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Thanks to our partner IMPALA, we can provided to all BIMA members a 15% discount on pro-pass for fifty lab 2024 (Brussels, 13^th – 15^th November)

To use it, simply head to the pro ticket platform here and add a ticket to your basket.

Use the code IMPALA2024 to claim your discount.

One of the founders of BIMA & IMPALA, the loss of [PIAS] to the independent sector will be felt in many different ways, discussed IMPALA’s executive committee following the news this week that UMG had bought 100% of the shares of the leading independent company. As [PIAS] is no longer an independent entity, the company is leaving BIMA & IMPALA.

Geert de Blaere, chair of Belgian association BIMA and IMPALA treasurer : “The Belgian market owes a debt of gratitude to [PIAS], which shows all entrepreneurs what is possible and this will also always be the case. However the impact in the independent sector will be structural, significant and long lasting. This is completely different to a share deal as UMG takes over the market share of [PIAS]. Scale and stability in the whole independent sector will be lost. Incremental shifts in the market across the majors leverages disproportionate influence in the hands of a few companies. Each time that happens the result is more control over how the market develops.”

The executive committee of IMPALA thanked [PIAS] co-founders Michel Lambot and Kenny Gates for their support and insight over the past twenty four years. Already recognised with IMPALA’s independent outstanding contribution award in 2023 on [PIAS]’ 40th anniversary, Kenny will continue to run the company and Michel will remain active in the music and broader cultural sector through a new business, Emotions.

Helen Smith, executive chair of IMPALA, commented: “[PIAS] is an inspiration for all entrepreneurs in music. We will miss Michel and Kenny in so many ways. We congratulate them on their achievements and thank them for their leadership. This will leave a huge hole in the independent sector and at IMPALA, with Michel on our board for 24 years and instrumental in achieving all our milestones. We thank [PIAS] for being one of the first members to contribute to IMPALA’s carbon calculator, also stepping up for our digital work, our EDI task force and other groups. To hear [PIAS]’ story check their 20MinutesWith podcast with the late Juliana Koranteng.”

Speaking on behalf of IMPALA’s executive committee, Dario Draštata, IMPALA Chair and Chair of RUNDA Adria added: “[PIAS] will remain a true inspiration across Europe and its imprint on the sector will continue through various bodies the company were instrumental in establishing, from Merlin to IMPALA as well as WIN. More recently the company promoted telling the story of labels and the value of music, a role that has been taken on by the think tank ORCA.” 

Chair of IMPALA’s streaming group and CEO of Everlasting Records and Popstock Distribuciones, Mark Kitcatt continued: “Michel Lambot has been one of the keenest and most insightful participants in our plan to reform streaming to make it fairer, to place artists at the centre of the streaming ecosystem and encourage platforms to highlight support and fairly reward the whole, diverse range of musical creation, with Adrian Pope also playing a key role in developing our strategy on digital issues. We all look forward to news of Michel’s new company Emotions and wish both Kenny and Adrian well with the new chapter for [PIAS]. IMPALA’s work on the RAAP case is another great example, with Michel a staunch believer in fairness and the need for reciprocity in trade rules to raise the level of protection worldwide.” 

IMPALA’s executive committee also discussed how unchecked concentration in the music market continues to be a serious problem. The move by UMG squeezes the independents further in an already very concentrated market. It also goes against the principle established by the European Commission over ten years ago during UMG’s takeover of EMI that UMG is already too big.

Helen Smith, IMPALA’s Executive Chair commented: “IMPALA expects regulators to investigate the acquisition and answer the question the industry is asking about how it is possible for UMG to gain more market share after it was already considered too big. We would expect both physical and digital markets to be assessed including for distribution services, as well as the impact on competitors, digital services, artists and fans. A share deal is one thing, this is something else.”

UMG’s ability to expand through acquisitions has been on ice as it had a ten year ban imposed on it by the European Union following UMG’s attempt to buy EMI in 2012, which ended in UMG being forced to sell over a third of EMI. The bottom line is UMG’s acquisition of [PIAS] will increase the power of UMG across Europe and beyond, including the UK and the USA, and IMPALA expects regulators in these jurisdictions to take action. The pursuit of key independent players by all three majors has been happening in national markets across Europe and elsewhere and there is a serious risk of this continuing and posing real disruption for the independent sector.

IMPALA chair Dario Draštata commented: “This type of creeping power is an issue across Europe. Apart from strengthening UMG in terms of market share, it eliminates a principal competitor and should be investigated. It also narrows options for artists and labels. It is not a question of an arithmetical increase of market share points by one major, but rather a sea change in the competitive dynamics of the music market, to the severe detriment of competitors and consumers. Sony has been doing the same and we see similar moves in Central and Eastern Europe with Warner Music Group buying stakes in several leading independent music companies across the region. The loss of such big players for the independent sector compounds the competitive impact and the risk is that this trend will continue. We have been signalling the problem of creeping dominance for many years and it’s time for a new competition approach to address this question.”

IMPALA also flagged that this is not just a regulatory question, it is a strategic issue for the sector and for all decision makers about growth and competition generally. President of IMPALA Francesca Trainini commented: “One of the challenges is to consider not just the impact of this consolidation, but whether the market conditions and finance options are there to support the growth of the next generation of companies bringing scale and power to the independent sector. Growing Europe’s “missing middle” was identified as a top priority by IMPALA in its very first action plan and it remains vital for the sector. We urge the new European legislature entering office now to take a fresh strategic approach. IMPALA has been working on this with its finance group and the board meeting next month will look at this further.” 

IMPALA highlights how ongoing work in the sector will now be even more crucial. The question of independent distribution and access to market is just one example. IMPALA’s executive committee recognises the great work done over the years by [PIAS] as well as other independent distributors and also welcomed the recent news about Cargo Independent Distribution which provides scaled distribution options internationally for the sector.

Addressing other market developments that have been highlighted by IMPALA as a priority is also important. This includes addressing the risk of a two speed market following moves to reform how streaming revenues are allocated, as well as monetising TikTok and stopping their attempt to boycott Merlin, see here and here. This is on top of other factors which must be tackled to avoid haemorrhaging cash for music companies and artists across Europe, including the RAAP case. Control over collecting societies is also a concern and again will be exacerbated, both by the growing market share of UMG, and by the loss of strong independent voices on collecting society boards across Europe.

IMPALA also points to ongoing work on innovative solutions on the finance side to provide independents with different options, as well as opportunities to develop new approaches. This includes possible projects inspired by previous work, such as the divestment process carried out by IMPALA and Merlin, and also basic measures like tax credits.

Gee Davy, Interim CEO of AIM, added: “Kenny and Michel are fully deserving of the appreciation of the whole independent community for all they have done to champion and support the sector over many years. I am encouraged by their stated determination to continue in their support, albeit in a different way from within their new parent company, even while I am sad to see a great independent music business find that the only way to achieve further scale and survival leads them away from independence. Further consolidation is deeply concerning in reducing options and diminishing collective independent market share, impacting on fair competition and choice. However, I also appreciate that with increasing pressures from all sides it is more and more difficult to see how independents can achieve necessary scale for global success and find business exit options which protect staff and legacy. This is why in the UK, AIM continues to work with regulators to ensure an open market and is calling on the new Labour government to encourage investment in new music across all regions and nations of the UK through a tax credit scheme similar to the successful scheme in the UK film sector and similar schemes in other nations.” 

Helen Smith summed up: “We are looking at this from multiple angles. We want to see more independent companies like [PIAS] not fewer. We need a revamp of exit strategy options, new solutions to access finance, provide tax incentives and grow our market share. A review of whether competition is fit for purpose in today’s music market is also in order, and proper solutions for issues like the RAAP case. Above all, it’s about a combination of strategies that put diversity at the top of the pyramid. There are plenty of solutions and we urge the whole market to join us on this exercise. It is credit to Michel and Kenny that the [PIAS] example is the springboard to re-opening these discussions.” 

BELGISCHE ONAFHANKELIJKE LABELS REAGEREN OP DE UITSPRAAK VAN HET BELGISCHE GRONDWETTELIJK HOFOM HET EUROPESE HOF VAN JUSTITIE TE CONSULTEREN VOOR DE IMPLEMENTATIE VAN DE DIGITAL SINGLE MARKET COPYRIGHT DIRECTIEVE.

Artiestenvergoeding in België – waarom onafhankelijke labels de constitutionele rechtszaak mee ondersteunden en wat zij zien als beste aanpak naar de toekomst toe

Het vinden van de beste manieren om de vergoeding van artiesten én labels te laten groeien en optimaliseren, is een van de grootste prioriteiten voor BIMA (Belgian Independent Music Association).

Dat is immers van fundamenteel belang voor de toekomst van onze leden, de onafhankelijke Belgische muziek labels en hun artiesten.

Daarom steunde BIMA de grondwettelijke betwisting van specifieke bepalingen, welke zonder discussie of passende beoordeling binnen onze sector,  door de Belgische regering zijn ingevoerd in haar Auteurswet van 2022, tot uitvoering van de EU-richtlijn inzake auteursrechten in de digitale eengemaakte mark (DSM – Digital Single Market).

België heeft nieuwe wettelijke bepalingen ingevoerd welke enerzijds een rechtstreekse invloed hebben op de manier waarop artiesten worden vergoed én anderzijds welke ook de mogelijkheden van labels om in Belgische artiesten te investeren in het gedrang brengen.

Deze bepalingen, welke een bedreiging vormen voor onze bloeiende en diverse muzieksector, en België in conflict brachten met de rest van de EU, werden trouwens eerder al verworpen tijdens het wetgevingsproces op Europees niveau.

In reactie op het besluit van vandaag merkte de BIMA-voorzitter Geert De Blaere op:

Wij zijn van mening dat het Belgische Grondwettelijke Hof de juiste beslissing heeft genomen om de rechterlijke toetsing naar het Europese Hof door te verwijzen.

Eerder dan de genoemde juridische bepalingen, is vooral een dynamische aanpak nodig om de lokale markt te laten groeien en de inkomsten van artiesten te maximaliseren

Daarom steunen we bijvoorbeeld eerder de streamingvoorstellen van IMPALA. Idealiter worden deze ook gekoppeld aan een plan van de regering om investeringen in bestaande en (nieuwe) muziek te stimuleren door middel van belastingverminderingen, diverse andere fiscale stimuli en (sociale) maatregelen om artiesten te ondersteunen.

Geert De Blaere vervolgde: « De groeiende muzieksector in België wordt gekenmerkt door snelle internationale veranderingen en een variëteit aan kansen voor artiesten.  Velen van hen werken samen met de BIMA-leden om op nieuwe en innovatieve manieren hun muziek naar de fans te brengen, waar ook ter wereld. 

De problematische bepalingen in de Belgische wet zijn eerder kenmerkend voor een gedateerde benadering, welke de vrijheid van de kunstenaar vooral beperkt om te beslissen met wie en hoe hij samenwerkt.  

Dit staat in schril contrast met andere Europese landen welke wel trouw bleven aan de geest van de Europese wetgeving.

Het ecosysteem waarin de lokale (kleinere) labels zich dagelijks inzetten om nieuwe opkomende artiesten te ontdekken, zou simpelweg on hold worden gezet door de nieuwe bepalingen, met een nefast gevolg voor de Belgische muziekmarkt in zijn totaliteit.

In plaats van de positie van de Belgische artiesten te versterken, hypothekeert de voorgestelde wetgeving eerder de toekomst van de Belgische muzieksector en het vermogen van lokale platenlabels om te investeren in Belgische artiesten en de bredere muzieksector van het land. Het ontmoedigde simpelweg investeringen in Belgische muziekproducties.

Tegelijkertijd erkent BIMA dat er problemen zijn in de digitale markt en dat bvb manipulatie via massastreaming, verzadiging van digitale platforms door een overaanbod in titels, in combinatie met AI-aangedreven fraude en de recente veranderingen in de manier waarop inkomsten worden toegewezen, inkomstenproblemen kunnen veroorzaken voor (beginnende) artiesten en (micro) labels.

De BIMA-voorzitter concludeerde: « De Belgische muziekmarkt is misschien klein maar wel erg rijk aan talent, diversiteit en creativiteit, mede dankzij de drie talen en regio’s. Het is en blijft verhoudingsgewijs een van de beste muziekmarkten ter wereld. 

Het lokale groeipotentieel is nog steeds enorm en we willen er naar streven om veel meer Belgische artiesten internationaal te zien slagen.“