Tag Archives for " SiriusXM "
Here’s the Music Industry News Roundup for the week of December 16th, 2016. There are a lot of interesting news items again this week (more than usual for so late in the Holiday season), so let’s get right into it.
Global music grew by a billion dollars in 2016. That’s a big deal because it was at $15 bil last year, and this year it’s at around $16 billion – a significant upswing. The big question – how much will actually trickle down to artists and songwriters?
Almost every country except Japan saw some growth. Japan is still tied to physical product by both customs and laws, so it hasn’t really experienced digital music yet. Good news for the rest of the world though.
Pandora is now open to selling to SiriusXM. This might be good for Pandora, but not so much for Sirius. Does Sirius even care? Do you?
Apple should by both Sirius and Pandora. This Barron’s article makes a case for it. I can see the Sirius part, but not Pandora, since Apple Music is doing just fine without it. Subscription required.
The music industry is asking president-elect Trump to get tough with pirates and YouTube. No idea how this will go down, but it’s worth a try.
YouTube is about to pay a lot of back royalties to publishers. Not only that, it provides more protection and opportunities to make more money. Too little too late?
YouTube still has a lot of unclaimed royalties. Although the above deal might take care of most of that. Can some of it be yours?
Elton John is both for and against YouTube. The superstar rails against the platform for inadequate copyright protection, then turns around and signs an exclusive deal with it. Talk about mixed messages.
Fashwave is the new music of the alt-right. Fash stands for “fascism” and the music is Synthwave, mostly out of Sweden. The artist’s music is co-opted and they have nothing to do with the movement, but what’s happened to it is pretty creepy.
This app makes all songs into Christmas songs. Can’t get enough Christmas carols? Then this might be for you.
Radio has forgotten about Millennials. It figured that it lost them to downloads 10 years ago and hasn’t worried about them since. Since like an opportunity lost.
The high-powered Irving Azoff is suing a large radio association. He’s trying to get more money for artists from radio play, but after 2 years there’s been no movement.
That’s the Music News Roundup of what went on in the music industry last week. Let’s see what next week brings.
Low royalty rates are something that concerns every artist, label, songwriter and publisher. The good news is that they’re gradually rising, and since there are more paying subscribers to streaming services every year, the revenue pie is also getting larger. This may take an even better turn if the proposed new rate increase that SoundExchange wants from SiriusXM comes to pass.
To be clear, SoundExchange is a government body that collects revenue for artists from non-interactive (meaning they play like a radio) services like Pandora, satellite radio, cable TV’s Music Choice, and Muzak background music that you hear in retail stores everywhere. Every 5 years the Copyright Royalty Board (CRB) sets a new rate that these platforms must pay content owners and creators for streams on their ad-supported tiers.
Last year, the CRB increased the royalty rate for Pandora a slight bit from $.0014 per stream on its free ad-supported tier, to $.0017. SoundExchange asked for $.0025, but part of that may have been a strategy of bidding high to get a better rate in the end.
For SiriusXM, SoundExchange has proposed a rate starting in 2018 that is the greater of either 23% of the platform’s total revenue or a per subscriber rate starting at $ 2.48 per subscriber per month in 2018, with small annual increases until the agreement ends in 2022. Sirius XM currently pays just 10.5% of its “Gross Revenues” 2016 and 11% in 2017.
For Music Choice and Muzak, SoundExchange has proposed a per subscriber per month rate starting at $ 0.019 per subscriber per month with annual increases. The current rate for Music Choice’s and Muzak’s cable/satellite TV music services is 8.5% of Gross Revenues in both 2016 and 2017.
As you can see, SoundExchange likes to reach for the stars when it comes to proposed rates. Even though these seem reasonable for everyone involved in the music business, effectively doubling a rate does put any distributor in an immediate financial hole that some might find difficult to climb out of. That’s why we can expect higher royalty rates from SiriusXM, Music and Music Choice once the CRB rules, but they’ll probably not be as high as SoundExchange has proposed.
Here’s the music industry news roundup from the week of October 7th, 2016. There’s a little less on streaming this week for the first time in a while, but still lots to cover. Let’s get to it.
Music supervisors don’t think they’re hurting songwriters. I wrote about this last week and now a music sup responds. The bottom line is that if you change your music to please people you’re really compromising your art.
Americana music is being kept alive by the Brits. Is this the same thing that happened with Blues in the 1960’s happening all over again?
Spotify is launching in Japan, but it might not be successful. It’s a different music culture over there, and digital music still hasn’t caught on.
iHeart is looking for the casual music fan. It’s new streaming service is trying to stay out of the way of Spotify and Apple Music.
Streaming revenue is increasing for labels, but not so much for artists and songwriters. So what else is new? History repeats itself again.
Shazam is making a lot of money, but not from music. It’s the image and sound recognition technology that advertisers pay big bucks for.
Piracy isn’t new; we’ve been stealing music for a long time. Although this article outlines more recent instances, I can remember Rupert Perry telling me that EMI felt it was losing as much as 20% of its sales way back in the days of the reel-to-reel tape recorder.
It just might make sense for Spotify to purchase SoundCloud. Mostly because it gives new artists a way onto the platform without using an aggregator.
SiriusXM launches a talk show about music. It’s called Volume and has been dubbed “Sports talk for music.” I’ve waited a long time for this.
EDM is trying to expand to Asia. The genre is slowing elsewhere in the world, but Asia is still a big open market that promoters are keen to develop.
That’s the News Roundup of what went on in the music industry last week. Let’s see what next week brings.