Making Your Own Music-Digital Downloads Parts Two
Audio streaming. Now let's talk about audio streaming on demand. These are what is considered interactive streams, which is what ever the listener wants to hear. The specific term is called a subscription service. Here are some examples. Napster, Rhapsody, Yahoo and MusicNet. Publishers feel that with interactive streams when making your own music, there is more royalties and monies involved. The streaming services had a much different opinion. The two sides battled for years and finally came up with an agreement. What happens was the streamers paid advances to the publishers, and therefore are recouped from the royalties. This idea was for the two sides to keep negotiating. Then a royalty rate of streaming was settled and the publishers would get royalties from the starting point of contractual agreements. Well, this was not the final stage. The Copyright Royalty Board had to decide on the streaming rate. A royalty was set and it is the percentage of the subscription fee and ad revenues. The issue is the publishers do not share these royalties with the songwriters. This is because there is no way to compute the royalties and don't know which songs earn back advances and can't allocate the monies to the writers of the song when making your own music.
Video streaming. This is a touchy subject between the publishers and the streamers. This is an unsettled matter on royalties. The digital streamers feel they are covered by the public performance license through ASCAP or BMI. Publishers feel they should get more return. The Copyright Royalty Board has not benn involved due to no compulsory license for streaming videos.
Tethered downloads. These specific downloads are very restricted. If someone downloaded a song under a subscription service and they don't renew there subscription, you can't play the song after your term. Tethered downloads are from services such as: Listen.com, Music Match and Napster. There is also no rate set for tethered downloads. An example of the math. Publisher say makes %10 of the streamers revenues then the publisher gets $100. The publisher gets a porportional rate meaning if the streaming puts 1000 streams out there and 250 of the stream are yours, you will get %25 of the money, or $25. With tethered downloads it is based on the number of times the song is downloaded to the listeners computer.
Podcasting. With podcasting this is considered and viewed as promotional. The song is a sample of thirty seconds. If the songs extends over thirty seconds, the publisher will be paid.
*Next post I will cover foreign mechanicals.