CMU Daily 29.09.16: YouTube hires Lyor Cohen as Global Head Of Music, Spotify in talks to buy SoundCloud as it launches in Japan

YouTube hires record industry veteran Lyor Cohen as Global Head Of Music
US record industry veteran Lyor Cohen is moving into bridge construction, and boy is it one long bridge he's gonna have to build. The former Universal and Warner Music exec is YouTube's new Global Head Of Music.

"Lyor is a lion of the music industry", declared YouTube's Chief Business Officer Robert Kyncl yesterday while announcing his new hire, even though I'm not aware of any lions who ever built a decent bridge. "From Rush to Def Jam to Island Def Jam to WMG then 300, he has consistently been a pioneer, charting the course for where music is heading", the YouTube exec continued. Still no bridge building on that CV though.

"As we enter the growth era of the music industry, Lyor is in a position to make tremendous difference in accelerating that growth in a fair way for everyone", Kyncl continued, still without referencing the bridge Cohen must now build. "We are THRILLED to welcome him to YouTube". Yeah, of course you are Rob, of course you are.

Although Cohen's new gig will come as something of a surprise to many, it's not an entirely illogical hire. As Cohen himself points out in his memo to YouTube's music team, it was during his tenure at Warner that the mini-major became the first big music firm to do a deal with the then fledgling video site in 2006. Though he doesn't mention that Warner was then also the first signed-up record company to have a highly public falling out with a by then Google-owned YouTube in 2008. Still, it means he saw it from both sides.

Perhaps more importantly, Cohen has an existing alliance with Google, in that the web giant was one of the backers of 300, the independent music company he set up in 2013 after departing Warner Music. Possibly finally nervous about all the bad press it was getting from big name American artists penning anti-YouTube op-eds, perhaps the web firm decided to reach out to an existing business partner for help. I just hope they give him enough concrete.

Cohen's new job is a bridge building project, of course, because for the record industry establishment in 2016, YouTube is the enemy. Like, the real enemy. Like, the total enemy. A bunch of money-grabbing motherfuckers who are single-handledly fucking up the revival of recorded music and in doing so fucking over every single person who ever wrote a lyric, composed a melody or sung a few words vaguely in tune. Cunts of the highest order, basically. And cunts who must die. Painfully. I'm just quoting official record industry dogma here, by the way. Well, maybe I'm paraphrasing it slightly. But only very slightly.

"Back in 2006, as an executive at Warner Music Group, I worked closely with a fledgling video site to sign its first big record licensing deal. That site was YouTube", Cohen wrote in the aforementioned memo to his new team. "Over the next decade, I watched as your work transformed YouTube into an incredibly powerful platform that connects artists with fans all over the world", he continued, all positive like, and with no talk of anyone being the enemy.

"Over the last two decades we have seen dramatic shifts", he continued. "Both to the inherent value of music and the literal value that people are willing to pay. Technology and new business models have completely changed the established distribution channels that have long-served the recorded music industry. And while change has been met with understandable resistance, I strongly believe that this transformation provides opportunities that will be larger and more rewarding for both artists and the music industry".

See, Team YouTube, all that "resistance" in the music community has been "understandable". Your new boss just told you so. But hey, what about all these opportunities? They sound like fun. "I'm confident that we can bridge the worlds of technology and music in ways that benefit everyone", Cohen reckons. And there it is everybody. The bridge. Looking forward to it Lyor. Can you paint it lime green?

Of course, despite the official proclamations from the record industry's trade groups, and prolific efforts by the labels and publishers to have copyright law rewritten to force YouTube into line, and that flurry of angry opinion pieces from mainly heritage acts, the Google site does already have allies in the music community, especially among DIY and younger artists.

And, of course, even at those labels officially down on YouTube, the marketers there recognise that the video site remains a key fan engagement channel. And Sony and Universal Music's own music video service still heavily relies on YouTube to reach much of its audience.

But Cohen will be set with the task of placating the music industry establishment and old guard - and hey, who knows, maybe even the songwriters - while trying to build on existing efforts and contacts in the grass roots music community. "I hope that together we can move towards a more collaborative relationship between the music industry and the technologies that are shaping the future of the business", Cohen concludes.

The foundations of Cohen's bridge, or a first attempt at fostering this more "collaborative relationship" if you prefer, might be a call to another US music industry veteran, Irving Azoff, who more than most has led the industry's charge against YouTube, and rallied artists and managers to what started out as the labels' battle. For Azoff, YouTube really is "evil".

Though in Cohen he sees a potential ally. "As a prolific manager, label executive and label owner, Lyor has a long history as a defender of artist rights", Azoff said on hearing about Cohen's appointment, according to Billboard. "We are counting on you, Lyor, to lead YouTube to provide fair payments to artists and give them more creative control. Congratulations, Lyor, I know you can get it done".

The new job will require Cohen to step down from his executive role at 300, something he'll do in about two months time, though he'll remain a significant shareholder in the company.

Promoter of Steve Aoki show where five people died jailed for four years
The promoter of a Steve Aoki-headlined show in Madrid in 2012 during which five people were killed as a result of a crowd surge has been sentenced to four years in jail.

As previously reported, a Halloween concert dubbed Thriller Music Park ended in tragedy after a stampede occurred, seemingly as panicked audience members sought to exit the venue. It was thought a pyrotechnic ultimately caused the panic, though investigators said that a stream of new audience members entering the venue through an opened exit door may also have contributed to so many concert-goers seeking to exit at the same time.

Certainly the real problem was the number of people in the 10,600 capacity Madrid Arena that hosted the event. Although promoters initially insisted they hadn't sold out the show, meaning the concert was under capacity, according to investigators over 16,500 tickets had in fact been sold. The fact that many of the exits from the main space at the arena were blocked also led to the surge of people through the main entrance that resulted in the fatalities.

According to El Mundo, Miguel Ángel Flores, as the lead promoter, was convicted of five counts of negligent homicide and 29 counts of causing harm through serious negligence, and was given the maximum sentence allowed, four years.

Seven other people involved in the event also face jail time. Though Flores reportedly plans to appeal, and to re-open his Madrid nightclub Macumba - which closed after the Thriller Music Park incident - despite a condition of his conviction being that he must stop promoting events.

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Eighteen members of US Congress back music industry's fight against 100% licensing
Eighteen members of US Congress have called of the Department Of Justice to reconsider its decision to force 100% licensing onto American collecting societies BMI and ASCAP.

As previously reported, the DoJ, which oversees the consent decrees that regulate the two performing rights organisations, conducted a thorough review of those regulations after the music publishers requested various changes be made.

But, having done the review, not only did the DoJ decide not to make any changes, it also ruled that - under the current consent decrees - BMI and ASCAP are obliged to operate a 100% licensing system.

That means that where a song is co-owned by an ASCAP member and a BMI member, a licensee can make use of that song with either an ASCAP licence or a BMI licence, whereas previously a licence would be required from both (aka 'fractional licensing'). The licensee would then pay one society any royalties that are due, and it would be for the PRO to ensure both rights owners got paid their respective share of that money.

The DoJ ruling has been widely criticised by the music industry, and as soon as the government agency's decision had been confirmed BMI announced it would fight the move in the courts while ASCAP would lobby Congress. BMI then secured a win in court way quicker than everyone anticipated, with judge Louis Stanton immediately ruling that the DoJ had incorrectly interpreted that society's consent decree.

With the DoJ still having the option to appeal that judgement, plus the status of ASCAP's consent decree still in limbo, the wider campaign against 100% licensing continues. And to that end eighteen allies of the music industry in Congress signed an open letter to Attorney General Loretta Lynch, who heads up the DoJ.

According to Billboard, in it they write: "We believe a well-functioning music marketplace benefits America's music-loving public, businesses that use music to connect with their customers and, especially, more than one million songwriters and composers whose creative work is the lifeblood of the entire American music economy".

Noting that the US Copyright Office opposes the DoJ's position on 100% licensing, the letter says "the DoJ can no longer maintain that the language of the ASCAP and BMI consent decrees clearly prohibits fractional licensing" and therefore "the DoJ should take prompt action to limit the confusion and chaos [its ruling] creates in the market".

Among the signatories of the new letter is Doug Collins, who has already been championing the songwriters' cause by co-proposing the Songwriter Equity Act in Congress, and who quickly declared the DoJ's ruling on the consent decrees "very frustrating" back in August.

Global partners with Spirit
Global Entertainment - the talent management and music publishing side of Global Radio - has signed a new administration and co-publishing deal with Spirit Music Group.

The deal will see Spirit look after Global's publishing catalogue, which contains songs by Ellie Goulding, Corinne Bailey Rae, Jungle, The Script, LMFAO, The Vaccines, The Vamps and more.

"Spirit's international reach, creative strength and administrative platforms make them an incredible music publishing partner", says Global boss Ashley Tabor.

"This deal also fits well into Spirit's aggressive growth in the UK market - on the heels of our deals with B-Unique and Polar Patrol - as well as continuing Spirit's strong growth in North America", adds Spirit Music Group chairman David Renzer.

As previously reported (and there mentioned by the Renzer), US-based Spirit expanded into the UK through an alliance with B-Unique last year.

Live Nation to allow fans backstage in VR
Live Nation has teamed up with US bank (and former short-lived EMI owner) Citi and NextVR for a series of virtual reality concerts. Under the banner 'Backstage With Citi', fans will be able to watch ten shows in VR, as well as heading backstage to see what the artists are up to before they get up in front of their audience.

'Backstage With Citi' previously ran as a series of artist interviews on Live Nation's Yahoo channel. The rejigged offering will now be streamed through the Live Nation channel on NextVR's app. So still sticking with the low view count theme, then.

"We want to push the boundaries of the very meaning of access beyond attendance and as technology evolves, it's allowing us to do so", says Citi's Jennifer Breithaupt. "We are THRILLED to be announcing this new initiative with Live Nation and NextVR that will offer 'front-row' and behind-the-scenes VR concert experiences for millions of fans".

Well, possibly not millions. But some. Still, it is quite exciting to see what can be done with virtual reality in live music. And Citi's money helps kickstart a five year deal announced in May between Live Nation and NextVR to broadcast concerts employing virtual reality technology.

"Virtual reality is starting to take off and the time is right to experiment in the music space", says Live Nation's Darin Wolf. "Together with NextVR and Citi we will be able to provide unparalleled access for fans to enjoy live music and see first-hand the emotion and adrenaline rush from artists as they prepare to perform live".

The ten artists willing to allow people in virtual reality headsets to see what they get up to backstage haven't yet been announced. I'm sure they will be though.

Spotify in talks to buy SoundCloud as it launches in Japan
Spotify is in advanced talks to buy SoundCloud, according to the Financial Times, though the deal is not yet done and could as yet fall through.

Ever since it announced its licensing deals with the record companies, its launch of a premium subscription package, and the expansion of its advertising platform beyond the US, this has felt like something of a make or break year for SoundCloud.

Perhaps it has finally found a viable long-term business model, but it arguably took too long to reach that position, making its short-term survival seem far from assured. The company did secure some new financing, but for sometime it's seemed like SoundCloud needed to be acquired by a bigger player to secure the time it needs to grow the new model.

But who, exactly, would buy SoundCloud at this point? The licensing deals with the music industry helped make the company more attractive, in that bidders were no longer buying into a potential messy legal battle with the big music rights owners, but having been most recently valued at $700 million, the SoundCloud company is arguably way over priced, given no one has actually, as yet, worked out how to make any money out of streaming music.

Indeed, it is thought that Spotify has discussed bidding for SoundCloud before, but was put off by the price tag. Though there is arguably some logic in Spotify acquiring SoundCloud, even though bunching two massively loss-making streaming services into one doesn't come without its risks.

But Spotify has always employed a free-sells-premium strategy in order to sign-up the paying subscribers who are at the core of the firm's business (and, indeed, the record industry's recent return to growth).

Unlike its big three current or potential competitors in the streaming music space – Apple, Amazon and Google/YouTube – Spotify didn't begin with a massive online audience which it could try and convert into $10 a month streaming customers.

So instead it used free music to build an audience to whom it could upsell, a strategy which has worked in the main, though which is expensive to run, and which adds tension to the company's relationships with the record companies.

Acquiring SoundCloud would give Spotify overnight access to a significant audience of free streamers; and although there would be quite a bit of crossover with its current freemium (and premium) audience, that would be attractive in a market where its biggest competitor, Apple, gets to push its music service to anyone who buys an iPhone.

There could also be another benefit. It's no secret that some record label execs want Spotify to strip back is own freemium offer. And while Spotify has in the main resisted those calls, it too could do with reducing the financial strain of its free level. Could it ultimately use the acquisition of SoundCloud as an excuse to turn off Spotify Free, hoping that labels might offer more friendly terms to a freemium SoundCloud that upsells Spotify Premium?

All that said, it seems unlike Spotify could afford to buy SoundCloud in a cash deal even if the latter's investors agreed to a price at the lower end of recent valuations, so the question is whether some equity exchange arrangement can be reached. Needless to say, neither side are currently commenting on this morning's rumours.

Though to be fair, Spotify is far too busy celebrating the fact it has finally launched in Japan, the world's second biggest recorded music market, where streaming of the Spotify-model is still very much in its early days.

Getting label deals done in a market still currently dominated by CD sales has been tricky to say the least. The service will bring "two million artists around the world to Japan and bring the Japanese artists we all love to the rest of the world", said Spotify boss Daniel Ek as his service went live in the country.

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PledgeMusic finalises Set.fm acquisition
PledgeMusic has finalised its previously reported deal to acquire Set.fm, the direct-to-fan service which enables musicians to capture and sell recordings of their live shows. As the two companies are officially joined in matrimony, Set.fm CEO Matt Peterson also becomes PledgeMusic's Austin General Manager.

"Set.fm exists to change the way that artists and fans interact, a philosophy at the very core of what makes PledgeMusic so special", says Peterson. "Combining our expertise in creating high-value live content with PledgeMusic's best-of-breed platform for directly engaging fans will create a richer experience for all involved".

Pledge also recently acquired data-gathering platform NoiseTrade, further bolstering the company's offering to artists.

Solange to release new album this week
Solange Knowles has announced that she will release her new album, 'A Seat At The Table', on 30 Sep.

Following recent hints that a record was on the way, the musician properly announced it in an Instagram post yesterday, saying that she is "overwhelmed with gratitude and excitement to share this body of work I have written". In a further statement, she described it as "a project on identity, empowerment, independence, grief and healing".

She also posted the tracklist for the record, revealing that it features an impressive array of collaborators, including: Lil Wayne, Kelly Rowland, Q-Tip, The-Dream, Dev Hynes, Kelela, Tweet, Sampha, Sean Nicholas Savage, Moses Sumney and BJ The Chicago Kid.

A 112 page book sent to a number of fans who signed up to her mailing list earlier this month is now available on her website to accompany the album. Check that out here.

Pete Doherty, Andrew WK, Madonna, more

Other notable announcements and developments today...

• Pete Doherty has released new single 'I Don't Love Anyone (But You're Not Just Anyone)'. Two versions of the song will feature on his new album, 'Hamburg Demonstrations', which is out on 2 Dec.

• Andrew WK has gone EDM, providing vocals on a fucking terrible new track by MAKJ and Timmy Trumpet. You can listen to 'Party Till We Die' here if you really want.

• Mystery Jets and PAUW have released a split EP, ahead of the latter's upcoming UK tour. Listen on Spotify here.

• Kaytranada has released the video for 'You're The One', featuring Syd. The track is taken from his '99.9%' album, which was recently awarded the Polaris Music Prize, I'm sure you remember.

• Mono have released the video for the title track from their forthcoming new album 'Requiem For Hell'.

• Grog Lisee has released a new single, 'Guiding Light'. The song was written in memory of Al Fletcher, drummer in her band Die So Fluid, who died in July.

• PWR BTTM have released the video for 'I Wanna Boi', taken from their debut album 'Ugly Cherries'.

• Empire Of The Sun have announced that they will play The Roundhouse in London on 13 Oct. New album 'Two Vines' is out on 28 Oct.

• Madonna is joining Katy Perry in getting naked to vote, which is a misunderstanding of that video. Whatever. Apparently naked voting is a thing now.

Ed Sheeran revealed as buyer of Ed Sheer-ham
"Who would spend £6000 on a statue of a pig that (almost) looks like Ed Sheeran", you may have found yourself wondering last week. The answer, it turns out, is Ed Sheeran. And it was £6200, to be exact.

As previously reported, the pig – along with 38 others – was sold at auction in aid of St Elizabeth Hospice in Ipswich last week. It had been part of an art trail in the city. Other musicians rendered in pig form were Elvis Presley and David Bowie. Neither of them came forward to buy their statues though, so I can only assume that both of them hate charity.

"We were wondering if he would want to buy it, but then he said he would sign the pig for the winner - he was very good at keeping everyone guessing", the hospice's Rachel Blackshaw told the BBC when confirming that Sheeran was indeed the buyer. "Ed has said that he is really excited about winning the pig and helping the hospice and that it will have pride of place".

But where would pride of place for a large-ish pig statue be? I think I'd probably stick it in the hall, near the front door. I might even use it to sit on while I do up my shoelaces. That would be quite handy, actually. Really wish I'd bid against him now.