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Publishing CEO: There Are Over 900,000 Distinct Royalty Payments For Artists And Songwriters

Publishing CEO: There Are Over 900,000 Distinct Royalty Payments For Artists And Songwriters

(Image source: http://www.wired.co.uk/news/archive/2015-06/09/kobalt-buys-amra/viewgallery/345146)

Davydkovo (Image source: http://www.wired.co.uk/news/archive/2015-06/09/kobalt-buys-amra/viewgallery/345146)

This was written by Kobalt Music CEO, Willard Ahdritz.

Why should music, which is beloved by people in every culture, across every language and corner of the globe, be anything less than an economic powerhouse?  Today, live ticket sales have hit an all-time high.  Music publishing values and revenues have increased.  Tech companies are investing in music by the billions.  And, perhaps most importantly, more people have legitimate access and choice, in both platforms and music, than ever before.  And for music creators, one global hit can unlock millions of revenue streams from billions of transactions and micro-payments that add up to more demand and music usage than ever before.

We are so close to the golden age of music.  But we’re not there yet.

While technology has improved consumers’ access to music, the music industry has not embraced technology to improve royalty tracking, collections and payment to the songwriters creating the music itself.

Yesterday’s antiquated infrastructure, which much of the industry still employs, was not built to handle the enormous volume and complexity of data that digital music requires today. 

And with the meteoric growth of streaming platforms, devices and emerging markets, the challenge of managing rights and collecting royalties from around the world is only intensifying.

One hit song today can generate up to 900,000 distinct royalty payments, and just one of those could be from Spotify in the U.S., for billions of individual streams, that then have to be accounted for and paid out to each of the song’s different writers.

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The Devaluation of Music: It’s Worse Than You Think

(Image source: https://lifewouldbflat.files.wordpress.com/2012/09/music-industry1.jpg?w=600)

The Devaluation of Music: It’s Worse Than You Think

http://ifcus.org/map/ In their many (justified) laments about the trajectory of their profession in the digital age, songwriters and musicians regularly assert that music has been “devalued.” Over the years they’ve pointed at two outstanding culprits. First, it was music piracy and the futility of “competing with free.” More recently the focus has been on the seemingly miniscule payments songs generate when they’re streamed on services such as Spotify or Apple Music.

These are serious issues, and many agree that the industry and lawmakers have a lot of work to do. But at least there is dialogue and progress being made toward new models for rights and royalties in the new music economy.

Starving artists have been affected by more than just piracy and streaming royalties

Less obvious are a number of other forces and trends that have devalued music in a more pernicious way than the problems of hyper-supply and inter-industry jockeying. And by music I don’t mean the popular song formats that one sees on awards shows and hears on commercial radio. I mean music the sonic art form — imaginative, conceptual composition and improvisation rooted in harmonic and rhythmic ideas. In other words, music as it was defined and regarded four or five decades ago, when art music (incompletely but generally called “classical” and “jazz”) had a seat at the table.

When I hear songwriters of radio hits decry their tiny checks from Spotify, I think of today’s jazz prodigies who won’t have a shot at even a fraction of the old guard’s popular success. They can’t even imagine working in a music environment that might lead them to household name status of the Miles Davis or John Coltrane variety. They are struggling against forces at the very nexus of commerce, culture and education that have conspired to make music less meaningful to the public at large. Here are some of the most problematic issues musicians are facing in the industry’s current landscape. read more

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