france
At European collective management organizations (CMOs), the hits just keep on coming. On Wednesday (June 5), SACEM announced record results for 2023, with collections up 5% to €1.49 billion ($1.6 billion based on the 2023 average euro-to-dollar conversion rate) compared to the previous year and distributions rising 17% to €1.23 billion ($1.33 billion). The French CMO also announced that its board has voted unanimously to extend Cécile Rap-Veber’s term as CEO.
The results come amid a thriving period for European CMOs. In April, GEMA, the German collecting society, announced that revenue rose 8.4% in 2023 to €1.28 billion ($1.4 billion). PRS for Music in the United Kingdom followed at the end of May, disclosing 14.2% revenue growth to £1.08 billion ($1.34 billion). However, in both of those cases, as well as SACEM’s, the results followed years of more substantial growth fueled by music fans eager to get back to seeing live shows in the wake of the pandemic. A year ago, for example, SACEM announced that it had taken in €1.41 billion ($1.54 billion) in 2022 — 34% more than it did the prior year.
Slower growth seems to be bringing with it a focus on controlling costs, and SACEM’s ratio of expenses to revenue collected is 10.76%, the lowest in its history. “What matters to me is the best value for our members,” SACEM CEO Cécile Rap-Veber tells Billboard. She adds that a more efficient disbursement of royalties boosted growth in distributions beyond that of revenue, saying: “We are distributing faster and faster.”
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The biggest source of revenue for SACEM was online, which rose 13% to €557 million ($602.67 million). The second biggest source was general royalties — a category that includes places where music is central, such as concerts, as well as places where it’s not — which was up 18.5% to €388 million ($420 million). Finally, broadcast rights, including TV and radio, brought in €318 million ($344 million).
Over the past few years, Rap-Veber has helped modernize the French CMO with an initiative known as “SACEM 3.0,” with a focus on delivering results at a reasonable cost.
“2023 was a year of confirmation in the implementation of our major strategic priorities,” Rap-Veber said in a statement. “We continued our transformation into Sacem 3.0 and worked to improve efficiency, ensuring the sustainability of our management account and optimising both our collections and the amount distributed to our members.”
More than ever, CMOs are competing for online rights — but also, on some level, for bragging rights. ‘Competition,” says Rap-Veber, “has forced a lot of us to improve.”
Believe founder and CEO Denis Ladegaillerie has formed a consortium with investment funds EQT and TCV as part of a wider effort to acquire full ownership of the French music company and take it private. The triad announced their intentions on Monday (Feb. 12), and the Believe board of directors unanimously voted to welcome the proposal to review.
All told, the bid values Believe’s entire share capital at 1.523 billion euros (USD $1.64 billion) based on 101,547 million shares outstanding.
Before they can take Believe private, Ladegaillerie, EQT and TCV first must acquire shares owned by historical shareholders TCV Luxco BD S.à r.l., XAnge and Ventech, which combined amount to 59.46% of the share capital. After this already agreed-upon transaction, Ladegaillerie would then contribute a portion of his company shares, representing an additional 11.7%, to the bidding conglomerate, as well as sell his remaining portion of 1.29%. An additional 3% has been obtained from other shareholders, bringing this group’s share of the company to roughly 75%.
Once these acquisitions are approved by regulators, the conglomerate would then make a tender offer for all Believe outstanding shares at an offer price of 15 euros per share, representing a 21% premium over the last closing price before the proposed buyout was announced (12.4 euros on Feb. 9). If legal conditions are met at the end of the offer, the company will then request the implementation of a squeeze-out procedure.
Completion of the acquisitions of the blocks of shares is expected to take place during the second quarter of 2024, and the filing of the subsequent tender offer would be sent to the Autorité des marchés financiers (AMF), which regulates the stock market in France, soon after.
The French digital music company, which owns TuneCore, began trading on the Paris Euronext exchange in June 2021.
Believe’s board has appointed an independent expert, Ledouble, to draw up an opinion on the offer, and assigned three board members to assist with that effort and work up their own recommendations for shareholders and employees.
In prepared comments, Ladegaillerie said Believe has “systematically outperformed its objectives, delivering its IPO plan two years ahead of schedule” but “the strength of its operational performance has not been reflected in the share price evolution.”
He added, “Believe has a significant opportunity ahead to consolidate the independent music market and create the first global major independent, at the service of artists at all stages of their career. In achieving this ambition, I am glad to continue benefiting from the active support of TCV who has accompanied Believe since 2014 and to be partnering with Europe-based EQT who has a great track record in supporting high growth companies.”
Believe has appointed Citigroup Global Markets Europe AG and Gide Loyrette Nouel as financial and legal advisers to assist the company and the three-member committee in their evaluation of the offer.
The French government’s decision to impose a new tax on music streaming platforms will be highly damaging for the country’s music industry and sets a “dangerous precedent” for other markets, warn streaming executives opposing the levy.
France’s National Assembly officially approved the tax charges on Tuesday (Dec. 19) as part of the country’s 2024 finance bill.
It specifies that streaming services such as Spotify, Deezer and Apple Music earning above 20 million euros ($22 million) in annual turnover will have to pay a new tax charge of 1.2% on all streaming revenue generated in France in addition to their existing tax duties. Social media platforms like Facebook and TikTok which license and feature music will also be subject to the tax charges.
The money will be used to help fund a national body to support the French music sector, The Centre National de la Musique (CNM), which was created in 2020 and is already partly financed by the live music industry.
The new levy comes into effect from Jan. 1, although music streaming services are still waiting for confirmation of when the first payment will be due to the French authorities.
‘A REAL BLOW’
Deezer CEO Jeronimo Folgueira says the tax on streaming platforms’ earnings will have “negative consequences for the entire music industry in France.”
“It is the worst possible outcome of all the different scenarios that we could have ended up with,” Folgueira tells Billboard. “Adding taxes is the worst way of trying to support the industry. It sets a very dangerous precedent for other markets.”
In a statement, a spokesperson for Spotify France called the tax “a real blow to innovation, and to the growth prospects of recorded music in France.”
The company said it is “assessing the implications of such a tax” and “strongly remain opposed to this unfair, unjust and disproportionate measure.”
On Wednesday (Dec. 20), Spotify France announced that it was pulling financial support for two local music festivals, the Francofolies de la Rochelle and the Printemps de Bourges, to help offset the extra tax burden.
Plans to tax music streaming platforms’ earnings in France have long been mooted by authorities and were first proposed in April by then-senator Julien Bargeton, who initially suggested a tax rate of 1.75% for services like Spotify, Deezer, Apple Music, Amazon Music and YouTube Music to support the French music industry.
In response, streaming executives and stakeholders from across the country’s music industry put forward a number of alternative funding solutions, including making a voluntary annual contribution of 14 million euros ($15 million) towards The Centre National de la Musique.
Executives closely involved in those talks tell Billboard that the voluntary contribution proposal — which involved the participation of collecting societies and music producers and was tiered depending on a company’s business and turnover — received “near unanimous” backing from across the sector, apart from Amazon, which refused to commit. (Amazon Music, Apple Music and YouTube Music all declined or didn’t respond to requests to comment when contacted by Billboard).
With the music industry unable to agree on an alternative offer, the French Senate voted in November to approve the new tax measures, which were formally ratified earlier this week.
TAX BURDEN
President Emmanuel Macron’s decision to tax music streaming companies to fund cultural programs follows the same principles the country already applies to the film industry. For many decades, the French government has imposed a tax levy on cinema ticket sales (currently amounting to 10.7% of the ticket price) to fund public body The French National Centre of Cinema (CNC).
Since 2010, publishers and distributors of television services, including streaming platforms like Netflix and ad-funded videos platforms such as YouTube, as well as DVD and Blu-Ray retailers, have paid a similar mandatory contribution set at 5.15% of turnover.
Like its cinema counterpart, funding for The Centre National de la Musique will come from across the French music industry, but executives at Spotify and Deezer believe it places an unfair burden on streaming companies who already pay out around 70% of their revenues to rights holders alongside their existing tax commitments in France. They include sales tax (VAT) at 20% and a 3% tax on digital services.
At present, the French live music industry pays a higher rate of tax contribution (3.5% on concert tickets) towards the CNM, but ticketing companies pay a lower rate of VAT sales tax (around 5%) compared to digital music platforms.
Physical music retailers, recording studios, radio services and labels are exempt from paying the new 1.2% levy.
“We’re not questioning the need to finance The Centre National de la Musique or be taxed. What we’re questioning is the decision to only target one distribution format – DSPs,” says one France-based music executive, speaking to Billboard anonymously.
Folgueira says the tax unfairly impacts on European streaming platforms like Deezer and Spotify, which have heavily invested in developing the local market, and disproportionately advantages American tech giants like Google, Apple and Amazon who have a smaller on-the-ground presence and “can easily absorb the costs.”
Paris-based Deezer is the market leading subscription streaming service in France and generates around 60% of its 451 million euros ($478 million) yearly revenue in the country. A tax rate of 1.2% on domestic turnover works out at around 3.2 million euros ($3.5 million), according to Billboard’s calculations.
CUTS COMING?
Folgueira says the new tax burden could possibly mean that Deezer is forced to pass on the extra costs “along the value chain,” which could include reviewing agreements with labels and rights holders.
The CEO says that it’s likely to mean Deezer cutting spend on domestic music projects and marketing, while price rises for subscribers is another possible outcome. “None of which is a good outcome for boosting the French market,” cautions Folgueira.
France is the world’s sixth largest recorded music market with €920 million in revenue in 2022, up 6.4% on the previous year, according to IFPI’s Global Music Report.
Folgueira’s concerns are shared by executives at Spotify. Speaking last week to local news network France Info, Antoine Monin, director general of Spotify France said that the company will reduce its investment in the market as a result of the taxes and said “France will no longer be a priority for Spotify.”
Billboard understands that Spotify France will be making further cost saving announcements in the coming weeks with subscription price rises among the options on the table.
Confirmation of a new tax charge for streaming companies in France comes at a pivotal time for Spotify, which posted an operating profit of 32 million euros ($35 million) in the third quarter of 2023 but has also undergone three rounds of job cuts this year.
Earlier this month, Spotify co-founder and chief executive Daniel Ek announced that the company was to close more than 1,500 posts internationally, representing around 17% of its global workforce.
“For many months now, we have been denouncing the risks underlying the creation of such a tax, particularly in terms of the loss of attractiveness for platform investments in France,” says Alexandre Lasch, managing director of French labels body SNEP. “It is precisely the artists produced in France who will be the victims.”
Despite streaming companies’ opposition to the levy, other sectors of France’s music business have welcomed the increased funding towards domestic culture.
Guilhem Cottet, managing director of the French association of independent music companies UPFI, says the establishment of a mandatory contribution to the CNM from streaming companies will help drive diversity and innovation in the sector.
“The current remuneration model is unjust towards a lot of musical genres which are not heavily listened to by young people — mostly rap and electronica — in France. And if there’s no decent remuneration, labels will cease producing these genres,” says Cottet.
“The tax is a regulation tool to ensure the CNM is able to finance them and make sure diversity prevails.”
The Warner Music Group has signed on to Deezer’s new royalty payment structure in France, which was developed in partnership with Universal Music Group and announced in September, the president of the major label’s French operations confirmed today (Nov. 13). The move, which was first confirmed in a story with French outlet Les Echos, has been in place since Oct. 1, and only covers streams in France, where Deezer is based.
In September, Deezer and UMG announced their new model, which they referred to as an “artist-centric” royalty model aimed at combatting fraud, reducing the royalty pool for so-called “non-artist noise” like white noise and nature sounds, and boosting payouts for what the companies referred to as “professional artists,” or artists who were accumulating 1,000 streams per month from 500 unique listeners. The model replaces the existing pro-rata model, in which rights holders were paid by share of streams, regardless of their stature or content, which is still in place globally.
“We are delighted to partner with Deezer on this artist-centric model which rewards engaging music and demonetizes non-artist noise,” Warner Music France president Alain Veille told the outlet. “Our new deal will benefit creative talent at all stages of their careers and support our ability to invest in the next generation.”
In opting in to Deezer’s new structure, WMG joins UMG and a handful of small indies, while the third major, Sony Music, has so far not signed on. The move comes amid a year’s worth of conversation in the music industry about how to tweak the streaming royalty structure as the amount of tracks being uploaded each day to major services surpasses 100,000, and fraud on services is becoming an increasingly big topic. Universal also announced a royalty review with SoundCloud and TIDAL, while Spotify released its own tweaked model, which has far lower thresholds for artists than Deezer’s and is more narrowly aimed at fraud, rather than at determining the level of streams that constitutes an artist’s professional status.
When Deezer and UMG first announced the new model, it was met with pushback from several corners of the music business, particularly the indie sector, which was concerned about those seemingly-arbitrary levels to qualify as a “professional” and about the one-label study that led to its adoption. And while there is broad consensus in the industry that the model needs to change — including public statements from UMG chairman/CEO Lucian Grainge and WMG CEO Robert Kyncl — there is not universal agreement in how to do so, and there is a possibility that each digital service provider could adopt its own model moving forward.
In initially announcing the model in September, Deezer CEO Jeronimo Folgueira told Billboard that he expected more rights holders than UMG to sign on, and planned on rolling out the new structure globally in the coming year. For now, the model is limited to France.
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Fans of the French rapper known as MHD are in shock as they’ve learn that the man who is credited with pioneering afro-trap has just been sentenced to 12 years in prison for a murder he is said to have committed in 2018.
According to The Guardian, the 29-year-old rapper, born Mohamed Sylla, along with five other co-defendants were sentenced to prison for the 2018 incident in which they were accused of ramming a young man with a car before getting out and stabbing him to death. With prison terms ranging from 10 to 18 years, prosecutors say the violence was the result of a gang dispute that turned deadly. Three other men involved in the case were acquitted, but those who were convicted have 10 days to appeal the sentencing.
The Guardian reports:
During MHD’s final statement to the court before it retired to consider its verdict after three weeks of proceedings, he again said he was innocent. “From the beginning, I have maintained my innocence in this case and I will continue to maintain my innocence,” he told the packed court.
On the night of 5 July 2018, 23-year-old Loic K was rammed by a black Mercedes and then beaten up and stabbed by around a dozen people in the French capital’s 10th arrondissement.
MHD, whose real name is Mohamed Sylla, denied having been at the scene, but a local resident filmed the incident from his window and the Mercedes was identified as belonging to MHD.
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The car was found abandoned and burned out in a car park a day after the killing.
Witnesses reportedly pointed out MHD’s presence by describing his haircut and the Puma sweatshirt he was allegedly wearing. This is despite the rapper’s claims that he was not at the scene.
Though MHD’s family, friends and fans are no doubt broken up over this ruling, the lawyer for the victim’s family Juliette Chapelle, said that “a judicial truth emerged despite the law of silence.”
MHD for his part maintains his innocence and will more than likely appeal the sentence.
A government watchdog agency in France has ordered Apple to withdraw the iPhone 12 from the French market, saying it emits levels of electromagnetic radiation that are too high.
The National Frequency Agency, which oversees radio-electric frequencies as well as public exposure to electromagnetic radiation, called on Apple in a statement Tuesday to “implement all available means to rapidly fix this malfunction” for phones already being used.
Corrective updates to the iPhone 12 will be monitored by the agency, and if they don’t work, “Apple will have to recall” phones that have already been sold, according to the French regulator’s statement.
Apple disputed the findings and said the device complies with all regulations governing radiation.
The agency, which is known by the French acronym ANFR, said it recently checked 141 cellphones, including the iPhone 12, for electromagnetic waves capable of being absorbed by the body.
It said it found a level of electromagnetic energy absorption of 5.74 watts per kilogram during tests of a phone in a hand or a pocket, higher than the European Union standard of 4 watts per kilogram.
The agency said the iPhone 12 met the threshold when radiation levels were assessed for a phone kept in a jacket or in a bag.
Apple said the iPhone 12, which was released in late 2020, has been certified by multiple international bodies and complies with all applicable regulations and standards for radiation around the world.
The U.S. tech company said it has provided the French agency with multiple lab results carried out both by the company and third-party labs proving the phone’s compliance.
Jean-Noël Barrot, France’s minister in charge of digital issues, told France Info radio that the National Frequency Agency “is in charge of controlling our phones which, as there are software updates, may emit a little more or a little less electromagnetic waves.”
He said that the iPhone 12 radiation levels are “slightly higher” than the standards but “significantly lower than levels where scientific studies consider there may be consequences for users. But the rule is the rule.”
Cellphones have been labeled as “possible” carcinogens by the World Health Organization’s cancer research arm, putting them in the same category as coffee, diesel fumes and the pesticide DDT. The radiation produced by cellphones cannot directly damage DNA and is different from stronger types of radiation like X-rays or ultraviolet light.
In 2018, two U.S. government studies that bombarded mice and rats with cellphone radiation found a weak link to some heart tumors, but federal regulators and scientists said it was still safe to use the devices. Scientists said those findings didn’t reflect how most people use their cellphones and that the animal findings didn’t translate into a similar concern for humans.
Among the largest studies on potential dangers of cellphone use, a 2010 analysis in 13 countries found little or no risk of brain tumors.
People’s mobile phone habits also have changed substantially since the first studies began and it’s unclear if the results of previous research would still apply today.
Since many tumors take years to develop, experts say it’s difficult to conclude that cellphones have no long-term health risks. Experts have recommended that people concerned about their cellphone radiation exposure use earphones or switch to texting.
A third-party software provider is to blame for a major disruption to a ticket sale for six Taylor Swift shows in France, according to a statement issued by Ticketmaster France. “This morning’s sale was disrupted by an issue with a third-party vendor who is working to resolve the issue as soon as possible,” the company […]
Sacré bleu! Ticketmaster France pressed pause on the presales for four Paris dates and both shows in Lyon for Taylor Swift‘s 2024 European Eras Tour.
“Some of you may be having issues with the site this morning,” the company tweeted on Tuesday morning. “We are working on it and will let you know.”
The four Paris dates at La Défense Arena on May 9, 10, 11 and 12, 2024 were set to go on sale today in two stages, with one sale for May 9 and 10 opening at 9 a.m. local time and another, for May 11 and May 12, due to start at 11 a.m. Sales for the two dates at Lyon’s Groupama Stadium, set for June 2 and 3, were due to begin at 1 p.m.
“We will keep you informed of the new on-sale time as soon as possible,” the company said. “All codes will remain valid.”
As in past presales, fans had to sign up in order to be put into a lottery for code to redeem for a shot at tickets. But shortly after the Paris sale had begun, “winning” fans began having problems and Ticketmaster suspended the presale, citing issues with the site.
Leading up to the sale, the company gave fans an idea of what to expect:
Tickets will be available for purchase via the website for access code holders on July 11, 2023. Tickets will be sold on a first come, first served basis while currently available inventory lasts. It’s a simple, standard purchase process and the steps below will help you navigate your search and purchase.
If you are selected to receive an access code, you will receive an email and two SMS messages the afternoon before ticket sales begins on July 11 2023
The messages will include timing details and a link to where the on-sale will occur, and your unique access code.
Prepare for the sale by creating your customer account in advance if you don’t already have one. Sign-in to your Ticketmaster Account in advance. Know your Ticketmaster password, or reset your password in advance. For a faster checkout, make sure you have a valid credit card with updating billing information in your account.
The company did not respond to a request for details on the nature of the site outage.
Though “July 11” won’t carry the same stain as “Nov. 15” — the date Ticketmaster’s site buckled under the weight of millions of Swift fans trying to purchase initial U.S. Eras Tour dates — it remains another botched sale for a Swift sale for the ticketing giant.
Last week, Swift announced an additional 14 dates for her European trip next year, with Paramore opening all dates. Swift’s Eras Tour launched in Glendale, Arizona on March 17. She plays two nights at Denver’s Empower Field this weekend before heading to Seattle and the San Jose area later in July.
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The death of Nahel Merzouk at the hands of a police officer in France has spurred numerous protests and shed light on deep racial divisions in the country.
According to reports, the 17-year-old of Algerian-Moroccan descent was detained at a traffic stop in Nanterre, a suburb of Paris last week. Video footage shows one of two officers firing a shot through the windshield of the yellow Mercedes as Merzouk pulled forward. Forensics reports showed that one shot killed the Nahel Merzouk, as the car then slammed into the barriers at Nelson Mandela Square. The killing compelled observers to draw comparisons to the death of George Floyd in 2020 as it was caught on video, which was shared widely through social media. “He saw a little Arab-looking kid, he wanted to take his life,” the teen’s mother said to France 5 Television.
The death of Merzouk sparked intense outrage as many took to the streets to protest Merzouk’s killing in cities and towns throughout the country over the next six nights, often clashing with police and resulting in 3,400 arrests. Protests were even reported in French Caribbean territories such as Martinique and Guadeloupe, and even the island of Reunion in the Indian Ocean.
The fury behind the protests also points to how French society and its government have adopted an official stance of colorblind universalism. In fact, it is considered illegal to compile racially-based statistics in the country. Observers point to that stance as the reason decades of systemic racism have been prevalent in a country that welcomed Black American expats such as James Baldwin.
In 2017, the Défenseur des Droits civil-liberties watch group noted that “young men perceived to be Black or Arab” were 20 times more likely to be stopped by police for identity checks, and in 2021 six groups including Amnesty International and Human Rights Watch launched a class-action suit against the French government over its failure to address racial profiling by police.
“For 40, 45 years there have been warning signs about discrimination,” says Abel Boyi, head of the “All Unique, All United” group. The issue has been pointedly addressed by noted authors such as Frantz Fanon, Aimé Césaire, and Léopold Senghor who struck at the colonial underpinnings of France that harmed Black and Brown citizens. “He was a nonwhite person in this country,” university student Syrine Djidi said while at a protest for Merzouk, noting that he was the same age as her brother. “Nonwhite people are targeted by the police.”
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Victor Wembanyama will have all eyes on him after it is widely understood that the French basketball phenom will be selected first overall in the 2023 NBA Draft this summer. On Tuesday, the NBA Draft Lottery concluded with the San Antonio Spurs landing the top pick and NBA fans have plenty to say.
Victor Wembanyama, 19, currently plays for the French professional basketball team Metropolitans 92 of the LNB Pro A. Wembanyama, who is listed at 7-foot-4 although online reports list him at ranges of 7-foot-5 and 7-foot-2, is thought to be the greatest basketball prospect to emerge in quite some time. Despite his long frame, Wembanyama has the dribbling and passing skills of a guard which had every team in the NBA hoping to land the big man.
The good fortune experienced by the Spurs couldn’t have been more timely considering that the team, coached by Gregg Popovich, isn’t the elite team it once was during the David Robinson and Tim Duncan era. Under Popovich’s tutelage, the Spurs won five NBA championships, the last coming in 2014. It should also be noted that the last time the Spurs had the top pick of the draft, they selected Duncan.
With Wembanyama all but certain to be selected by the team, the fortune of the Spurs is expected to change almost immediately. It will be interesting to see how Wembanyama plays alongside the young core of Keldon Johnson, Tre Jones, and Devonte’ Graham.
On Twitter, both Victor Wembanyama and the San Antonio Spurs see their names trending with all kinds of reactions. We’ve got the best of them listed below.
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