Exploration Weekly - CISAC Reports Global Music Collections Up 7.6% to New High / Top Artists Boost U.K. Music Exports in 2023, But Global Competition Slows Growth / A2IM, SAG-AFTRA and More Call Out TikTok Over Abrupt Merlin Split

There is a lot of video content out there, and much of it uses music! Synchronization licensing is the process by which production companies of audiovisual works clear the rights for outside music to use in their videos.

Synchronization is a burgeoning corner of the music industry, and for a musician, a placement in a major television show, film, advertisement or video game can boost their career in innumerable ways.

Our guide has been written to provide a comprehensive overview of the world of synchronization licensing.

Check out some of our other guides on music industry topics at Exploration Learn, or subscribe to our YouTube channel for more information.

In this newsletter:

• CISAC Reports Global Music Collections Up 7.6% to New High - But Digital Growth Rate Drops
• Adele, Harry Styles Help Boost U.K. Music Exports in 2023, But Global Competition Slows Growth
• A2IM, SAG-AFTRA and More Call Out TikTok Over Abrupt Merlin Split
• NBA Teams Accuse Music Publishers, Including Kobalt, of “Extortion” in Copyright Dispute, Claim “Fair Use”

In 2023, global music royalty collections hit a record €11.75 billion, up 7.6%, according to CISAC. This growth was driven by a 9.6% rise in digital royalties from streaming subscriptions and an 8.2% recovery in live performances after the pandemic.

While U.K. export sales rose 7.6% last year, that was down from 20% growth in 2022 thanks in part to competitors like Latin America and South Korea.

The indie music community is criticizing TikTok as its agreement with indie collective Merlin nears expiration. Organizations have voiced concerns over TikTok’s decision to pursue direct deals with labels, reportedly offering lower compensation than the Merlin agreement.

Now, the details...

Exploration Weekly - October 25, 2024
Compiled by Ana Berberana

CISAC Reports Global Music Collections Up 7.6% to New High - But Digital Growth Rate Drops

Global music royalty collection for creators rose by 7.6% to a new record high of €11.75 billion in 2023. According to CISAC’s Global Music Collections report, the increase was driven by continued steady growth in digital income thanks to streaming subscriptions, as well as a strong recovery of 8.2% in live and public performance activity after three years of disruption by the pandemic. Digital royalties rose 9.6% as steadily increasing uptake of subscription services worldwide combined with price increases across all platforms. There was also especially strong growth in the subscription video sector. However, the growth in digital royalties has declined sharply after a decade of double-digit annual results. “Digital growth was helped by continued rises in streaming consumption, expanding platforms and price increases by subscription services,” stated the CISAC report. “However, despite overall streaming revenue growth, the vast majority of creators are not enjoying increased royalties from digital. “Digital collections are generally growing faster in smaller and developing markets where streaming provides a relatively large share of creators’ remuneration.” Live and public performance grew strongly, up 21.8% to overtake pre-pandemic levels for the first time. According to a sample of over 100 music societies, collections from live concerts and festivals grew 36.5%, while public performance licensing revenue rose by a smaller 10.9%. Broadcast collections fell by 5.3% in 2023. TV and radio income was 0.8% below its pre-pandemic level of 2019. Societies report a continued gentle plateau in collections for traditional radio and TV income. Royalties are most affected by the fall in viewer numbers and TV advertising income.

Adele, Harry Styles Help Boost U.K. Music Exports in 2023, But Global Competition Slows Growth

Global superstars like Adele, Harry Styles and Ed Sheeran helped British music exports climb to a record high of £775 million ($974 million) last year, though increasing competition from other international markets such as Latin America and South Korea is putting the U.K.’s long-held status as a “music superpower” at risk, according to labels trade body BPI. BPI, which represents over 500 independent labels, as well as the U.K. arms of Universal Music Group, Sony Music Entertainment and Warner Music Group, says 2023’s export tally is the highest annual total since the organization began analyzing labels’ overseas income in 2000 and more than three times the amount recorded a decade ago. However, last year’s 7.6% rise in export sales — comprising all physical music sales and streams of U.K. artists overseas — was less than half of the 20% increase reported in 2022, with BPI estimating that artists from the U.K. now account for less than 10% of global music streams, according to figures released Monday (Oct. 21). In comparison, as recently as 2015, U.K. artists were estimated to collectively account for 17% of music consumption worldwide, reports BPI, which bases its numbers upon label trade revenue. “It is encouraging to see British recorded music continuing to perform strongly on the world stage, but we can and must do even better in the face of fierce global competition as rival markets grow at pace,” said BPI CEO Jo Twist in a statement.

A2IM, SAG-AFTRA and More Call Out TikTok Over Abrupt Merlin Split

It’s safe to say the indie music community isn’t a fan of TikTok, which is facing a fresh wave of criticism ahead of its Merlin agreement’s quick-approaching expiration. The American Association of Independent Music (A2IM), the Artist Rights Alliance (ARA), the American Federation of Musicians (AFM), and other organizations today expressed this criticism in a joint statement. As many know, the popular-but-controversial TikTok has decided not to renew its pact with indie collective Merlin, instead opting to explore direct deals with the appropriate labels. Earlier in October, leaks suggested that the proposed take-it-or-leave-it terms would in several instances pay substantially less than under the Merlin tie-up. Unsurprisingly, the situation isn’t sitting right with the affected labels, which are said to have until this coming Friday, October 25th, to choose between the reportedly reduced terms or having their respective catalogs pulled from the platform. It’s against this backdrop that the Worldwide Independent Network (WIN) one week ago publicly called out TikTok’s alleged hardball negotiation tactics – besides warning of adjacent “risks to cultural diversity” and urging the passage of the Protect Working Musicians Act. Now, the initially mentioned organizations as well as the Black Music Action Coalition (BMAC), the Music Artists Coalition (MAC), SAG-AFTRA, and Songwriters of North America (SONA) are taking aim at the ByteDance-owned app’s alleged effort to do “whatever it can to avoid compensating artists fairly.”

NBA Teams Accuse Music Publishers, Including Kobalt, of “Extortion” in Copyright Dispute, Claim “Fair Use”

NBA teams sued by music publishers over alleged unlicensed use of music have hit back, accusing music publishers like Kobalt Music Publishing and Prescription Songs of leveraging their rights “to extort” from the teams. In separate filings with the US District Court for the Southern District of New York on October 15, the NBA teams claimed that the publishers engaged in copyright misuse by attempting to “extort from the Team disproportionate payments” through threats of costly litigation and attorneys’ fees. The dispute stems from a July lawsuit filed by Kobalt Music, Artist Publishing Group (the publishing arm of Mike Caren-founded indie Artist Partner Group), and other publishers against 14 NBA teams, alleging unauthorized use of copyrighted music in the team’s social media videos and NBA.com content. The 14 teams are the Atlanta Hawks, Cleveland Cavaliers, Denver Nuggets, Indiana Pacers, Miami Heat, Minnesota Timberwolves, New York Knicks, New Orleans Pelicans, Orlando Magic, Philadelphia 76ers, Phoenix Suns, Portland Trail Blazers, Sacramento Kings, and San Antonio Spurs. Among other defenses, the NBA teams claimed that they “possessed an implied license” to use the publishers’ copyrighted works and that their use of the publishers’ music was “fair use” under US copyright law. Some of the teams also argued that many of the claims are time-barred under copyright laws’ three-year statute of limitations. The Minnesota Timberwolves, among other teams, alleged that the publishers were first made aware of the alleged infringements on March 8, 2021, well before the lawsuit was filed on July 18, 2024.

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