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CMU Digest
CMU Digest 08.08.16: Consent decrees, Sony/ATV, Crowdmix, Vevo, Guvera, CORE Media
By Chris Cooke | Published on Monday 8 August 2016
The key stories from the last seven days in the music business…
The US Department Of Justice confirmed the conclusion of its review of the consent decrees that regulate collective licensing on song rights Stateside: that there should be no changes, but that officials there reckon current rules obligate collecting societies BMI and ASCAP to operate a 100% licensing system. The music industry hit out at the decision, with BMI vowing to fight it in court, while ASCAP will seek support in Congress. [READ MORE]
The European Commission approved Sony Corp’s deal to buy the Michael Jackson estate out of the Sony/ATV music publishing company. The deal had been criticised by rivals and indie music groups on competition law grounds. Pan-European indie labels trade group IMPALA said the EC’s decision was “clearly wrong” and “goes against the EU’s previous analysis of concentration in music”. [READ MORE]
Digital start-up Crowdmix, which is trying to launch a music-focused social network, was reportedly bought out of administration by it’s biggest financial backer to date, property tycoon Nick Candy. It is thought he and founder Gareth Ingham hope they can still make a go of the failed venture if they streamline its operations. [READ MORE]
Warner Music finally signed up to Vevo, the music video platform owned by Sony Music and Universal Music. The mini-major will start making its videos available, but only to Vevo’s proprietary platforms, not its network of YouTube channels. Warner has its own relationship with YouTube that allows it to sell advertising around its videos on the Google site. But having Warner music within its app will help with Vevo’s plans to launch a subscription service. [READ MORE]
Creditors of the two Guvera subsidiaries that were put into administration agreed to a ‘deed of company arrangement’ which will stop the two companies from being liquidated. Former employees should see everything they are owed, though other creditors will be paid a nominal amount of unpaid monies. Meanwhile there was speculation about the health of the flagging streaming firm’s Indian business, which has been held up by management as a key market for the wider company. [READ MORE]
Simon Fuller filed legal papers in relation to the bankruptcy of CORE Media, the company that owns the rights to the ‘Idol’ TV franchise that the entertainment industry veteran created. Fuller says that he is owed millions in unpaid consultancy fees, and he seemingly opposes plans made by the TV firm as it works its way through chapter eleven bankruptcy protection. A spokesman for CORE criticised the move. [READ MORE]
The big deals from the last seven days in the music business…
• BMG bought Altitude Music [INFO]
• SESAC announced a JV with SUISA [INFO]
• Chrysalis Records announced a deal with Kobalt [INFO]
• Relentless Records signed Professor Green [INFO]
