Netflix Engagement Report 2023: Boosting Music Visibility and Performance Royalties for African Composers through Viewership
July 11, 2024
Netflix Engagement Report 2023: Boosting Music Visibility and Performance Royalties for African Composers through Viewership
The Netflix Engagement Report, released in May 2024, captures Netflix viewership data from July to December 2023. It provides insights into audience experiences with long-standing movies on the platform and new arrivals.
In Nollywood, there has been a noticeable increase in Netflix’s original and licensed content over the past three years. This trend has led to greater visibility for these titles and the music featured within them, ultimately resulting in higher Music Public Performance Royalties over time from this music exploitation source.
According to the report, the most-watched Nollywood titles include:
These figures highlight the growing popularity and impact of Nollywood content on Netflix.
What Are Music Public Performance Royalties?
Music Public performance royalties are income generated from granting the right to play or perform a song publicly. This income source differs from the buyout or commission fee paid for original or licensed music. The digital revolution has expanded the scope of what constitutes a “public” space to include online public spaces, encompassing digital service providers and, most notably, on-demand video services.
The UK Performing Rights Society (PRS), one of the organizations responsible for collecting royalties when music is streamed, downloaded, broadcast, performed, and played in public, reported in its December 2023 report that royalties from on-demand video services (GEOL), including Netflix, Amazon Prime, and Disney Plus, have increased by 30%.
While on-demand video services may not explicitly confirm that royalties per program are based on individual title performance by the number of views, it is possible that the calcuation of royalties distribution per program relies on a concept called Licensee Weight. This factor, used in broadcast surveys, accounts for the license fee paid by a broadcasting platform and the number of hours included in the survey.
For music royalties generated from a surveyed medium like on-demand video platforms, the “use weight” is also considered. According to the US Performing Rights Society, ASCAP, the use weight is the value attached to each type of performance (e.g., theme, background, visual, promotional) and theme (e.g., bumper, closing theme, main title, end title theme).
Moreover, there’s the “follow the dollar” aspect, where royalties from an on-demand video service are distributed according to the specific title performances. This differs from the general royalties distribution model, where royalties are evenly divided across all titles, rather than being allocated proportionally based on the number of views for each title.
ASCAP announced that starting with the December 2021 publisher and January 2022 writer distributions, the music featured in the most streamed series, movies, and non-sports specials on certain OTT audiovisual services will earn additional credits as AVP (Audiovisual Premium) payments. This indicates that the success of the film IP in terms of viewership can also lead to an increase to the music public performance royalties to be earned by composers of both commercial music, original music and score.
The previous paragraphs demonstrate that titles performing well on on-demand video platforms earn public performance royalties. However, there is a significant gap in the Nigerian music industry, with many composers and songwriters not affiliated with a Public Performance Society or a music publisher to collect royalties on their behalf. Historically, local laws did not clearly provide for public performance royalties, but one of the major highlights of the 2022 Nigerian Copyright Law is the clear provision for this. On the other hand, broadcasters, including HBO, Showmax, Netflix, and Prime Video, use cue sheet platforms to generate music rights reports, essentially invoices for the use of music in a show. These platforms include Cuetrak, Rapid Cue, and Recue.
The next steps involve raising awareness among composers about the importance of registering with a Performance Royalties Organization. This registration ensures that they can collect the royalties they are entitled to for the public performance of their music.
Simultaneously, production studios need to prioritize the submission of cue sheets with accurate data. Cue sheets are essential documents that detail the music used in production, and their accuracy is crucial for the correct allocation of royalties. By submitting detailed and precise cue sheets, production studios can ensure that composers and songwriters receive the appropriate compensation for their work. For Further Clarity Broadcast Platforms (Not Production Studios) are responsible for music public performance royalty payout.
Together, these steps will help bridge the gap in the Nigerian music industry, ensuring that all creators are fairly compensated for their contributions.
