August Industry Wrap-Up

Spotify Begins Testing Videos Within Playlists


It’s amazing to think about the progress that streaming platforms have made over recent years. Streaming itself was and is a groundbreaking way to listen to music digitally, but one can even point to the amazing influential powers of playlists as an example of how quickly the way fans discover music and engage with their favorite artist changes. Any independent artist who has been added to a higher profile playlist will likely be able to tell you about the positive impact it has on their career, too.

This month, Spotify – which also announced that it has surpassed 60 million subscribers – officially rolled out the inclusion of videos within its incredibly popular “Rap Caviar” playlist (it began testing this feature in March, as reported by MusicAlly). While this is only available in the U.S. for now, it marks another impressive step towards integrating new forms of content for fans to geek-out on. One could say this move also shows video giants like YouTube that Spotify can keep up with the demand.

Outside the realm of traditional music videos, this will be exclusive video content from various artists aimed at engaging fans in a less traditional manner: Spotify claims fans will be able to see everything “from 2 Chainz visiting Dr. Miami to assist him with a butt-lift surgery to Sza hanging out in the woods and talking about her rise to fame, or Wale getting a gourmet meal from a five-star weed chef”.

As this feature is sure to be rolled out further in the coming year, independent artists can see this continued commitment to playlisting as a positive. Getting placed on a playlist can be a powerful way to market your music to new fans, and the opportunity to include video content down the road only sweetens the deal. TuneCore always offers artists the opportunity to be considered for feature placements (with no guarantees, of course), and this facet of marketing and promotion should be implemented into their upcoming releases.

 

Nielsen Report Shows Interesting Millennial Music Consumption Trends


Tired of reading reports and headlines about how ‘millennials’ are eating, drinking, ruining industries, and interacting with the world around them? Too bad! But hey, at least this recent report by Nielsen actually pertains to folks – millennial or otherwise – making music and distributing to digital platforms.

Millennial music fans display “Lots of Love, Lack of Loyalty”, Nielsen says. The report touches on a lot, but when it comes to music, it appears as though fans in the 18-34 range are using multiple platforms to tune in with little regard for the brands fueling them. 57% of millennials are using two or more apps to stream music, compared to only 39% of those streamers over the age 35.

While it’s commonplace to bemoan the decline of terrestrial (and even digital) radio listening among this generation, figures around how much radio they’re dialed into have barely dropped since last year (10 hours and 14 minutes per week down from 11 hours and 17 minutes per week). An interesting thing to note, though, is that millennials are “21%more likely to frequently choose songs than to let the music play without making changes” – an obviously different listening experience from what broadcast radio offers.

As mentioned above – if you’re an artist distributing to popular streaming platforms, this is some must-read stuff. The report concludes that loyalty to platforms aside, “the reality of today’s media scenario is that the addition of new offerings has actually inspired increased consumption.”

 

YouTube Begins Offering In-App Messaging & Sharing


Tired of reading what those animals in the YouTube video comment sections have to say? Yeah, we all are. The good news is that YouTube has launched an exciting new way for fans to share their favorite content with their friends and chat about it without ever leaving the app. As streaming services like Spotify scale back their messaging offerings, YouTube hopes to inspire more sharing, discovering and private conversation while keeping folks in-app.

YouTube Product Manager Benoit de Boursetty says, “We think it’ll make sharing easier, faster and more fun on your phone… These shared videos all live in a brand new tab on your YouTube mobile app, making it easier than ever to catch up on videos your friends have shared or to show them a few of your own favourites.”

The demand for music on YouTube continues, and thankfully independent artists are offered a way to not only distribute properly but also collect sound recording revenue from the Google-owned giant. It’s not hard to believe that we’ll see a spike in sharing among dedicated users who might shy away from music-first platforms such as Apple Music, Deezer or Spotify. As an app that attracts less-than-active music listeners at higher rates, YouTube’s new features stand to make it a friendlier place for artists to share their new releases.

July Industry Wrap-Up

Facebook Moves Closer Towards Copyright Protection


Folks in the entertainment industry (among other sectors of business) have been following Facebook’s growth and expansion into the music space, whether it’s sharing videos, partnering with streaming platforms to encourage social engagement and discovery, or supporting user-generated content and live feeds. With that, of course, comes pressure to protect songwriters, artists and other creators in the realm of copyrights and licensing and ensure that they are able to collect their owed share of revenue. Like YouTube before it, critics have been waiting to see what the social media giant does next in this realm.

This month, Facebook acquired Source3, a content rights management startup, whose goal is “to recognize, organize and analyze branded intellectual property in user-generated content”. Source3’s technology serves brands or users uploading content to “measure their presence or take action against infringers of their copyrights and trademarks.”

While this move for Facebook looks to serve users and brands outside of music, the company did begin hiring its first music licensing staff recently, likely satisfying labels and publishers seeking to further cement social media streaming royalties as a revenue source. And for independent artists outside of the label system, this acquisition can be seen as a step in the right direction as it hints at future revenue opportunities and a tightened up system to combat copyright infringement.

Amazon Music’s 3rd Place Status – Bigger Than It Sounds?


According to MIDiA Research, Amazon Music is now the 3rd largest music subscription service. MIDiA has been tracking usage of streaming apps on a quarterly basis since 2016 and claims Amazon has grown strongly quarter upon quarter: it ranks 2nd behind Spotify as ‘most widely used’; boasts the ‘largest installed base’ of active users (weekly); and as mentioned above, it ranks 3rd in subscribers with around 16 million, greatly surpassing the 4th and 5th placed QQ Music and Deezer (respectively).

Mark Mulligan of MIDiA’s Music Industry Blog argues that while those figures are impressive in an ever evolving streaming market, the real beauty in Amazon’s growth lies in its ability to convert Prime Subscribers (Amazon’s premium shopping service with annual fees) to Amazon Prime Music or Amazon Prime Music Unlimited users. With no additional costs, new payment schedule or commitments, users of the Amazon Prime app can seamlessly shift their music consumption habits – or adopt streaming for the first time entirely – to a trusted source that they are already actively using on a weekly basis.

In addition to subscriber growth, Mulligan also acknowledges not only the advent of the Amazon Echo (Amazon’s proprietary home speaker, of which they’ve sold upwards of 13 million) but also what he calls “The CD Factor”. As TuneCore Artists who have distributed to Amazon Music On Demand know, CDs can easily be made available for music fans who still prefer the physical medium.

While that might not strike some as a huge advantage, consider that physical sales still dominate in Japan and Germany, the world’s 2nd and 4th largest music markets – two out of the four markets in which Amazon Prime adoption is concentrated. Between this and a growing subscription rate, artists have good reason to look to Amazon Music as a propeller of revenue and discovery when they’re ready to release new music.

Pandora Hits Milestone and Introduces New Features


If you’ve visited our site, read our blog, scanned the industry trade sites, or signed into your TuneCore dashboard recently, you’ll know we’re very excited to be approaching a $1 billion  cumulative payout to independent artists this year. Leave it to our friends at Pandora to hit their very own BILLION milestone: one billion impressions on its “Artist Marketing Platform”. Congrats, Pandora! The AMP was revolutionary for its time as it allowed artists to use listener data to learn about their audience – similar to how TuneCore allows you to view data that makes it easier to decide where to spend ad dollars or concentrate touring destinations.

With the ability to pass direct audio messages to fans, Pandora says the platform has been used by over 11,000 artists, who have collectively driven said one billion impressions, which is a major benchmark for the relatively young direct-to-fan marketing approach.

On top of this news, Pandora announced two new direct-to-fan features for the AMP: the ability to promote a single (via pre-recorded audio message), and the ability to promote concert dates (via customized flight dates, ticket purchase links, and geo-targeted messaging). While Pandora remains a curated service, TuneCore announced last year that we’ve partnered with the internet radio heavy-hitter, allowing TuneCore Artists to submit their releases for consideration. With these added features, it makes more sense than ever to be taking advantage of this submission!

May Industry Wrap-Up

Spotify Launches “Spotify Codes”

Remember the QR Code Craze? Sure you do! It took place a couple of years back when we began seeing these funny little squares with unique black and white patterns in them all over promotional materials, from the subway to magazines. People could use their mobile device to scan the QR code and it’d offer them some sort of exclusive content. Marketers saw this as a fun new way to connect with consumers, but ultimately the process involved proved to be just over the line of effort that most consumers were willing to put into connecting with a campaign.

Flash forward to present day, and we see Spotify has announced a new in-app feature called “Spotify Codes”, allowing music fans to scan said codes to share music with friends. It’s being rolled out globally and is about more than just sharing your favorite playlist with a like-minded pal. Music Ally points to the strong potential for artists to market their music using Spotify Codes: “Flyers, posters, billboards… perhaps even TV advertising – something that would take Spotify Codes into the territory traditionally occupied by Shazam.”

A strong and thoughtful point, indeed. Indie artists of all genres can direct potential fans directly to their latest releases using traditional DIY promotional tactics simply by including their unique Spotify Codes within their visual assets. It’ll be very interesting to see how artists get creative with sharing these codes, and of course, how fans react and engage. Get started using them today with instructions via Spotify here.

Amazon Prime Offers Live Streaming Concerts

Is there anything Amazon Prime can’t deliver us? Well, up until this month, you could technically put “concert experiences” in that category (which seems reasonable enough), but alas, the online retail giant continues to out-do itself. In May, Amazon announced that it has begun offering tickets to concerts to its members. Not just any concerts, but a series of live events, with tickets being offered exclusively via the platform to Prime customers, featuring internationally recognized artists playing in small, intimate settings.

While concerts are being booked for Prime members in the UK right now, it has hopes to add U.S. concerts by the end of 2017. Additionally, Prime members out of the market for these experiences can catch recorded and streaming versions of these concerts so fans can get in on the fun from home. (Kind of a different version of those home concerts we’ve written about in the past.)

Amazon’s attempt to attract older, mainstream music fans who consume music – and live music for that matter – differently than the typical 20- or 30-something music obsessives is a great thing for independent artists who are hoping to reach similar crowds. Additionally, this move shows Amazon taking a step to connect artists with fans further, “combining customer data, billing relationships, content and services, infrastructure and consumer hardware.”

It will be interesting to see how this plays out in the near future – not just what new ways Amazon offers experiences exclusively to Prime members, but also how they bring independent musicians and bands into the fold.

Facebook Rights Manager Helps Artists Collect Ad Revenue

Good news for music creators looking to benefit monetarily from Facebook videos: the social media giant has updated its “Rights Manager” feature, allowing artists to generate revenue from pirated videos that had mid-roll ads placed within them. If an artist’s song is being used in a video across Facebook (with or without permission), they can now get a cut of that sweet, sweet ad money previously reserved for the video creator.

Facebook pays 55% of ad revenue to rights holders (much like YouTube), and until now, its Rights Manager could only successfully notify a rights holder when their music was being used in a video somewhere on the platform – giving them the option to take the video down or leave it up as a means of promotion. Similar to YouTube’s Content ID (which you can take advantage of using TuneCore’s YouTube Sound Recording revenue collection service), artists can “claim ad earnings” and even choose where the 15 to 20-second ad is inserted in the video.

Any new revenue stream for artists is viewed as a win for TuneCore and the greater independent music community. It will be exciting to see how this adds up for those who get their songs featured in videos across Facebook, and it’s definitely a step in the right direction in honoring copyrights. Artists can sign up for Rights Manager via Facebook here.

Part 2: The Artist & Manager Relationship – A Look At Recording Industry Management Agreements

[Editors Note: This is a guest blog written by Justin M. Jacobson, Esq. Justin is an entertainment and media attorney for The Jacobson Firm, P.C. in New York City. He also runs Label 55 and teaches music business at the Institute of Audio Research. Read the Part One of this two-part installment here.]

 

We will continue from our prior installment on “The Artist & Manager Relationship.” We will now explore some additional contract clauses included in most management agreements as well as a few negotiation tactics for these clauses.

Another essential matter that needs to be ironed out is the “term” that the artist is signed to the manager. Typical language outlining the term and options is below:

Term – The term of this agreement will be for an initial period of one (1) year commencing on the date hereof (the “First Contract Period”) plus the additional “Contract Periods” if any, which Term may be extended by Manager’s exercise of one or more of the options granted to Manager below.

Options – Artist hereby irrevocably grants to Manager three (3) separate consecutive options to extend the Term for a “Second”, “Third”, and “Fourth” Contract Period. Each such option consist of one (1) year each and will be exercised automatically by Manager at the end of the then current Term unless Manager gives Artist written notice to the contrary no later than thirty (30) days prior to the date that the then current Contract Period would otherwise expire.

A typical management agreement term can last for as little as 1 or 2 years. But, it can be for as long as 5 or 6 years, or even more. The terms of an agreement are traditionally structured with a minimum of one year followed by several options for additional years. Sometimes, the “term” is based on “album cycles” rather than specified calendar years. In this situation, the “term” starts with the commencement of recording the album and lasts until the end of the tour or associated promotional activities for that album. This time period could end up lasting longer than one calendar year. Similar to the language above, usually the options are automatically exercised by the manager. This provides the manager with the right to choose to terminate the agreement by providing notice to the artist.

If they do nothing, than the option is exercised and the agreement continues. Ultimately, this is a point that should be negotiated between the parties as the agreement could require mutual approval to exercise an option or it could include a set milestone that must be reached for an option to be exercised (i.e. artist must earn $10,000 during the one year term for the option to be exercised or obtain a recording/distribution agreement).

Other possible limitations on the term of the agreement could be that if the artist doesn’t earn a specified amount in a given time frame, then the artist is free to terminate the agreement. If this option is selected, a manager should ensure that any offers that the artist turns down as well as those that are accepted are included in this total amount. This protects the manager as an artist cannot simply turn down valid offers to reduce the income earned in order to get out of the contract. Conversely, an artist should insist that for an offer to count toward this minimum, it must be similar to those the artist had previously accepted. This prevents a manager from simply providing nominal or unsatisfactory offers in an attempt to continue extending the management arrangement.

Since a manager is entitled to receive compensation for any agreement entered into or substantially negotiated during the term of the agreement, a “sunset” clause can be included to reduce the amount that a manager is entitled to after the expiration of the term of the agreement.

Typical language for a “sunset” clause is as follows:

Following the expiration or termination of the Term hereof, Artist agrees to pay Manager for a period of three (3) years a commission of fifteen percent (15%) from any contracts entered into during the Term and all renewals, extensions, additions, modifications, amendments, substitutions or supplements of all contracts, engagements and commitments entered into or substantially negotiated for during the Term hereof. Subsequent to the termination of this first three (3) year period, there shall be modifications downward of Manager’s commission percentage in the following manner: (i) a reduction to twelve (12%) percent for the second three (3) year period subsequent to termination, (ii) a reduction to ten (10%) percent for the third three (3) year period following termination, and (iii) Subsequent to the end of the third three (3) year period the Manager shall no longer be entitled to receive commission.

A “sunset” clause is used to reduce a manager’s commission in the years following expiration of the term of the management agreement. This clause reduces the percentage the artist owes to the manager over time and eventually extinguishes this obligation entirely. This is important for an artist who is leaving one manager and signing with another, as the new manager would typically want their standard commission rate (15-20%) and your prior manager would still be entitled to their percentage under the “sunset” clause (15-20%). This situation severely limits the amount an artist earns; and, therefore, it is prudent to ensure that the prior manager’s percentage reduces and eventually ends at a specified time.

Another method an artist can utilize to potentially terminate a management agreement early is the inclusion of a “Key Man” clause. This clause protects a musician’s relationship with a particular individual by stipulating that the personal manager (the “key man”) must represent the musician or else the musician may terminate the contract.

This applies if the “key man” is deceased, terminated or otherwise is no longer affiliated with the management company that the artist is currently signed to. The particular individual needs to be listed by name in the agreement for this clause to be operative. However, the inclusion of this type of language does not obligate the artist to leave the management company; it just provides the artist with the opportunity to do so if they choose.

A standard “key man” clause could reads as follows:

During the Term, John Doe shall be primarily responsible for Manager’s activities under this Agreement. Notwithstanding the foregoing, it is understood and agreed that John Doe may delegate day-to-day responsibilities to other employees of Manager provided John Doe remains primarily responsible for the activities and services provided by Manager. Notwithstanding anything to the contrary contained herein, in the event that John Doe shall cease to be employed by Manager or shall cease to be primarily responsible for Manager’s activities hereunder (“Key- Man Event”), Artist shall have the right to terminate the Term of this agreement effective upon the date of Artist’s notice to Manager of such Key-Man Event.

Overall, a personal manager is an essential member of your music business team and one that can truly make or break your career. They can be a driving force behind your success or a stumbling block to your advancement; consequently, the negotiation of a written management agreement helps to ensure that an initial managerial arrangement doesn’t have a negative impact on an artist’s career going forward and that all parties fully understand what they sign and feel protected.

This article is not intended as legal advice, as an attorney specializing in the field should be consulted. Some of the clauses have been condensed and/or edited for content purposes, so none of these clauses should be used verbatim nor do they act as any form of legal advice or counseling.

iHeartRadio Expands Services For Users

Hot on the heels of announcing 100 million registered users, iHeartRadio recently released their newest services, iHeartRadio Plus and iHeartRadio All Access (powered by Napster) and we’re excited to announce that these services are now available for TuneCore Artists to distribute their music to!

iHeartRadio already offers listeners access to over 750 live streams of radio stations across the U.S., as well as the ability to build a playlist or ‘user-generated’ radio station based on an artist of their choosing. Here’s a look at how the new services stand to impact users and artists:

  • With iHeartRadio Plus, users will have access to offline listening, unlimited skips and replays, and customized radio stations for $4.99/month;
  • With iHeartRadio All Access, users get a traditional on-demand streaming platform complete with a catalog millions of songs (via Napster) for $9.99/month.
  • For TuneCore Artists, both of these new services open up the opportunity for discovery and democratic listening among iHeartRadio subscribers!

What does that mean for TuneCore Artists who have already distributed to iHeartRadio and Napster?

Since your music is already on iHeartRadio and Napster (fka Rhapsody), you’re good! You do not need to take any action to make your current active releases available on iHeartRadio Plus or iHeartRadio All Access. Any fans who search for your release(s) on iHeartRadio should be able to find them on both of these services.

For information about getting your music on iHeartRadio, learn more here.

To add your current active releases to iHeartRadio and/or Napster, head over to your Store Manager.

TuneCore Artists know they can always look to us to offer them a plethora of stores and streaming services to send their new releases to. We know that independent music is something that fans seek globally, and we strive to make sure that artists can take advantage of all available outlets in order to build their fan base.

This is a big step for iHeartRadio and their listeners, and we’re excited about what this means for our artists moving forward.

February Industry Wrap-Up

The cold weather is slowly on its way out and SXSW is on the horizon – must be the end of February! That’s why we’re here to wind down the month in music industry happenings. Just because it was a short month doesn’t mean there was no action – read on to catch the latest on Facebook’s upcoming video ventures, collaboration among the YouTube and Google Play Music teams, and Spotify’s ‘sunny’ new parter.

 

Facebook to Introduce Longer-Form ‘Premium’ Music Video Content


As online videos become an even more integral part of marketing and promotion for artists – from major label mainstays to indie up-and-comers – competition to serve hungry fans continues to heat up among all the big name platforms. If you’ve been reading around, you know that Facebook is a key contender in its attempts to offer users exciting ways to consume video content, including it’s rolling out of Facebook Live which paid some big name creators to help promote the service in its early stages.

Recently, Facebook’s VP of Partnerships Dan Rose expressed their desire to begin offering ‘premium videos’, with content shifting into the 5-10 minute length. According to reports, Facebook will offer indie artists and labels the opportunity to test and create episodic content while being paid directly by Facebook in the early stages; Rose says the model will shift to a rev-share after that. With almost two billion users, Facebook remains a major platform for promoting and marketing musical content.

Like anything else surrounding the world of copyright and video content, Facebook is facing concerns from members of the music industry surrounding licensing. When you’re hoping to take a slice of YouTube’s market share, at the very least, a platform should have systems in place that protect copyright holders and ensure that they can be paid properly for the use of their works. Like YouTube’s Content ID system that allows TuneCore to help artists collect their sound recording revenue when their music is used in videos across the platform, sources say that Facebook is in the process of building a parallel copyright ID program. This will be crucial in the potential success of Facebook’s upcoming premium video plans, and it goes to show the importance being placed on protecting copyrighted work – good news for artists of all stripes!

 

Google Merges Play Music & YouTube Music Teams


This past month it was revealed to media outlets that the product teams in charge of directing YouTube Music and Google Play Music will be combined into a single unit. Confirmed by Google, a spokesperson said: “Music is very important to Google and we’re evaluating how to bring together our music offerings to deliver the best possible product for our users, music partners and artists. Nothing will change for users today and we’ll provide plenty of notice before any changes are made.”

What does this mean for artists? Well, we already know that independent music makers can make their music available on YouTube and Google Play via TuneCore, but with the platforms technically being under the same umbrella, this appears to be a play towards creating a better overall user experience for music consumers. As streaming services acquire new subscribers every day, access to independent music grows and artists are able to make themselves available to fans who use all different ‘preferred platforms’ for discovering new tunes.

There’s an array of possible reasons for this internal shift at one of the biggest media companies in the world – perhaps as a move to simplify in-app listening, and more interestingly, a way for Google to negotiate deals with artists and labels. Either way, users of both apps will be able to continue using them as normal for now, and it’s highly possible that artists can look forward to a simpler way to reach YouTube- and Google Play-loyal fans in the near future.

 

Spotify’s Latest Partner is … a Weather Company?


We all know that weather impacts our moods. We all also know that music can play a similar role. But how do listeners build playlists that capture any given climate?

Ever the forward-thinking streaming platform, Spotify announced in February that is partnering with weather reporting website AccuWeather to develop and launch a site called Climatune, offering playlists for various cities based on varying weather conditions. This comes after partnerships with modern apps and companies like Uber, Tinder and Headspace, and shows that Spotify has no intention of slowing down its pace of clever collaboration with those looking to bring music into the fold.

So instead of just throwing on Banarama on those sunny days or curling up to some Morrisey during a morning rainstorm, Climatune offers playlists to music fans based on the hours and hours of research in major cities pointing to habits of listeners based on the skies. For example, did you know that residents of Chicago get excited when it rains, causing a huge lift in happier music? Houston Spotify subscribers, on the other hand, boost their acoustic listening by 121% on rainy days.

While it remains to be seen just how many subscribers will utilize this cool new service, we here at TuneCore see it as just another interesting avenue for music discovery via the popularity of playlists.