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Performance rights lift recorded music revenues


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In every industry, no matter how bruising the environment there is normally a green shoot. And for the music recorded industry, the biggest growth engine is performance rights. Performance rights revenues may appear modest, but for the music industry they are significant, as receipts largely flow to the bottom line: collection in most countries is handled by collection societies, whose costs are deducted from fees collected.

To maximize revenues from performance rights – and to deliver growth to the sector – the music industry should consider the following:

  • Emphasizing the ability of good quality recorded music to add value to businesses: this should help avoid the perception that license payments are a form of tax. The industry needs to help licensees understand that without quality music, their businesses may be less appealing places;
  • Raising awareness of the need to pay a license, and facilitating self‑service payment and renewal;
  • Ensuring the collection of license money is performed in the most efficient way both within and potentially across countries.

This could include joint collection ventures with the publishing collection societies and related outsource deals. The music industry needs to price its assets cleverly to allow its licensees to grow whilst maximizing its regulatory right to the revenue.

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