International Journal of Social Science Research (IJSSR) eISSN: 2710-6276 | Vol. 5 No. 1 [March 2023]
Journal website: http://myjms.mohe.gov.my/index.php/ijssr
DIGITAL STREAMING PLATFORM DISTRIBUTION IN MALAYSIA
Qisthina Mustaffa Kamal1 and Tazul Izan Tajuddin2*
1 2 College of Creative Arts, Universiti Teknologi MARA, Shah Alam, MALAYSIA
*Corresponding author: [email protected]
Article Information:
Article history:
Received date : 28 January 2023 Revised date : 18 February 2023 Accepted date : 26 February 2023 Published date : 7 March 2023
To cite this document:
Mustaffa Kamal, Q., & Tajuddin, T. I., (2023). DIGITAL STREAMING PLATFORM DISTRIBUTION IN MALAYSIA. International Journal of Social Science Research, 5(1), 75-80.
Abstract: The current digital era demand songs to be easily accessible to all listener. That is why there are digital streaming platforms such as Spotify, YouTube Music, Deezer and so on, these platforms give the opportunities for the listener to be able to access the songs that have been produced, performed or recorded.
It is the master recording owner's responsibility to make sure their listener is able to listen to their song by distributing their songs to these digital platforms. But it was a question to some master recording owners on how to distribute their music to these platforms. Thus, that is when the record label and music distributor come in.
This music distributor will assist the sound recording owner to distribute and promote their song to the digital streaming platform with a certain agreement and percentage been charge from the income of the sales and royalties, this percentage and agreement are differed according to different music distributors. There are a few copyright steps that need to be done before a sound recording owner submits to the music distributor. This research will show the process of preparing a copyright for your master recording, submitting the master recording to the music distributor, and submitting the master recording for copyright protection to the appropriate licensing body.
Keywords: music distribution, digital music platform, music distributor, copyright, royalty.
1. Introduction
After a great session in the studio, and the hard work of mixing and mastering, finally a sound recording is produced. The next step after finishing your song might wander in a few people's minds, what is the next step to let your song accessible to the listener out there? The current digital era is making everything easier to access digitally. Thus, the digital streaming platform is offering a platform for people to upload their songs to be accessible to listeners with a certain agreement between the master recording owner and their music distributor. Some distributors offered more stores than others, while some also offered a better deal on the percentage of the services charge. Among the common music stores are Spotify, Deezer, YouTube Music, iTunes and Apple Music, which almost all music distributors in Malaysia do offer. Some of the more uprising stores will be Tidal, which is a platform where a sound recording owner can submit a higher and better qualities master recording (sound recording). Economic welfare and status on the condition of music creation, distribution, and usage, in which the institutional framework for music distribution and use, such as music-related intellectual property, should be included in articles on musicians' revenue sources and earnings (Tschmuck et al., 2012).
2. Literature Review
Music Copyright for Master Recording
The master recording copyright belongs to the person who spends on the production of the master recording, which can be a record label or individuals. Do not confuse the master recording owner with the musical work owner. A musical work owner is a person who composed and wrote the song while a master recording owner is an entity that gives the fund for the production of the song into a master recording, it could be a music producer who self- funds for the production of the music or a record label that hired a music producer to produce the song. The rights of the master recording owner only on the finished products, which is the master recording and do not entirely include the musical work as it still belongs to the songwriter's intellectual property (Mustapha et al., 2021).
Quoting Kimmy Khir (2021), in her talk on the project “Langkah Baru”, whenever a master recording is completed a “born certification” called International Standard Recording Code (ISRC) needs to be generated on that particular master recording. ISRC is used to identify sound recordings and music video recordings so that they may be referred to individually and unambiguously. Most online services require an ISRC to uniquely identify a recording and assist in the management of any data associated with it (Langkah Baru, 2021).
It is highly recommended that you register for a company through Suruhanjaya Syarikat Malaysia (SSM) first before applying to obtain the ISRC "head code" technically termed as Prefix Code under your company name. The reason for this is that the Prefix Code is designated to the registered name on the application of ISRC, thus, if it was under an individual name, there might be a complication when the person named passed away and the rights cannot be transferred to another's name. Thus, it is advised to open up a company and apply the ISRC under the company’s name in which the company share can be transferred to another person.
Surely this procedure is only a recommendation and not a compulsory one.
ISRC Application Procedure and Generating Code Guideline
This ISRC can be applied through the Recording Industry Association of Malaysia (RIM). RIM is a National Group of the International Federation of the Phonographic Industry (IFPI) that represents approximately 300 record labels in Malaysia, according to RIM's official Facebook page. All applications for ISRC Prefix Codes shall be addressed to the ISRC Agency relevant to the territory in which for Malaysia, it is RIM. According to IFPI, the ISRC Agency's tasks would include informing all producers in their respective countries about the ISRC system, and its benefits, and encouraging its usage. To avoid discrepancies, the ISRC Agency must also offer guidance for the actual use of the system and address operational issues in liaison with the International Registration Authority (IFPI).
This procedure is specifically for application in the territory of Malaysia. Applicants need to fill in the form given by RIM to apply for the Prefix Codes which are allocated to applicants by ISRC Agencies on a strictly sequential basis. The address and contact information for RIM was made public on the IFPI official website (ifpi.org). The cost of the application for the ISRC is only fifty Ringgit Malaysia per application (Aida, 2021). There is also a list of ISRC managers on the IFPI website, who may be contacted by persons who choose not to generate and administer their own ISRC. On a side note, applying for a Prefix Code and assigning ISRCs to your recordings does not need membership in the IFPI or any other music industry body.
The ISRC is assigned just once and remains the same for the life of the recording, which is one of the most crucial aspects to know for all master recording owners out there. Even if the master recording or music video recording is sold, the new owner of the rights cannot modify the ISRC (ifpi.org).
The ISRC consists of three components: The Prefix Code, the Year of Reference, and the Designation Code. Prefix Code comprises 2 letters followed by 3 alphanumeric characters for example AA6Q7. The year of reference, which consists of the final two digits of the year, specifies the year in which the ISRC is allocated to the recording. For instance, 19 in 2019 and 22 in 2022. The Designation Code is a five-digit number issued by the registrant, such as '00097.' To explain more regarding these three elements, it is stated in the ISRC handbook provided by IFPI.
Music Distributor in Malaysia One Stop Music (Local)
One Stop Music (OSM) Berhad is a record label conglomerate that is also regarded as Malaysia's fourth-largest music company. Founded in 2005 with the support of RIM and currently represent over 350 recording companies and business, as well as music publishing companies primarily from Malaysia, Singapore, and other territories of Asia Pacific. OSM specialised in distributing its members' music content to various leading worldwide digital platforms for monetisation, including Spotify, Apple Music, YouTube Music, Joox, Facebook, Instagram, TikTok, Smule, WeSing, Deezer, KKBox, and others. OSM is also a Google YouTube Certified company with MCN accreditation (multi-channel network). OSM works to ensure that its members have effective access to new and growing revenue streams, as well as that their rights are respected and protected. In addition, managing copyright licencing on behalf of music publishers for mechanical rights, reproduction rights, synchronisation rights, and music printing rights, as well as aiding in the promotion and protection of music publishers' work. As a Company Limited by Guarantee (CLBG) Berhad company, OSM operates as a non-
profit entity, charging a nominal fee of as low as 8% to the master recording owner as a service fee, with the remaining revenue returned to the master recording owner. OSM's address and contact information may be found on their official website (onestopmusic.com.my).
Believe Music (International)
Believe Music originated in France and currently has headquarters around the world. Having the mission to best serve recording artists and labels at each stage of their development in the digital world by providing digital music experts advice, distributing and promoting artists and labels around the world. Believe Label & Artist Solutions has been developing and expanding distribution and marketing solutions for independent labels and artists in 50 areas all over the world for more than 15 years while also offering technology and analytics (believe.com).
Other Music Distributor
Record Label surely can be our music distributor, especially if we are signed to one. There are also other online music distributors as an option for distributing your music to digital streaming platforms. Among the online music distributor that can be found and registered digitally are CD Baby, Distrokid, Tunecore, Amuse and many more.
Submission to Music Distributor Procedure
Each music distributor has a different agreement and procedure for managing their master recording owner’s products. The similarity will be the master recording owner should make an agreement with the music distributor first. Upon the agreement, the standard procedure will be the music distributor will ask for the information of the master recording owner companies, the information on the products such as the ISRC and UPC, Audio (WAV) of the master recording, Cover Art of the single master recording or album, and the lyric of the master recording. Some music distributors might even ask for the synopsis of the song and promotion information regarding the release of the master recording as a guide for them to help promote your release.
The Licensing Body for Master Recording
The next step in protecting the copyright of your master recording is to submit it to the Public Performance Malaysia (PPM) Berhad, a licencing organisation in charge of collecting and dispersing music royalties from master recordings (Halim, 2020). PPM is a not-for-profit Collective Management Organization (CMO) with limited liability that represents all qualified Malaysian record labels as well as foreign record labels that have granted PPM members exclusive permission to manage their rights in Malaysia. As a collective licencing body or CMO, PPM is in charge of issuing licences on behalf of its members and obtaining licence payments and royalties from businesses in Malaysia using sounds, music videos, and/or karaoke recordings (collectively referred to as "Music Recordings") for the following copyright-protected activities:
a. The performance, showing or playing to the public;
b. The communications to the public;
c. The copying and reproduction for the purpose of exercising the rights in item (a) and (b) above; and
d. The commercial rental to the public
Under the Copyright Act of 1987, anybody who copies, makes accessible, and/or uses any copyrighted works without the approval or authority of the copyright owner commits an offence and an act of infringement (Khalid, et al, 2020). A fine of not less than RM10,000.00 and not more than RM50,000.00, or imprisonment for a term not exceeding 5 years, or both, may be imposed upon conviction (ppm.my).
Submission to PPM Procedure
To submit a repertoire to PPM, the master recording owner needs to be a member of PPM. If the master recording owner did not intend to become a member themselves, they can park their repertoire under a recording label which already a member of PPM, this list of owners and/or exclusive licensees of Music recording who are authorizing members of PPM can be found at PPM official website (ppm.my).
By becoming a member of PPM, the repertoire owner or exclusive licensee has the access to PPM Music Recording Database (MRD), which is the platform for you to manage your membership details and register your recordings to PPM. Your approved sound recording in MRD recognises as proof of ownership or exclusively owned by you in the recording industry.
It is informed on the PPM website that the royalties are calculated at the track level, based on information about what music is played by licensees. Thus, this is how PPM keeps track of the income for each master recording being played or paid for.
2.1 Problem Statement
The demand from the current digital era listener indirectly encourages artist and master recording owner to make their songs assessable to the listener. But it is a bit hard for the master recording owner to make it possible since there is no specific guide to educate the master recording owner regarding the process of submitting their master recording to the digital streaming platform. On top of that, the copyright matter and royalties of the master recording is not widely educated yet in the Malaysia music industry. The lack of knowledge regarding this matter can lead to master recording owner not been able to release their song to the digital streaming platform and holding the rights to the copyright of their master recording.
3. Conclusion
The procedure of distributing a master recording and registering for its copyright of it seems to be a long and complicated process. Especially if there is no proper guide given to the master recording owner who is still new in the music industry. That is why this article is giving guidance for the process of preparing a copyright for a master recording, in which the master recording owners should have their own ISRC Prefix Code to be embedded in each of their master recordings. Submitting the master recording to the music distributor starting by choosing the preferred music distributor, getting an agreement with the music distributor, and submitting the requested item and information for each master recording release. Lastly, submitting the master recording for copyright protection to the appropriate licensing body which is PPM. The income from sales and royalties of the master recording can be gained through the music distributor and licensing body. As a side benefit, it is strongly advised that the owner of the master recording stay informed about their master recording report with their respective music distributor and PPM. Even if there is no income at the moment, it is safer if the master recording owner is able to check their reports.
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