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jerryking : licensing_rights   7

Venture: The (musical) schlock stops with Jingle Punks - The Globe and Mail
DAVE MORRIS
The Globe and Mail
Published Thursday, Sep. 25 2014

Jared Gutstadt had been playing in struggling bands by night and working as a video editor at MTV by day, choosing tracks from “production music” libraries to soundtrack the action in the likes of Chappelle’s Show.

The music industry boasts dozens of libraries, the largest of which are affiliated with the major record labels, and millions of songs are available for licensing, from no-name tracks to cover songs to huge, prohibitively expensive hits. The Rolling Stones famously charged Microsoft a reported $3-million (U.S.) to license Start Me Up for an ad campaign for Windows 95.

Ready-made production music normally costs a fraction of that figure. The filmmaker or TV company licenses the publishing rights (the lyrics and structure of a song, as opposed to the actual recording), paying what’s known as a “synchronization” fee. In 2013, according to the IFPI, synchronization fees worldwide totalled $337-million. In addition, whenever the TV show or movie featuring the track is broadcast or reproduced on DVDs, the owner of the recording itself is usually entitled to another sum, producing a revenue stream that can be small, but potentially steady.

Gutstadt and a partner saw an opportunity to be the suppliers of the music for the shows he and his MTV co-workers were editing, and Jingle Punks was born. The opportunity to become more than a niche player emerged not long after.

“There wasn’t enough production music that was easily accessible for the tidal wave of content that was going to occur,” Gutstadt says on the phone from his office in Los Angeles. That wave was unscripted reality shows.

Jingle Punks’ technical innovation, spearheaded by co-founder and software developer Dan Demole, was to offer a curated selection of license-able songs organized by what Gutstadt describes as a “relational search algorithm.” Users can search for music using non-musical terms such as the names of movies, and select and pay for the use of those songs, all through the company’s website.
music  free  start_ups  MTV  digital_media  algorithms  licensing  licensing_rights  musicians  music_catalogues  music_labels  music_publishing  Dave_Chappelle 
september 2014 by jerryking
The Lease They Can Do: What the Fight Over 'Used' Music Reveals About Online Media
April 03, 2013 | Businessweek | By Paul Ford.

What is a song worth to Spotify or competitors such as Rdio? To them, a song is an entry in a very large database—and they solve the licensing problem by managing the licenses in bulk, then allowing listeners access to their libraries of music. At some level, Spotify is not a music service but a license clearinghouse that specializes in music....So far, the large music labels have been able to negotiate with streaming services, but as the streaming music players get bigger their power will increase; Spotify is apparently looking for price breaks from the major labels.

The big question now is not “whose album gets made?” but more “who gets to listen?” Not just who, but when—and who gets paid for the privilege? Oh, for the days when record stores featured bootlegs and cats. The clerks might have been snotty, but at least you didn’t have to have endless discussions about databases and doctrine. No one, anywhere, had to know how often you listened to Supertramp.

That’s another part of the puzzle. Streaming services generate a tremendous amount of data that has value of its own; sooner or later it will be used to make decisions about what gets produced....So this is not about technology. Nor is it really about music. This is about determining the optimal strategy for mass licensing of digital artifacts. Songs are the commodity but the licenses are currency....So this is the task: Figure out how to make money, reward artists enough that they continue to make new things, and pacify the labels and studios, while also creating something that doesn’t rip off, confuse, or upset the audience. If someone can do that, then why stick to movies, music, or perhaps books? New forms of media could be sold as well. Tumblr blogs, animated GIFs, casual games, and the like could all flow into such systems. Right now, when media objects are sold, it’s often as art (like the six-second Vine video called “Tits on Tits on Ikea” that artist Andrea Washko recently sold for $200). A massive marketplace in ridiculous pictures could emerge. Flickr (YHOO)could turn into a mall. Pinterest could become … Pintere$t.
clearinghouses  music  online  Rdio  Spotify  streaming  licensing  licensing_rights  downloads  musicians  music_industry  databases  digital_artifacts  artists  markets  data  music_labels  Flickr  Pinterest  music_catalogues 
april 2013 by jerryking
As Netflix’s plot thickens, CEO strives to hone an edge
Sep. 10 2012 |The Globe and Mail | OMAR EL AKKAD - TECHNOLOGY REPORTER.

While such expansion helps to quickly build Netflix's customer base, it tends to hammer the bottom line. The company's business model relies on paying for content licenses up front, and then slowly making its money back through customer subscription fees. However, that means Netflix is currently losing money in many of its overseas markets – about $100-million a quarter from its United Kingdom and Latin America operations. Even in Canada, where Netflix constitutes the biggest single use of consumer Internet bandwidth, Netflix is only now starting to break even.
Netflix  Reed_Hastings  licensing  licensing_rights  subscriptions  streaming  web_video  challenges  opportunities  piracy  Omar_el_Akkad  competitive_landscape  digital_media  slight_edge 
september 2012 by jerryking
Netflix Faces New Competition in Streaming - NYTimes.com
Sept. 26, 2010 | NYT | VERNE G. KOPYTOFF. Netflix faces a no.
of well-financed & innovative companies e.g. Apple, Amazon, Google
as well as the CATV providers. This war will not be won by perfecting
the logistics of moving DVDs, but by whoever can best negotiate with
Hollywood studios..The weakness of the streaming service is movie
selection. Netflix’s catalog of 20K streaming movies does not include
many recent Hollywood hits because Netflix has been unable to negotiate
rights from all the studios....The industry is still very young &
many companies are experimenting with business models & expanding
their video libraries. Streaming requires less infrastructure &
therefore has lower barriers to entry than a system built on sorting
machines & distn. or even brick- &-mortar stores. Netflix earns
less $rev./cust. as streaming catches on because customers are
subscribing to less expensive plans, with fewer discs and unlimited
streaming. But the company is gaining subs. @ nearly 50 %/yr.
Netflix  Reed_Hastings  Hollywood  studios  competitive_landscape  streaming  licensing  business_models  YouTube  licensing_rights 
september 2010 by jerryking

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