In today's CMU Daily: SXSW has said that the US Army and weapons manufacturers will not be allowed to sponsor the 2025 edition of its Austin, Texas event “after careful consideration” So that’s nice. Now, what about the connections to Saudi Arabia?

One Liners: Ruel, Tokischa deals; Wasserman Music, Spirit Music Group, MSG Entertainment appointments; EXO dispute escalates; BSI Merch launches in Japan; beatBread launches Funding Network; new releases from Olivia Dean, Patrick Higgins

Also today: YouTube in talks with majors on next step with AI; US radio royalties discussed in Congress; AI:OK aims to set standards for music AI

Plus: Leyya are CMU Approved

SXSW ditches weapons sponsors to burnish brand - so why won’t it ditch its ties to Saudi Arabia?

SXSW Austin has announced that it is ditching the US Army as a sponsor and won’t be taking sponsorship cash from weapons manufacturers. Or, at least, it won’t be doing that in 2025. So, that’s generally good news. 

What’s not such good news is that - as recently highlighted by CMU - the SXSW brand has deep connections to equally unsavoury money elsewhere. 

In 2018, $200 million dollars was pumped into its majority owner, Penske Media Corporation, by SRMG. That’s the ‘Saudi soft power’ organisation that is widely identified as part of Saudi Arabia’s ‘culture washing’ agenda, designed to improve the kingdom’s reputation in the West, and distract from its wide ranging abuses of human rights, including a proxy war in Yemen, which has resulted in the deaths of nearly 400,000 innocent civilians.

In a newly published FAQ on the SXSW website, the company says, “After careful consideration, we are revising our sponsorship model. As a result, the US Army, and companies who engage in weapons manufacturing, will not be sponsors of SXSW 2025”.

This year’s SXSW saw significant backlash from artists and speakers after the festival and conference jumped into bed with ‘super-sponsor’ the US Army, as well as having  relationships with a number of weapons companies, including BAE Systems and Collins Aerospace, a subsidiary of weapons conglomerate RTX Corporation.

More than 100 artists pulled out of music showcases at the event, citing the presence of the US Army and weapons companies as unacceptable, and in particular the relationships the weapons companies had with Israel, in light of the humanitarian crisis in Gaza, precipitated by Israel’s war with Hamas. 

Amongst the artists joining the boycott were Northern Irish rappers Kneecap who said that they were cancelling their planned appearance at SXSW “to highlight the unacceptable deep links the festival has to weapons companies and the US military who at this very moment are enabling a genocide and famine against a trapped population”.

They went on to say, “We cannot in good conscience attend an arts festival that has ‘The US Army’ as a ‘super-sponsor’ and is platforming RTX (formerly Raytheon), Collins Aerospace, and BAE Systems, the very companies selling the weapons that have murdered 31,000 Palestinians, over 21,000 of them women and children”.

At the time, SXSW justified buddying up with weapons companies by arguing that “the defence industry has historically been a proving ground for many of the systems we rely on today” and that they are “often leaders in emerging technologies”, 

Saying that it was SXSW’s belief that “it’s better to understand how their approach will impact our lives”, it said that taking the Army’s money was “part of our commitment to bring forward ideas that shape our world”. Meanwhile, Collins Aerospace’s sponsorship of two SXSW Pitch categories gave “entrepreneurs visibility and funding for potentially game-changing work”.

Those opportunities for “game-changing work” are highlighted by the websites of BAE Systems and Collins Aerospace.

BAE Systems boasts of a “wide range of munitions, explosives, gun systems and artillery systems” on its website, including its 81mm mortar ammunition - which BAE cheerfully describes as “highly accurate, giving enhanced fragmentation” - and its APKWS laser guidance kit which it describes as “delivering critical lethality when it matters most”.  

Collins’ “core capabilities” include “Connected Battlespace” products that enable “seamless data sharing and autonomous, intelligent connectivity that reduces decision-making timelines to machine speeds”, which sounds like a tech bro way of saying “our technology helps you kill more people faster, without having to think about it too much”.

As highlighted by Kneecap’s statement when they pulled out of SXSW, a key part of artists’ outrage with SXSW’s sponsors was that they were enabling a humanitarian crisis in Gaza, as Israel uses weapons manufactured by these companies in its current war with Hamas - in which tens of thousands of innocent civilians have been killed.

Addressing the artist boycott, SXSW said at the time, “We fully respect the decision these artists made to exercise their right to free speech. Across the globe, we are witnessing unspeakable tragedies, the rise of repressive regimes, and the increasing spread of violent conflict”.

The rise of repressive regimes is definitely problematic, and is an issue that is painfully close to home for SXSW. One of the most effective artists of repression and promulgators of violent conflict is the Saudi Arabian regime, which comes close to the bottom of the various indices that track human rights and freedom around the world.

Drumsheds, Broadwick Live // Senior Operations Manager (London)

Drumsheds, Broadwick Live // Duty Operations Manager (London)

Drumsheds, Broadwick Live // Operations Coordinator (London)

terrible* // Finance Assistant/Bookkeeper (London)

SJM Concerts // Event Ticketing Manager (Manchester)

Sentric Music // Revenue Optimisation Manager (London/Liverpool)

Sentric Music // Copyright Manager (Liverpool/London)

Horizon is CMU's new weekly newsletter - published each Friday - that brings you a hand-picked selection of early-stage career opportunities from across the music industry.

Whether you're looking for your first job in music or you're ready to take a step up, Horizon is here to help you find your dream job faster.

👉 Click through to see the current selection.

ONE LINERS

EXO, Wasserman Music, beatBread + more

DEALS 

The Azoff Company’s Giant Music has signed Australian singer-songwriter Ruel to a record deal. “Ruel is truly a singular talent and we are THRILLED to be part of his next chapter”, says Giant Music President Nate Albert.

Dominican rapper Tokischa has signed a global publishing deal with Warner Chappell. “We take a lot of pride in who we pair with and sign”, says the publisher’s President for US Latin & Latin America, Gustavo Menéndez. “We’re always looking to work with those who are relevant and possess true artistry. Tokischa is the perfect example of that: her music speaks to her completely original creative side and integrity, and the best is yet to come”.

APPOINTMENTS 

Booking agency Wasserman Music has announced three new hires in the UK and US. Based in London, Adam Clements is Manager, Tour Marketing; Oskar Muller is Director, Pricing & Ticketing in Chicago; and Jenn Rilloraza is Manager, Brand Partnerships in LA. “We’re THRILLED to welcome Adam, Oskar and Jenn to our global team to build on our robust suite of services and add innovative new capabilities to help our clients meet and exceed their goals”, says President Lee Anderson.

Spirit Music Group has hired Lou Al-Chamaa as EVP A&R. “I am deeply committed to fostering an environment where artists, songwriters and producers can thrive creatively”, he says. “I look forward to harnessing the collective creativity and passion within Spirit Music Group to nurture and elevate the next generation of music talent”.

James Dolan has extended his contract as Chair and CEO of US venue operator and live entertainment company MSG Entertainment for another three years. 

LEGAL 

The bitter dispute between three members of EXO and K-pop company SM Entertainment shows no signs of relenting. Chen, Baekhyun and Xiumin (aka EXO-CBX) have now filed a criminal complaint against the company accusing it of fraud. This relates to their previous claim that SM has reneged on an offer of a discounted rate to distribute their solo music through SM parent company Kakao Entertainment, allegedly agreed as part of a deal that let the three musicians set up their own agency to manage their solo projects. 

MERCHANDISE

BSI Merch has opened a new office in Tokyo, to be headed up by Charlie Simmonds. “Opening a dedicated office in Tokyo marks an ambitious expansion into the Asia-Pacific region”, says CEO Andy Allen. “By focusing on e-commerce and localising our services, we aim to deliver world-class support and grow our presence in this key market. Charlie Simmonds’ expertise will complement BSI’s international experience, providing a full range of exceptional services to our new and existing clients”.

FUNDING 

Music funding platform beatBread has launched the beatBread Funding Network, allowing artists and labels to compare offers from a range of prospective distribution, publishing or marketing partners. “Bringing distributors and other funding sources onto our platform builds on the growing power of artists of all sizes to maintain independence, build a career on their own terms, and choose from an increasing variety of distribution and promotion options”, says CEO Peter Sinclair. “The only way to ensure that indie artists and labels get the best possible terms is to offer them choice, leverage, and the analytical tools to make smart decisions”.

RELEASES

Olivia Dean has released new single ‘Time’. 

Patrick Higgins has released new single ‘Catalyst’, a collaboration with percussionist Bobby Previte. Higgins’ new album ‘Versus’ is out on 12 Jul.

YouTube in talks with all three majors about the next phase in its AI experimentation

YouTube is in talks with all three major record companies about the next phase of its work developing music-making generative AI, building on the Dream Track experiment that involved ten artists and a small group of YouTube creators. Lump sum payments are being offered to entice big name artists to participate, according to sources who have spoken to the FT. 

The plan is to involve dozens of artists next time round, with YouTube saying “we’re not looking to expand Dream Track but are in conversations with labels about other experiments”. 

One label executive told the FT that they are “wrestling” with how to capitalise on this opportunity, with many artists reportedly resistant to work with YouTube on an AI that can generate vocals in their style and voice. “Technically the companies have the copyrights”, the source added, “but we have to think through how to play it”. 

Universal Music previously commended YouTube for seeking to collaborate with the music industry on the development of AI tools, in contrast to those technology companies which claim they can train generative AI models with existing music without getting permission from record labels and music publishers. In August last year, the major endorsed the launch of a YouTube Music AI Incubator and the video platform’s ‘three fundamental AI music principles’.

Then in November it was confirmed that both Universal Music and Warner Music were involved in the Dream Track pilot, developing an AI tool that would allow YouTube creators to generate vocals for their videos in the style of artists like Charlie Puth, John Legend, Sia, T-Pain, Demi Lovato, Troye Sivan, Charli XCX, Alec Benjamin and Papoose.

Even when digital platforms voluntarily opt to work with the music industry on developing generative AI tools, there are challenges to navigate. First, the labels themselves have to believe that the commercial opportunity is sufficient to justify the risk of helping develop AI that can then compete with their catalogues and artists. Then the labels need to figure out what they can do unilaterally and what requires the active involvement of other stakeholders. 

For starters, if an AI company begins ingesting recordings provided by the labels, they are also exploiting the separate song copyrights contained in those recordings. Even where the artist who recorded the track also wrote the song, there’s a high chance that their publishing is controlled by a different company which will also need to provide a licence. 

While you are working with dozens of artists, the publishing could be licensed on a song by song basis, like with sync licensing. Though once you are working with hundreds and especially thousands of artists, that approach won’t work and the AI company will need to start negotiating blanket licences with the music publishers and collecting societies. 

On the recordings side, there is the debate over the extent to which artist involvement is required when a label owns the copyright in any one sound recording. 

Some artist groups have called on the majors to commit to always get artist consent before allowing their recordings to be used in AI training, but that commitment is yet to be made. This suggests that the labels believe they can license their catalogues to AI companies without artist consent providing they share any income with the artists whose recordings are used. 

That said, even if that is the position being taken by the major labels, with projects like Dream Track they need to be more cautious. By imitating an artist’s voice, rights beyond copyright are likely being exploited when developing this kind of AI, including personality and possibly personal data rights. That probably means artist consent will be required. Plus, YouTube is presumably hoping to work with superstar artists, and neither YouTube nor the majors would want a big backlash from those stars as they roll out the new AI tool to creators. 

The majors will therefore presumably be looking to directly involve artists in the next phase of YouTube’s AI experimentation. They will need to convince those artists of the commercial value of the project, and ensure they get a decent upfront payment. All three majors are in talks with YouTube about the next phase, which means Sony Music artists could be involved too. Quite how it will work - and how many artists get on board - remains to be seen.

Approved: Leyya

With their third album ‘Half Asleep’ set for release later this summer, Leyya return with new single ‘Pumped Up High’. The quietly euphoric sounding track finds them keen to be fully immersed in a party, so long as they don’t have to talk to anyone. 

The song, say the duo, is about being “in the middle of a crowd, a club, a gathering - to be in it, but not part of it”. The aim is to evoke “the feeling of being included but without the urge to exchange conversations with other people”.

“You could say 'Pumped Up High' is about the joy of not being perceived in an environment where you're welcome”, they add.

‘Half Asleep’ is set for release on 30 Aug. 

🎧 Watch the video for ‘Pumped Up High’ here

US radio royalties back in the spotlight in Congress

The campaign to get AM/FM radio stations in the US to pay royalties to artists and record labels was back in the spotlight in Washington yesterday at a hearing of the House Judiciary Committee’s intellectual property panel. US copyright law is unusual in that it obliges radio stations to pay royalties to songwriters and music publishers, as you would expect, but not artists and labels. The record industry wants that changed. 

The radio sector’s usual arguments against a new royalty being introduced were expressed during yesterday’s hearing: airplay is free promo and that should be payment enough, and smaller local stations wouldn’t be able to afford any new royalty obligation. 

The record industry then gave the customary explanations as to why those are rubbish arguments. Then the National Association Of Broadcasters threw a couple of other arguments into the mix, which weren't great, but were, at least, different. 

SoundExchange CEO Michale Huppe, speaking for the record industry, responded to the free promo argument by pointing out that “72% of music played on the radio is not current and therefore not promoting new music at all”. 

Even where there is promo benefit to airplay, he went on, that “does not justify a wholesale, un-permissioned taking of another’s property”. After all, he pointed out, when a movie studio turns a book into a film, that provides promotion for the book, but the studio still gets a licence from the book’s author and publisher. 

Randy Travis and his wife Mary Travis also attended the hearing. She spoke on behalf of her husband who, after a stroke in 2013, has Aphasia which makes it difficult for him to speak. Mary acknowledged how, in the 1980s, Randy trekked “thousands of miles across the country to visit radio stations and deliver copies of his newest cuts on cassette in hopes of having his music heard”. 

However, she said, the world has changed. “The ‘do or die’ promotional aspect provided by radio to artists, long argued as the reason to keep the status quo, no longer holds water”, Mary argued. Airplay is no longer required to sell records and CDs because, in the streaming age, “folks can hear all the music they want, on demand, for pennies a day”.

As for the argument that smaller local radio stations can't afford to pay a new royalty, supporters of the American Music Fairness Act, the latest legislative proposal that would introduce that royalty, say the act means that smaller stations would pay a nominal fixed amount. 

Huppe also told Congress members that groups representing “a broad coalition of community stations” all support the act and “believe performing artists deserve to be paid for their work”. These include the Alliance For Community Media, Common Frequency, Media Alliance and the National Federation Of Community Broadcasters.

However, Curtis LeGeyt, boss of the National Association Of Broadcasters, was adamant that, even with the provisions for small radio stations in the American Music Fairness Act, the proposed new royalty would “jeopardise jobs, require radio stations to cut back their involvement in local communities and place more pressure on radio stations already struggling to survive”. 

The American record industry has been trying to get a radio royalty into copyright law for decades. That fact was somewhat used against the music community elsewhere in LeGeyt’s speech once he started making other arguments against the royalty. 

Congress should focus on reforming copyright law in the context of new technologies not old technologies, he said. Plus, this debate has dragged on for so long that we are now in a position where record industry revenues are growing and the radio industry is struggling. 

“Congress has consistently focused its major copyright reforms on updates to law that are needed to account for new or emerging technologies - not mediums that have existed for more than 100 years”, LeGeyt proclaimed, noting a century’s worth of reforms prompted by things like player piano rolls, copy machines, VHS recordings, streaming services or search engines. 

“It would be unprecedented for Congress to upend copyright laws that have governed decades-long relationships, on which entire industries have been built to the mutual benefit of

stakeholders as well as the public, and where the fundamental nature of each remains intact”, he continued. 

The record industry is generating record revenues, he went on, while “radio’s advertising-supported model continues to be stifled by big tech’s market dominance. While broadcast radio has certainly recovered from the depths of the pandemic, our advertising revenue remains down nearly 15% in 2023, compared to 2019, and this trend is not projected to reverse”.

What is OK in the world of music AI? New organisation to develop industry standards

A new organisation called AI:OK has officially launched aiming to develop global industry standards and a kitemark scheme to allow people to “easily identify music that is ethically produced in the era of AI”. Based out of Dublin City University with support from the Irish government, AI:OK will form an advisory council of music industry professionals to discuss and determine “what is OK” when it comes to the development and use of AI in music. 

“We’re dedicated to making sure AI is used ethically, and that creators and consumers share the same confidence in the music we all listen to and create together”, says Martin Clancy, founder of the new scheme. “With AI continuing to evolve at a staggering rate, we felt it necessary to bring the music industry this much needed step forward”. 

There is a general consensus within the music community regarding the legal and ethical obligations of technology companies making use of existing music when developing generative AI models. That being that permission must be sought from the music industry. 

Many AI companies disagree on that point, although some are looking to collaborate with the industry as they develop their technologies. The aim of programmes like AI:OK is to recognise and champion that approach. The ambition is that musicians, creators and music fans will be influenced by an AI:OK kitemark when choosing AI tools and music generated by AI.

There is, however, disagreement within the music community over the extent to which record labels and music publishers can license recordings and songs they own to AI companies without the specific consent of artists and songwriters. 

As a result, there is disagreement within the industry about what is “OK” - meaning that AI platforms deemed “OK” by labels and publishers may not have the approval of artists and songwriters. It remains to be seen if AI:OK’s advisory council can find some kind of consensus so that any AI platforms the scheme endorses are definitely “OK” with the entire music community. 

There are parallels between AI:OK and both DDEX - the standards organisation for digital music metadata - and Fairly Trained - the initiative founded by Ed Newton-Rex to certify generative AI companies with “training data practices that respect creators’ rights”. AI:OK says it is already liaising with both DDEX and Fairy Trained. 

Confirming that, Newton-Rex says, “I am delighted to see AI:OK working to address the huge challenge that is AI in the music ecosystem. Where Fairly Trained has a narrow focus on training data in a broad set of creative industries, AI:OK has a wider focus on responsible AI issues, specifically in the music industry. It will take a village to resolve the issues in generative AI, and Fairly Trained looks forward to working closely with AI:OK to build that village”.  

AI:OK adds that it has also “received initial letters of support from organisations including A2IM, Music Sweden and Ableton”, and has had “positive and constructive discussions with UK Music and its community of members including the Music Producers Guild, AIM and PPL”.