The new issue of the newsletter begins with a look at the latest financials published by the US authors’ body ASCAP. Earlier this month ASCAP reported a return to growth for collections last year and an increase in the growth rate for distributions. Collections were up 0.3% in 2013, and distributions increased 2.7%. However, ongoing litigation with online-radio service Pandora resulted in a rise in ASCAP’s operating-expense ratio.
This issue also details the performance of SME and WMG in the last three months of 2013. Sales for SME were up 14.4% in the three month period, although the rate of increase was greatly boosted by the depreciation of the yen against the US dollar. Excluding exchange-rate fluctuations, sales were down 1% year-on-year. For WMG, total revenues increased 6.8%, excluding currency fluctuations. The acquisition of the Parlophone Label Group at the beginning of July boosted the recorded-music earnings. Without the extra income, revenues would have fallen about 3%. Publishing was WMG’s best-performing sector. Continue reading
For anyone interested in the recorded-music industry and where it is headed, it is difficult to escape the many articles and reports speculating on how music will be served to consumers in the coming years. For those living in Norway or Sweden the answer is already very clear with music subscription services leading the charge to a growth in sales after countless years of decline. Such has been the rise in music subscriptions in the two countries, streaming now forms part of sales charts published each week. IFPI Norway added streaming to album charts from the beginning of November. Previously, the album chart had only included physical sales and downloads. Sweden added streaming to its national album chart in October. IFPI Norway said by including streaming figures the album and singles charts reflected “the total consumption of music in Norway.” Streaming has been included in the Norwegian singles chart since the spring of 2011.
Adding streaming usage to a sales chart is a natural progression in the collation of music sales and recognition of how accessing recorded-music has changed. Excluding streaming from sales charts, particularly in a country where the majority of trade revenues now come from subscription services, would make those charts incomplete, unrepresentative and irrelevant. Continue reading
Depending on where a musician sits in the music industry value chain, a top-10 list of what’s most important to an unsigned artist will differ greatly to one compiled by a million-album seller. Scratching a living out of music is something tens of thousands of musicians do every day. Although the Internet has opened up the promotion and distribution of music to anyone with a computer, it has also made selling music a lot more difficult as almost every single release in a digital-music store is available for free somewhere online. Continue reading
In the past 20 years or so, all sectors of the music industry have been through massive change. Format transitions, company consolidation and greater scrutiny of copyright and licensing have changed the industry beyond all recognition. But have the changes made for industry improvements, and more important, have the main players learned from their mistakes? The recent discovery of the first issues of Music & Copyright has allowed for a unique look at just how much certain things have changed, and how much they haven’t.
The newsletter’s 20-year anniversary came and went in September, but thanks to a long-standing subscriber, copies of the first 24 issues published have been found and make for interesting reading. Despite containing names that have either long since left the music industry or been swallowed up as part of industry consolidation, the headlines for a number of news stories resonate closely with happenings today. Continue reading
As the issue of multiterritory licensing comes under the spotlight in Europe, differences in rates charged and rights splits will become more evident. Will an EU directive that breaks down national borders be followed by a bigger push for deeper collection-society harmonization across the region?
With publication of the European Commission’s new multiterritory licensing proposals, Brussels’ efforts to harmonize the EU’s digital-music landscape are looking to build on legislation harmonizing authors’ and publishers’ rights that are managed by collection societies. Continue reading
The European Commission (EC) is planning to publish draft legislation proposals early next year that will include new rules for the cross-border licensing of digital music. For several years representatives of the EC have expressed a mixture of mild irritation and outright annoyance over the licensing process for digital-music services in Europe. The number of such services has grown rapidly in the region, but several service providers continue to bemoan the time-consuming process involved in securing rights to operate in several countries. New business models specializing in digital-music delivery have brought change to collection societies, but according to some service providers, rights remain fragmented, and some providers have questioned whether the major publishers’ Pan-European initiatives have simply added a new layer of fragmentation and complexity to the licensing process, with Europe’s largest collection societies the only ones seeing any benefit. Continue reading
Last month the Pan-Nordic mechanical-rights-collection society Nordisk Copyright Bureau (NCB) reported a fall in the total amounts collected and distributed to its owner societies for last year. Despite the decline, NCB described 2010 as an important year and one that removed much of the uncertainty over the collection society’s future. Perhaps more important though, is the fact that NCB and its owner societies have shown that collection societies, if left to their own devices, can develop a very workable multiterritory online licensing system. Continue reading
MIDEM is now over for another year and representatives from all sectors of the music industry are busy digesting the comings and goings of the event. Some conference themes followed on from where they left off last year, whilst others debated new business models that rose to prominence during 2010. There were numerous cases of the traditional music industry bumping heads with supporters of these new business models. But at a number of conferences and panel sessions, there seemed to be a better understanding of some of the issues and concerns on all sides as well as a greater willingness from most of the participants to go that bit further to get their heads around each other’s issues, which in previous years, had been a source of major division. There were of course still plenty of areas of disagreement but on the whole all parties exchanged handshakes rather than insults. Continue reading
New research published by Music & Copyright reveals that total distributions of performance-rights collections increased to US$1.46 million last year. However, the volatility of the currency markets greatly affected the year-on-year comparison. Excluding these exchange-rate fluctuations, global performance-rights distributions were up 6.3%.
With much of the focus on how the recorded-music industry has fared from year to year centered on the sale of music, the contribution to both record companies and performers from performance-rights collections is often overlooked. Recent years have seen performance-rights collections rise, in complete contrast to the falls in recorded-music sales.
Music & Copyright has calculated that performance-rights distributions to record producers totaled US$794.6 million, up 2.2% from US$777.4 million in 2008. But at constant currency exchange rates, distributions increased 8.2% last year. For performers, distributions last year stood at US$664.9 million, down 1.2% from US$672.7 million in 2008. At constant currency rates, distributions to performers rose 4.1%.
Europe is the largest region for performance rights. In 2009 it accounted for 64.8% of the global distribution total, down from 70.7% in 2008. Distributions in Europe decreased 7.8%, to US$945.5 million. At constant currency rates, distributions in Europe were flat. Several unconnected factors conspired to exaggerate the decline in European collections. The largest performance-rights society in the world in terms of representation, the UK’s Phonographic Performance (PPL), was hit by a ruling late last year by the UK Copyright Tribunal regarding the rates payable by pubs, bars, restaurants, offices and factories, which meant distributions to performers and producers were down. Problems with the Italian performers’ society IMAIE meant distributions were affected. IMAIE went into liquidation in July last year, and therefore royalties collected for performers have not been paid.
In terms of potential for growth, low collection rates in the less developed regions of the world suggest that countries in Eastern Europe, Latin America and Asia Pacific should be the main targets. However, the US still offers the greatest prospects, particularly in light of the continuing strong performance of digital-performance-rights society SoundExchange.
A resolution to the performance-rights issue in the US still seems a long way off. US copyright legislation exempts AM/FM-radio broadcasters from this type of rights, and the passage of new legislation to change this is making slow progress. The Performance Rights Bill (PRB) has been considered in committee and is awaiting approval in Congress and the Senate. Few estimates exist as to what the potential payments from terrestrial broadcasters could be if the bill is passed. However, SoundExchange has offered a glimpse of the revenues that might be possible. In 2009 it distributed US$155.5 million to producers and performers, up from US$100 million in 2008.
Rock and TV star Gene Simmons told the TV industry that branding is everything and it needs to better embrace that. In a conference session at the MIPCOM TV market in Cannes hosted by Infoma Telecoms & Media’s Peter White, Simmons said the TV business needed ‘a kick in the pants’ and ‘needs to get sleeker and hipper.’ Informa is the publisher of Music & Copyright.
Simmons was in town to celebrate his A&E reality series Gene Simmons Family Jewels hitting the 100 episode mark and in a keynote address, he spoke to delegates about how he had built the brand of his rock ban KISS and built the TV show from a special to a long-running series.
“It’s your professional duty to make sure your brand spreads,” he told delegates. “I would rather be Disney than Sony, Lionsgate or Paramount – brands mean everything.”
A&E Network and BIO president and GM Bob DeBitetto explained how the Gene Simmons show had been used to build the A&E brand as it repositioned itself from ‘PBS with commercials’ to a more mainstream entertainment offering.
“We always look for shows that can help us differentiate ourselves,” he said. “When I saw the special with Gene it struck me how different it was – there was something unexpected about a rock star who is also a phenomenal family guy. At that time we were trying to reinvent A&E with programmes that surprised people. [KISS and Gene Simmons] were a bigger brand than we were and I thought why not try and get next to that.”
Simmons went on to say that KISS was the pioneering brand in exploiting the brand across all available platforms and that rights owners should heed the lessons of the music business and protect their intellectual property at every turn.
“Be litigious,” he advised delegates. “Sue everybody, take their houses, their cars. The music industry was asleep at the wheel and didn’t have the balls to sue every freckle-faced kid who downloaded tracks.”
If you want to hear what Simmons said then watch the interview in full.