OneMusic uptake ‘far more positive than anticipated’ [exclusive]
By all accounts, OneMusic Australia is off to a rocking start.
“Three months in, I am happy to say all bets and forecasts were completely off the mark – in a good way,” head of media licensing Richard Mallett tells TMN.
“Two-thirds of OneMusic’s relicensing business is coming through the portal. The phone and live chat support are still there for queries, but the customer has spoken.
“Between APRA AMCOS and PPCA, there are over 150,000 business locations licensed. That means more than one ‘licence switch’ a minute for the next 365 days.”
On July 1 OneMusic (finally) lauched its industry-first music licensing portal that helps small businesses to ditch their APRA AMCOS and PPCA paper licences in lieu of a new web-based system.
It was the result of over two year’s hard work from many people across the two organisations, in consultation with a range of peak body representatives and industry groups. A monumental undertaking that included technology, licensing and lobbying smarts.
APRA AMCOS chief Dean Ormston told TMN that 50% of licensees contacted to join the new system had made the switch, but the lead-up wasn’t without its complications.
“What we were trying to do was reduce all the red tape and the administration,” says Ormston.
“What it has meant is that we probably had to develop a lot more nuanced arrangement than we initially wanted to, to ensure that there’s no bill shock moving from the old paradigm to the new paradigm.
“So that’s been a really complicated process and it probably has a way to go.
Ormston also said that about a third of the revenue generated since July was derived from hospitality licences.
“Hospitality has been a lot stronger than we anticipated.
“So that means is people are finding their way to the website. They’re navigating through, it’s making sense and they’re paying for it in real-time. So from our business point of view, the red tape reduction is enormous.”
Consultation with other sectors continues, but by all accounts, OneMusic is moving at speed.
Of the 3,000 licence agreements put in place since launch, OneMusic says 500 are brand new licensees. Which ultimately will mean more revenue for rightsholders.
“We’re ecstatic with those results, far more positive than anticipated,” said Ormston.
He expects the 150,000 licensees on the old paper system to have migrated within 18 months. “There’s definitely a material bottom-line impact.”
OneMusic partner PPCA, who joined forces with APRA AMCOS six years ago on the initiative, also expect a cultural shift will follow.
“That increase in music usage means a bigger market and our rightsholders will benefit from more revenue.
“We also hope that everyone – the community at large – will benefit from increased use of incredible music all around us. We know how important that can be not only to businesses, but also to our culture.
“It has been a lot of work, and there is a lot more work to do. Two months in, it’s clear we are on the right path, and I’m confident we have the right team to continue the ensure OneMusic is an ongoing success.