Sidhu, Param and Midha, Vishal, "Music industry in the era of online delivery: Application of Differential pricing and flat rate pricing for songs with varying consumer valuations" (2004). AMCIS 2004 Proceedings. Paper 305.
http://ais.bepress.com/amcis2004/305
Mostrar mensagens com a etiqueta Digital Music Market. Mostrar todas as mensagens
Mostrar mensagens com a etiqueta Digital Music Market. Mostrar todas as mensagens
domingo, 31 de agosto de 2008
Music industry in the era of online delivery: Application of Differential pricing and flat rate pricing for songs with varying consumer valuations
quinta-feira, 28 de agosto de 2008
BMI Tops $900 Million Mark in Revenues
BMI has announced that it earned more than $901 million in revenues for its 2008 fiscal year, including its subsidiary Landmark Digital Services, LLC™. This is the first time any copyright organization has topped the $900 million mark for music performance revenues, and represents a 7.2% percent increase from the previous fiscal year. BMI also set a historic high in royalty distributions, and will disperse more than $786 million to the songwriters, composers and copyright owners it represents, an 8% percent increase over the prior fiscal year. With more than 375,000 songwriters, composers and music publish
er affiliates, BMI is the world’s largest music copyright organization.
Royalty Distributions
Both figures represent milestones in royalty collection and distribution for the public performance of music. BMI President & CEO Del Bryant said, “BMI has been extraordinarily successful in signing the brightest and most popular new music creators across all genres, building upon a repertoire that already includes the most beloved songs of America’s legendary songwriters and composers.” Bryant pointed out that BMI has consistently embraced new media businesses that use music, and developed innovative licensing solutions to permit these companies to reach new audiences, while assuring that creators and copyright owners are fairly compensated. “Our pro-technology and pro-business attitude has made it possible for BMI to continue to grow our revenues more than 7% each year, on average over the past 10 years, almost doubling our income in that period,” said Bryant
.
Total Revenue
BMI generated an impressive $664 million in domestic licensing income, an increase of 8% or $51 million over the prior year. BMI’s leadership in licensing the explosive growth of music in cable, satellite radio and satellite television brought in revenues of more than $208 million, accounting for more than 23% of the company’s consolidated revenue. Traditional broadcast radio and television accounted for $340 million, or about 38% of revenue. Growth in revenues from the performance of music in retail and service establishments, including restaurants, bars and the hospitality industry, increased to a total of $97 million, accounting for approximately 11% of BMI’s revenue. BMI’s New Media revenues increased to a total of $15 million. Thanks to growth in the mobile, social networking and website categories, BMI now licenses more than 6,500 digital media properties, an increase of more than 50% over the prior year. International revenues were also an especially bright spot, accounting for $238 million, or more than 26% of BMI’s revenues.
During the year, BMI extended its eCommerce initiatives, significantly enhancing its business-to-business tools for songwriters, composers, and copyright owners, as well as its licensing customers. BMI added almost 30,000 new songwriters and composers to its rolls, with the vast majority joining online. The company launched new tools permitting licensees to initiate and renew contracts, report music use and pay license fees online. BMI also dramatically increased its royalty-processing infrastructure to handle the explosion of music reporting from its many digital licensees, processing more than nine billion feature audio performances during the year. The strategic use of technology in all of these initiatives permitted BMI to grow its business while lowering overhead to 11.7%, the lowest in the company’s history.
BMI’s fiscal year runs from July 1 to June 30. BMI’s consolidated financial information includes Landmark Digital Services™, LLC, a wholly owned subsidiary. Landmark provides advanced audio-recognition products and services to BMI, as well as third-party clients, including content providers, copyright owners and consumers of music and digital entertainment.
er affiliates, BMI is the world’s largest music copyright organization.Royalty Distributions
Both figures represent milestones in royalty collection and distribution for the public performance of music. BMI President & CEO Del Bryant said, “BMI has been extraordinarily successful in signing the brightest and most popular new music creators across all genres, building upon a repertoire that already includes the most beloved songs of America’s legendary songwriters and composers.” Bryant pointed out that BMI has consistently embraced new media businesses that use music, and developed innovative licensing solutions to permit these companies to reach new audiences, while assuring that creators and copyright owners are fairly compensated. “Our pro-technology and pro-business attitude has made it possible for BMI to continue to grow our revenues more than 7% each year, on average over the past 10 years, almost doubling our income in that period,” said Bryant
.
Total Revenue
BMI generated an impressive $664 million in domestic licensing income, an increase of 8% or $51 million over the prior year. BMI’s leadership in licensing the explosive growth of music in cable, satellite radio and satellite television brought in revenues of more than $208 million, accounting for more than 23% of the company’s consolidated revenue. Traditional broadcast radio and television accounted for $340 million, or about 38% of revenue. Growth in revenues from the performance of music in retail and service establishments, including restaurants, bars and the hospitality industry, increased to a total of $97 million, accounting for approximately 11% of BMI’s revenue. BMI’s New Media revenues increased to a total of $15 million. Thanks to growth in the mobile, social networking and website categories, BMI now licenses more than 6,500 digital media properties, an increase of more than 50% over the prior year. International revenues were also an especially bright spot, accounting for $238 million, or more than 26% of BMI’s revenues.
During the year, BMI extended its eCommerce initiatives, significantly enhancing its business-to-business tools for songwriters, composers, and copyright owners, as well as its licensing customers. BMI added almost 30,000 new songwriters and composers to its rolls, with the vast majority joining online. The company launched new tools permitting licensees to initiate and renew contracts, report music use and pay license fees online. BMI also dramatically increased its royalty-processing infrastructure to handle the explosion of music reporting from its many digital licensees, processing more than nine billion feature audio performances during the year. The strategic use of technology in all of these initiatives permitted BMI to grow its business while lowering overhead to 11.7%, the lowest in the company’s history.
BMI’s fiscal year runs from July 1 to June 30. BMI’s consolidated financial information includes Landmark Digital Services™, LLC, a wholly owned subsidiary. Landmark provides advanced audio-recognition products and services to BMI, as well as third-party clients, including content providers, copyright owners and consumers of music and digital entertainment.
segunda-feira, 21 de janeiro de 2008
Digital Music Market
The US, Japan, UK, Germany and France are the top five digital music markets worldwide. In general, countries with a highest percentage of digital sales are the strongest markets for music sales overall.
The European online music market generated €120m in 2005 from à la carte sales (that is, the sale of music tracks over the Internet either individually or in an album bundle) and subscription platforms. Online music subscriptions accounted for only 10 per cent of this total. Screen Digest expects the total online music market to grow to €1.1bn by 2010, driven by à la carte offerings.The UK continues to be the largest single consumer territory for online music in Europe, expected to generate around 40 per cent of total European online music revenues by 2010.
As a whole, the digital segment, which also includes exploitation of services over mobile phones, accounts for between 1 per cent and 4 per cent of total 2005 music revenues in the European territories. According to the International Federation of the Phonographic Industry (IFPI), master ringtones are currently the largest segment of the mobile market accounting for 87 per cent of mobile music sales.
The online segment is expected to account for 12 per cent of total European music revenues by 2010 and the European digital music market is still approximately one third of the equivalent market in the US and will remain bigger in the mid-term. Arguably this is due to cultural, legal, economic and technical barriers hindering exploitation of digital music on both a national and a multi-territory basis.
The fundamental value chain of the music business can be segmented into three sectors, production, distribution and exhibition/sales. That is:
– creation of content;
– distribution to outlets;
– sale/transmission to the end customer/end user.
The main stakeholder categories therefore fall within one or a combination of these
responsibilities. Companies that are considered the traditional power base of the industry, the four major record labels Universal, Sony BMG, EMI and Warner Music, are primarily involved in the business of creation and distribution.
The music business model is not very complex if compared with other forms of media and the sale of audio recordings can still account for up to 80 per cent of a major record label's total revenues.
The remainder of the European music download market is a fragmented field largely consisting of services either using DRM solutions from US software giant Microsoft, or providing unprotected MP3s. There are cross-industry attempts to promote interoperability between DRM technologies used in the consumer media market (i.e. Coral Consortium; but Apple and Microsoft are not members of this consortium) but lately DRMs have been heavily criticized and there is a tendency to eliminate them for music as they are easily circumvented.
in http://ec.europa.eu/avpolicy/docs/other_actions/col_swp_en.pdf , pág. 13
The European online music market generated €120m in 2005 from à la carte sales (that is, the sale of music tracks over the Internet either individually or in an album bundle) and subscription platforms. Online music subscriptions accounted for only 10 per cent of this total. Screen Digest expects the total online music market to grow to €1.1bn by 2010, driven by à la carte offerings.The UK continues to be the largest single consumer territory for online music in Europe, expected to generate around 40 per cent of total European online music revenues by 2010.
As a whole, the digital segment, which also includes exploitation of services over mobile phones, accounts for between 1 per cent and 4 per cent of total 2005 music revenues in the European territories. According to the International Federation of the Phonographic Industry (IFPI), master ringtones are currently the largest segment of the mobile market accounting for 87 per cent of mobile music sales.
The online segment is expected to account for 12 per cent of total European music revenues by 2010 and the European digital music market is still approximately one third of the equivalent market in the US and will remain bigger in the mid-term. Arguably this is due to cultural, legal, economic and technical barriers hindering exploitation of digital music on both a national and a multi-territory basis.
The fundamental value chain of the music business can be segmented into three sectors, production, distribution and exhibition/sales. That is:
– creation of content;
– distribution to outlets;
– sale/transmission to the end customer/end user.
The main stakeholder categories therefore fall within one or a combination of these
responsibilities. Companies that are considered the traditional power base of the industry, the four major record labels Universal, Sony BMG, EMI and Warner Music, are primarily involved in the business of creation and distribution.
The music business model is not very complex if compared with other forms of media and the sale of audio recordings can still account for up to 80 per cent of a major record label's total revenues.
The remainder of the European music download market is a fragmented field largely consisting of services either using DRM solutions from US software giant Microsoft, or providing unprotected MP3s. There are cross-industry attempts to promote interoperability between DRM technologies used in the consumer media market (i.e. Coral Consortium; but Apple and Microsoft are not members of this consortium) but lately DRMs have been heavily criticized and there is a tendency to eliminate them for music as they are easily circumvented.
in http://ec.europa.eu/avpolicy/docs/other_actions/col_swp_en.pdf , pág. 13
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