MediaNet Blog

Digest: Soundcloud Is/Isn’t Running Out of Cash, SESAC Sells to Blackstone (for Maybe A Lot?)

Posted by Glen Sears | January 9, 2017 9:47 am | No Comments

soundcloud-spotify-deal-e1475140019462

Top Story This Week

SoundCloud ‘May Run Out Of Cash This Year’ As It Posts $54M Loss
SoundCloud’s losses grew faster than its revenues in 2015 – with the company now admitting that, should its subscription service flop, its funding may run dry this year, according to a new filing at Companies House (UK).

“The assumption of a successful launch of the new subscription service is the key element of [our] financial projections for the next three years… [This] bears financial risks regarding the operating results and cash flows of the group. The occurrence of these risks can seriously affect the ability of the group to generate sufficient cash to cover the planned expenditures and could require the Group to raise additional funds which have not yet been agreed.”

Read the full story on Music Business Worldwide

Other Music News Highlights

SoundCloud Responds To Cash Crunch Claims. In a statement, Soundcloud told journalists: “We are on a very positive path to achieving our aim of enabling all creators to be paid for their work, while also building a financially sustainable platform where our connected community of creators, listeners and curators can continue to thrive.”

Blackstone to Acquire Music Rights Organization SESAC. Financial terms of the deal have not been disclosed, but this marks Blackstone’s first step in a new strategy to hold onto private investments longer than most equity firms, a point highlighted by SESAC CEO John Josephson in the announcement.

Was Blackstone’s SESAC Acquisition a $1 Billion Deal? Ed Christman looks at the tea leaves in the Blackstone/SESAC acquisition that “might well be $1 billion deal,” including company financials and Wall Street reports.

BMI Files Action Against RMLC Over Royalty Rate Proposal. “The RMLC can point to no changed circumstances that warrant a reduction in BMI’s interim or final rate,” the BMI filing states. “BMI believes that the market developments will support a final rate of greater than 1.7 percent of gross revenue payable to BMI.”

BMG Responds To Appeal In Cox Communications Dispute. “Cox claims that BMG’s notices are ‘littered with flaws’, but Cox was able to identify errors in a tiny handful of the 1.8 million BMG notices at issue — the evidence showed that Rightscorp’s system was ‘well over 99%’ accurate.”

SiriusXM Ends 2016 With More Than 31 Million Subscribers. The company also said that it expects to meet or exceed its 2016 guidance for revenue, adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), as well as free cash flow when it reports its full financials next month.

All Three Major Labels, Pandora and RIAA Announce Support for Hi-Res Audio Streaming. The announcement came during, and from, the 50th Consumer Electronics Show in Las Vegas where the DEG sponsored a hi-res “Audio Pavilion.” The exhibition manifested its “Stream the Studio” message with a fully-equipped world-class recording facility filled with hi-res devices and showcasing a series of live demo sessions with award-winning engineers.

Our best wishes for a great week! – MediaNet

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FAQ: When Will My Performing Rights Organization Pay Me?

Posted by Glen Sears | July 28, 2015 8:24 am | No Comments

performing-rights-organization-payments-ascap-bmi-sesac
Performing rights organizations, or PROs, are societies responsible for collecting income on behalf of songwriters and music publishers when a song is publicly broadcast. This includes live covers, radio plays, television plays, internet radio services like Pandora, streaming services like Spotify, restaurants or bars, nightclubs, and any other public performance. All these users pay the associated PRO a fee, which the PROs then pay to their registered songwriters.

For a comparison of performing rights organizations, click here.

Given the different processes in digital music, PROs have different distribution schedules. Many times payments will be remitted as much as two quarters following the performance. We’ve taken the liberty of combining all 3 U.S. PRO payment schedules here:

ASCAP

ASCAP, an organization owned and run by its members, is the leading U.S. Performing Rights Organization representing over 540,000 songwriters, composers and music publishers.

2015 DATES TYPE PERFORMANCE PERIOD
April 6, 2015 Domestic Writers July, August & September 2014 (3Q14)
May 11, 2015 International Distribution
June 19, 2015 Domestic Publishers October, November & December 2014 (4Q14)
July 6, 2015 Domestic Writers October, November & December 2014 (4Q14)
August 10, 2015 International Distribution
September 18, 2015 Domestic Publishers January, February & March 2015 (1Q15)
October 5, 2015 Domestic Writers January, February & March 2015 (1Q15)
November 9, 2015 International Distribution
December 18, 2015 Domestic Publishers April, May & June 2015 (2Q15)

Source: http://www.ascap.com/members/payment/distribution.aspx

BMI

BMI is the bridge between songwriters and the businesses and organizations that want to play their music publicly. As a global leader in music rights management, BMI serves as an advocate for the value of music, representing more than 8.5 million musical works created and owned by more than 650,000 songwriters, composers and music publishers.

PERFORMANCES BETWEEN ENTERED BY PAYMENT
October 1, 2013 – March 31, 2014 June 30, 2014 September 2014
January 1, 2014 – June 30, 2014 September 30, 2014 January 2015
April 1, 2014 – September 30, 2014 December 21, 2014 March 2015
July 1, 2014 – December 31, 2014 March 31, 2015 June 2015
October 1, 2014 – March 31, 2015 June 30, 2015 September 2015

Source: http://www.bmi.com/faq/entry/how_often_is_this_paid_out

SESAC

SESAC currently licenses the public performances of more than 400,000 songs on behalf of its 30,000 affiliated songwriters, composers and music publishers.

Domestic Royalty Payments

PERFORMANCES OCCURRING BETWEEN ARE DISTRIBUTED ON OR AROUND
January 1 – March 31 (Qtr 1) June 30
April 1- June 30 (Qtr 2) September 30
July 1 – September 30 (Qtr 3) December 31
October 1 – December 31 (Qtr 4) March 31 (next year)

Foreign Royalty Payments

ROYALTIES RECEIVED FROM FOREIGN ARE DISTRIBUTED ON OR AROUND
January 1 – March 31 September 30
April 1- June 30 December 31
July 1 – September 30 March 31 (next year)
October 1 – December 31 June 30 (next year)

Monthly Radio Royalty Payments
Radio-Payments-Schedule
Source: http://www.sesac.com/WritersPublishers/HowWePay/GeneralInfo.aspx

Have more questions about managing your musical rights and payments? Email us here!

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