In today's CMU Daily: Streaming services in Canada will have to start paying 5% of their revenues over to organisations that support Canadian music and radio stations. Which is “good news for the Canadian music sector”, according to the music industry. Or a concerning “protectionist subsidy for radio”, if you ask the digital platforms

One Liners: Jessica Vaughn, Maddie Kerr deals; PRS additional royalties; Volvic emerging artists competition; Diddy exits Revolt; SM Entertainment denies NCT rumours; Nia Archives tour dates; new releases from Halsey, Blur, Kaytranada; Jamie xx, To Love x SG Lewis, Confidence Man, Ela Minus, Deadletter, Eivør

Also today: French collecting society SACEM reports record collections in 2023; Songwriters question The MLC’s success at matching works, reducing the black box and being transparent

Canada's new streaming levy is a “protectionist subsidy for radio”

The Canadian music industry has welcomed the announcement that streaming services - both audio and video platforms - will be mandated to allocate 5% of their revenues in the country to organisations that support the creation of Canadian music and other content. 

However, the streaming services have dubbed the move a “protectionist subsidy for radio” that will likely result in subscription price increases adding to the “affordability crisis” already hitting Canadian consumers.

So far that criticism has come from the trade body for music streaming services in North America, the Digital Media Association. Though previously Spotify in particular has been highly disparaging of any moves by governments around the world to introduce new costs for streaming platforms. That includes the introduction of direct remuneration rights for performers or, as in Canada, levies to benefit organisations that support music development. 

When Uruguay introduced a new performer remuneration right, Spotify announced it was pulling out of the country until it was confirmed that it would be the responsibility of record labels to make the payments. It then threatened to “disinvest” from France when a new 1.2% streaming levy was introduced there to provide new funds for the Centre National De La Musique. 

The argument put forward by Spotify is that streaming services already pay the lion’s share - 65-70% - of their revenues to the music industry and therefore can't accommodate any other costs. Ultimately in France - after its tantrum - Spotify passed the 1.2% onto its customers, announcing last week that subscriptions will increase by thirteen cents a month. A similar move in Canada would be more significant given the levy there is 5%. 

The legal framework for the Canadian levy comes from the country’s Online Streaming Act, which left it to the Canadian Radio-Television And Telecommunications Commission to sort out the specifics of how the levy would actually be implemented. 

According to the CRTC, the 5% paid over by music streaming services breaks down as follows: 2.5% will go to the music industry supporting FACTOR, Musicaction, Starmaker Fund and Fonds RadioStar; 1.5% will go to a new fund supporting local news production by commercial radio stations; 0.5% to the Community Radio Fund Of Canada; and 5% to funds supporting Indigenous music and audio content. 

FACTOR, which runs various schemes to support the Canadian music industry, is currently funded partly by government and partly by levies paid by commercial broadcasters. With streaming services arguably competing with radio, especially among younger consumers, some in the music community have been calling for the digital platforms to provide funding for FACTOR moving forward.

Andrew Cash, CEO of the Canadian Independent Music Association, said that the CRTC’s decision regarding the levy was “good news for the Canadian music sector. As we look towards the future of music in Canada, this decision lays the groundwork for a dynamic partnership with digital platforms where Canadian talent can thrive both domestically and internationally”. 

But Graham Davies, CEO of the Digital Media Association, said his members were “deeply concerned with today’s decision to impose a discriminatory tax on music streaming services that are already making significant contributions to Canadian artists and culture”.

Noting that a chunk of the levy will go into the radio sector, he continued, “Streaming is the main source of revenue and engine of growth for music in Canada, benefiting the industry, creators, fans and consumers. And this is effectively a protectionist subsidy for radio”.

Hinting that the move will likely result in higher subscription fees for users in the country, he added, “As Canada’s affordability crisis remains a significant challenge, the government needs to avoid adding to this burden. This is especially true for younger Canadians who are the predominant users of audio streaming services”.

He then concluded, “We will be carefully reviewing today’s decision with our members in order to plan next steps accordingly”.

PPL // Events Manager (London Hybrid)

BSI Merch // Digital Content & Campaign Manager (London)

terrible* // Finance Assistant/Bookkeeper (London)

Secretly Distribution // UK Account Relations Director (London)

Republic of Music // Label Manager (Brighton Hybrid)

All Flowers Group // Project Manager (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

Halsey, Diddy, PRS For Music + more

DEALS 

Peermusic has signed Jessica Vaughn to a worldwide publishing deal. “I have been in the music industry for over twenty years now, and I’ve never been more excited and confident that I have picked the right team”, she says. “While Peermusic is the largest global independent publisher in the world, their ability to be present with their creatives is their super power”.

Concord Music Publishing has signed Mercury vocalist Maddie Kerr to a worldwide publishing deal, covering her full catalogue and future works. “Working with the Concord team has been an incredible honour and one of my most treasured experiences”, she says. “They are all so excited about music and passionate about their people. I feel so seen and accounted for and am so excited to continue my work with them”.

PRS For Music has announced that its members will receive an extra £6 million in royalties after the UK song rights collecting society managed to reduce its administration rate on multi-territory online royalty collections from 10% to 8%. “I am delighted to announce that the reduction in multi-territory online licensing admin fees is a real tangible example of how we are constantly working on behalf of members to be competitive, and to get more money to them, more quickly”, says CEO Andrea Czapary Martin. 

Anne-Marie is fronting a Volvic campaign to find emerging artists to play The Birdcage Stage at this year’s BST Hyde Park festival in London. You have until 14 Jun to submit entries, with nine winners to be announced on 24 Jun. “Making it as an artist is hard, so I understand the impact this support can have on you when you’re starting out”, says Anne-Marie. “I love hearing new voices and talent so I couldn’t be more excited to begin the search with Volvic supporting the next generation of a music community that has made me so happy and given me so much”.

ARTIST NEWS

Diddy is now “completely separated and dissociated from” from the Revolt media company he founded, CEO Detavio Samuels has told The New York Times. The rapper stepped down as Chair last November after a number of sexual assault lawsuits were filed against him. He has now sold his entire stake in the business, with the company announcing that its employees are to become its largest shareholder group.

K-pop company SM Entertainment has denied claims that two members of one of its groups, NCT, used drugs and paid for sex while in Japan. The rumours, having originated in Japan, emerged on South Korean message boards yesterday and caused the company’s share price to fall by more than 8%. The agency said that the “sensational rumours” are “entirely false and constitute criminal acts that severely damage the artists' reputations”. It added that it plans to take legal action against the people who posted the claims. 

LIVE

Nia Archives has announced UK and Ireland tour dates in October and November, including two nights at Brixton Academy in London on 6 and 8 Nov. 

RELEASES

Halsey has released new single ‘The End’. The track is taken from a new album inspired by their private battle with lupus. 

Blur will release live album ‘Live At Wembley Stadium’ on 26 Jul. It features songs from the band’s two shows at the venue last summer. A concert film will follow on 6 Sep. You can watch a teaser trailer here if you really want.

Kaytranada has released new single ‘Drip Sweat’ featuring Channel Tres. His new album ‘Timeless’ is out on Friday. 

Jamie xx has announced that he will release his second solo album ‘In Waves’ on 20 Sep. Out now is new single ‘Treat Each Other Right’. 

Tove Lo and SG Lewis have announced that they will release a collaborative EP called ‘Heat’ on 14 Jun. The pair also appear on Nelly Furtado’s new single ‘Love Bites’. 

Confidence Man will release their third studio album ‘3AM (La La La)’ on 18 Oct. Out now is new single ‘I Can’t Lose You’. 

Ela Minus is back with new track ‘Combat’, her first solo release since her brilliant debut album ‘Acts Of Rebellion’ in 2020. 

Deadletter have shared new single ‘Mother’. Their debut album ‘Hysterical Strength’ is set for release on 13 Sep. They’ve also announced UK tour dates in November. 

Eivør has released new single ‘Upp Úr Øskuni’. Her new album ‘Enn’ is out on 14 Jun.

SACEM reports total collections of €1.48 billion for 2023

French collecting society SACEM is the latest rights organisation to publish its figures for 2023, bragging total collections of €1.48 billion, up 5% on 2022. It distributed €1.23 billion to its songwriter and publisher members. 

Like PRS in the UK, SACEM now talks up the lowering of its admin costs as much as its record breaking collections, which seems like something collecting societies should be focused on. “SACEM has made controlling its costs a priority, managing to reduce its net operating costs-to-collections ratio for the second year running”, its statement earlier today declares. 

That’s the percentage of collections spent on running the society, which was 10.76% in 2023 compared with 11.65% in 2022. Of course, with certain economies of scale, as total collections go up you would naturally expect running costs, as a percentage of collections, to go down. But well done everybody for trying to get as much cash as possible to songwriters and publishers. 

As with PRS, which published its 2023 figures last week, broadcast royalties were down at SACEM last year, by 4% compared to 2022. However, digital income was up by 13%, while a category with the super useful label of ‘general royalties’ - which includes the live and public performance of music - was up 18.5%. 

SACEM’s total collections are somewhat higher than PRS. Converted into pounds, SACEM collections come in at £1.26 billion, compared to total PRS collections of £1.08 billion. Although more revenue streams pass through SACEM than PRS. 

In the UK, there is a separate collecting society for mechanical royalties, MCPS, and a decent portion of digital income flows directly to the music publishers rather than going via the collective licensing system. With French repertoire, SACEM handles all the digital licensing. 

As well as keeping its costs down, SACEM says it is also working to make payments to its members faster. Indeed, it says, it “accelerated collection and distribution activities” in 2023. 

For those general royalties, and income from streams on Spotify and Apple Music, payments are now distributed “three months after the quarter of exploitation”. YouTube music royalties will also be paid on that timeline from next month. Which, SACEM reckons, makes it “the most diligent society in Europe in terms of paying out main online royalties”. 

Commenting on the figures, CEO Cécile Rap-Veber hails the organisation’s work to “improve efficiency” which has “optimised both our collections and the amount distributed to our members”. She then adds, “Looking beyond the figures, we have worked to provide social and professional support for our members and have continued to defend our collective management model in the face of competition and technological upheaval”.

“SACEM certainly wants to be efficient for its members", she continues, “but it also wants to be useful for everyone, for its customers, its partners, for all those who make music or who simply love it”.

Seemingly happy with all that, the SACEM board has also announced that its members recently voted unanimously to extend Rap-Veber’s term as CEO.

Setlist Podcast: It’s been a bad week to be Live Nation

In this week's Setlist Podcast: Chris Cooke and Andy Malt discuss the US government’s legal action against Live Nation that seeks to force it to sell off Ticketmaster, ticket touts’ plans to fight the Labour Party’s proposed 10% price cap on the resale of tickets, and more.

🎧 Click here to listen - or search for 'Setlist Podcast'

The MLC’s billion dollar black box in the spotlight in US Copyright Office review 

The US Copyright Office is currently reviewing whether or not The MLC should continue to administer the compulsory licence used by digital music services in the US, which sets how songwriters and music publishers get paid when their music is streamed. 

However, should there even be a compulsory licence to administer? Has The MLC really helped address the music industry’s black box problem, given it will soon be sitting on a billion dollars of  black box money? And, assuming the Copyright Office concludes that The MLC should still administer the licence, should that be subject to it achieving certain performance goals? 

These are among the questions raised by songwriters and their representatives in submissions made to the review. 

Should there even be a compulsory licence? 

Activist songwriter George Johnson asked the Copyright Office to review the American compulsory licence that covers the mechanical copying of songs last year. In a letter last June he referenced the history of the compulsory licence, all the way back to 1909, noting that the licence was “designed for a different time, for the local sale of piano rolls”. 

No one in the early Twentieth Century could have anticipated how the licence would be subsequently employed, he added, first by record companies and then digital platforms. No one could have anticipated that the licence would ultimately be “used billions of times, by the largest trillion-dollar corporations in the history of the world, with teams of attorneys”.

In a new submission to the MLC review, Johnson boldly declares that the collecting society - set up by the 2018 Music Modernization Act - is “a failure” because “the 1909 compulsory licence is a failure and a really bad idea that has finally run its course”. 

Johnson’s basic argument is that the rates paid to songwriters when their songs are copied shouldn’t be set by US Congress and a panel of judges - and is the case under the compulsory licence - but should be negotiated on the open market. “Why is Congress in the songwriter royalty rate business in the first place?” he asks in his submission. 

Both songwriters and music publishers have been critical of the compulsory licence of late. The US National Music Publishers Association recently asked Congress to change copyright law so that its members can choose to opt out of the compulsory licence and force digital services to the negotiating table in relation to their specific catalogues. 

However, under that proposal, digital services would still be able to rely on the compulsory licence - and The MLC - for all and any songs not subject to an opt-out. That includes songs that are streaming where copyright owners haven’t even been identified yet. Which brings us to an issue where there is often tension between writers and publishers: the good old black box.