Download - User-centric settlement for music streaming
![Page 1: User-centric settlement for music streaming](https://reader034.vdocuments.site/reader034/viewer/2022052321/5461c162af79595d448b6d61/html5/thumbnails/1.jpg)
User-centric settlement for streaming?
Arnt Maasø, Associate professor, University of Oslo, Norway
![Page 2: User-centric settlement for music streaming](https://reader034.vdocuments.site/reader034/viewer/2022052321/5461c162af79595d448b6d61/html5/thumbnails/2.jpg)
![Page 3: User-centric settlement for music streaming](https://reader034.vdocuments.site/reader034/viewer/2022052321/5461c162af79595d448b6d61/html5/thumbnails/3.jpg)
OutlinePhysical era vs. streaming era Challenges for artists and music business Results from research on user-centric settlement
![Page 4: User-centric settlement for music streaming](https://reader034.vdocuments.site/reader034/viewer/2022052321/5461c162af79595d448b6d61/html5/thumbnails/4.jpg)
The era of physical units
![Page 5: User-centric settlement for music streaming](https://reader034.vdocuments.site/reader034/viewer/2022052321/5461c162af79595d448b6d61/html5/thumbnails/5.jpg)
Artist received a !direct share of !
a fan’s purchase
![Page 6: User-centric settlement for music streaming](https://reader034.vdocuments.site/reader034/viewer/2022052321/5461c162af79595d448b6d61/html5/thumbnails/6.jpg)
My streamsYour streams
![Page 7: User-centric settlement for music streaming](https://reader034.vdocuments.site/reader034/viewer/2022052321/5461c162af79595d448b6d61/html5/thumbnails/7.jpg)
Example
![Page 8: User-centric settlement for music streaming](https://reader034.vdocuments.site/reader034/viewer/2022052321/5461c162af79595d448b6d61/html5/thumbnails/8.jpg)
100 streams1000 streams
SUM: 1100 streams
‘Pro rata share’ = personal streams !divided by total sum of streams
=1000/1100 =100/1100
Pro rata model
![Page 9: User-centric settlement for music streaming](https://reader034.vdocuments.site/reader034/viewer/2022052321/5461c162af79595d448b6d61/html5/thumbnails/9.jpg)
100 streams1000 streams
Pro rata model
=1000/1100 =100/1100
![Page 10: User-centric settlement for music streaming](https://reader034.vdocuments.site/reader034/viewer/2022052321/5461c162af79595d448b6d61/html5/thumbnails/10.jpg)
90,9%
=1000/1100 =100/1100
100 streams1000 streams
9,1%
Pro rata model
![Page 11: User-centric settlement for music streaming](https://reader034.vdocuments.site/reader034/viewer/2022052321/5461c162af79595d448b6d61/html5/thumbnails/11.jpg)
User-Centric model
![Page 12: User-centric settlement for music streaming](https://reader034.vdocuments.site/reader034/viewer/2022052321/5461c162af79595d448b6d61/html5/thumbnails/12.jpg)
50% 50%Shared between the artists
Miriam listens toShared between the artists
Arnt listens to
User-Centric model
![Page 13: User-centric settlement for music streaming](https://reader034.vdocuments.site/reader034/viewer/2022052321/5461c162af79595d448b6d61/html5/thumbnails/13.jpg)
Challenges with existing model?
Economic disconnect between fans and artists Favors ‘quantitative’ usage Niche artists with niche audience may struggle May inhibit innovation
![Page 14: User-centric settlement for music streaming](https://reader034.vdocuments.site/reader034/viewer/2022052321/5461c162af79595d448b6d61/html5/thumbnails/14.jpg)
Results from one sample month (August 2013 + 2012)
All streams by all anonymized users of
WiMP Music in Norway
![Page 15: User-centric settlement for music streaming](https://reader034.vdocuments.site/reader034/viewer/2022052321/5461c162af79595d448b6d61/html5/thumbnails/15.jpg)
Share labelsUniversal
Sony Music
WMG & EMI
Phonofile
Other
Share of revenue August 2013
Pro rata model User-centric model
Market share inferred from the model, and not based on actual information about price tiers or price-per-stream.
![Page 16: User-centric settlement for music streaming](https://reader034.vdocuments.site/reader034/viewer/2022052321/5461c162af79595d448b6d61/html5/thumbnails/16.jpg)
Artists: cumulative shareC
umul
ativ
e sh
are
20 %
40 %
60 %
80 %
Top 5000 streamed artists August 201310 100 500 1000 5000
8,5 %
34,1 %
60,1 %70,8 %
89,7 %
7,6 %
31,8 %
58,3 %69,4 %
89,2 %Pro rata modelUser-centric model
![Page 17: User-centric settlement for music streaming](https://reader034.vdocuments.site/reader034/viewer/2022052321/5461c162af79595d448b6d61/html5/thumbnails/17.jpg)
Cum
ulat
ive
shar
e
0 %
20 %
40 %
60 %
80 %
Top 5000 streamed artists August 2012 and August 2013
10 100 500 1000 5000
89,1 %
69,2 %58 %
31,6 %7,9 %
88,2 %70,4 %
59,7 %
34,5 %
9,4 %
User-Centric 2012User-Centric 2013
Comparison 2012-2013
Note: The data in the 2012-2013 comparison here are filtered for users with more than 100 streams. Data for all other figures are with all users with more than one stream.
![Page 18: User-centric settlement for music streaming](https://reader034.vdocuments.site/reader034/viewer/2022052321/5461c162af79595d448b6d61/html5/thumbnails/18.jpg)
Share of revenue local artists
Cum
ulat
ive
shar
e
10 %
20 %
30 %
Local artists among top 5000 artists10 100 500 1000 5000
2,7 %
11,1 %
19,0 %21,5 %
25,4 %
1,6 %
9,3 %
16,4 %18,6 %
22,5 %
Pro rata modelUser-centric model
![Page 19: User-centric settlement for music streaming](https://reader034.vdocuments.site/reader034/viewer/2022052321/5461c162af79595d448b6d61/html5/thumbnails/19.jpg)
International!70,9 %
29,1 %
User-centered model favors local artists
13% !increase
* Percentages here are of the top 5000 artists (accounting for near 90% of all streams), tagged
with nationality
International!74,2 %
25,8 %Pro rata model User-centric model
![Page 20: User-centric settlement for music streaming](https://reader034.vdocuments.site/reader034/viewer/2022052321/5461c162af79595d448b6d61/html5/thumbnails/20.jpg)
User-centered model favors local artists
![Page 21: User-centric settlement for music streaming](https://reader034.vdocuments.site/reader034/viewer/2022052321/5461c162af79595d448b6d61/html5/thumbnails/21.jpg)
WiMP Passion indexSt
ream
ing
in h
ours
Number of users
* LOW passion
* HIGH passion
![Page 22: User-centric settlement for music streaming](https://reader034.vdocuments.site/reader034/viewer/2022052321/5461c162af79595d448b6d61/html5/thumbnails/22.jpg)
Passion index and user-centered model
31 of 100 top artists on the passion index are local 8 of these have significantly more (5-800%) streaming by fans in a 30 km radius from where they are from Almost all artists with high passion index benefit from a user-centric model Highlights the importance of developing close fan-artist relations
![Page 23: User-centric settlement for music streaming](https://reader034.vdocuments.site/reader034/viewer/2022052321/5461c162af79595d448b6d61/html5/thumbnails/23.jpg)
Fair for artists - fair for fans?May this be an incentive for labels to develop local talent?
Added incentive for artists to connect with local fans?
Increase legitimacy for streaming services?
![Page 24: User-centric settlement for music streaming](https://reader034.vdocuments.site/reader034/viewer/2022052321/5461c162af79595d448b6d61/html5/thumbnails/24.jpg)
Thank you!
www.cloudsandconcerts.comArnt Maasø, University of Oslo <[email protected]>
Arnt MaasøXin Jian Ola Løvholm
The Clouds & Concerts research project involves: Anne Danielsen (project leader, U of Oslo), Arnt Maasø (project leader, U of Oslo), Yngvar Kjus (post doctor), Anja Nylund Hagen (PhD), Marika Lüders, (researcher, SINTEF), Beathe Due, Johannes Bjelland, Kenth Engø-Monsen, Pål Roe Sundsøy Wenche Nag (Researchers, Telenor Group), Research assistants: Ola Løvholm, Xin Jian, Marc Casanovas, Linn Jakhelln, Gro Kirkeby, Erik N. Strutz, Hanne Tråsdahl, Ragnhild Toldnes, Inger Helseth, Helena Zarifa Pedersen.
#sxstreaming
![Page 25: User-centric settlement for music streaming](https://reader034.vdocuments.site/reader034/viewer/2022052321/5461c162af79595d448b6d61/html5/thumbnails/25.jpg)
Panel discussion
Kjartan Slette!Head of strategy!
WiMP Music
Arnt Maasø!Assoc. professor!
Univ. of Oslo
Hedvig Mollestad!Thomassen!
Artist
Moderator: Inger Elise Mey!Director TONO
Trond Tornes!Marketing Dir.!
Phonofile
#sxstreaming