New issue of Music & Copyright with Finland country report

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

WMG makes recorded-music market share gains, while indies extend publishing lead
Music & Copyright’s annual survey of the recorded-music and music-publishing sectors has revealed the changes in global market share for the three major music groups and the independent sector. For the second consecutive year, recorded-music leader UMG lost market share, while smaller major WMG closed the gap on second-placed SME. Increased granularity of published music company data meant for the first time the annual survey contained market share figures for music streaming. Sony remained the leader in terms of corporate control of music publishing, though its share has fallen for two straight years. Little change in share for second-placed UMPG meant the company narrowed the gap with Sony. The collective shares of the independent publishing sector registered the biggest publishing share increase, with leading indies BMG and Kobalt both making market share gains.

Domestic collection growth for SENA, but lower US income hits overall total
SENA, the Dutch collection society representing performers and producers (record companies), has reported a fall in total licensing income for 2016. Although domestic receipts were up year on year, lower income from the US meant international collections were down sharply. Similarly, total domestic invoiced licensing revenue registered growth, but overseas invoiced revenue fell. Distributions in the Netherlands and abroad were also down last year. General licensing was the biggest collection source for SENA members, ahead of broadcasting. SENA noted in its annual report that a joint-venture service center created with the authors’ society BUMA began dealing with its individual and collective licensing agreements from the beginning of last year. The aim of the venture is to create efficiency savings for the two societies.

ECJ backs Stichting Brein in media player copyright case
The European Court of Justice (ECJ) has sided with the Dutch antipiracy group Stichting Brein in a case concerning the sale of a multimedia player that enables copyright-protected audiovisual content to be viewed for free. The defendant in the case is an online retailer of a multimedia player that contained open source software that enabled video files to be played through an interface. The court decided that the multimedia player enabled a communication to the public of audiovisual content as described in the 2001 European Copyright Directive and so breached European law. The court also ruled that temporary acts of reproduction as carried out by the multimedia player of a copyright-protected work obtained by streaming on a website belonging to a third party was not exempt from legislation covering the right of reproduction.

Finland country report
In addition to the usual set of music industry statistics and news briefs, the latest issue of Music & Copyright includes a detailed Finland music industry report. Finland is just outside of the global top 20 in terms of trade revenue from recorded music. But, despite its small size, the country is a market leader with regards to progress in the digital transition from ownership to access. Subscription services already account for around two-thirds of recorded-music trade earnings in the country, and this share is expected to rise further as the previous reliance on physical formats slips away and sales of downloads disappear. UMG took the top spot in market share terms last year, replacing WMG, which had been the leader for several years. Royalty earnings were positive, with collections from music use maintaining a well-established growth trend. The country’s live sector also registered a good year despite attendance at festivals suffering from poor weather conditions.

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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.

German recorded music sector on track for another year of growth
Figures published by the German music trade body Bundesverband Musikindustrie (BVMI) show that total consumer spending on recorded music was up 3.6% in the first half of this year compared with the same six-month period in 2015. A big jump in music subscriptions was behind the overall rise, with the increase in consumer spending on paid audio on-demand services fully offsetting all other format declines. The continued revival of the vinyl LP also boosted total retail sales. Despite the fall in spending on CD albums, the format still accounted for the majority of music retail sales. However, the boom in streaming sales pushed Germany ever closer to the digital tipping point.

Second consecutive year of decline for Polish royalty collections
Polish authors’ society ZAiKS has reported its financial statements for 2015. Although collections in the year were down compared with 2014, they were still the third highest in the authors’ society history. Total distributions were also one of the highest on record, while the administration rate remained virtually unchanged year-on-year. Broadcasting remained the biggest income source for ZAiKS. However, most of the main sources of broadcast income were down, resulting in an overall broadcast collection decline. The only real domestic bright spots for ZAiKS came from a small rise in collections from background music, public performance, and neighboring rights. Internet collections fell sharply along with private copying remuneration.

SIAE reports positive year for Italian live entertainment in 2015
The Italian live events sector experienced a positive 2015 according to new figures published by the Italian authors’ society SIAE. Following on from a fairly flat 2014, total box office receipts in 2015 registered a healthy rise, with concerts generating the biggest gains and a return to growth after a decline in 2014. Attendance reversed the previous year’s dip and increased in 2015, although the rate of growth was lower than box office spending and audience turnover. In addition to concerts, box office receipts from cinemas also experienced a reversal of fortune and registered an increase, cementing the cinema sector as the Italian entertainment industry’s biggest sector. Dance was the only sector to suffer a decline in box office receipts.

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 recorded music industry is currently suffering due to the ongoing transitions from physical to digital and ownership to access. Consumer interest in streaming is maintaining overall growth in digital trade earnings, but falling sales of both downloads and CD albums have pulled down overall record company earnings. There is, however, some hope that this year will see a return to growth, with midyear trade revenue up year-on-year. French authors’ society SACEM registered a positive 12 months with collections increasing after a slight year-on-year decline in 2014. France’s live music industry is highly competitive with national and international promoters battling to represent big names. However, the last 12 months have been particularly difficult for the sector following a number of terrorist attacks.

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

Music & Copyright is published by Ovum.

WMG makes biggest recorded music market share gains of 2015; indies cement publishing lead

The annual survey by Ovum publication Music & Copyright of the recorded music and music publishing sectors has revealed changes in global market share for the three major music groups and the independent sector. Recorded music leader UMG lost market share in 2015, but WMG, the smallest of the three majors, made the biggest gains. SME experienced a slight increase in its share. Sony/ATV remained the leader in terms of corporate publishing control, despite its share edging down. UMPG was the only major publisher to increase its market share. However, the collective share of the independent publishing sector registered the biggest share rise, with leading indies BMG and Kobalt making impressive gains.

Modest movement in record company market shares
Following a couple of years of consolidation, restructuring, and company selloffs in both the recorded music and music publishing sectors after the breakup of EMI Music Group, last year could be described as much more stable for market share. The sale of EMI’s record and publishing divisions impacted the market share figures for the major music groups in 2014, but with both sectors more settled, market share changes in 2015 were modest.

UMG maintains recorded music lead
According to Music & Copyright, UMG had a 33.5% share of combined physical and digital recorded music trade revenue last year, down from 34.1% in 2014. For physical revenue only, UMG’s share stood at 31.6%, Its digital share stood at 35.6%.

Record companies, physical and digital revenue market shares, 2013–15 (%)
Recorded shares 2015
Source: Music & Copyright

SME was the second-largest music company, with a virtually unchanged combined physical/digital market share of 22.6% in 2015. SME’s physical and digital market shares edged up last year compared with 2014. The smallest of the three majors, WMG, experienced the biggest share gains of the majors. The company’s share of revenue from physical recorded music sales stood at 16.3% in 2015, up from 15.7% in 2014. For digital, its share gain was marginally lower, rising to 18.2% from 17.7%. WMG’s combined physical/digital share grew, to 17.1%, from 16.7%.

The independent record companies’ share of combined physical/digital revenue rose last year, to 26.8%, from 26.7% in 2014. The sector increased its share of physical revenue but its digital share edged down. The independents’ share of physical formats remained higher than its digital share.

No change in major publisher rankings
Sony/ATV held its lead last year despite a market share decrease. The company accounted for 28.3% of global publishing revenue, down from 29.5% in 2014. Sony/ATV took the top spot in 2013 following the purchase of EMI Music Publishing by a Sony-led consortium in 2012. Although Sony/ATV and EMI MP are still separate companies (with EMI MP repertoire administered by Sony/ATV), Music & Copyright has combined the companies’ shares.

Music publishing companies, revenue market shares, 2013–15 (%)
Source: Music & Copyright

UMPG was the second-largest music publisher last year with a 23.1% share. Of the three major publishers, UMPG was the only one to register a share increase. Third-placed Warner Chappell’s share edged down in 2015, to 12.4%.

Independent companies extend their lead
Independent music publishers have long dominated music publishing and compete well with the majors for major artists’ attention. Last year, the independent music publishing sector experienced an increase in share. Music & Copyright estimates that independent companies accounted for 36.2% of publishing revenue, compared with 35% in 2014.

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 Australia country report

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

Sony/ATV and Pandora sign second direct licensing deal
Music publisher Sony/ATV has signed a direct licensing deal with online radio service Pandora. Described by both companies as a “win-win,” the deal will see increased performance royalty rates payable by the digital music service to the publisher, while Pandora will benefit from greater rate certainty and the ability to add new flexibility to its product offering over time. The deal is the second direct agreement between the two: The first was signed in 2013 after Sony/ATV withdrew certain digital licensing rights licensing from the US performance rights organizations ASCAP and BMI. However, that deal was declared invalid by a rate court judge, who ruled that authors organizations’ partial withdrawals of licensing rights was not allowed under the consent decree and that blanket licenses offered by ASCAP and BMI music include all repertoire.

Report on Spotify’s revenue-neutral status raises more questions than it answers
A new report published by the European Commission’s Joint Research Centre has examined how the rise of music subscription service Spotify has affected sales of downloads and the popularity of unlicensed online music distribution. The report found that the use of Spotify does impact on download sales and goes some way to displacing music piracy. However, the report notes that losses from displaced sales are roughly outweighed by the gains in streaming revenue, meaning that Spotify is effectively revenue-neutral for the recorded music industry. Although the report’s conclusions are limited, given that Spotify was the only service used to measure the wider impact of streaming, it raises questions over the wider distribution of streaming revenue to the different rights holder groups and why, if streaming is revenue-neutral, are so many artists unhappy with their royalty payments.

Rightscorp and the high costs of copyright enforcement
US-based copyright enforcement company Rightscorp keeps making headlines, mostly for the wrong reasons. The firm may be able to count a handful of leading music publishers on its roster but it has yet to demonstrate that it can make its anti-piracy system work for its bottom line. In addition, Rightscorp has come under fire for alleged harassment of those it considers to be copyright infringers and is fighting a number of lawsuits. It is also in dispute with leading US ISPs Cox Communication and Comcast, the kinds of companies it needs to have on it is side if it is to be a commercial success. In short, Rightscorp seems to be having difficulties making friends right now.

Australia country report
In addition to the usual set of music industry statistics and news briefs, the latest issue of Music & Copyright includes a detailed Australia music industry profile. The Australian recorded music industry has endured a long period of falling sales. Although consumer interest in music subscriptions is strong, spending on music access services has not been able to offset declines elsewhere. The country looked to have turned the corner in 2012 with record company income from digital sales fully countering the drop in CD album sales. However, trade revenue contracted in 2013 and 2014 and prospects for future growth are not so good. In contrast to the recorded music sector, Australia’s live music industry has registered two years of rising ticket sales and attendance. Authors’ society APRA AMCOS is also experiencing its best years, with strong gains in digital income boosting total collections to record levels.

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

Music & Copyright is published by Ovum.