HAPPY HALLOWEEN! Celebrate with some not so spooky tunes!
HAPPY HALLOWEEN! Celebrate with some not so spooky tunes!
Publishing administration deals with Basement Brazil Editoria Musical and D-Version Music Publishing get songwriters paid when compositions are performed, downloaded, streamed and sold in high-growth regions.
New York, NY – October 30, 2014 – With increasing revenue opportunity of digital music distribution in international markets, TuneCore Music Publishing Administration today announced two new sub-publishing agreements that bring revenue-collection opportunities in Brazil and Greece. The deals with independent publishers Basement Brazil Editoria Musical, Ltda. and D-Version Music Publishing, Ltd. will enable songwriters who use TuneCore Music Publishing Administration to receive royalty payments when their compositions are performed, downloaded, streamed and sold.
The agreements with Basement and D-Version give TuneCore the ability to register songwriters’ compositions with the local societies responsible for local royalty collection. Once a composition is registered, the royalties collected by the society on behalf of the songwriter will be collected and redistributed by TuneCore. Without a publishing administrator, these earned royalties would be virtually impossible for independent songwriters to collect from the local society.
International markets are growing revenue drivers for independent artists, and Brazil and Greece both hold particularly high growth potential. Brazil continues to be a fast-growing music market, as indicated by TuneCore Artist revenues increasing 147% in 2013 vs. 2012.
“As two fiercely-independent companies dedicated to supporting independent artists and songwriters, TuneCore and Basement are a natural fit,” stated John Telfer, Co-Owner, Basement. “We are honored to have been chosen by TuneCore to be their sub-publisher in Brazil and to play an important role in their ongoing mission to help get music out and monetized around the world.”
Greece, which is newly experiencing the digital music revolution, is also poised for marked gains. According to the International Federation of the Phonographic Industry (IFPI), digital music revenues in Greece were 28% of the country’s total music revenues in 2013 and are projected to grow at a rate outpacing that in the US.
“All of us at D-Version are very excited to work with a game-changing company like TuneCore,” commented Denise Andrikopoulou, Owner of D-Version. “As the world of music publishing in the digital distribution era continues its evolution, it’s partnerships like ours that will ensure songwriters from around the world are able to get their hands on their hard-earned royalties.”
[Editors Note: By Kami Knake – founder of Bands Under the Radar music podcast, blog and record label. With over 15 years experience, she currently consults for digital music start-ups and independent artists.]
There’s a lot of buzz these days around music streaming subscription services and how they will impact the music business. It seems like every other week some famous artist is ranting about how much they hate Spotify, the world’s biggest music subscription service, complaining about their low royalty rates. To put it frankly, their vision is short-sighted. Below is my attempt to shed some light on this controversial subject.
There’s billions of dollars to be made in the music streaming market reports MarketWatch. Apple, Google, and Amazon’s recent moves into streaming are expected to provide a revenue boost to labels and create fresh opportunities in the music industry. It’s been a whirlwind year for music streaming with Amazon launching Prime Music in June, Songza being scooped up by Google in July and Apple buying Dr. Dre’s Beats Music for a whopping $3 billion in August.
Further proof that streaming is a big priority, all three major labels have dedicated divisions for curating and promoting music playlists on Spotify: UMG has Digster, Sony has Filtr, WMG has PlaylistMe, and WEA, WMG’s distribution and artists services arm, bought Playlists.net last week.
The strategy is to market music through playlists and ultimately increase their catalog’s Spotify streams. By attracting followers to playlists based on themes and genres, they can then use those playlists to “seed” new tracks as they are released. Think of this kind of marketing as a new form of radio promo where the tastemakers are the playlist curators and where anyone can be a curator. Labels, distributors, artists, celebrities, brands, TV shows, music fans, etc, are all examples of curators on Spotify attracting followers to their playlists.
A song on a curated playlist may be how Spotify users discover you for the first time, but because they can consume your music affordably, some will listen to every song in your catalog allowing them to become a fan of you as an artist, rather than having to cherry-pick which singles to purchase. Many people wouldn’t have taken the opportunity to listen your music in the first place if they had to purchase the music first before getting a chance to hear it. For example, U.S. independent artist Ron Pope added his music catalog to Spotify in 2010 which generated over 57 million plays in a little over 2 years and paid him $334,636 (As of Feb. 2014). Pope was getting millions of streams on Spotify in Sweden most months, and as a result was offered a respectable guarantee to play a festival there. In countries where Spotify is really popular such as Sweden and Norway, hardly anyone is buying music and almost all revenue comes form streaming. This is why some artists can make 5-10 times more money on Spotify in these countries than in the U.S..
Let’s look at the numbers. Spotify has over 40 million users worldwide with 10 million of those users paying a monthly subscription fee. Over 3 million of those paying subscribers are in the U.S. alone. Spotify launched in Sweden and Norway in October of 2008, but didn’t launch in the U.S. in July 2011. The population in Sweden is about 10 million people, Norway is 5.1 million, and in the U.S. about 319 million people! Just imagine the amount of money Spotify and other streaming services will generate for artists and labels once streaming becomes the norm in the U.S. and other highly populated countries around the world. We are talking billions of dollars folks! And Spotify is still a relatively small service when compared to YouTube who have 1B users and iTunes who now have about 800 million accounts. As Spotify and other streaming services continue to grow so will its artist payouts.
To acknowledge the elephant in the room, yes we all know that artists make a lot more money right away when fans purchase mp3s, but think of streaming as a dividend that pays you every time someone listens to your music. You will be surprised how quickly this money adds up as more people become paying subscribers. Everyday we are getting closer and closer to the tipping point where streaming revenue will surpass digital downloads and CD sales. After that happens, the sky’s the limit!
Dutch rapper Mr Probz song ‘Waves’ released late last year has over 2.4 million downloads globally and was streamed a million times a day on Spotify throughout summer. ‘Waves’ received considerable support from club DJs in Europe, but how did it break America, travelling across the Atlantic and straight into the US Spotify top 40 chart by early April? Careful interpretation of data from the months when ‘Waves’ first started to break shows that the ‘lean back’ mechanism of curated playlists (as opposed to the ‘lean forward’ method of search which drove European streams) led to the early success of Mr. Probz in the US. Put simply, the lean-back mechanism of Spotify’s curated playlists carried a big hit in Europe across borders with next to no conventional support in the U.S. for this new artist. By overlaying Spotify streams, Shazam tags and radio plays onto the same chart, what is really telling is that radio is seen to be lagging a full three months behind, and the actual number of its radio spins was barely noticeable.
Music’s shift to an all-you-can-stream model has a hidden perk that could benefit everyone: Data. Spotify, which is available in over 60 countries, has been amassing listening data from its millions of users. The marriage of data and music will have a major impact on the industry as a whole, a process you can already see beginning to unfold. The rise of Lorde, for instance, was fueled in large part by Spotify, whose data team noticed the pop star was trending on the service long before she became an international star. Internally, the company has a team of people dedicated to spotting these types of trends and cultivating the artists behind them. They’re also working with traditional radio stations to help spot regional surges in popularity previously invisible to deejays.
Studies have revealed that piracy rates are down by more than 80% in Norway, which continues to have the highest digital revenue per capita in the world, thanks to the rise of legal alternatives such as Spotify. Australia’s piracy rates dropped 20% in just one year since Spotify launched. Piracy fell by 25% in Sweden between 2009 and 2011. In North America, file sharing now accounts for less than 10% of total daily traffic.
Digital downloads have not been able to make up for the decrease in physical sales over the past 15 years. Spotify’s model aims to regenerate this lost value by producing far more value per listener. According to Russ Crupnick of NPD Group, a respected consultancy, of the U.S. Internet population of 190 million, only 45% buy music of any form. The average annual music spend of this minority is only $55.45. A Spotify Premium customer spends $120 ($10/month x 12 months) per year. A Spotify Premium user delivers more than 2x the amount of revenue to the industry (per year) than the average US music consumer. Spotify’s goal is to convince millions of people around the world to become Premium subscribers and by doing so to re-grow the music industry.
On-demand audio streaming has been factored into the U.S. Billboard charts since 2012. In 2013 Billboard added YouTube streaming enhancing a complex formula for Billboard’s Hot 100, the preeminent singles chart, that now include on-demand audio/video streaming, digital downloads track sales, physical single sales, online radio streaming, and terrestrial radio airplay. Never before have music fans had more of an influence on the chart’s rankings as they do today.
This year the UK added on-demand streams to it’s Top 40 singles chart. 100 streams will be weighted as the equivalent to one download or physical single in the chart compilation process. Each song has to be streamed for 30 seconds to count as one stream. Subscription services which will contribute to the charts include Spotify, Deezer, Napser, O2 Tracks, Xbox Music and Sony Music Unlimited, and rara (powered by Omnifone). Video views on YouTube and Vevo will not county towards the charts.
Spotify users can easily share what they are listening to via their activity feed within the desktop app, via a deep integration with Facebook which all their Facebook friends can see, and via direct messaging other users. When people listen on Spotify it’s social and your fans become promoters just by listening. Spotify also automatically recommends nearby concerts to fans who listen to a lot of your music or follow you, and nearby concerts are shown to users visiting your artist discography page on Spotify.
Spotify automatically generates notifications to your followers whenever you release new music so they never miss any of your releases. Notifications include email alerts, push mobile notifications and recommendations in the activity feed.
Spotify pays 70 percent of “every dollar” that it receives back to its rights holders which is on par with other digital retailers. By “rights holders,” they are referring to the owners of the music that are on Spotify–labels, publishers, distributors, and, through certain digital distributors, independent artists themselves. The royalty rates Spotify pays to rights holders is much higher than many alternative services such as your favorite video outlet, or online and terrestrial radio station. Spotify is paying artists more than 2x the amount that popular video partners are paying out, and they are paying significantly more than online and terrestrial radio stations.
Digital sales decreased for the first time last year. Weekly album sales hit new lows on a regular basis. The public has made their choice, they want access over ownership. For people resistant to change, you will always be able to get your favorite music in some physical form or as a download. As CDs and downloads continue to decline, vinyl sales surge. But to ignore streaming, is choosing to live in the past. New cars or computers don’t even come with CD players anymore! In the words of Bob Lefsetz, “Streaming won. Hell, it won in movies/TV first. We’re never going back to ownership. We’re never going back to windows. So throw your sticks and stones. I don’t care, I’m on the winning side. I’m aware of progress. I can see where I’m going. I’m not an ostrich with my head in the ground.”
TuneCore Artists are releasing tons of new music every day. Each week we check out the new TuneCore releases and choose a few at random to feature on the blog.
Is your hit next?
Hip Hop/ Rap
The C.O.W.L Sessions (Original Soundtrack for The Comic)
Victims of Love
Hip Hop/Rap, R&B/Soul
Line & Circle EP
Line & Circle
Do You (feat. General DV [Alias Kryst])
Hip Hop/Rap, R&B/Soul
[Editors Note: This is a re-posted blog from 2/10/14, originally written by Jacqueline Rosokoff. We’ve made some minor updates, but other than that, enjoy and be sure to visit our Publishing Administration page for more info!]
You put a lot of work into writing songs. And because these compositions form the foundation of your career, you want to make sure they’re being treated properly. A Publishing Administrator will represent your compositions and make sure you get all of the royalties owed to you from the use of your music around the world. By getting a publishing deal with TuneCore, you’ll get a top notch team on your side, fighting on your behalf and giving you opportunities to maximize your songwriter royalty collection.
Here’s how we’ll do it…
1. We collect all of your songwriter royalties from all over the world.
When your compositions are downloaded, streamed and used in other ways around the world, you generate worldwide royalties. And just because your song was streamed by a fan in Estonia doesn’t mean you shouldn’t receive each penny you’re owed. We’ll register your compositions with the societies and digital stores in over 60 countries and collect royalties for all revenue types relating to your compositions.
2. It’s easy as pie.
Royalty collection shouldn’t cause headaches. It’s an easy online sign-up process to get started working with TuneCore for publishing. We’ve also built the system so you can add as many compositions as you’d like, as often as you’d like, through your account. Plus, you can check on the registration status of your compositions and submit multiple new splits at the same time, once again, all through your TuneCore account.
3. A low price and fair terms.
Songwriters deserve a fair deal when it comes to music publishing, no question about that. With our publishing service, songwriters pay a one-time setup fee of only $75. You can add compositions at any point, at no extra cost. Also important to note, we charge a low commission of only 10% of the royalties we collect for you (or 20% of secured licensing placements pitched by our Creative team).
Plus, you don’t have to worry about getting stuck in a multi-year agreement. We know things change, and we’ve built our agreement to be year-to-year.
4. Your compositions, your rights.
You wrote the music, so there’s no reason why you shouldn’t have all of your rights. If you’re a TuneCore Music Publishing customer, you’ll maintain 100% ownerships of your copyrights.
5. We’ve got proof you’re owed songwriter royalties.
If you work with TuneCore for both publishing and distribution, you’ve got a big advantage: a built-in audit trail. Because we can see exactly how many times your music was downloaded and streamed, and exactly where these uses occurred, our Publishing Administration team knows exactly how much you’re owed, and they can prove it to the entities around the world who have your songwriter royalties. There’s no fooling us.
6. Maximize your earnings from your music.
One more reason to partner with TuneCore for both distribution and publishing: all of your distribution sales revenue and publishing royalty information will go into one place, your TuneCore account, making it easier to manage your business. And don’t forget, when you distribute your music so fans can download and stream it around the world, you’re generating more publishing royalties, which means you’re maximizing your earning potential.
7. Be part of the Sync & Master Licensing Database.
Synchronization Licensing can be an incredibly lucrative revenue stream for a songwriter. Because of this, we want to give all TuneCore songwriters the opportunity to have their compositions considered for use in film, TV, commercials and more. We’ve created the Sync & Master Licensing Database, available exclusively to Music Supervisors so they can search for music for their projects. Our in-house licensing and creative team also actively pitches compositions to industry tastemakers to get your music more exposure. If a Music Supervisor wants to use your music, our Creative team will negotiate all rights and fees on your behalf to make sure your composition is licensed legally, and at the most favorable terms. We’ve got your back.
8. Make money from your music on YouTube.
You earn money every time people use your composition in their YouTube videos and people watch videos of your music on your own YouTube channel. And if you’re a TuneCore Music Publishing customer, we’ll get you the royalties your composition generates. That’s because a YouTube video is a synchronization use, and that’s covered in a TuneCore publishing deal.
9. We work with Performing Rights Organizations, no conflict here.
Songwriters often ask us if being affiliated with a Performing Rights Organization (PRO) causes a conflict with our publishing service. The answer? Nope! It’s important to have both a PRO and a Publishing Administrator working on your behalf. We work together with SESAC, ASCAP, BMI, etc. to get you all of the songwriter royalties you’re owed.
10. We’ve got experience on our side.
You want a publishing administration you can trust. One that knows how the industry works, and how to make sure you get all that you’re owed. Our team has over 100 years of combined experience representing and servicing songwriters’ compositions worldwide. If you work with us, you can be sure we’re doing all we can to fight on your behalf.
Hope you’re enjoying CMJ 2014! (We sure are.) Even if you’re unable to make it this year, enjoy our round-up of videos from TuneCore Artists in attendance, gigging their hearts out around New York City all week! Most of these artists can also be found at the TuneCore-sponsored event, The Wild Honey Pie’s “Beehive” on October 25th.