Controlling and monetising press cuttings

Ljubljana, 2011

Newspaper Licensing Agency Ltd

Newspaper content is different from other content

Newspapers are low value, time sensitive, widely used Other content typically high value, long shelf life, specific users

Usage concentrated in PR and communications businesses, through same day press review services

Delivery focused through Media Monitoring Organisations (MMOs) Different models (self serve v MMO) in some other countries

Licensing MMOs is a highly effective route to market control

Newspaper Licensing Agency Ltd

Press Cuttingsare widely used

Most corporate businesses around the world have a press cuttings service

Most services are provided by Media Monitoring Organisations (press

cutters / clippings companies)

Press cutting services are:

Regular – newspapers are printed every day

Systematic - to a clearly define list of senior executives

Volumes are often high, large numbers of cuttings to multiple users

NLA Licenses both the

Primary Use by MMOs – copying, scanning, databasing, forwarding AND

Secondary Use by End Users – copying, forwading

Newspaper Licensing Agency Ltd

How RROs can license press copying

RRO licenses MMOs – “The key to the door”

MMOs must:

Disclose clients – who NLA contact directly to license

Report on transactional volumes

Only supply licensed clients, and cut off those who don’t

NLA, CFC, CAl & NLI operate similar licensing schemes

RROs require mandates from publishers to iicense MMOs

MMO licence covers primary use –

copies made by the MMO and supplied to the End Use

MMO Licence does NOT cover any secondary copying undertaken by the End User

MMO licence covers print and web

Newspaper Licensing Agency Ltd

NLA UK example NLA offering is relatively simple One licence for MMOs One licence for End Users, fitted to press clippings usage, but also ad hoc use

NLA has issued over 9,000 End User licenses• far higher licensee count than many larger RROs• 90% corporate / govt, 10% academic – very different split

NLA End User licence allows general ad hoc copying to be licensed Per copy fee press cuttings 45% revenue General blanket copying licence 55% revenue

Net impact – compliance good, revenues high 20% of NLA turnover from MMOs 50% of End User revenue from MMO clients 30% other (self serve users, ad hoc only, academic) £25m pa collected

Newspaper Licensing Agency Ltd

Press cuttings – revenue collection and sharing

Usage and charging Systematic copying amenable to simple charging models Usage easy to measure by survey or online Users complete annual ‘tally’ based on actual use PCAs find easy to account – matches client charging

Revenue distribution Simple measurement allows direct revenue share

Total copies can be calculated, broken down by publication Total usage from user and PCA returns Revenue divided by usage gives royalty Simple and fair

Newspaper Licensing Agency Ltd

The press cuttings Licensing Model – Summary

License press cuttings by:

1. License MMOs

2. Ensure MMOs disclose who they supply cuttings to

3. License the MMO End Users

4. Gather copying data to aid distribution to rightsholders

Further data; www.pdln.info

tchowdhury@nla.co.uk 44 1892 552811