Lawyer Monthly Magazine - May 2019 Edition

LM90-17 75 Professional Excellence www. lawyer-monthly .com MAY 2019 fourth consecutive year of global growth. It was also “the highest rate of growth since IFPI began tracking the market in 1977”. Additionally, the Report states that “fuelled by the continued investment from record companies, the global story is one of dynamic, diverse markets evolving rapidly and finding routes to growth. Within the top 10, some of the fastest growing markets are in Asia and Latin America (South Korea, Brazil) with Asia becoming the second largest region for physical and digital music combined for the first time”. From a music publishing perspective, there also seems to be a rebound in fortunes which has been reflected by a number of significant music publishing business acquisitions in the last couple of years. The rapid rise of streaming and the effective push by streaming companies to increase their user base may well have acted as drivers for this activity. In any event, it would seem unlikely that such investment would be occurring if the investors didn’t believe in the business proposition. Does this upturn in revenues and investment percolate down through the system to produce an adequate reward for creators? It would seem not yet. It’s clear that accurate and swift identification of musical assets are pre-requisites for generating revenue in a fast- moving transactional market. The challenge isn’t based on it cannot be the only instigator of change. Content management in the digital era has been inadequate and contradictory and, so far, lacking in a clear and coordinated strategy. Delayed awareness and reaction to the changes being brought about by digital content distribution have also contributed to a rights licensing landscape that is extremely complex. It’s alsoclear that accurateand swift identification of musical assets are pre-requisites for generating revenue in a fast- moving transactional market. The challenge isn’t based on lack of suitable technology, but in the fact that the relevant data doesn’t all sit in one place. This is a consequence of the fragmented way in which the music industry has traditionally worked, the changing aspects of copyright ownership and the fragmented ownership of songs. As a result, the industry is in the throes of a significant transition. It will inevitably take time, but that may not be a bad thing in the long run as a lot of the data problems being uncovered relate to things that have been taken for granted in the past. Dealing with them in a systematic way now should result in a far more robust data set. Of course, commerce also continues to play its part. The IFPI Global Music Report 2019 informs us that, in 2018, the global music market grew by 9.7% and that it was the lack of suitable technology, but in the fact that the relevant data doesn’t all sit in one place. This is a consequence of the fragmented way in which the music industry has traditionally worked, the changing aspects of copyright ownership and the fragmented ownership of songs. As a result, the industry is in the throes of a significant transition. It will inevitably take time but that may not be a bad thing in the long run as a lot of the data problems being uncovered relate to things that have been taken for granted in the past, and they’re now having to be dealt with in a systematic way in order to solve them. What’s next? The fact that digital technologies have revolutionised the distribution of music is beyond doubt. Establishing what the “Value Gap” really is, especially when compared against benchmarks set in the old world of physical product, is much tougher. Commerce will ultimately drive its own solution, as it always does, but not without the continued help of legislation, better data management, more effective licensing models and, above all, collaboration between all the stakeholders, including creators, artists and other rights holders. At that moment, whenever it occurs, the “Value Gap” debate should give way to a much more progressive environment. Those who are still looking backwards will simply be facing the wrong way. LM Paul Kempton Managing Director Footprint Music Ltd T: +44 (0)1344 887880 paul.kempton@footprintmusic.com www.footprintmusic.com About Paul Kempton Paul is Founder and Managing Director of the Footprint Music Ltd, a specialist rights and licensing consultancy celebrating its 25th anniversary this year. The consultancy is focused solely on music copyright and associated rights in themedia and entertainment industries. Paul has advised both national and international television broadcasters, digital platforms and content makers and has appeared as an expert witness or filed expert testimony in a number of international court cases, tribunals and mediations. He is also a member of the International Association of Entertainment Lawyers and was co-editor of their 2018 yearbook “Finding the Value in the Gap”.