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Maximizing Online Opportunities for Audience Engagement, Advertiser Value and Profitability NASHVILLE 2010.

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Presentation on theme: "Maximizing Online Opportunities for Audience Engagement, Advertiser Value and Profitability NASHVILLE 2010."— Presentation transcript:

1 Maximizing Online Opportunities for Audience Engagement, Advertiser Value and Profitability NASHVILLE 2010

2 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

3 Maximizing Online Opportunities for Audience Engagement, Advertiser Value and Profitability > 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 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 $50,000. YearRate per Performance 2010$ $ $ $ $ $ Example: $ * 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. Internet Radio Royalties 101

4 Maximizing Online Opportunities for Audience Engagement, Advertiser Value and Profitability > 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 $50,000. YearRate per Performance 2010$ $ $ $ $ $ Example: $ * 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 , provided it comprises no more than a small percentage of total hours of programming (to accommodate syndicated programming). Internet Radio Royalties 101

5 Maximizing Online Opportunities for Audience Engagement, Advertiser Value and Profitability Traditional WebCast Offerings Selective Simulcast Avoids Royalties Manual Operation is Labor Intensive Dead Air between programs Limited Content Limited Revenue Opportunities Stream 24x7 Automated Simulcast Pay Music Royalties Limited to a Single Genre Content Limited to OTA Simulcast Podcasting Content available on Any Device On-Demand ONLY Long Downloads

6 Maximizing Online Opportunities for Audience Engagement, Advertiser Value and Profitability 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

7 Maximizing Online Opportunities for Audience Engagement, Advertiser Value and Profitability Music Side Channels  RadioP1 has negotiated agreements with the Internet’s Best Music Services allowing you to automatically attach to their Royalty-Paid (Free) Music when your Stream is Silent  Stations can offer over 150 User-Selectable Music Side Channels to Expand Your Audience WAY Beyond your Format/Genre  RadioP1 Automatically Switches between your Live/Local Content and Each User’s Favorite Music!  Best of All, you can configure YOUR ADS to play as Pre-Rolls and Interstitials along with the Side Music Channels! Easy Listening Jazz Latin/World Oldies (20s-60) Alternative Americana Blues Classical Comedy Country Dance Decades (70s-90s) Pop R&B/Hip-Hop/Urban Rock Spiritual Each RadioP1 Station Can Be 150+ Internet Stations!  Each RadioP1 Station Can Be 150+ Internet Stations!  Genres

8 Maximizing Online Opportunities for Audience Engagement, Advertiser Value and Profitability Stream Your Music or Ours? Royalties Reporting Genres Audience Monetize Bandwidth Cost RadioP1 MusicStation Music FREE None Multiple Expanded BIG $ None FREE $ Royalties $ Yes One Same low $ Yes HIGH

9 Maximizing Online Opportunities for Audience Engagement, Advertiser Value and Profitability Website Integration Options Embeddable Player (Player embedded on Station Site) Features Audio/Video Player Live or On-Demand Programs Music Side Channels Pre-, Post-roll & Interstitial Ads Banner/Overlay Ads Program Schedule On-Demand Menu Content Management System Custom HTML Pages Embed-code Display RSS Feed Display Chat Ticker Virtual Scoreboard Media Center (Feature-Rich Player linked from Station Site) More Visibility More Content More Choice More Control More Monetization Opportunities

10 Maximizing Online Opportunities for Audience Engagement, Advertiser Value and Profitability Station Branding Rotating Banner Ads Sponsored Ticker Sponsored Listener Chat Custom HTML Pages, RSS Feed Publication & Aggregation Rotating Overlay Ads Pre & Post- Roll Audio/Vide o Ads Live & On-Demand Programming Schedule Viral Marketing 150+ Royalty-Free Music Side Channels Flash Media Player (Platform Independent) Virtual Scoreboards Media Center Coming Soon… Auto-Post Feeds to Twitter & Facebook


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