SoundCloud May Have New Equity Deals, YouTube Red Merging with Google Play, SESAC Strikes U.S. Radio Deal
Posted by Glen Sears | July 31, 2017 9:25 am | No Comments
SoundCloud Nears Deal To Sell Majority Stake To Private Equity Firms. A pair of private equity firms are reportedly close to each taking a separate stake in the unprofitable music streamer that would collectively mean the acquisition of a majority of the company.
YouTube Red And Google Play Music To Merge, Says Lyor Cohen. Cohen didn’t talk timescale or details, but Google has issued its own statement to The Verge confirming that the plans are afoot, following its decision to combine the two services’ teams in February this year.
SESAC Strikes Landmark US Radio Deal. The private US-based licensing organization has reached a new deal with the Radio Music License Committee, which the PRO claims will result in substantially larger rates for its clients that ASCAP’s equivalent agreement.
Pandora Shuts Down In Australia And New Zealand After 5 Years. “We’re honored to have connected so many listeners with the music they love these past few years. Thank you for your loyalty and the opportunity to serve you.”
Facebook Takes Another Big Step Towards The Music Biz With Source3 Buyout. The move is being looked on in many quarters as evidence that Facebook wants to shore up the ability of its Rights Manager platform in order to catch copyright infringing videos on its platform.
ASCAP, BMI Are Building A Joint Song Database. The database, which will be publicly available initially via ASCAP’s and BMI’s websites, will feature aggregated information from both repertories.
ASCAP-BMI Song Database Plan Rollout Questioned. Some industry executives said the nearly two-year-long effort to create a single database is a step in the right direction, but others are disappointed that it omits key data and for now excludes SESAC and Global Music Rights.
PBS CEO Warns Federal Cuts Will Mean ‘A Number’ of Stations Will Shut Down. Many of those stations are in rural and underserved areas, she said, with residents who either don’t have access to cable or satellite or can’t afford it and who rely on over-the-air broadcasting.
Posted by Glen Sears | January 9, 2017 9:47 am | No Comments
Top Story This Week
SoundCloud ‘May Run Out Of Cash This Year’ As It Posts $54M Loss
SoundCloud’s losses grew faster than its revenues in 2015 – with the company now admitting that, should its subscription service flop, its funding may run dry this year, according to a new filing at Companies House (UK).
“The assumption of a successful launch of the new subscription service is the key element of [our] financial projections for the next three years… [This] bears financial risks regarding the operating results and cash flows of the group. The occurrence of these risks can seriously affect the ability of the group to generate sufficient cash to cover the planned expenditures and could require the Group to raise additional funds which have not yet been agreed.”
Other Music News Highlights
SoundCloud Responds To Cash Crunch Claims. In a statement, Soundcloud told journalists: “We are on a very positive path to achieving our aim of enabling all creators to be paid for their work, while also building a financially sustainable platform where our connected community of creators, listeners and curators can continue to thrive.”
Blackstone to Acquire Music Rights Organization SESAC. Financial terms of the deal have not been disclosed, but this marks Blackstone’s first step in a new strategy to hold onto private investments longer than most equity firms, a point highlighted by SESAC CEO John Josephson in the announcement.
Was Blackstone’s SESAC Acquisition a $1 Billion Deal? Ed Christman looks at the tea leaves in the Blackstone/SESAC acquisition that “might well be $1 billion deal,” including company financials and Wall Street reports.
BMI Files Action Against RMLC Over Royalty Rate Proposal. “The RMLC can point to no changed circumstances that warrant a reduction in BMI’s interim or final rate,” the BMI filing states. “BMI believes that the market developments will support a final rate of greater than 1.7 percent of gross revenue payable to BMI.”
BMG Responds To Appeal In Cox Communications Dispute. “Cox claims that BMG’s notices are ‘littered with flaws’, but Cox was able to identify errors in a tiny handful of the 1.8 million BMG notices at issue — the evidence showed that Rightscorp’s system was ‘well over 99%’ accurate.”
SiriusXM Ends 2016 With More Than 31 Million Subscribers. The company also said that it expects to meet or exceed its 2016 guidance for revenue, adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), as well as free cash flow when it reports its full financials next month.
All Three Major Labels, Pandora and RIAA Announce Support for Hi-Res Audio Streaming. The announcement came during, and from, the 50th Consumer Electronics Show in Las Vegas where the DEG sponsored a hi-res “Audio Pavilion.” The exhibition manifested its “Stream the Studio” message with a fully-equipped world-class recording facility filled with hi-res devices and showcasing a series of live demo sessions with award-winning engineers.
Our best wishes for a great week! – MediaNet
Posted by Glen Sears | July 28, 2015 8:24 am | No Comments
Performing rights organizations, or PROs, are societies responsible for collecting income on behalf of songwriters and music publishers when a song is publicly broadcast. This includes live covers, radio plays, television plays, internet radio services like Pandora, streaming services like Spotify, restaurants or bars, nightclubs, and any other public performance. All these users pay the associated PRO a fee, which the PROs then pay to their registered songwriters.
For a comparison of performing rights organizations, click here.
Given the different processes in digital music, PROs have different distribution schedules. Many times payments will be remitted as much as two quarters following the performance. We’ve taken the liberty of combining all 3 U.S. PRO payment schedules here:
ASCAP, an organization owned and run by its members, is the leading U.S. Performing Rights Organization representing over 540,000 songwriters, composers and music publishers.
|2015 DATES||TYPE||PERFORMANCE PERIOD|
|April 6, 2015||Domestic Writers||July, August & September 2014 (3Q14)|
|May 11, 2015||International Distribution|
|June 19, 2015||Domestic Publishers||October, November & December 2014 (4Q14)|
|July 6, 2015||Domestic Writers||October, November & December 2014 (4Q14)|
|August 10, 2015||International Distribution|
|September 18, 2015||Domestic Publishers||January, February & March 2015 (1Q15)|
|October 5, 2015||Domestic Writers||January, February & March 2015 (1Q15)|
|November 9, 2015||International Distribution|
|December 18, 2015||Domestic Publishers||April, May & June 2015 (2Q15)|
BMI is the bridge between songwriters and the businesses and organizations that want to play their music publicly. As a global leader in music rights management, BMI serves as an advocate for the value of music, representing more than 8.5 million musical works created and owned by more than 650,000 songwriters, composers and music publishers.
|PERFORMANCES BETWEEN||ENTERED BY||PAYMENT|
|October 1, 2013 – March 31, 2014||June 30, 2014||September 2014|
|January 1, 2014 – June 30, 2014||September 30, 2014||January 2015|
|April 1, 2014 – September 30, 2014||December 21, 2014||March 2015|
|July 1, 2014 – December 31, 2014||March 31, 2015||June 2015|
|October 1, 2014 – March 31, 2015||June 30, 2015||September 2015|
SESAC currently licenses the public performances of more than 400,000 songs on behalf of its 30,000 affiliated songwriters, composers and music publishers.
Domestic Royalty Payments
|PERFORMANCES OCCURRING BETWEEN||ARE DISTRIBUTED ON OR AROUND|
|January 1 – March 31 (Qtr 1)||June 30|
|April 1- June 30 (Qtr 2)||September 30|
|July 1 – September 30 (Qtr 3)||December 31|
|October 1 – December 31 (Qtr 4)||March 31 (next year)|
Foreign Royalty Payments
|ROYALTIES RECEIVED FROM FOREIGN||ARE DISTRIBUTED ON OR AROUND|
|January 1 – March 31||September 30|
|April 1- June 30||December 31|
|July 1 – September 30||March 31 (next year)|
|October 1 – December 31||June 30 (next year)|
Monthly Radio Royalty Payments
Have more questions about managing your musical rights and payments? Email us here!
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