TODAY'S TOP STORY: Members of the music and clubbing community have joined the chorus of outrage, sympathy and debate that has followed the shooting at the Pulse nightclub venue in Orlando this weekend that left 50 people dead and a further 53 wounded. A single gunman, Omar Mateen, attacked the venue, part of the Florida city's LGBT scene, at around 2am on Sunday... [READ MORE]
TODAY'S APPROVED: The latest edition of the Southbank Centre's Meltdown Festival, this year curated by that Guy Garvey, kicked off on Friday. And as it did, NZCA Lines released a new song, commissioned by BBC 6 Music as part of the station's coverage of the event. 'Oh... (Call Me Back)' was constructed using samples recorded around the Southbank Centre'. "The drums on... [READ MORE]
CMU TRENDS: "Transparency" has become quite the buzzword, with everyone agreeing that there should be more of it. But who needs to be more transparent about what and to whom? Chris Cooke reviews how digital royalties work their way through the system, and where the mysteries, confusions and blockages occur. To access CMU Trends become a premium subscriber for just £5 a month. [READ MORE]
CMU PODCAST: CMU's Andy Malt and Chris Cooke review the week in music and the music business, including the $20 million song-theft lawsuit filed against Ed Sheeran, the RIAA's attempt to suspend The Pirate Bay's .org domain, The Worldwide Independent Network’s new indie music market research and Axl Rose's photo woes. The CMU Podcast is sponsored by 7digital. [READ MORE]
TOP STORIES Music industry responds to Orlando club shooting
LEGAL Terra Firma bails on its EMI dispute with Citigroup
LIVE BUSINESS Live music contributed £3.7 billion to UK economy in 2015, UK Music report finds
MANAGEMENT & FUNDING AKB48 management firm accuses Chinese spin-off group of "contractual violations"
DIGITAL & D2F SERVICES Amazon reportedly plotting standalone streaming music service
Crowdmix confirms loss of CEO ahead of launch
THE GREAT ESCAPE CMU@TGE: The emerging YouTube industry
EDUCATION & EVENTS Iceland Airwaves announces second Nonference
ARTIST NEWS Zayn Malik apologises for pulling out of Capital Summertime Ball after anxiety attack
AND FINALLY... Neil Young still on the anti-Trump list after all
Click JUMP to skip direct to a section of this email or ONLINE to read and share stories on the CMU website (JUMP option may not work in all email readers). For regular updates from Team CMU follow us on Twitter, Facebook or Tumblr.
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A guide to upcoming events from and involving CMU, including seminars, masterclasses and conference sessions from CMU Insights and workshops from CMU:DIY, plus other events where CMU journalists are speaking or moderating.
13 Jun 2016 CMU Insights Seminar: How Music Rights Work
20 Jun 2016 CMU Insights Seminar: How Music Licensing Works
27 Jun 2016 CMU Insights Seminar: The Music Rights Sector
4 Jul 2016 CMU Insights Seminar: Merch, Live & Brands
6 Jul 2016 CMU Masterclass: Navigating The Digital Market
11 Jul 2016 CMU Insights Seminar: Building A Fanbase - Social Media Tools
18 Jul 2016 CMU Insights Seminar: Building A Fanbase - Music Media
25 Jul 2016 CMU Insights Seminar: Building A Fan-Orientated Business

Music industry responds to Orlando club shooting
Members of the music and clubbing community have joined the chorus of outrage, sympathy and debate that has followed the shooting at the Pulse nightclub venue in Orlando this weekend that left 50 people dead and a further 53 wounded.

A single gunman, Omar Mateen, attacked the venue, part of the Florida city's LGBT scene, at around 2am on Sunday morning local time. A hostage incident then ensued until about 5am when, according to the BBC, a police assault team - which had received text messages and calls from some of the hostages inside - entered the venue. Mateen was killed during the rescue operation.

The horrific incident feeds into a number of ongoing political debates. Mateen, an American of Afghan descent, reportedly swore allegiance to the so called Islamic State before the attack, again instigating emotive discussions around the impact Middle Eastern conflict and Islamic fundamentalism can have on Western democracies.

Meanwhile, Mateen legally purchased several guns in the days leading up to the attack, putting America's gun control laws, or a lack thereof, back in the spotlight. While for the gay community, Mateen's choice of venue is a reminder that homophobia remains a real danger, even in societies where LGBT rights are now usually assured.

For the music community, without wishing to be too inward looking, parallels are inevitably being drawn with the gun attacks on the French gig venue Bataclan last year. As we noted at the time, while we all know terrible terrorist attacks take place around the world all the time, the news will always hit hardest when the horror occurs in such a familiar environment.

As with the Bataclan attacks, venue owners and promoters will now be asking whether security measures should be stepped up at music and clubbing events and, if so, how that can be done without too great an impact on the events themselves. That's arguably an even greater challenge at club venues, where people are generally more mobile once inside the premises.

The boss of the G-A-Y venues in the UK, Jeremy Joseph, spoke to BBC Newsbeat about these challenges, saying: "I've spoken to police and they've been very reassuring but the problem is that it's lone people doing this. There's a concern now that there's going to be a copycat person who's going to attempt this here. What they're trying to do is create as much devastation as possible and take as many lives as possible".

Joseph confirmed that venues receive and adhere to advice from anti-terror police, and that they are trying to educate customers too. He went on: "We do what they advise us to do. I know this sounds awful but customers can be stupid. They come in, leave their bag on the floor, and go to the bar or toilet and just leave it there. We're trying to get customers to be vigilant".

Speaking to Billboard in the US, Russ Simons, a security expert at Venue Solutions Group, said event operators could still up their game. He told the industry magazine: "For our business I believe this will help motivate people to take the appropriate steps to keep their patrons and guests safe. In my opinion, the results of last night's events will be the realisation that this is not someone else's problem. The threat exists, whether from terrorists, hate crime or someone who is mentally deranged - it can happen anywhere people gather".

Though Dan Berkowitz of CID Entertainment, which specialises in VIP concert experiences, argues that the US has it's own wider issues to deal with, bringing the matter back to the gun control debate. "Unfortunately, with gun use and ownership so out of control, this is not a problem that is unique to the music industry".

"These days we need to be careful and vigilant when going to the movies, attending a religious service, going out to a club, or simply walking down the street", he added. "This is largely an American problem, not just a music industry problem. That being said, our artists' and guests' safety and security are always our highest priority".

The US music industry - and the Orlando music community in particular - were already in the midst of a new debate around the country's gun controls law before Saturday night's atrocity, after singer Christina Grimmie was killed by another lone gunman while signing autographs after a concert in the city on Friday night.

Grimme, who rose to fame on YouTube before appearing on the US version of 'The Voice', had been performing with the band Before You Exit prior to the shooting. Media reports suggest her killer, Kevin James Loibl, was a "deranged fan" from St Petersburg, Florida, who possibly travelled to the show in Orlando with the sole purpose of killing the singer.

Incidents like this pose similar but different challenges for a music industry where artist meet-and-greets are at an all time high, and have become separate revenue streams for some acts, while for YouTube talent in particular closer contact with fans has become the norm.

Of course, for today, the focus should remain on supporting those who lost friends or family during this weekend's attacks, and on the criminal investigations. Though the various political debates around these stories will also continue in the longer term, including those of particular interest to everyone involved in live entertainment.

Terra Firma bails on its EMI dispute with Citigroup
Private equity firm Terra Firma sensationally abandoned its long running lawsuit against Citigroup in relation to its 2007 acquisition of EMI on Friday. It brought the very final chapter of the former British music major to a very sudden close indeed.

As previously reported, Terra Firma and its boss man Guy Hands had long claimed that the bankers at Citigroup misled them ahead of their 2007 deal to buy EMI. Citi was working for both EMI and Terra Firma at the time, and provided a mega-loan to help fund the acquisition.

Terra Firma said Citi execs provided misleading information about the state of the music company and the intention of another bidder, resulting in the equity firm bidding too soon and too high for the EMI business.

The debt-saddled acquisition went horribly wrong when the credit crunch meant EMI's mega-debts couldn't be restructured. Citigroup eventually repossessed the music company, resulting in big losses for Terra Firma and Hands (and, argued the bankers, Citigroup too).

Terra Firma first sued Citigroup over the allegedly misleading information it received in the New York courts in 2010 and lost. But a retrial was called because some specifics of English law were incorrectly handled during that hearing. That retrial got underway in the London courts last Tuesday.

In both court hearings, Citigroup's lawyers argued that Guy Hands had strangely clear recollections of the bad advice he claimed to have received from Citi, yet a pretty hazy memory about everything else to do with the big EMI deal. On top of that, last week the Terra Firma chief was accused of inconsistencies between his 2010 and 2016 testimonies.

Hands denied all of those allegations last week, but then on Thursday - according to the Financial Times - the legal team repping Terra Firma approached lawyers working for Citigroup about calling the whole thing off. Then on Friday Hands basically admitted that his side's evidence just wasn't strong enough.

After a special meeting in court on Friday to bring the long-running litigation to a prompt end, Hands told reporters: "These claims were brought in good faith. However, it has become evident that our documentation of the fast-moving and complex events, and memories of these events after nine years, are no longer sufficient to meet the high demands of proof required for a fraud claim in court".

Calling the whole show off four days in is no cheap decision for Hands, who was trying to claw back some of his past EMI losses with the lawsuit. Terra Firma will now also have to cover all their own legal costs plus those of Citigroup, which could run into millions.

"The matter is now closed", Hands went on, confirming that he is now finally putting his music industry adventure behind him. "Terra Firma is looking to the future. We have an exciting portfolio of companies, a talented and experienced team, supportive and loyal investors and one billion euros of capital to invest".

Needless to say, Citigroup relished the development, feeling it vindicated both the bank and its bankers. "We have always maintained that the allegations made by Terra Firma are entirely baseless", it said. "And that Citi, specifically David Wormsley, Michael Klein and Chad Leat, acted at all times with absolute honesty and professional integrity throughout the EMI transaction".

And that's it ladies and gentlemen. It's truly over. We need never write about the Terra Firma twonks ever again. Well, unless I get around to writing 'The Bold And Bloody Death Of EMI: The Opera'.

Live music contributed £3.7 billion to UK economy in 2015, UK Music report finds
Cross-sector trade group UK Music has published its annual report on the contribution of live music and music tourism to the UK economy.

The 'Wish You Were Here' report finds that 27.7 million people attended live music events in the UK in 2015, and that 14% more people attended events in their local area than in 2014. Of the 27.7 million, 24 million attended gigs and concerts, 3.7 million festivals, while 10.4 million - 38% of the overall number - were 'music tourists'. 767,000 of those tourists came from outside the UK (rather than them being just British people making a bit of an effort), an increase of 16% on the previous year.

Total direct and indirect spend due to music tourism was £3.7 billion, the report reckons, up 7%, and 39,034 people were being kept in full time employment thanks to all this musical travel. Foreigners coming over here and buying our tickets spent an average of £852 on their trip, which is an increase of 13%, including buying £38 million worth of tickets.

"The appetite for live music continues to grow", says UK Music chief exec Jo Dipple. "Last year overseas music tourism increased by 16%, whilst British music events were attended by a staggering 27.7 million people in 2015. What this report shows, unequivocally, is the economic value of live music to communities, cities and regions".

And the UK's Secretary Of State For Culture, Media & Sport, John Whittingdale, commented: "This is a fantastic achievement and a great testament to both our live music industry and the musical talent it supports. This is no surprise given British artists account for just over one in seven albums purchased by fans around the globe".

The report will be officially launched at UK Music's annual summer party at the House Of Commons on Wednesday.

AKB48 management firm accuses Chinese spin-off group of "contractual violations"
The management company behind Japanese mega-girl-group AKB48 - AKS - is investigating Chinese spin-off group SNH48 over possible "contractual violations", ceasing all promotion of the group last week.

The original Japanese group has over 100 members, who vie to be elected part of the main group by fans. With AKB48 linked to Tokyo's Akihabara district, various spin-off outfits have been launched in other areas of Japan, plus China, Indonesia, Thailand, the Phillipines, and Taiwan. In 2012, almost 40,000 girls applied to become members of the Shanghai-based SNH48.

In a statement on the official AKB48 website on Thursday, AKS said that it had become necessary to "review the operations" of SNH48's local management team. This is seemingly due to new Chinese spin-off groups being set up in Beijing and Guangzhou without official approval. BDJ48 and GNZ48 apparently first emerged in March this year.

AKS says it was "not aware" of these groups, and that they have "nothing to do with AKB48".

Amazon reportedly plotting standalone streaming music service
Not happy with sensibly filling a gap in the market by providing more mainstream consumers with a limited catalogue streaming music service as part of its Prime membership programme, Amazon is planning to fully launch itself into the sensational (mainly in the losses it makes) world of on-demand music streams. Good times.

This is according to Reuters, which cites two of those pesky sources as saying that Amazon has plans to go fully up against Spotify, Apple Music et al with a $10 a month streaming music platform, likely to go online Stateside later this year. Bosses at Amazon reckon they need to offer the full-on streaming music experience in a bid to truly be the one-stop-shop for entertainment that no one wants.

The streaming music market is a competitive one, of course, with the advances and minimum guarantees demanded by the record companies meaning that - despite in theory being a revenue share business - entrants into the market need deep pockets. Especially as some competitors - in particular Apple and Google - have existing platforms through which to market, and don't necessarily need streams to be too profitable, if music can fuel other sales.

Though, of course, most of that applies to Amazon too, which, in Prime, arguably has a great platform via which to promote the full-on streaming experience to more mainstream consumers. And all that streaming data can help Amazon pitch the right gadgets, stationery and cat food to its subscribers. Music tastes influence cat food purchasing, right?

Oh, and Amazon now has its own gadgets remember. Like the voice-enabled wireless Echo speaker. I mean, mainly the voice-enabled wireless Echo speaker. Have you got yourself a voice-enabled wireless Echo speaker yet? You just try using Amazon Streams and see how quickly they flog you a voice-enabled wireless Echo speaker.


Crowdmix confirms loss of CEO ahead of launch
Those of you who have been wondering "does the world really need a social network for music?" might now be asking "will we ever find out?" God you're a bunch of cynics. Just because, after weeks of chatter about the delayed launch of Crowdmix - the social network for music - the start-up confirmed on Friday that its CEO had left the company.

Crowdmix confirmed the departure of top man Ian Roberts to Business Insider, saying in a statement: "As Crowdmix moves towards the public launch of its app following a successful invite-only private beta, its co-founder and CEO, Ian Roberts, has left the business".

But don't be worrying, everything is going just dandy with those moves to public launch. "Crowdmix is currently raising a fourth round of investment which is expected to be completed in the coming days. The new funding will ensure operational growth, enabling the executive team, which includes co-founder Gareth Ingham who now takes the role of CEO, [and] Rob Wells (COO and CEO in the Americas), to take the business forward. Staff have been paid their wages".

Oh, yeah, wages. That last bit followed reports that Crowdmix's workforce were only paid their May salaries this month. But hey, launch. "I am immensely proud of the world class team we've managed to assemble for the next stage of our journey", said Roberts alongside the official Crowdmix statement. "I wish everyone huge success. I believe Crowdmix will be a real force for good and remain a massive supporter".

As do we all. Do we? A force for good? Yeah, why not? Though I do still wonder, does the world really need a social network for music?

CMU@TGE: The emerging YouTube industry
Look out for insights, advice and viewpoints dished out at this year's CMU Insights @ The Great Escape conference here in the CMU Daily throughout June. Here are some of the takeaways from the final session of the YouTube focused strand.

Once an artist has built a following on YouTube, and started to gain some traction, a new set of challenges and opportunities arise. There are various deals to be done behind the scenes, though in terms of driving new revenues, brand partnerships and going live will be high up the agenda.

The truth is, the bulk of a successful YouTuber's income does not come from YouTube itself, but rather the deals they do alongside their channel. Brand partnerships are an obvious one, though there has been criticism of some YouTube creators for not being clear enough about when they've been paid to promote a product. And that is particularly concerning when, as we've already heard, fans tend to think of their favourite YouTubers as being more like friends.

"A lot of people say it's the Wild West. Well, actually it's not, it's terribly clear", said lawyer Cliff Fluet, who works with a number of YouTube stars. "It just involves a lot of regulations that the music industry haven't had to trouble themselves with [previously]. And in truth, the real problem is that the regulations are very clear indeed, they want people to know exactly when something is an advertising message and when something isn't. A lot of the YouTubers' currency depends on authenticity and reality, and managing that tension requires a highly sophisticated approach".

"Ultimately with the social media influence, their relationship is very direct with their audience, and authenticity is very important", added fellow lawyer Tahir Basheer. "So if they get an Advertising Standards Authority complaint made against them, then that casts all sorts of issues for them. I've been involved in some of these matters, and just the complaint can be enough for a YouTuber to feel as though they're potentially going to lose their audience".

The possibility of losing your YouTube audience is clearly of great concern to anyone building a business around that very fanbase. But does that mean brand partnerships are something to be feared altogether? No, said Kilimanjaro's Mark Walker. "If the YouTuber is being honest about their work being branded and they're communicating that to their fans, the fans respond well to it".

Another logical step for a YouTube-based performer looking to drive new revenue and grow their fanbase further is to create a live show, which many YouTubers have now done, albeit with varying success. In her on stage interview at the TGE session prior to this discussion, singer-songwriter Hannah Trigwell noted that YouTube had allowed her to build a global audience from day one. "The labels will tell you, you can't go abroad until you break your own country", she said. "We just go global. That's the reach of a platform-based audience".

However, that global audience online poses its own challenges once you go live. "The talent generally builds a fanbase globally, and therefore there's no enormous local hub that can drive them into a particular venue", said Instrumental's Conrad Withey. "At the point when an artist is so significantly big that they can then do that, they can probably do it in about twelve markets, but you don't necessarily have your home market".

"At the moment we're going out to promoters all over the world, in Asia, Australia, and they're constantly asking for geo-data", added WME's Alex Bewley, the possibility of an act with a massive global fanbase not actually have enough traction locally clearly a concern to promoters booking YouTube talent.

"Some of the acts we work with have a very young audience", added Withey. "We'll put live shows on and we'll sell the meet-and-greet tickets in about five minutes, and then the general admission tickets we can't sell. [The fans] will arrive, go and do the meet-and-greet bit, very happy, then the show starts and they all stand at the back chatting and looking at their phones".

"It's not necessarily the case that [fans] just want to come to what we think of as a live show", he noted. "The music's important, but actually it's the access they really want to pay for".

As noted by Peg's Nic Yeeles earlier in the day, collaboration with artists in the traditional system can often be mutually beneficial. Walker gave an example of one of his YouTube acts, singer-songwriter Emma Blackery, supporting Charlie Simpson on tour.

"We sold 70% of tickets before we even announced Emma", he explained. "So she got the bonus of playing to his audience, but then they filmed two videos together while they were on tour, so then he was tapping into her audience as well".

Iceland Airwaves announces second Nonference
Iceland Airwaves has announced the second edition of its informal music conference, Nonference, at this year's event, hosted by Icelandic export agency IMX. Among the events on the day, there will be a focus on the resurgent hip hop scene in Reykjavík, which has spawned artists such as Noah Kin, Reykjavíkudætur and Glacier Mafia.

"We wanted to give all the local and international music professionals at Iceland Airwaves a platform to meet and discuss, without it being too much of a formal conference - hence the name, Nonference", conference manager Anna Asthildur tells CMU.

"We'll have a chat with some of the people we think have the most interesting things to say about music and business, have a soak in the swimming pool and have a beer together. It's all a very Icelandic way of getting to know one another".

Sign up to receive more information about Nonference here.

  Approved: NZCA Lines - Oh... (Call Me Back)
The latest edition of the Southbank Centre's Meltdown Festival, this year curated by that Guy Garvey, kicked off on Friday. And as it did, NZCA Lines released a new song, commissioned by BBC 6 Music as part of the station's coverage of the event. 'Oh... (Call Me Back)' was constructed using samples recorded around the Southbank Centre'.

"The drums on 'Oh... (Call Me Back)' are made from samples of sounds from the Southbank, as well as some of the keyboard parts being made from feeding those same samples into a delay and making it self-resonate, thus producing a tone that we built the patch from", explains NZCA main man Michael Lovett.

"Lyrically, the song is from the perspective of a guy who's been stood up by his date after they arranged to meet at the Southbank to watch a film", he continues. "She's at home in the bath. Because he's at the Southbank and there's loads of different stuff to do, he passes the time by sitting in a cafe, seeing some art, reading his book. It's all inspired by the creation of these two characters and the setting of the arts centre".

NZCA Lines will play Meltdown on 15 Jun, followed by various festivals over the summer. You can also catch them doing a headline show in London on 28 Sep at Village Underground.

Listen to 'Oh... (Call Me Back)' here.

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Zayn Malik apologises for pulling out of Capital Summertime Ball after anxiety attack
Zayn Malik yesterday issued a statement on his last minute cancellation of a planned appearance at the Capital Summertime Ball this weekend. The former One Direction member said that a growing struggle with anxiety has "gotten the better" of him.

"My anxiety that has haunted me throughout the last few months around live performances has gotten the better of me", he wrote in an Instagram post. "With the magnitude of the event, I have suffered the worst anxiety of my career. I cannot apologise enough, but I want to be honest with everyone who has patiently waited to see me. I promise I will do my best to make this up to everyone who I have let down today".

"I know those who suffer anxiety will understand and I hope those who don't can empathise with my situation", he added.

Find out more about anxiety and panic attacks in this Mind guide.

Neil Young still on the anti-Trump list after all
Good news for fans of less complicated categorisation, Neil Young is back on the list of musicians unhappy that Donald Trump has used their music in his campaign rallies. In fact, he says, he was never off that list.

In a recent interview with Reuters, Young was quoted as saying: "The fact that I said I was for Bernie Sanders and then he didn't ask me to use 'Rockin In The Free World' doesn't mean that he can't use it ... You know, once the music goes out, everybody can use it for anything. But if the artist who made it is saying you never spoke to them, if that means something to you, you probably will stop playing it. And it meant something to Donald and he stopped".

But if you read that as Neil Young saying that he was actually fine with Donald Trump using his music, then you're an idiot. "The headline created by Reuters is titillating and it is purposely misleading, it is not journalism it is tabloid reporting", says Young in a new Facebook post.

He seems particularly angry because Trump appears to have read the story as Young giving his blessing for his music to be used at the presumed Republican US presidential candidate's rallies. "When I discovered that the candidate first used my song at his campaign launch, my management called his office and immediately requested he stop", writes Young. "We thought he had. But now, unfortunately, I understand he is still using it".

Noting that, of course, direct permission from an artist is not required when playing music at a venue covered by a blanket licence for public performance, Young adds that "I believe using an artists work for a specific politicians campaign represents 'implied consent'".

Young continues: "After we asked him to stop using my music, he began hurling insults and then immediately released a photo to the media (again without my permission) to further mislead the public. The picture was taken when I visited his office while conducting various meetings with potential investors for my amazing sounding music company Pono, many months prior to his decision to become a candidate".

Although, as a Canadian citizen, he is unable to vote in the presidential election, Young reiterated his support for Bernie Sanders, who is still battling Hilary Clinton for the Democrat nomination. "I still support the issue focused, straight shooter Bernie Sanders, in my opinion, the best person for the job, hands down", he said. "The process is not over until it's over. I do not endorse hate, bigotry, childish name calling, the superficiality of celebrity or ignorance".

He closed off the message with a video of himself shouting "Fuck you, Donald Trump" on stage at a recent live show.

ANDY MALT | Editor
Andy heads up the team, overseeing the CMU bulletins and website, coordinating features and interviews, reporting on artist and business stories, and contributing to the CMU Approved column.
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