Cover image by Ирина Лепнёва courtesy of Wikimedia Commons
Welcome back to Tune-In, Enharmonic Magazine's monthly dive into some of the most interesting news in the music industry! July kept the beat with exciting updates, fresh controversies, and groundbreaking deals. From cutting-edge tech trends to industry-shaking rivalries, Tune-In has all the intriguing details to keep you plugged into the business side of the music world. Buckle up for our latest edition, packed with the freshest insights and headlines!
This month, Universal Music Group and Sony Music ramped up the drama in their $400 million lawsuit against the Internet Archive, shifting gears into alternative dispute resolution. In more legal news, the "NO FAKES Act" made its debut in the U.S. Senate, aiming to protect artists from the unpredictable world of AI-generated deepfakes. SoundExchange turned up the heat on AccuRadio with yet another lawsuit over unpaid royalties, while TikTok and DistroKid teamed up for a standout partnership. Latin music stole the show with soaring sales! Meanwhile, Spotify added a new flair with podcast episode comments, and the US Copyright Office clarified songwriter termination rights. As Suno's AI music-generating app took center stage, UK music festivals faced a crescendo of tough questions about their future. Bebe Rexha opened up about her struggles in the industry, and the Tom Petty estate hit a high note with a global deal from Warner Chappell Music.
Don't miss the exclusive recap of these stories and more on Tune-In. Prepare to be amazed by the latest news and make sure to stay up-to-date on your music industry knowledge for the month ahead.
UMG, Sony Music, Others Shift $400 Million Legal Action Against the Internet Archive Into Alternative Dispute Resolution
On July 31, 2024, Ashley King of Digital Music News reported that Universal Music Group (UMG) and Sony Music have shifted their $400 million lawsuit against the Internet Archive into alternative dispute resolution (ADR). The lawsuit concerns the Internet Archive's "Great 78 Project," which has digitized and made available over 400,000 recordings originally released as 78rpm records. The major labels argue that the project infringes on copyright by distributing these recordings without permission, even with the inclusion of hisses and pops as part of the digital copies. The Internet Archive contends that the project falls under the fair use provision of the Copyright Act, aiming to preserve historical recordings for scholars and future generations. The case's move to ADR may take several months to resolve.
"NO FAKES Act Introduced In U.S. Senate"
On July 31, 2024, John Nix Arledge of MusicRow reported that the "Nurture Originals, Foster Art, and Keep Entertainment Safe Act of 2024" (NO FAKES Act) was introduced in the U.S. Senate by Senators Chris Coons (D-DE), Marsha Blackburn (R-TN), Amy Klobuchar (D-MN), and Thom Tillis (R-NC).
The bill aims to protect individuals, including artists and performers, from the misuse of their likenesses and voices in AI-generated deepfakes. It seeks to provide legal safeguards against unauthorized digital reproductions that could harm reputations or falsely attribute works. The act has garnered support from numerous music industry organizations, including the Recording Academy, the RIAA, and the Human Artistry Campaign.
These groups emphasize the importance of ethical AI use in enhancing creativity while protecting artists from exploitation.
"SoundExchange Sues Free Music Streamer AccuRadio Over Alleged Failure to Pay Royalties"
The month ended with more interesting legal news: On July 22, 2024, Bill Donahue of Billboard reported that SoundExchange filed a lawsuit against AccuRadio, a free music streaming service, over unpaid royalties. SoundExchange, a non-profit organization responsible for collecting and distributing royalties for digital performances, claimed that AccuRadio stopped paying royalties in 2018, which has allegedly harmed creators.
The lawsuit, filed in Washington D.C. federal court, accuses AccuRadio of violating federal law by not compensating artists and record labels for the use of their music. AccuRadio founder and CEO Kurt Hanson responded, expressing surprise at the lawsuit and asserting that the company believed it was in ongoing negotiations with SoundExchange.
Hanson also highlighted the financial challenges faced by smaller webcasters due to higher royalty rates compared to traditional radio.
"TikTok fast-tracks artist account creation for DistroKid members"
On July 18, 2024, Ivan Mehta of TechCrunch reported that TikTok has partnered with DistroKid to fast-track the creation of artist accounts for DistroKid members. This partnership allows musicians to quickly set up their official Artist Accounts on TikTok, reducing the process from weeks to just hours.
DistroKid members, who pay an annual subscription fee of $22.99, can now easily showcase their new music, catalog, and behind-the-scenes footage on TikTok. This collaboration builds on the existing relationship between TikTok and DistroKid, further enhancing promotional tools for artists on the popular short video platform.
"Latin Music And Physical Albums Thrive, Here Are The Latest 2024 Industry Trends"
On July 17, 2024, Franca Quarneti of Benzinga reported that the global music industry experienced a surge in streaming activity in the first half of 2024, surpassing one trillion streams ten days earlier than the previous year.
Latin music led the growth, with a 15.1% increase in U.S. streams, driven by recent releases from artists like Bad Bunny, Peso Pluma, and Karol G. Meanwhile, physical album sales also saw an increase, with artists such as Taylor Swift, Billie Eilish, and Beyoncé contributing to the trend.
The rise in physical variants, including vinyl and cassettes, has raised environmental concerns within the industry.
"Spotify is going to let you leave comments on podcast episodes"
On July 10, 2024, Jay Peters of The Verge reported that Spotify is introducing a new feature allowing users to leave comments on podcast episodes. This addition enhances the existing interaction options like polls and Q&As. Comments will be private by default, requiring creator approval to be visible. Creators can choose to enable comments for entire shows or specific episodes, or they can opt out entirely.
The feature is available on the Spotify for Podcasters web app and is being gradually rolled out to the mobile app. This update aims to increase engagement between podcast creators and their audiences.
"Songwriter groups hail ‘landmark victory’ as US Copyright Office issues rule confirming how termination rights apply to streaming royalties"
On July 9, 2024, Murray Stassen of Music Business Worldwide reported a significant ruling by the US Copyright Office, which clarified that songwriters' termination rights apply to streaming royalties under the Music Modernization Act (MMA). This ruling affirms that songwriters can reclaim their mechanical royalties from streaming platforms like Spotify, Apple, and Amazon after invoking their termination rights. The decision was hailed as a "landmark victory" by several songwriter and artist organizations, including the Music Artists Coalition, Black Music Action Coalition, and Songwriters of North America. The ruling ensures that songwriters are fairly compensated post-termination and corrects previous misapplications by the Mechanical Licensing Collective (MLC). The decision, effective August 8, 2024, strengthens the rights of creators in the digital age, ensuring they benefit from their work even after reclaiming copyrights.
"Suno takes a 'What, me worry?' approach to legal troubles and rolls out AI music-generating mobile app"
On July 4, 2024, Eric Hal Schwartz of TechRadar reported that Suno, despite facing legal challenges, launched its AI music-generating mobile app for iOS in the U.S. The app allows users to create music by describing a song and suggesting lyrics, which the AI then translates into audio tracks. Users can also record ambient sounds, such as birdsong or conversations, and the app can turn these into music. The Suno app offers a free tier with 50 credits per day for creating short audio clips, with Pro and Premier plans available for more extensive use. This launch comes amidst ongoing lawsuits from the RIAA and several music labels, accusing Suno of copyright infringement in its training of AI models.
"Will Page: We’ve got to rethink music festivals."
On July 3, 2024, Will Page, former chief economist of Spotify and PRS for Music, discussed the challenges facing music festivals in the UK in an article on Music Business Worldwide. The piece highlighted that 50 festivals had been canceled in 2024, citing rising costs, supply issues, and changing consumer demand as major factors. The article emphasized the impact of inflation, with specific examples like the cost of hiring festival infrastructure nearly doubling since 2021. Additionally, the piece noted the role of changing consumer preferences, with younger audiences less likely to attend multi-genre festivals. The article also called for government intervention, such as reducing VAT, to support the struggling festival industry
"Bebe Rexha Gets Emotional as She Feels 'Hopeless' and 'Fed Up' with the Music Industry"
On July 2, 2024, Daniela Avila of People reported that Bebe Rexha expressed her frustrations with the music industry in a series of emotional posts on X (formerly Twitter). The singer, known for hits like "I'm Good (Blue)" and "I'm a Mess", revealed feeling hopeless and fed up with the industry's treatment of her.
Rexha shared that she has been undermined and silenced, suggesting that she has faced significant challenges that have not been publicly disclosed. Despite these difficulties, she expressed gratitude towards her fans for their support, which has helped her find strength during tough times. Rexha's latest single, "I'm the Drama" released on June 27, marks a new chapter in her career, coinciding with her reflections on her experiences in the industry.
"Tom Petty estate makes worldwide catalog deal with Warner Chappell Music"
On July 1, 2024, 98 Rock Online reported that the Tom Petty estate has signed a worldwide catalog deal with Warner Chappell Music.
This agreement grants Warner Chappell control over the entire catalog of the late Rock & Roll Hall of Famer, including his work with the Heartbreakers and his solo projects. The catalog features iconic songs like "American Girl", "Free Fallin'", "The Waiting", and "Don't Come Around Here No More."
The Petty estate expressed excitement about this new partnership, highlighting the potential for expanding the reach of Tom Petty's music to new generations globally. Warner Chappell's executives, Carianne Marshall and Guy Moot, emphasized the timeless and universal appeal of Petty's music, committing to honoring and amplifying his legacy worldwide.
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