Posts Tagged: "Pandora"

When Congress permitted sound recordings to be copyrighted over four decades ago, it didn’t extend that coverage to pre-1972 recordings. This issue, and the piecemeal nature of licensing for digital music on a per-work, per song basis, were part of the impetus for the stakeholders in the music industry to work together to create the Music Modernization Act, signed into law on October 11, 2018… Not all issues in the music industry were solved by the Music Modernization Act: licensing of physical sound recordings (vinyl and CDs) will still occur on a per-work, per song basis. Terrestrial radio pays songwriters and publishers royalties for playing music, but it doesn’t pay performance or sound-recording royalties. And while the goal of one public database is laudable, the responsibility still lies with songwriters and publishers to submit copyright applications and to submit all of their musical works and sound recordings to the MLC… While there is still work to be done, the Music Modernization Act does solve some long-standing issues in the music industry.

Less than 48 hours before the 60th Annual Grammy Awards in New York City, the Copyright Royalty Board (CRB) ruled to increase royalty payments to songwriters and music publishers from music streaming companies by nearly 44 percent, the biggest rate increase granted in CRB history. These rates will go into effect for interactive streaming and limited download services like Amazon, Apple, Google, and Spotify for the years 2018-2022, and will transform how songwriters are paid by these interactive streaming services.

In traditional music recording, artists have had to choose to license their music through major music industry organizations like ASCAP and BMI. In the age of streaming music through Spotify, Pandora and other services what is the purpose of these organizations? The licensing groups have served as clearinghouses for smaller players in the music industry who cannot feasibly deal with multitudes of licensees on their own. But with Taylor Swift and other “major” artists choosing to deal—or not deal—with the streaming services that opens the question about blanket music performance licenses.

A report issued in March of this year found that a full 45 percent of the 119 million people listening to online radio services were tuning into Pandora’s service. Pandora also had the greatest brand awareness, registering with 75 percent of survey respondents. The study also found that 73 percent of people accessing online streaming music services did so through their smartphones. However, in terms of paid subscribers, Pandora has to cede that crown to Spotify, headquartered in Stockholm, Sweden. In late October, the Spotify app became the top grossing app downloaded from the iPhone App Store. Of Spotify’s 60 million streaming music users, 25 percent of those users pay for the premium music subscription, gaining its 15 millionth paid subscriber just as the 2015 calendar year started. As of March 2014, Pandora only had 3.3 million paid subscribers in its total registered user base of 250 million people.