The convergence of technologies used by entertainment providers such as Planet RadioTV presents novel challenges for SAMRO and its licensees, with content now bridging multiple platforms and – in the case of PRTV – spanning international territories.
The convergence of technologies used by entertainment providers such as Planet RadioTV presents novel challenges for SAMRO and its licensees, with content now bridging multiple platforms and – in the case of PRTV – spanning international territories.
So, if you’re considering setting up a service similar to PRTV, what do you need to think about? Xolani Zulu, Me-chanical Rights Accounts Executive at SAMRO, explains more about this complex issue.
He says: “In the case of PRTV, multiple licences are required. Firstly, a streaming licence is needed, which includes Performing Rights and Mechanical Rights. Mechanical Rights pertain to the uploading of music content for stream-ing purposes. Performing Rights kick in when the music is played on air. Of course, the same rights and licence fees apply for the TV and radio components of the PRTV service, and we also take into account the entire revenue model of the service. In effect, it becomes a comprehensive licence.”
The PRTV service highlights once again that no two businesses are identical. Zulu says SAMRO does not have a one-size-fits all approach to licensing, but assesses each application on a case-by-case basis. In each case, SAMRO will identify areas in which music usage rights may accrue – and this goes beyond Performing and Mechanical Rights. In fact, SAMRO looks at the whole picture and its music usage tariff could be a percentage of all revenue generated by the service.
“We look at the total revenue generated,” explains Zulu. “For example, a website that streams music may also generate revenue via subscription fees, advertising and other revenue streams. The first step is for SAMRO to de-termine a minimum fee for the broadcaster, which is based on anticipated music usage. Then, SAMRO compares this to the gross revenue of the site – including all additional revenue streams. If the percentage of revenue due is lower than the minimum fee, the minimum fee will apply. If the percentage amount is higher than the minimum fee, SAMRO will work off that amount.”
The PRTV case study becomes even more complex because the service spans not only several platforms, but also a number of international territories. Zulu says that the licence is determined by the location of the server from which the content is streamed. “So, even though a service might broadcast to Nairobi and Lagos, if the signal origi-nates in the UK, then the service is licensed in that country.”
That’s another thing to consider when establishing an offering of this kind. With the global network of high-quality internet servers available for rent in many countries around the world, broadcasters may look for a more afford-able server solution internationally. When doing so, one must take into account that differing licence fee structures may affect your final costs. In other words, you could end up paying less for your online costs, but more for your music usage. Therefore, it’s a good idea to contact SAMRO OLS (Online and Streaming Services) for guidance.
For SAMRO, the convergence of media platforms has increased the need for an integrated licensing solution.
•For more information, email licensing@samro.org.za.
