Royalty collector PRS for Music has cut its online streaming rate from £0.0022 per song to £0.00085 per song, which is music to the ears (punilicous) of struggling online music services.
The decision comes after a lengthy consultation with music industry heavyweights and new media professionals who argued that by making music more readily available the publishers and artists stood to make more money in the long run.
We7 CEO Steve Purdham, said: “On first glance, this looks like a good step in the right direction and it is pleasing to see that the PRS has listened to many of the consistent views from the consultation period. It is these minima which significantly affects the evolution of new digital businesses and the PRS have done a good job in going some way to address this problem.”
PRS is, however, authoring new Online Music Licenses which will replace the old Joint Online License, meaning PRS is sticking to the notion that the artist should be paid everytime their song is played. Even it is Flo Rida. Seriously who is listening to Flo Rida – whoever you are, will you ruddy stop please. He’s just awful.
In an attempt to grab some of the marketshare back off Spotify, web-based ad-supported music streaming service We7 has announced that between Christmas and New Year, all their ad-supported music won’t have.. er… ads. It’ll basically be un-supported music. A big money sink, I should imagine, but hopefully a big draw to their audience.
The company has assured us that it’ll still be paying royalties, so if you’re a songwriter, then don’t worry, you’ll still get your December cash to pay for those presents. However, even We7 without ads probably won’t tempt me away from my beloved Spotify. Sorry guys.
We7, the free-to-use ad-funded music site that’s famously the brainchild of musical wildcard Peter Gabriel will, finally, soon feature the Peter Gabriel back catalogue in its listings.
This is thanks to music goliath EMI announcing a deal to stick 400,000 of its songs up on the streaming service before the end of the year, a move which will significantly boost the amount of content on the rapidly-growing free music site. Sony BMG…
Stuart Dredge writes…
The music biz is an industry in search of a viable business model right now. Figures released by the IFPI earlier this week showed that while legal music downloads rose 85% last year, that growth was outweighed by an 11% drop in physical CD sales – meaning that overall, global music revenues fell by 5%, which represents more than a billion dollars less than in 2005.