Exploration Weekly - The MLC Awaits CRB Remand Proceedings / Univision Launches PrendeTV / YT Default-Enables Post-Rolls on 10-Min Monetizing Videos

“Learn the rules like a pro, so you can break them like an artist.”

Pablo Picasso

This week, The MLC consulted with the US Copyright Office (USCO) concerning the rates and terms applied under the new blanket mechanical license. The Copyright Royalty Board (CRB) is currently undergoing remand proceedings as a result of the appeal of the Phonorecords III rate proceeding by digital service providers. Once there is a final determination of rates and terms pursuant to the remand, those final rates and terms will be used by The MLC and will also apply retroactively back to January 1, 2018.

Spanish-language broadcaster Univision is launching a free, ad-supported streaming service called PrendeTV - the first such service built exclusively for Hispanic audiences in the US. It is set to debut in the first quarter of the year with some 10,000 hours of Spanish-language programming, including novelas, comedies, global TV series, sports and feature films.

YouTube has now, by default, turned on post-roll ads (ads that appear at the conclusion of a clip) on all monetized videos that are longer than 10 minutes. According to Search Engine Journal, all three formats (pre-roll, mid-roll, and post-roll ads) are turned on by default. These can also be switched off during the upload flow on future videos, or on existing videos within the monetization tab.

Please join us on Thursday, January 21st at 2:30 PM PST for an exciting panel hosted by the Association of Independent Music Publishers (AIMP) on the “Music Industry Report - 2020: Exposing the Value Gap”. The event will feature Exploration CEO Aaron Davis and VP of Research at the Nashville Chamber of Commerce, Rupa DeLoach, and will be moderated by Exploration COO Rene Merideth. Zoom registration available here.

In this newsletter:

Announcement Concerning Interim Mechanical Royalty Rates Pending the Outcome of Copyright Royalty Board Remand Proceedings in Phonorecords III
Univision to Launch Ad-Supported Streaming Platform
YouTube Turns On Post-Roll Ads by Default on All 10-Minute, Monetizing Videos
Bandsintown Introduces “Plus” Subscription Service for Streaming Concerts from Indie Acts
Spending on Streaming Services and Software Could Reach $112 Billion in 2021
Germany Generated 139 Billion Music Streams During COVID-Hit 2020, Nearly a Third More Than in 2019
Report Claims Twitch Viewing Hours Grew by 83% in 2020

Now, the details...
Compiled by Heidi Seo

Exploration Weekly - January 15, 2021

Announcement Concerning Interim Mechanical Royalty Rates Pending the Outcome of Copyright Royalty Board Remand Proceedings in Phonorecords III

The Mechanical Licensing Collective (The MLC) has consulted with the U.S. Copyright Office (USCO) regarding the rates and terms that should be applied under the new blanket mechanical license during the remand process occurring before the Copyright Royalty Board (CRB) as a result of the appeal of the Phonorecords III rate proceeding by digital service providers. Accordingly, the rates and terms that will be applied by The MLC to the blanket license during this period – effective January 1, 2021 until the outcome of the CRB’s Phonorecords III remand proceeding – will be those established under the Phonorecords II proceeding. Once there is a final determination of rates and terms by the CRB pursuant to the remand, those final rates and terms will be used by The MLC and will also apply retroactively back to January 1, 2018.

Univision to Launch Ad-Supported Streaming Platform

Spanish-language broadcaster Univision is entering the streaming wars with a free ad-supported streaming platform called PrendeTV, the company announced on Tuesday. Billed as the first such service built exclusively for Hispanic audiences in the US, it's set to debut in the first quarter of the year. PrendeTV takes its name from a Spanish word meaning "turn on" or "switch on." The service will launch with some 10,000 hours of Spanish-language programming, including novelas, comedies, global TV series, sports and feature films. The service will be available online at Prende.tv and via mobile and connected TV apps. Univision says the service will feature channel-based and on-demand programming, with limited commercial breaks within programs.

YouTube Turns On Post-Roll Ads by Default on All 10-Minute, Monetizing Videos

YouTube has now turned on post-roll ads - or ads that appear at the conclusion of a clip - by default on all monetized videos that are longer than 10 minutes. The change was noted by Search Engine Journal and in a recent Creator Insider video. Creators who are eligible for monetization can choose to serve any combination of pre-roll, mid-roll, or post-roll ads when a video is longer than 10 minutes. In July, YouTube actually lowered the video length threshold for mid-roll ad eligibility from 10 minutes to eight minutes. And now, all three formats are turned on by default. Post-rolls - which can run from 12 seconds to three minutes in length - can reportedly be turned off during the upload flow on future videos, or on existing videos within the monetization tab. Creators can also choose to switch off pre-roll and mid-roll ads by default. In November, YouTube announced a significant change to the way that ads are served, stating that it would distribute ads on brand-safe channels that aren’t members of the Partner Program (YPP), which endows eligible creators with the ability to collect ad revs from their videos.

Bandsintown Introduces “Plus” Subscription Service for Streaming Concerts from Indie Acts

The live music web hub Bandsintown is introducing a streaming concert subscription service, Bandsintwon Plus, that will offer shows from independent artists like Phoebe Bridgers, Jeff Tweedy, Soccer Mommy, Joe Bonamassa, and Mt. Joy for a flat $9.99 monthly fee. The “all access pass” for Bandsintown Plus promises more than 25 concerts a month. Other artists set for livestreams on the new service include a Fleet Foxes solo set, Chromeo, Rodrgio y Gabriela, Flying Lotus, Little Dragon, Tycho, Local Natives, Scarypoolparty, Empress Of, Omar Apollo and Tory y Moi. All these promised artists are on the lineup just for January and February.

Spending on Streaming Services and Software Could Reach $112 Billion in 2021

According to the 2021 forecast by the Consumer Technology Association (CTA), total spending on streaming services and software is expected to reach a record $112 billion, an 11% growth over 2020. This follows 31% growth in 2020 over 2019. The CTA research additionally suggests that overall retail sales revenue for the technology industry will climb to $461 billion in the U.S. in 2021 - a 4.3% increase year-over-year - with streaming services, 5G connectivity, and digital health devices as leading drivers due to Americans staying home during the pandemic. Music, audio book and podcast listening could top $10 billion; while video game software and services could exceed $47 billion.

Germany Generated 139 Billion Music Streams During COVID-Hit 2020, Nearly a Third More Than in 2019

According to analysis released by GfK Entertainment and BVMI, over 139 billion music streams were generated in Germany last year. That is almost a third more than in 2019 (107 billion), and three quarters more than in 2018, when 79.5 billion streams were recorded in the market. Music Business Worldwide reported back in August that audio streaming fuelled a recorded music revenue rise in the market of 4.8% year-on-year in the first six months of 2020. In addition, audio streaming services like Spotify and Apple Music generated approximately €514.9 million ($562 million) in Germany during the same first half of last year, which German Music Industry Association BVMI reported was up 20.7% year-on-year. Recorded music revenues in Germany grew by 8.2% in 2019 to hit €1.623 billion ($1.82 billion) on a retail basis.

Report Claims Twitch Viewing Hours Grew by 83% in 2020

Twitch saw its viewing hours grow by 83%, from 9 billion hours in 2019 to 17 billion in 2020, says a report by video streaming industry firm StreamElements, using data from analytics firm Arsenal·gg. Games were the dominant theme for what people were watching. While the top category for viewing hours was “Just Chatting” (1.9 billion hours in 2020 according to the report), the rest of the top 10 were all games, led by League of Legends with 1.4 billion hours.

Random Ramblings

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The 21 artists of the #YouTubeBlackVoices Artist Class of 2021.
How a viral TikTok video landed one artist a record deal.
5 insights to learn from hip-hop music and culture.
H.E.R. drops a new video of her moving ballad "Hold Us Together".

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