Given Jynwel Capital’s role as an investor in Sony/ATV Music Publishing’s acquisition of EMI, we avidly follow developments within the music industry. This is an area where we maintain a fundamental understanding of business practices as well as strong partnerships with world-class musicians. For these reasons, we applaud reports that suggest the world’s top music publisher may drop traditional performance-rights organizations in order to ultimately deliver the fairest artist royalties.
When it comes to the ever-present issue of how artists should be compensated in the digital age, we believe the time has come to pivot away from performance-rights organizations and to technology-based solutions. The manner in which these legacy organizations currently collect royalties on behalf of artists is often imprecise and outdated. In fact, many industry experts firmly believe some songwriters are not receiving enough royalty payments from streaming services such as Pandora.
To create an industry that shares the proper royalties with artists, we need to put the right technology in place. If a song is played on terrestrial radio 100 times and then streamed on a digital services another 100 times, we must reach the proper total of 200. One step in the right direction for music publishers is entering into direct negations with streaming services over digital rights.
Although entering into agreements with streaming services may force publishers to cut ties with performance-rights organizations and ultimately take on more administrative responsibilities, we believe it represents the best path forward. Creating a fair and equitable royalties system is a key part of incentivizing top musicians to join the industry and ensuring that songwriters are compensated fairly for their work.
We know it is the talent of artists and songwriters that fuels music industry growth over the long term. Let’s make sure these brilliant minds have no royalty obstructions in their way.