KENNEALLY: In the music industry, the calls for transparency come from many angles. Musicians want transparency in accounting and royalty distribution. Indie labels want more information about negotiations with streaming services and others. Songwriters, too, worry about the lack of transparency in direct deals made between publishers and platforms.
For the Future of Music Policy Summit, David moderated the panel Whose Transparency Is It, Anyway? And he joins me now on Beyond the Book. Welcome to the program, David Herlihy.
How are musicians and songwriters compensated when their music is played on the radio, sold on digital platforms, webcast or streamed on interactive services?
We know it’s difficult to keep things straight, especially when: (a) compositions and sound recordings are treated differently in the licensing process, even if the songwriter and performer are the same person; (b) there are usually multiple rightsholders; and (c) the processes by which music is licensed and the money flows back to creators varies by platform/service.
How are musicians and songwriters compensated when their music is played on the radio, sold on digital platforms, webcast or streamed on interactive services? Click through any of the infographics below to see how the money flows for on US-based sales, performances and streams.
The information in this infographic is subject to change based on ongoing litigation, business model development and federal policymaking. FMC does its best to keep up with these changes and update the infographics accordingly. read more
Casey Rae is the deputy director of the Future of Music Coalition, and an independent musician/producer. I asked him about whether indie musicians have the ability to build an audience that matched their ability to distribute digitally.
“We have tremendous access to audiences, but as musicians we might not have leverage in the new marketplace that’s comparable to the folks who always had leverage in the marketplace,” Rae said.
In 2007, I was invited to McGill University to guest lecture at a cross-disciplinary class taught by producer Sandy Pearlman. Since the graduate students had been tasked with designing a workable new music-related business model for their final project, I decided to put together a presentation that focused on the back end of the music business model: if and how performers, songwriters and labels were each compensated when their music was either streamed or downloaded. read more
Revenue streams, access to markets, and how musicians, labels and songwriters are compensated
Wednesday, April 15, 2015
How are recording artists paid when their fans buy downloads on iTunes? How are songwriters paid when their music is played on Pandora? Since our founding, Future of Music Coalition has provided musicians, managers and labels with the in-the-trenches details about how performers, songwriters and labels are each compensated when their music is either streamed or downloaded on an array of music services. read more
Here at FMC, we’re all about helping artists get a leg up on their careers. But with so many aspects of the music biz in flux, it’s tough to know where to start. Our friends at SoundExchange — the nonprofit that collects and distributes digital performance royalties to artists and labels — have come up with a handy checklist will help you on your way.
A very inspiring organization, the Future of Music Coalition, have released a series of videos that explore new music industry models. The significance of these models is that they take into account how artists need to be compensated, but recognize the need to be relevant in culture. Of all of them, the subscription-based models stick out the most to me. Music consumers are no longer in the mindset of paying for music on a ?per unit? basis. Instead, we have come to expect to get our music for free, immediately, and involve little effort. A subscription service could possibly function within a culture like ours because it mostly matches this criteria. Subscription services, like Rhapsody, ?feel free? because it is an all you can eat buffet ? a once per month, small fee. In turn, a subscription offers the same flexibility and feel of free downloading.