DJ to Rightsholder breaking down royalties in underground music

The last two days at Amsterdam Dance Event were packed with insightful sessions that demystified some of the most complex aspects of being a DJ and producer in today’s electronic music industry. From Fiona Ham breaking down the intricacies of royalty collection and the importance of understanding the difference between a DJ, producer, and rightsholder in the Association For Electronic Music Presents: Diversifying Income Streams and Maximising Revenue panel, to Jeroen Groenendijk guiding artists through the nitty-gritty of Rekordbox ( AlphaTheta Corporation ) management in the Clean up your catalogue session—this year’s discussions were focused on giving artists actionable steps to streamline their music workflow.

Whether you're trying to figure out how to register your music with Performing Rights Organisations (PROs) or cleaning up your music library for smoother DJ sets, these sessions provided essential tools for success in 2024. Let’s dive into the key takeaways!

#ADE2024 #ElectronicMusic #MusicIndustry #DJs #Producers #Royalties #MusicRights #Metadata #MusicTechnology

AFEM Presents: Diversifying income streams and maximising revenue as a DJ in 2024

In the underground electronic music scene, where much of the music is consumed in venues, DJs often misunderstand the dynamics of royalty collection. As Fiona Ham pointed out during the AFEM session, the term "DJ" refers solely to the profession, not the rightsholder of the music being played. Suppose a DJ is also a producer and creator. In that case, they must realize that, once the music is mixed, mastered, and finished, the underlying composition (which is invisible) must be registered with Performing Rights Organisations (PROs) to ensure royalties are collected.

The same complexity applies to the term Producer in electronic music. An important distinction between a Producer and an Initial Producer (or First Maker) exists. The Initial Producer is the person or entity that financed the fixation of the sound to support, meaning they hold the rightsholder status. If the producer is also the Initial Producer, they must notify a Collective Management Organisation (CMO) of the music they made to ensure proper royalty collection. Additionally, royalties are distributed to artists, non-featured artists, and musicians. Fiona acknowledged that it may feel strange for an electronic music producer, who often works digitally, to identify as a musician, but that’s how royalty systems categorize and pay creators in the industry. Understanding these roles and how they affect royalty distribution is key to maximizing revenue as a DJ/Producer.

#MusicRoyalties #MusicRevenue #DJLife #MusicRights #PROs #Rightsholders #MusicBusiness #IncomeStreams #MusicLaw #StreamingRevenue

Clean up our Catalogue: AlphaTheta/Pioneer DJ’s Rekordbox Tips & Tricks Session with Jeroen Groenendijk

Unlike other panels that may focus on broader trends and artistic discussions, this session dives deep into the technical and gear-oriented side of DJing. The focus here is on actionable steps to clean up and organize your music library like a pro, using Pioneer DJ’s Rekordbox and industry-standard tools. Leading the charge was none other than Jeroen Groenendijk, a passionate and incredible folder master, who guided the audience through two hours of expert-level knowledge with unparalleled enthusiasm.

Highlights from the session:

• AIFF and WAV reign supreme: For the best audio quality, stick to these formats—they’re the gold standard for professional DJs.
• FLAC’s secret weapon – ID3 metalayer: Don’t sleep on FLAC files! Use the ID3 metalayer for better tagging and metadata management.
• WAV FTW: WAV files get extra love for maintaining pristine sound quality.
• Spek.cc: Analyze your audio files like a boss with this go-to tool.
• Color code everywhere: Use Rekordbox’s color-coded system to make your tracks pop and stay organized.
• The MP3 algorithm’s dirty little secret: MP3s cut out high frequencies, assuming the human ear won’t notice—pro tip: it does!
• Logarithmic scale & 320 kbps: Remember, 320 is just a container for MP3 files—not the Holy Grail of sound quality.
• ID3 tags in MP3s: Only the authors of tracks truly matter when tagging—keep it clean and clear.
• Apple music guidelines: Make sure your album art meets Apple’s size requirements to avoid headaches later.
• Resize your album art: Tools like TagScanner get your cover art in check.
• Naming file convention tool: Maintain consistency across your library by following proper naming conventions.
• Folders two levels deep: Keep your folders organized but not overly complicated—two levels deep is the sweet spot.
• Playlists are for playing, not organizing: A playlist is like the content of a record case—it’s meant for DJing, not tidying up your music library.
• FreeFilesSync: Keep your library backed up and synced across devices effortlessly with this free tool.
• TagScanner: An essential for tagging and organizing your audio files quickly and effectively.

With Jeroen’s guidance, you’ll be cleaning up your catalogue like a pro—no more messy playlists or unorganized tracks! Time to take control of your collection and keep the beats flowing smoothly.

#Rekordbox #DJTools #MusicLibrary #MusicOrganization #MusicMetadata #DigitalDJing #PioneerDJ #DJTips #AudioQuality #MusicTech #DJLife #FolderMaster

Recap: Fraud in music streaming

Streaming fraud poses a major threat to the music industry, costing billions and undermining digital distribution integrity. At ADE, a panel of experts discussed this issue and potential solutions. The panel featured Andrew Batey (Beatdapp) Diederik d'Engelbronner (Downtown Music), and Andy Daniell (Defected Records), representing fraud detection, major music companies, and electronic music labels respectively. Their insights provide a comprehensive overview of current streaming fraud challenges and industry countermeasures.

Scale and impact of streaming fraud

Fraudulent streams are broadly categorized into two types: the manipulation of organic streams and copyright-related infringements, such as unauthorized bootlegs or tracks that have been sped up or slowed down without permission. The scale of this problem is staggering, with criminal organizations reportedly siphoning off an estimated 2-3 billion dollars from the music industry through increasingly sophisticated fraud techniques.

The nature of streaming fraud has evolved significantly in recent years, moving beyond simple bot usage. Today's fraudsters employ more complex methods, often utilizing real user accounts obtained illicitly from the dark web. These accounts are rotated between different releases, typically streaming about 10 different tracks each, in an attempt to fly under the radar of fraud detection systems and protocols. This sophistication makes the fraud harder to detect and more damaging to the industry.

Examples of sophisticated streaming fraud

Several concrete examples illustrate the ingenuity and scale of these fraudulent operations. In one notable case, 400 devices were employed to artificially manipulate streams. Shockingly, these devices were traced back to the U.S. Department of Corrections, which had been hacked, highlighting the vulnerability of even government systems to such attacks. Another alarming instance involved fraudsters who managed to change only the payment recipients for streams. They used real artist profiles, complete with real content, but diverted payments to themselves instead of the rightful artists. When investigated, it was discovered that this scheme had been replicated across more than 10,000 other artists, demonstrating the potential for widespread financial damage.

Shared responsibility in combating streaming fraud

The responsibility for combating streaming fraud is not isolated to a single entity but is shared among various stakeholders in the music ecosystem, including rights holders, distributors, and DSPs. Companies at the forefront of fraud detection, such as Beatdapp, have established specific criteria for identifying fraudulent streams. These include flags such as having 95% fake streams or streams originating from over 100 different devices just to name a few. However, the challenge lies in striking a balance – ensuring that legitimate innovative marketing strategies are not inadvertently penalized while effectively catching fraudulent activity.

The industry is taking multi-faceted measures to prevent and combat fraud. These efforts include implementing robust Know Your Customer (KYC) protocols to verify the identity of users and rights holders, conducting thorough quality checks before content distribution to catch potential infringements early, and employing sophisticated analytics on real-time data once content is available on platforms. These measures aim to create a more secure streaming ecosystem that protects both artists and the integrity of the platforms.

From grey area to criminal offence?

There's also an evolving legal dimension to the issue of streaming fraud. Currently, there exists a grey area from a legal perspective, as artificially manipulating streams is not explicitly classified as a criminal offence in many (or any?) jurisdictions. However, this may be changing. The Michael Smith case in North Carolina, where a musician has been charged with music streaming fraud aided by artificial intelligence, is being closely watched by the industry. This case could potentially set a precedent for the prosecution of artificial streaming in the coming years, potentially leading to more stringent legal consequences for fraudsters as well as companies enabling this.

“I woke up and had 250,000 streams one morning”

For rights holders, navigating this complex landscape requires vigilance and proactive measures. Industry experts on the panel advise rights holders to actively engage with their distributors, asking pointed questions about how their content is being protected against fraud. Additionally, it's recommended to fingerprint content before uploading their content on UGC platforms for promotion. This can be done either through a distributor with proprietary fingerprinting technology or by employing a third-party service. Such measures can help artists and labels maintain control over their content and ensure they receive proper attribution and compensation for their work. If something looks unusual, rights holders should reach out to their distributors immediately to gather evidence.

Would other streaming payout models help?

When looking at different streaming payout models and their vulnerability to fraud, both user-centric models (where royalties are distributed based on individual user listening habits) and artist-centric models (which aim to reward artists more directly) are noted as potentially vulnerable to fraudsters. In those instances, it may even be easier for fraudsters to exploit. This observation underscores that the problem is not with the payout models but with the fraud itself. Even as the industry develops new, ostensibly fairer payout models, fraudsters are quick to find ways to exploit these systems.

Preserving trust and integrity

Fraud in music streaming represents a significant and evolving challenge for the music industry. It requires constant vigilance, technological innovation, and collaboration across all sectors of the industry to combat effectively. As streaming continues to dominate music consumption, ensuring the integrity of these platforms is crucial not only for the financial health of the industry but also for maintaining trust with artists and consumers alike. The ongoing efforts to detect, prevent, and prosecute streaming fraud will likely play a crucial role in shaping the future landscape of digital music distribution.

Key takeaways:

• Streaming fraud has evolved beyond simple bots, now using sophisticated methods involving real user accounts obtained illicitly.
• The music industry loses an estimated 2-3 billion dollars annually to streaming fraud, perpetrated by highly efficient criminal organizations.
• Combating streaming fraud is a shared responsibility among rights holders, distributors, and DSPs, requiring collaboration and vigilance.
• Rights holders should actively engage with distributors about content protection and consider fingerprinting their content before promotion on UGC platforms.

Now that you've armed yourself with all the essential insights from #ADE24, it's time to unwind and network. See you at the BumaStemra mixer.

#MusicTeamApp #RegisterYourMusic #MusicRights #MusicMetadata #MusicStreamingFraud #MusicLibrary