Exploration Weekly - Songwriter Mechanical Rates Increase to 12¢ Per Song / New Ad Spots on Top 4% TikTok Videos / Dance Music Sector Up 71% in 2021

Aaron Davis -

A settlement has been reached between the RIAA, NMPA, and NSAI to increase the mechanical rate for physical music and download sales to 12 cents per song - up from the 9.1 cent rate that has been in place since 2006. The trade bodies filed a motion yesterday to the Copyright Royalty Board, which is currently in process of setting rates for the 2023-2027 term.

According to TikTok, select creators of the top 4% of videos will be allowed to participate in the company’s new ad program, TikTok Pulse. Marketers can buy ad spots on these top videos, which are determined based on brand suitability, viewer engagement, video views, and “creator engagement signals”.

In an annual report published by the International Music Summit (IMS), the dance and electronic music sector saw revenues increase by 71% in 2021, representing a significant recovery following the major impact of COVID in 2020.

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Exploration Weekly - May 6, 2022

Major Labels, Publishers Reach Deal at CRB to Increase Songwriter Mechanical Royalties

Trade groups representing the major record labels, publishers and songwriters announced a settlement Thursday (May 5) to increase the mechanical rate for physical and download sales to 12 cents per song — up from the 9.1 cent rate that has been in place since 2006. The settlement between the RIAA and its record labels with the NMPA and the NSAI was filed as a motion to the Copyright Royalty Board after the parties reached an agreement. The CRB is currently in the midst of proceedings that will set mechanical rates for the 2023-2027 term. As part of the settlement, the CRB will also tie the 12-cent rate to the Consumer Price Index annually to calculate if any raises are required throughout the five-year term. For physical music only, the higher rates would only apply to new music that comes out during the 5-year term.

TikTok to Launch Ads on Top Videos, Offer Revenue Share for Creators

TikTok is launching an ad program that will let marketers buy ad spots on the top four percent of videos and allow select creators to receive a cut of the revenue, the company said on Wednesday at its NewFronts presentation in New York. Creators with at least 100,000 followers on TikTok will be allowed to participate in the ad program, called TikTok Pulse, but it’s not immediately clear what the revenue share will look like. The top four percent of videos will be determined based on brand suitability, viewer engagement, video views and “creator engagement signals,” executives said at TikTok’s NewFronts presentation. The ad spots can be purchased via TikTok’s ad management platform and advertisers will receive post-campaign audience reporting.

IMS Report Dance Sector Began Post-COVID Revival in 2021

The International Music Summit (IMS) published its annual report on the dance and electronic music sector as part of its flagship IMS Ibiza event. The top line stat in that report was that on a global level the sector made a significant recovery in 2021 following the major impact of COVID in 2020, although – with a total valuation of $6 billion – the sector is still not back to 2019 levels. According to IMS’s number crunching, in 2020 the dance sector’s revenues slumped 54% to $3.4 billion. Last year’s recovery equated to a 71% increase, but total revenues were still down on the $7.2 billion that IMS reckons the sector generated in 2019.

Douyin, TikTok’s Chinese Counterpart, Launches New Music Streaming Service

Douyin, ByteDance’s China-specific counterpart to TikTok, released a beta of a new music subscription service in China called Qishui Yinyue (translated to “Soda Music” in English). TikTok operates outside of China; Douyin, available only in China, is a separate platform with different e-commerce and social features. ByteDance has another music streaming service, Resso, that operates in Brazil, Indonesia and India. But Qishui Yinyue is available only in China “and there are no plans to offer it in any other markets,” the spokesperson told Billboard. China was the 10th-largest recorded music market in the world in 2021, according to IFPI.

MCPS Pay Outs Increased 15% in 2021

The UK’s mechanical rights collecting society MCPS has published a few stats regarding its operations in 2021, confirming that monies distributed to its music publisher and songwriter members last year were up 15% year-on-year to £181.7 million. Although it works with performing rights society PRS on administering its rights, MCPS is a standalone organization owned by the Music Publishers Association that issues licenses in various scenarios where songs are reproduced. The £181.7 million distributed to members last year is the highest pay out by MCPS since 2009.


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