| We've covered the music business each day since 21 Jun 2002 Today's email is edition #5321 |
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| | In today's CMU Daily: John Mitchell, a key investor in Proper Group AG, has issued a statement to CMU distancing himself from the bankrupt companyâs former âgeneral advisorâ Peter Löhr. CMU has now discovered that a former director of Mitchellâs Australian firm Mitchell Asset Management was also accused of embezzlement
Also today: TikTokâs decision to circumvent independent music licensing organisation Merlin will harm diversity and puts independent music in an impossible place says WIN; the US government is putting together its annual notorious markets report, which lists piracy sites of concern, and the record industry has made its submission; Sony Music CEO Rob Stringer was at a Bloomberg conference last week, talking about getting more money out of TikTok and streaming subscribers, as well as other opportunities for Sony and its artists
Plus: Each week CMU rounds up standout releases and tour announcements from the last seven days. This week: Charli XCX, Pa Salieu, Madlib, Ab-Soul, Major Lazer, Vybz Cartel, Strandz, The Cure + more
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| | Proper Group AG scandal grows as investor John Mitchell distances himself from Löhr and CMU uncovers another case of embezzlement | | On Thursday, CMU reported that Peter Löhr, a âgeneral advisorâ to Proper Group AG - which is currently battling bankruptcy in the Swiss courts - had previously been convicted of embezzlement in Sweden.
Löhr, a general enforcer and svengali to a succession of C-level appointees at the former Utopia Music, now rebranded Proper Group, had previously been convicted of embezzling money from bankrupt companies in Sweden. On Saturday, Mitchell Asset Management founder and Proper Group AG investor John Mitchell emailed CMU asking us to make it clear that âPeter Löhr does not advise John Mitchellâ.
In a startling email, Mitchell acknowledges that Löhrâs history was well known to the founders of Utopia Music - which was rebranded as Proper Group AG earlier this year - adding that Löhr was hired by Utopia founder Mattias Hjelmstedt, and had âadvised of his history prior to engagement by the companyâ.Â
In the same email, Mitchell characterised CMUâs reporting of Löhrâs history as being âinaccurate and libellousâ. However, not only is Mitchell unable to point out any specific inaccuracies or libels - he does not dispute that Löhr was convicted as reported - but he also notes âprior to his employment at Utopia, and hired by Mattias Hjelmstedt, Peter Löhr advised of his history which occurred over 20+ years ago where he had fulfilled all obligations made of himâ.
In a series of phone calls on Friday, prior to Mitchellâs email, representatives of Proper Group AG asked CMU several times to make adjustments to our article, saying repeatedly that there was no direct connection between Peter Löhr and Mitchell Asset Management - something that we had not, at any point, alleged, beyond the fact that they are both closely associated with Proper Group AG.
We are, of course, happy to make it clear that Peter Löhr does not work for Mitchell Asset Management. That said, the association is undeniably embarrassing for Mitchell - which probably explains his aggressive attempts to push back against the article.
What is possibly even more embarrassing is that this is the second time that John Mitchell has been associated with someone accused of embezzling funds... | Read the full story | |
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WIN says TikTok's decision to circumvent Merlin "puts independent labels in an impossible place" and "poses risk to cultural diversity" | | As opposition grows around the world from independent music organisations furious about TikTokâs decision to cut long-established digital music licensing intermediary Merlin out of licensing negotiations between the social media platform and indie labels and distributors, WIN - the Worldwide Independent Network - which represents the global voice of independent music, has issued a statement condemning TikTokâs actions.Â
In its statement, WIN says âTikTok is crucial to the music industry, and music is crucial to TikTokâ, highlighting a report by Australian trade publication The Music Network on an experiment conducted by TikTok in Australia, where the platform limited access to licensed music to some users.Â
That experiment, said TMN, yielded a result - but possibly not what TikTok had hoped for. âTikTokâs users bailed when its âtestâ startedâ, TMN reported at the time, adding that the test appeared to be âa fact-finding mission to place a value on musicâ.
With music such an important part of the TikTok user experience - something that TikTokâs Global Head Of Music Ole Obermann has previously confirmed, saying âMusic is at the heart of the TikTok experienceâ - the decision by TikTok to cut Merlin from its negotiations âputs independent labels in an impossible place with their artistsâ, says Zena White, WINâs chair.Â
âItâs a choice between their music being available on the platform or ensuring fair licence termsâ, she adds. As the Bytedance-owed platform continues to reach out to independent music companies with what is believed, in most cases, to be a boilerplate âno negotiationâ take-it-or-leave-it deal, WINâs CEOÂ NoemĂ Planas notes that âMerlin was created by independent music companies to compete at the highest level and ensure they can access the best termsâ...
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| | âBulletproofâ ISPs in the spotlight as RIAA submits annual piracy gripes to US governmentâs ânotorious marketsâ report
| | The record industry has filed its annual submission with suggested inclusions for the US governmentâs ânotorious marketsâ report, which provides an opportunity for the record companies to set out their top piracy gripes of the moment.Â
The submission names various websites and online platforms which, it says, âharm US artists, songwriters, record labels and music publishing companies by disseminating music without authorisationâ and âartificially distorting the market value of the musicâ.Â
Interestingly, unlike in last yearâs submission, unlicensed generative AI platforms - despite being the subject of much debate and some lawsuits - arenât included in the piracy gripe list, which is compiled by the Recording Industry Association Of America. The focus this time is on conventional piracy platforms like stream-ripping sites, BitTorrent indexing sites, unlicensed download and streaming platforms, and cyberlockers used for storing and accessing unlicensed music files.Â
One of those cyber lockers, Krakenfiles, acts as âa source of data comprising unauthorised music which is ingested to develop AI artist vocal modelsâ, the submission claims. It also âhosts outputs comprising vocal clones which infringe the rights of member companies and/or their artistsâ. However, the labels also criticise Krakenfiles for facilitating the storage and sharing of unlicensed music more generally. The notorious markets report is produced by the US Trade Representative and its purpose is to identify piracy enablers outside the US, in order to inform the American governmentâs trade talks. The three generative AI platforms currently being sued by the American music industry for copyright infringement. - Udio, Suno and Anthropic - are all US-based. But concerns have also been raised about AI platforms that are based elsewhere in the world...
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| | Spotify should have put up prices long ago; TikTok not a promo platform; AI will be a great tool for making music; Sony will take âmore organicâ approach to working with artists beyond releases, says Rob Stringer | | TikTok should be paying more for music, as should Spotifyâs subscribers. The industry needs to keep the pressure on to make sure that happens, while also capitalising on the multitude of new opportunities for artists and their music, including in AI. Although with AI, thereâs still a lot to be worked out.Â
These were the conclusions of Sony Music chief Rob Stringer during an interview at Bloombergâs Screentime conference last week.Â
Asked outright if TikTok should be paying more for the music that features in videos on its platform, Stringer conceded that the industry possibly slipped up by allowing TikTok to get itself into a position where it could play the âpromo valueâ card to force down what it pays into the music business.Â
âDid we allow them to become what they think they are, which is a promotional platform?â he mused, adding, âwe possibly didâ. But, he insisted, âthey are not a promotional platform, they are a hugely profitable corporation. We allowed them to be MTV and we shouldn't have done thatâ.Â
âSo now weâre backpedaling from thereâ, he said of the industryâs most recent efforts to maximise the value of its TikTok deals. Though itâs not just TikTok which is underpaying, he added, alluding to other digital service providers that should be paying more.Â
âThe truth is, we should get paid more by several of our DSP partnersâ, he added. âAnd that's part of my job, to make sure that weâre paid and in turn the artists are paidâ...
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| | Releases & Tours: Week 41 |
Each week CMU rounds up standout releases and tour announcements from the last seven days. This week: Charli XCX, Pa Salieu, Madlib, Ab-Soul, Major Lazer, Vybz Cartel, Strandz, The Cure + more, while tour announcements include Rizzle Kicks, Coco & Clair Clair + more.
Releases Tours - Rizzle Kicks announced four UK headline shows for 2025, including a show at Brighton Dome for The Great Escape on 16 May.
- Brooke Combe announced a 2025 UK headline tour, including a show at Lafayette in London on 10 Apr.
- Busted and McFly announced the âThe Busted vs McFlyâ arena tour for 2025, kicking off in Birmingham at the BP Pulse Live arena.
- Stereophonics announced a 2025 UK headline tour, including a show at Finsbury Park on 4 Jul.
- Coco & Clair Clair announced their headline UK+EU tour, kicking off in March 2025.
- The Wombats announced a headline UK tour for March 2025 with special guests Everything Everything and Red Rum Club. They also released their new single âSorry Iâm Late, I Didnât Want To Comeâ.
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