Just two days after Frank Oceans Blonde, one of the biggest releases of the year, was released on Apples iTunes, Lucian Grainge, CEO of Universal Music Group and widely regarded as the most powerful executive in the music industry, has reportedly ordered the companys labels to stop the practice of making exclusive distribution deals with streaming services.
According to Bob Lefsetz, author of an influential music industry newsletter, Grainge sent out a company-wide email on Monday. UMG, which boasted seven of 2015s 10 best-selling albums and 38.5% of the years recorded-music sales, will be the first major label to ban the practice, which many feel has begun to diminish rather than enhance the way music is distributed and consumed.
The directive will affect dozens of bands under the UMG umbrella, including all five of this years album of the year Grammy nominees: Kendrick Lamar, Taylor Swift, the Weeknd, Chris Stapleton and Alabama Shakes.
The practice of artists offering exclusives to competing streaming and download services, including Apple and Tidal, has been gaining traction this year. Both Beyoncé and Rihanna launched their recent albums through Tidal, the streaming service part-owned by Beyoncés husband, Jay Z.
The ultra-hyped Frank Ocean release coming exclusively through Apple, coupled with a deal announced earlier this month between Apple and Cash Money Records, whose artists include Lil Wayne, Nicki Minaj, Young Money and Birdman, appears to have been sufficient to provoke label executives to action.
Lefsetz, like many others in the business, believes making exclusive distribution deals is anti-competitive and ultimately harms the consumer and the artist.
He says the Cupertino hardware giant whose music arm, Apple Music, is steered by former Universal head Jimmy Iovine, should be investigated by the government over anti-trust concerns because theres a conspiracy between Apple Music and the industry to change the game, to get everybody to pay for a subscription by putting hit content behind a paywall.
https://www.theguardian.com/busines...ing-exclusives-frank-ocean-release?CMP=twt_gu