Category: Collection societies

New issue of Music & Copyright with Mexico country report

The latest issue of Music & Copyright is now available for subscribers to download. Here are some of the highlights.

European Parliament adopts MEP Julia Reda’s copyright report
The European Parliament has voted by a large majority to adopt MEP Julia Reda’s report on the EU Copyright Directive 2001/29/EC. The report addressed provisions in the copyright directive that its author said had not been able to keep step with the increase of online cross-border cultural exchange. It called for an urgent review of copyright legislation and for a harmonization of copyright across Europe. Following the vote, a number organizations welcomed the Parliament’s backing of a fair balance between the rights and interests of creators and consumers, but their differences on what the vote represented and what course of action the EU should now take suggests a difficult few months ahead before the European Commission presents its specific copyright reform proposals.

Positive first six months of 2015 for recorded music sales in Germany
Figures published by the German music trade body Bundesverband Musikindustrie (BVMI) show total consumer spending on recorded music grew 4.4% in the first six months of this year compared with the same period of 2014. A big jump in music subscriptions was the main reason for the growth, but the continued revival of the vinyl LP and an unexpected rise in sales of album downloads also boosted overall sales. Despite a decline in spending on CD albums, the format still accounted for the majority of music retail sales. The boom in streaming sales meant combined spending on music subscriptions and advertising income from streaming services accounted for almost 13% of total sales.

ZAiKS bemoans low digital gains as collections edge down in 2014
Polish authors’ society ZAiKS has reported its financial statements for 2014. At a press conference, ZAiKS’ vice president Marek Hojda and CEO Piotr Wąsaty said total collections were down slightly compared with 2013, but were still the second highest in the society’s history. Moreover, the administration rate was down, to 16.4%, from 17.1%. Broadcasting was the biggest income source for ZAiKS. However, despite an increase in public service TV income, a decrease in public service radio and commercial TV collections meant overall broadcasting income was down. A big jump in cinema collections boosted public performance earnings but the ongoing shift to digital from physical recorded music formats meant mechanical collections for ZAiKS continued to fall.

Mexico country report
In addition to the usual set of music industry statistics and news briefs, the latest issue of Music & Copyright includes a detailed Mexico music industry profile. Mexico is Latin America’s second largest recorded music market and the region’s biggest live market. Although record company income from the sale of recorded music is suffering from the steady transition away from physical formats and, more recently, digital downloads, rising interest in streaming offers more than just a glimmer of hope for a return to trade revenue growth. SME maintained its lead as the biggest record company in Mexico, although a rise in share for second-placed UMG has closed the gap on the leader. Mexico’s biggest events company, Interamericana de Entretenimiento, suffered a fall in live music income in 2014. However, this year has started well for the promoter with revenue growth and a big jump in net income.

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Music & Copyright is published by Ovum.

New issue of Music & Copyright with Russia country report

The latest issue of Music & Copyright is now available for subscribers to download. Here are some of the highlights.

Pressure shifts to Pandora as SiriusXM agrees pre-1972 deal
US satellite radio service SiriusXM has agreed on a settlement with the three major record companies and ABKCO Music & Records over the use of music fixed in copyright before February 15, 1972 (pre-1972 sound recordings). The settlement followed a California district court ruling in October that the broadcaster should pay royalties on the disputed recordings. The issue of royalties payable on the pre-1972 works has already seen a number of legal cases heard in several district courts in the US. Two members of the 1960s band the Turtles, Howard Kaylan and Mark Volman, who later became known as Flo & Eddie, have led the charge against the non-payment of royalties by SiriusXM and online radio service Pandora. Although SiriusXM is still battling against Kaylan and Volman despite legal defeats in New York and California, the broadcaster has decided to settle with the record companies rather than appeal the California court’s interpretation of the state’s copyright law, which means that the online radio service Pandora is now under the pre-1972 sound recordings spotlight.

SGAE membership approves accounts for 2013 and 2014
Spanish authors’ society SGAE has published its annual accounts for 2013 and 2014 after approval from its membership at the June annual general meeting. SGAE has experienced a turbulent last few years with arrests of senior executives for misappropriation of funds followed by antitrust investigations over high tariffs for live performance and broadcast fees. The collection society still has a long way to go to repair the damage caused, but SGAE said in June that total revenue grew last year compared with 2013 despite the difficult trading conditions which affected some of the main income sources. Digital collections registered good growth and mechanicals benefitted from the big rise in sales of CD albums.

Music TV still plays the world’s global juke box
Music TV has come a long way since the early days of MTV, with music videos having made the leap from being pure promotional collateral to premium content able to pay its own way. YouTube and Vevo have essentially replaced broadcast music television in the living room with on-demand tracks across multiple devices. But while large players dominate the space, there is still room for innovation, especially on the live music side of the business where brands are also eyeing the opportunity.

Russia country report
In addition to the usual set of music industry statistics and news briefs, the latest issue of Music & Copyright includes a detailed Russia music industry profile. For more than a decade, the two major music industry sectors, recorded and live, experienced very different fortunes in Russia. Recorded music sales suffered under the weight of piracy and the live sector went from strength to strength. However, in the last couple of years, the situation has turned on its head with recorded music on the up and live music suffering a decline. Rising digital sales have boosted record company earnings and there is real hope that the country may be just about to start delivering on its potential. In contrast, Russia’s live sector has been hit by a devaluation in the ruble and souring relations with the West over Ukraine that have forced the country’s economy into a deep and subsequently damaging recession.

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Music & Copyright is published by Ovum.

New issue of Music & Copyright with France country report

The latest issue of Music & Copyright is now available for subscribers to download. Here are some of the highlights.

EC green-lights GEMA, PRS, and STIM pan-European online music licensing hub
The European Commission has given its approval to a joint online music-licensing venture between the three European collection societies GEMA, PRS for Music, and STIM. In January, the EC began an-depth investigation to determine if the venture was in line with European Union regulations on mergers. The investigation was launched after a preliminary investigation suggested that the combination of music repertoires currently controlled by the three collection societies could result in higher prices and worsened commercial conditions for digital service providers in the European Economic Area. In a joint statement, GEMA, PRS for Music, and STIM said the new hub will transform pan-European music licensing by enabling ease of access for digital music services to music rights as well as provide faster and more accurate payments of royalties to writers and their music publishers.

Both BUMA and STEMRA report collection growth in 2014
Dutch authors’ societies BUMA and STEMRA have reported a third consecutive year of growth in joint collections after three consecutive annual falls. Combined income for the two collection societies increased 5.3% last year, with gains reported in both performance and mechanical rights. Strong growth in streaming in the Netherlands resulted in an almost doubling of digital collections for BUMA. However, streaming remains a tiny source of revenue for authors and publishers in the country.

US Copyright Office opens up the debate on the future of orphan works
The US Copyright Office (USCO) has begun a new review of how best to deal with orphan works and mass digitization under the country’s copyright law. Earlier this year, the USCO asked for comments from stakeholders and held a number of public roundtables in Washington D.C. The culmination of viewpoints, as well as an analysis of issues impacting orphan works and mass digitization efforts along with a series of recommendations, has been published in a new report. The USCO has requested written comments on its recommendations be submitted by early August.

After the indie and Swift storm, Apple Music is all set to deliver the music streaming tipping point
Apple’s foray into music streaming has been a long time coming but Apple Music is set to hit the ground running. However, those who expected cool Apple to innovate in the streaming space need to “think different” as the company has designed a service which is pretty much a grab bag of features already out in the market. While that may be a disappointment for some, it is not necessarily a bad move. All Apple needs to do is provide a good, dependable music streaming service akin to Spotify’s and its marketing clout and the huge global penetration rate of its consumer electronics devices should ensure that becomes market leader. However, Apple Music is not about to wipe out the competition and the service’s launch will serve to lift most streamers’ boats.

France country report
In addition to the usual set of music industry statistics and news briefs, the latest issue of Music & Copyright includes a detailed France music industry profile. The French music industry experienced a contracted 2014 with recorded music sales and royalty collections both suffering a decline after a positive 2013. Despite the rise in music subscription and streaming revenue, continued falls in CD album and music download sales dragged down overall recorded music trade income. French authors’ society SACEM also suffered a reversal of fortune with the ongoing decrease in mechanicals overshadowing digital and broadcasting gains. France’s live music industry is highly competitive with national and international promoters battling for big name representation. High fees charged by leading artists make it difficult for promoters to return a profit and the increased concentration on bigger shows and festivals is causing a real headache for the country’s smaller events.

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Music & Copyright is published by Ovum.

New issue of Music & Copyright with Germany country report

The latest issue of Music & Copyright is now available for subscribers to download. Here are some of the highlights.

PWC charts the recorded music gloom and live music boom
PricewaterhouseCoopers (PwC) has published its annual assessment and forecasts for the recorded music and live music industry sectors. The figures make healthy reading for those involved in the live sector, but, despite the forecast rise of digital, the steady fall in sales of CD albums will mean total recorded music sales will continue to shrink for the next five years at least. Overall, combined revenue from live and recorded music will grow annually in the five years up to and including 2019, edging ever closer to the magical $50bn mark.

Collections return to growth for JASRAC in 2014
Japanese authors’ society JASRAC has reported a return to growth for royalty collections in the 12 months to the end of March 2015, after a decline in the previous 12-month period. Despite a fall in both mechanicals and overseas revenue, the rise in domestic performance income, most notably from live performance, boosted overall collections. Broadcasting remained the biggest single source of earnings for Japanese authors. Digital collections edged up in line with the total increase in digital-music sales in Japan last year.

Digital and broadcasting gains boost STIM revenue to record high
Swedish authors’ society STIM has reported another record financial year with total collections and distributions to its members topping the previous records set in 2013. Digital collections were again the star performer with income from digital music services accounting for the second biggest share of domestic income sources. A better year for advertising in Sweden boosted commercial broadcast collections. However, royalties from festivals and live music concerts suffered a big drop after a sharp rise in 2013.

SFX Entertainment and the need to curb its EDM ambitions
SFX Entertainment has had a short and eventful life. The electronic dance music (EDM) specialist is only three years old but, not short on ambition, it has adopted an acquisitions-led growth strategy that has turned it into a $350m-a-year company. But rapid expansion has come at a cost and SFX has yet to turn a profit. For the company’s striving CEO, that does not seem to pose much of a problem. But SFX is listed on the NASDAQ exchange, its stock price has suffered, and its strategy has been heavily criticized. Now the company, which only launched its IPO at the tail-end of 2013, is looking to de-list and get out of the spotlight. But it is not clear that SFX will fare any differently as a private company if it does not change its high-growth tack. Moreover, it may not survive as a stand-alone entity.

Germany country report
In addition to the usual set of music industry statistics and news briefs, the latest issue of Music & Copyright includes a detailed Germany music industry profile. Retail sales of recorded-music in Germany increased for the second consecutive year in 2014. German trade association BVMI reported a 1.8% rise in consumer spending on recorded music compared with 2013. Revenue from subscriptions and streaming fully offset the falls in spending on music downloads and CD album sales. However, despite the digital transition gathering pace, physical formats still account for more than two-thirds of consumer spending. In line with recorded music spending, authors’ society GEMA also reported a second consecutive year of collection growth. Despite difficult market conditions, GEMA said collections were positive for almost all of its business sectors with digital experiencing the highest growth. Germany’s live industry, the biggest in Europe, is in good shape with new festival launches heightening an already competitive sector.

If you want to know more about Music & Copyright then follow the below links.

Music & Copyright is published by Ovum.

New issue of Music & Copyright with UK country report

The latest issue of Music & Copyright is now available for subscribers to download. Here are some of the highlights.

BMI wins the latest royalty battle in the ongoing rate dispute with Pandora
A New York rate court has decided that US online radio service Pandora must pay BMI, the performing rights organization (PRO), 2.5% of revenue for the use of authors’ and music publishers’ content. In making its decision, the US District Court for the Southern District of New York decided that the rate proposed by BMI was reasonable, despite being at the low end of what BMI had hoped for. However, the rate is still higher that the 1.85% rate Pandora pays to ASCAP. That rate was affirmed by the US Second Circuit Court of Appeals in April after ASCAP had appealed a 2014 rate court decision. Previously, Pandora had paid BMI 1.75% of revenue and so, with the online radio service expected to generate around $1bn in revenue this year, the increased royalty payment to BMI could be as high as $75m. Pandora, which ended March with 79.2 million users, has said it will appeal the New York rate court decision.

Public performance gains return Czech authors’ society OSA to growth in 2014
Czech authors’ society OSA has reported a return to growth in royalty collections in 2014 after a slight dip in 2013. Despite a fall in broadcasting income and earnings from abroad, record collections from both public performance and digital boosted the authors’ society’s revenue to a new high. A good year for OSA also included a fall in costs and a subsequent decrease in costs as a share of collections, as well as a rise in distributions to its members.

Growth for all the major music groups in 1Q15
With UMG the last of the three major music companies to publish financial details for the first three months of 2015, a comparison of their respective performances reveals all of the companies posted year-on-year growth. Previous year-on-year comparisons of the three companies’ recorded music and music publishing sectors have been distorted by company acquisitions and sell-offs, and exchange rate fluctuations. However, with most dealings completed more than a year ago, the only major influencing factor in first quarter comparisons was exchange rates. Factoring in fluctuating current rates suggests that all three majors have got off to a good start in 2015. There are, however, still nagging doubts as to whether 2015 will be the year that the recorded music sector as a whole posts positive gains, and whether music publishing can register another year of growth.

On the Radar: BackBeat Solutions
A new “on the radar” section in Music & Copyright begins with a look at BackBeat Solutions, a company that provides pre-packaged deal management, royalties accounting, multi-platform publishing, and content services. It has a client portfolio in Europe and the US comprising tier-two music labels and music publishers. Founder Chris Chambers’ long association with the music licensing area has helped it secure projects for BMG Chrysalis, Fintage House, and Imagem Music Publishing.

UK country report
In addition to the usual set of music industry statistics and news briefs, the latest issue of Music & Copyright includes a detailed UK music industry profile. Optimism about a return to longer-term recorded music growth in the UK was quickly extinguished with the publication of last year’s trade results. Three straight years of decline ended in 2013 with a rise in trade revenue. However, recorded music sales slipped back again in 2014 with the rising income from streaming services unable to match the drop in downloads and CD album sales. The UK may well register growth again this year though as streaming increases in popularity. Royalty collections matched the recorded music decline last year with PRS for Music registering its first rights contraction since 2010. A rise in broadcast, digital, and public performance collections could not fully offset the fall in overseas income and mechanicals. The live sector remains strong, although research suggests small venues are under considerable pressure, both financially and regulatory.

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Music & Copyright is published by Ovum.

New issue of Music & Copyright with China country report

The latest issue of Music & Copyright is now available for subscribers to download. Here are some of the highlights.

European Commission sets out its 16-point plan for the Digital Single Market
The European Commission has published details of how it intends to create a Digital Single Market in the region. The new plan sets out a number of targeted actions to be delivered by the end of 2016. The plan is separated into three specific areas aimed at providing better access for consumers and businesses to digital goods and services across Europe, creating the right conditions for digital networks and services to flourish, and maximizing the growth potential of the digital economy. Of particular interest to the music industry are the Commission’s plans to end geoblocking and its legislative proposals for a new copyright law aimed at reducing the differences between national copyright regimes. Continue reading

New issue of Music & Copyright with global market share details

The latest issue of Music & Copyright is now available for subscribers to download. Here are some of the highlights.

Recorded music market share gains for WMG in 2014, Sony/ATV is the publishing leader
The annual survey by Ovum publication Music & Copyright of the recorded music and music publishing sectors has revealed changes in global market shares of the three major music groups. Recorded music leader UMG lost market share in 2014, mainly as a result of the sale of the Parlophone Label Group (PLG) to WMG in 2013, which formed part of EMI Recorded Music acquisition requirements. UMG’s loss was WMG’s gain and the smallest of the three majors narrowed the gap on second-placed SME. Sony/ATV held its lead in music publishing, but the collective share of the independent publishing sector was the highest overall. Continue reading