NMPA_International_Survey_12th_Edition

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APPENDIX C U.K., JAPAN, GERMANY, FRANCE, CANADA, ITALY AND SPAIN UPDATES NMPA INTERNATIONAL SURVEY TWELTH EDITION APPENDIX C: U.K., JAPAN, GERMANY, FRANCE, CANADA, ITALY AND SPAIN UPDATES According to IFPI, the British music industry saw slight declines in 2002,down 1% in units to 278.2 million, with a corresponding loss in value of 2.5% to £1.191 billion ($2.86 billion). The declines, which ended the territory’s five-year span of growth, were blamed in part on discounted prices and illegal downloading. In addition, IFPI said that the share of album sales online increased from 4% to 6%. In March 2002,the Mechanical Copyright Protection Society (MCPS) and Performing Right Society (PRS) announced a dual license to clear mechanical and performing rights for most types of online music use with a single royalty payment.The license will be available for one year to U.K.-based content providers at a cost of 8% of annual gross revenue (a discount off the agreed upon 12% rate). MCPS also launched DVD1, a licensing policy for DVD-Video music products, on May 1, 2003, which allows producers to clear both mechanical and synchronization rights. MCPS maintains that its 15,000 members have received no payments for the use of their works on DVD-Audio since the format’s introduction in 2000.The group set a DVD-Video royalty rate of 10% of Published Price to Dealer (PPD), compared with a mechanical rate of about 6% for VHS music products and 8.5% for compact discs.BPI has criticized the plan’s pricing system. In September 2002, the U.K.’s Office of Fair Trading (OFT) shut down its investigation into alleged illegal practices by the major record companies due to lack of evidence. The investigation began in response to claims that the seven companies had colluded to discriminate against retailers who were trying to import cheaper CDs from EU territories. The OFT did find that some of the companies had made attempts to slow down imports from mainland Europe in the past, but that those actions had preceded passage of 1998’s Competition Act and therefore were not illegal. The inquiry was the sixth such governmental investigation in the past 10 years. A report released by lobbying group the National Music Council of the U.K. found that consumer spending on music is increasing in the U.K., up over 25% from 1997-98 to 2000’s figure of just under £5 billion ($7.8 billion). The contribution of the music business to the U.K. economy in 2000 was about £3.6 billion ($5.6 U.K. UPDATE billion), an increase of some 15% from the previous survey. The Assn. of British Concert Promoters (ABCP), a group led by British classical-music concert promoters, is battling the PRS over its plan to raise the performance royalty rate applied to live classical concerts and recitals in the U.K. The PRS’ Tariff LC (Live Classical) stands at 4.8% of box-office receipts for ticketed events, and at £7.96 ($12.55) for the first 50 persons admitted to an event with an average admission charge of £5 ($7.88) or less, plus £3.98 ($6.27) per 25 persons thereafter.The PRS plans to increase the tariff on an annual basis to about 7.3% by 2007,citing figures showing that classical promoters in France pay 8.8% of their box office, and in Spain and Italy, 10 percent. The ABCP maintains that the PRS could increase its fees for rock and pop performances as well. Currently that fee stands at 3%. The issue is now before the Copyright Tribunal. The Association of Independent Music (AIM) has launched the “International Internet Trial,” an initiative designed to ease the licensing of British independent music by webcasters.The program allows access to the repertoire of participating independent labels to non- U.K. based webcasters, though the specific repertoire will vary depending on each label’s deal in those territories. AIM charges 3.75% of a foreign webcaster's gross annual revenue or a minimum fee of $500 annually, whichever is greater. If the webcaster’s operating costs exceed $100,000 a year, the minimum fee will be 1% of that expenditure. Alternatively, webcasters using a small amount of U.K. independent music may choose to pay a proportion of gross revenue, based on the percentage share of U.K. independent music of the total repertoire played. U.S.-based digital-royalties collection society SoundExchange is handling the administration, reporting, and revenue collection during the trial, which will continue through 2003. AIM has been undertaking a similar initiative for U.K.-based webcasters since June 2000. AIM has also formed “Musical,” a consortium with nine European content, telecommunications, and technology companies—including Nokia, Vodafone and Greek music-TV channel MAD TV—to develop a commercial solution for distributing music via mobile phones.Funded in part by the EC’s 44
APPENDIX C eContent program, Musical’s goals include the development of software technology for streaming music safely on wireless devices and the determination of the most appropriate bandwidth for handling multimedia content. Once trials are completed, the consortium's members will decide whether services should be run jointly or individually. Trade group the Alliance Against Counterfeiting and Piracy said in July 2002 that the British industry’s losses from counterfeiting and piracy fell slightly in 2001, to more than £8.5 billion ($13.1 billion), from 2000’s figure of nearly £9 billion ($13.9 billion).Figures released at the group’s annual general meeting revealed that in addition to an estimated 30% rise in Music Publishers’ Association (MPA) OFFICER: Chief Executive: Sarah Faulder The MPA promotes and safeguards the interests of British music publishers at the governmental and industry levels. It also raises awareness among the general public of the important role played by music publishers. These objectives are achieved through monitoring and lobbying on new legislation, regular and close liaison with industry bodies,including in particular the collecting societies, as well as a program of seminars and training. The MPA continues to develop its Catalog of Printed Music, available on CD-ROM,and to be the U.K. agency for administering the tendigit International Standard Music Numbers (ISMNs) for use on printed music. MPA 3rd floor, Strandgate 18/20 York Buildings London WC2N 6JU Tel: (44) 171-839-7779 Fax: (44) 171-839-7776 e-mail: info@mpaonline.co.uk Mechanical-Copyright Protection Society Ltd. (MCPS) and Performing Right Society Ltd. (PRS) OFFICERS: CEO, MCPS-PRS Alliance: John Hutchinson Executive Director, PRS: John Axon The Mechanical-Copyright Protection Society Ltd currently represents around 15,000 composers, songwriters and music publishers whenever their copyright musical works are recorded. Acting as an agent on behalf of its members, MCPS negotiates agreements with those who wish to record and distribute product containing copyright musical works.MCPS collects and then distributes “mechanical” royalties generated from the copying of music onto many different formats (CD, video, computer games, ringtones etc). MCPS is a wholly owned subsidiary of the Music Publishers Association. Distributions to members in 2001 were £227 million. MCPS has formed an operational alliance with the Performing Rights Society (PRS). physical music piracy, the video industry’s estimated losses in 2001 rose by 83% to £330 million ($510 million). Alliance members include the British Assn. of Record Dealers, British Music Rights, British Phonographic Industry, British Video Assn., and the Business Software Alliance. In April 2003, the Official U.K. Charts Co. (OCC) announced it would launch the territory’s first official downloads chart, ranking the Top 40 downloaded tracks from certain legitimate websites while ignoring downloads on such illegal sites as Kazaa and Morpheus. Digital service provider OD2 was the first company to sign on to the project. OCC is owned by BPI and the British Association of Record Dealers. The Main Organizations of the British Music Industry Are: MCPS Ltd. 29-33 Berners St London W1T 3AB Tel: (44) 20 7306 4230 Fax: (44) 20 7631 8957 website: www.mcps.co.uk e-mail: member.info@mcps.co.uk Performing Right Society Ltd. (PRS) PRS collects and distributes worldwide performance royalties on behalf of its composer and publisher members. The society derives income from the control of broadcasting and performing rights, issuing licenses to clubs, pubs, concert venues, etc. and to TV/radio broadcasters. PRS currently has around 37,000 members and, during 2001, collected license income for them— from UK public performance and broadcasting,and from international usage—totaling £255 million. A quarterly newsletter, PRS News, is also published. PRS 29-33 Berners Street London W1P 4AA Tel: (44) 20 7306 4230 Fax: (44) 20 7631 8957 website: www.prs.co.uk e-mail: info@prs.co.uk NMPA INTERNATIONAL SURVEY TWELTH EDITION APPENDIX C: U.K., JAPAN, GERMANY, FRANCE, CANADA, ITALY AND SPAIN UPDATES 45
Page 1: 12th e d i t i o n NATIONAL MUSIC P
Page 4 and 5: Preface The National Music Publishe
Page 6 and 7: Executive Summary This is the NMPA
Page 8 and 9: Following a solid 14% growth in rev
Page 10 and 11: Table 6 Master Survey Data 2001 INT
Page 12 and 13: Table 7 Flat Exchange Rates 2001 IN
Page 14 and 15: Chart 4 22 Other Countries Ireland
Page 16 and 17: REPRODUCTION-BASED INCOME In 2001,
Page 18 and 19: NMPA INTERNATIONAL SURVEY TWELTH ED
Page 20 and 21: International Year in Review:2002 C
Page 26 and 27: LATIN AMERICA NMPA INTERNATIONAL SU
Page 42 and 43: APPENDIX A NMPA INTERNATIONAL SURVE
Page 44 and 45: APPENDIX B International Involvemen
Page 48 and 49: APPENDIX C NMPA INTERNATIONAL SURVE
Page 50 and 51: APPENDIX C The Main Organizations o
Page 52 and 53: APPENDIX C The Main Organizations o
Page 58 and 59: APPENDIX C ITALY UPDATE NMPA INTERN
Page 60 and 61: APPENDIX C SPAIN UPDATE NMPA INTERN
Page 62 and 63: APPENDIX D GLOSSARY OF TERMS INTERN
Page 64 and 65: NMPA: A Brief History As technology
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