The Politics of Licensing - The Story So Far… Chris Cooke, Co-founder, Managing Director and Business Editor, CMU
•
1 like•213 views
The Story So Far… Setting the scene with the backdrop for the latest copyright legislative developments. Chris Cooke, Co-founder, Managing Director and Business Editor, CMU
Recommended
More Related Content
Similar to The Politics of Licensing - The Story So Far… Chris Cooke, Co-founder, Managing Director and Business Editor, CMU
Similar to The Politics of Licensing - The Story So Far… Chris Cooke, Co-founder, Managing Director and Business Editor, CMU (20)
More from MME 4.5 / Music 4.5 / 2Pears
More from MME 4.5 / Music 4.5 / 2Pears (20)
Recently uploaded
Recently uploaded (20)
The Politics of Licensing - The Story So Far… Chris Cooke, Co-founder, Managing Director and Business Editor, CMU
- 1. CMUinsights.com/cmu453 I N S I G H T S
- 4. CMUinsights.com/cmu453 CMU NEWS & INFORMATION CMU Daily CMU Podcast CMU Digest CMU Trends cmusignup.com CMU EDUCATION PROGRAMMES Online Guides Workshops CMU:DIY x UD CMU:DIY Presents cmudiy.com CMU TRAINING & CONSULTANCY Seminars Masterclasses Research CMU Insights @ TGE cmuinsights.com
- 5. CMUinsights.com/cmu453 The Politics Of Licensing THE STORY SO FAR CMU INSIGHTS @ MUSIC 4.5
- 6. CMUinsights.com/cmu453 RECORDED MUSIC SINCE 2000: THE SHIFT TO STREAMS STREAMS (subscription & ad-funded) CD DOWNLOAD (a la carte)
- 7. CMUinsights.com/cmu453 RECORDED MUSIC SINCE 2000: WE ARE ACTUALLY STILL IN FLUX STREAMS (subscription & ad-funded) CD DOWNLOAD (a la carte) DOWNLOAD STREAMCD GLOBAL RECORDED MUSIC REVENUES IN 2015 - IFPI
- 8. CMUinsights.com/cmu453 RECORDED MUSIC SINCE 2000: BUT CURRENT TREND IS CLEAR STREAMS (subscription & ad-funded) CD DOWNLOAD (a la carte)
- 9. CMUinsights.com/cmu453 THE SHIFT TO STREAMS What does all this mean from a licensing perspective?
- 10. CMUinsights.com/cmu453 THE SHIFT TO STREAMS One: Record labels became licensing companies, and the retailers became licensees
- 11. CMUinsights.com/cmu453 RECORD LABEL controls the sound recording right RECORD SHOP RECORDING RIGHTS PUBLISHING RIGHTS CD LICENSING PUBLISHER controls the mechanical rights in the song LABEL PRESSES CD Exploits own sound recording copyright Licenses use of song copyright PROVIDED TO RETAILER ‘RIGHTS READY’ LICENCE
- 12. CMUinsights.com/cmu453 RECORD LABEL controls the sound recording right DOWNLOAD STORE RECORDING RIGHTS PUBLISHING RIGHTS DOWNLOAD LICENSING PUBLISHER controls the mechanical rights in the song LICENCELICENCE
- 13. CMUinsights.com/cmu453 THE SHIFT TO STREAMS Two: Publishers license the retailer rather than label
- 14. CMUinsights.com/cmu453 THE SHIFT TO STREAMS Three: Digital services were deemed to exploit both mechanical and performing rights
- 15. CMUinsights.com/cmu453 REPRODUCTION RENTAL PERFORMANCE DISTRIBUTION ADAPTATION COMMUNICATION REPRODUCTION OR MECHANICAL RIGHTS PERFORMING OR NEIGHBOURING RIGHTS COPYRIGHT CONTROLS
- 16. CMUinsights.com/cmu453 REPRODUCTION DISTRIBUTION REPRODUCTION OR MECHANICAL RIGHTS CDs exploit just the reproduction rights LICENSING CDs
- 17. CMUinsights.com/cmu453 PERFORMANCE COMMUNICATION PERFORMING OR NEIGHBOURING RIGHTS Radio exploits just the performing rights LICENSING RADIO
- 18. CMUinsights.com/cmu453 REPRODUCTION PERFORMANCE DISTRIBUTION COMMUNICATION REPRODUCTION OR MECHANICAL RIGHTS PERFORMING OR NEIGHBOURING RIGHTS Digital services exploit both… LICENSING DIGITAL
- 19. CMUinsights.com/cmu453 THE SHIFT TO STREAMS Four: Digital platforms wanted multi-territory licences
- 20. CMUinsights.com/cmu453 THE SHIFT TO STREAMS Five: With streaming, a complex licensing model emerged, with key elements shrouded in secrecy
- 21. CMUinsights.com/cmu453 RECORD LABEL Wholesale Price DISTRIBUTOR MECHANICAL RIGHTS CMO Industry Standard or Statutory Rate MUSIC PUBLISHER One or the other depending on country RETAILER RECORDING RIGHTS PUBLISHING RIGHTS ARTIST CD LICENSING
- 22. CMUinsights.com/cmu453 STREAMING SERVICE ARTIST RECORD LABEL Revenue Share Advance Equity RECORDING RIGHTS PUBLISHING RIGHTS PERFORMING RIGHTS CMO MECHANICAL RIGHTS CMO License most services direct SPVs May license Anglo-American repertoire of top five CMOs License rest - usually though not always joint licences Mechanical rights money MAY pass through Publisher Rev Share Minima Advance ? Rev Share Minima Advance ? Performing rights money passes through CMO ?? LABELS’CMO Whichservices? Mechanical rights money passes through Publisher MUSIC PUBLISHER PERFORMERER Whichservices? Fees Minima Guarantee LICENSING OF STREAMING SERVICES
- 23. CMUinsights.com/cmu453 THE SHIFT TO STREAMS Six: With streaming we had a shift to revenue share on a core income stream
- 24. CMUinsights.com/cmu453 RIGHTS OWNER Revenue Share Advance Equity ??? Fees ??? Minima Guarantee THE STREAMING DEAL
- 25. CMUinsights.com/cmu453 THE SHIFT TO STREAMS Seven: Labels, publishers and CMOs had to start processing unprecedented amounts of data
- 26. CMUinsights.com/cmu453 THE DATA CHALLENGE “A good independent label will process something between 30-50 million lines of data a month, a large distributor will process around 300-500 million lines, a major can process a billion lines a day. It could take you two to four hours to process the data. A large YouTube or Spotify file can’t open in Excel, as it doesn’t support a file bigger than 1GB, and a Spotify file can easily be 4.5GB, YouTube could have 4 million lines in a file, but you can’t even open it!” Bruno Guez of music data firm Revelator to CMU
- 27. CMUinsights.com/cmu453 THE SHIFT TO STREAMS Eight: A compulsory licence greatly influenced the American streaming market
- 28. CMUinsights.com/cmu453 SOUNDEXCHANGE LICENCE IMPACTED US STREAMING MARKET
- 29. CMUinsights.com/cmu453 THE SHIFT TO STREAMS Nine: Safe harbour allowed opt-out streaming services arguably distorting the market
- 30. CMUinsights.com/cmu453 SAFE HARBOURS ENABLE OPT-OUT STREAMING SERVICES
- 31. CMUinsights.com/cmu453 THE SHIFT TO STREAMS Ten: The music rights industry became a micro-payments business – where every micro-payment counts and efficient processing is paramount
- 32. CMUinsights.com/cmu453 LICENSING CHALLENGES The continued impact of safe harbours. The continued impact of compulsory licences. The continued shift to a revenue share model. Understanding the core model and transparency issues. Making sure every (fraction of a) penny is collecting. Getting better at processing data and royalties. Are we even offering the right licences yet? The convergence of services licensed in different ways...
- 33. CMUinsights.com/cmu453 CONVERGENCE OF SERVICES Who is aiming to become the “netflix of music radio”? Radio 1, according to Guardian interview with its controller.
- 34. CMUinsights.com/cmu453 CMU DISSECTING THE DIGITAL DOLLAR cmuinsights.com/digitaldollar
- 36. CMUinsights.com/cmu453 I N S I G H T S