At FMC we’re all about artists getting paid for the use of their work, particulary when the music is used by large, publicly traded companies. But if the labels are so keen to make sure that performing artists (or their heirs) are being properly compensated, there’s a better way to do it.
There’s been a lot of back-and-forth regarding a recent court ruling that maintains the current royalty rates paid by Internet radio company Pandora to ASCAP, a 100 year-old performing rights organization (PRO) that collects money for AM/FM and Internet radio play then distributes that revenue to songwriters and publishers.
In the coming days, we hope to offer varying viewpoints from individuals and groups in this ecosystem. For now, we’ll try to demystify this decision and the licensing frameworks that informed it.
The Internet Radio Rate Wars continued this week, as performing rights organziation (PRO) ASCAP squared off against Internet radio giant Pandora in a federal court. The outcome could determine how royalty rates are set for PROs, webcasters, songwriters and publishers well into the future.
20.7 million Americans (8.8% of all US adults) attended a classical music performance in 2012, according to the National Endowment for the Arts’ recent survey highlights. 19 million (8.1%) attended a jazz gig. But if these millions of classical & jazz fans tried to use any of the most popular digital music services to access classical or jazz music at home, they’d likely end up confused and unable to find what they’re looking for. read more
For consumers, iTunes Radio may feel a lot like another version of the popular “predictive” radio service Pandora. Plug in an artist or genre, and an algorithm spits out sonically related tracks. But while the experience for listeners may be similar up to a point, the revenue flow behind the scenes isn’t an exact match.
In order to break down how money gets from iTunes Radio to the artists, it’s first important to remember that every song has two copyrights: one for the underlying composition (think notes and lyrics on paper), and one for the sound recording (think music on CD, tape or hard drive).
[…]But all of Pandora’s lobbying in support for the bill has antagonized musicians, and lawmakers. If it’s not careful, industry insiders said, Pandora could end up jeopardizing their business. read more
Over the past ten years, internet and digital radio has evolved into a robust and viable business.
Services like Pandora, Sirius XM, Clear Channel’s IHeartRadio and Slacker are leading the way in delivering radio-like services to millions of music fans every day, and paying millions of dollars in digital performance royalties to rightsholders, performers and songwriters. read more