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If you’ve taken the opportunity to disconnect this holiday season like many others, here’s your chance to catch up on the latest in music business news – featuring Five of the industry’s biggest headlines from the past couple of weeks.
In summary: several significant developments involving Universal Music Group.
First off, on December 23, UMG and Amazon Music announced a new licensing agreement which aligns with UMG’s vision of “Streaming 2.0”: enhanced segmentation of streaming subscribers, increased ARPU attributed to higher subscription rates, and a more “artist-centric” philosophy regarding royalty payments.
Meanwhile, on Thursday (January 2), it was revealed that Bill Ackman‘s Pershing Square, one of UMG’s major shareholders, closed its fund with a limited duration. Consequently, Pershing Square is transferring some of its UMG shares – valued at 2.6% of outstanding UMG shares – to private investors.
In another development, a trio of music publishers, including UMG, reached a preliminary agreement with Anthropic, the chatbot developer Claude AI, regarding “fences” meant to prevent the unauthorized teaching of materials presented by UMG.
UMG, Concord, and ABKCO initiated a lawsuit against Anthropic in 2023, claiming that Claude had blatantly copied copyrighted song lyrics. The legal proceedings are ongoing.
Major Legal Developments
Alongside UMG updates, Duke University Law School has noted that Music IP addresses will enter the public domain in the US in 2025, encompassing 1,924 entries such as George Gershwin‘s Rhapsody in Blues, Al Jolson‘s California Here I Come, and Jelly Roll Morton‘s Shreveport Stomp.
Lastly, the New Year ushered in a new list of awards in the UK, recognizing notable individuals in the music sector. This year’s honorees include Austin Dabo, Vice President of Atlantic Records, Jackie Hyde, Vice President at Sony Music, and TV presenter Jasmine Dotiwala.
This is what transpired while you enjoyed your holiday festivities…
Article Highlights
1) Universal music group and Amazon Music forge new deal, including exclusive content… and with streaming 2.0 at the core
Universal Music Group and Amazon Music jointly announced an extension to their global licensing agreement on December 23.
The agreement includes “an expansive global relationship that will facilitate further innovation, exclusive content from UMG artists, and the promotion of artist-focused principles, including improved fraud protection.”
A press release states that this deal will ensure that “UMG artists reach their commercial potential through (Amazon Music’s) continuous product enhancements and exclusive content that fosters authentic engagement between artists and fans.”
In a statement, Universal Music Group CEO and Chairman Sir Lucian Grange expressed enthusiasm: “We are excited to continue our long-standing and fruitful partnership with Amazon Music, marking a new era in streaming – Streaming 2.0…”
Photo: Kristoffer Tripplaar/Alamy
2) Pershing Square gives 47 million Universal music shares to investors, delivered from the Amsterdam exchange
Bill Ackman‘s Pershing Square Capital Management is closing an investment fund that owned a stake in Universal Music Group and distributing 47 million shares of the music company to the fund’s co-investors.
This announcement coincided with Pershing Square Holdings receiving regulatory approval to delist from the Amsterdam Stock Exchange Euronext.
At the conclusion of 2023, Pershing Square Holdings controlled 10.25% of UMG shares, according to UMG’s annual report. The 47 million shares being distributed represent 2.6% of UMG’s issued shares. Following this distribution, the investment company will retain 140 million shares or 7.6% of UMG, as stated by Pershing Square.
“The PSVII Funds opted to distribute UMG shares to their limited partners instead of cash due to believing UMG shares are currently undervalued. This tax-free share distribution allows our limited partners to retain ownership of UMG shares,” Pershing Square remarked…
As of January 1, 2025, thousands of copyrighted works from 1929, including sound recordings from 1924, will fall into the U.S. public domain, allowing for free copying, distribution, and use across the United States.
This year’s entries feature classics such as Singing in the Rain and Isn’t This Bad Behavior?.
Included among the recordings that are now “open for legal re-use” are numerous tracks recorded in 1924, as noted by Duke University Law School. Significant works include George Gershwin‘s performance of Rhapsody in Blues, Jelly Roll Morton‘s rendition of Shreveport Stomp, and early recordings by contralto and civil rights icon Marian Anderson…
Universal Music Group has made strides in its lawsuit against Anthropic, a generative AI platform accused of copyright infringement by UMG, Concord, and ABKCO.
The plaintiffs in the case allege that Anthropic, which has received US$8 billion in investment from Amazon, utilized copyrighted song lyrics to train its AI chatbot, Claude.
In recent developments, Anthropic has pledged to implement constraints to prevent its platform from using lyrics owned by the plaintiffs. It is essential to note that these “guardrails” will be applied to future technological advancements and products, as specified in legal documentation from California.
Despite the new agreement, the claim against Anthropic persists, with Hollywood Reporter indicating, “The court is expected to make a decision in the coming months regarding a preliminary injunction to stop Anthropic from teaching future models using lyrics owned by the publishers.”
5) Austin Dabo, Jackie Hyde, Jasmine Dotiwala, and Steve Lamacq among the distinguished individuals recognized in the British New Year’s Honours list
The most recent New Year’s Honours list in the UK has been announced, featuring well-known figures from the music industry. The following individuals received new titles:
Austin Dabo OBE (executive vice president, Atlantic Records UK, for services to music);
Jackie Hyde MBE (Vice President of Artist and Corporate Relations, Sony Music, for services to the music industry);
Jasmine Dotiwala OBE (long-time broadcaster, for contributions to broadcasting, music, and inclusivity);
Steve Lamacq MBE (long-time television presenter and supporter of the British Music Venue Trust, for his services in television and radio broadcasting as well as music venues)…
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Lucas focuses on the interaction between music and society. He specializes in how music influences and reflects cultures, analyzing the role of sound in social, political, and cultural events around the world.
