Canadian Musician - July/August 2020 | Page 11

CM: Aside from Facebook and Instagram, what other platforms are currently licensed? Brown: We’re in talks with the major promoters. So, I think that this story isn’t going to be over yet. I think that a lot of big promoters are going to have their own platforms. We are in talks with other providers, like Side Door, where they’re selling tickets [for livestreams]. What we’re saying to our members is, ‘Send in the setlists [regardless of the platform]. Send it, tell us where you’re playing, and that is helpful to us.’ We’re probably already in the licensing conversations with these guys, but then once the licence fees do come in, we’ve already got your setlists and we can pay it out. CM: So, an artist performs a 45-minute show on Facebook, say. What do they have to do to get paid? Brown: Send us your setlists [through the SOCAN online member portal], show us it’s been on Facebook. We had to define what a livestream concert would be, so with Encore!, it has to hit 100 views and either 10 songs or 30 minutes, but we’re listening to our members as well. So, the Cameron House’s front room wouldn’t be 100 people, but you would’ve got paid for that concert in the traditional concert world. So, we’re listening to find out how many views they’re typically getting, how often they are typically doing these livestreams, and then we can play with how that criteria can shift to make sure it’s a meaningful distribution for people and that it’s not leaving people out, and make sure that these royalties are accessible. Because if this is where live music is going, then we want to make sure that these royalties stay an important part of these writers’ overall earnings. CM: The money to pay out typical live performance royalties comes from the yearly licensing fees paid to SOCAN through Entandem for the right to host live music. So, outside of the one-year Encore! program, where does that money come from and how is it determined how much is paid for a show? Brown: It would come from the licence fees specific to that platform or specific to that concert series. So, let’s use Facebook for example. We’ve taken the royalties paid by Facebook, which also pays us for the recorded music piece, and we’ve apportioned about $200,000 per quarter to pay SOCAN INTERIM-CEO JENN BROWN out for livestreams. So, what we’re looking at is about $150 going out per concert. We thought that this could be a meaningful amount for a concert, because if you looked at a lot of the shows played around town or in any city just doing a gig for a regular concert, that could be about a $75 distribution. But the problem is you’re not going from Toronto to Hamilton to Windsor; you’re probably playing right now to people in Toronto, Hamilton, and Windsor and half of Canada. So, how do you apportion that? Those are the parts we’re going to have to keep looking at. For other shows, like a Live Nation concert, that’s really the percentage of the licence fees that goes straight to the writers and publishers for all the songs that were performed. So, that is a real direct one-to-one distribution. In the livestreaming world, I think it’s going to be more like what the streaming world looks like right now on Spotify. You get a pooled amount of money and that money needs to be apportioned out for all the uses within that quarter. So, I think it is a bit different going forward. CM: When you were negotiating the licensing agreements for Facebook and Instagram in 2018, were the livestream components much of a negotiation point? Brown: No, it wasn’t much of a negotiation point; it would’ve been an add-on just because Facebook and these social media platforms have so many different types of uses. It could be a real, professional music video, it could be commercial content where they actually have a movie on there, and it can also be useruploaded content, like you upload a video of yourself dancing to your favourite song. So, there’s so many different types of uses within these agreements that it becomes much more of an overarching agreement for music use. Though with livestreams, I don’t think even Facebook saw that this was going to be something in their future. I’d say the one benefit of agreements is that they’re often short-term and we get to see how these things evolve and I can imagine that livestreams are going to be a much bigger part of the conversation in the upcoming negotiations. CM: YouTube Live is another popular platform right now. Does your Google/ YouTube agreement cover that? Brown: We do have a licence with You- Tube. They have so many different pieces of their licence that I would assume that’s covered, but I don’t know for certain. I can imagine that the licensing team is all over that. But again, if you have a concert on YouTube, send in that setlist. CM: In a real-world concert, artists can play cover songs and the corresponding portion of SOCAN royalties goes to the writers/publishers of those songs. Do they have the same freedom to play covers in livestreamed concerts, or does the technology use make the rights equation more complicated? Brown: On the performing rights side, absolutely [they can play covers]. That’s the beauty of a blanket performing rights licence. Right now, if you are just streaming and it’s just your Facebook show, go ahead. Where I think it’s going to be more complicated is as these things become more commercial and they get repurposed for different uses and are saved on different platforms, then the reproduction rights could absolutely come into play, as well as a sync licence. Definitely for the more commercial uses, as we see the big promoters going to City TV, for example. Anybody playing on that, you can be pretty sure you’re going to need a sync licence before you start playing that song. Michael Raine is the Senior Editor of Canadian Musician. CANADIAN MUSICIAN 11