In today’s CMU Daily: The independent music sector has called on competition regulators to investigate and block Universal’s Downtown Music deal, which is a “huge market share” grab according to IMPALA’s Helen Smith and part of the major’s bid for “utter dominance and control” according to Beggars boss Martin Mills

Also today: The UK government has formally proposed introducing a new copyright exception for AI companies that use existing content to train their models, but with an opt-out for copyright owners. The music industry will oppose that proposal via a consultation that the government has just opened 

Plus: The current operator of The Leadmill in Sheffield says he will gut the venue, including demolishing its toilets, if forced to leave by landlord Electric Group, which wants to run the venue itself. Electric Group’s legal bid to evict current operator Phil Mills is back in court in Leeds this week

Approved: Listen to every track we’ve featured in CMU’s ‘Approved’ slot in 2024 – and see our top tracks from this year’s selection.

Beware the “wolf under the cape” in Universal’s Downtown land grab, warns Beggars boss as IMPALA calls for regulators to block the deal

When Universal Music announced its deal to buy Downtown Music yesterday, the mega-major was keen to position the $775 million acquisition as being driven by its distribution and label services division Virgin Music Group, “one of the world’s leading partners to independent music entrepreneurs”. 

Today, Beggars Group founder Martin Mills says that this is nothing more than a “cynical use” of the Virgin brand that was “once synonymous with independent entrepreneurship”, and that Universal is set on “utter dominance and control”.

That statement comes as part of IMPALA’s call for regulators to strike down the deal, saying that it expects competition authorities in key jurisdictions to investigate and block Universal’s “land grab” and that “the time has come for cutting UMG’s market position back”. 

In a robust statement, IMPALA Executive Chair Helen Smith says “this is a huge market share grab by UMG and seriously reduces independent routes to market”, adding “we look to the new European Commission to set the standard internationally” by instigating an investigation into the deal. 

In its announcement of the acquisition, Universal said that Virgin and Downtown together would “offer the independent music community a dynamic and innovative global infrastructure”. But this, says Mills, is just “another step on the road of UMG’s pretence to be the independents’ fairy godmother”. He then warns, “there’s a wolf under that cape”.

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UK government proposes copyright exception to help make UK attractive to AI companies as part of new consultation

The UK government has formally launched its keenly anticipated consultation on copyright and AI. The consultation, which is open for responses from today through to 25 Feb, will consider a “balanced package of proposals” that will “give creators greater control over how their material is used by AI developers”.

Technically the proposed new copyright exception for AI companies that forms the backbone of the government’s proposals will actually give creators less control over how their copyright-protected works are used. However, as a trade off, creators are being promised more clarity and transparency, and possibly more protection for personality rights. 

The creative industries, AI companies and anyone else interested in the issue now have just over two months to tell the government why its proposed compromise will or won't work, so that ministers can be fully informed before ignoring everybody and ploughing ahead with their proposals anyway, or doing something else entirely. Who knows?

“This government firmly believes that our musicians, writers, artists and other creatives should have the ability to know and control how their content is used by AI firms and be able to seek licensing deals and fair payment”, insists Culture Secretary Lisa Nandy, who adds, “achieving this, and ensuring legal certainty, will help our creative and AI sectors grow and innovate together in partnership”.

Leadmill venue operator threatens to demolish toilets and gut venue if evicted, claiming Electric Group can’t afford refurbishment costs

The dispute over who should get to run Sheffield’s Leadmill venue - the current management team or the building's landlord Electric Group - is back in court this week, with the costs involved in Electric Group taking it over very much in the spotlight. 

Demonstrating how far he is willing to go in order to stay, current venue operator Phil Mills says that he plans to gut the premises if he is forced to leave. As part of that plan, he has filed for planning permission from the council to demolish the venue’s toilet block in order to “return the building to pre-leasing condition”, according to the Sheffield Star. 

Mills and his team have been clear from the start that, if they are forced to leave the building, they plan to leave it as they found it, with all the fittings they have added over the years removed. 

If that plan goes ahead, the costs for Electric Group to get the building up and running again as a venue would be substantial and immediate. So much so, lawyers working for Mills have suggested that Electric Group would not have the necessary funds to get the venue operational. 

That’s not true, says Electric Group, and the numbers Mills is proposing are based on “absurdly overcooked” estimates of the possible refurbishment costs.

According to the BBC, Electric Group boss Dominic Madden told the court this week that the numbers cited by Mills’ team “seem illogical”. They reckoned the costs could top £4.7 million, but Madden’s own estimates come in more like £2 million. “I still think that’s right”. Madden added, “even with the future work required if Mr Mills decides to take things out”.

🎧 Approved in 2024

Each Tuesday and Thursday, CMU's Approved introduces a new artist we’re excited about. They may already have a strong catalogue of music behind them or might be releasing their first single, but we think each one is deserving of wider attention.

Spanning a wide range of genres, from mainstream to deeply experimental, there’s a vast amount of music to delve into by the end of the year – and what better time than now to revisit it all?

We’ve collected music from all of the artists that we featured in 2024’s Approved into a playlist that you can listen to on Spotify or you can explore the original articles.

It’s the perfect escape from Christmas music, an ideal soundtrack to last minute shopping, and a ready-made way to make visiting friends and family think that you know far more about music than they do.