We learned of this information from an interview for a former US Performing Rights Organization (PRO) employee. Although we cannot prove it’s actually true at this point in time (our internal audit staff is busy tying down the numbers), we are confident that it’s at least directionally correct (i.e. 70% to 90% really). Let’s be clear about one thing – we love PRO and we think they should have even greater authorities in the digital era, which we can address in later posts. But the point of this post is that most PRO artist pay dies and never receive royalties. Artists should be aware that by becoming a member of a PRO, you are not going to magically (or automatically) receive a broadcast royalty check in your mail box. In a world where anyone with a computer can create and record and distribute their own content, becoming an accepted member of these organizations is not such a big deal. Actually, being rejected is pretty much impossibe. There are no prerequisits to joining a PRO (other than being alive and living on planet earth) so be careful to note that just because they will accept your annual membership dues does not mean you will automatically become a part of the broadcast royalty gravy train – you need to get your content placed, in order to kickstart that process, and AudioMicro is the perfect outlet for making that happen. AudioMicro would like to turn you onto the idea of licensing your content through our uniform pricing model, meaning “all customers are created equally”. The model is coined “democratic” because it treats all customers and artists the equally, regardless of the size of the outlet and the content itself. We do not discriminate but rather facilitate your content licensing needs. In addition, we pay the highest royalty rate in the micro stock music industry here at audiomicro so we hope you will feel welcome and trust that we have your best interests in mind – both artists and customers alike.
Absolutely…Some of the top names in micro stock photography pull in over $100,000 per year in royalty checks from micro stock distribution. These are real numbers. Micro Stock is a numbers game, which means that as you build up a larger archive online, your royalties will increase over time. The quality of you content has a great deal to do with it as well, but if you create quality content and you create it in volume, the size of you checks will grow and you can use your micro stock success to launch your recording deal with a major label after showing the success you have had on the microstock arena.
Rights Managed Licensing is on the decline. Royalty Free Licensing is stabilizing (aka “not growing”). Ad supported Licensing models (aka the YouTube way) are proving unmonetizable / unprofitable as well as distracting to viewers in addition to not providing royalties to the content creators / providers among other copyright infringement issues. A new buzz is around CPM / Pay Per Use Licensing. We like to call this new form of licensing “same product, different packaging, everybody gets screwed”. With CPM licensing, a user of content (let’s say a photography, video, or audio clips) pays a fee every time the content is viewed/heard. What ends up happening is that the publisher pays more for the content, the content creator gets a smaller royalty for their work (as the CPM facilitator takes a hefty cut of the action) and the customer is “eternally billed” and tracked for their usage of the content. The truth is that Micro Stock is the future of content licensing. Micro Stock creates entirely new content from new artists, the content is nearly identical to the high end “professional” rights managed content, it gives customers a simple, easy to understand, general use commercial license with no additional billings, and it pays a nice, healthy royalty to it’s content creators. Micro Stock is powerful, it’s taken down an entire $6 billion public company and made it into a $2 billion company. Micro stock is on pace to double in terms of it’s popularity / growth / quantity of content licensed in this manner, over the next 5 years. Micro Stock is here to stay!
Lot’s of people are asking this question so it’s become important that we put it down in writing.? FY 2008 YTD has seen the decline of traditional media companies in terms of revenue growth, earnings growth (or declines), and gross margin percentages.? Traditional media companies include the Disney’s Time Warner’s, News Corp’s, Viacom’s, CBS Corps’, as well as companies like Barry Diller’s Interactive Corp (IAC), which at the present moment is being broken up into separate entities with the online business (as well as the others, including lending and ticket sales to name a few) spinning off into their own separate public entities.? In total, we read that there will be 3 entities created out of the present IAC.? On to the point of this post….This is a highly competitive space and over the long run, while revenues experience slow or no growth, CEO’s and CFO’s turn to drastic measures such as layoffs, restructurings, and costs-cutting considerations.? This (Costs Cutting Considerations) is where AudioMicro comes into the picture.? How can the media companies produce identical content with a reduction in production expenses?? There are many answers to this query; however, the one which AudioMicro answers is that by purchasing micro stock music and sound effects, one can reduce the stock music and sound effects budget by an estimated 50% minimum, and the reality is that the costs could even be reduced as much as 99%, demonstrating the power of micro stock / micro payment licensing to shrink existing rights managed and royalty free? music licensing markets.