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Licensing Audio Services –
Collectivisation and Fragmentation
Music 4.5, 4 October 2018
Music Publishing Licensors for Radio
Services
Music Publishing Licensors for
Interactive Audio Services
(Sony / ATV / EMI)
(via DEAL / SACEM)
(via PEDL / PRS)
(BMG)
(Kobalt)
…. And many
more….
The Interactive Audio Services Market
– IFPI Digital Music Report 2011
• 3 Downloads
• 7digital
• AmazonMP3
• Babelgum
• Beatport
• Bleep
• Boomkat
• Breakbeat.co.uk
• BT Vision
• Classical.com
• Classical Archives
• Classics Online
• Coolroom
• Deezer
• DJ Download
• eMusic
• Fairsharemusic
• Historic Recordings
• HMV Digital
• iLike
• Indie Mobile
• Indmill
• iTunes
• Jamster
• Joost
• Juno
• last.fm
• Mewbox (Android)
• mFlow
• MTV
• Music Anywhere
• Music For Life (Talk Talk)
• MusicStation
• Music Unlimited
powered by Qriocity
• Musicovery
• Muzu.tv
• MySpace
• Napster
• Naxos Music Library
• Nectar Music Store
• Ooizit
• Orange Music Store
• Orange Monkey
• Ovi Comes With Music
• Ovi Music Store
• Partymob
• Passionato
• Play Digital
• Recordstore
• Spotify
• Tesco Downloads
• Textatrack UK
• The Classical Shop
• T-Mobile UK
• Track It Down
• Traxsource
• TuneTribe
• Tunited
• Vidzone (PS3 only)
• Virgin Media Music
• Vodafone
• We7
• Yahoo Music
• YouTube
• Zune
The Interactive Audio Services Market
– IFPI Digital Music Report 2011
• 3 Downloads
• 7digital
• AmazonMP3
• Babelgum
• Beatport
• Bleep
• Boomkat
• Breakbeat.co.uk
• BT Vision
• Classical.com
• Classical Archives
• Classics Online
• Coolroom
• Deezer
• DJ Download
• eMusic
• Fairsharemusic
• Historic Recordings
• HMV Digital
• iLike
• Indie Mobile
• Indmill
• iTunes
• Jamster
• Joost
• Juno
• last.fm
• Mewbox (Android)
• mFlow
• MTV
• Music Anywhere
• Music For Life (Talk Talk)
• MusicStation
• Music Unlimited
powered by Qriocity
• Musicovery
• Muzu.tv
• MySpace
• Napster
• Naxos Music Library
• Nectar Music Store
• Ooizit
• Orange Music Store
• Orange Monkey
• Ovi Comes With Music
• Ovi Music Store
• Partymob
• Passionato
• Play Digital
• Recordstore
• Spotify
• Tesco Downloads
• Textatrack UK
• The Classical Shop
• T-Mobile UK
• Track It Down
• Traxsource
• TuneTribe
• Tunited
• Vidzone (PS3 only)
• Virgin Media Music
• Vodafone
• We7
• Yahoo Music
• YouTube
• Zune
The Interactive Audio Services Market
– Number of Paying Subscribers on the
Big Players
Month Apple Music Spotify
June 2017 28 million 57 million
July 2017 - 60 million
September 2017 30 million 65 million
January 2018 - 70 million
February 2018 38 million 71 million
April 2018 40 million -
June 2018 42 million 83 million
Source: Statista.com and Apple and Spotify public announcements
What are the services going to do with
all that power?
• Daniel Ek, Spotify: "The long-term success metrics for
this platform is growing the number of creators on our
platform, growing the number of creators using our
promotion, marketing and career-management tools,
and the number of artists and labels paying us to use
those tools and services."
• Hiring TV executives (e.g. Dawn Ostroff)
• Direct deals with artists
• Enabling direct uploads
• Use of “fake artists”
Complexity of Licensing Deals
• Advance
• Revenue share
• Minima per subscriber
• Minima per stream
• Discounts for array of bundles and subscriber
types
Controls on the licensing process? –
Comparison to Collecting Societies
• Complaints and alternative dispute resolution
procedures
• Transparency Obligations
– Per rightholder
– Per rights type
– In aggregate
• Good faith negotiation
• Provide necessary information
• Obligation to offer standard licences to all similar
persons
• Fees subject to a court or tribunal
Peter Mason: Collectivisation or fragmentation and fair negotiations?

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Peter Mason: Collectivisation or fragmentation and fair negotiations?

  • 1. Licensing Audio Services – Collectivisation and Fragmentation Music 4.5, 4 October 2018
  • 2. Music Publishing Licensors for Radio Services
  • 3. Music Publishing Licensors for Interactive Audio Services (Sony / ATV / EMI) (via DEAL / SACEM) (via PEDL / PRS) (BMG) (Kobalt) …. And many more….
  • 4. The Interactive Audio Services Market – IFPI Digital Music Report 2011 • 3 Downloads • 7digital • AmazonMP3 • Babelgum • Beatport • Bleep • Boomkat • Breakbeat.co.uk • BT Vision • Classical.com • Classical Archives • Classics Online • Coolroom • Deezer • DJ Download • eMusic • Fairsharemusic • Historic Recordings • HMV Digital • iLike • Indie Mobile • Indmill • iTunes • Jamster • Joost • Juno • last.fm • Mewbox (Android) • mFlow • MTV • Music Anywhere • Music For Life (Talk Talk) • MusicStation • Music Unlimited powered by Qriocity • Musicovery • Muzu.tv • MySpace • Napster • Naxos Music Library • Nectar Music Store • Ooizit • Orange Music Store • Orange Monkey • Ovi Comes With Music • Ovi Music Store • Partymob • Passionato • Play Digital • Recordstore • Spotify • Tesco Downloads • Textatrack UK • The Classical Shop • T-Mobile UK • Track It Down • Traxsource • TuneTribe • Tunited • Vidzone (PS3 only) • Virgin Media Music • Vodafone • We7 • Yahoo Music • YouTube • Zune
  • 5. The Interactive Audio Services Market – IFPI Digital Music Report 2011 • 3 Downloads • 7digital • AmazonMP3 • Babelgum • Beatport • Bleep • Boomkat • Breakbeat.co.uk • BT Vision • Classical.com • Classical Archives • Classics Online • Coolroom • Deezer • DJ Download • eMusic • Fairsharemusic • Historic Recordings • HMV Digital • iLike • Indie Mobile • Indmill • iTunes • Jamster • Joost • Juno • last.fm • Mewbox (Android) • mFlow • MTV • Music Anywhere • Music For Life (Talk Talk) • MusicStation • Music Unlimited powered by Qriocity • Musicovery • Muzu.tv • MySpace • Napster • Naxos Music Library • Nectar Music Store • Ooizit • Orange Music Store • Orange Monkey • Ovi Comes With Music • Ovi Music Store • Partymob • Passionato • Play Digital • Recordstore • Spotify • Tesco Downloads • Textatrack UK • The Classical Shop • T-Mobile UK • Track It Down • Traxsource • TuneTribe • Tunited • Vidzone (PS3 only) • Virgin Media Music • Vodafone • We7 • Yahoo Music • YouTube • Zune
  • 6. The Interactive Audio Services Market – Number of Paying Subscribers on the Big Players Month Apple Music Spotify June 2017 28 million 57 million July 2017 - 60 million September 2017 30 million 65 million January 2018 - 70 million February 2018 38 million 71 million April 2018 40 million - June 2018 42 million 83 million Source: Statista.com and Apple and Spotify public announcements
  • 7. What are the services going to do with all that power? • Daniel Ek, Spotify: "The long-term success metrics for this platform is growing the number of creators on our platform, growing the number of creators using our promotion, marketing and career-management tools, and the number of artists and labels paying us to use those tools and services." • Hiring TV executives (e.g. Dawn Ostroff) • Direct deals with artists • Enabling direct uploads • Use of “fake artists”
  • 8. Complexity of Licensing Deals • Advance • Revenue share • Minima per subscriber • Minima per stream • Discounts for array of bundles and subscriber types
  • 9. Controls on the licensing process? – Comparison to Collecting Societies • Complaints and alternative dispute resolution procedures • Transparency Obligations – Per rightholder – Per rights type – In aggregate • Good faith negotiation • Provide necessary information • Obligation to offer standard licences to all similar persons • Fees subject to a court or tribunal