APEX ASIA: Music Licensing Discussion Continues

Music licensing is one of the hottest topics in IFE, and the focus on this subject continued at APEX Asia with a presentation by Lauri Rechardt, director of licensing for IFPI, the non-profit organization representing over 1,300 record companies around the world.  While IFPI does not directly license music, they work with both record labels and Music Licensing Companies (MLC’s) to develop strategies for the commercialization of music.

Rechardt shared a quick history of record company revenues in the past years, noting that revenue generated by physical record sales has shown a steady decline, with that loss ameliorated somewhat by growth in the digital consumption of music. As such, IFPI companies are more focused on making sure that music is “adequately monetized,” particularly through the proper licensing of their catalogs.

With regards to IFE, Rechardt stressed that the most effective way for airlines or their content service providers to properly license music from labels will be to work with those labels directly.

The labels are best placed to provide global licenses for a wide variety of uses (linear, audio-on-demand, etc.)  Rechardt acknowledged that many content service providers currently work through local MLC’s, but noted that the ability of MLC’s to offer rights beyond linear usage or their own territory is very limited.

In keeping with recent sessions on music licensing, there were numerous questions from the audience.  More than one attendee questioned the practicality of negotiating with dozens of labels.  Rechardt admitted this would be difficult, but suggested that content providers be proactive and approach labels with proposals.  He noted IFPI wants to see music onboard, albeit done properly.