Tagged: Spotify

New issue of Music & Copyright with Indonesia country report

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

Spotify agrees to settle US copyright-infringement claims
Spotify is settling a legal claim made by a group of authors that accused the streaming service of reproducing and distributing sound recordings without the necessary license. At the end of 2015, the artist David Lowery filed a class-action copyright lawsuit at the Central District Court of California, claiming $150m in damages because the service had failed to identify or locate the owners of certain compositions for payment that it has distributed, and had not issued a notice of intent to employ a compulsory license. This was followed a month or so later by a second lawsuit filed at the same court by artist Melissa Ferrick claiming the same copyright infringements but with a damages claim of $200m. The settlement will see Spotify create a fund to compensate class members for the service’s past streaming and hosting of tracks. Spotify will also assist class members to determine which of their music works have been streamed by the service and compensate the authors for any ongoing use.

Digital takes the domestic lead for Swedish authors and publishers
Swedish authors’ society STIM has reported record financials, with total collections and distributions to its members topping the previous year’s high. Collections from online and new media services were again the standout revenue source. Although the growth rate has slowed, digital is now the biggest source of domestic royalty receipts for Swedish authors and publishers. The previous leader was broadcasting, and a slight overall slip in collections from radio aided digital’s rise to the top spot. Collections from overseas remained the biggest income source for STIM’s author and publisher members despite last year’s slight dip in foreign earnings. Royalties from festivals and live music concerts reversed two consecutive years of decline and grew sharply. Collections from hotels also registered notable growth, along with music in the workplace.

Brands look to place music at the center of the evolving marketing mix
Brands have been quick to associate themselves with music-oriented social media networks as part of a push to communicate with young audiences. Video social networking platform Musical.ly has emerged as a favorite for a number of brands looking to market their product to younger demographics. Brands are also looking to create retail ambiences based on more tailored playlists. However, there are risks involved in leaning heavily on influencer marketing associated with social platforms. Also, despite the increased brand-associated marketing engagement, music companies and brands need to work harder on using music to get closer, and to provide something more engaging and useful than a mere lifestyle soundtrack.

Indonesia country report
In addition to the usual set of music industry statistics and news briefs, the latest issue of Music & Copyright includes a detailed Indonesia music industry report. For many years, Indonesia has been considered a music market in the midst of development but one that offers great potential. The marketplace for creative content has suffered over the years from widespread piracy, with unauthorized CD albums on sale for a fraction of the price of legitimate copies. More recently, digital piracy has grown in line with internet access. Indonesia is no different than several other Asian territories in that unlicensed content is widely available. But, unlike most other countries in the region, it has made notable progress with regards to protection of intellectual property rights.

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

Music & Copyright is published by Ovum.

Advertisements

New issue of Music & Copyright with Indonesia country report

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

Just how big is recorded music streaming going to be?
In a fairly short space of time, music streaming has become the most important distribution means for the recorded music sector. Earlier this year the IFPI reported that streaming gains were behind the first substantial growth in global trade earnings for almost 20 years. Add to this the fact that all the major labels have confirmed in the last few weeks that streaming was the top recorded music revenue source in the first quarter of this year. We look at the latest developments in the music subscription sector and explains why streaming is now so important for the recorded music industry. It also predicts just how high the total number of paying subscribers could reach by 2020.

Subscription gains fail to offset physical format decline in Japan
The Japanese music trade association, the RIAJ, has reported physical and digital recorded music trade figures for the first three months of this year. Production levels of physical formats suffered a modest decline in the period compared with the same period of 2015. In contrast, total record company earnings from digital sales and services increased year on year in the quarter. However, the rate of growth in digital sales was not sufficient to fully offset the physical format declines. Although record companies in Japan will welcome the rise in digital revenue, physical formats still account for more than 80% of total trade earnings in the country. There is a real fear that any acceleration in the contraction rate of physical format sales could spell a tough few years for the Japanese recorded music sector.

Streaming and manufacturing initiatives set to bolster the vinyl renaissance
Vinyl remains in resurgence as consumers continue to show an appetite for the traditional analog format. But demand is stretching the industry to the limit and established vinyl pressers are struggling to keep pace, hamstrung by antiquated equipment, with record companies relying on old engineering from central Europe to feed the pipeline. There are, however, plenty of signs of innovation on the manufacturing side as fresh blood is drawn to the business. The age-old format might also be in line for an HD upgrade.

Indonesia country report
In addition to the usual set of music industry statistics and news briefs, the latest issue of Music & Copyright includes a detailed Indonesia music industry profile. Indonesia has the third-largest population in Asia after China and India. Like the two leaders, it has for many years been thought of as a music market that offers great potential. But as a marketplace for creative content, it has been badly hit by the widespread availability of pirate recordings, and unauthorized CD albums are on sale throughout the country for a fraction of the price of legitimate copies. More recently, digital piracy has grown in line with Internet access. Indonesia is no different from a number of other Asian territories where music piracy is widespread. However, unlike many countries in the region, Indonesia has made notable improvements on intellectual property rights protection. Mobile personalization is currently the biggest revenue generator for record companies in the country. But several of the international music subscription services have set up shop in Indonesia and there is real hope for the future of recorded music sales. Indonesia’s digital infrastructure is also developing well with smartphone penetration on the rise. Essentially, all of the requirements for further digital growth are firmly in place.

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 US country report

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

Spotify hit by second US copyright infringement lawsuit
Music subscription service Spotify is facing a second class action lawsuit accusing it of reproducing and distributing sound recordings without the necessary license. In December, the artist and rights advocate David Lowery filed a class action copyright lawsuit at the Central District Court of California claiming $150m in damages because the service had failed to identify or locate the owners of certain compositions for payment that it has distributed, and had not issued a notice of intent to employ a compulsory license. Now artist Melissa Ferrick has filed a second class action lawsuit at the same court, and is claiming $200m in damages. Both lawsuits note Spotify’s public acknowledgment that it does not have the correct licenses to distribute certain recordings after it said it had created a reserve fund for royalty payments that had been withheld from artists and that it was investing in the resources and technical expertise to build a comprehensive publishing administration system to solve the licensing problem.

New report details the supporting role of brands in online IP infringement
A new report detailing digital advertising and the scale of advertising-based funding of websites suspected of infringing intellectual property (IP) in the European Union has been published by the European Observatory on Infringements of Intellectual Property Rights (the Observatory). The study monitored a number of different websites that offered a range of content and assessed the extent by which digital advertising supported IP-infringing websites. The study also analyzed the brands and sectors supporting the websites with their advertising and the advertising companies placing the ads. Among a number of conclusions, the Observatory said that, despite brands being able to control how agencies managed their campaigns, suspected IP-infringing websites were found to be a “brand-rich environment” with mainstream advertising accounting for almost half of all the ads collected in the study.

Rightscorp and clients hit with a $450,000 “robo-call” settlement bill
Copyright enforcement company Rightscorp and its two clients BMG Rights Management and Warner Bros. Entertainment have agreed to settle a class action lawsuit which accused them of violating the Telephone Consumer Protection Act (TCPA) by using an automatic telephone dialer and sending pre-recorded calls to the mobile phones of a number of individuals without their prior consent. The calls, made by Rightscorp on behalf of the two companies, were to inform suspected copyright infringers of their actions and to obtain pretrial settlements. In addition to receiving damages, the class action members were absolved of any copyright infringement claims.

US country report
In addition to the usual set of music industry statistics and news briefs, the latest issue of Music & Copyright includes a detailed US music industry profile. The US is the biggest music market in the world. Not only does it account for around one-third of global recorded music sales, the country is home to the largest live music sector in the world and the single biggest live music promoter, Live Nation Entertainment. The US also has two of the biggest authors’ rights organizations, ASCAP and BMI, and has quickly become the world leader in performance rights collections for record companies and performers, despite the fact that the country’s collection agency SoundExchange only collects royalties from digital music services.

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 Netherlands country report

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

Subscriber growth, artist moans, and missing royalties cap an interesting week in streaming
Over the course of just a few days, developments in the music subscription sector have illustrated both the potential for growth for music access services and the problems faced in convincing some in the recorded music industry that their future is in safe hands. First, Apple announced some fairly impressive metrics for its four-month-old Apple Music service, and then came news that Spotify had pulled the catalog of indie label Victory Records from the service because of a dispute over publishing royalties. Claims from copyright administration service Audiam that millions of dollars of authors’ royalties was missing followed, along with a couple more artists complaining that their streaming royalties were unacceptably low.

Aurous teases the RIAA into a restraining order and copyright infringement lawsuit
Unlicensed music streaming service Aurous has quickly found itself in hot water after drawing the ire of the US trade body the RIAA. Three days after launch, the RIAA served Aurous with a copyright infringement lawsuit and gained a temporary restraining order. In the run-up to launch, the service’s creator Andrew Sampson publicly championed the technology behind Aurous, which allows users of the app to stream content via the BitTorrent network. Concerning for music companies is the fact that Aurous’ app does not use any external servers and so is almost impossible to shut down. A hearing at the end of October will determine whether the restraining order remains in place and when the copyright infringement claims will be heard in court.

Music artists and firms look to the blockchain to reform a “broken” system
Blockchain technology, on which leading crypto-currency Bitcoin is built, is being held up by reformers in the music industry as a means of creating a fairer distribution system for content creators. It could bring transparency to rights metadata, instant remuneration to artists, and new forms of monetization to music. The blockchain – as it is often referred to, in the singular – is a nascent technology that not many outside geeky developer circles know about or understand, but which has a huge disruptive potential and which, in recent months, has begun to make its presence felt in the music industry.

Netherlands country report
In addition to the usual set of music industry statistics and news briefs, the latest issue of Music & Copyright includes a detailed Netherlands music industry profile. The Netherlands, like most European music markets, has suffered big falls in recorded music sales in the past decade or so. Download sales went some way to countering losses from falling CD sales but the rate of the demise of the once popular physical music format pulled total trade revenue down. That was until 2013. Although download sales went into reverse for the first time, a big rise in consumer interest in music subscriptions meant trade revenue from recorded music increased for the first time since 2009. Last year, trade income edged down slightly but streaming sales were again positive and hopes are the market will return to growth in 2015. Total authors’ rights increased in 2014 with both performance rights society BUMA and mechanical rights collections by STEMRA rising year-on-year. The live industry experienced a difficult year with ticket sales down on 2013 and the buoyant festival sector is showing signs that it is heading towards the saturation point.

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

Music & Copyright is published by Ovum.

Spotify accounts filed with UK Companies House show decrease in revenues for 2012

spotify_logo-copy1-1According to its latest filing with Companies House in the UK, where it is based, Spotify posted a decrease in revenues, from £96.5 million in 2011, to £92.6 million in 2012. Advertising revenue increased, from £8.1 million to £9.1 million, but sales of subscriptions were down, from £72.5 million to £64.8 million. Losses after tax for 2012 totaled £10.1 million, reversing a £21 million profit in 2011.
Spotify accounts 2012

It is worth noting that the new figures are for Spotify Ltd only – the Spotify Group accounts came out in July and showed the subscription service generated revenues of €434.7 million (US$584 million) last year, up 128.3% from €190.4 million in 2011. Those accounts were filed with the registry of companies in Luxembourg by its holding company, Spotify Technology. Also worth pointing out is that during the first 5 months of 2011, global premium revenue was recognized in Spotify Ltd. But from as from June 2011 the premium service was provided locally and so the revenue was recognized in the local sales subscriptions.

The rate of growth in the wider subscription sector makes the UK figures a little misleading, particularly given the number of markets Spotify is now available in. Although the company hasn’t updated its subscriber numbers since March (6 million paying users and 24 million active users), both those totals will have increased. By how much, we will all have to wait and see.

Music & Copyright
If you like this blog then Music & Copyright might be just what you are looking for. It is a fortnightly research service covering global copyright and legal issues affecting the music industry. It is unrivalled in its coverage of this complex and fascinating area of the music industry. It is also why our extensive client list includes companies and organizations from all sectors of the music industry operating all around the world. But don’t take our word for it, please get in touch and we will send you the latest issue.

Music & Copyright is published by Informa Telecoms & Media.

Streaming and subscriptions have really begun to make their mark

At the end of last month the music industry once again descended on Cannes for the annual institution that is MIDEM. Opinions from the trade floor and the many conferences and panel sessions left visitors in no doubt that there has been a major shift in opinion from across the music industry that streaming and subscription services have really started to take off. Continue reading