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CMU Digest
CMU Digest 11.07.16: Guvera, Rdio, consent decrees, Bravalla, Digital Economy Bill, The George Tavern
By Chris Cooke | Published on Monday 11 July 2016
The key stories from the last seven days in the music business…
The directors of flagging streaming service Guvera went on a PR offensive to combat bad press garnered since the company’s failed attempt to IPO in Australia and it putting two of its subsidiaries into administration. The firm insisted its ad sales focus remained a sound business plan, though an expected proposal for settling with the creditors of the two companies in administration didn’t materialise and should now be made available later this week. [READ MORE]
Rdio hit back at Sony by accusing the major of anti-competitive behaviour in the way it negotiates its streaming deals. Since Rdio declared bankruptcy last year, selling its assets to Pandora for $75 million, Sony has sued three of the streaming firm’s former execs claiming they misled the major in the months before the company’s collapse. The music firm says the new anti-trust allegations are a bid to distract from its case against the defunct streaming set-up. [READ MORE]
More music publishing execs in the US hit out at the Department Of Justice’s plans to not reform the consent decrees that govern collecting societies BMI and ASCAP, and instead force so called 100% licensing onto the collective licensing system. Warner/Chappell’s Jon Platt said: “This determination is completely inconsistent with the manner in which ASCAP and BMI have issued public performance licences and threatens to undermine the very system by which songwriters have, for many years, been compensated for the public performance of their songs”. [READ MORE]
Live firm FKP Scorpio responded to reports that five rapes took place at Swedish festival Bravalla earlier this month. After artists expressed concern about the high number of sexual assaults reported at the event, the promoter said that the worryingly high number was in part due to how Swedish authorities classify such incidents when reported. It said rigorous security measures were already in place at the festival but that these would be stepped up further in 2017. [READ MORE]
The UK government unveiled its latest Digital Economy Bill which, like its 2010 predecessor, will amend various bits of law in relation to the internet. For the music industry, the most important proposal relates to the penalties for criminal level copyright infringement, with the sentences for online infringement brought in line with those for CD and DVD bootleg operations. [READ MORE]
East London music venue The George Tavern scored a success in the Court Of Appeal which blocked planning permission for a new residential property development near the building that could have caused licensing problems for the pub down the line. Though The George’s success was more down to the impact the new building would have had on the venue’s photography business. [READ MORE]
The big deals from the last seven days in the music business…
• Chrysalis Records acquired more old EMI catalogue from Warner [INFO]
• BMG bought New York rock label The End Records [INFO]
• BMG bought Australian independent music firm Alberts [INFO]
• TEG bought Australian promoter Dainty Group [INFO]
• Absolute Label Services signed a deal with Hannah Trigwell [INFO]
• Kobalt Label Services signed a deal with The Naked And Famous [INFO]
