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Maximizing Online Opportunities for Audience Engagement, Advertiser Value and ProfitabilityNASHVILLE 2010
Maximizing Online Opportunities for Audience Engagement, Advertiser Value and Profitability
There are many dangerous myths currently circulating that could very well get a company streaming music on the Internet into trouble. For instance, many broadcasters believe that ASCAP and BMI royalties cover them for all on-line music use. This is not true. ASCAP and BMI cover the broadcaster only for the public performance rights to the underlying music composition—the song itself—when an ASCAP or BMI song is played over-the-air. For digital transmissions—like those made on the Internet—there is an additional royalty, payable to a company called SoundExchange. This additional royalty compensates the performers of music. This royalty must be paid in addition to the fees paid to ASCAP, BMI, and SESAC, and must even be paid on the Internet simulcast of a broadcaster’s over-the-air programming.
ASCAP & BMI ($0)For Internet radio stations that simulcast the signal of an over-the-air broadcast station on a non-subscription basis, fees for Internet usage of the music licensed by ASCAP and BMI are covered by the current broadcast licenses.
SESAC ($360+)SESAC’s Internet Performance License royalty is based on a Revenue or ATH multiplier with a minimum $360 annual fee and reporting requirements.
SoundExchange (???)The royalty to SoundExchange is paid both to the owners of the copyright in the performance of a piece of recorded music and to the performers of that music. Half of the fees collected go to the performers, and half to the copyright owner in the performance (usually the record company). This royalty comes about as the result of a “compulsory license” which allows Internet broadcasters to use music without the explicit permission of the artists and copyright holder, provided that the broadcaster pays this royalty fee and complies with certain usage restrictions.
Internet Radio Royalties 101
Maximizing Online Opportunities for Audience Engagement, Advertiser Value and Profitability
> Small Broadcaster <Any commercial webcaster who has a “substantial business owning and operating one or more terrestrial AM or FM radio stations”. These rates were negotiated by SoundExchange and the National Association of Broadcasters.
Any applicable broadcaster who 1) has less than 27,777 aggregate tuning hours (total listening hours) per year for ANY of its broadcast simulcast stations or channels; and/or 2) has less than 27,777 ATH for ALL of its Internet-only channels in aggregate.
Stations averaging more than 3.177 Internet Listeners are NOT ELIGIBLE for Small Broadcaster status
Rates: Broadcasters will pay a special per-performance rate for each track played. An annual minimum fee of $500 per station or channel is required, which is applied against the service’s total annual liability. Annual minimum fees are capped at $50,000.
Year Rate per Performance2010 $0.00162011 $0.00172012 $0.00202013 $0.00222014 $0.00232015 $0.0025
2010 Example: $0.0016 * 12 songs/hr * 24hrs * 364days = ~$168/yr per Avg Listener
> Plus Reporting < ($100 proxy fee)
Reporting: Accommodations for ‘Small Broadcasters’, as defined above, include an annual $100 proxy fee in lieu of reporting requirements for the entire term.
Internet Radio Royalties 101
Maximizing Online Opportunities for Audience Engagement, Advertiser Value and Profitability
> Broadcaster <Any commercial webcaster who has a “substantial business owning and operating one or more terrestrial AM or FM radio stations”. These rates were negotiated by SoundExchange and the National Association of Broadcasters.
Rates: Broadcasters will pay a special per-performance rate for each track played. An annual minimum fee of $500 per station or channel is required, which is applied against the service’s total annual liability. Annual minimum fees are capped at $50,000.
Year Rate per Performance2010 $0.00162011 $0.00172012 $0.00202013 $0.00222014 $0.00232015 $0.0025
2010 Example: $0.0016 * 12 songs/hr * 24hrs * 364days = ~$168/yr per Avg Listener
A station averaging 50 Listeners/hr would pay ~ $8,400/yr ($700/mo)
> Plus Reporting <
Reporting: census reporting (a report of every sound recording performed) is required on a monthly basis, to be provided to SoundExchange within 45 days of the last day of that month. Limited ATH reporting will be permissible for 2009-2015, provided it comprises no more than a small percentage of total hours of programming (to accommodate syndicated programming).
Internet Radio Royalties 101
Maximizing Online Opportunities for Audience Engagement, Advertiser Value and Profitability
Traditional WebCast Offerings
Selective SimulcastAvoids RoyaltiesManual Operation is Labor IntensiveDead Air between programsLimited ContentLimited Revenue Opportunities
Stream 24x7Automated SimulcastPay Music RoyaltiesLimited to a Single GenreContent Limited to OTA Simulcast
PodcastingContent available on Any DeviceOn-Demand ONLYLong Downloads
Maximizing Online Opportunities for Audience Engagement, Advertiser Value and Profitability
The Ideal WebCast Solution would combine these good features:
Automated Selective Simulcasts of Local Content
Avoid Music Royalties
Podcast Content available on Any Device
And Add:
Programmable Scheduler for Unattended Operation
Real-Time Web-based Controls for Ultimate Remote Flexibility
Automatic Recording of All Simulcasted Content for On-Demand Playback & Podcasting
Combined Simulcasted and Recorded or Uploaded Content for Integrated Live Webcast
150+ Royalty-Free Music Side Channels that Auto-Play during simulcast “dead air” to Expand your Audience
Integrated Internet-Only Content to Drive Users to your Site
Integrated Ad Management for Maximum Revenue Opportunities
A Better Solution
Maximizing Online Opportunities for Audience Engagement, Advertiser Value and Profitability
Music Side Channels
RadioP1 has negotiated agreements with the Internet’s Best Music Servicesallowing you to automatically attach to their Royalty-Paid (Free) Music whenyour Stream is Silent
Stations can offer over 150 User-Selectable Music Side Channelsto Expand Your Audience WAY Beyond your Format/Genre
RadioP1 Automatically Switches between your Live/Local Content andEach User’s Favorite Music!
Best of All, you can configure YOUR ADS to play as Pre-Rolls andInterstitials along with the Side Music Channels!
Easy ListeningJazzLatin/WorldOldies (20s-60)
AlternativeAmericanaBluesClassical
ComedyCountryDanceDecades (70s-90s)
PopR&B/Hip-Hop/UrbanRockSpiritual
Each RadioP1 Station Can Be 150+ Internet Stations!Each RadioP1 Station Can Be 150+ Internet Stations!
GenresGenres
Maximizing Online Opportunities for Audience Engagement, Advertiser Value and Profitability
Stream Your Music or Ours?
Royalties
Reporting
Genres
Audience
Monetize
Bandwidth
Cost
RadioP1 Music Station Music
FREE
None
Multiple
Expanded
BIG $
None
FREE
$ Royalties $
Yes
One
Same
low $
Yes
HIGH
Maximizing Online Opportunities for Audience Engagement, Advertiser Value and Profitability
Website Integration Options
Embeddable Player(Player embedded on Station Site)
Features
Audio/Video PlayerLive or On-Demand Programs
Music Side ChannelsPre-, Post-roll & Interstitial Ads
Banner/Overlay AdsProgram ScheduleOn-Demand Menu
Content Management SystemCustom HTML PagesEmbed-code Display
RSS Feed DisplayChat
TickerVirtual Scoreboard
Media Center(Feature-Rich Player linked from Station Site)
More VisibilityMore ContentMore ChoiceMore ControlMore Monetization Opportunities
Maximizing Online Opportunities for Audience Engagement, Advertiser Value and Profitability
StationBrandingStation
BrandingRotatingBanner
Ads
RotatingBanner
Ads
SponsoredTicker
SponsoredTicker
Sponsored Listener
Chat
Sponsored Listener
Chat
Custom HTML
Pages, RSS Feed
Publication & Aggregation
Custom HTML
Pages, RSS Feed
Publication & Aggregation
RotatingOverlay Ads
RotatingOverlay Ads
Pre & Post-Roll
Audio/Video Ads
Pre & Post-Roll
Audio/Video Ads
Live & On-DemandProgramming
Schedule
Live & On-DemandProgramming
Schedule
Viral Marketing
Viral Marketing
150+ Royalty-Free Music Side Channels
150+ Royalty-Free Music Side Channels
Flash Media Player
(Platform Independent)
Flash Media Player
(Platform Independent)
Virtual Scoreboards
Virtual Scoreboards
Media Center
Coming Soon…Auto-Post Feeds to Twitter & FacebookComing Soon…Auto-Post Feeds to Twitter & Facebook
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