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Netflix, Amazon, and Hulu, among others, are producing shows that will not be on broadcast TV. These shows account for a small percentage of overall TV content, but that percentage is bound to increase.
Will the PRO’s track broadcast of these shows? Are there performance royalties?
As far as I know this is still not completely sorted out from a legal point of view. I`m in Europe and here`s how I`ve been told that it should work:
Just like Spotify and similar services streaming is considered a public performance of a song, and should therefor pay a small amount of performance royalties. Not sure how on earth this would be handled and I don´t know what US Law says about this. But in general laws on copyright and performance rights etc. are pretty much the same all over. The problem is that most countries has a royalty system from another era when internet and streaming didn`t exist, and there are different opinions on wether streaming is a public performance or not.
I know in the UK that composers are receiving royalties for these performances… the only thing is that the rate is about 1 zillionth of the TV rate!
the only thing is that the rate is about 1 zillionth of the TV rate!
Like I said, these things works quite similar to Spotify 🙁
Given the trend to online performing royalties, I would strongly suggest avoiding gratis license deals for backend. Eventually you’ll just end up with nothing except an expensive Tunesat subscription and an angry wife (I know, I’m letting myself get carried away…)
Eventually you’ll just end up with nothing except an expensive Tunesat subscription and an angry wife
Quote of the year so far
Hey, I resemble that remark! 🙂
Under the heading of “congratulations guys, you have royally screwed yourselves”…
This subject was discussed at the PMA meeting that I attended in 2011. The “rate court” or entity that sets the going rate that the PROS must pay is looking at basing online streaming rates on what broadcasters pay in sync fees. Anybody spot the problem????
Right…if you all participate in gratis licensing in the hope of getting backend money, there will eventually be little or no backend money, because there are no sync fees being paid. Performances will likely be similar to Spotify, Pandora or radio performances…pennies, not dollars, per play.
By participating in gratis licensing you are killing the goose to some degree. If and/or when streaming will completely replace broadcast is up for debate.
I think we can conclude that as composers the only solution is to destroy the internet. Where shall we begin lads?
My plan B is going back to busking
I think we can conclude that as composers the only solution is to destroy the internet. Where shall we begin lads?
I`ll unplug the European internetwire this afternoon 😉
Can someone take care of the American side ?
I wouldn’t go jumping off any bridges. As I said, who knows IF, and when, streaming might replace broadcast and cable.
As long as there’s money to be made from broadcast and cable, streaming will be another option…for people who want it.
Demographics play a big part in this. Younger people, who were born attached to mobile devices, will be the primary market for streaming. Older people may be less inclined. There may be differences between urban users and rural users.
Other factors come into play. In the US, the government tries to make sure that everyone has access. For example, when over-the-air broadcast went digital, set-top converters were made available cheaply (or free) for folks who don’t have digital TV’s or cable.
Remember too, that the PROs have a huge stake in this, they along with PMA libraries are fighting to keep per performance royalty levels up.
In a best case scenario, streaming royalties become icing on the cake, a new revenue “stream” so to speak. In a worst case scenario, the paradigm is turned upside down and broadcast royalties become the icing on the cake. In either case, don’t look for an overnight shift.
You also need to keep in mind that library music, in many cases, is not a forever thing. Your cues, as I often say, have a best-when-used-by date. Unless you write fairly ageless cues, there’s sort of a bell curve to the lifespan of most tracks. As such, what you’re writing today stands a good chance of reaching the end of its useful life, by the time (if and when) streaming replaces broadcast/cable.
How might this effect composers? If it takes more and more cues to earn the same amount of money, or less, it is possible that part-time composers will find it harder to justify the time and expense necessary to continue.
As with any industry /job, you need to look past today, and plan for the future. Simply worrying about it won’t help.
_MichaelL
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