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In This Issue Blasting Into 2014 February 19, 2014 Vol 2 Issue 3 IN THIS ISSUE BLASTING INTO 2014 ...............................2 SOONER IS BETTER: SOUNDEXCHANGE MOVES TO MONTHLY PAYMENT SCHEDULE ...........4 RESOLVE TO RESPECT ALL MUSIC ....................5 THE STATUTORY LICENSE: 2014 TIPS AND REMINDERS .........................7 JUNIOR’S MUST HAVE GEAR: A DIFFERENT KIND OF AXE FOR THE WINTER ..........9 MUSIC APPS FOR MUSIC LOVERS: PART 2!.............12 NICE TO MEET YOU: 2013 CONFERENCE RECAP AND LOOK AHEAD TO 2014 ...................16 BACKSTAGE WITH AIR TRAFFIC CONTROLLER..........18 Follow us. Like us. SOUNDTRACK REWIND .............................24 Watch us. UPCOMING EVENTS ................................26 www.soundexchange.com BLASTING INTO 2014 2013 was an exceptional year for digital music streaming, and SoundExchange once again set quarterly and year-end records, including distributing $590 million to recording artists and record labels in 2013. But with all the success, the organization isn’t slowing down as this year gets under way. Already this year, SoundExchange is bolstering efforts towards better serving the industry and supporting the long-term value of music. • First, SoundExchange became the only sound recording performance rights organization (PRO) in the world to provide monthly payments for artists and labels. In fact, most sound recording PROs around the globe only offer annual or semi-annual payments. SoundExchange is already hearing from industry colleagues throughout the music industry who are expressing their widespread support for the initiative. The announcement was also positively covered throughout the media. • Second, SoundExchange extended the contract of President and CEO Michael Huppe through 2018. The SoundExchange Board expressed total confidence 2 February 19, 2014 www.soundexchange.com Vol 2 Issue 3 in Michael’s ability to lead the organization, which sits at the forefront and is responsible for 45 percent of worldwide streaming music industry’s revenues (as of 2012). And That’s Just the Beginning. Later this year, SoundExchange will roll out additional services for the artists and labels it serves including an online portal to check account and payment status, new and exclusive benefits just for SoundExchange members, and different ways to leverage and connect to the SoundExchange repertoire database. SoundExchange will also have an expanded presence on Capitol Hill (after the addition of a dedicated vice president of Global Public Policy in 2013). The organization, as always, will continue to promote performance rights, including but not limited to a renewed focus on the need for a Performance Rights Act. AM/FM radio stations are not required to pay record companies for the use of their sound recordings — an unfair situation that sets the U.S. as an outlier among all other industrialized nation. This remains one of the fundamental disparities in the music business today. There will also be an extensive focus on the copyright review process now in progress. SoundExchange plans to actively participate in hearings before Congress and rate setting proceedings before the Copyright Royalty Board. The organization will always continue to push hard for fair rates for artists and labels across all platforms. The music industry has been, is and will likely always be a daily roller coaster of complexity and change. But at the end of the day, SoundExchange is ready to tackle these complexities and protect your interests in order to make it a smooth 3 ride for you. Here’s to 2014 and the exciting year ahead! February 19, 2014 www.soundexchange.com Vol 2 Issue 3 SOONER IS BETTER: SOUNDEXCHANGE MOVES TO MONTHLY PAYMENT SCHEDULE Let’s face it. No one likes to wait. Recognizing that sooner really is better, SoundExchange is pleased to announce it has begun offering monthly royalty payments to those artists and labels that are signed up to receive electronic payments. This new initiative kicked off in January 2014. Previously, the organization distributed royalties quarterly. Initially, monthly royalty payments will be sent to those that are signed up to receive electronic payments, and have royalties due of at least $250. Artists and labels that do not meet this minimum threshold will continue to be paid on a regular, quarterly schedule under the organization’s existing guidelines. After the initial roll out period, SoundExchange will re-evaluate eligibility qualifications for the monthly payment program. 4 February 19, 2014 www.soundexchange.com Vol 2 Issue 3 “SoundExchange takes great care to ensure artists and labels are paid accurately and efficiently for their creations,” said Jonathan Bender, Chief Operating Officer. “After thoughtful consideration and discussions with the creators we serve, we’ve decided to offer our registrants monthly payments. We’re excited to make royalties available sooner, so creators can focus on making the music we all love.” SoundExchange is the first sound recording rights organization in the world to offer monthly distributions. Most sound recording performance organizations in other countries pay only annually or bi-annually. Have questions? The SoundExchange team is happy to provide you with any information regarding this new change. Please contact SoundExchange at [email protected] or speak to a SoundExchange Representative at 1-800-961-2091. RESOLVE TO RESPECT ALL MUSIC In December 2013, John Conyers (D-MI), ranking minority member on the House Judiciary Committee, wrote an op-ed in USA TODAY about pre-1972 copyright laws and the way in which some digital radio services interpret the law. As a result of their interpretation of the law, hundreds of artists with sound recordings made prior to February 1972 are not paid for their creations – simply because of the date their sound recordings were made. SoundExchange is asking that digital radio make a firm resolution in 2014: pledge to treat all musicians equally. 5 February 19, 2014 www.soundexchange.com Vol 2 Issue 3 Some digital radio services believe that if a recording was made in 1971, the recording artist isn’t entitled to compensation. If recorded after 1972, the artist is paid. It’s a matter of simple fairness and uniform treatment of all sound recordings. SoundExchange is committed to working on behalf of pre-1972 rights owners to ensure they, like post-1972 artists, receive compensation for their sound recordings. SoundExchange advocates for all artists whether they recorded in 2009 or 1969. The organization strongly believes in the value of music and that all artists, regardless of the date they produced their recording, should be compensated for their work. More information regarding this issue, along with industry lawsuits relating to this issue, can be found on the SoundExchange website here. And click the image below to hear SoundExchange President and CEO Michael Huppe discussing the issue (among other important issues facing the digital music industry today) on Bloomberg TV. Stay tuned and follow @soundexchange and @musicFIRST for the latest news. 6 February 19, 2014 www.soundexchange.com Vol 2 Issue 3 THE STATUTORY LICENSE: 2014 TIPS AND REMINDERS If you’re a service provider and you’re not sure how to comply with the statutory license, please contact the Licensee Relations department at [email protected] or speak to a SoundExchange Representative at 202-559-0555. SoundExchange is happy to answer questions about the statutory license anytime. Below are tips to help digital music services fulfill their responsibilities quickly and accurately. Statements of Account and Payments u When you submit a payment, it should always be accompanied by a statement of account form. u Hand-sign your statement of account forms before you send them to SoundExchange. u Know the deadlines for submitting forms and payments. For commercial services, monthly royalty payments and monthly statement of account forms are generally due 45 days after the end of each month. Reports of Use u Reports of use and statements of account are different. Statements of account show the amount of the royalty payment due, telling us how much money a service is submitting. Reports of use (i.e. logs) identify the sound recordings that a service performs during the reporting period and the size of the listenership for each track (telling SoundExchange how to distribute that 7 money to the artists and copyright owners). February 19, 2014 www.soundexchange.com Vol 2 Issue 3 u Know the deadlines for submitting reports of use. For most commercial services, reports of use are generally due 45 days after the end of each month. u Streaming providers that facilitate the streams for Internet radio stations can often help you produce your reports of use. u You can also use the templates for reports of use that the organization provides on the SoundExchange website at the Reporting Requirements page. u If your service operates multiple stations or channels and you report them on a single statement of account, please submit a single report of use. Keep a 1-to-1 relationship between statements of account and reports of use. u Monthly reports of use should include a complete census of all tracks streamed during that month (NOT a two-week sample). General Reminders u If you’re streaming and paying royalties to ASCAP, BMI and SESAC, you probably still need to pay royalties to SoundExchange. ASCAP, BMI and SESAC collect royalties for the performance of the musical work, but you still need a separate license to perform the sound recording. If you don’t have direct licenses for the sound recording and instead rely on the statutory license, then don’t forget to pay your royalties to SoundExchange. u Make sure you’ve filed a Notice of Use with the U.S. Copyright Office. You only need to file this form once when you begin streaming. The Notice of Use form is available by clicking here. Be sure to send the form to the Copyright Office (not SoundExchange) with the $25 filing fee. u SoundExchange does not invoice.
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