CHANGES
SOCAN 2019 Financial Results Show Higher Collections , Lower Distributions
SOCAN released its final 2019 financial results , which show record domestic and international collections for the company ’ s member music creators , music publishers and visual artists . The company also revealed significant financial losses due to past investments in the acquisition , creation , and financing of the new business venture Dataclef Inc .
In 2019 , SOCAN ’ s total collections were $ 405.6 million , which is an 8.2 % increase compared with 2018 . However , distributions to members totaled $ 296 million , which is a 6 % decrease compared with the $ 315 million distributed in 2018 . As well , there were record-setting domestic collections of $ 315.1 million – 10 % more than 2018 – and a 2.2 % year-over-year increase in international royalty collections totalling $ 90.5 million . SOCAN also reported a 37.6 % increase in revenue from digital sources ($ 86 million ). Reproduction rights collections increased to $ 12 million .
SOCAN says the disparity between collections and distributions was due primarily to the “ steep learning curve ” required for the company ’ s newly-deployed technology to process international and television income . The PRO says significant progress has been made in these areas in 2020 , as SOCAN continues to leverage this new technology to meet the data-intensive demands of the streaming age .
The 2019 financial results include losses that resulted in an impairment of $ 41.7 million to the advances made by SOCAN to fund its Dataclef subsidiary operations since 2016 .
“ At the time of our investment in these operations , we were exploring new ways to support our members by creating other revenue streams and leveraging new technologies ,” says interim CEO Jennifer Brown . “ Business plans didn ’ t come to fruition in the way we anticipated . Through the evaluation process , it became clear that we should divest ourselves of Dataclef assets . We are , however , encouraged by significant success with our new technology system and our improved matching and processing capabilities .”
For more information , go to www . socan . com .
Spotify Introduces Ability to Boost Specific Songs in Exchange for Less Royalties
Spotify has revealed a plan to allow artists and labels to promote songs by giving them preferential treatment on Spotify ’ s autoplay playlists and algorithm-created radio sessions . The catch is that in exchange for this song-specific promotional boost , artists and labels would pay for it by receiving a lower royalty rate on those streams . It was not revealed what the rate change would be on those streams .
“ In this new experiment , artists and labels can identify music that ’ s a priority for them , and our system will add that signal to the algorithm that determines personalized listening sessions ,” Spotify explained in a blog post announcing the move . “ To ensure the tool is accessible to artists at any stage of their careers , it won ’ t require any upfront budget . Instead , labels or rights holders agree to be paid a promotional recording royalty rate for streams in personalized listening sessions where we provided this service . If the songs resonate with listeners , we ’ ll keep trying them in similar sessions . If the songs don ’ t perform well , they ’ ll quickly be pulled back . Listener satisfaction is our priority — we won ’ t guarantee placement to labels or artists , and we only ever recommend music we think listeners will want to hear .”
MARK YOUR CALENDAR ...
SXSW 2021 Going Virtual South by Southwest ( SXSW ) has confirmed that its 2021 event will be virtual . Held each year in Austin , TX , SXSW is one of the largest annual indie music-focused festivals and music industry conferences in
ONDARA AT SXSW the world and huge economic driver for its host city .
SXSW Online will be held from March 16-20 and will feature variations of the conference sessions , film festival screenings , music showcases , networking , and exhibitions the physical event is known for . The online conference will feature a variety of tracks that allow attendees to learn about the present and future of film , culture , music , and technology . It ’ ll include keynotes , meet ups , mentor sessions , podcasts , round tables , presentations , and panels . Featured artist speakers will include Trent Reznor and Atticus Ross of Nine Inch Nails , St . Vincent , Janelle Monáe , Pink Floyd ’ s Roger Waters , and more .
For more information , go to www . sxsw . com .
PHOTO : LISA WALKER
14 CANADIAN MUSICIAN