“Progress is to respect what is present and vice versa, although it may not speak out.”
On Wednesday, Instagram announced that it will now be running ads in IGTV, its home for long-form videos, and sharing 55% of that revenue with those Instagrammers participating in a rollout test program only available to a small group of marketers and creators. Different ad experiences like 15-second ads and skippable ads will be tested starting next week. The company is also introducing paid badges during livestreams that will allow fans to directly support their favorite creators.
Warner Music Group’s recent IPO filing is expected to sell 70 million shares with a price target of between $23 and $26 per share, valuing the company at between $11.7 billion and $13.3 billion. This compares to the near $33 billion valuation of Universal Music Group in its recent sale of equity to a consortium led by Tencent.
Canadian performance rights organization SOCAN has created the Encore! program to help deliver livestream performance royalties on Facebook or Instagram to rights holders during the pandemic. The program is retroactive from March 15 of this year until March 7, 2021, and each online concert is eligible for a total payment of CAD $150 (USD $109), with the royalties split amongst all the rights holders of the music performed. SOCAN has allotted $200,000 (USD $145,000) for each quarter.
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In this newsletter:
- Instagram Introduces IGTV Ads, Creator Monetization
- Warner Music Group IPO Could Lead to $13.3 Billion Valuation
- In Canada, Artists are Earning Performance Royalties for Livestreams
- Copyright Office Says Landmark Piracy Law Needs Fine-Tuning
- German Collecting Society GEMA Paid Over $1 Billion to Publishers and Songwriters in 2019
- UMG, Sony Music, Lil Baby, Future Face $3 Million Copyright Infringement Claims
Now, the details...
Compiled by Heidi Seo
Exploration Weekly - May 29, 2020
Instagram Introduces IGTV Ads, Creator Monetization
Facebook-owned Instagram announced on Wednesday that it will start running ads in IGTV, its home for long-form videos, and sharing that revenue with creators, marking the first time Instagrammers will be able to monetize their IGTV videos. The company is also introducing paid badges during live streams that will give fans a way to directly support their favorite creators. Starting next week, 15-second ads will play after people click to watch full-length IGTV videos from the preview in their feeds. The rollout will be treated as a test and will only be available to a small group of marketers and creators. Creators who participate in the program will receive 55% of the ad revenue sold around their videos. Different ad experiences will be tested as well, including skippable ads.
Warner Music Group IPO Could Lead to $13.3 Billion Valuation
Warner Music Group’s IPO filing is expected to sell 70 million shares with a price target of between $23 and $26 per share, which would value the music group at between $11.7 billion and $13.3 billion. This marks impressive growth for parent company Access Industries, which acquired WMG for $3.3 billion in 2011. According to Music Ally, Access will retain more than 99% of WMG’s voting rights post-IPO. The $11.7 billion - $13.3 billion valuation compares to the near $33 billion valuation of rival Universal Music Group in its recent sale of equity to a consortium led by Tencent.
In Canada, Artists are Earning Performance Royalties for Livestreams
Performance rights organization SOCAN has created a new program called Encore! to help deliver royalties to performers during the pandemic. It is retroactive from March 15 of this year until March 7, 2021. Each online concert on Facebook or Instagram is eligible for a total payment of CAD $150 (USD $109), with the royalties split amongst all the rights holders of the music performed. The set must be at least 30 minutes in length or consist of 10 songs and have been viewed by at least 100 people. Claims must be made within 90 days. SOCAN has allotted $200,000 (USD $145,000) for each quarter. ASCAP is similarly allowing members to submit setlists from their live-streamed performances on the ASCAP-licensed platforms via the OnStage program. SOCAN’s submission form has not changed; the “venue” must simply be marked as Facebook or Instagram.
Copyright Office Says Landmark Piracy Law Needs Fine-Tuning
In a nearly 200-page report issued Thursday, the U.S. Copyright Office reports that “Congress may wish to fine-tune” the statute outlined in the safe-harbor provision of the Digital Millennium Copyright Act. The report specifically takes up Section 512 of the DMCA, a 1998 law that spells out what online service providers must do to be free of copyright liability for infringements on their networks. The statute guides digital services to take reasonable steps to expeditiously remove pirated works upon notice.
German Collecting Society GEMA Paid Over $1 Billion to Publishers and Songwriters in 2019
German performing rights organization GEMA generated revenues of €1.069 billion ($1.2 billion) in 2019, an increase of €50.2 million (5%) compared to 2018. Of this amount, €905.6 million ($1.02 billion) was distributed to members and rights holders worldwide, according to GEMA, which published its financial results on May 27. The news follows GEMA’s launch in March of an emergency coronavirus aid fund worth up to €40 million ($43 million) for its songwriter and composer members, with the society’s CEO Dr. Harald Hecker commenting in a statement that “GEMA’s very good 2019 financial year will form a ‘crisis airbag’ for [its] members.” Public performance was GEMA’s strongest revenue sector in 2019, increasing by 4.9%. Digital revenues rose by over 72%, largely driven by streaming.
UMG, Sony Music, Lil Baby, Future Face $3 Million Copyright Infringement Claims
Florida man, Jesse Harris, is suing Universal Music Group (UMG) and Sony Music for allegedly infringing upon his music in Lil Baby’s recently released My Turn and Future and Drake’s “Life is Good,” respectively. The complaint states that Lil Baby’s My Turn album, which was released on February 28th as part of a UMG deal, infringes upon music that he published on his personal Facebook page, under the temporary name of Larry Harris. For this alleged copyright infringement, Harris is seeking $3 million in damages. Another complaint by the Florida man against Sony Music alleges that copyright infringement occurred in Future and Drake’s “Life is Good,” and that some portion of the work was also pulled from his personal Facebook profile. For this alleged unauthorized use, Harris is seeking an additional $3 million in damages. Finally, the filing seeks $50 million from Lionsgate Entertainment, this time for allegedly stealing plot points from his personal Facebook profile for use in 2019’s Bombshell. None of the defendants had publicly responded to Harris’ suit.
- Simple ways fans can help support musicians during the pandemic.
- How We Work Now: NMPA President/CEO David Israelite.
- How musical nostalgia creates future sounds.
- Future rules the Billboard 200 with his seventh No. 1 album, "High Off Life".
- Lady Gaga drops a new video of "Rain On Me”, her first pop collaboration with Ariana Grande.
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