NMPA_International_Survey_12th_Edition

Categorization of Music
Publishing Revenues
APPENDIX
A
PERFORMANCE-BASED INCOME
Performance-based royalties consist mainly of those
paid for the broadcast and public performance of copyrighted
music, within a responding territory, regardless
of the origin of the repertoire being performed. These
royalties are principally collected by the major performing
rights societies: ASCAP,BMI and SESAC in the
U.S.,for example; SACEM in France, BUMA in Holland,
and PRS in the U.K.
RADIO
In the U.S., performance societies use a system of
“sampled” survey recordings or logs detailing what has
been played at a local station during a defined period
and/or statistical sampling, to create payment models
for their member affiliates. Typically, the stations are
authorized to use copyrighted musical compositions
under blanket licensing agreements with the collective
administrative societies.
RATES
Royalty fees are calculated as a percentage of a station’s
annual advertising revenues, and distributed by a
weighting process, as described earlier.
TELEVISION
Television stations generally keep logs,or cue sheets,
detailing the use and playtime of every musical composition
aired.These cue sheets are forwarded to the collecting
societies, which calculate payments according
to usage and broadcast range (local or network).
RATES
Like their radio counterparts, television broadcasts
are covered typically by blanket licensing agreements
between the copyright owners and the stations. The
blanket fee is typically calculated as a modest percentage
of the stations’ annual gross advertising revenues.
CABLE/SATELLITE TRANSMISSIONS
Cable and satellite TV transmissions are also
licensed by the major performing rights societies,much
the same way that broadcast TV is licensed. Rates are
usually determined by size of the audience (transmission
range) and usage.
LIVE PERFORMANCE AND RECORDED
This category refers to recorded or live music played
in a public place: nightclubs,bars,hotels,arenas,amusement
parks, theaters, health clubs, etc.
RATES
Typically,royalty fees are set according to the type of
venue and whether the performance is of live or recorded
music; a wide number of other variables also help determine
fees. For example, for a nightclub, live performance
royalties can be determined by the club’s annual live
entertainment costs, while in some countries, performing
rights societies collect performance fees from theater
exhibitors based on a percentage of box office receipts.
NMPA INTERNATIONAL SURVEY TWELTH EDITION APPENDIX A: CATEGORIZATION OF MUSIC PUBLISHING REVENUES
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