Royalties for online/streaming content

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  • #8508 Reply
    composer
    Participant

    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?

    #8530 Reply
    Kenny
    Participant

    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.

    #8532 Reply
    AB
    Guest

    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!

    #8535 Reply
    Kenny
    Participant

    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 🙁

    #8539 Reply
    composer
    Participant

    Many of us have signed tracks with companies that do blanket deals and/or pay no portion of the sync fee to the composer.  Under a deal like this, our only income is PRO royalties.  So, some online placements will result in virtually no income for the composer, but some income for the company that gets the placement.

    I looked at my last couple of BMI statements and the internet royalties are funny… well, kinda funny.

    #8540 Reply
    AB
    Guest

    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…)

    #8541 Reply
    woodsdenis
    Participant

    Eventually you’ll just end up with nothing except an expensive Tunesat subscription and an angry wife 

    Quote of the year so far

    #8542 Reply
    Greg
    Guest

    Hey, I resemble that remark! 🙂

     

     

    #8543 Reply
    MichaelL
    Participant

    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.

    #8544 Reply
    AB
    Guest

    I think we can conclude that as composers the only solution is to destroy the internet. Where shall we begin lads?

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