What:

While live event activity was effectively closed down due to the pandemic, the shift of focus to DJ and artist livestreaming as the main performance and audience engagement outlet presented an opportunity to review the financial value transfer models and seek to improve the accuracy of royalty payments for the creators and rights holders of the music played as well as the performing artist / DJ. For the purpose of this document, the focus is on ‘free to the user’ livestreamed events, rather than ticketed / paid access livestream events.

Why:

The policies and processes in place at some of the biggest platforms which provide UGC livestreaming functionality, do not result in accurate remuneration for the creators and owners of the music played. On many platforms, the user terms pass responsibility to clear and license the music streamed onto the DJ/performer or hosting channel of the livestream. We need to understand the challenges and seek viable solutions to ensure the revenue models and processes developed going forward are workable and financially supportive for all involved. (Please note – this document is not intended to be a complete guide to all factors involved in livestreaming. Further reading resources can be found in the ‘Supporting Information’ section at the bottom).

Livestream Get Played Get Paid –  Core Principles:

The subjects of music rights clearance, music identification, reporting & revenue for livestreaming are deep and complex, so the aim of this document is to present simple ‘core principles’ which are easily understandable and focus on ‘key asks’ which the main parties involved in livestreaming should aspire to and move towards. The below principles are directed at the platforms, professional livestream producers, the licensors, DJs / artists, and music creators & rightsholders of the music played, so we can build awareness, cross-industry support and influence positive change in this area:

1. UGC Livestream Platforms should:

Pay for the music played: UGC livestream platforms should ensure that appropriate and fair music licenses are acquired so the creators, labels and publishers of the music played can receive fair revenue when their music is streamed.

Identify the music played: UGC livestream platforms should deploy effective music recognition technology (MRT) reporting tools to facilitate accurate remuneration to creators and rightsholders of the music played.

Provide accurate reporting: UGC livestream platforms should provide music reporting in a format which enables licensors to accurately pay the creators and rightsholders of the music played.

Be transparent: UGC livestream platforms should publish policy details of how music used on the platform is licensed, identified and paid.

2. Professional Livestream Producer Channels on UGC platforms should:

Advocate for the principles outlined above to be in place or adopted and developed on the platforms they work with.

3. Licensors (entities charging license fees to UGC platforms: CMOs, labels, publishers) should:

Offer effective use licensing terms: Licensors should, where possible, seek to secure deals based on the actual usage/plays of the repertoire they control, rather than market share / lump sum payments not linked to actual play data.

Pay the creators and owners of the music actually played: Licensors should, where possible, distribute the collected royalties they receive from the UGC platforms using the MRT reporting and DJ setlist information of the music actually played – not via market share, analogies or other data. (For DJ sets this requires granular track ID and “Unbundling” of the music to ensure single audio files containing multiple pieces of music properly count, attribute, and pay each piece of music independently).

Monetise usage on properly licensed platforms / don’t block the streams – For platforms compliant with the above asks; labels and any other licensors should choose to allow usage and monetise instead of restricting or blocking streams*.   (*Blocking sometimes occurs unintentionally due to limits of the technology currently available. We are advocating that intentional blocking should only occur under Moral Rights if the music use is considered derogatory or linked to abusive or offensive content)

Reduce licensing complexity – Licensors should collaborate globally to explore options to simplify the process for livestreaming platform and livestream event licensing.  Explore options to facilitate ‘real-time’ content ID and licensing solutions to be developed and deployed.

 4. DJs, Performing Artists and their teams should: 

Support the platforms who pay music creators and performers – stream your shows on the UGC livestream platforms with policies and processes which direct revenue to the creators and owners of the music played as well as the performing artists and DJs. Direct your audience to the platforms which support the creators of music.

Submit setlists – check whether the platform(s) you play on accept setlist information to help with accurate royalty distribution to the creators and rightsholders of the music you play. Some Performing Rights Organisations also accept setlists for livestreamed events to enable royalty payments to the creators and rightsholders of the music played – check with your PRO if you can submit setlists manually.

5. Music Creators and Rightsholders should: 

Ensure they are members of the appropriate performing right, mechanical right and neighbouring right collection entities and that their musical works and tracks are registered on time with each. (see Supporting Info for further details)

Check with the performing right, mechanical right and neighbouring right collection entities they are members of whether licenses have been granted to the livestream platforms their music is played on, and lobby for licenses to be granted where they have not.

Ensure they / their labels / distributors deliver their recordings to the key Music Recognition Technology / Content ID service providers so they can be identified and paid when livestreamed

Licensing Complexity
To obtain music licenses for both the copyright in the recording and in the musical composition to legitimately run a UGC livestreaming service requires the streaming entity to arrange deals with the licensors of the music played. This can be a complex process requiring negotiations with numerous licensing entities depending on the breadth of repertoire being played. To enable UGC livestreaming services who wish to operate legally to do so, licensors should collaborate to explore and facilitate viable new options for simple and fair licencing for global usage on platforms of different sizes and types.