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The Main Law Regulations Administering Music On Hold
The biggest advantage of telephone on hold music is that it lowers the call abandonment rate. This is important because, according to a recent CNN survey, regarding 35% of phone callers who drop their calls do not call back. Music on hold prevents boredom and the voice-overs such as 'your call is very important to us' and 'someone will be with you shortly' keep phone callers on the calls. Market research by Cellular Marketing Magazine shows that 90% of callers prefer on hold messages to silence and a survey by Telemarketing Magazine implies that 25% to 40% of callers buy goods or services based on the information they heard while holding. This implies including a marketing of your company and its products/services and including a call to action will lead to greater ROI (return on investment).
There are several sources of music for hold. These include off-the-shelf commercial CDs, custom-designed MOH (with or without voice-overs), stock MOH CDs (with or without voice-overs), online on hold, and radio. All the music can be played by a music on hold player. It is therefore, vital that you purchase a music on hold player that accommodates all the music sources. It is crucial that you know the laws and regulations governing these music sources to be able to pick the most appropriate source.
The only real sources of music for hold which you can play with no fear of legal action are custom-designed MOH since you get to select music that is not copyrighted and stock MOH CDs since these CDs are made for MOH and they therefore feature music that has been licensed or that is not protected by the laws of copyright. You have to pay if the telephone on hold music is coming from the radio since even radio stations have to pay licenses themselves and they do not have re-broadcasting rights. With commercial CDs, only play the music if the users had gotten permission from the song's title copyright owner (if the song is not in the 'public domain') and from the song's mechanical copyright owner. There are options that enable your music on hold player to select, download, and play music that does not infringe on copyright laws when playing online on hold music. It is therefore, essential that you look at the features of your music on hold player before making a purchase.
You can get classical telephone on hold music as most classical music does not require licenses and you could use royalty free music which is open to license online, or through your on-hold production company. If you want to get your music from radio, you could also get your music from subscription music sources like Muzak and the likes of Music Choice if you have cable TV service. Licenses can be obtained by BMI, AMS Music, and ASCAP, that are the U.S representatives for music copyright owners. These are also the enforcement agencies. The current fine for playing radio music on hold is $1,500 if you get an out of court settlement. Generally, copyright infringement fines can vary from $500 to $150,000.
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