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RECAP: U.K. Digital Economy & Piracy Reports, Rdio Goes After Sony, Spotify May Abandon Freemium

Posted by Glen Sears | July 11, 2016 10:02 am | No Comments

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Story of the Week

U.K.’s Digital Economy Bill Introduced, Would Allow Retransmission Fees
The U.K. government on Tuesday unveiled its Digital Economy Bill, which includes a part that could pave the way to U.S.-style retransmission consent fees and which wants to make the U.K. “the most digital nation in the world.”

The new bill also includes measures designed to strengthen protections for citizens. Among others, it will “protect children from online pornography by requiring age verification for access to all pornographic sites and applications” and “increase the sentencing options for people who infringe [on] copyright laws online, bringing sentences into line with the current penalties available for ‘physical infringement’.”

“We have consistently called for major pay-TV platforms to pay U.K. public service broadcasters (PSBs) fairly for the ‘transmission’ of their channels ending what is effectively a multi-million pound subsidy — and this is clearly a welcome first step in that direction,” an ITV spokesman said. “This is simply about ITV, and other PSBs, being paid fairly for their investment in original U.K. content so that we can continue to invest in the programs viewers love.”

Read the full story on Billboard.

Top Music News

Concerns Loom Over U.K. Music Business’ Future in Wake of Brexit Vote. Two weeks on from the U.K.’s historic decision to leave the European Union, no one is any the wiser about what or how big an impact it will have on the nation’s economy, 64 million population or future.

YouTube Leads Music Consumption While Piracy Dips, According to U.K. Government Survey. An estimated 78 million music tracks were accessed illegally online in the United Kingdom in a three month period, but levels of digital piracy are gradually beginning to decline, according to new research from the U.K.’s Intellectual Property Office (IPO).

What the Dept. of Justice’s Decision Means for Music Publishing. Almost everyone in the music-publishing business has expressed frustration with the Department of Justice’s recent decision not to amend the antitrust consent decree, but they don’t seem to agree on how this decision will affect the music industry — or even exactly what it means.

Sony Music Investigated by Rdio for Alleged Collusion in Streaming Music. The label responds that the suggestion of antitrust violations are “nothing but speculation and conjecture” and pretext for avoiding $17 million claims plus allegations of fraud.

Soundcloud Aims Straight At Spotify, Apple Music With “Artist Stations.” “The algorithm behind Stations serves content in a different way than the Suggested Tracks feature we recently launched — Stations serve a longer queue of songs that are a mixture of similar, new, and popular tracks related to the track or artist you started the Station from, for an experience closer to listening to the radio.

Users Leave Apple Music 3X Faster Than They Do Spotify. Apple Music has a problem with users dropping the service called their churn rate – “the annual percentage rate at which customers stop subscribing to a service” – and Apple Music’s is three times that of Spotify.

The End Of Freemium For Spotify? Analyst Mark Mulligan argues “that mid-priced subscriptions are crucial to driving the streaming market, and the burgeoning success of Spotify’s mid-priced-subscriptions-by-stealth strategy provides a bulging corpus of supporting evidence.”

Our best wishes for a great week! – MediaNet

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