maximizing online opportunities for audience engagement, advertiser value and profitability...

Maximizing Online Opportunities for Audience Engagement, Advertiser Value and ProfitabilityNASHVILLE 2010

Maximizing Online Opportunities for Audience Engagement, Advertiser Value and Profitability

There are many dangerous myths currently circulating that could very well get a company streaming music on the Internet into trouble. For instance, many broadcasters believe that ASCAP and BMI royalties cover them for all on-line music use. This is not true. ASCAP and BMI cover the broadcaster only for the public performance rights to the underlying music composition—the song itself—when an ASCAP or BMI song is played over-the-air. For digital transmissions—like those made on the Internet—there is an additional royalty, payable to a company called SoundExchange. This additional royalty compensates the performers of music. This royalty must be paid in addition to the fees paid to ASCAP, BMI, and SESAC, and must even be paid on the Internet simulcast of a broadcaster’s over-the-air programming.

ASCAP & BMI ($0)For Internet radio stations that simulcast the signal of an over-the-air broadcast station on a non-subscription basis, fees for Internet usage of the music licensed by ASCAP and BMI are covered by the current broadcast licenses.

SESAC ($360+)SESAC’s Internet Performance License royalty is based on a Revenue or ATH multiplier with a minimum $360 annual fee and reporting requirements.

SoundExchange (???)The royalty to SoundExchange is paid both to the owners of the copyright in the performance of a piece of recorded music and to the performers of that music. Half of the fees collected go to the performers, and half to the copyright owner in the performance (usually the record company). This royalty comes about as the result of a “compulsory license” which allows Internet broadcasters to use music without the explicit permission of the artists and copyright holder, provided that the broadcaster pays this royalty fee and complies with certain usage restrictions.

Internet Radio Royalties 101


> Small Broadcaster <Any commercial webcaster who has a “substantial business owning and operating one or more terrestrial AM or FM radio stations”. These rates were negotiated by SoundExchange and the National Association of Broadcasters.

Any applicable broadcaster who 1) has less than 27,777 aggregate tuning hours (total listening hours) per year for ANY of its broadcast simulcast stations or channels; and/or 2) has less than 27,777 ATH for ALL of its Internet-only channels in aggregate.

Stations averaging more than 3.177 Internet Listeners are NOT ELIGIBLE for Small Broadcaster status

Rates: Broadcasters will pay a special per-performance rate for each track played. An annual minimum fee of $500 per station or channel is required, which is applied against the service’s total annual liability. Annual minimum fees are capped at $50,000.

Year Rate per Performance2010 $0.00162011 $0.00172012 $0.00202013 $0.00222014 $0.00232015 $0.0025

2010 Example: $0.0016 * 12 songs/hr * 24hrs * 364days = ~$168/yr per Avg Listener

> Plus Reporting < ($100 proxy fee)

Reporting: Accommodations for ‘Small Broadcasters’, as defined above, include an annual $100 proxy fee in lieu of reporting requirements for the entire term.



> Broadcaster <Any commercial webcaster who has a “substantial business owning and operating one or more terrestrial AM or FM radio stations”. These rates were negotiated by SoundExchange and the National Association of Broadcasters.

Rates: Broadcasters will pay a special per-performance rate for each track played. An annual minimum fee of $500 per station or channel is required, which is applied against the service’s total annual liability. Annual minimum fees are capped at $50,000.

Year Rate per Performance2010 $0.00162011 $0.00172012 $0.00202013 $0.00222014 $0.00232015 $0.0025

2010 Example: $0.0016 * 12 songs/hr * 24hrs * 364days = ~$168/yr per Avg Listener

A station averaging 50 Listeners/hr would pay ~ $8,400/yr ($700/mo)

> Plus Reporting <

Reporting: census reporting (a report of every sound recording performed) is required on a monthly basis, to be provided to SoundExchange within 45 days of the last day of that month. Limited ATH reporting will be permissible for 2009-2015, provided it comprises no more than a small percentage of total hours of programming (to accommodate syndicated programming).



Traditional WebCast Offerings

Selective SimulcastAvoids RoyaltiesManual Operation is Labor IntensiveDead Air between programsLimited ContentLimited Revenue Opportunities

Stream 24x7Automated SimulcastPay Music RoyaltiesLimited to a Single GenreContent Limited to OTA Simulcast

PodcastingContent available on Any DeviceOn-Demand ONLYLong Downloads


The Ideal WebCast Solution would combine these good features:

Automated Selective Simulcasts of Local Content

Avoid Music Royalties

Podcast Content available on Any Device

And Add:

Programmable Scheduler for Unattended Operation

Real-Time Web-based Controls for Ultimate Remote Flexibility

Automatic Recording of All Simulcasted Content for On-Demand Playback & Podcasting

Combined Simulcasted and Recorded or Uploaded Content for Integrated Live Webcast

150+ Royalty-Free Music Side Channels that Auto-Play during simulcast “dead air” to Expand your Audience

Integrated Internet-Only Content to Drive Users to your Site

Integrated Ad Management for Maximum Revenue Opportunities

A Better Solution


Music Side Channels

RadioP1 has negotiated agreements with the Internet’s Best Music Servicesallowing you to automatically attach to their Royalty-Paid (Free) Music whenyour Stream is Silent

Stations can offer over 150 User-Selectable Music Side Channelsto Expand Your Audience WAY Beyond your Format/Genre

RadioP1 Automatically Switches between your Live/Local Content andEach User’s Favorite Music!

Best of All, you can configure YOUR ADS to play as Pre-Rolls andInterstitials along with the Side Music Channels!

Easy ListeningJazzLatin/WorldOldies (20s-60)

AlternativeAmericanaBluesClassical

ComedyCountryDanceDecades (70s-90s)

PopR&B/Hip-Hop/UrbanRockSpiritual

Each RadioP1 Station Can Be 150+ Internet Stations!Each RadioP1 Station Can Be 150+ Internet Stations!

GenresGenres


Stream Your Music or Ours?

Royalties

Reporting

Genres

Audience

Monetize

Bandwidth

Cost

RadioP1 Music Station Music

FREE

None

Multiple

Expanded

BIG $

None

FREE

$ Royalties $

Yes

One

Same

low $

Yes

HIGH


Website Integration Options

Embeddable Player(Player embedded on Station Site)

Features

Audio/Video PlayerLive or On-Demand Programs

Music Side ChannelsPre-, Post-roll & Interstitial Ads

Banner/Overlay AdsProgram ScheduleOn-Demand Menu

Content Management SystemCustom HTML PagesEmbed-code Display

RSS Feed DisplayChat

TickerVirtual Scoreboard

Media Center(Feature-Rich Player linked from Station Site)

More VisibilityMore ContentMore ChoiceMore ControlMore Monetization Opportunities


StationBrandingStation

BrandingRotatingBanner

Ads

RotatingBanner

Ads

SponsoredTicker

SponsoredTicker

Sponsored Listener

Chat

Sponsored Listener

Chat

Custom HTML

Pages, RSS Feed

Publication & Aggregation

Custom HTML

Pages, RSS Feed

Publication & Aggregation

RotatingOverlay Ads

RotatingOverlay Ads

Pre & Post-Roll

Audio/Video Ads

Pre & Post-Roll

Audio/Video Ads

Live & On-DemandProgramming

Schedule

Live & On-DemandProgramming

Schedule

Viral Marketing

Viral Marketing

150+ Royalty-Free Music Side Channels

150+ Royalty-Free Music Side Channels

Flash Media Player

(Platform Independent)

Flash Media Player

(Platform Independent)

Virtual Scoreboards

Virtual Scoreboards

Media Center

Coming Soon…Auto-Post Feeds to Twitter & FacebookComing Soon…Auto-Post Feeds to Twitter & Facebook

maximizing online opportunities for audience engagement, advertiser value and profitability...

Documents

internet broadcasters

ascap bmi

internet simulcast

internet usage

royalty fee

performers of music

internet radio stations

internet listeners