amount of time, effort and love to the grassroots festival industry”, says Heap. "I am delighted to be giving the reins to John Rostron and the team at AIF, where I know AFO members will find support, knowledge, campaigning and unity in this world of festivals”.


Sony Music has promoted Damaris Rex-Taylor to Managing Director at RCA Records UK. “I believe we’re at a pivotal moment in the music industry, where the opportunity to shift cultural paradigms has never been greater”, she says. “I’m excited to champion UK talent and explore new frontiers in music, technology and social impact”.


BMG has promoted Marian Wolf to SVP Music Publishing, North America. “I am excited to lead our North American publishing teams into this next chapter”, she says. “Publishing continues to be a cornerstone of BMG’s business and I am THRILLED to continuously innovate the way we serve our songwriters and publishing clients as creative partners”.


INDUSTRY EVENTS 


A ‘UK Women In Music’ lunch was staged earlier this week in support of the new Empowerment Fund set up by Annie Lennox’s global women’s rights organisation The Circle, with a plan to make it an annual event. “I feel so proud to see all these outstanding women attending the inaugural ‘UK Women In Music’ lunch in support of The Circle”, says Lennox. “To have them all standing in solidarity with our message of global feminism is very powerful. The future of feminism must be global. When one in three women are impacted by violence in their lifetime, we must all contribute to creating transformative change”.


DIGITAL


The European Union will formally fine Apple €500 million for breaching competition law on 5 Mar, according to Reuters. This follows an investigation into the tech giant’s App Store rules that began with a complaint from Spotify


MEDIA 


Bauer is rebranding two more of its local radio stations under the Greatest Hits brand. Wave 105 is to become Greatest Hits Radio South Coast, while Pirate FM will be renamed Greatest Hits Radio Cornwall. “Pirate FM and Wave 105 are both well-loved and recognised station identities in their own areas, and we want to build on their fantastic success and secure their future by transforming them into these nationally recognised brands”, says Gary Stein, Hits Radio Group Programme Director.


AWARDS


Elton John and Bernie Taupin are set to receive the US Library Of Congress Gershwin Prize next month. “I’ve been writing songs with Bernie for 56 years and never, when we started out, did we ever think that one day this might be bestowed upon us”, says John. “It’s a huge honour, probably the biggest honour we’ve ever been given as a songwriting partnership”. The prize will be presented on 20 Mar, alongside a tribute concert featuring performances from Garth Brooks, Annie Lennox, Brandi Carlile, Maren Morris and Metallica.


The MTV European Music Awards will this year take place at the Co-op Live arena in Manchester. “The MTV EMAs is one of the biggest global music celebrations, bringing together local and international artists to create iconic performances for fans around the world”, says Bruce Gillmer, President of Music, Music Talent, Programming & Events at MTV owner Paramount. “With music at the very heart of Manchester’s rich creative heritage, this vibrant city - with the state-of-the-art Co-op Live - will guarantee a supercharged 2024 show”. The event is set for 10 Nov. 


GIGS & TOURS


Ezra Furman will play two shows at London’s Union Chapel on 16-17 Jul. "This maladjusted gal is skipping over the puddles and landing in London - the Glasgow of England - for my first non-Boston shows in a long while, two of em, in which I will do whatever I want to do”, she says. “I will admit what I want to do will be more music than non-music. And I will have guests and read things and sing things and probably talk some to you about things and there are no rules”. Tickets go on sale tomorrow. 


Shygirl will bring her Club Shy night to Fabric in London on 19 Apr. Tickets are available now. 


Onyx have announced UK tour dates in April, including a show at London’s Islington Academy on 21 Apr. Tickets are on sale now. 


RELEASES


Charli XCX will release new album ‘Brat’ this summer. Out today is new single ‘Von Dutch’


St Vincent has announced that she will release her new album ‘All Born Screaming’ on 26 Apr. She’s just released new single ‘Broken Man’


Cigarettes After Sex will release new album ‘X’s’ on 12 Jul. Out now is new single ‘Tejano Blue’. The band will play the O2 Arena in London on 12 Nov. 


Stereophonics frontman Kelly Jones will release new solo album ‘Inevitable Incredible’ on 3 May. The title track is out now. 


Rico Nasty and Boys Noize have teamed up for new EP ‘HARDC0RE DR3AMZ’, which will be out on 29 Mar. Out now is new single ‘Arintintin’


Julia Holter has released new single ‘Evening Moon’. Her new album ‘Something In The Room She Moves’ is out on 22 Mar and she will play EartH in London on 9 Apr. 


Keeley Forsyth will release her third album ‘The Hollow’ on 10 May. Out now is lead single 'Horse'.


Chastity Belt have released new single ‘Chemtrails’. Their new album 'Live Laugh Love' is out on 29 Mar and they will be touring the UK in June, including a show at Village Underground in London on 14 Jun.


Kiran Leonard will release his latest album ‘Real Home’ on 17 Apr. Out now is new single ‘My Love, Let’s Take The Stage Tonight’. UK tour dates are scheduled for May, as well as a standalone show at London’s Moth Club on 26 Jun.


Sohodolls have released new single ‘What Kinda Love’.

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Approved: Orbury Common

Over a series of EPs, Emlyn Bainbridge and Josh Day-Jones have conjured a picture of the mysterious fictional village of Orbury Common through the traditional music they have created for it. And while it does draw on elements of folk, morris dancing and other sounds associated with the British countryside, the tracks have been far more dancefloor-focused than you might expect.


Returning with their debut album ‘Sylvan Chute’ later this year, the duo are set to expand this world and confound expectations further. Their new music sees them move towards a more dreamlike, less clubby sound, and introduce their own vocals. The first single from the album is ‘The Resident’, the origins of which, they say, “date back years, arguably centuries”.


“The original version”, they explain, “which was a fixture of our live set in 2023, featured the verse’s looping bells, bass synth and beat, alongside ancient Gregorian chant, the melody of which we later emulated when writing our own vocals”. 


“Our lyrics and unison vocals came together in a session at the PRAH Foundation in Margate”, they add, “describing a dream-like vision of a crumbling mythic landscape, through a yearning, reaching lens - a theme that recurs often across ‘Sylvan Chute’”.


The album is set for release on 7 Jun and they have various live dates over the coming months, including at Two Palms in London on 8 Mar. 


🎧 Listen to ‘The Resident’ on YouTube

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UK music retail revenues reach record high, according to ERA stats 

UK music retail revenues reached an all-time high in the twelve month period up to 23 Feb, topping £2223 million and out-performing the peak of the CD era in 2001.


In that year, total music retail revenues were £2221 million. Everything then slumped in the decade that followed with the traumatic shift to digital. However - thanks to the streaming boom - we're now £2 million up on the previous peak. Unless, of course, you adjust for inflation. Because, according to the Bank Of England, £2221 million in 2001 would be £3968 million today, which puts something of a damper on the celebrations. So probably don't think about that. 


ERA - the UK trade group for music retailers and streaming services, which provided us with the all-time high stat - notes that, back when the CD era peaked in October 2001, Kylie Minogue topped the singles chart with ‘Can’t Get You Out Of My Head’, while a greatest hits album from Steps was at number one in the albums chart. What crazy times those were. Imagine living in a time when new releases from Kylie Minogue and Steps ended up in the top ten. Well, I guess we are living in that time right now. 


Except, people aren't spending £35 every time they access a new album today, which would be the inflation adjusted price of a CD, based on an average 2001 price of £17.99. Taking that average price, something like 123,457,476 CDs were bought in 2001. With 21.7 million households in the UK back in 2001, that’s about 5.7 CDs each. 


At the inflation adjusted price, that would mean £199.50 per household to enjoy nearly six album's worth of new music, compared to £216 for a Spotify family plan allowing you to enjoy all new music. If every one of the UK’s now 28.4 million households was to spend £200 a year on music today, we’d be well beyond even the inflation-adjusted peak, with £5680 million in music revenue. But alas, we are some way off from achieving that just yet.


On physical music sales, ERA told CMU that the 2023 revenue numbers break down to 86% digital and 14% physical. This means that in the year to date £311.2 million of physical music was sold. With recent Luminate stats showing the sweet spot for vinyl price points falling in a £15-23 range (adjusted from US dollars), then this could represent something in the order of 13.5 million to 20 million physical music sales - assuming they were all around that price. 


“This is a day many thought would never come”, says ERA chief Kim Bayley on the organisation’s new stats. “It is a red letter day for music and the artists and songwriters who soundtrack our lives. There’s still a long way to go, but these numbers show that thanks to the innovation and investment of streaming services, music is on the right track". 


"No one should underestimate the seriousness of the plight the music industry faced in the decade following 2001", Bayley adds. "It was an existential crisis. Luckily a new generation of music loving tech entrepreneurs were able to see a way to a new model, based on subscriptions rather than sales. Today draws a line under 2001 and highlights the fact that music sales have more than doubled since 2013. That’s great, but after 20 years of inflation, it’s still not enough".

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Trademark dispute over Earth, Wind & Fire tribute shows back in court

A dispute over tribute concerts that feature musicians who previously performed with Earth, Wind & Fire was back in court this week. The company that manages the band's brand reckons that the way those shows were billed - initially as the ‘Earth, Wind & Fire Legacy Reunion’ - confused fans and even venues into thinking that they were official concerts, when they were not. In fact, the confusion was "tremendous', a legal rep claimed this week. 


Tribute bands and concerts always need to be careful not to suggest official endorsement from the band or artist they are celebrating, even if some of the musicians have had an official connection with the band or artist in the past. And in this case, Earth Wind & Fire IP LLC argues, promoters Substantial Music Group and Stellar Communications did not exercise any such care. So much so, they should be held liable for trademark infringement. 


However, according to Law360, a legal rep for the promoters insisted in court that fans knew exactly what they were getting when booking tickets, especially after the concerts had been renamed 'Legacy Reunion of Earth, Wind & Fire Alumni'. Ticket buyers, he reckoned, would assume "they're listening to a band consisting of people who used to play for Earth, Wind & Fire", and that's exactly what they were listening to. 


Responding to the allegation that images of the original band had been used to promote the alumni concerts, adding to fan confusion, attorney David Friedland said that this happened in materials prepared by third parties, such as venues, rather than by his clients. Substantial and Stellar had also sought to have the adverts featuring those images removed. 


Speaking for Earth Wind & Fire IP LLC, Mark Lee argued that that just proved how much confusion these shows have caused. Because it wasn't just the fans who were confused. "There's tremendous middleman confusion", he said. "Confusion by the venues or ticketing agencies. We have that in spades here". 


Lee wants the judge overseeing the case to issue a summary judgement confirming that Substantial and Stellar infringed his client's trademarks. "Having performed in a band does not allow you to mislead the public as to your present association with the trademark", he added. 


The promoters also want a summary judgement, but in their favour. Because their shows feature musicians who were previously members of Earth, Wind & Fire, they reckon the names used for the concerts were simple statements of fact. Which, in legal terms, means that the way they used the Earth, Wind & Fire brand constitutes "a nominative fair use of the trademark". 


Earth Wind & Fire IP LLC - which is owned by the family of late Earth, Wind & Fire founder Maurice White - initially filed its trademark infringement lawsuit with the courts in Florida in March last year. Substantial and Stellar then tried to have the case dismissed on jurisdiction grounds, but without success


The judge said he would now rule on the motions for summary judgement in the next few weeks. If he declines to issue any such judgement, the case should get to trial in May.

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Setlist Podcast: The music business in 2024

In this special edition of Setlist, Andy Malt and Chris Cooke dive into topics covered in CMU's latest series of masterclasses, which look at the music business in 2024. We talk through key trends in streaming, copyright, AI and more. 


🎧 Click here to listen - or search for 'Setlist' wherever you normally listen

Ja Rule says he told promoter criminal record could cause problems for now cancelled UK tour

Ja Rule has claimed that his team made promoter TEG Live Europe aware of his criminal record before he signed up for a tour of the UK. That tour, which was due to kick off in Cardiff tomorrow, was cancelled earlier this week after the rapper was refused entry into the country because of his criminal record. 


"My team made it clear to the promoter that I have a criminal record and can’t get in the country", he said in a post on X yesterday. "The promoter swore this wouldn’t be an issue. The promoter started selling tickets. Y’all love to blame the artist lol... get your refunds!"


The rapper announced earlier this week that his UK tour - which also included shows in London, Birmingham, Nottingham, Leeds and Liverpool - had been cancelled because he had been denied entry into the country by government officials. 


"I’m so devastated", he wrote, "I can’t believe the UK won’t let me in, I’ve spent a half million dollars in production of my own money to put this tour together only to be denied entry days before my shows. This is not fair to me or my fans, these venues are 85% sold and now I can’t come". 


He then provided a bit more detail about why he has been denied permission to tour in the UK. "The UK is one of the few European countries that restricts entry to people with criminal records", he said. "In general, you will likely be denied entry if you have been convicted of a crime punishable by 23 months or more under British law or served more than twelve months in prison". 


Ja Rule served jail time in the US from 2011 to 2013 after pleading guilty to attempted criminal possession of a weapon, which followed an incident in 2007 when police said they found a loaded gun in the rapper's car after it was pulled over for speeding. He also ended up serving some extra months in jail after being found guilty of tax evasion. 


In its statement about the cancelled tour, TEG Live Europe blamed "unforeseen circumstances", despite Ja Rule's insistence the circumstances were in fact foreseen. "We regret to inform you that Ja Rule's 'The Sunrise Tour' in the UK and Ireland next month has been cancelled", the promoter added. "Refunds will be issued from your point of purchase. We sincerely apologise for any inconvenience this may cause". 


The rapper's one scheduled show in Dublin is presumably also cancelled because, without the accompanying UK dates, he can't justify bringing his entire live set-up across the Atlantic. Although, in the official listings, while the UK concerts are now marked as 'cancelled', the Dublin date is currently showing as 'postponed'. 


Maybe Ja Rule could just do a residency in Dublin and TEG could do a deal with Ryanair to fly over all of his disappointed British fans.

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