Keitumetse Setshedi, SAMRO’s Broadcasting and Online Transmissions Manager, and Xolani Zulu, Accounts Executive for Mechanical Rights at SAMRO, explain some of the ins and outs of narrowcasting – a potential additional revenue stream for music creators and an excellent branding tool for music users.
What is narrowcasting?
This form of television or radio broadcasting is defined as the transmission of content to a certain targeted section of the public – such as the music you hear in the supermarket or at the shopping mall. Whereas broadcasting is aimed at a larger, general audience, narrowcasting is, as its name implies, geared towards a smaller, defined niche audience.
How is the narrowcasting signal transmitted?
It is usually transmitted via satellite or the internet to a restricted audience, not to the general public.
Is a broadcasting licence required to narrowcast?
Such in-store or in-house radio stations do not require an ICASA licence. But a business or entity does need to obtain a music usage licence from SAMRO, authorising them to narrowcast SAMRO members’ music. A licence to use or play music in public is required by law, in terms of the South African Copyright Act.
Obtaining a SAMRO licence to narrowcast will help ensure that the Performing Rights royalties that accrue from the public use of the musical works will be channelled to the SAMRO members who created them.
What are some examples of narrowcasters?
A narrowcaster can be used for any venue. The most common examples are in-store radio stations like Mr Price’s Red Cap Radio, but even hospitals, schools, taxi ranks or airports can narrowcast their own content, as the concept is simply about relaying a signal to a specific target audience.
What about music that is relayed via a public address (PA) system – is that narrowcasting?
No. An airport or taxi rank can “broadcast” some content through its PA system, not as a narrowcaster but merely playing pre-recorded content aired from its offices.
Can narrowcasting be used for special once-off events?
Yes.
How can SAMRO music creators benefit from narrowcasting?
Narrowcasting is yet another avenue for SAMRO members to reap the rewards for their creative output whenever their original music works are used publicly. The Performing Rights royalties that accrue to them through this method of public music usage will be paid to them during the regular SAMRO distribution cycles. Members can rest assured that SAMRO is continuing to work hard to protect their music rights and is continuing to pursue ways to ensure compliance in this growing industry.
What are the advantages of narrowcasting for a business?
For businesses, the principal benefit is that the music creates a feel or ambiance. That then adds value to the business’s offering, as it helps create a pleasant setting that is enjoyed by the target market, and it makes the audience stay longer (e.g. at a restaurant) and keep coming back.
Narrowcasting is also becoming a popular form of marketing and branding by retailers. They use customer demographics to select the type of music played in specific areas at specific times of the day.
What are some of the challenges concerning the licensing of narrowcasters?
New digital technology and online streaming has made commercial music more “freely” available and is posing licence compliance challenges for SAMRO – in several areas of music usage, not just narrowcasting. Not all narrowcasters possess a SAMRO licence, or are aware that they require one. However, the SAMRO Sales Department is actively addressing this challenge.
And what are some of the opportunities or pluses?
Narrowcasting is also presenting SAMRO with exciting new opportunities for growth. It is a potential additional revenue stream for SAMRO’s music creators, and SAMRO is always looking for new ways to extract the optimal value from members’ music in order to maximise members’ earnings. Furthermore, the use of digital media is far more accurate when it comes to reporting and capturing data, which will be a definite advantage going forward.
How does SAMRO keep abreast of the volume of licensed music used in narrowcast channels?
SAMRO collects playlists and cue sheets from all licensees. This allows the organisation to track music usage and perform statistical analyses to determine the appropriate licence fees, which will ultimately be passed on to the music creators as royalty income.
In addition, SAMRO collects market intelligence and receives information from members whose music is played by some of the narrowcasters. In some cases the organisation conducts cold-calling exercises to investigate the use of rights-protected music. Who at SAMRO can members and music users contact to enquire about the possibilities offered by narrowcasting?
