Direct Licensing and the Music Industry: How Technology, by Ivan L. Pitt

By Ivan L. Pitt

​This e-book discusses the economics of the song within the context of the altering panorama caused by means of innovation, technological switch, and speedy digitization. the facility of electronic know-how to minimize the transaction expenses of song copyright licensing has all yet destroyed the normal media company types of incumbent functionality Rights enterprises (PROs), track publishers, checklist labels, and radio and tv stations. In a weather the place streaming companies are quickly proliferating and shoppers desire subscription versions over direct possession, new company types, equivalent to direct licensing, are constructing. This booklet offers an summary of the economics of the conventional track undefined, the technology-induced alterations in enterprise types and copyright legislation, and the function of publishers, copyright holders and songwriters within the rising direct licensing version. partly One, the writer examines the commercial features of direct licensing as a substitute to the conventional blanket license for copyrighted musical compositions, with an emphasis at the frequently monopolistic nature of professionals. partially , the writer makes a speciality of the track writer and the function direct licensing and festival may perhaps play within the altering company versions within the song and the aptitude merits this can convey to copyright holders, equivalent to songwriters. to go with this version, the writer proposes a greatest statutory fixed-rate for musical performances to additional streamline the royalty method, specially the place vendors equivalent to Google and YouTube are involved. This e-book provides to the growing to be physique of literature at the economics of song licensing within the electronic age. it is going to be precious to these within the fields of economics and legislations, in addition to song executives, musicians, songwriters, composers, and different pros who're attracted to figuring out how expertise, innovation and festival have reshaped the track industry.​

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For example, under Billboard’s chart ranking formula—1,500 song streams from services like Spotify, Beats Music, Rdio, Rhapsody, and Google Play will now be the equivalent to a single album sale, and ten downloads of individual tracks will equal one album. 23 23 See also Christman (2014), Blacc (2014), and Sisario (2014a,b). Billboard 200 Makeover: Album Chart to Incorporate Streams & Track Sales: http://www. com/articles/columns/chart-beat/6320099/billboard-200-makeover-streams-digitaltracks, November 19, 2014.

Furthermore, streaming once favored the major labels and their mainstream recording artists whose popularity enabled them to generate substantial royalties from a large audience when their musical compositions were publicly performed or distributed on streaming services such as iTunes, Pandora, and Spotify. com/AdReaction/2014. riaa. pdf. a RIAA recorded music data only. 5 billion in 2011. aspx. com/press/entry/563077. ID=803803. 1 How to Divide the Spoils of Music 9 10 1 Introduction sales from physical records.

For example, a customer may be enticed to switch with a check for $200 dollars, but may only make $100 in long distance calls in a given time period. The same manner in which value companies were managed—as growth companies—would be used for CLECs as well that served mostly rural areas without the population density that would support private investment in fiber optic technology. 1 McKinsey and Company McDonald (2013) placed the blame for AT&T’s metaphorical death at the hands of the McKinsey consultancy for its faulty research.

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