Key players from the world of neighbouring rights have made their educated predictions on where the booming market is heading next.
According to the IFPI’s most recent study, the sector’s revenues reached a record $2.7 billion in 2023 – a year-on-year increase of 9.5%.
The NR business is the subject of a special report in the April edition of Music Week, which examines the current state of play.
In terms of significant developments, Downtown Neighbouring Rights SVP Dean Francis said that more territories were acknowledging that aspects of DSP consumption were similar to broadcast – and should therefore be distributed as NR income.
"The sector is also seeing new markets establishing collection societies to better manage neighbouring rights," he told Music Week.
Kate Reilly, chief membership & people officer at PPL, said that international collections offered the biggest opportunities for growth for the market.
"We expect growth to come from increasing the number of members using us for international collections and developing the size and performance of the global recorded music rights market," said Reilly. "In recent years we have seen new markets recognise neighbouring rights including China, India, Singapore and the Philippines.
"We also expect to see new opportunities in the Middle East, and we will continue to advocate for and advise countries on how to best establish public performance rights in countries around the world."
Some territories still have a way to go with market penetration and could join up more with author societies on licensing activity
Sam Heerey
Peermusic CEO Mary Megan Peer noted that developing NR markets had been a discussion point for some time, but the infrastructure to enable collections was not where it needed to be.
"Gradually that’s changing and we’re seeing significant, consistent income from some of these territories now," she said. "South America was a region where Peermusic’s longstanding local presence offered us a way in and that’s really bearing fruit now.
"Asia is another region where the NR market is developing at a rapid pace, and we’re fully invested in seeing the potential of China, India, and other Asian markets come to fruition in the years ahead.”
Roisin Brophy, neighbouring rights manager for Round Hill's NR department Sound Hill, said that new territories were consistently recognising and enforcing neighbouring rights, and establishing national CMOs to provide the collection and distribution infrastructure.
"As the market matures, CMOs are improving their distribution systems and collaborations with agencies and fellow CMOs to increase pay through rates and ensure timely distributions," she said.
Double Six Rights Management's head of neighbouring rights Sam Heerey projected continued growth in public performance collections.
"Some territories still have a way to go with market penetration and could join up more with author societies on licensing activity," he advised. "2023 was the first full year unaffected by the pandemic and IFPI reported 47 markets where public performance revenues surpassed 2019 pre-pandemic levels, so it’s looking very positive overall but there could be more parity with author society collections where many perform well above the NR societies in this area."
Moreover, Heerey said he expected to see increased collaboration between societies.
"There are more societies around the world joining forces on systems and sharing resources which helps with saving costs in the long term," said Heerey.
The music industry has always been about adapting to change
Susan Cotchin
Domenico Scialo, head of rights management at Y Royalties, which specialises in royalties data, rights management, audit and transaction services, has tipped big data to transform the NR landscape.
“As capabilities grow, more and more we can compare PROs to CMOs licence agreements with radio stations,” he said. “The ability to directly review who has under collected, and even who has the better licence on a station-by-station level, is approaching. Those who have the ability to compare recordings to publishing on a broadcast, will find the biggest opportunities.”
Susan Cotchin, MD of Good Neighbour, the neighbouring rights arm of Australian music behemoth the Mushroom Group added that she would be keeping a close eye on how copyright will evolve to address AI's role in performances.
"The music industry has always been about adapting to change – whether it was the rise of vinyl over 75 years ago, or the way cassettes came along and competed with vinyl sales just two decades later," she said. "Change is part of the DNA of this industry, and I’ve always been inspired by how resourceful and resilient it is.
"I’ve always believed that challenges are opportunities in disguise. Sure, legislation can take its time, but the push to find creative solutions is what drives us forward. It’s in those moments of change that the industry truly thrives."
Hanna Grzeszczyk, co-founder and director of Media IP Rights, said that for the music industry to thrive, legislation must evolve alongside technological advancements.
"Whilst AI regulation is now a key focus, streaming rights remain insufficiently addressed in many territories," said Grzeszczyk. "A fair and balanced streaming ecosystem is essential to ensure creativity flourishes, rather than being undermined by ongoing disputes between artists and big companies."
Meanwhile, SoundAct director Sam Comley said he hoped that performers and indie labels would start to pay more attention to neighbouring rights.
"It is important that they ensure their revenue is being collected in the most efficient and effective way," he said. "Neighbouring rights revenues are increasing. Artists and labels should have high expectations as to how collections are undertaken, what costs are being deducted, how fast they are getting paid after a society has distributed, as well as having visibility of the work being undertaken on their behalf. All to give them the reassurance that nothing is being left on the table.
"The amount an artist/label earns from neighbouring rights can be heavily impacted by the amount of work put in by the party they have entrusted with the job of collecting. Whilst it’s exciting to see new markets open up, it’s also important to ensure that the larger, established markets are being tended to properly."
Subscribers can read the full Music Week neighbouring rights special report here.
