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The role of CMOs in the digital and live music markets

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Digitalisation of Caribbean music workshop, The role of CMOs in the digital and live music markets

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The role of CMOs in the digital and live music markets

  1. 1. Barbados Beach Club February 21 & 22, 2018 Erica K. Smith & Dr. Wendy Hollingsworth © 2018 CONCEPTUALISATION INC. E: conceptualisation@consultant.com The Role of CMOs in the Digital and Live Music Markets Michael Battiston MeBattiston Consulting Services
  2. 2. Why CMOs? • Music is someone’s intellectual property, i.e., someone owns the ‘copyright’ – permission is required to use it • Copyright owners offer licenses to those who wish to use or acquire music, in exchange for a fee • For help with this, copyright owners usually affiliate with a local collecting society • Music users (i.e., broadcasters, digital service providers, businesses) obtain licenses from a local collecting society • Why do both copyright owners and music users turn to collecting societies?
  3. 3. Collective Administration Benefits Copyright Owners Owner Society User User User User User User A copyright owner can make its music available to all music users who want it.
  4. 4. Collective Administration Benefits Music Users Owner Society User Owner Owner Owner Owner Owner A music user can get permission to use music from all copyright owners.
  5. 5. Owner Society Owner Owner Owner Owner Owner User User User User User User Collective Administration Model
  6. 6. PROs Administer Rights of Copyright Owners, Not Performing Artists Performing Artists Performing Right Organization ‘Neighboring’ Right Organization Where this happens to be the same, both organizations will pay royalties Authors are: Songwriters Composers Lyricists Arrangers
  7. 7. Blanket License – Use All the Music You Want!
  8. 8. Process Disruption Due to Online Commerce • For online transmission of music, counting usages is relatively easy • Copyright owners unhappy about lack of transparency in the blanket licensing process • Disruption has led to massive changes in licensing, reporting, and payment flows
  9. 9. A Departure from Tradition Traditional ‘Blanket’ License
  10. 10. The Traditional Model $ Song Registrations Song Database Song Usages Usages Database Matches? Royalty Statement
  11. 11. The Digital Model € DDEX CCID Song Registrations Song Database High Volume Usage Reports Usage Database Matches? Claim + Invoice
  12. 12. The Digital Era and the Need for Identifiers • Volumes were lower in the past: • Writers and publishers • Work registrations • Recordings • Performances and sales • Matching and identifying were done using simple algorithms or entirely manually • Exponential volume growth has forced a radical change in approach
  13. 13. The Interested Party Identifier (IPI)
  14. 14. YouTube- ISNIs
  15. 15. Minimum Data Set Required for an ISWC • Work Title • All authors (not publishers!) identified by role code and IPI Name Number • Version Type

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