1 Global Collections

A New Type of Collection Society for the Global Digital Streaming Market

Digital streaming is here to stay, and it’s growing faster than ever. It’s a topic we’ve recently addressed on the blog, highlighting the need for the majority of collection societies to adapt their digital tracking infrastructure. While these same localized collection societies will always play a role in upholding right owners’ data, it has become evident that a new type of society is needed to effectively tackle the expansive digital streaming market. For rights owner to truly get paid what they're actually due when they’re due, the traditional ways of tracking revenue streams need to be altered — need to be disrupted.  

This is exactly what Kobalt’s Founder & CEO, Willard Ahdritz predicted would happen back in 2000, and one of the key reasons he started Kobalt in the first place. As he foresaw, by 2014 the global digital service providers were growing like wildfire and more were jumping into the game: Spotify, Apple Music, Amazon, Google, Tidal, Netflix, etc. Once all of these services began operating on a “global” basis, it no longer made sense for PROs to collect on a “local” basis. And so the time was right for Kobalt to form AMRA, the world’s first global digital collection society. You may have noticed the coverage of AMRA’s big multi-territorial digital licensing deal with ole music publishing on MusicBusinessWorldWide, MusicAlly or our very own blog, but it may have left you wondering: well... what is AMRA?

In short, AMRA is the solution the music industry needs to efficiently handle the exponential expansion of digital streaming royalties. So, in today’s post we’re entering the thick of it and exploring exactly how AMRA differs from other collection societies, the services it provides, and how AMRA’s mission truly works to benefit the music industry, as a whole. 

1. How does AMRA differ from other collection societies?

A. Global scale structure

AMRA is the first digital collection society built to collect directly from the global DSPs. This meaning that AMRA doesn’t operate on a localized level like essentially all other collection societies. That’s because addressing a globalized market such as digital music streaming in a localized manner results in higher transactional costs, a longer lag time in payments (often up to 2-3 years), and simply leaves more room for error. All of which often results in a loss in payment to rights holders.

Below is how the localized approach of other digital collection societies operate:

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First, each local performing rights organization (PRO) gathers local data from numerous digital service providers (DSPs). Once all the data has been collected from all the different sources for that specific region, the individual regionalized PROs attempt to processes that information, and then distribute bits of that collected data to the varying right owners and publishers. Considering different PROs are on different collection cycles and their pulling/sending data to so many different parties — this process becomes one long, massive game of telephone. And we all know how twisted the original message gets in that game. Imagine if that was how your paycheck was being handled!

AMRA implores a much different tactic. It has direct digital licensing deals in place with all the major DSPs such as Spotify, Apple, YouTube, SoundCloud and many more. It tracks digital streaming royalties across the entire globe excluding the US. With AMRA there is only one line of communication between itself and the global digital service providers. This means no delays and no miscommunication.

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B. Advanced technological resources

Many local collection societies simply don’t have the proper technological resources necessary for processing the massive amount of data generated by the global music streaming platforms. The sheer volumes of data required to process can cripple the local PROs, causing inaccurate or sometimes completely missed payments.

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AMRA, however, arms itself with Kobalt’s ‘KORE’ technology – the most advanced rights management platform in the world. This allows AMRA to...

  • Efficiently collect, process and account for the billions of micro-transactions

  • Precisely translate metadata into the preferred format of thousands of revenue sources

  • Directly communicate with all major services

All of this works together to provide faster and more accurate royalty tracking for digital music streaming.

2. What services does AMRA offer?

AMRA provides services for both publishers and individual writers.

For Publishers: AMRA offers both multi-territorial digital licensing and administration services.

For Writers: AMRA offers its writers performance share royalty collection throughout the global society network.  

3. How does AMRA benefit the music industry as a whole?

AMRA’s mission is to offer all right owners something we hold very dear here at Kobalt — total transparency. AMRA prides itself on setting a new standard as the most transparent and efficient digital musical rights society. The first step to making that a reality for the entire music industry is to lead by example. AMRA does so by offering its clients access to a Kobalt-powered portal which clearly lays out all their data, allowing them to keep track of all their processed royalty streams in real time

Global structure. Advanced technology. Total Transparency. This is the recipe for successfully managing the royalties in the digital streaming marketplace. A collection society such as AMRA comes as a godsend to many artists and songwriters who have been stuck in an industry which for many years has frankly kept them in the dark. With AMRA on the digital royalties front, right holders no longer have to question when or if their hard earned revenue is being paid to them.

For more information on AMRA be sure to check out their website: http://www.amra-music.com

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