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RAIN 8/17: Today is the deadline to file with SoundExchange for Pureplay Webcaster settlement
·Aug 17, 11:10 AM
Posted by: Michael Schmitt

DETAILS ON DEAL; FORMS NEEDED FOR WEBCASTERS TO OPT IN

Today, August 17, is the deadline for webcasters to elect to the Pureplay royalty settlement with SoundExchange. To opt in to this deal, webcasters must submit one of two forms: large webcasters must complete the form found here (PDF), while small webcasters must submit the form found here (PDF).

SoundExchange first announced the details of the royalty settlement with Pureplay webcasters early last month (RAIN coverage here) and is most appropriate for webcasters that derive the majority of their revenue from streaming music. The agreement splits webcasters into three groups: large, small and webcasters with subscription plans. Large webcasters pay the greater of 25% of revenues or a per-performance rate. Small webcasters pay the greater of a percentage of total revenues or a percentage of total expenses — both percentages change from 2006 to 2014. Webcasters with subscription plans pay the same rates as those agreed upon with the NAB. More details of the Pureplay settlement deal can be found here.

DIGITAL MUSIC SALES PROJECTED TO SURPASS PHYSICAL NEXT YEAR IN U.S.

Data from the International Federation of the Phonographic Industry shows that digital music sales in the U.S. are on track to surpass physical sales by 2010. Worldwide digital sales are predicted to overtake physical sales in 2016. Consumers in the U.S. purchase the most digital music relative to their total music purchases, with sales increasing consistently from 2004 until 2007, then jumping 12% in 2008. “Because digital music hasn’t been around for long, it’s important to note that these dates are extrapolations based on known data,” notes Ars Technica (here). “Nonetheless, these conservative estimates show that digital music is well on its way to eclipsing physical incarnations as the format of choice, and it’s going to happen sooner than you might think.”

WOXY JUST ONE COMPONENT OF FUTURE SOUNDSOVERALL MUSIC MARKETING STRATEGY

The addition of leading alternative/indie music webcaster WOXY to Future Sounds’ media line-up fits into the company’s aim to break new up-and-coming artists and connect advertisers to “taste-maker” consumers, writes Billboard. Los Angeles media company Future Sounds bought WOXY in January, making the Internet radio station the fifth pillar in the company’s business model — the other four include Future Sound Records, live events, merchandise and consulting.

Together, it all “works like a flow chart: grab a promising band, record a single, put on a national promo tour with built-in audience, promote through Internet radio and its PR agency, sell merchandise and all the while retain an independent spirit,” writes Glenn Peoples of Billboard (here). “And because the model is fueled mainly by sponsorships and the indie aesthetic, not music sales, Future Sounds can emphasize single tracks and live music. That’s a combination that has proven successful in the world of indie rock-driven music blogs: hear a song, check out a band and give a national brand your attention.”

TECH FIRMS SUCCESSFULLYBROADCASTSOUTH AFRICAN SOCCER MATCH VIA WIMAX

The play-by-play coverage of a soccer match in South Africa was broadcast live online using WiMax — a wireless Internet technology that is capable of covering a much wider area than Wi-Fi. The broadcast was a test by Tieline Technology, Siemens and the South African Broadcasting Corporation in a trial for the FIFA World Cup, which will take place in South Africa next year. “The potential for using WiMax technology in broadcast applications is only just being recognized,” said Tieline’s Darren Levy. For more details on the test broadcast, read Radio World’s coverage here.

LANE SAYS INEFFECTIVE, LOW-CPM NETWORK ADS DON’T HELP NET RADIO

Radio analyst Jennifer Lane has some interesting analysis on a recent study which examined the effectiveness of different online ad systems. The study found, namely, that ads on “branded content sites” outperformed portals (like Yahoo, AOL and MSN) and ad networks. “This could easily apply to Internet radio and online audio campaigns as well,” writes Lane at her Audio4Cast blog (here). “While it’s tempting to compete for low cpm network radio ad dollars, the downside to this is that advertisers realize mediocre results and fail to reinvest or invest more in Internet radio.”



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