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In this edition, we cover Sony Music's lawsuit against Marriott for copyright infringement, an antitrust lawsuit against Live Nation by the US Department of Justice, and Sony Music's concerns over Spotify’s new subscription model.
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Hey Everybody!
Welcome to this week’s Indie Insider Newsletter. It’s been a slow week for music news with one big exception. Before we dive into the nitty gritty, there are a couple of housekeeping items that I’d like to cover.
Firstly, a reminder that we are in the middle of our Music Biz 101 series. If you’re an early-stage artist or an early-career industry operator, this series will break down some of the essential concepts that you’ll need to understand in order to be successful. You can find new episodes on our other podcast feed called Indie Insider with Calvin Windschitl.
Secondly, I want to make a quick plug for my business Habitat Financial. Habitat automates daily financial operations processes for music businesses of all sizes. Sign contracts, process royalties, make payments, and more for a fraction of what you’d pay otherwise. Habitat works with labels, publishers, and distributors who want to provide their clients with best-in-class financial tools.
Sony Music Entertainment (SME) has dropped a legal bombshell on Marriott International, accusing the hotel giant of "willful" copyright infringement in their social media posts. The lawsuit, filed on May 17 in the US District Court for Delaware, claims that Marriott used SME's music in 931 instances without permission, potentially racking up nearly $140 million in damages. This includes popular tracks by artists like Beyoncé, Harry Styles, and Mariah Carey.
This lawsuit is a stark warning to businesses of the importance of respecting copyright laws, especially in our digital age where social media is a key marketing tool. For independent artists and music businesses, it should serve as a reminder to be vigilant about how your music is used online. No one has the right to use your music in sync with video content unless expressly authorized by a rights-holder.
If you’re wondering about how you can start monitoring where and how your music is being used, Content ID on YouTube and similar platforms is a great place to start. Your label or distributor should be able to provide you with access to this information provided you’ve opted into that usage. Also, make sure that you understand your licensing agreements and that they are crystal clear in order to avoid any misuse. If Marriott, a massive corporation, can get caught in such a debacle, smaller businesses need to be even more cautious. Protect your art, and don’t hesitate to take action if someone’s using your work without permission. Having a good lawyer on speed dial is always a good practice.
In another major legal shakeup, the US Department of Justice, alongside 30 state attorneys general, has filed an antitrust lawsuit against Live Nation Entertainment and its subsidiary, Ticketmaster. The lawsuit alleges that Live Nation's monopolistic practices stifle competition, leading to higher ticket prices and fewer options for fans and artists.
Live Nation’s dominance in the live music sector means they have a significant impact on how concerts are promoted and ticketed. Independent artists often find themselves at the mercy of these giant companies, which can dictate terms and prices.
This is a potential game-changer. If the DOJ succeeds, we might see a more level playing field for indie artists and promoters. It's crucial to stay informed and be prepared to seize new opportunities that may arise if the live music landscape shifts. Consider partnering with smaller, independent promoters who might gain more traction if Live Nation’s grip loosens. Diversifying your gig opportunities can also help mitigate risks associated with any one promoter or ticketing service.
Sony Music Publishing is contemplating action against Spotify due to a reclassification of its Premium subscription tier, which now includes audiobooks. This reclassification allows Spotify to pay lower mechanical royalties to publishers and songwriters. Sony argues that this move unfairly reduces payments to songwriters by about 20%.
This development is a critical reminder of the ever-evolving landscape of music streaming services and how changes can directly impact your revenue. For indie artists who rely on streaming royalties, this can mean a significant cut in income.
Keep a close eye on these industry shifts. Understanding how your royalties are calculated and staying updated on platform changes is crucial. If you’re a songwriter, consider diversifying your income streams. Explore direct-to-fan sales, merchandise, and other platforms that might offer better terms. Also, aligning with organizations like the National Music Publishers' Association can help amplify your voice in these matters. Collective action can often lead to more favorable outcomes for all involved.
That’s a wrap for this week’s newsletter. Exciting times ahead. Pop me a message if you plan to be in New York for Indie Week—we can grab a coffee or hit one of the afterparties together.
Cheers,
Calvin
