While the music industry continues to focus on a so-called “value gap” that does not reflect the state of Canadian law, mounting data also suggests that it does not provide an accurate depiction of the revenues being generated in Canada today from Internet streaming. SOCAN, Canada’s largest music copyright collective, last week reported preliminary numbers for 2018, with the data indicating that Internet streaming revenues have now hit $62 million, likely surpassing both radio and television royalties as its second largest source of domestic revenues. In fact, Internet streaming now accounts for 22 per cent of SOCAN’s domestic revenues and will almost certainly become its largest domestic revenue source in 2019.
Post Tagged with: "socan"
Canada’s Internet Music Success Story: SOCAN’s Canadian Internet Streaming Revenues Surpass Radio Royalties
Music industry lobby groups may frequently seek to equate the Internet with lost revenues, but an examination of financial data from one of Canada’s largest music copyright collectives demonstrates massive growth in earnings arising from Internet streaming including major services such as Youtube and Apple Music. While many collectives do not publicly disclose their revenues, SOCAN, which represents composers, songwriters, and music publishers, provides a detailed breakdown of revenues and distributions in its annual report.
Copyright has not received much attention during the election campaign, but a recent survey by SOCAN raises questions about support for copyright term extension. The issue is particularly confusing in the case of the NDP, since it opposes the TPP (which would require term extension and keep works out of the public domain for decades) but it seems to be willing to entertain the prospect of copyright term extension. SOCAN asked whether the parties would be willing to extend the term of copyright to life of the author (or composer) plus 70 years. The NDP’s response:
The NDP welcomed the government changes in Budget 2015 to extend the term of copyright for performers. We understand there is now discrepancy between performers and songwriters. The NDP is committed to reviewing the Copyright Act in 2017 as the Act requires. We would look to make these key legislative changes in our first year of mandate. These are among the changes we would be looking into.
SOCAN, Canada’s largest music copyright collective, released its annual report this week, reporting record revenues and a massive increase in earnings from Internet streaming services. SOCAN reports that copyright revenues from Internet streaming hit $21.3 million, a 525% increase over the $3.4 million generated in 2013. The huge increase in Internet streaming revenues in Canada points to why persistent criticism about Tariff 8, a Copyright Board tariff for Internet streaming misses the mark. As I pointed out last year, Tariff 8 is only part of a larger ecosystem of royalties paid for Internet music streaming.
Indeed, the fact that songwriters, composers, and music publishers are successfully generating new revenues from Internet music services has actually been a target of criticism by the Canadian Recording Industry Association, which has intervened in tariff proceedings involving SOCAN to argue that its tariff proposals are “grossly excessive.”
The Battle Over Tariff 8, Part 2: The Recording Industry’s Surprising Opposition to Songwriter, Composer and Music Publisher Streaming Royalties
Yesterday I posted on the battle over Tariff 8, the Copyright Board of Canada’s new tariff for digital music streaming services that the media has suggested could open the door to popular foreign services migrating to Canada. Despite the initial excitement, the Canadian recording industry, led by Music Canada (formerly the Canadian Recording Industry Association) has taken aim at the decision, which its President Graham Henderson argues:
will further imperil artists’ livelihoods, and threatens to rob them of the fruits of their labour in the new digital marketplace. And it will further undermine the business environment, undercutting the ability of labels and other music companies to make future investments in Canadian talent.
As noted in the post, Re:Sound, the collective responsible for the tariff, has filed for judicial review of the decision and Music Canada is urging its supporters to “like” its Facebook protest page, which it says will help win the fight.
There are two things that make the campaign against the decision particularly striking: the industry’s failure to mention to that Tariff 8 is only one of several payments made for music streaming and its opposition to those other payments.